GAO Launched an Obamacare Sting Operation—and Almost All Fake Insurance Applications Were Approved

Screen Shot 2014-02-03 at 11.20.18 AM
The report suggests the health care law’s eligibility verification system isn’t working.

By Sophie Novack
Follow on TwitterJuly 23, 2014

An undercover operation found that the majority of fake Obamacare applications submitted were approved by the health law’s enrollment system.

Fake applicants were able to get subsidized insurance coverage in 11 of 18 attempts, according to a report from the nonpartisan Government Accountability Office. The agency conducted the sting operation to test the strength of the Affordable Care Act’s eligibility-verification system.

The findings will be discussed at a House Ways and Means hearing Wednesday. They were revealed in an advance copy of the testimony from Seto Bagdoyan, head of GAO’s Forensic Audits and Investigative Service, provided to the Associated Press.

The undercover investigators created fake identities by inventing Social Security numbers, income, and citizenship, and by counterfeiting documents.

Eleven of 12 fake online or telephone applications were approved, according to Bagdoyan. Five of six phone applications were successful, with the exception of one caller who declined to give a Social Security number. Six online applications were initially blocked by the verification system, but the investigators were able to find a workaround by going through the call center.

“The total amount of these credits for the 11 approved applications is about $2,500 monthly or about $30,000 annually,” Bagdoyan said, according to a report from NBC. “We also obtained cost-sharing reduction subsidies, according to marketplace representatives, in at least nine of the 11 cases.”

The investigators did not have the same luck with in-person assistors: They were unable to get help in five of six cases, and the last was told by the assistor that the income reported was too high for subsidized coverage.

The accuracy of the health law’s eligibility verification system has been an ongoing concern among lawmakers and officials, and Republicans have repeatedly pointed to it as evidence that the law leaves the government vulnerable to fraud.

The GAO investigation was requested by several Republican senators and representatives before the insurance exchanges launched in the fall, according to The Washington Post.

The administration, meanwhile, maintains that it is working to improve the process.

“We are examining this report carefully and will work with GAO to identify additional strategies to strengthen our verification processes,” said administration spokesman Aaron Albright.

THE ROT WITHIN, PART I: OUR PONZI ECONOMY

Dependent on inflating bubbles to evince “economic strength”

Screen Shot 2014-07-22 at 6.46.36 PM
Screen Shot 2014-07-22 at 6.46.48 PM
Screen Shot 2014-07-22 at 6.47.09 PM
Screen Shot 2014-07-22 at 6.47.22 PM
Screen Shot 2014-07-22 at 6.47.44 PM

by CHARLES HUGH-SMITH |ZERO HEDGE | JULY 22, 2014

Depending on blowing the next bubble to temporarily prop up the economy is the height of foolhardy shortsightedness.

All the conventional policy fixes proposed by Demopublican politicos, technocrats and the vast army of academic/think-tank apparatchiks are the equivalent of slapping a coat of paint on a fragile facade riddled with dryrot. All these fake-fixes share a few key characteristics:

1. They focus on effects and symptoms rather than address the underlying causes, i.e. the dryrot at the heart of our government, society and economy.

2. They maintain and protect the Status Quo Powers That Be–no vested interests, protected fiefdoms or Financial Elites ever lose power as a result of these policy tweaks.

3. They are politically expedient, meaning they assuage the demands of vested interests rather than tackle the rot undermining the nation.

4. They ignore the perverse incentives built into current systems and the incentives of complicity, i.e. to cheer another coat of paint on the dryrot rather than face the costs of real reform.

The financial underpinnings of the economy and society are rotting from within:finance, higher education, defense, healthcare, law, governance, you name it.

This week I want to highlight a few key causes of this pervasive and eventually fatal systemic rot.

Let’s start with Our Ponzi Economy. There are three primary examples of our Ponzi Economy: pay-as-you-go social programs (Social Security, Medicare, Medicaid, etc.); housing and the stock market. All are examples of financial Ponzi schemes.

All Ponzi schemes rely on an ever-expanding pool of greater fools who buy into the scheme and pay the interest/gains due the previous pool of greater fools. Ponzi schemes fail because the pool of greater fools is finite, but the scheme demands an ever-expanding pool of participants to function.

All Ponzi schemes eventually fail, though each is declared financially soundbecause this time it’s different. The number of greater fools required to keep the scheme going eventually exceeds the working population of the nation.

Here’s why Pay-As-You-Go Social Programs are all Ponzi schemes:

1 retiree consumes the taxes paid by 5 workers.

Those 5 workers when they retire consume the taxes paid by 25 workers.

Those 25 workers when they retire consume the taxes paid by 125 workers.

Those 125 workers when they retire consume the taxes paid by 625 workers.

Those 625 workers when they retire consume the taxes paid by 3,125 workers.

You see where this goes: very quickly, the number of workers required to keep the Ponzi scheme afloat exceeds the entire workforce.

The only way to keep the Ponzi scheme going is to keep raising payroll taxes on the remaining workers, which is precisely what welfare states (i.e. every developed economy on the planet) has done.

