Daily Spiritual Wisdom

prayer

 

Someone has written these beautiful words. It’s a must read! Try to understand the deep meaning of it. They are like the ten commandments to follow in life all of the time !

1]Prayer is not a “spare wheel” that you pull out when in trouble, but it is a “steering wheel” that directs the right path throughout the journey.

2] So why is a Car’s WINDSHIELD so large & the rear view mirror so small? Because our PAST is not as important as our FUTURE. So, look ahead and move on.

3] Friendship is like a BOOK. It takes a few minutes to burn, but it takes years to write.

4] All things in life are temporary. If going well, enjoy it, they will not last forever. If going wrong, don’t worry, they can’t last long either.

5] Old Friends are Gold! New Friends are Diamond! If you get a Diamond, don’t forget the Gold! Because to hold a Diamond, you always need a Base of Gold!

6] Often when we lose hope and think this is the end, GOD smiles from above and says, “Relax, sweetheart, it’s just a bend, not the end!

7] When GOD solves your problems, you have faith in HIS abilities; when GOD doesn’t solve your problems HE has faith in your abilities.

8] A blind person asked St. Anthony: “Can there be anything worse than losing eye sight?” He replied: “Yes, losing your vision!”

9] When you pray for others, GOD listens to you and blesses them, and sometimes, when you are safe and happy, remember that someone has prayed for you.

10] WORRYING does not take away tomorrow’s TROUBLES, it takes away today’s PEACE.

If you really enjoy this, please pass on to others. It may just brighten someone’s day. Live simply. Love generously. Care deeply. Speak kindly. Leave the rest to GOD.

 

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NYU Course Proposal – ULL Architectures for Electronic Trading

NYU

NYU School of Professional Studies – course proposal – Ted Hruzd July 2016
ULL (Ultra Low Latency) Architectures for Electronic Trading

***if interested in this course
contact me- tedhruzd@gmail.com

***no confidential info
from current or former employers are listed
here or will be taught

NYU School of Professional Studies – course proposal – Ted Hruzd 2016
ULL (Ultra Low Latency) Architectures for Electronic Trading
Course Objectives

Develop advanced skills in architecting electronic trading and market data applications for ultra low latency (ULL), for competitive advantage, and for positive ROI.  At end of course one will have developed expertise in end-end architecture of electronic trading infrastructure, including architecting of:

 

  • Multi core, high speed cache Intel based servers
  • Linix 7.2 kernel and NIC tuning
  • Kernel bypass technologies including RDMA and LDMA
  • FPGA based NIC(s) – from ExaBlaze
  • Single tier (or simplified spine-leaf); Ex: Plexxi
  • Layer 1 network switches (ExaBlaze & Metamako)
  • SDN (Software Defined Networks)
  • New binary FIX protocol for ULL order routing
  • ULL messaging middleware (29 West LBM/UME) and 60 East Tech AMPS
  • ULL software design (deep vectors and multi threading)
  • Databases – structured and unstructured
  • Storage, including NVME Flash
  • Tools (some free) to attain performance optimization insights
  • Network appliances – detailed timings/analyics – network, market data, and order routing
  • Big Data and Event Stream processing, real time analytics for seeking alpha (trade opportunities)
  • Fundamentals of FPGA design and programming
  • ROI analysis

PreReq – Intermediate – advanced knowledge of

  • TCP/IP, UDP, multicast,
  • Linux OS and shell or scripting (ex bash, perl),
  • Intel servers
  • Network routers, switches
  • FIX protocol
  • Market Data
  • Visio
  • Python (very basic will be fine – a 2 hour reading assignment will be arranged for beginners)
  • R programming (nice to have. Will use basics that one can learn in 1-2 hours),
  • at least 2 years working with electronic trading applications/infrastructures as Developer, SA, network admin/engineer, Architect, QA analyst, tech project mgr, operations engineer, manager, CTO, CIO, CEO, vendor or consultant providing technology to Wall Street IT

Course Logistics

  • approx 9 week course, to meet once a week for 3 hours.
  • Tech book(s) to download to kindle TBD
  • Multiple web site links to technical white papers and tech analyses
  • Visio
  • Homework every week, to be reviewed in class for 30 minutes, after submission
    All homework will describe real world problems or architectures to build and justify.  Answers will include creating Visio diagrams to solve, list infrastructure designs and reconfigurations, and performance tuning of OS, servers, NIC’s, networks, application design

