9/14/2008
WHY THE CHANGE CHANGED
The Change We Need vs. The Change We Can Believe In.
by Tibby Weston
I have the unfortunate advantage over you, having lived under and having been persecuted by Communists. Due to that unforgettable experience my antenna and nose always look for signs of communists and their noxious odor. I understand why you might not have noticed the latest communist ideology driving the Obama campaign. I forgive you. You could not see the obvious because you have never listened to communist speakers and have never observed their MO.
In the last weeks the Obama think thank finally realized that people no longer believe that he will bring the change he promised. It was time to drop the “believe” concept and try to change his followers from “believers” to “needers”. There are always far more “needers” than “believers”. A disheartened believer can still be a needer, but a needer is not necessarily a believer. Our needs are greater when we have much and want more than when we have nothing and want some. In this country not even the poorest have nothing. In order to create a large class of "needers", not only does Obama and his party depict the present as mean and miserable, but also it has exerted every effort in recent years to make it so.
There is an old Hungarian saying: “He who believes has no questions. He who does not believe has no answers.” The Obama think tank realized that when people start asking questions, they could no longer be considered believers. It is far easier to exploit peoples’ “need” than their belief. The people’s needs can never be completely fulfilled. The word can easily be used even for the slightest wish and Karl Marx long ago discovered that the safest political platform is to promise people what they think they need. Since need is unlimited, Marx had to find a source which could be used to satisfy the need. Thus he created the basic tenet of the Communist doctrine ‘to take from those who have and give it to those according to their need.’ So the Obama camp finally reveals its basic philosophy, which is the same old, discredited Communist doctrine:” from each according to his ability, to each according to his need".
Utilizing the negative side of human nature that is selfish and afraid of hard work primarily develops the idea and concept of “to each person according to his need”. The concept of "to each person according to his need" basically means that regardless of how little effort and work one puts in, one can get whatever one wants. This concept particularly appeals to those who don't intend to do much work. This is the fundamental evil of the communist doctrine. The Obama camp now inadvertently reveals its Communist origin. His mother was a leftist radical, so he was nurtured on the communist ideology and spent most of his growing years surrounded by communists and radicals, “The Change We Need” slogan is now in harmony with his beliefs.
We believe that one does not gain if one does not work for it, and that more work means more gain, less work means less gain. This is the law of nature and the capitalist principle . The more effort one puts in, the more return one gets. Therefore, the concept of "to each person according to his need" is an unnatural doctrine, which is against the capitalist principle. It is a doctrine to deceive and brainwash people. It is impossible for any society to create a society of the communist doctrine of "to each person according to his need" except at the point of a bayonet, or by creating massive gulags. The politician who uses the doctrine of "to each person according to his need" uses it as a camouflage to carry out its real doctrine of getting the power to the communist nomenclature.
So the change from “believers” to “needers” is right out of the communist playbook. They are counting on a nation of “needers” to get them the power they seek. Karl Marx would be proud of how well his concept is being employed to win an election. You also have a need. You need to explain to your friends and neighbors why this change of change choice was made by the Obama campaign and how it leads right back to Karl Marx and his communist doctrine of "need.".
IF YOU WANT TO BE REMOVED FROM THIS MAILING LIST SIMPLY REPLY AND SAY SO.
WE WILL RESEND THIS NEWSLETTER TO OUR HOUSTON READERS AS SOON AS COMMUNICATIONS WITH HOUSTON ARE RESTORED.
FOR A COLLECTION OF PAST NEWSLETTERS YOU MAY WANT TO VISIT (AT YOUR OWN RISK) http://tibbyweston.blogspot.com/ It is entitled: Have You Had Enough?
9/19/2008
ATTACK ON THE US ECONOMY
Who stands to gain by all of this economic turmoil? Who is pulling the economic strings causing havoc to the economy? Who are the economic terrorists bent on disrupting, or even destroying the US economy?
George Soros and the secretive Democracy Alliance, a group backed by rich liberals who fund a network of liberal-left groups dedicated to electing Democrats to the White House and Congress have attacked the US economy to help the election of Obama.
The media is hiding the fact how Soros and the hedge funds made “bets” on the fall of the US economy and the dollar. He has a political and economic agenda attempting to crash the US economy before the election.
Soros spent over $20 million trying to defeat George Bush for president in 2004 and has contributed to such groups as the Democratic National Committee, MoveOn.org, and to Hillary Clinton and Obama.
Soros, in short, is a major financial backer of the Democratic Party and will be in a position to collect on these debts if Obama wins in November. Too insure Obama’s election the financial activities of Soros could make the economy go into a complete tailspin with Soros making many billions on betting on the declining value of the dollar.
Any economic problems will, of course, be blamed by the Democrats and the liberal media on President Bush and the Republicans. The Republicans may not be smart enough to recognize how Soros and other hedge fund managers are deeply involved with the Democratic Party.
Ties to the controversial and mysterious hedge fund industry should be a major problem for the Democratic Party. Although the connections are kept secret, some obvious lapses have occurred. Democratic presidential candidate John Edwards had gone to work for a hedge fund and after he was employed the fund rapidly expanded its subprime lending business while he worked there, becoming a major player in the high-risk mortgage sector.
If the Democrats succeed in creating and exploiting the economic problems, they will not only keep control of Congress in this fall’s elections but will put Obama in the White House. Their “mandate,” however, will go beyond new government programs for the economy into the social realm. And that’s where Soros has a keen interest.
The issues of Obama’s drug use and dealings have been suppressed in the campaign, but Soros has put millions into the drug legalization movement. He has also put very large amounts of his $7 billion fortune into causes such as abortion rights, gay rights, voting rights for felons, euthanasia, and rights for immigrants and prostitutes.
By dumping hundred’s of millions into shorting the US financial industry, Soros attempted to crash our institutions and the credit system of the nation, potentially leading to a recession or depression. He and his conspirators are willing to spend their fortune to get Obama in the White House. Lets hope the SEC and Bush are able to stop this attack. I have contacted the White House four years ago calling attention to the dangers of a Soros attack on the economy before the 2004 elections. I was assured at that time that the Treasury was monitoring his activities and was making countermoves to prevent damage. This time the countermoves are coming a bit late. Perhaps I should have repeated the warning.
F YOU WANT TO BE REMOVED FROM THIS MAILING LIST SIMPLY REPLY AND SAY SO.
WE WILL RESEND THIS NEWSLETTER TO OUR HOUSTON READERS AS SOON AS COMMUNICATIONS WITH HOUSTON ARE RESTORED.
FOR A COLLECTION OF PAST NEWSLETTERS YOU MAY WANT TO VISIT (AT YOUR OWN RISK) http://tibbyweston.blogspot.com/ It is entitled: Have You Had Enough?
9/19/2008
A FEW DAYS AGO I ASSEMBLED DATA FOR THIS ARTICLE AND MY WIFE ASKED ME NOT TO SEND IT OUT, BECAUSE SHE FELT IT WAS TOO PESSIMISTIC. I BELIEVE THAT MOST OF YOU ARE ADULTS, ABLE TO TAKE SOME BAD NEWS. WHETHER YOU LIKE IT , OR NOT, BAD NEWS IS NOT GOING TO STOP AND WE ARE LOOKING AT CRITICAL TIMES. PERHAPS THIS BIRD'S EYE VIEW WILL HELP YOU I SOME SMALL WAY.
PS MY WIFE ALSO REMINDED MY THAT SOME OF YOU MAY NOT KNOW WHO GEORGE SOROS IS. Soros is famously known for "breaking the Bank of England" on Black Wednesday in 1992. http://en.wikipedia.org/wiki/George_Soros
THE END OF THE CREDIT BOOM ERA
9/16/08
In the coming weeks you’ll read and hear much of the economy, bank failures, credit crunch, credit worthiness and many technical words that may not have any significant meaning to you. The impact of those words, however, may have a significant effect on you financial future.
The word credit is based on the Latin word of credo and for a good reason. Credo means belief generally in a religious sense. By understanding the meaning of the word it will become quite clear what the problems in finance are. Finance is a quite simple matter. The world is divided into two groups. For simplicity I will call them: The old and the young. The old, who have worked hard throughout the years and accumulated some wealth in the form of assets and are ready to retire and enjoy the benefits of their labor.
The young are without such accumulated assets, but are able to work and could utilize such assets to produce goods and services. The solution is quite obvious. The old lends assets to the young in the belief that the young will produce results and will return not just the assets but also earnings on the assets to the old. This simple concept has always worked throughout the history of humanity. The new generation supports the old one, and retirement systems simply apportion rights to income between the generations. The devil is in the details.
The first step is to convert the assets to money, so it can be transferred to the young. This is the role of money. Money is wealth in transit.
Then we had to create an intermediary who could make the transfer. These are the banks and other financial institutions. So when you deposit your money in the bank and they pay you interest, those earnings come from loans made by the bank to people in whom the bank believes i.e. who have credit.
In the very old days we had a standard joke about bankers and the Rule of 3s. They pay you 3% on your money, get a profit of 3% from the borrowers and start playing golf at 3PM. It was the job of the banks and the large financial firms to create trust between borrowers and lenders and establish a link between the present and the future. Still this system would have worked flawlessly, but then the intermediaries started to get fancy. They expanded their belief system under pressure of politicians.
1. They believed that even though they just had your money, the borrowers would faithfully perform if they would lend them money the bank did not have, but borrowed itself. They used borrowed funds, or debt, to increase the returns. They called it leverage. Banks then went further. Pres. Clinton, under pressure from Wall Street lobbyists (and their money), removed the barrier between commercial and investment banking aimed to prevent a loss of deposits in the event of investment failures.
2. Pressured by scheming politicians, they believed that everyone should be a good prospect for a loan, regardless of their ability to repay the loans. This resulted in consumers borrowing ever-larger sums to live beyond their means through exotic mortgages, questionable auto loans and lax credit-card rules. They even aggressively persuaded Americans to borrow more and more money. If there weren't enough Americans to borrow money on a sound basis, the banks arranged for a smaller number of Americans to borrow more money on an unsound basis. That is why subprime, interest-only, no-money-down and other mortgages grew large in bank portfolios.
3. Next they converted the loans into stocks and bonds and a multitude of inventive pieces of paper for sale to insurance companies, pension funds and foreign investors. The world kept shipping capital to the United States over the past 10 years, because no other market could absorb the savings of Europe and Asia.