But raising taxes merely extends the Ponzi scheme one cycle. Eventually, taxes are so high that the remaining workers are impoverished. Right now, the U.S. has reached a ratio of 2 full-time workers for every retiree. As the number of retirees rises by thousands every day and the number of full-time jobs stagnates, the ratio will slide toward 1-to-1:

The Problem with Pay-As-You-Go Social Programs: They’re Ponzi Schemes (November 5, 2013)

Estimates are even worse in other developed nations. In Europe, the ratio of retirees over 65 to those between 20 and 64 will soon reach 50%–and that’s of the population, not of people with full-time jobs paying taxes to fund social welfare programs. (source: Foreign Affairs, July/August 2014, page 130)

As the percentage of the working-age populace with full-time jobs declines, the worker-retiree ratio will become increasingly unsustainable. The taxes paid by each worker are nowhere enough to fund the generous pension and healthcare benefits promised to every retiree.

In the U.S., the number of people of working age who are jobless is 92 million; the number of full-time jobs is 118 million. This chart of labor participation includes almost 30 million part-time employees who don’t earn enough to pay substantial taxes and millions of self-employed people making poverty-level net incomes.

Courtesy of STA Wealth Management, here is a chart that shows full-time workers are less than half the labor force:

Housing is also a classic Ponzi scheme: prices can only go up if there is an ever-expanding pool of greater fools willing and able to pay even more for a house than the previous pool of greater fools.

As I have explained many times, the only way the Status Quo has been able to expand the pool of greater fools is to lower interest rates to near-zero, drop down payments to 3% and loosen previously-prudent lending standards.

The Housing “Recovery” in Four Charts (May 27, 2014)

These tricks extend the Ponzi for a cycle by artifically expanding the pool of greater fools, but that pool is not infinite. (Foreign buyers are currently enlarging the pool, but their participation is dependent on the Ponzi schemes in their home economies not blowing up.)

The stock market has been made the official metric of the nation’s economic health; too bad it’s a Ponzi scheme. Financial bubbles are what economist Robert Shiller calls “naturally occurring Ponzis” because the psychology of ever-rising prices and profits fuels an inflow of greater fools that sustains the bubble until all available greater fools have sunk their cash and credit into the bubble.

Here is what a market that is increasingly dominated by Ponzi bubbles looks like: this is the S&P 500 (SPX):

(source: Gordon T. Long, Macro Analytics)

Depending on blowing the next bubble to temporarily prop up the economy is the height of foolhardy shortsightedness. Yet that’s our Status Quo, increasingly dependent on inflating bubbles to evince “economic strength” when the Ponzi paint will soon peel off the rotten wood of the real economy.

Federal Tax Revenues Set Record Through June; Feds Still Running $385.8B Deficit

Screen Shot 2014-07-14 at 6.13.40 PM

By Terence P. Jeffrey

(CNSNews.com) – Federal tax revenues continue to run at a record pace (in inflation-adjusted dollars) in fiscal 2014, as the federal government’s total receipts for the fiscal year closed June at an unprecedented $2,258,565,000,000 according to the Monthly Treasury Statement.

With $323.646 billion in revenue coming into federal coffers in June alone, the federal government spent $253.127 billion, and ran a surplus for the month of $70.519 billion.

However, despite this one-month surplus, the government has still run a cumulative deficit of $385.855 billion in the first nine months of fiscal 2014. (The federal fiscal year began on Oct. 1, 2013 and will end on Sept. 30, 2014.)

Record tax revenues through June 2014
In fiscal 2013, the federal government also ran a one-month surplus in June (amounting to $75.114 billion). However, it ended fiscal 2013 with a full-year deficit of $680.221 billion.

The White House Office of Management and Budget has estimated that in the full fiscal 2014, the federal government will collect $3.001721 trillion in taxes and spend $3.650526 trillion, while running a deficit of $648.805 billion.

The OMB has also estimated that, while running that deficit, the federal government will collect a record amount in inflation-adjusted tax revenues.

When adjusted for inflation (to constant 2014 dollars), the second-greatest federal tax haul through June was in fiscal 2007. By the end of June that year, the federal government had taken in approximately$2.232 trillion in total receipts in constant 2014 dollars.

The single largest source for the federal government’s record tax receipts in the first nine months of FY 2014 was the individual income tax, which brought the Treasury approximately $1.0458 trillion.

The second largest source was what the Treasury calls “Social Insurance and Retirement Receipts,” which includes the Social Security payroll tax, the unemployment insurance tax and other retirement taxes. This accounted for $784.479 billion in tax revenue.

The third largest source of federal revenue in the first eight months of fiscal 2014 was the corporation income tax, which brought in $235.018 billion.

As CNSNews.com has previously reported, federal tax revenues for fiscal 2014 set records through February, through March, through Tax Day, through April, and through May.

Democrat Blasts An Elephant Pinata With Shotgun In Political Ad

Capture

Brian Anderson, July 13, 2014

Estakio Beltran is a democrat running for office in Washington state’s 4th Congressional district. He is considered a long shot in the highly-conservative area so he decided to set himself apart from the pack with a unique political ad in which he blows the hell out of an elephant shaped piñata with a shotgun. Get it? The elephant is the symbol of the Republican party, so he plans to kill off the GOP or something.