 

 

NYU-week-by-week

 

WEEK-1

INTRO – Why speed matters and a fundamental analysis of a ULL architecture

  • Will present a Visio diagram with a potential co-lo ULL architecture that receives orders destined for trading venues, utilizing Layer 1 switching. Goal: 500 nanosecond Ack times ingress to appliance that includes Layer1 switching to/from Trading venues).
  • We will periodically revisit this co-lo architecture throughout this course when we cover specific architecture components in depth (Algo Trading and/or SOR that feeds this architecture, use of FPGA, multi-cores, and Layer 1 switching)
  • Why speed of processing still matters and will for next several years at least
  • Why Layer 1 switches
  • Layer 1 switch with integrated cores and FPGA for risk checks
  • High speed real time analytics for seeking alpha (trade opportunities) & infrastructure analytics
  • Exchange (Trading Venue) connectivity
  • Layer 2/3 aggregation in new switch appliances
  • Role of Linux kernel tuning for ULL
  • Present some Linux configurations to critique
  • HOMEWORK – Given few server, Linux configurations with flows, respond with measures to optimize performance & lower latencies

 

WEEK-2

OS, Servers, Software, intro to networking

  • Review Homework
  • Deep dive into Linux 7.2 network-latency configuration + additional tuning options
  • Basic Linux and Server measures and utilities for performance analytics:
    • Disable unnecessary daemons and services (ex firewalld & iptables)
    • BIOS updates and tuning
    • Turbostat
    • Lstopo
    • Lscpu
    • Numactl
    • Numastat
    • Tuned
    • Isolcpus
    • Interrupt affinity or isolation
    • Irqbalance
    • Busy_poll
    • Tuna
    • Perf
    • Mpstat, vmstat, iostat, nicstat, free, top, netstat, ss
  • VM (Virtual Memory) and page flushes, optimize market data caches
  • Slow network connections and packet drops
  • Intro to NetPerf tool
  • NIC tuning
  • Kernel bypass, LDMA, RDMA
  • Kernel bypass with NIC vendors (ExaBlaze, SolarFlare, Mellanox) – description how each work
  • Network appliances:
    • ExaBlaze Fusion
    • Metamako MetaApp
    • FixNetics ZeroLatency
  • HOMEWORK – per given atchitectures and requirements, configure kernel bypass (will draw on knowledge of ExaBlaze, SolarFlare, Mellanox) + more advanced kernel tuning configurations also per given architectures – given an environment with memory pressure + packet drops Also will be given Python programming reading assignment

 

WEEK-3

OS, Servers, Software, intro to networking (cont)

  • Quick intro Python
  • Programming with Multiple core multi thread, parallelism
  • Vectorize application code
  • Design – Internal loops with deep vector instructions, outer loops with parallelization (threads)
  • Servers, sockets, cores, caches
  • Core speeds GHz vs more cores, larger and faster caches
  • Over clocked servers – features and what applications can benefit
  • Linux, Solaris, Windows, other ex SmartOS, Mesosphere DC OS
  • How to benchmark performance, analyze, tune
  • NUMA aware processes and threads
  • Optimize cache assignments per high priority threads
  • Intel technologies including …
  • AVX-512 deep vector instructions
  • TBB thread Building blocks
  • Omni-Path high speed / bandwidth interconnect and QPI
  • PCIE
  • NVME
  • Flash SSD Drives
  • C ++ vs Java for ULL
  • Lists vs vectors
  • Iterate lists
  • Role of FPGA, GPU, MicroWave networks for ULL
  • C/C++, Java, Python, CUDA, FPGA: programming design considerations
  • Java 8 new streams API and lambda expressions – for analytics
  • HOMEWORK – all reading/studying – (1) Python for algo trading (texts and materials to be provided) & (2) links to ULL Network – deep dive white papers & (3) intro to Wireshark

 