4. The Federal Reserve allowed financial institutions to mark their books at fictitious values, in the belief that eventually prices for mortgages, consumer debt structures, corporate structured instruments and so forth would come back. If the authorities had forced the banks to mark their assets to the existing market, almost all of them would have been insolvent.
What we have now is a sudden break in the chain of belief between the present and the future. We have discovered that our investments and savings have fed a securities market bubble rather than the creation of value. If we have a crash of the financial system it would put an end to the something-for-nothing culture built on misguided beliefs of the past decades. We will have to change our lives. Like it or not, change is coming.
The boom of the past six years was illusion. It was based on the wave of unlimited and unwise credit. Credit easing does not and cannot substitute for earnings, wages or tax revenues. We will see house prices continue to fall. We cannot keep them up at levels they should have never reached, as a result of too-cheap and too-plentiful credit. Mortgage payments will have to include payment of principal. This will hurt, but so does what we are doing now.
We will get government spending to shore up jobs, tax revenues and ongoing survival of significant businesses. We will, however, repeat the mistakes of the S&L era by socializing the losses and privatizing the profits. Insiders will pick up properties from a newly organized RTC type entity, contrary to the hopes of Pres. Bush. Especially if Congress is not replaced by more honorable representatives and senators. Slight hope for that.
IF YOU WANT TO BE REMOVED FROM THIS MAILING LIST SIMPLY REPLY AND SAY SO.
WE WILL RESEND THIS NEWSLETTER TO OUR HOUSTON READERS AS SOON AS COMMUNICATIONS WITH HOUSTON ARE RESTORED.
FOR A COLLECTION OF PAST NEWSLETTERS YOU MAY WANT TO VISIT (AT YOUR OWN RISK) It is entitled: Have You Had Enough? http://tibbyweston.blogspot.com/
9/21/08
SORRY, IF I REPEAT MYSELF, BUT THIS ISSUE IS OF CRITICAL IMPORTANCE FOR OUR NATIONAL SURVIVAL.
When it comes to financial matters the Democrats admit that if it does not involve spending tax payer dollars, or receiving graft, they haven’t much of an idea of what to do.
When the going gets tough, the spineless adjourn. They did it on the energy crisis and they did it on the financial crisis they created.
Here is another reminder how our present crisis started.
Fannie Mae and Freddie Mac executives promoted mortgages issued with no verification of income, no ability to make payments, and no down payments. Why would they do it?
Because the management team at Fannie Mae -- all four of whom were prominent Democrats -- pulled down nearly $300 million in pay. Fannie Mae executives, aided and abetted by Congressional Democrats and the Clinton administration, went hog wild promoting low-quality loans. Their pay, stock options and bonuses were based on the amount of mortgages created.
In addition they forged the books. Mr. Raines who collected more the $100 million just agreed to pay a fine of $24 million for his fraud. Pretty good profit for criminal behavior if you are a Democrat and have been paying graft to your fellow Democrats in Congress. The largest amount paid was to Mr. Obama who received almost as much in his two years in the Senate as the biggest beneficiary of these grafts, Democrat Dodd received over 10 years. It was affirmative action in its graft form.
It mattered little to these crooks and the Democrat conspirators, that they triggered the largest financial crisis since the great depression. Democrats helped destroy the financial system by treating Fannie Mae like their own personal piggy bank. So what is the plan Obama and the Democrat leadership has proposed: Adjourn! When the going gets tough, the spineless adjourn and leave the problem to the man they demonized for seven years.
It is time to wake up and throw the bums out. It is time to Rise Enraged Voters, Oust Legislative Traitors.
We need to get rid of these spineless power grabbers who are willing to destroy our economy and sink the world in a major depression with horrendous consequences so that they could gain power.
IF YOU WANT TO BE REMOVED FROM THIS MAILING LIST SIMPLY REPLY AND SAY SO.
WE WILL RESEND THIS NEWSLETTER TO OUR HOUSTON READERS AS SOON AS COMMUNICATIONS WITH HOUSTON ARE RESTORED.
FOR A COLLECTION OF PAST NEWSLETTERS YOU MAY WANT TO VISIT (AT YOUR OWN RISK) http://tibbyweston.blogspot.com/ It is entitled: Have You Had Enough?
9/22/08
BAILOUT DÉJÀ VU ALL OVER.
I know that bailout, financial crisis carry with them a lot of insider mambo-jumbo. Twenty years ago I was hired to save the S&L Industry from collapse and had to cut through the same mambo jumbo to find a solution. My proposal was hailed by the Texas Congressional Delegation, by the Treasury Secretary’s office, by the Home Loan Bank regulating the industry, by S&L owners and stockholders, and would have reduced the losses to a minimum. Unfortunately the need to hide the problem from the public until the 1988 presidential elections killed the proposal.
I was helplessly watching in dismay how the Government “bailout” effort destroyed real estate values. That bailout costs over $160 billion directly to the taxpayers and over $1,250 billion to property owners, stockholders, borrowers and the economy. In today’s dollars that would be $290 Billion Government loss and $2,275 billion public loss. It took our economy almost 10 years to recover from that loss.
The similarities between the two bailouts are astounding. In Bailout 1. (B1) the government could not allow the losses carried by the banks and savings institutions to become public and they tried to hide it through Creative Regulatory Accounting Practice (CRAP) and by outright lying by the regulators. M.Danny Wall, the president of the Home Loan Bank was hired for the sole purpose to hide the losses from the public until the 1988 elections. Neither political party could afford the public to find out about the problems, because it would impact on the presidential elections. With the connivance of the Banking Committees of the House and Senate, the losses were allowed to mushroom for 2 years when they could have been stopped at a minimum by prompt and honest action. Literally mushroomed, because the public was kept in the dark, while politicians and regulators fed them fiction manure.
Prior to Bailout 2. (B2) the losses were similarly allowed to be hidden for years due to the reluctance of Congress (induced by millions spent on lobbyists and direct graft paid to the banking committee members)) to change the rules that allowed the lenders to carry assets on the books at their acquisition cost instead of their market value. The plan in B2 is to buy the assets at their original acquisition cost and hope the losses hidden will be recovered when property values return.
I proposed the same solution in 1986 and advocated warehousing the properties for at least 10 years in the REAL ESTATE ACQUISITION, DEVELOPMENT and YIELD Association, (READY) and allowing the markets to recover and the losses to disappear. Instead of warehousing the assets and holding on to them, the RTC was created to dump the assets on the market at a loss. Insiders picked up properties for a fraction of value and most of the time the government would even finance the theft for their cronies. Such indiscriminate dumping destroyed other property values, seriously hurt the economy, but made a lot of political insiders very wealthy.*
I am watching with dismay that Congress already smells the opportunity of theft on a grandiose level and is trying to turn this financial crisis into an opportunity to socialize the losses and privatize the profits. We will watch it together and if you do not get bored, I will try to cut through the mambo jumbo again.
* You may find details in my book HOW TO MAKE MILLIONS IN REAL ESTATE AND LOSE IT. (UNLESS YOU LEARN FROM MY MISTAKES.)
http://www.amazon.com/Make-Millions-Real-Estate-Lose/dp/1591093678/ref=sr_1_1?ie=UTF8&s=books&qid=1222107161&sr=1-1
IF YOU WANT TO BE REMOVED FROM THIS MAILING LIST SIMPLY REPLY AND SAY SO.
WE WILL RESEND THIS NEWSLETTER TO OUR HOUSTON READERS AS SOON AS COMMUNICATIONS WITH HOUSTON ARE RESTORED.
FOR A COLLECTION OF PAST NEWSLETTERS YOU MAY WANT TO VISIT (AT YOUR OWN RISK) http://tibbyweston.blogspot.com/ It is entitled: Have You Had Enough?
9/22/08
OBAMA AND THE CONTRACTORS.
A CASE OF STUPIDITY OR TREASON?
For some time I had been listening Obama disapproving the use of contractors by the military. He should know that civilian support has accompanied the military ever since the United States became an independent country. Historically, the concept of a private soldier, often called a mercenary, is nothing new. It dates to biblical times. Private Military Companies or Private Security Companies are a reality in the twenty-first century conflicts all around the globe and they offer their protection/defensive services to both private and public clients, including NGOs, United Nations, aid agencies and governments. The practice has enhanced US military standing rather than undermine it and the US has become the envy of the military world.
Just recently Obama claimed that it was not the surge that succeeded in defeating the terrorists in Iraq, but the private military contractors who have done the dirty job of killing the terrorist leadership. He said that to belittle the effectiveness of the surge, but by doing so he has admitted the effectiveness of private military contractors.
I was astounded to hear today that he would reduce government programs and save money for the taxpayers. Coming from a party, which has never advocated lower taxes, I smelled a rat. What government program would he want to abolish?
Then the audacity was revealed. He wants to reduce payments to the military contractors because they are effective in fighting Islamic terrorists? It is either the audacity of stupidity that he assumes we do not know why he is against using private military contractors, or the audacity of treason in your face by attempting to abandon our most successful method of killing terrorists and keeping this country safe.
HE WANTS TO ABANDON OUR NUCLEAR WEAPONS WHILE OUR ENEMIES ARE ACQUIRING THEM.
NOW HE WANTS TO STOP USING MILITARY CONTRACTORS WHO ARE MOST EFFECTIVE IN KILLING TERRORISTS AND KEEPING US SAFE AT HOME.
WHOSE SIDE IS HE ON?
IF YOU WANT TO BE REMOVED FROM THIS MAILING LIST SIMPLY REPLY AND SAY SO.
WE WILL RESEND THIS NEWSLETTER TO OUR HOUSTON READERS AS SOON AS COMMUNICATIONS WITH HOUSTON ARE RESTORED.
FOR A COLLECTION OF PAST NEWSLETTERS YOU MAY WANT TO VISIT (AT YOUR OWN RISK) http://tibbyweston.blogspot.com/ It is entitled: Have You Had Enough?
9/24/08
Six months ago I wrote the article pointing out that Capitalism does not equate Nationalism or Patriotism. The recent abuse of the financial system proved my point again. A Capitalist is motivated by profits and not by Patriotism. Perhaps the time has come for Capitalists to realize that we are under attack by Socialist/Communist forces that are very similar to the Capitalists in one important way: they are willing to destroy a nation to achieve Socialist/Communist aims. Unfortunately neither group realizes that their very existence is in jeopardy if during the chaos created by either, or both, Islamo/fascists will gain the upper hand and destroy both.