Now, if you are trying to appeal to Latinos, piñatas, violence, and GOP hatred are all proven vote getters. However, attempting to sway conservative voters this way…not so much.

Unfortunately Beltran removed his ad from YouTube because he’s not only insane but also a chickensh*t so we’ll have to let The Seattle Times describe it for us:

The video opens with the blue-jeans wearing Beltran posing with hands on hips alongside an arid landscape by a country road. “They call me a long shot. They say I can’t win in this district,” Beltran says. “But what happens to an elephant when it stands around, doing nothing, for too long?”

The camera pans to an elephant pinata, and then back to Beltran, who shoulders a pump-action shotgun and blasts the Republican Party symbol in the rear. “My name is Estakio Beltran,” the candidate says, racking the shotgun. “And I approved this message.”

Beltran then rides off on a burro toward a sign pointing toward the U.S. Capitol.

Nice, huh? Can you imagine if a Republican candidate did an ad where he/she shotgunned a stuffed donkey? The liberals would have a freak-out on par with their hysterical reaction to the Hobby Lobby Supreme Court decision.

In this fictional Republican ad, however, when the donkey piñata was busted open, food stamps, welfare checks, and social security cards for illegal aliens would fall out. After all, those are the treats democrats give out to entice support.

I’m actually surprised the liberals aren’t freaking out on this ad as they tend to take imagery and metaphors way too literally. First, the democrats areEBT
the antigun/anti-violence party so the shotgun and subsequent firing of it should have them demanding; Not one more piñata should die from gun violence.

Then, where the hell is PETA on this? Beltran shoots an innocent elephant. As you may know, big game hunting is no laughing matter on the left. The Obama administration just outlawed the trading of antique ivory, which will destroy the collectables market for antique guns, musical instruments, and just about anything containing ivory that was made well before elephant hunting was banned.

There is one image in this ad that I think is entirely appropriate. When Beltran rides a donkey towards the Capitol Building, he’s saying, “Send another jackass to Washington.”

No thanks, we have too many already.

Mother of officer killed by illegal immigrant writes Obama

Capture

MESA, AZ (CBS5) -
The mother of a fallen Mesa police sergeant is writing President Barack Obama in hopes of changing immigration laws in the U.S.

Police said Mary Ann Mendoza’s son, Sgt. Brandon Mendoza, was hit head-on by a driver who had been living in the country illegally for two decades.

Officials said for much of that time Raul Silva-Corona was wanted for charges including burglary, assault and leaving the scene of an accident. When he was finally captured in 2002, he took a plea deal and was allowed to stay in the United States. That’s something Mendoza believes needs to change.

“There are just a lot of issues that have welled up inside of me and are festering now that I’ve had time to think clearly,” said Mary Ann Mendoza.

At the forefront of her concerns are the president’s policies on immigration.

“The people who are coming here looking for jobs and who are wanting to make a difference in their life, I support them. I mean that’s what this country is made of. But when you start breaking the law there is no reason for those people to be here,” said Mary Ann Mendoza.

Another issue Mendoza wants addressed has to do with driving.

“I don’t think anyone who doesn’t have a social security number and is here illegally who cannot obtain a driver’s license should be allowed to register a vehicle anywhere in the United States and be able to drive it,” said Mendoza.

Mendoza told CBS 5 News she’s hopeful she will get a response from President Barack Obama.

Here is Mendoza’s letter:

“President Obama,

“I am writing this letter to you regarding illegal immigrants.

“As a tax paying, law abiding citizen of the United States, I WANT my voice heard on this issue. My son, Sergeant Brandon Mendoza, an officer who was with the City of Mesa, Arizona police department, was killed in a tragic head on collision on May 12, 2014 by a wrong way driver on our freeways. This man happened to be an illegal immigrant, was in this country illegally, convicted of previous crimes, no Social Security number, no valid driver’s license BUT he had purchased a vehicle and registered it to drive in Maricopa County Arizona.

“I had my son’s life STOLEN from me by a man who didn’t value his life, was 3X the legal limit drunk, was high on Meth, drove for over 35 miles THE WRONG WAY on 4 different freeways and had NO BUSINESS BEING IN THIS COUNTRY!!!

“The Federal Government knew he, Raul Silva Corona , was an illegal immigrant when he was convicted on crimes in 1994 in Colorado. The prosecutors were “lenient” on him and several charges were dismissed. When he was convicted of these crimes and 1994 and the government knew he was in the country illegally, why wasn’t he deported? Why are any of these illegal criminals in this country ??

“I am furious that the Federal Government allowed this criminal to stay in this country and KILL my son! I have attached several articles for you to PERSONALLY read about my son. He was an Icon with the City of Mesa Police Department. He was instrumental in making life better for people of all walks of life in the park project he took on. He was humble, selfless, worked many hours off the clock helping disadvantaged children and often used his own money to do things for the community, including “adopting” children at Christmas to provide them with gifts….out of his own money!!