WEEK-4

ULL Networks

  • Review and key points of reading assignment + short quiz to test knowledge
  • Intro to Wireshark
  • Intro to FIX Protocol
  • Intro to Wireshark with FIX protocol “Plug-in”
  • TCP, UDP, multicast (MC), then analysis via WireShark, Corvil
  • New age networks – Spine leaf to single tier
  • SDN (Software Defined Networks)
  • Pico – ULL SDN vendor
  • Cisco and Arista switches for ULL
  • Cisco ACI and Cisco Tetration – Deep machine Learning to automatically optimize large networks
  • Switches with deep buffers, great for Big Data Analytics
  • Configure Routers for ULL – LLDP, MLAG, VRRP, VARP (active-active L3 gateway)
  • Network protocols – BGP, OSPF, HSRP
  • Arista 7124FX with  EOS
  • Plexxi switches – a disruptive technology – single tier
  • Plexxi optimal bandwidth via its SDN
  • HOMEWORK – analysis of a sniffer trace, with recommendations how to optimize performance + more Python / Algo Trading reading

 

WEEK-5

FPGA’s & Market Data

  • Hardware accelerated appliances for ULL and deterministic performance
  • Intro to FPGA’s including intro to FPGA design & programming (I/O blocks + Logic blocks)
  • Why performance tends to be very deterministic with FPGA’s & why deterministic performance (latencies) are critical for HFT and algo traders
  • Pitfalls of FPGA’s
  • FPGA’s vs GPU’s, Intel Phi, and multi cores
  • Feeds in FPGA –architecture, performance, design, support
  • Switch crossbars or caches for fan out with TCP distribution
  • Multicast performance considerations
  • Message based appliances, including FPGA based
  • Direct feed normalization
  • Conflation to conserve bandwidth
  • NBBO
  • Levels 1 and 2 market data
  • Depth of book builds (in FPGA’s or new multi core servers)
  • Smart order routers
  • Exablaze NICs and switches v Metamako switches for market data
  • ENYX FPGA NICs and Appliances for market data and order flow
  • Nova Sparks FPGA based market data ticker
  • Fixnetics Zero latency – multi thread risk checks in FPGA and order processing in parallel on a core(a)
  • Other products — Exegy, Algo logic, Redline, SR labs
  • Consolidated feed vendors Bloomberg and Thomson Reuters
  • HOMEWORK – in an “unturned” environment, run netperf tool to generate peaks in network traffic; set up nicstat to monitor, capture packets and analyze in Wireshark; repeat same test but with a tuned environment and one with ExaBlaze NIC(s) /ze NIC(s) /kernel bypass; also capture packets and timings but via ExaBlaze; compare performance.

 

 

WEEK-6

Analytics  & Machine Learning:  to seek alpha and for infrastructure analytics

  • Intro to Big Data Analytics & Machine Learning (focus on neural networks)
  • Intro to Complex Event Processing (CEP) and Event Stream Processing (ESP)
  • Databases – Never in the path of ULL
  • Column based (contiguous memory) vs relational
  • KDB and OneTick – leading players in high speed market data tick databases
  • EVENT STREAM PROCESSING (ESP) – use ESP To seek alpha
  • Combine market data with News sentiment analytics to seek alpha,
  • Intro to Ravenpack news sentiment analytics
  • Intro to Spark
  • Role of new storage technology (ex NVMe Flash drives)
  • In-mem analytics ex HANA, Spark
  • Corvil – intro to how to configure Corvils and how to analyze FIX order flow with it
  • Machine learning, neural networks in R or Python – create equations to project latencies
  • Machine learning for Latency analysis, tuning insight, seeking alpha -trade opportunities
  • Programming for multi threaded trading risk analytics
  • HOMEWORK – additional stress tests (more volatile) in the environment with ExaBlaze NIC(s) + Wireshark analysis + additional reading in Python for Algo Trading

 

 

WEEK-7

Middleware, High Speed Messaging

  • 60 West AMPS
  • 29 East LBM (UME)
  • New FIX Binary protocol in beta promises to lower latencies
  • Importance of High Speed messaging for Algo Trading
  • Intro to basic algo’s for trading equities (ex VWAP, Volume Participation, use of AVX and RSI)
  • How to back-test algo’s for trading
  • HOMEWORK – program an algo for trading in Python, (TBD- with options which to choose); connect with driver for market data; run a “back test”, analyze performance data via Wireshark with Exablaze generated captures (2 –weeks to complete this)

