We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are

Life, Liberty and the pursuit of Happiness.

That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed,

Thursday, May 27, 2010

A Roadmap for America's Future | The Budget Committee Republicans

Everyone who cares about the direction of this country and our children's future should view this site and pass the link on tho everyone they know....

A Roadmap for America's Future | The Budget Committee Republicans

Wednesday, May 26, 2010

America -- The Bell Tolls for Thee - Yahoo! Finance

Is socialism really dead? Is it too late for Paul Ryan's plan to bring us back from the abyss? November will be critical to the near term future of this country. The long term is set in stone, we will have a purging, one way or another and we will all be better for it once it happens. The only thing that we can influence right now is the level of pain the purge brings. Sooner is beter than later, stopping the excessive spending now will leave us with lessto purge later....

America -- The Bell Tolls for Thee - Yahoo! Finance

Aurora Sentinel Archives Opinion Columnists Green: Obama is a victim of Bush's failed promises

It is amazing what a lame duck President can do.....The Democrats took over control of both Houses in 2006, not 2008. OBAMA! can't stand the truth

Aurora Sentinel Archives Opinion Columnists Green: Obama is a victim of Bush's failed promises

Tuesday, May 25, 2010

Fact vs. Fiction on Today’s Economy

By David Galland, Managing Editor, The Casey Report

There is a lot of “noise” being tossed out by the politicos and their preferred pundits about how the U.S. economy is on the mend. Thus it is important to try and separate fact from fiction about where things really stand.

FICTION: Though sporadic, the U.S. economy will continue to improve.
FACT: The U.S. is headed for a currency crisis.

While having learned to cover their butts by adding some modest modifiers to their generally rosy forecasts, the administration’s shills (Geithner, Bernanke, Summers, et al.) are unified in telling us that the worst is over.

The fact is that the U.S., nay, the world, is headed for fiat currency crash. Let me push forward some evidence in support of that contention.

In this fiscal year, the U.S. government will run its second trillion-dollar-plus deficit. Concerned about the political heat going into the November elections, the Democrats have been making noise about cleaning up their sloppy spending.

A couple of months back, El Presidente of this banana republic intoned that his government… …[cannot] continue to spend as if deficits don’t have consequences… as if the hard-earned tax dollars of the American people can be treated like Monopoly money.

Which is to say, he acknowledged that the deficits have consequences. And what might those consequences be?

For starters, rising interest rates. Because in order to finance its hyperactive spending, the government will have to sell a lot of debt – and because all the developed nations find themselves in the same boat, they’ll have to manage those sales in an increasingly competitive environment.

Of course, higher interest rates put yet more pressure on the many businesses that rely on access to capital to sustain themselves. And higher rates crush borrowing for houses and other large-ticket items… which means, they crush the economy. Especially one perched on a foundation of debt.

Inflation is another consequence, because when the prospective debt buyers begin to stay home or, more likely, agree to show up but only for a more attractive yield, the Fed will increasingly be forced to monetize the debt. Leading to the demand for even higher yields. Once the monetization begins in earnest, and in plain sight, Obama’s high-speed spending train will find itself on very wiggly tracks, leading in relatively short order to a debt-fueled currency crash.

The point is that the only real hope for the country starts with deep cuts in government spending. Now, I am not talking about talking about cutting spending – you know, where you stand in front of a warmed-up audience and talk about spending cuts. But honest-to-goodness, real spending cuts.

Which brings me to Mars.

On April 15, the president gave a speech at Cape Canaveral where, ahead of time, it was advertised that he would announce serious cuts in the space program. That was the fiction spun out to the pundits.

Instead, when it came time to stand and deliver, Obama delivered a $6 billion boost in NASA’s budget, then offset the cancellation of a program that would once again send men to the moon by announcing a new program to land astronauts on Mars… and drop in on an asteroid as well.

Over the course of my days on this remarkable planet of ours, I have had the opportunity to get to know all manner of personality types. One of the most troubled have been the serial spenders… deluded individuals that simply can’t help but buy all that their hearts desire, no matter how much pain results from their debt-financed spending. That describes today’s political class.

Unless and until you start hearing the president making speeches about not going to Mars, followed by wishing legions of government employees the best of luck as they enter the private sector, the only conclusion to be drawn is that a space ship isn’t the only thing headed for outer space, but government debt as well.

The spending is unsustainable and so won’t be sustained.

FICTION: You can count on the mainstream financial media for unbiased information.
FACT: They’re lying to you.