“I have attached numerous articles for you to read about my son. This was not a life that should have been taken so early. The good he was doing in our community is remarkable, the difference he made in people’s lives is amazing and the comfort he brought people in friendship was unmeasurable.

“All you have to do is Google ” Sgt/Officer Brandon Mendoza” and you will have plenty of reading material about my wonderful son who had just passed his Sergeant’s exam to become a Sgt. The Chief of Police posthumously promoted him during the week of his funeral but that highlight of his life was stolen from him!!! He was officer of the year last year. Officer of the quarter for the first quarter of 2014. He was only 32 years old and had done more in his life than most of us have done in a lifetime!

“I am going to have my voice heard and I want to you to know what my personal feeling is on whether CRIMINAL ILLEGAL IMMIGRANTS should be allowed in this country. I have been DIRECTLY affected by this. I am sure if your life had been affected like mine has been, you would have a different view of this situation. I have lived in Arizona most of my life. My son, Brandon Mendoza, was half Hispanic. It’s not the color of skin that my son or I see, it’s the person and how they conduct their lives. If you can’t enter this country legally then you shouldn’t be here. If you commit crimes, you should pay the time any of us as US Citizens would have to serve. Letting these illegal criminals out of our jails before their time is served and turning them loose on the streets to commit further crimes and KILL our loved ones is NOT ACCEPTABLE TO ME!! AND it shouldn’t be acceptable to any US Citizen. Mr. President, you don’t have the right to make this decision yourself……I have a say, even if it is for one moment. Maybe that one moment will light a spark with another citizen who can then light a candle, who can then light a bonfire, who can then light a city up and so on. My light has just been lit and I am not going to back down when so many of these illegal immigrants have more rights than we do. My son’s death will not be ignored as another statistic.

“I want laws to change that would not allow illegal immigrants to purchase vehicles in our country and register them to drive them in our states WITHOUT having driver’s licenses to drive them legally. How is this happening??? I want laws changed that will force the removal of illegal immigrants who break our laws. This man, this repeated law breaker, was allowed to be released and he continued breaking the laws in our country until what???? UNTIL HE WAS STOPPED BY MY SON IN A HEAD ON COLLISION THAT NEVER SHOULD HAVE HAPPENED!!!! HE KILLED AN OFFICER OF THE LAW AS HIS LAST ACT!!! When are you going to see the flip side to this issue? When will you realize the hurt and pain and destruction these illegal immigrants who break the law will continue to cause???? Until you live in a state that deals with this on a daily basis, you will not understand it.

“I want answers that make sense. I want answers from you personally as to why this criminal was allowed to stay in our country until he took my son’s life.

“Sincerely,

“Mary Ann Mendoza”

This Chart Shows How Many Obamacare Enrollees’ Self-Repor​ted Citizenshi​p Status Doesn’t Match Federal Data

Capture

John Fleming / @john_w_fleming / July 08, 2014 /


According to a report released by the Office of Inspector General at the Department of Health and Human Services earlier this month, “the online federal marketplace could not resolve nearly 90 percent (or 2.6 million) of its 2.9 million data ‘inconsistencies,’ which include citizenship status, income, incarceration status, and Social Security numbers,” as Marguerite Bowling reported last week for The Daily Signal. This chart breaks down those numbers.




John Fleming is the senior data graphics editor at The Heritage Foundation.

CMS Unable to Resolve Nearly 2.89 Million Obamacare Application Inconsistencies

CMS Unable to Resolve Nearly 2.89 Million Obamacare Application Inconsistencies

Audit: Government resolved less than one percent of ‘inconsistencies’ in applications

BY: Elizabeth Harrington
July 1, 2014 1:20 pm

The federal Obamacare marketplace was unable to verify nearly 3 million irregularities in the applications for enrollment, according to a new audit by the Health and Human Services (HHS) Office of the Inspector General (OIG).

The audit, released Tuesday, found that the Centers for Medicare and Medicaid Services (CMS) resolved less than one percent of so-called “inconsistencies” related to the citizenship and residency status of Obamacare sign ups.

“The Federal marketplace was not able to resolve inconsistencies related to: citizenship, status as a national, lawful presence, residency, family size, annual household income, and whether the applicant was eligible for minimum essential coverage through employer-sponsored insurance,” the audit said.

“According to CMS officials, as of Feb. 23, 2014, the Federal marketplace had resolved approximately 10,000 of the 2.9 million inconsistencies (less than 1 percent),” the audit said.

President Barack Obama touted the exchanges for signing up 8 million people, though only 67 percent had paid their premiums as of April. The latest audit raises additional questions on how many enrollees were eligible.

The OIG examined Healthcare.gov, Covered California, and Access Health CT, the Connecticut exchange. It found all three were ineffective in verifying applicants’ information needed to ensure their eligibility to enroll in a health insurance plan.

“The deficiencies in internal controls that we identified may have limited the marketplaces’ ability to prevent the use of inaccurate or fraudulent information when determining eligibility of applicants for enrollment in [qualified health plans] QHPs,” the audit said.