2/28/2008
NATIONALISM VS CAPITALISM
By Tibby Weston
We are living an unusual period in the history of civilization. Nationalism, in its broadest sense, is a devotion to one's own nation and its interests over those of all other nations. The term can also refer to a doctrine or political movement that holds that a nation—usually defined in terms of ethnicity or culture—has the right to constitute an independent or autonomous political community based on a shared history, common destiny and language.
Nationalism has had an enormous influence on world history. In modern times, the nation-state has become the dominant form of societal organization. Historians use the term nationalism to refer to this historical transition and to the emergence and predominance of nationalist ideology. When nationalism combines with socialism, as in the National Socialist Party of Germany, it becomes an extreme form of nationalism, such as those propagated by fascist movements in the twentieth century, which hold that nationality is the most important aspect of one's identity and attempt to define the nation in terms of race or genetics.
Capitalism is the system of "economic freedom" and is the prime requisite of political freedom. Centralized control of economic activity is always accompanied by political repression. When transactions in a market economy are voluntary, such wide diversity of voluntary activity is a fundamental threat to repressive political leaders and greatly diminishes their power to coerce. Capitalism is vital for freedom to survive and thrive. A capitalist economy offers far more opportunities for individuals to raise their income through new professions or business ventures than do other economic forms. This potential is much greater than in socialist or centrally planned societies.
Most of us consider ourselves Nationalist Capitalists enjoying economic and political freedom, which is this nation’s predominant patriotic characteristic.
The illegal immigration issue suddenly created a chasm between the Nationalist Patriot and the Capitalist. The Patriot is devoted to his nation, its culture and will fight and sacrifice to defend it. A Capitalist has no such allegiance to any nation except to the idea of freedom to trade and earn money. As a result the Capitalist will move his loyalty to any place that improves profits, outsource labor to the cheapest provider, or in our case ignore the Nationalist concerns in order to import cheap labor.
Unfortunately the political party most damaged by this conflict is the Republican Party, home of the Nationalists and Capitalists until now. The Nationalist argues that cheap labor is only seemingly cheap, because the Capitalist pays so little that its laborers become dependent on public services- provided by the Nationalist. This is good business for the Capitalist. Privatizing the profits, socializing the losses. The Nationalist is faced with the necessity of abandoning his concept of economic freedom to force the Capitalist to carry more of the social burden. This leads to the anathema of Government regulations and expenditures increasing during the governance of the Nationalists.
Political movements are shaken by these developments. Even socialist unions become in favor of importing cheap labor that damages their membership, in the hope that the cheap laborer will join the union to exact higher wages from the Capitalist; knowing fully, that as soon as the cheap labor become more expensive, the Capitalist will abandon it and seek cheap labor elsewhere.
I do not have the answer to this brand of new development, other than that the Nationalist should try to convince the Capitalist that it is in our mutual interest to protect this nation, the prime home of the Capitalist, otherwise we self destruct and there are no Capitalists in Islam, only despots and religious tyrants.
Even of more importance is the surge of socialist politicians running for president. They want to import cheap labor in anticipation of increasing their power by granting benefits to an underclass which then would vote for them and keep them in power. Socialists are the enemies of capitalism and it is time for the Capitalists within the Republican party to understand that their opposition to secure borders will destroy them.
9/28/08
ELEPHANTS IN THE ROOM #1
The educational level of the electorate allows politicians to play games, hide facts, create illusions and just orate and obfuscate. The bailout discussion ignores the elephant in the room.
Secretary Paulson did not want to scare Congress by telling them he has no idea of the amount that would eventually be needed. So he has offered them his own version of a teaser mortgage rate of just $700 billion. This is similar to the adjustable rate mortgages used to trap homebuyers. Once Congress is locked in to a “cash for trash” trap, the real numbers will arise.
Most importantly the bailout deals only with saving financial institutions. It does not offer to change the disease that caused the crisis: relying on debt and asset price inflation, which in time would bring the amounts being borrowed in line with the actual values.
Here is, however, the elephant in the room not being seen, or discussed.
Did your hear any discussion of CREDIT DEFAULT SWAPS? Did Mr. Paulson explain counterparty risk in credit-default swaps?
He would not, because it would mean nothing to most Americans and most members of Congress. He would not even disclose how the $700 billion asked for would be used, because then you might realize that he is asking you put up just a small down payment on what he may be asking for in the near future to protect the $700 billion.
What would you say if you knew that outstanding credit default swaps amount to $55 trillion, which is more than three times larger than the US GDP of $15 trillion and 78 times bigger than the $700 billion rescue package and more than twice as big as all the Wall Street securities combined?
So you ask: What in the world are CDS? These are financial instruments so complex that even the IRS does not fully understand them, although it has been studying them since 2005.*
Although America’s housing collapse caused the present financial crisis, the system was vulnerable because of intricate financial contracts known as credit derivatives, which insure debt holders against default. They are fashioned privately and beyond the scrutiny and understanding of regulators — sometimes even beyond the understanding of executives peddling them. These derivates are swapped among institutions, hedge funds, gamblers, and wealthy investors. This CDS market is somewhat like a giant Las Vegas betting pool and just as dangerous a place to invest the public money.
When the Fed bailed out Bear Stearns and AIG, it was not only about mortgage loans that were in default or going bad. It was the massive CREDIT DEFAULTS SWAPS held by these institutions that had forced the Fed's hand. The Fed will not and cannot allow the $55 trillion CDS system to unravel because it would cause the amazingly fragile financial world to collapse.
Everyone is rushing in to get their share of the loot. Politicians and well-connected interest groups are all potential looters. They are stampeding the public into this rescue plan anticipating to be able to sell their mistakes to the taxpayers. They are, however, ignoring the elephant in the room.
Let me just add that executives made incredible profits on these swaps and could afford to make substantial payments to cronies in Washington and to lobbyists influencing Congress. As a result the swaps market has been exempt from regulation since it began. The industry argued that no regulation was needed because ordinary investors did not trade in the market. Now here we are, ordinary investors paying for the gambling losses of executives who walk away with millions in compensation and bonuses. Have you had enough?
Other elephants are in the room and I will bring them to your attention very soon.
* BTW If you want to learn how Credit Default Swaps work go to http://en.wikipedia.org/wiki/Credit_default_swap
IF YOU WANT TO BE REMOVED FROM THIS MAILING LIST SIMPLY REPLY AND SAY SO.
WE WILL RESEND THIS NEWSLETTER TO OUR HOUSTON READERS AS SOON AS COMMUNICATIONS WITH HOUSTON ARE RESTORED.
FOR A COLLECTION OF PAST NEWSLETTERS YOU MAY WANT TO VISIT (AT YOUR OWN RISK) http://tibbyweston.blogspot.com/ It is entitled: Have You Had Enough?
10/11/08
SURVIVAL SUGGESTIONS #1.
“You will also learn the skills and attributes of a survivor as they are developed in my response to people, friend and foe, to the issues, to the adversity, to the danger and opportunity. Survival of the fittest does not mean survival of the strongest. The fittest are those who are able to adapt, to accept the inevitable and conform to the unavoidable. Adapt to circumstances as water shapes itself to the vessel that contains it.” THE VISION, Foreword.
Let me start with good news. I believe that if we can survive the next 3 weeks without a world wide economic calamity, major changes will occur starting the day after the elections. Several weeks ago I wrote to you about THE ATTACK ON THE ECONOMY.
For more than a year our economy was talked into a recession, all good news was hidden and bad news dominated the media and political discussions. It was in the interest of the Democrat party to talk us into a bad economy in the belief that their candidate would be helped by it. After Obama was selected an enormous domestic, international and Middle East funding an attack started that was scheduled to culminate in the October Surprise. As I pointed out earlier, ‘they sowed the wind and reaped the whirlwind.’ Anyone who believes in coincidences must also believe in the tooth fairy.
The question now is how much permanent damage has been done or will still occur by Election Day. You have also read how much Asian investors are hoping for a McCain/Palin victory to restore their confidence so they may continue send their investments to the US and finance our economy. Part of the panic on Wall Street is also caused by fear of what an Obama socialist administration would do to the economy and the capitalist financial system.
The day after the election all efforts will be made to stabilize the world markets. The stock market will start on a climb to normalcy. Not the normalcy of the housing bubble and the credit orgy, but to a more sober and sound equilibrium. The next three weeks, therefore create a historical opportunity for wealth creation.
Just prior to the stock market crash of 1929, two well-known Houston brothers suspected that they were going to be arrested for their bootlegging operations. They decided to cash in all their stock holdings and hide the cash so that the Feds wouldn’t be able to find it. After the market crash they had plenty of cash and proceeded to buy prime stocks and real estate at panic discounts. They became scions of some of the wealthiest families in Houston with immense political pull. (No, this is not about the Kennedy clan of bootleggers.)
My first survival advice, therefore, is to my readers who are in the stock market. Become liquid by selling stocks of good companies that lost little of their value and use the money to buy stocks of good companies that lost a great deal of their value. If and when there is a recovery, you will make far more money in the increased values of your newly acquired stocks, then you would have made in the stocks you sold.
PS. Here is advice more than 2,000 years old:
"The budget should be balanced, the Treasury should be refilled, public
debt should be reduced, the arrogance of officialdom should be tempered
and controlled, and the assistance to foreign lands should be curtailed
lest Rome become bankrupt. People must again learn to work, instead of
living on public assistance.
-- Cicero , 55 BC
10/14/08
Earlier today I sent the message shown below to all my Jewish friends. I decided that it would perhaps be a worthwhile message to consider by non Jewish voters.
YOU DON'T HAVE TO READ BETWEEN THE LINES.
WHEN I TOLD THE JEWISH COMMUNITY 65 YEARS AGO WHAT IS GOING TO HAPPEN TO THEM, THEY COULDN'T BELEVE IT.
THE CODE WORD FOR "JEWS" IS "ZIONISTS".
EVIAN, FRANCE
PREPARE for a new America: That's the message that the Rev. Jesse Jackson conveyed to participants in the first World Policy Forum, held at this French lakeside resort last week.
Jackson believes that, although "Zionists who have controlled American policy for decades" remain strong, they'll lose a great deal of their clout when Barack Obama enters the White House.
"Barack is determined to repair our relations with the world of Islam and Muslims," Jackson says. "Thanks to his background and ecumenical approach, he knows how Muslims feel while remaining committed to his own faith."
BTW Do you want see pictures of the Muslim Parade on Madison Ave yesterday? Do you wonder why the media kept this quiet?
http://atlasshrugs2000.typepad.com/atlas_shrugs/2008/10/islamists-day-p.html
Are you brave enough to read of what is coming ?