It’s important to do your own due diligence and trust only your own calculations when confronted with cheery financial headlines.

A couple weeks ago, for instance, the Fed’s national industrial index was positively reported on as having continued to improve. By 0.1%. That’s an improvement of .001, or roughly the width of a whisker on a gnat. And even that vaporous improvement came on numbers that are still deep in the post-crash dumps.

But even if we use the Fed’s own numbers, we see that the month-over-month rate of improvements is losing steam, not gaining traction. This is an economy we can believe in?

That’s not to say that there aren’t some improvements in the economy. There clearly are. But I contend these improvements are largely selective.

For instance, the mining sector is doing quite well – and is now running at a capacity utilization rate of 90%, versus the broader manufacturing sector, which is bumping along at just 70%. Crude oil production is also running hot, at a capacity utilization of 87.4% in March, versus finished goods at an anemic 71.8%.

In other words, the stuff that the world actually needs to chug along is still in strong demand – but the rest of the economy is just limping along.

Anecdotally, I have had conversations with managers/owners in three different industries over the past month.

A developer of low-income housing said that while things were slightly better compared to this time last year, they were still a disaster and there was no real recovery in sight. The manager of a high-end boat/RV retailer, whose lot is chock-a-block full of expensive motor homes and boats, was trying to be optimistic going into his traditional big sales season, and he had clearly boosted inventory. But as the sales season is still not quite underway, his guarded optimism is based on nothing more than hope at this point. When I asked him about the availability of credit, he said that people with very good credit can get financing, but everyone else can forget about it. Oops, there goes the majority of his potential buyers.

Then, the other day, I had a beer with fellow Casey Researchers Olivier Garret and Alex Daley down at a local pub/restaurant/hotel. The owner popped around to say hi, and I asked him if he was seeing an improvement in the economy. His reply, “Oh, there is an economy? Could of fooled me!” While he made the comment as something of a joke, the establishment remained largely empty well into the traditional cocktail hour when we left.

As an aside on the topic of restaurants, I have noted that the better-run restaurants – the ones that provide value for money – are doing reasonably well in the New England resort town that hosts the headquarters of Casey Research.

Rather than confirming a broadly improving economy, however, I suspect this is not unlike the phenomenon where, for a brief period, chickens are able to run around without the benefit of their heads. Which is to say, dining out seems to be a reflexive action taken by people who still have jobs and who may have seen some improvement in their stock portfolios.

We humans really don’t like change and typically resist embracing it. Thus, those not forced by personal circumstances to hunker down – i.e., those still receiving paychecks – are following the boom-year custom of regularly dining out, and to a lesser degree, using their still active credit cards to buy stuff they really could do without.

My grandfather, a young man during the Great Depression, was a lifelong skinflint as a result of his experience. One of his favorite sayings when resisting one of the grandkids trying to put the touch on him for one toy or another was, “Money doesn’t grow on trees.” By the time this is over, people will be saying, “Money doesn’t sprout from credit cards.” Back on the topic of the financial media… I don’t watch the financial cable shows. For one thing, I don’t have cable. But even if I did, I wouldn’t, because almost to a person these people missed the crash. So, why should I listen to them today?

Most of the pundits are talking their own book. And all of the financial news programs know that the stock houses and funds that buy the ads will bolt if their programs take a steadily dim view on the outlook for the economy and stock market.

FICTION: The housing market is improving.
FACT: Would you like to buy a bridge in Brooklyn?

In mid-April, Bloomberg reported that “Builders broke ground on more U.S. homes in March than anticipated and took out permits at the fastest pace in more than a year, a sign of growing confidence that sales will stabilize.

“Housing starts climbed to an annual rate of 626,000 last month, up 1.6 percent from February’s revised 616,000 pace that was higher than initially estimated, Commerce Department figures showed today in Washington.”

On the other side of the ledger, the Financial Times stated, “Whitehall Street International, Goldman Sachs’ international real estate investment fund, has lost almost all of its $1.8bn of equity following soured property investments in the US, Germany and Japan, according to the Fund’s estimates.

“By the end of 2009, the fund was down to its last $30m, a paper loss of about 98 cents on the dollar, an annual report sent to investors last month said.”

If the world’s most successful investment house can lose essentially all its equity in a real estate fund, you know we’re not in Kansas anymore.

Fox Business presented another dose of realism, saying that “Commercial real estate is showing few signs of leveling out nationwide and several regions continue to get hammered by declining values.”

