IRS Casts Wide Net Full Of 88 Employees In Scandal, One Claiming DC In Charge

CNN had the stories here on Friday:

The Internal Revenue Service has told House GOP investigators they have identified 88 IRS employees who may have documents relevant to the congressional investigation into targeting of conservative groups, according to a congressional source familiar with the investigation.

And here on Sunday:

One Cincinnati IRS employee interviewed by the Oversight Committee rejects the White House assertion (that the Cincinnati office was responsible) and points to Washington as being responsible for targeting effort (from 5/30 interview):

Q In early 2010, was there a time when you became aware of applications that referenced Tea Party or other conservative groups?

A In March of 2010, I was made aware.

******

Q Okay. Now, was there a point around this time period when [your supervisor] asked you to do a search for similar applications?

A Yes.

Q To the best of your recollection, when was this request made?

A Sometime in early March of 2010.

******

Q Did [your supervisor] give you any indication of the need for the search, any more context?

A He told me that Washington, D.C., wanted some cases.

******

Q So as of April 2010, these 40 cases were held at that moment in your group; is that right?

A Some were.

Q How many were held there?

A Less than 40. Some went to Washington, D.C.

Q Okay. How many went to Washington, D.C.?

A I sent seven.

******

Q So you prepared seven hard copy versions of the applications to go to Washington, D.C.?

A Correct.

******

Q Did he give you any sort of indication as to why he requested you to do that?

[…]

A He said Washington, D.C. wanted seven. Because at one point I believe I heard they were thinking 10, but it came down to seven. I said okay, seven.

Q How did you decide which seven were sent?

A Just the first seven.

Q The first seven to come into the system?

A Yes.

*****

Think Of It As 501(c)(4) For Recreational Purposes, Minus The 501

IRS' Lois Lerner Speedily Approved Obama's Brother's Charity, Retroactively 3 Years

Story here:

The National Legal and Policy Center filed an official complaint with the IRS in May 2011 asking why the foundation was being allowed to solicit tax-deductible contributions when it had not even applied for an IRS determination. In a New York Post article dated May 8, 2011, an officer of the foundation admitted, “We haven’t been able to find someone with the expertise” to apply for tax-exempt status.

Nevertheless, a month later, the Barack H. Obama Foundation had flown through the grueling application process. Lerner granted the organization a 501(c) determination and even gave it a retroactive tax exemption dating back to December 2008.

The group’s available paperwork suggests an extremely hurried application and approval process. For example, the group’s 990 filings for 2008 and 2009 were submitted to the IRS on May 30, 2011, and its 2010 filing was submitted on May 23, 2011.

Lerner signed the group’s approval on June 26, 2011.

It is illegal to operate for longer than 27 months without an IRS determination and solicit tax-deductible contributions.

If You Can't Pronounce "Apoplectic", Raise Your Hand

How To Destroy The Bourgeoisie: Swell The Proletariat, One Latino At A Time

“If Latinos sit out the election instead of saying, ‘We’re going to punish our enemies and we’re gonna reward our friends who stand with us on issues that are important to us,’ if they don’t see that kind of upsurge in voting in this election, then I think it’s going to be harder and that’s why I think it’s so important that people focus on voting on November 2.”

-- President Obama, quoted here October 25, 2010

Obama Is Eliminating The Middle Class, But Do You Know Why?

Based on how thorough-going are Obama's attacks on the middle class, I'd say it's all intentional, something the professor would not dare say if he wants to keep his career, so I'll say it for him since I don't have a career to save.

Summarized from an op-ed by Peter Morici, University of Maryland, here:

His immigration policy swells the ranks of visa-holders in skill-short areas like engineering as well as the ranks of semi-skilled immigrant workers, frustrating the middle-class aspirations of the working poor born in this country.

His massive expansion of student loans permits universities to jack up tuition . . . Students are graduating encumbered by massive debt and too few marketable skills. Broke and unemployed, they are not marrying and starting families—that shrinks the middle class. 

Despite the availability of loans, skyrocketing tuition mandates ever greater family contributions to finance college. This puts higher education further out of reach for many working class families, and fewer low income children are pursuing post-secondary education than in the past—that shrinks the middle class too.

The President has jacked up taxes on families earning more than $250,000. Unfortunately, most businesses in America are either proprietorships or pass through corporations that pay those higher individual, as opposed to corporate, tax rates, raising the cost of investing and expanding businesses—that spells fewer jobs for the middle class and those that aspire to its ranks.

Unable to push through Congress limits on CO2 emissions, President Obama has used executive orders and the EPA to impose limits by fiat. Unfortunately, those raise manufacturing costs, China has no such limits, and all this encourages business to outsource in China—again fewer jobs for the middle class and aspiring middle class.