Don't blame me. I told you so.
Tibby
10/17/08
SOUND BITES or around the world in 30 seconds
While we are distracted by the elections, may small events are taking place that may interest you.
IRAQ
Life is returning to normal, at least what is considered to be normal for Iraq. More than 200 doctors went on strike, demanding improved personal security. Not from kidnappers, but from the families of patients who died, particularly during surgery. Some of the tribal leaders believe that one of the new freedoms is the ability to get financial compensation from doctors when treatment does not work. Either that, or punish the doctor whose treatment failed. Some doctors have been threatened or injured, and the government is being asked to straighten out the tribal leaders on how this is supposed to work.
MOSCOW
The Russian admirals made their big mistake in the early 1990s, when the dismantling of the Soviet Union left the second largest fleet in the world with only a fraction of its Cold War budget. Rather than immediately retire ninety percent of those ships, Russia tried to keep many of them operational. This consumed most of the navy budget, and didn't work. There were too many ships, not enough sailors and not enough money for maintenance or training at sea. The mighty Soviet fleet is mostly scrap now, or rusting hulks tied up at crumbling, out-of-the way naval bases.
The rest of the Russian armed forces, like most of the navy, is in sad shape, and unable to resist a major invasion. Only the ICBMs and SLBMs guarantee the safety of the state. The invasion of Georgia demonstrated so many weaknesses that Moscow ordered Exercise Stability 2008, a major world wide exercise for its armed forces. More than 60,000 troops and 1.500 tanks and APCs, as well as land-based and submarine-launched nuclear missiles, were tested earlier in these war games.
ALASKA-RUSSIAN BORDER
Russia had launched dozens of nuclear bombers for an exercise in which Tu-95 Bear bombers fired live cruise missiles during Exercise Stability 2008, which took place Oct.-6-12 over sub-Arctic Russia near Alaska.
SIM CARDS
SIM cards are the type favored by gangsters and terrorists. In most parts of the world, you can move your cell phone service from one phone to another by simply removing the small (25x14mm) SIM "card" from one phone and inserting it in another. SIM cards can also be bought just for the minutes stored on them, and these "anonymous" SIMs are popular with gangsters, and terrorists. Police have long noticed that terrorist bombs are often set off using a cell phone with an anonymous SIM card. It's not uncommon to raid a terrorist hideout and find hundreds of anonymous SIM cards. The Taliban and drug gangs cannot run their operations without these communications tools.
YEMEN
From an interview published in the official A-Qaida magazine an indication of where the war against the West is moving to in the near future: “if the enemy's interests in the Arabian Peninsula were devastated, his access to our petroleum interrupted, and the oil refineries put out of order, this would cause the enemy to collapse—and they won’t merely be forced to withdraw from Iraq and Afghanistan, but moreover would face a total collapse. If [our enemy] were to be struck hard in various places, then he would scatter, turn around, and flee forlornly from the land of the Muslims, with his tail between his legs.”
10/17/08
FOR MANY YEARS I WAS TELLING YOU IN NUMEROUS NEWSLETTERS, THAT I AM UNIQUELY QUALIFIED TO RECOGNIZE WHEN MARXIST-COMMUNIST CONCEPTS ARE ADVOCATED BY CANDIDATES. I LIVED UNDER A COMMUNIST REGIME, LISTENED TO THEIR PROMISES AND SAW THE RESULTS. FOR ALMOST 15 YEARS I WAS MAKING SPEECHES THROUGHOUT HOUSTON ABOUT THE DANGERS OF COMMUNISM. UNFORTUNATELY NOBODY TODAY UNDERSTANDS THE WORD AND WHAT IT MEANS, EXCEPT FEW OF THE OLD TIMERS WHO HAD FOUGHT AGAINST COMMUNISTS IN WARS AND IN THE COLD WAR.
I WAS WORKING ON A LIST OF COMPARISONS BETWEN OBAMA'S SUDDEN "MANCHURIAN CANDIDACY" AND THE MODUS OPERANDI DESCRIBED IN AN OLD BOOK "YOU CAN TRUST A COMMUNIST TO BE A COMMUNIST" WHEN I FOUND THE ARTICLE THAT CONTAINS MUCH OF THE INFORMATION I HAVE ALREADY DISCOVERED. THE INFORMATION MISSING FROM THE ARTICLE IS THAT OBAMA'S MOTHER, STANLEY ANN DUNHAM, WAS A "FELLOW TRAVELER", WHICH IS THE NAME COMMUNIST SYMPATHIZERS AND USEFUL IDIOTS WERE CALLED FIFTY YEARS AGO. IT IS HARD TO IMAGINE, THAT YOUNG BARRY WAS NOT INFLUENCED BY HIS REVOLUTIONARY MOTHER.
HERE IS THE REST OF THAT STORY:
The United Socialist States of America
A Messiah Manufactured by Marxism
By Judi McLeod Thursday, October 16, 2008
Last night’s final presidential debate proved once again that Senator Barack Obama talks a lot, but really says nothing—nothing you can count on when he tells another whopper. (here).
Time is closing in on the 11th hour of Election ’08 but the search for the real Obama is still on.
If Obama steps out of the fog through the scavenger hunt for his birth certificate and unanswered questions about his alliance to Islam into the Oval office, he will usher in a new socialist America.
Concerns about Obama, the closet Muslim, fit right in with Obama, the Marxist. Marxists, always difficult to pin down, work hand in hand with radical Islam.
Ilich Ramirez Sanchez (“Carlos the Jackal”) wrote in his book, L’islam revolutionnaire (Revolutionary Islam) that “only a coalition of Marxists and Islamists can destroy the United States.”
There can be little mistake that the United States of America, in throwback scenes to the Roman Empire, is being attacked from within.
Even before the economic meltdown, the landscape of Election ’08 could be compared to soap opera, a shock in every episode, with the proverbial plot continuing to thicken.
Throughout all, Obama was like the errant husband. Confronted with the facts of his affair, he clings to constant denial.
Don’t count on the tragically hip mainstream media to portray Obama for what he really is anytime before Nov. 4, 2008: a cog in a well-oiled machine. Obama is the charismatic puppet of George Soros and other creators, who have worked for decades to deliver America over to Socialism.
Like the malcontents exploited by al Qaeda operatives, who recruit among prison populations, Obama was fertile ground. But in his way, Obama is deadlier because he makes the White House the destination for the airtight agenda of his Marxist masters.
Difficult to keep up with the shock-a-day associations of Obama, the latest being ACORN registering Mickey Mouse as a voter and a Kansas City couple finding a donation to the Obama campaign they never made, courtesy of their own credit card.
Worry is all that comes from being told it’s possible that not Obama but his mentor William Ayers is the real author ofDreams of My Father.
False hope is all that comes from elusive proof of Obama’s birth certificate.
Loss of individual freedom and the end of an era is what will come to pass if the next President of the United States is a Marxist.
Only the American electorate can stop Obama from becoming the 44th president of the United States.
Don’t count on John McCain or the mainstream media to tell you who Barack Obama really is.
Proof is in the Public Record.
“The public record is our only proof,” says former Naval Intelligence Officer Marion Valentine.
“In 1963, while serving in Navy Intelligence (1958-1967), I read the FBI file on Frank Marshall Davis. He had outlined the Communist plan to take over America from within, by installing educators at all levels of our educational system, gaining control of the media, getting Liberal judges appointed, recruiting, training and backing people to be elected to public office.
“I have researched every piece of legislation I can find that the Liberal Democrats have passed since the early sixties, and if you will research for yourself, you will find that they have been slowly moving this country toward Socialism.
“When Obama announced he was running for President as an unknown with only one major speech at the DNC (that the DNC and MSM made so much fuss over), he aroused my old intel suspicions. So I started researching.
“I have not found any evidence to convince me he is a Muslim, bur I did find his radical associations were unusual. I found Frank Marshall Davis, who had fled from Chicago to Hawaii when Obama was 12 years old, was Obama’s mentor from then till Davis died in 1987.
“Davis put Obama in touch with the Socialist Party in Chicago (called the New Party) which Ayers is also a member of, (emphasis added) therefore the first “Planned” contact with Ayers. The New Party helped launch and finance Obama’s political career. Obama…selected, trained, groomed and scripted to become the “puppet” leader of the United Socialist States of America.
“Since I am in the 4th and final stage of congestive heart failure and will be lucky to live long enough to see the next president take office, why should this election matter to me? Why does Obama’s statement, that he wants a National Civilian Security Force” as strong and as well funded as our military (conjuring up images of the old-style USSR police state) matter to me?
“It’s simple…I love America,” says Valentine.
The public record states clearly on Obama’s commitment to Socialism.
Even though no major mainstream media outlet has ever reported it, “Web archives confirm Barack Obama was a member of Chicago’s Socialist “New Party” in 1996.” (politicallydrunkblogspotcom, Oct. 8, 2008).
“In June sources released information that during his campaign for the State Senate in Illinois, Barack Obama was endorsed by an organization known as the Chicago “New Party”. The New Party was a political party established by the Democratic Socialists of America (the DSA) to push forth the socialist principles of the DSA by focusing on winnable elections at a local level and spreading the Socialist movement upwards.”
In North America, Marxism never comes through the front door of federal elections, but sneaks in the back door of civic elections and school boards, whose elections are dogged by public apathy. Americans have only to look northward to Canada to see Marxists elected to Toronto and Vancouver City Halls and school boards.
In the Chicago experience, “the admitted Socialist Organization experienced a moderate rise in numbers between 1995 and 1999. By 1999, however, the Socialist “New Party” was essentially defunct after losing a Supreme Court challenge that ruled the organizations “fusion reform platform as unconstitutional.
But their tentacles had already spread, and story begins rather than ends there.
“After allegations surfaced in early summer over the “New Party’s endorsement of Obama, the Obama campaign along with the remnants of the New Party and Democrat Socialists of America claimed that Obama was never a member of either organization, The DSA and “New Party” then systematically attempted to cover up any ties between Obama and the Socialist Organizations. However, it now appears that Barack Obama was indeed a certified and acknowledged member of the DSA’s New Party.” (politicallydrunkblogspot.com).
The deceit that transpired in order to remove any trace of Obama-the-Socialist/Marxist is mind-boggling.
Back to the politicallydrunk blogspot: “On Tuesday, I discovered a web page that had been scrubbed from the New Party’s website. The web page, which was published in October 1996, was an Internet newsletter update on that year’s congressional races. Although the web page was deleted from the New Party’s website, the non-profit Internet Archive Organization (emphasis added) had archived the page.