For example, Healthcare.gov was not effective at validating Social Security numbers (SSN), California was unable to verify citizenship, and Connecticut could not confirm proof of identity of applicants over the phone.

The audit reviewed a random sample of 45 applicants in each marketplace who had been determined eligible. An individual can only enroll if they are a U.S. citizen, have legal status, and are not incarcerated.

There were 7 out of 45 cases where California did not verify citizenship, and one case out of 44 where Healthcare.gov did not validate an SSN. One application left the SSN blank for the federal exchange.

“The Federal marketplace did not always validate applicants’ Social Security numbers through [the Social Security Administration],” the audit said. “Without validating an applicant’s Social Security number, a marketplace cannot ensure that the applicant meets eligibility requirements for enrollment in a QHP.”

Covered California did not verify citizenship information through the Department of Homeland Security when the Social Security Administration (SSA) system “indicated that the applicant was not a U.S. citizen.” In other cases, “SSA information was unavailable because of Data Hub outages or the SSA system was offline.”

In addition, 30 out of 45 applicants had conflicting application and eligibility data, and California did not resolve inconsistencies in 19 cases.

All three exchanges were able to verify whether applicants were in prison or not.

The report also identified “other issues” with the federal and state exchanges, including simply taking an applicants’ word for their identity and residency status.

“Residency was verified by the federal, California, and Connecticut marketplaces only by accepting applicants’ attestation of residency,” the audit said.

“Identity proofing of applicants was performed by the California marketplace only by accepting applicants’ electronic signatures or verbal attestations,” it added.

The government does not require any “further verification” other than the applicants’ attestation of residency.

“In written comments on our draft report, CMS stated that it did not believe that the marketplaces’ verification of residency by accepting applicants’ attestations needed to be a noted issue,” the OIG said. “CMS stated that the marketplaces followed Federal requirements and there were not comprehensive, national electronic data sources for residency verification available to the federal marketplace.”

The report was mandated by the continuing resolution Congress passed to resolve the government shutdown last fall, which asked the OIG to report on what safeguards the exchanges have to prevent fraud.

CMS agreed with the OIG’s recommendations to address inconsistencies.

“This report confirms what many of us already knew—that despite repeated reassurances from this administration, the systems were not in place to determine income eligibility for Obamacare subsidies when this law was implemented,” said Rep. Diane Black (R., Tenn.). “This outrageous mismanagement of taxpayer dollars will likely lead to billions of dollars in waste and abuse, all because this administration moved forward with implementation despite repeated warnings that the systems were not ready.”

Federal Tax Revenues Set Record Through May; Feds Still Running $436B Deficit

Federal Tax Revenues Set Record Through May; Feds Still Running $436B Deficit

By Terence P. Jeffrey

(CNSNews.com) – Federal tax revenues continue to run at a record pace (in inflation-adjusted dollars) in fiscal 2014, as the federal government’s total receipts for the fiscal year closed May at an unprecedented $1,934,919,000,000, according to the Monthly Treasury Statement.

Despite record revenue, the federal government still ran a deficit of $436.382 billion in the first eight months of the fiscal year, which began on Oct. 1, 2013 and will end on Sept. 30, 2014.

In the month of May alone, the federal government ran a deficit of $129.971 billion–bringing in $199.889 billion in revenue while spending $329.860 billion.

The White House Office of Management and Budget has estimated that in the full fiscal 2014, the federal government will collect $3.001721 trillion in taxes, spend $3.650526 trillion, running a deficit of $648.805 billion.

Record Federal Tax Revenues Through May FY 2014
The OMB has also estimated that, while running that deficit, the federal government will collect a record amount in inflation-adjusted tax revenues.

When adjusted for inflation (to constant 2014 dollars), the second-greatest federal tax haul through May was in fiscal 2007. By the end of May that year, the federal government took in approximately 1.908 trillion in total receipts in constant 2014 dollars.

The single largest source for the federal government’s record tax receipts in the first eight months of FY 2014 was the individual income tax, which brought the Treasury $903.024 trillion. The second largest source was what the Treasury calls “Social Insurance and Retirement Receipts,” which includes the Social Security payroll tax, the unemployment insurance tax and other retirement taxes. This accounted for $694.268 billion in tax revenue.

The third largest source of federal revenue in the first eight months of fiscal 2014 was the corporation income tax, which brought in $164.840 billion.

The Reason Why There Will Be a Second American Civil War

The Reason Why There Will Be a Second American Civil War

Anyone knows, who has half of an eye open, that American citizens are soon to become an endangered species under our present lunatic President.

Everyone should know that all of our constitutional protections against an out-of-control globalist puppet regime are melting away right before our very eyes.

Everyone knows that Obama, under the NDAA, has the legal authority to “disappear” all political opponents without so much as a trace.

Everyone knows that American economy was driven over the fiscal cliff in 2008 when Congress permitted the bankers to plunder our tax revenues and, today, we are just waiting for the official eulogy that the American economy is dead and the real “hunger games” are about to commence.

