Part 6: “OIL COMPANY” WALKER, “OIL CAN” ORTIZ, & OIL COMPANY SOCIALISM
By David G. Hanger
April 29, 2016
Unfortunately, there is no particular reason to agree with Ron Duncan about much of anything. In the first instance he is shilling for GCI, and his proposal has nothing to do with the general welfare of the state or of you. It is all about what is good for Ron Duncan and GCI, and as such it is just another load of crap.
In the second instance he is flat out shilling for the oil companies. Let’s spend down the Permanent Fund, finance government exclusively with earnings from the Permanent Fund and taxes on you, and never consider again the taxing of these oil companies who are raping us for all of our oil. Oh no. He wants you to stay in place so that he can first validate his investments in Alaska, then maximize the profit therefrom. At that point he is just as much a fraud as the oil companies and the state legislature, all crooked peas in a pod out to clean every one of you out without paying a dime in taxes. Paying taxes is for ordinary people like you, not the super-rich, not the thieves, and certainly not for anyone on that short list of buddies of these oil company crooks that call themselves the Alaska State Legislature.
GCI’s plan for Alaska can be seen in full by popping up their propaganda mill on the internet. The essential variant that Ron Duncan proposes is a sugar-coated candy pill. We will only take half of the Permanent Fund Dividend, not all of it like Walker’s plan, re-arrange a few numbers otherwise hither and yon, and then we will not run out of money until 2020, that is so long as the stock markets continue to perform per Ron Duncan’s instruction. (Notice the level of competency these morons possess toward predicting the future of oil prices. They will obviously do so much better with their predictions about stock market behavior, won’t they?)
What Ron Duncan expects is by 2020 the price of oil will go back up to $150 a barrel and everything will be OK. What we do after 2020 GCI.org really does not say. But if we do this we just might have enough money on hand to pay in the $1.5 billion that is due for our 25% share of the new gas pipeline that some daydreamers believe will exist say ten years or more in the future.
In other words Ron Duncan’s proposal for the terminal patient that is the government of the state of Alaska is effectively a placebo; it buys a little time, but otherwise accomplishes nothing, while in the meantime the patient thinks it is getting better due to this new treatment, but in fact nothing of the kind is happening at all, and the patient and you are both DOA in 2020.
HIS PROPOSAL IS FUNDAMENTALLY CRAZY, BUT THIS GUY IS IN THE PERFECT POSITION TO MANUFACTURE THIS MASSIVE SUBLIMINAL PROPAGANDA CAMPAIGN THAT IS DESIGNED TO CONVINCE YOU THAT UP IS DOWN AND DOWN IS UP.
“Oil Company” Walker by contrast touts a plan that is designed to solve all of our financial problems by reducing the tax credits allowed to the oil companies, wiping out the Permanent Fund Dividend completely, and imposing massive new state income taxes and sales taxes on the citizens, but not the corporations, of this state. He is completely sold out to the oil companies and does not intend to tax them one thin dime, now or at any time in the future. $200 to $300 million in state income taxes and sales taxes will be added to the earnings of the Permanent Fund and that will be the budget for the State of Alaska.
HERE IS THE SINGLE SENTENCE THAT MAKES “OIL COMPANY” WALKER’S PROPOSAL TOTALLY LAME AND IGNORANT: “IN 2008, WHEN THE WORLD ECONOMY WAS IN FREE-FALL, THE PERMANENT FUND LOST $9 BILLION IN ABOUT 10 WEEKS.”
The markets will crash again; the same idiots are at the controls and the behavior that got us all in deep trouble in 2008 is manifesting itself again. As mentioned previously there is a somewhat predictable pattern to this. If not from a completely unexpected direction, the most likely cause will be the explosion of the Chinese real estate bubble.
When a free-fall occurs no one wants to buy your junk, so all those stocks and bonds in the portfolio are in a for a long downward ride from which there is no escape because there is nowhere to go, no rescuer. $9 billion is two to three years of financing our state government, and where else is that money going to come from if all the other reserve accounts have been spent? It will come from the principal of the Fund, and once that nut is cracked there is no going back. Take $9 billion out of the Fund today and that leaves $30 billion, and then they will need to take more; and soon you have no Fund with which to finance anything, and it is not just the state government that will be gone.
The “Coghill Abomination” is a criminal conspiracy on the part of the so-called Alaska State Legislative Majority that has as its sole purpose the stealing of the wealth of ordinary Alaskans to finance the theft of Alaska’s oil by a bunch of crooked oil companies. These people belong in prison. Here the words of “Oil Can” Dan Ortiz perfectly reflect the nature of their crime: “Our constitution requires the State of Alaska to manage our resources to the maximum benefit of the people. Government’s fiduciary duty to its citizens is to make prudent investments and establish a sustainable budget. The State of Alaska must make responsible and wise decisions, as we are an owner state.”
On all points aforementioned the Alaska State Legislative Majority via the “Coghill Abomination” is in violation of the Constitution of the State of Alaska. In most instances they are working in direct opposition to its provisos. Our resources are being managed for the maximum benefit of foreign oil companies. They have violated their fiduciary duties to us all by making imprudent investments specifically intended to create an economic and a Constitutional crisis while failing to establish any reasonable means toward a sustainable budget; in fact doing everything they can to destroy any possibility of a sustainable budget. And we are no longer an owner state; WE ARE OWNED, to the point the citizens of Alaska are now expected to pay out of their pockets for the privilege of allowing the oil companies to steal their wealth to the tune of more than $30 billion of oil taken from the ground since the beginning of 2014, with net profits to the oil companies in the range of $14 billion to $18 billion a year.
THE “COGHILL ABOMINATION” REQUIRES THE CITIZENS OF THIS STATE TO FORFEIT THEIR PERMANENT FUND DIVIDENDS, TO PAY SUBSTANTIAL NEW STATE INCOME TAXES AND SALES TAXES, TO EXPERIENCE ALREADY OCCURRING MASSIVE INCREASES IN LICENSING AND USER FEES, TO FORFEIT THOUSANDS OF BUREAUCRATIC JOBS ACROSS THE STATE, ALL SO THAT WE CAN PAY $750 MILLION TO THE OIL COMPANIES FOR THE PRIVILEGE OF ALLOWING THEM TO STEAL OUR OIL.
THESE PEOPLE BELONG IN PRISON.
In Part 7, the tax expert reviews in some detail how they are doing it. You are about to learn what “worldwide accounting” means. My guess is some of you will be figuring that one out on the fly, so prepare to get very, very pissed off.
As usual, forward to as many friends as possible and ask them to forward it to some more.
David G. Hanger
Received April 28, 2016 - Published April 29, 2016
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