I can tell you that around here, the commercial space that was empty a year ago is still empty today. And I’m talking even about the prime locations.

So, how to explain the upbeat housing articles in Bloomberg, when the facts on the ground seem to indicate the exact opposite? Other than the steady evidence that Bloomberg has taken on a cheerleader role for the Democratic machine its boss is a solid cog in, builders may be looking to build simply because that is what they do.

What they’ll actually be doing is assuring their future bankruptcies. The following is an excerpt from an email from Jim B., a Casey subscriber and regular correspondent, shedding light on the matter (emphasis mine).

Down here in Austin, there's a housing construction recovery in bloom. I spoke to one of the contractors today. He was very happy to have his ten workers back to work after over a year of no work at all. One minor problem: the home construction company wasn't paying him. I'm guessing the companies are using their subcontractors as lenders and will repay the "loans" if/when the houses are sold. Their credit must still be in the toilet, so it can't get any worse. This looks ominous.

I buy distressed property, mostly foreclosures. The usual number of houses in foreclosure in Travis County in the mid-‘90s was around 325 per month. Of those, about 30 had enough equity to make a deal work. The number of foreclosures about six months ago was about 825, and the number of good deals was still about 30. So, about 500 houses per month above the normal rate are being dumped into the Austin real estate market. Just how new construction will overcome this competition is a drama I'm waiting to see.

At some point, real estate will again be a great investment – but for now, holding fire on new purchases seems the right thing to do. As for buying housing industry stocks or bonds – not hardly.

FICTION: The U.S. government has everything under control.
FACT: The U.S. government is on tilt.

At this point the list of hastily conceived, politically motivated spit-and-plaster fixes that have been cobbled together by the government in an attempt to fix the economy – versus just getting the hell out of the way and letting the economy fix itself – could fill a book. The only thing that matters to the administration and its allies is to corral a sufficient number of votes to get through the November elections on their collectivist feet.

And now Goldman Sachs has been charged with one of its many frauds. I should have seen this coming, as they had become – in the minds of Obama’s core constituents – the poster child of Wall Street’s greed. In addition, the firm has very, very deep pockets – just as Drexel Burnham Lambert did when the government laid them low with a $700 million fine… virtually none of which was then passed on to the purported victims of their indiscretions.

In the case of Goldman Sachs, I suspect that they may have become too clever by half – and that they’ve crossed some lines that will now be used by their erstwhile friends in Washington to string them up. And, in so doing, provide Team Obama with a win-win of appearing as a staunch opponent of Wall Street fat cats, while simultaneously confiscating another several billion to be cycled into the furnace of federal spending.

At this point, the only sane way to view the government is as an out-of-control gorilla that is wildly grabbing in all directions. As Goldman Sachs may be about to learn, once the gorilla has caught a hold of you, you’ve got real problems.

Unfortunately, the gorilla has grown so large that at this point it has its arms around the most of the economy. Counterproductive tax hikes are already baked in the cake and, if the administration has its way, it will soon try to layer on the mother of all tax increases in the form of a VAT. (I think at that point we might actually see riots in the streets.) Therefore our constant admonitions to be careful and to be largely in cash just now, combined with very carefully selected stocks that will weather even a Category 4 economic hurricane. Words to the wise.
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The Casey Report editors – Doug Casey and David Galland among them – have predicted all the recent economic trends months or even years before they happened: the bursting of the housing bubble… major bank failures… the credit crisis… the demise of the dollar… and many more. Learn how they do it and how you can profit from budding trends, even in times of crisis. Click here for more.

Thursday, May 13, 2010

John McCain: President Obama 'falsifying' immigration - Andy Barr - POLITICO.com

I wonder what McCain would be saying if it had been any other state besides Arizona and if he wasn't being threatened for his seat by a pro-border enforcement candidate.....

John McCain: President Obama 'falsifying' immigration - Andy Barr - POLITICO.com

Debt to Break the Back of the Welfare State

Are we seeing the end of socialism even while OBAMA and this congress make last minute power grabs to institutionalize it here?

Debt to Break the Back of the Welfare State

In a Job Market Realignment, Some Left Behind - Yahoo! Finance

While the article is accurate in it's assertion that these jobs will not come back, it places the blame on the economy and "evil" corporations who are laying people off and replacing them with technology.