WEEK-8

End-End ULL Architectures & Intro to Cloud Architectures

  • Co-Lo with 500 ns order ack times (revisited with our new knowledge)
  • Dark pools
  • Algo Trading (servers, appliances, or FPGA’s) in the architecture
  • Smart Order routers
  • Prop Trading
  • Exchanges
  • Why traditional cloud architectures fall short for ULL
  • Cloud for analytics – pitfalls vs best practices
  • Micro services potential
  • How to conduct ROI for new ULL architectures
  • HOMEWORK – VISIO of a new trading system TBD, applying all learned in course

 

WEEK-9

Futures, including Cloud Architectures for ULL

  • Brief Quiz on material covered last week + review of VISIO assignment
  • Projections on new technologies’ impacts on ULL – may include:
  • new Intel cores & software,
  • adoption of Single Tier networks,
  • impact of in memory machine learning for alpha generation of trading signals,
  • integration of deep machine learning from cloud to live trading networks via high speed interconnects, to an asynchronous Q, with NO latency impact,
  • applicability of block chains,
  • system reliability engineering (SRE),

 

 

 

 

 

 

 

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A Parable by Jesus and Capitalism versus Socialism Debate

Ted’s letter was published in the August 20, 2015 edition of The Beacon, a weekly newspaper of the Roman Catholic Diocese of Paterson, NJ serving Morris, Sussex, Passaic counties.  The letter:

This is in response to Robert Matrisciano’s 8/6 letter “Capitalism allows Christians to espouse biblical social justice”.   The letter championed capitalism as a more effective means than socialism for social justice,  arguing that individual freedom to utilize ones  ‘treasure’ to benefit others is more effective than collective government policies.

Let us take the capitalism versus socialism argument to another level.  Please reference Matthew 25:14:30 – parable of a master providing three servants with 5, 2, 1 talents respectively, expecting a return.  The first two doubled their talents and were praised whereas the third one did not and was condemned.

Socialist ideology stresses that the Government provides all with cradle to grave entitlements, often with extreme confiscation of wealth in order to redistribute income and thus pay for wide gamut of entitlements, up to the point where the Government may find itself in heavy debt.  Why? This is due to less incentive for one to increase income, thereby decreasing government revenues.  The rise of increasing socialist economics in the US has created an ever increasing Dependency on Government class that feels entitled, to an extent, even to non essential, even immoral  ‘entitlements’ such as contraceptives, stealing from tax payer revenue or borrowing further from abroad, deepening debt.  Socialism degrades the human spirit to apply their God given talents to better themselves and the world.   Free market capitalism, in contrast, provides incentives for all to develop their God given talents to the maximum.  Which environment – capitalism or socialism – would best motivate the servants in the parable?  The answer is easy.  Study world economic history if you have any doubts.

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Bill de Blasio’s NYPD Agenda

Toon 9

I sent following to Bill O’Reilly:

Killing NYPD

De Blasio knows NYPD is not racist but he, along with Sharpton, Holder, Obama have following agenda:

Nationalize local police forces, via executive order IF the chaos against the police continues to escalate. This is a major prerequisite to a full socialist takeover. It is also up to us to state the obvious to our friends, family members, etc … so we can all peacefully protest this policy, DEMAND de Blasio resign, and elect leaders to reverse course.

** Bill – we are counting on you to step it up and call out these provocateurs on their agenda which is based on lies, else in a year or two someone will write a book ‘Killing NYPD’.

Bill – great reference what may indeed be going on with this agenda can be found at:

http://www.returntoexcellence.net/2014/12/removing-influence-of-bo-de-blasio_28.html

Look forward to your opening comment Monday 8 pm Jan 5!

Twitter@Economics501

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Jim Rickards Predicts an AfterShock Like Economy as Debt Explodes While Economy Weakens

Please read link way below regarding an interesting analysis and projection by successful investor Jim Rickards, with some great stats such as the Federal Reserve being leveraged 77:1; I believe that is up from 22:1 in 2008. Also note that $1 debt used to increase GDP by $2.41 in 50s and 60s; now this $1 increases GDP by only $0.03 and is in danger of turning negative, per Rickards.