Free trade agreements that permit trading partners to undervalue their currencies, subsidize exports and artificially under price their products on U.S. store shelves, health care mandates that raise the price of insuring employees instead of controlling costs, unnecessarily cumbersome regulations to run factories, mindless limits on developing U.S. oil reserves, and exporting abundant natural gas to countries that shut out U.S. products with high tariffs all encourage outsourcing, not just in manufacturing but for many supporting services too—yet again, fewer jobs for middle class Americans.

----------------------------------------------------------------

“The lower middle-class,” in Marx’s words, “has no special class interests. Its liberation does not entail a break with the system of private property. Being unfitted for an independent part in the class struggle, it considers every decisive class struggle a blow at the community. The conditions of his own personal freedom, which do not entail a departure from the system of private property, are, in the eyes of the member of the lower middle-class, those under which the whole of society can be saved.”

And this is the very reason why the lower middle-class masses are the most dangerous enemies of the dictatorship of the proletariat. They represent a very strong section of society. Their special interests are absolutely incompatible with the economic disturbances which are the inevitable accompaniment of transitional periods.

The disturbance of credit cuts the ground from under their feet. They begin shouting for order, for the strengthening of credit, in such a way that every concession to them leads in effect to a complete restoration of the old order. ...

[Marx] wished to separate the Labour movement from all lower middle class elements, because the lower middle class attitude — attachment to the idea of private property, more or less open striving to uphold credit, terror of every fundamental social disturbance — is in practice the greatest internal enemy of the proletariat and the proletarian revolution.

-- Bela Kun, Pravda, May 4, 1918 (Marxists Internet Archive, here)

By 2008, IRS' 40ish Shulman No Longer Considered Himself Much Of A Midwesterner

Mlive.com had the story in 2008, here, capturing the Ohioan's distance from the heartland after years spent at Williams, Harvard and Georgetown, and in New York City:

Shulman, who grew up in Ohio, said Kalamazoo has a "neat downtown. Kalamazoo is a great town," he said. "I like the Midwest. I like down-to-earth people."

IRS' Doug Shulman, Arrogant Prick

Oops. How Could I Have Missed It? Lois Lerner Did The Mussolini.

CBS' Money Watch Should Be Crucified For This Erroneous Headline

If the author of the story, here, had bothered to read from the annual report of the St. Louis Federal Reserve to which he refers, and which adjusted the household net worth numbers for population growth and inflation from 2007, he would have observed that the maximum extent of the decline from which we have recovered 45% was something close to 27%. The helpful folks at the St. Louis Fed even provided a nice graph to make it easy to understand.

So, our net worth was never down 55% in the first place, and the anemic recovery we have experienced under Obama has brought us up only 45% from the 27% decline to which we had fallen. The dunderhead, no different from Rush Limbaugh nor any average high school graduate for the last forty years, incorrectly subtracted the 45% improvement from 100 to get 55, which shows he never learned the simplest thing about percentages in school.

As the graph clearly shows, we're still down about 15%, adjusted for population growth and inflation.

Here's the math: What's 45% of 27%? Answer: about 12 percentage points. Subtract 12 from 27 and you get 15 (85 on the graph at the left--add 15 to 85 and you get 100!).

Magic. 

Harrisburg PA Securities Fraud Just The Tip Of The Government Bond Fraud Iceberg

"Misleading public statements"? "Incomplete information"? Gee, isn't that the same fraud our elected officials specialize in these days, from an IRS official pleading the Fifth Amendment while asserting she's innocent to a Secretary of State stonewalling with "What difference does it make?" how someone who reported to her died?

Steven Malanga for The Wall Street Journal here:

With Harrisburg, however, the SEC has gone further and charged the city government with "securities fraud for its misleading public statements when its financial condition was deteriorating and financial information available to municipal bond investors was either incomplete or outdated." The SEC says this is the first time the regulator has "charged a municipality for misleading statements made outside of its securities disclosure documents."

The Harrisburg charges are part of a broader SEC effort to scrutinize state and local government issuers in the nation's $3 trillion municipal-bond market. "Anyone who follows municipal finance knows that budgets can sometimes be a work of fiction," says Anthony Figliola, a vice president at Empire Government Strategies, a Long Island-based consulting firm to local governments. "Harrisburg is the tip of the iceberg."

Gold/Oil ratio ends week at 15.14, and gold loses its relative advantage to oil

The edge goes back to oil, which, however, is probably going to keep declining in price, so there's no rush, especially since oil not that long ago had enjoyed an impressive "buy" relative to gold.

TSA Claims All Nude Scanners Now Gone

Nice belt!

Story here:

"[A]s of May 16, all US airports scanners equipped with the ability to produce the penetrating images will now only show a generic outline of a passenger to the operator."

Sorry Charlie, Household Net Worth Remains In Depression: Still 15% Off 2007 Peak

From the newly issued 2012 annual report of the St. Louis Federal Reserve here, taking the nominal figures in the March Z.1 Flow of Funds Release of the Federal Reserve and adjusting them both for inflation and population growth since 2007:

"Clearly, the 91 percent recovery of wealth losses portrayed by the aggregate nominal measure paints a different picture than the 45 percent recovery of wealth losses indicated by the average inflation-adjusted household measure. Considering the uneven recovery of wealth across households, a conclusion that the financial damage of the crisis and recession largely has been repaired is not justified."