What the writer fails to acknowledge (it is the NY Times afterall) is that this Federal Government has been an enemy of the low-skill job creators for 40 years. By driving manufacturing off shore through over-regulation, over taxation and over-protection of the labor unions, they have created the environment where there will be too many low skilled workers available for too few jobs. Add the illegal immigration issue to this and the picture becomes more dire.

Many of these people simply become part of the dependent class who will then vote against anyone who threatens their lifeline to the federal government.......

In a Job Market Realignment, Some Left Behind - Yahoo! Finance

Thomas Sowell

Thomas Sowell, gets it right. The elites see us as working hands, to be disgarded after we are no longer useful and before we become a burden. Welcome to the 21st century plantation.

Thomas Sowell

The Eden Myth and the Ratification Con of 1789

What a shock, OBAMA!, Pelosi and Reid weren't the first people to piss on the Constitution.....

The Eden Myth and the Ratification Con of 1789

Wednesday, May 12, 2010

Charlie Brown Conservatives and a Lucy GOP

I received a call from the RNC asking for a pledge to help them take out the liberal Democrats. I told them that I was active in the tea party movement and therefore would be spending my money to also take out liberal Republicans....they thanked me for my time.

Charlie Brown Conservatives and a Lucy GOP

RealClearPolitics - The Welfare State's Death Spiral

Has our allowing of socialism to creep into our lives become the cancer for which thee is no easy recovery?

RealClearPolitics - The Welfare State's Death Spiral

CHRISTIAN & ROBBINS: A choice for the condemned - Washington Times

Unfortunately, math is math. When our government spending eats up most of our GDP, there is no room for the creation of personal wealth and security. We become salves to the state.

CHRISTIAN & ROBBINS: A choice for the condemned - Washington Times

Friday, May 07, 2010

OUTRAGE! Congress refuses to outlaw insider trading for lawmakers: Tech Ticker, Yahoo! Finance

This is the most disgusting revelation yet. While they grand stand up there against Goldman Sachs, they refuse to live by their own rules. We clearly, in their minds, have two Americas.

congress refuses to outlaw insider trading for lawmakers: Tech Ticker, Yahoo! Finance

Sunday, May 02, 2010

New Report Confirms Health Law Raises Premiums, Hurts Seniors

A report last week from President Obama's own health analyst confirms what millions of Americans have been saying for more than a year. The health care legislation rammed into law last month is a fiscal disaster that will raise health costs for all Americans while hurting seniors by cutting Medicare benefits.

The report released by the Centers for Medicare and Medicaid Services' (CMS) chief actuary concludes that the new law "will do little to rein in spiraling costs and government spending." It also found that the law hurts seniors by cutting billions from critical Medicare services. As most Americans suspected, the report confirmed that the law raises taxes, increases health insurance premiums, and makes health care more expensive for millions of Americans.

The CMS report also concluded that the health care law:

Causes 50 percent of seniors to lose their Medicare Advantage plans (that includes more than 115,000 Michigan seniors)
Cuts Medicare by $575 billion, putting at risk seniors' access to doctors and other medical caregivers
Imposes $87 billion in additional taxes on employers
Levies more than $33 billion in additional taxes on individuals
Drives health care costs up, not down, by $311 billion over the next 10 years
Because of my concerns with this massive new health care law, I have demanded hearings in Congress to investigate why the plan raises health costs and hurts our nation's seniors. I have also written a letter to Democrat leaders in the House of Representatives requesting that CMS officials testify before the Energy and Commerce Committee so we can discuss the Administration report in detail with the panel. It is crucial for members of Congress and the American people to understand the full and true impact of this dangerous overhaul of our health care system so we can begin to fix it in a way that works.

The Welfare State Meets Mathematics

Imagine if you will, living in a state where most of the daily needs are provided within the community, with community specialists bringing in those goods and services best produced elsewhere and less essential, but "nice to have" once you can afford them......

Due to the coming collapse of the Welfare State, we may in our lifetimes go back to such a pleasant existence...

The Welfare State Meets Mathematics

Morning Bell: An Appetite for Real Immigration Reform | The Foundry: Conservative Policy News.

The Arizona Law and the growing discontent with the current congress has put an almost panic mode behavior in the White House. They are seeing the passage of any legislature that forwards their agenda as "now or never" as election season looms.

Here is a more common sense approach to immigration reform that the Republicans should start talking about...

Morning Bell: An Appetite for Real Immigration Reform | The Foundry: Conservative Policy News.

The Corrupt Party and the Stupid Party

The Corrupt Party and the Stupid Party