“From the October 1996 update of the DSA “New Party’: “New Party members are busy knocking on doors, hammering down lawn signs, and phoning voters to support NP candidates this fall. Here are some of the key races…
Illinois: Three NP-members won Democratic primaries last Spring and face off against Republican opponents on election day: Danny Davis (U.S. House), Barack Obama (State Senate) and Patricia Martin (Cook County Judiciary).”
(Proof of the above can be found through the WayBack Machine.)
Suppose for a minute that the information gleaned from the NP web page was erroneous.
Empirical proof that Barack is a socialist exists in the Progressive Populist magazine in November 1996.
“New Party members and supported candid dates won 16 of 23 races, including an at-large race for the Little Rock, Ark., City Council, a seat on the country board for Little Rock and the school board for Prince George’s County, Md. Chicago is sending the first New Party member to Congress, as Danny Davis, who ran as a Democrat, won an overwhelming 85% victory. New Party member Barack Obama was uncontested for a State Senate seat from Chicago:
“The Democratic Socialist Party of America published in their July/August Editor of New Ground 47 Newsletter:
The Chicago New Party is increasingly becoming a viable political organization that can make a different (sic) in Chicago politics. It is crucial for a political organization to have a solid infrastructure and visible results in its political program. The New Party has continued to solidify this base…
The NP’s ’96 Political Program has been enormously successful with 3 of 4 endorsed candidates winning electoral primaries. All four candidates attended the NP membership meeting on April 11th to express their gratitude. Danny Davis, winner in the 7th Congressional District, invited NPers to join the Campaign Steering Committee. Patricia Martin, who won the race for Judge in the 7th Subcircuit Court, explained that due to the NP she was able to network and get experienced advice from progressives like Davis. Barack Obama, victor in the 13th State Senate District, encouraged NPers to join in his task force on Voter and Education and Voter Registration.
In other words, Obama’s presidential platform of change is not even his own. Change is what Socialists have wanted for American for decades.
Mainstream media hype notwithstanding, Obama is not “The Messiah”, “The Anointed One”, the Rock Star, the Cult Leader, the First Black President, Your Agent for Change or Messenger of Hope.
To quote the Bible Ecclesiastes 1:9: “What has been is what will be,
And what has been done is what will be done,
And there is nothing new under the sun.”
Obama is the programmed robot of the global elite, working to usher in what some call a pre-orchestrated financially challenged world, The United Socialist States of America.
10/20/08
LESS DEPRESSING PERSONAL OBSERVATIONS
DISH NETWORK
M.K.B. had difficulties with DISH Network regarding her bill. As you may have heard it takes DISH about 2-3 weeks to process your check and so that by then they can attach a late fee to your bill as experienced by PP. (See
Something worse, however, happened to M.K.B. One day they could not get anything else on ALL the channels except OBAMA'S PLAN FOR AMERICA. So she called DISH and they said they did not get paid and as soon as she pays the bill, regular programming would be returned. She immediately paid it by credit card, yet the DISH network would only play OBAMA'S PLAN FOR AMERICA on ALL THE CHANNELS. After several days of arguments she finally cancelled DISH network and switched to Direct TV. In the meantime all DISH would allow her to see was OBAMA'S PLAN FOR AMERICA. She called it an insult. I call it precognition.
HOWARD STERN
He is one of the least admired characters in my world, but he had a stroke of genius the other day. He sent a reporter to Harlem to find out who people would vote for and why. I don't recall all the details, but I loved the educated replies by the voters.
"Who you are going to vote for? " " Obama"
"Why, because he is black?" " Oh no! Because what he believes in."
"Do you agree with him that abortion should be outlawed?" " I sure do."
"Do you think selecting his vice president, Sarah Palin, was a good choice?" "That was a good choice."
Etc, etc, several similar answers. Ad nauseam.
OBAMA A SOCIALIST?
Remember a few days ago I sent you the documentation that Obama was the candidate of the Socialist Party (New Party) in Chicago and how they bragged about him being elected to the Senate, (http://web.archive.org/web/20010306031216/www.newparty.org/up9610.html
I wrote to an ardent supporter of Obama and told him how the Obama camp tried to destroy all the evidence of him being a socialist and I objected to the dishonesty, lying and fraud as usual. Here is what he replied: "I wish you’d be more discerning in your reading. The right wing of the Republican party (notice the qualification, some of my best friends are Republicans), has a propensity for saying/writing the most outrageous BS. Those among the right, who read nothing else, eat it up. Among Obama’s economic advisors/supporters are the following: Nobel Laureates Stiglitz, Phelps, McFadden, and Solow; former SEC Chairs Donaldson (founder of DLJ), Levitt, and Ruder; former Fed chair Volker (he saved us from the stagflation crisis) and a prominent business man Warren Buffet. See any socialist? All have endorsed Obama’s economic plans including his proposed tax policy."
OK folks. You heard it. Stop reading outrageous BS and just look at the array of distinguished Nobel Laureates supporting Obama.
BTW don't you dare look up the political background of any of the Nobel Laureates and stop reading prohibited material about Obama! Or else. Your TV won't show anything except OBAMA'S PLAN FOR AMERICA!
TRICKLE UP POVERTY
Last week Dr. Savage invented the slogan for John McCain to use. The McCain camp decided not to use it, but that did not make Savage angry. (When he is angry he screams!) What got him mad was that Rush used the same slogan today without crediting Savage. Frankly, my dear , I don't care who invented it and I wish good ideas somehow could penetrate the palace guard around McCain. Like the other slogan I like: "How many of you are employed by a poor man?"
IRANIAN DIRTY BOMB
I am investigating and trying to confirm a great story. Iran sent a ship loaded with radioactive material destined to arrive at the coast of Israel on Yom Kippur day. It was to be exploded and the radioactive dust would have enveloped Israel and killed untold number of people. Unfortunately the ship was hijacked by Somalian pirates along the Somalian coast and held for a ransom until the pirates broke open some of the locked crates and found only powder that made them instantly sick with radioactive poisoning.http://patdollard.com/2008/10/hijacked-iranian-ship-was-a-dirty-bomb-meant-for-israel-on-yom-kippur/
Which leads me to the next item.
GEORGE SOROS AND THE ATTACK ON OUR ECONOMY
You may recall my newsletter in which I predicted the attack on the US economy before the elections by George Soros and his cabal. There is funny inside joke in this connection and also the Iranian dirty bomb. Soros based his investment philosophy, that helped him make billions, on the theories of Sir Karl Popper (http://en.wikipedia.org/wiki/Karl_Popper The basic concept that made Soros succeed was the premise by Popper that no human undertaking is flawless and that by betting on the flaw you can make a fortune. I hope the attack on the US Economy will prove Popper right. It already worked on the Iranian dirty bomb plan.
IF YOU WANT TO BE REMOVED FROM THIS MAILING LIST SIMPLY REPLY AND SAY SO.
FOR A COLLECTION OF PAST NEWSLETTERS YOU MAY WANT TO VISIT (AT YOUR OWN RISK) http://tibbyweston.blogspot.com/ It is entitled: Have You Had Enough?
10/24/08
LESS DEPRESSING PERSONAL OBSERVATIONS
DISH NETWORK
M.K.B. had difficulties with DISH Network regarding her bill. As you may have heard it takes DISH about 2-3 weeks to process your check and so that by then they can attach a late fee to your bill as experienced by PP. (See
Something worse, however, happened to M.K.B. One day they could not get anything else on ALL the channels except OBAMA'S PLAN FOR AMERICA. So she called DISH and they said they did not get paid and as soon as she pays the bill, regular programming would be returned. She immediately paid it by credit card, yet the DISH network would only play OBAMA'S PLAN FOR AMERICA on ALL THE CHANNELS. After several days of arguments she finally cancelled DISH network and switched to Direct TV. In the meantime all DISH would allow her to see was OBAMA'S PLAN FOR AMERICA. She called it an insult. I call it precognition.
HOWARD STERN
He is one of the least admired characters in my world, but he had a stroke of genius the other day. He sent a reporter to Harlem to find out who people would vote for and why. I don't recall all the details, but I loved the educated replies by the voters.
"Who you are going to vote for? " " Obama"
"Why, because he is black?" " Oh no! Because what he believes in."
"Do you agree with him that abortion should be outlawed?" " I sure do."
"Do you think selecting his vice president, Sarah Palin, was a good choice?" "That was a good choice."
Etc, etc, several similar answers. Ad nauseam.
OBAMA A SOCIALIST?
Remember a few days ago I sent you the documentation that Obama was the candidate of the Socialist Party (New Party) in Chicago and how they bragged about him being elected to the Senate, (http://web.archive.org/web/20010306031216/www.newparty.org/up9610.html
I wrote to an ardent supporter of Obama and told him how the Obama camp tried to destroy all the evidence of him being a socialist and I objected to the dishonesty, lying and fraud as usual. Here is what he replied: "I wish you’d be more discerning in your reading. The right wing of the Republican party (notice the qualification, some of my best friends are Republicans), has a propensity for saying/writing the most outrageous BS. Those among the right, who read nothing else, eat it up. Among Obama’s economic advisors/supporters are the following: Nobel Laureates Stiglitz, Phelps, McFadden, and Solow; former SEC Chairs Donaldson (founder of DLJ), Levitt, and Ruder; former Fed chair Volker (he saved us from the stagflation crisis) and a prominent business man Warren Buffet. See any socialist? All have endorsed Obama’s economic plans including his proposed tax policy."
OK folks. You heard it. Stop reading outrageous BS and just look at the array of distinguished Nobel Laureates supporting Obama.
BTW don't you dare look up the political background of any of the Nobel Laureates and stop reading prohibited material about Obama! Or else. Your TV won't show anything except OBAMA'S PLAN FOR AMERICA!
TRICKLE UP POVERTY
Last week Dr. Savage invented the slogan for John McCain to use. The McCain camp decided not to use it, but that did not make Savage angry. (When he is angry he screams!) What got him mad was that Rush used the same slogan today without crediting Savage. Frankly, my dear , I don't care who invented it and I wish good ideas somehow could penetrate the palace guard around McCain. Like the other slogan I like: "How many of you are employed by a poor man?"