Everyone knows that when the Obama puppet masters in the Federal Reserve are done plundering what is left of our pensions, our social security, our private property and our 401k’s, that the economy will be collapsed once and for all. And then, what will the American people do? They will do what any generation of Americans would do, they will take to the streets in an attempt to rid themselves of the corrupt banker controlled government which has ruined this country. Sadly, this last ditch desperate attempt at regaining our lost liberties will not have a happy ending.

Picture, if you will, the veterans groups marching on Washington DC. Imagine bus loads of citizens following the veterans groups which will demand an end to a tyrannical government. Obama will make a formal declaration of martial law. Americans, desperate for food, water and the means to make a living will seek open confrontations with the present administration and this will commence the darkest days in American, and perhaps, even world history. As an aside, this is why Operation American Spring is a bad idea.

Will American Troops Carry Out Genocidal Orders?

Will American troops follow the genocidal orders surely to be delivered by Obama? Will they begin to secretly arrest perceived dissidents? Will the military follow orders to shoot to kill American citizens who will be desperately looking for their next meal? With FEMA’s performance following Hurricanes Katrina and Sandy, will there even be a next meal? Don’t hold your breath.

When the irresistible force meets the immovable object, what will happen? Will American troops fire, when ordered, upon their American brothers and sisters? There are two possible answers to this question. First, it is a known fact that the military is programmed in boot camp to follow orders like a bunch of Pavlovian conditioned dogs who are well trained in the art of unquestionably carrying out the orders of their superiors without hesitation. From a military training perspective, there can be little doubt that American soldiers will not only fire upon American protesters, but most will do so without the slightest amount of hesitation or conscience. However, the field of psychology provides an even more accurate view of why we can expect the American military to do in the coming desperate times.

Not only will our military fire upon us, their fellow citizens, but they will also willingly participate in the round up of dissidents, and the extermination of these dissidents in what has become known FEMA Camps, which will surely accompany the coming martial law. NORTHCOM has been training for this since the 1990′s.

Before I address the psychological reasons on why the coming American genocide is almost upon us and it will receive the enthusiastic support from active duty military personnel, let’s examine the fiction set forth by a group known as Oath Keepers.

Some our citizens are deluded into a false sense of security by the group known as Oath Keepers. It is a well-intentioned effort to remind both law enforcement and the military to uphold the Constitution and to disobey unlawful orders which would bring harm to American citizens. Under the this false sense of security, many in the American public really believe that American troops will not fire upon American citizens. Unfortunately, the field of psychology demonstrates why only a minority of soldiers will actually resist committing atrocities against the American people.

Group Think

The world of psychological research provides the definitive answer to whether we should fear our military in the coming storm ahead in the form of a phenomenon called group think. Group think is often described as a decision-making process whereby the group members go along with what they believe is the consensus. Group think has also been used to describe individual acquiescence to authority even when the authority has limited power to enforce compliance. Group think often causes groups to make hasty, irrational decisions, where individual doubts are set aside, for fear of upsetting the group’s leadership and balance.

Just how far will people go to please authority figures and subsequently do what they know to be immoral? The first known laboratory test for groupthink occurred in 1963 by Yale professor, Stanley Milgram. Subjects for this landmark study were recruited for the Yale study through newspaper ads and direct mail. The participants were men between the ages of 20 and 50, from all educational backgrounds, ranging from an elementary school dropout to participants with doctoral degrees.

Milgram wanted to determine what percentage of people would willingly administer enough progressive electric shocks which would result in death simply based on the orders of a perceived authority figure (i.e., the experimenter).

There were three participants in the experiment:

1. The Teacher was the real subject in the experiment. Their role was to administer shocks for each wrong answer provided by the learner. How far would they go, was the true subject of the experiment. Would they actually kill a person for failing to provide the correct answer on a word pair test? Would they mindlessly follow the orders of the experimenter to continue with the abuse, regardless of the results and obvious harm being perpetrated upon the pretend victim in the experiment?

2. The second participant, the Learner, was actually a plant in the experiment. The Learner would sit in an adjacent room and pretend to be shocked for each wrong answer that they would purposely give. Eventually, they would cry out for help and beg the Teacher to stop administering the electric shocks. Their cries included pleas of mercy that were often based on an unknown level of self-expressed cardiac distress that they were pretending to experience.

3. The Experimenter was a stern looking fellow who carried a clipboard, wore a lab coat, and would urge the Teacher to continue regardless of the make believe pleas of the Learner.

The “Teachers” were told by the experimenter that they would be participating in an experiment to test the effects of punishment on learning. However, as has already been stated, this was not the goal of the experiment.

The “Teacher” was given a list of word pairs which was used to teach the Learner. The Learner was actually a confederate, or a plant, in the experiment. The Teacher would then read the first word of each pair and read four possible answers. The Learner would deliberately press the wrong button to indicate his response. Since the answer was incorrect, the Learner would receive an electric shock, with the voltage progressively increasing with each wrong answer. Therefore, the
subjects believed that for each wrong answer, the Learner was receiving an ever increasing level of actual shocks which would eventually result in death.