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1 theme he expands on therefore is that the Fed and Treasury are our greatest threat to national security. Rickards does predict an economy soon (perhaps within 6 months) that is quite similar to what Robert Wiedemer has been predicting for past few years – a $ collapse with severe economic adjustments required by the US. Reference AfterShock Economy:
https://economics501.wordpress.com/category/aftershock-economy/
Subsequent to further degrading of our debt and economic growth, Rickards foresees the possibility of the IMF bailing our Fed. The IMF is only leveraged by a 3:1 ratio.
i have not validated the stats or analysis but as i said – very interesting …

So how can we jump start the economy? Clearly tax reform must be one significant approach and be dealt with immediately. For more details visit — https://economics501.wordpress.com/category/tax-reform/

see link below
http://pro.moneymappress.com/MMRBSLG39EXT/LMMRQ9AH/?h=true

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Replace NJ Income Tax with state version of the Fair Tax

Following letter by Ted was published in The Daily Record June2 — http://www.dailyrecord.com/story/opinion/readers/2014/06/02/fair-tax/9802775/

 

I further expand on former state senator Ray Bateman’s argument that it is poor economic policy to tax the rich to the point where they leave the state. This not only takes away state revenues from their exit but also diminishes future revenues from the jobs many rich entrepreneurs create. In the end the state suffers from punishing income taxes. Tax more income and thereby expect less of it.

 

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New Jersey should eliminate the state income personal and corporate taxes, thereby reward success (income), encourage more of it, and subsequently grow the economy along with more revenue potential for the state. New Jersey should then closely implement, at the state level, the Fair Tax. The idea is to replace income taxes with revenue neutral consumption taxes on new products and services. This tax reform at both the state and federal level would more strongly grow the economy, add new jobs, and thereby provide governments adequate revenue sources. Annual budget deficit woes may then finally become just memories.

Posted in Politics - NJ and Morris County, Tax Reform | Tagged , | Leave a comment

Answer Karl Marx Capitalism Prediction with the Fair Tax

Karl Marx predicted that capitalism contains the seeds of its own destruction.  That is correct if a capitalist government embarks on an extensive and ultra progressive tax system to finance excessive entitlements.  Marx succinctly stated this strategy would eventually lead to socialism and ultimately communism.

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Our current tax system fairly close matches the above.  It punishes success (income growth) and thus stunts economic growth and widens the income gap.  Many of the poor likely realize that income is heavily taxed so why risk getting a job when the Government provides so much?

The Fair Tax (FT), in Congress as HR 25, provides incentives for all, by not taxing income and thus encouraging one to generate more income.  The FT is revenue neutral while eliminating all federal income and payroll taxes.  The FT generates revenue via a national sales tax on new products.

More of the poor will realize they can better themselves significantly by earning tax free income and not being punished by earning as much as they can.  They can then do their part to narrow the income gap.  To learn more visit http://www.fair tax.org, https://economics501.wordpress.com/category/tax-reform/,

www.returntoexcellence.net

Twitter @Economics501

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Will Bill O’Reilly be tough enough to ask questions about Marxism?

Bill O’Reilly encourages us to send him questions for his pre Super Bowl Obama Interview.  Here is my top 1:

Hey Bill – with no evidence against Paul Ryan, the Left states he is out to gut health care and benefits for the elderly and creates a commercial with a Paul Ryan look a like pushing granny off a cliff.  So why can’t the conservatives get an opportunity to ask Obama a question where there is tons of evidence he is implementing a Marxist strategy to “fundamentally change” the US?  Please read the below to him:

Mr President – I was a Marxist scholar in college (1978) and at that time liked many aspects of Marxism but since then changed and became a free market capitalist.  Observing your 5 years as president it seems you have successfully implemented an onslaught of Marxist values on an unsuspecting public.  Your “war on work” and massive expansion of the “Dependency on Government” class have created a true “proletariat” class that may soon embrace a 21st century Obama version of Marxism.  Please comment

** Bill do NOT let him get away with spin.  Remind him that he seems to be following Vladimir Lenin’s main strategy that lead to Lenin’s version of Marxism.  That strategy is:  the quickest path to revolution is to debase a currency.  Cite the debt that has grown from 9.6 trill to 17.5 trillion in 5 years under Obama.

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Other 27 questions I sent to Bill :

Bill I dare you to ask even one of these hard questions.  How about asking  the 5 toughest ones and NOT letting BO “spin”?

Was Benghazi used to deliver weapons to Syria rebels, many of who were associated with al Qaida?

Where were you during the Benghazi crisis?

Defense Sec advised you right away Benghazi was a terror attack with al Qaeda influence.  Why did you for 2 weeks state it was due to a video?

What were the motives of the Benghazi terrorists?