Completed Foreclosures Still Running 148% Higher Than Normal

According to Corelogic's monthly foreclosure report, here, completed foreclosure activity is still running at a rate of 52,000 per month in April, down from 62,000 per month a year earlier.

The average monthly rate before the financial panic, however, was 21,000 per month, making the current rate, though improved, nearly 148% higher than was the case in the years between 2000 and 2006.

But don't worry, everyone says things are better now and housing has recovered.

GDP For Q1 2013 Revised Down To 2.4% From 2.5% In Second Estimate

From the report of the Bureau of Economic Analysis, here:

Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 2.4 percent in the first quarter of 2013 (that is, from the fourth quarter to the first quarter), according to the "second" estimate released by the Bureau of Economic Analysis.  In the fourth quarter, real GDP increased 0.4 percent.

The GDP estimate released today is based on more complete source data than were available for the "advance" estimate issued last month.  In the advance estimate, real GDP increased 2.5 percent.

To put the second estimate of Q1 2013 real GDP in context, a real rate of growth of 2.4% now is just slightly ahead of the average report of 2.23% during George W. Bush's first term in office. But compared to Barack Obama's first term, it's a world of difference from his performance in his first term with a paltry 0.83% average report.

That said, it used to be the opinion of Ben Bernanke, the Federal Reserve chairman, back in July 2009 that we needed 2.5% growth just to keep the jobless rate constant. That's why under Bush it took so long for jobs to recover after 911. And it's why jobs are taking so long to recover now. With growth of just 2.4%, going forward all we can expect is the current level of unemployment. And you can forget about putting the millions who lost their jobs in the recent financial panic back to work in decent jobs, maybe ever.

Price Discovery In Health Care

The past is the future: Doctor in Maine stops taking insurance, cuts prices in half and posts them online.

Story here.

Stupid: Well, There It Is

P.J.O'Rourke, here:

Call a man, best of all, wicked and you get to don the sacramental vestments, climb into the pulpit and thunder forth with such a sermon as to bring him weeping to the font of righteousness or cause the Lord God Almighty to strike him with a thunderbolt in his pew or something fun like that. But call a man stupid and . . . there it is.

And there it is: Dopey stimulus, obtuse bailout, noodle-headed Obamacare, half-wit Dodd-Frank, damfool IRS Tea Party crashers, AP and Fox News beset by oafish peeping Toms and the Benghazi tale told by an idiot. One could go on. Stupid is a great force in human affairs. And the great force has a commander in chief.

IRS' Shulman Visited White House 9 Times In '09 Alone, Everson Once In 5 Years

The former IRS Commissioner Douglas Shulman is widely reported to have visited the White House well over 100 times after 2008 when he took over the agency, just as the IRS was preparing to target Tea Party groups in earnest.

What's more interesting, however, isn't the aggregate number of visits he made, most of which occurred in the wake of the passage of ObamaCare in 2010 and which are detailed in the logs as health-care related discussions, but that he made so many visits to the White House prior to March 2010.

Earl Glynn here has made an exhaustive study of the White House logs and finds Shulman visited the White House 9 times in 2009 alone.

Shulman's predecessor Mark Everson, by contrast, recalls making just one visit to the White House in the five years between 2003 and 2007, as reported by Susan Ferrechio here:

'The frequent trips to the White House under Obama far outnumbered the times other administrations felt the need to meet with the IRS, according to Mark Everson, who led the IRS under former President George W. Bush. Everson said he remembers making only one trip to the White House between 2003 and 2007 and said he felt like he'd "moved to Siberia" because of the isolation.'

In Shulman's testimony before Congress he has denied discussing targeting of Tea Party groups, but he also testified that he doubted he visited the White House as many times as reported, as recounted here:

He also expressed skepticism that he had visited 118 times.

“I don’t accept the premise that there are 118 visits to the White House,” he objected. “That may or may not be true.”

Yeah right, that's because there were 157 visits, not 118.

The guy's a Slick Willie who absolutely must parse so that if and when we get the goods on the guy at least he'll avoid a perjury charge:

[A]ll of Shulman’s answers were parsed and delivered in practiced legalese.  He almost never answered anything with simple assertions, opting for “recollections” and “as far as I can remembers.”  In his apparent painstaking efforts to avoid making any statement that might ensnare him in a perjury controversy, Shulman seemed unable to cleanly field simple questions about his opinion.  So he hedged and qualified and dissembled — and looked really guilty doing so. 

IRS' Lois Lerner Actually Signed Letters To Targeted Tea Party Groups

The story is here:

"The IRS official who refused to testify this week -- while claiming she had done nothing wrong -- signed letters to Tea Party groups a year ago that asked them to turn over everything from printouts of their Facebook pages to the credentials of speakers who participated in their events."