In reality, there were no shocks. After the confederate (i.e., Learner) was separated from the subject, the confederate set up a tape recorder integrated with the electro-shock generator, which played pre-recorded sounds of pain and distress for each successive level of shock. After a number of voltage level increases, the Learner would bang on the wall which divided him from the subject (teacher). After several instances of banging on the wall and complaining about his heart condition, the learner provided no further responses to questions and no further complaints. The fate of the Learner was left to the imagination of the teacher. The silence was met with the command to continue with the experiment. Although the Learner was not being harmed, the Teacher believed that they were administering progressively dangerous shocks. From the instrumentation panel, the Teacher could clearly see that their shocks were approaching the level of lethality. Was the Teacher being forced to capitulate and continue with the experiment? Quite the contrary was true, the prompts to continue administering shock were encouraged by minimal prompts and absolutely no threats were offered by the Experimenter.

If at any time the subject hesitated or expressed a desire to discontinue the experiment, the subject was given a planned and verbatim succession of verbal prompts by the experimenter:

1. “Please continue.”

2. “The experiment requires that you continue.”

3. “It is absolutely essential that you continue. ”

4. “You have no other choice, you must go on.”

If the Teacher still wished to stop after having listened to four successive verbal prompts, the experiment was discontinued. Otherwise, the experiment was terminated after the subject had administered the lethal 450-volt shock three times in succession.

Milgram expected that less than one percent would actually administer a fatal electric shock. The actual results were so stunning that he decided to film the results on the final day, fearing that nobody would believe his results. And what were the results? Despite expressing some measure of discomfort and the minimal use pressure, in Milgram’s first set of experiments, 65% (26 out of 40) of the subjects administered the experiment’s final and hypothetically fatal 450-volt shock. Amazingly, no participant steadfastly refused to give further shocks before the 300-volt level!

Milgram’s results were confirmed when Dr. Thomas Blass performed a meta-analysis on the results of repeated performances of the experiment. Blass found that the percentage of participants who were willing to administer fatal voltages remains remarkably constant, between 61% and 66%.

The results of Milgram’s and Blass’ work are stunning in their final conclusion which demonstrated that almost two-thirds of all Americans will mindlessly follow the commands of a “perceived” authority figure even when the authority figure has no real power over the people. Is this why our military continues to serve a despot who does not hesitate to throw away their lives or anyone else under his charge such as Ambassador Stevens?

To achieve political success, every authoritarian regime requires a high level of voluntary cooperation (i.e., group think) from its citizenry. Cooperation can be coerced as many times, in dictatorial regimes, cooperation is obtained as a result of extreme intimidation by carrying out a relatively small number of exceptionally harsh punishments in order to serve as a warning to the masses. However, there are not enough police, inspectors, auditors, etc. to control a populace in which the majority would fail to comply with the status quo. Then why do we continue to follow leaders who have abandoned the Constitution and the welfare of our people long ago? Is America a prisoner to the group think phenomena? What about gross ignorance as a contributor to America’s capitulation to such bad leadership? Can anything be done? Now that we have had the confirmation of FEMA Camps, are you concerned about the propensity for the American people to follow directions right to the planned extermination of Americans as planned by the globalists?

Conclusion

I wholeheartedly support and applaud the efforts of the Oath Keepers and for some military personnel, Oath Keepers will make some difference, and thank God, because they are one of our last lines of defense. However, when one considers the conditioned response training of the military and the propensity for even nonmilitary personnel to blindly follow orders, through the process of group think, I think Oath Keepers may only be able to exert a minimal effect on the overall outcome as it pertains to the American troops committing genocide against the American people. In addition to the brainwashing of boot camp, our soldiers are getting years of indoctrination with regard to the killing of civilians in Iraq and Afghanistan. They are getting years of practice, through multiple tours of duty, on how to confiscate guns and how to conduct civilian roundups. When the troops begin to be withdrawn from Afghanistan, the American people should become very worried.

The number of troops which will not obey the heinous order can fixed at between 35-40% based upon the work of Blass and Milgram. If you are a member of the military and reading these words, you may no doubt become angry that about two-thirds of the military will not stand down. Although it is true that you may not obey an unlawful order to fire upon American citizens, the soldier on your left and the one are your right will obey that order.

There is an unspoken message, heretofore, in this post. No military can operate with a dissension rate of 35-40%. This kind of widespread dissension can only spell one outcome, civil war!

This report has been contributed by Dave Hodges of The Common Sense Show.
– See more at: http://viralsurvival.com/2014/05/03/the-reason-why-there-will-be-a-second-american-civil-war/#sthash.vJgiSxZc.dpuf

NEW FEDERAL DATABASE WILL TRACK AMERICANS’ CREDIT RATINGS, OTHER FINANCIAL INFORMATION

NEW FEDERAL DATABASE WILL TRACK AMERICANS’ CREDIT RATINGS, OTHER FINANCIAL INFORMATION

Critics question the need for such a “vast database” for simple reporting purposes

BY RICHARD POLLOCK | MAY 30, 2014 | 6:00 AM

Photo – As many as 227 million Americans may be compelled to disclose intimate details of their families and financial lives — including their Social Security numbers — in a new national database being assembled by two federal agencies.
As many as 227 million Americans may be compelled to disclose intimate details of their families…
As many as 227 million Americans may be compelled to disclose intimate details of their families and financial lives — including their Social Security numbers — in a new national database being assembled by two federal agencies.