Why is Clapper still in office as head of intelligence?  He lied under oath about NSA spying.

Why is Holder still in office?  He lied in Congress about his role in journalist wiretapping.

Why do you rarely speak favorably about the role of the private economy?

Do you believe the US should ultimately be a socialist nation?

What motivated you to take a job as community organizer in an organization founded by Saul Alinksky?

can you mention a few aspects of Alinsky’s rules for radicals that you still follow?

Do you consider that Saul Alinsky presented a more modern version of Marxism?

Why do you believe Government controlled health care is superior to one managed by private markets?

Are you worried your debt explosion may result in a dollar collapse?

If you are so concerned about income redistribution, why do you not take action to cut much gov waste?  If you did you would have more useful $ for all.

How can you justify the $430 billion annual cost in complying with the IRS and our tax code?  Is not that a huge waste and drag on the economy?

Pleas provide a few reasons why you are against the fair tax.  Please be aware the fair tax eliminated the IRS.

Why are you implementing immigration reform via executive fiat?

Why did you negate Clinton’s welfare reform without getting Congressional approval?

Why did you disobey a fed Court order that you rescind your sever restrictions on drilling oil off shore?

Where in the Constitution do you get such extensive powers to circumvent Congressional legislation while issuing executive orders?

Do you really think most Americans believe you were clueless about the IRS harassing of conservatives, NSA abuses, spying on journalists, fast and furious! and most of all that you did not lie stating that Americans would not loose their doctor with ObamaCare?

Did you and Candy Crowly rehearse how you would respond to the Bengahzi attack during the second Romney debate?  After all when you asked her to read the transcript it was on top of a huge pile of documents.

Did you lie about Benghazi  to get re elected?

Are you happy how you handled Benghazi – especially the part when you knew it was a terror attack but you said for 2 weeks it was about a video?

Vladimir Lenin stated that the quickest way to revolution is to debase a nation’s currency. Do you agree your policies mimic Lenin’s?  You started with a total debt of $9.6 trillion. It is now $17.5.

A result of many social welfare states over past century is that the lower income suffer most with growing income gaps.  Those with incentive learn new skills continuously and prosper.  many who become brainwashed by the Left believe they are victims of the rich and tend to loose focus, loose ambition, and loose jobs and income growth potential.  The Left needs this income gap and a villain in order to stay in power. They have been very effective in influencing the mindsets of many. we need more grass roots advocates of free markets and individual liberty.  Will you join  me in changing this mindset?

Twitter @Economics501

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Fair Tax Will Reverse US Progression to Deep Socialist Jungle

 

The Fair Tax (FT) changes dynamics for the poor and encourages them to create more income instead of relying on the Government.  The FT thus reverses the nanny state or the progression towards a deep socialist jungle.

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Since LBJ’s 1964 start of war on poverty (when poverty rate was 15%), the US has taxed, borrowed, and spent $21 Trillion on wide variety of poverty programs.  Since then the poverty rate has fluctuated between 11% and 15% and has been 15% the past 4 years.  Many poverty programs simply decreased the poors motivation to better themselves.  The Left brainwashed the poor, drilling into them, that they are poor due to greedy rich who take advantage of them and do not pay their fair share of taxes.  The rich are villains per the Left.  The elite Left know that if the poor better themselves that the Left will be out of power.  Hence they continue promoting policies that increase a Dependency on Government class.  The Left therefore attacks the FT as a give away to the rich but it is clearly not.  Some on the Right mistakenly attack the FT as an extension of the nanny state.  This also is incorrect.  Next we further debunk the Left and then focus on the attacks from the Right.

The poverty rate was in sharp decline when Johnson initiated the war on poverty program.  It fell from almost 23% in the late 1950s to 17.3% in 1965, a year after the program was announced and before it could have made any significant impact.

Meanwhile, an all-time high of Americans — nearly 9 million, 20% more than when Obama walked into the White House — are on disability. And not because they’re disabled, but rather because they can’t find jobs in Obama’s economy and have exited the workforce.  And what is Obama’s economy?  In a nutshell it is to increase the Dependency on Government class to keep the poor as poor and keep the Left in power.  Nearly a $trillion to the non productive public sector in stimulus was a total waste.  It is the private sector of the economy that creates new jobs that self sustain them, create ancillary jobs, new products, services, and industries. In essence Obama focused on the wrong sector.