IRANIAN DIRTY BOMB
I am investigating and trying to confirm a great story. Iran sent a ship loaded with radioactive material destined to arrive at the coast of Israel on Yom Kippur day. It was to be exploded and the radioactive dust would have enveloped Israel and killed untold number of people. Unfortunately the ship was hijacked by Somalian pirates along the Somalian coast and held for a ransom until the pirates broke open some of the locked crates and found only powder that made them instantly sick with radioactive poisoning.http://patdollard.com/2008/10/hijacked-iranian-ship-was-a-dirty-bomb-meant-for-israel-on-yom-kippur/
Which leads me to the next item.
GEORGE SOROS AND THE ATTACK ON OUR ECONOMY
You may recall my newsletter in which I predicted the attack on the US economy before the elections by George Soros and his cabal. There is funny inside joke in this connection and also the Iranian dirty bomb. Soros based his investment philosophy, that helped him make billions, on the theories of Sir Karl Popper (http://en.wikipedia.org/wiki/Karl_Popper The basic concept that made Soros succeed was the premise by Popper that no human undertaking is flawless and that by betting on the flaw you can make a fortune. I hope the attack on the US Economy will prove Popper right. It already worked on the Iranian dirty bomb plan.
IF YOU WANT TO BE REMOVED FROM THIS MAILING LIST SIMPLY REPLY AND SAY SO.
FOR A COLLECTION OF PAST NEWSLETTERS YOU MAY WANT TO VISIT (AT YOUR OWN RISK) http://tibbyweston.blogspot.com/ It is entitled: Have You Had Enough?
11/3/08
A LAST WARNING – WHILE WE ARE STILL FREE
In Barack Obama’s July 2, 2008, speech calling America to national service, Obama proposed “a civilian national security force that's just as powerful, just as strong, just as well-funded” as our military.
What exactly is Obama planning to do with a “civilian force” with such an astronomical level of funding?
This idea is not a new concept, nor is it a novel one. It has been around for a long time. As a matter of fact, one only needs to look 90-miles to the south of our border to Cuba that instituted a civilian security force that has been operating quite effectively for almost five decades now.
The CDR officials have the duty to monitor the activities of each person in their respective blocks. There is an individual file kept on each block resident.
The CDR is designed to put medical, educational or other campaigns into national effect, and to report "counter-revolutionary" activity. Within each block, there is one agent with the secret duty who reports directly to an officer of the security apparatus of the Ministry of Interior.
Another example of a civilian national security force that I remember well is the German SA, or StrumAbteilung, which is usually translated as “storm trooper”. SA had its base among the unemployed and working class. The SA were more radical than the SS, because its leaders argued tat the Nazi revolution had not ended when Hitler achieved power, but the SA is needed to implement socialism in Germany.
SA men were often called "brown shirts", for the color of their uniforms, They were mostly ex-soldiers, ex-convicts and beer hall brawlers used to protect gatherings of the Nazi party from disruptions and to disrupt gatherings of any opposition groups.
Certainly there have been forces like this elsewhere –the Soviet Union, China, Venezuela, North Korea. But has anything like this ever been proposed in a free country?
Are we looking at a civilian national security force in a socialized America with all the freebies coupled with the Communist doctrine of working for the government - i.e. the common good?
The questions are many and the implications of such an organization are staggering! According to the title, it's a civilian force so how would it go about discharging "national security" issues? What are the Constitutional implications for such a group?
How does one get away from the specter of other such "youth" organizations from Nazi Germany and the former Soviet Union when talking about it?
Already the Secret Service protection has been expanded to include Black Muslim security provided for the candidate. Para military training is already implemented in various black youth camps. Several thousand Black Muslim convict converts maybe ready to join and lead a strong-arm force pledging loyalty to their personal leader. When they come for your guns it will not be the local police, but a civilian national security force wearing black shirts and ski masks. I heard someone wise once say: If it walks like a duck, if it quacks like a duck, then it must be a duck.
I am too old to worry about the civilian security force taking me away. You are not.
11/10/08
REACTION TO THE OBAMA ELECTION.
PART 3.
POST MORTEM JOHN McCAIN.
I read that when a herd of buffalo getting attacked by a pride of lions, they gather together closely in a circle. Their long curling horns are pointed outwards and their vulnerable calves and families are on the inside.
When we have a problem, it is wise to seek advice and counsel and get in a circle with other people that have the same problem. You can seek for answers, share experiences, offer and get advice and generally help each other find a way. I may not know the way out, but due to my unusual life history, I know lots of ways not to go.
John McCain obviously was not a way to go. For most of us John McCain was not the chosen presidential candidate. He was an alternative to a worst selection of a self confessed Marxist. By now we’ve become used to the fact that our presidential elections have recently not been between good and bad, but between bad and worse.
Had John McCain won, he would have been confronted with a furious and uncooperative Congress, a media eagerly watching for his missteps, possible rioting resembling a civil war, and the continuous hate and scorn of the far left. He would also have faced the uproar of resentment coming from Republicans, as his appeasing decisions inevitably would surface. Let us not forget that former Senator Rudman, John McCain’s national chairman, proposed Judge Souter to the Supreme Court.
Just one more reminder who John McCain really is. When George W. Bush was elected to his first term, the initial months of a new presidency were to be used to demonstrate his leadership, consolidate power, and begin expediting his agenda. Bush was unable to do it because there was a distraction in the Senate. It was John McCain. What was his obsession? Campaign finance reform. Bush needed momentum to set the tone for a conservative agenda, but a key Republican senator interfered with his pet personal peeve - a futile campaign reform. It is indeed ironic that it was his own campaign reform that eventually killed his presidential aspirations, by allowing candidate Obama to totally ignore all reforms, rules and laws with impunity. Nurtured by Chicago politics, Obama knew that nobody could enforce such laws against a winning candidate.
Let us not forget that strange Saturday Night Live performance by John McCain, a candidate for the presidency just a few days before the election. As Rush pointed out, McCain had an opportunity to reach an audience of 40 million, much larger than Obama had during his unprecedented and obscenely expensive Hollywood style performance just a few days earlier. Here was a nation in doubt, worried about the future, with undecided voters holding the critical balance of the outcome. Rush suggested that McCain use the opportunity to say a few words, indicating his concerns, show his presidential potential. McCain plaid a clown and as he was telling the nation that their sons and daughters must remain and fight in Iraq, he was making it a big joke. He satirized the process while the country was desperately waiting to hear something to give it hope. It earned him no respect as a potential future president. It may have lost him many of the undecided.
As you read this, the silence from John McCain regarding Sarah Palin, as his own campaign members are savaging her, is contemptible. Sarah Palin did everything in her power to get John McCain elected. She made the election close because in spite of the mistreatment by the media, the voters rallied in her support. McCain’s lack of action confirms the conservative suspicion about him. He seems to suggest that he lost because the conservative stance of Sara Palin. And what will he do in the Senate? Will John McCain turn against those who supported him and remain the maverick, or perhaps he will finally become a true conservative leader? We need indeed an audacity of hope for that.
Just as with Obama we need the audacity of hope that he will not govern driven by his principles, but he will become pragmatic when confronted with problems of the real world. Sorry, but I see little hope for neither.
IF YOU WANT TO BE REMOVED FROM THIS MAILING LIST SIMPLY REPLY AND SAY SO.
11/12/08
Several years ago I was asked to make recommendations for business opportunities in the 21st Century. I proposed the construction of smart and green high rise residential buildings. My proposal was ignored, but the language of the opening pages of the proposal are worth revisiting in today's economic climate.
TWW
THE SECRET OF THE 7 PENDULUMS
“The past cannot be changed. Yet nothing changes more constantly than our understanding of the past. For the past, that influences our lives, does not consist of what actually happened, but how we now perceive what has happened.
How far can you look into the future? Not too far. Perhaps days, months or rarely years. Our view of the past, however, is unlimited. While we cannot change the past, we can better understand it; so that we can better understand the future and change it.” (From THE DUAL PALINDROME by T.W. Tibby Weston)
Every human function has its ups and downs, high and lows resembling the movement of a pendulum. Some are rapid movements and some are long term. If you add an additional factor, time, to the movement of the pendulum, then its movements will resemble a wave as the highs move towards the equilibrium and then rise to another high followed by another equilibrium.
The simplest way to imagine adding the time factor to the pendulum by visualizing the pendulum sitting atop a moving platform and concentrating on the ball at the end of the string as it moves up and down creating a wave.
This pendulum action applies to individuals, groups, nations, humanity – economics, science, religion and every activity generated by humans or nature. Technology, investments, real estate, money, economic and political conditions also behave as a pendulum with each having their own peculiar rhythm. Yet as all of them are moving forward in time and the movement of a pendulum moving forward becomes a wave. Seldom do the waves move in unison and when they do they enhance each other’s power providing unique historical opportunities for those who know how to ride the surf. This is the complex adaptive theory, which is able to recognize the rarity of such historical convergence.
When we talk about the economy we can only judge it by comparing it to the past. We discover, however,that the past is not as germain as we thought because 2+2 is no longer 4.
Simply put, local actions can have global consequences, and the relationship between local and global dynamics are closely interrelated.
Today we must abandon linear `cause and effect' approaches to decision making in favor of an approach that thrives on ambiguity and unpredictability. 2+2 still equals 4 but it is an unpredictable sum with potentially unexpected consequences if you consider the impact of waves created by other pendulums.
This complex adaptive theory in the 21st century will transform any business, large or small, into one that can consistently redefines itself to keep pace with today's ever-changing marketplace.
Today’s market must be flexibility dominated rather than governed by predetermined order.
Now let us consider some recently converging waves that may create an unprecedented opportunity for those who want to ride the surf.
1. The decline in the value of the US dollar is forcing holders of large US debts to consider converting their dollars from wealth in transit to actual assets that dollars can buy.
2. The collapse of the US mortgage market due to the greed and irresponsibility of its manipulators will create a natural reform of the market by restricting irresponsible lending and strengthening the lending criteria. Housing and home ownership will be available to less people.
3. The housing credit crunch will increase the demand for rentals creating a boom in apartment development.
4. Energy prices will increase at such a rapid scale that alternative energy sources will become feasible and will enjoy an era of rapid development and utilization of green concepts.
5. The electronic sophistication of the public will rapidly increase as the dinosaur generation is replaced by generations who never saw a typewriter or used a phonograph. They will demand smart buildings with the latest innovations incorporated as part of their life style.
6. The automotive industry will be forced to adapt new propulsion concepts requiring innovative garages designed to accommodate such new vehicles.
7. Services for apartment dwellers will expand to include home delivery services by various industries (groceries, laundry/cleaners, restaurants, e-commerce, etc) as an expected amenity.