The Federal Housing Finance Agency and the Consumer Financial Protection Bureau posted an April 16 Federal Register notice of an expansion of their joint National Mortgage Database Program to include personally identifiable information that reveals actual users, a reversal of previously stated policy.

FHFA will manage the database and share it with CFPB. A CFPB internal planning document for 2013-17 describes the bureau as monitoring 95 percent of all mortgage transactions.

FHFA officials claim the database is essential to conducting a monthly mortgage survey required by the Housing and Economic Recovery Act of 2008 and to help it prepare an annual report for Congress.

Critics, however, question the need for such a “vast database” for simple reporting purposes.

In a May 15 letter to FHFA Director Mel Watt and CFPB Director Richard Cordray, Rep. Jeb Hensarling, R-Texas, and Sen. Mike Crapo, R-Idaho, charged, “this expansion represents an unwarranted intrusion into the private lives of ordinary Americans.”

Crapo is the ranking Republican on the Senate Banking, Housing and Urban Affairs Committee. Hensarling is chairman of the House Financial Services Committee.

Critics also warn the new database will be vulnerable to cyber attacks that could put private information about millions of consumers at risk. They also question the agency’s authority to collect such information.

Earlier this year, Cordray tried to assuage concerned lawmakers during a Jan. 28 hearing of Hensarling’s panel, saying repeatedly the database will only contain “aggregate” information with no personal identifiers.

But under the April register notice, the database expansion means it will include a host of data points, including a mortgage owner’s name, address, Social Security number, all credit card and other loan information and account balances.

The database will also encompass a mortgage holder’s entire credit history, including delinquent payments, late payments, minimum payments, high account balances and credit scores, according to the notice.

The two agencies will also assemble “household demographic data,” including racial and ethnic data, gender, marital status, religion, education, employment history, military status, household composition, the number of wage earners and a family’s total wealth and assets.

Only 12 public comments were submitted during the 30-day comment period following the notice’s April 16 publication.

The mortgage database is unprecedented and would collect personal mortgage information on every single-family residential first lien loan issued since 1998. Federal officials will continue updating the database into the indefinite future.

The database held information on at least 10.1 million mortgage owners, according to a July 31, 2013, FHFA and CFPB presentation at an international conference on collateral risk.

FHFA has two contracts with CoreLogic, which boasts that it has “access to industry’s largest most comprehensive active and historical mortgage databases of over 227 million loans.”

Cordray confirmed in his January testimony that CoreLogic had been retained for the national mortgage database.

The credit giant Experian is also involved in the mortgage database project, according to an FHFA official who requested anonymity.

Rep. Randy Neugebauer, R-Texas, who sits on the Hensarling panel and who has followed the mortgage database’s development, said he was “deeply concerned” about the expansion.

“When you look at the kinds of data that are going to be collected on individuals, just about anything about you is going to be in this database,” he told the Examiner in an interview.

Critics of the database span the financial spectrum, including the U.S. Chamber of Commerce’s Center for Capital Markets Competitiveness and the National Association of Federal Credit Unions.

In a May 16 letter to FHFA, NAFCU’s regulatory affairs counsel, Angela Meyster, said the database “harbors significant privacy concerns” and “NAFCU believes greater transparency should be provided by the FHFA and CFPB on what this information is being used for.”

Meyster told the Examiner that “it goes back to the breadth of information that they’re asking for without really speaking to what they will be used for.”

Meyster said she was unconvinced. “It seems they’re just adding information and they’re not really stating where it’s going or what it’s going to be used for. There’s no straightaway answer. They say they are trying to assemble as much information that they can.”

Neugebauer agreed. “Why are we collecting this amount of data on this many individuals?” he asked in the interview.

The Chamber of Commerce said that while Congress did ask for regular reports, it never granted FHFA the authority to create the National Mortgage Database.

“Congress did not explicitly require (or even explicitly authorize) the FHFA to build anything resembling the NMD,” the Chamber told Watt in its May 16 letter.

Cordray in his testimony told the House, “We’re making every effort to be very careful” but he could not promise there would never be a data breach.

Neugebauer said the hacker threat is real. “If someone were to breach that system, they could very easily steal somebody’s identity.”

Meyster said she doubts the government can protect the data. “We’re essentially concerned that these government systems don’t have the necessary precautions to make sure that individual consumers are identified through the database,” she said.

Computerized theft of government and commercial data is a major concern for federal officials. Indictments were made public last week for five Chinese military members who allegedly hacked into the computer systems of six American corporations.

A December report from the Government Accountability Office on breaches containing personally identifiable information from federal databases shows unlawful data breaches have doubled, from 15,140 reported incidents in 2009 to 22,156 in 2012.

A May 1 White House report on cybersecurity of federal databases also recently warned, “if unchecked, big data could be a tool that substantially expands government power over citizens.”