(For more please reference IBD link below).

http://news.investors.com/ibd-editorials/010814-685709-johnsons-war-on-poverty-has-been-lost.htm

To the Right objectors:

The prebate is just up to poverty level and is fair; most poor will spend up to this point.  It is not a give away to the poor.  All will receive prebates up to the poverty level to offset the impact of the revenue neutral consumption tax.

FT taxes only new products and services and is revenue neutral.  The % is simple.  For something costing $77 one will pay total of $100.  This is 23% of the total cost or 23/77 or 30% of net cost.  Again this is required to make the FT revenue neutral.

Regarding Social Security (SS) and Medicare:  – all payroll taxes are eliminated for all.  Whoever works generates income which is not taxed at federal income level with the FT.  This pays for SS and Medicare.  By encouraging the poor to generate more income, the FT thus increases odds that the poor contribute more for payment of all entitlements by generating more income and consumption and thus tax and entitlement revenue.

Why do the gaps between the rich and poor continue to increase?

Two main factors are:

1 – Government policies that have encouraged many to become overly dependent on Government welfare programs.  Think of the Great Society programs that started in the mid 1960′s (already discussed).

2 – Archaic tax system that benefits the very rich at expense of the poor, small businesses and entrepreneurs.

The poor rely on the rich providing them with handouts and jobs.  New jobs are limited with a tax system that punishes success (income).   Our tax system retards our private entrepreneurial activity that in the past fueled our economy much faster.  Hence the poor stay poor while the rich become richer.

Given our tax system, many of the poor lack incentives to better themselves. Many have developed a mindset that entrenches them to stay poor long term if not forever.  Many of the poor likely realize that income is heavily taxed so why risk getting a job when the Government provides so much?

The Fair Tax, in Congress as HR 25, provides incentives for all, by not taxing income and thus encouraging one to generate more income.

The Fair Tax eliminates all deductions. It also eliminates federal personal and corporate income and payroll taxes and replaces that with a revenue neutral consumption tax. This will empower the private sector to significantly lead us back to prosperity as our businesses will be able to more strongly compete globally.

The elimination of federal income and payroll taxes will encourage all workers including the poor to improve their skills to earn more.  Upon examination, more of the poor will realize they can better themselves significantly by earning tax free income and not being punished by earning as much as they can.  This will encourage many to leap from their comfort zone of Government dependency.

The zero percent corporate income tax will entice domestic and foreign entrepreneurs to create new  businesses and jobs in the US.  The increased jobs growth will provide yet another incentive for the poor to strive for higher incomes.

In conclusion the FT is progressive while at same time reversing US drive to socialism.

More details in https://economics501.wordpress.com/category/tax-reform/.

To learn more also  please visit www.fairtax.org

Twitter @Economics501

 

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Tax Code Prevents Effective Capitalism – so Pass the Fair Tax

Ted recently had a letter to editor posted in the Daily Record – Morristown NJ local paper – again regarding the Fair Tax.  Below is the letter and link along with comments that followed on-line.  I invite all to join this debate and answer one question Ted raises:

Main argument here is that current tax system unfairly benefits large corporations. I propose the fair Tax as a remedy. To all readers – please propose your remedies, would love to read about them.

The letter:

Alex Pugliese is absolutely correct in his letter stating that “Capitalism works, when not playing favorites.” The current tax code by itself is a huge impediment to a more free market capitalist economy. Approximately $900 billion of annual corporate and individual tax deductions are of dubious value to economic growth. Many of these tax deductions are for large corporations. This mainly insulates them from threats from new, small, innovative companies. As a result our economy staggers. Clearly tax reform is needed.

The most promising tax reform alternative is the Fair Tax, now in Congress as HR25. It eliminates all personal and corporate income taxes, deductions and breaks, regressive payroll taxes, the IRS, and gruesome $430 billion annual compliance cost. It replaces that with a revenue neutral consumption tax on new products and services.

All will receive monthly prebates up to the poverty level to offset the consumption tax and render a progressive tax structure. Results will include domestic and foreign entrepreneurs investing in new industries, companies, jobs, thereby creating more wealth for all. To learn more please visit www.fairtax.org.

Ted Hruzd

The link:

http://www.dailyrecord.com/article/20131219/NJOPINION02/312190004/Tax-code-preventing-effective-capitalism

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