If you consider the above 7 pendulums you may notice that they seem to converge to create an opportunity to benefit from such convergence. Building large smart and green apartment high-rise projects with financing by dollar holders is a typical current surf riding opportunity.
IF YOU WANT TO BE REMOVED FROM THIS MAILING LIST SIMPLY REPLY AND SAY SO.
11/12/08
THIS GREED WAS NOT GOOD.
More than six months ago my newsletter NATIONALISM vs. CAPITALISM foretold of a coming crisis caused by the unpatriotic behavior of the capitalists of Wall Street.
“Capitalism is the system of "economic freedom" and is the prime requisite of political freedom. Centralized control of economic activity is always accompanied by political repression. When transactions in a market economy are voluntary, such wide diversity of voluntary activity is a fundamental threat to repressive political leaders and greatly diminishes their power to coerce. Capitalism is vital for freedom to survive and thrive. A capitalist economy offers far more opportunities for individuals to raise their income through new professions or business ventures than do other economic forms. This potential is much greater than in socialist or centrally planned societies.”
“Most of us consider ourselves Nationalist Capitalists enjoying economic and political freedom, which is this nation’s predominant patriotic characteristic. The Patriot is devoted to his nation, its culture and will fight and sacrifice to defend it. A Capitalist has no such allegiance to any nation except to the idea of freedom to trade and earn money.
The free market is in real danger of being changed, at least for the near term, to a more nationalized, centrally controlled, socialized, subsidized shrinking market. In the free market the goal has always been the growth of the GDP. As long as the junk loans and the illogical credit scams were creating economic growth, the politicians and the regulators were enjoying the boom time ride of in the speculative bubble. Now that the bubble inevitably burst, the idea of free market has to be set aside so that governments can bring on their rescue packages.
As I often pointed it out in many past news letters, such rescues usually occurred in the past following major world wide calamities, i.e. world wars. The current economic collapse acts as a substitute, or maybe prelude for a world war. It will level out the playing fields by moving wealth from losers to winners.
Unintended consequences will come as a major shock and surprise to its many advocates and believers in “change”. Massive debts will be created to save gamblers, speculators and their political cronies while impairing the value of the dollar.
The question arises how Americans would react to the “changes” coming. Certainly they will be less inclined to trust their savings and retirement to the crooks and gamblers of Wall Street. On the other hand, how will they react to nationalization of health care, energy, and the decline of the entrepreneurial ideas that made America a world power? How will they react to the nationalization of all pension and retirement programs?
Huge public pressures will build. These will not be peaceful reactions, but potentially violent confrontations in the streets. Obama anticipated these events by his advocacy of a civilian national security force loyal to him. Other socialist leaders in the past have understood this problem and similarly prepared for it.
I am too old to see the inevitable return to the full potential of the free market ideology and the return of capitalism as a respected economic idea following the Obama era. Freedom will, however, return and new leaders will emerge. This is the real audacity of hope.
IF YOU WANT TO BE REMOVED FROM THIS MAILING LIST SIMPLY REPLY AND SAY SO.
11/17/08
SOUND BITES THAT BITE, OR TICKLE.
STIMULUS ANYONE?
In a throwback to the 1930s and 1970s, Demo cratic lawmakers are betting that America's economic ills can be cured by an extraordinary expansion of government. Government spending fails to stimulate economic growth because every dollar Congress "injects" into the economy must first be taxed or borrowed out of the economy. Thus, gov ernment spending "stimulus" merely redistributes existing income, doing nothing to increase produc tivity or employment, and therefore nothing to cre ate additional income. income.GovernmentGovernment spending has an abysmal track record of stimulating the economy. However, these repeated failures have not stopped lawmak ers from proposing and enacting a seemingly end less string of "stimulus" bills. Rather than redistributing money, lawmakers should focus on improving long-term productivity. This means reducing marginal tax rates to encourage working, saving, and investing. It also means promoting free trade, cutting unnecessary red tape, and streamlining wasteful spending that all weaken the private sector's ability to generate income and create wealth. Finally, it means strengthening edu cation—not just throwing money at it. Addressing long-term growth and productivity is more chal lenging than waving the magic wand of short-term "stimulus" spending—but a more productive economy will be better prepared to handle future economic downturns. (Brian Riedel)
PENTAGON PROBLEMS?
There is a "phalanx of determined military opposition" in the Pentagon to Obama's withdrawal plans in Iraq, which goes all the way up to Admiral Michael Mullen, chairman of the Joint Chiefs of Staff Committee and includes Petraeus and General Ray Odierno, the new commander in Iraq.
Peter D Feaver, a former National Security Council official in the Bush administration who was a strategic planner on the administration’s Iraq "surge" policy, to the effect that if Obama presses ahead with his 16-month withdrawal plan, "a civil-military crisis" might arise in Washington.
Obama had a battle of wits with Petraeus when they met in Baghdad in July and the general argued for a "conditions-based" withdrawal rather than the presidential candidate’s 16-month deadline. Porter says Obama refused to back down and told Petraeus, "Your job is to succeed in Iraq on as favorable terms as we can get. But my job as a potential commander-in-chief is to view your counsel and interests through the prism of our overall national security."
IRAN HAS PROBLEMS
The falling price of oil is producing national bankruptcy. The government admits that if the price of oil falls below $60 a barrel (which it has) and stays there (which it may, at least until the current recession is over), the nation will not be able to finance foreign trade (which is already having problems with increasingly effective U.S. moves to deny Iran access to the international banking system), or even the Iranian economy itself. The latter problem is largely self-inflicted, as president Mahmoud Ahmadinejad desperately borrows money to placate his few (heavily armed and fanatical) followers (about 20 percent of the population). The rest of the population has been in recession for years, and is getting increasingly angry over Ahmadinejad's mismanagement. The regime shows every sign of being in a paranoid panic over the hatred the Iranian people feel for the mullahs. Hence we have recently seen a huge drill in the major cities, wherein tens of thousands of security forces rehearse their actions in the event of an insurrection; new repression against major non-Persian ethnic groups, including a ban against the use of the Azeri language; and a mounting tempo of executions.
DOMESTIC TERROR?
At the same time that al Qaeda Internet chatter indicates a big operation is imminent, comes reports of the FBI calling around to ammonium nitrate dealers in the American Midwest, warning them that there have been several thefts of ammonium nitrate based fertilizers in the region lately, and to report any disappearances of ammonium nitrate products promptly.
BUY A GM CAR AND HELP THE SEX LIFE OF UNION MEMBERS
Lifestyle drugs -- chiefly Viagra -- are costing General Motors $17 million dollars a year and the cost is passed along to car, truck and SUV consumers. The blue pill is covered under GM's labor agreement with United Auto Workers, as well as benefit plans for salaried employees. GM executives estimate health care adds $1,500 to the price of each vehicle but they do not break out how much of the premium is caused by erectile dysfunction expenses.
IF YOU WANT TO BE REMOVED FROM THIS MAILING LIST SIMPLY REPLY AND SAY SO.
11/24/08
THE PRICE AD CONSEQUENCES OF THE OBAMA PRESIDENCY.
“THEY SOW THE WIND AND REAP THE WHIRLWIND.
The Bible uses these words to describe the concept of unintended consequences. Most Americans and the media are astonished by the speed by which this economic crisis mushroomed to become a worldwide calamity. The Democrats, George Soros and the leftist media spent years undermining our economy by never reporting anything that was good, but always concentrating on bad news and lying about economic conditions. The goal was simple. Destroy the Bush “illegitimate” presidency. They did not read their Bible. Sowing the wind brought the whirlwind. “(Newsletter #108)
You heard about the “domino theory” and must have seen dominos lined up and when you push the first one the entire line goes down. Powerful forces throughout the world combined to elect Obama president and they lined up the dominos to help him. It was not enough to talk the economy down. They needed a much more convincing argument to prove that the economy was bad. Here is where OPEC, the Russians, Venezuela, Iran, Libya and our Arab “friends” came to assist by raising oil prices to unprecedented artificial highs to occur before the presidential elections. Assisting them were experienced speculators headed by the master himself, George Soros.
The subprime poison infected the housing market for several years and Congress could have healed the economy by more stringent regulations. The Democrats refused to stop the poison from spreading, because they believed that they would be the beneficiaries of a collapsing economy calculated to occur just before the elections. They watched gleefully as the housing market collapsed at the same time gasoline prices rose to unbearable levels.
The dominos started to fall and suddenly we had a global financial crisis causing our equity markets to collapse.
The worst dominos are yet to fall. Here they come.
First the housing bubble –the credit markets –consumer confidence- consumer spending –unemployment - commercial real estate market –private pensions- banks – insurance companies, - health care and more dominos will be falling.
Americans will move away from risk assets and will start saving instead of consuming in an attempt to restore their wealth lost in the housing bubble and the equity markets.
Obama will now have every reason to socialize medicine, pensions, banking, industries and many other aspects of the American economy. It will not be fast enough and meaningful enough for most of his followers. Capitalism may be threatened with extinction and the affluent lifestyle we are so accustomed to will diminish. Obama will indeed spread the wealth by using massive borrowing, which will eventually lead to unprecedented inflation even exceeding the period of the Carter presidency.
The dominos are still falling and the country needs CPR -Capitalist Patriotic Republic to stop the bleeding. We need CPR and we shall have it! It will be born soon. Since nobody is interested in labor pains, I will let you know when the baby is born. More than 50 million of us can not be kept quiet!
I F YOU WANT TO BE REMOVED FROM THIS MAILING LIST SIMPLY REPLY AND SAY SO.
12/3/08
I HAVE BEEN ABSENT DUE TO MEDICAL REASONS, BUT BEEN READING FOREIGN NEWSPAPERS. HERE IS WHAT PEOPLE READ IN THEIR NEWSPAPERS AROUND THE WORLD. DON'T LOOK FOR IT IN YOUR LOCAL PAPER.
MOSCOW
The United States is reportedly working on the new currency, the amero, which will be common for the USA, Mexico and Canada. The unstable financial situation in the world, the collapsing oil prices and the growing foreign debt of the United States may eventually crush the US dollar as the world’s major currency. Needless to say that the US authorities reject the rumors and promise to keep the dollar afloat.
Amero notes have no portraits of US presidents on them and resemble the Belarussian rubles. For example, there is an image of a deer depicted on a 50-amero note, whereas a picture of a pyramid of Mexican Indians can be seen on a 100-amero note.
The amero follows the model of the European Union and its euro. It brings up the idea that the new currency can be adopted by the USA, Canada and Mexico within the scope of the North American Union, which the Bush administration established in 2005 under the Security and Prosperity Partnership of North America (SPP).
LEBANON
There is little doubt that before the US presidential election, most Iranians - like solid majorities almost everywhere around the world - were hoping that Barack Obama would win. The difference is that for Iran's leaders, the realization of this wish has heaped added responsibility on their shoulders: With the convenient excuse of the consistently hostile George W. Bush coming to an end, Tehran is liable to find itself even more isolated if it fails to take advantage of opportunities to fashion a new relationship with Washington.
If those around Obama and the president himself conclude that they are being strung along, that the Iranian leadership is playing for time, that they are exposing themselves to the inevitable accusations of "appeasement," the thaw will end.
Now that someone is listening, this is no time to get cagey. The best course for Tehran is a straight one based on its legitimate interests. Population and resources mean that Iran is already the primary conventional power in the region, a status that would not be significantly enhanced (and might actually be mortally endangered) by possession of nuclear weapons. On the other hand, sanctions and mismanagement mean that Iran's economy is a basket case, a situation that could be much improved by using nuclear power to free up more of the country's oil and gas reserves for lucrative exports. On the regional level, the Iranians have outmaneuvered the Americans and the Israelis so thoroughly that even some committed Islamophobes now acknowledge that Iran is the indispensable partner in any effort to forge a comprehensive peace. The key factor here is that influence is a commodity like any other: Its value may be inordinately high right now, but if it is not put to good use, the bottom might well fall out.
CANADA
Trashing the Constitution to allow for Obama’s hidden birth certificate
By Bob Parks Wednesday, December 3, 2008
Obama has successfully merged Chicago with Clinton-era politics. With that, we now have the Three D’s rearing their ugly heads again. For those of you who were in elementary school when Bill Clinton was president, the three D’s stood for “deny, delay, destroy”.
In this case, with regard to the whole Barack Obama birth certificate stall, the “destroy” part is in regard to the US Constitution, and it takes time (deny and delay) to do this.
Barack Obama has lawyers working behind the scenes to create a backlash against those who believe only a natural born citizen should be able to send our sons and daughters to war.
When the s#@8t finally does hit the fan, as I’ve said before, people won’t be angry with Barack Obama for knowingly placing the nation in the murky waters we will be in by perpetrating the Milli Vanilli of all frauds. No, the Obamanation will be angry that an obviously racist law is the only thing preventing Mr. Hope & Change from achieving his true destiny.
There are millions of people in this country today who are not eligible to be President of the United States, and have resigned themselves to that fact. Some of these people have found other ways (both good and bad) to add to the public dialogue, but they understand that the rules DO apply to them. Barack Obama (hubris redefined) and those pulling his strings believe that no rule applies to them, and if that is truly the case and they wish to tear the Constitution into pieces, keeping the ones the like, then they are more dangerous than George W. Bush was ever accused of.
This is now quite more than a simple refusal to produce a document, and if this man gets away with this and lawyers (with the help of the millions of duped) succeed in trashing the Constitution, it could one day open the door for more abomination.
Can you say President Soros?
MUMBAI
Mumbai hospital doctors were horrified by the condition of the six Israeli bodies recovered from the smashed, blood-spattered rooms of Chabad Center Monday. Local and Israeli pathologists confirmed they were tortured by their Islamist terrorist captors before being bound together and killed in cold blood.
Asked what was different about the victims of the incident, another doctor said: "It was very strange. I have seen so many dead bodies in my life, and was yet traumatized. A bomb blast victim's body might have been torn apart and could be a very disturbing sight. But the bodies of the victims in this attack bore such signs about the kind of violence of urban warfare that I am still unable to put my thoughts to words," he said.
Asked specifically if he was talking of torture marks, he said: "It was apparent that most of the dead were tortured. What shocked me were the telltale signs showing clearly how the hostages were executed in cold blood," one doctor said.
The other doctor, who had also conducted the post-mortem of the victims, said: "Of all the bodies, the Israeli victims bore the maximum torture marks. It was clear that they were killed on the 26th itself. It was obvious that they were tied up and tortured before they were killed. It was so bad that I do not want to go over the details even in my head again," he said.
##
IF YOU WANT TO BE REMOVED FROM THIS MAILING LIST SIMPLY REPLY AND SAY SO.
12/8/08
YEAR END ECONOMIC REVIEW AND FORECAST
Tibby Weston
We are in a recession and face the possibility of a depression if economic policies of the 1930s are repeated. I just heard a proposal to tax imported cars to help Detroit. This sounds like the protectionist Smoot-Hawley-style attack on world trade of the 1930s, a major contributor to the Great Depression suffered by this nation, a primarily US phenomenon, caused and prolonged by flagrant US economic policy errors of the FDR administration.
Inflation or deflation can occur during a recession. We had stagflation during the Jimmy Carter years, which is a combination of inflation and recession. A combination of deflation and recession resembles depression, but it is highly unlikely that deflation can continue for a prolonged period of time, because of the massive amount of dollars dumped on the economy by the limitless dollar creation of the Federal Reserve.
You do not have to be a genius or a skilled economist to realize that the increase in the money supply, monetary inflation, without increase in the production of goods must inevitably lead to price inflation. There will be too much money chasing too few goods making the price of goods rise.
The shrinking in consumer spending causes deflation right now. Most thinking Americans suddenly realized that the credit orgy is over and they are watching their dollars. Less money is chasing a lot of goods, which causes the drop in prices and makes the dollar more valuable. Cash will be king for a short time. When the general price level goes down, each dollar buys more goods and services.
Once we understand the above balancing act we must realize that if productivity increases, employment rises and the world economy expands, those multi trillion dollars dumped into the world economy would not create inflation, because there would be no monetary inflation. Lots of money would be chasing lots of goods. Money supply would not be excessive for the expanding GDP.
Unfortunately the world economy is shrinking, productivity is reduced and consumer confidence is diminishing. Oil, minerals and agricultural prices are going down and the rest of the world finds their economic conditions imperiled by declining US demand for imports. Critical indicators are the rise of unemployment, business bankruptcies and massive bailouts requiring unprecedented dollar creation.
The US Federal Reserve is expanding our monetary base by more than $11 billion a day since September to nearly $1.5 trillion, which represents an increase of 79.02% since October 2007. 2007.WhatWhat they are doing is unprecedented in recorded history. On an annualized basis, the run rate in just the last few months alone works out to more than 369.92% per year. And they are still doing it. They are ready to inject another trillion dollars to bail out banks, insurance companies, Wall Street, possibly Detroit's “Big Three” automakers and just about anybody else who “needs” a handout to overcome years of incompetence, financial malfeasance – and plain old unpatriotic capitalist greed. And here comes Obama with the bottomless checkbook! Deflation in the next six months is not the real enemy. It’s the coming inflation, stupid! should be the slogan of the day.
There has not been a recession in history that wasn't followed by inflation. Not too far in the future suddenly lots of dollars will be chasing diminishing goods and services. Inflation will return, both domestically and internationally, and will quickly reach the double-digit level.
Faced with inevitable inflation to follow a period of deflation causes uncertainty about the future purchasing power of the dollar and discourages investment and saving. It makes it difficult for businesses to plan for the future. Normally it takes 9-12 months for the sudden increase in the money supply to generate the inflationary effect. Investors would be wise to bolster their defenses now while everybody is looking at deflation. A good way to invest is through Treasury Inflated Protected Securities, or TIPS.
Soon we will have to learn the lesson of inflation again by suffering it. I have been through a hyperinflation but telling you repeatedly what I learned from it is fruitless. Inflation is, as Mark Twain said about trying to carry a cat home by its tail, "it is a lesson that can be learned no other way".
###
12/10/08
IN VINO VERITAS.
I was quietly enjoying a glass of hot Riesling with mulling while watching tiny snowflakes drift by my window when I realized that I have not seen any real snowflakes in more than a decade. Glancing at the financial page of the paper I also noticed something just as rare. Investors are buying Treasury Bills that provide a zero interest rate.
Whenever I was telling my friends in the past that in Japan banks do not pay interest on your savings but charge you for keeping your money, people would look at me with obvious doubt in my sanity. So we reached another unexpected fork in the road. We are so nervous about the future that we are willing to forego a return ON our money, for a guaranty of the return OF our money. Alas we are talking about the dollar.
In Europe people would keep their money under the mattress or in jars, rather than trust the banks. The great economic progress made in the US was based on the fact that people did trust their banks and deposited their money. Bankers then could lend the money to qualified borrowers tenfold and the economy boomed.
Many folks in Europe did not even trust the money. They buried gold coins in their gardens or hid them under thresholds. These folks were right. Let me tell you about a Hungarian currency called the “pengö”. This is a true story.
Pengö was introduced in Hungary as national currency on December 30, 1926. For more than 19 years it was a reputable currency exchangeable for foreign currencies.
The pengö lost value after the Second World War, suffering the highest rate of hyperinflation ever recorded. After the end of the World War II the inflation in Hungary was 4.19x 1016 percent per month. At times prices doubled every 15 hours. Before 1945, the highest denomination was 1,000 Pengö. By the end of 1945, it was 10,000,000 Pengö. But the highest denomination in mid-1946 was 100,000,000,000,000,000,000 (100 quintillion) Pengö. The Hungarian economy could only be stabilized by the introduction of a new currency. So on August 1, 1946, the Forint, which is still used today, was introduced at an exchange rate of 400,000,000,000,000,000 000,000,000,000 Pengö to One Forint..
And you thought a trillion was a big number!
Will you have to learn the difference between short scale and long scale numbers? Will the US Congress switch to long scale to make numbers more palatable for a gullible electorate? Combining our national debt with our recent bail out programs Congress has committed the entire annual GDP of the nation with no end in sight. We would need to work an entire year without any income to pay off the debt. We are headed either for default on our debts and bankruptcy as a nation, or something far less honorable: a cheapening of the debts we have incurred by inflating and destroying the dollar thus robbing our creditors of what we owe them and robbing our own people of the value of what they have earned. The country needs CPR. It is coming soon. Watch for an announcement in this newsletter.
”I experienced the Hungarian inflation that followed the liberation. People had to be paid in bundles of cash daily because they could not have handled more than the daily pay in paper money. In restaurants, the prices on the menu, written on a blackboard were changed during the meal. The price of the food increased while I sat there. Inflation was exploding. I bought a pair of boots. They cost seven grams of gold, translated into currency plus twenty percent. The twenty- percent was for the time needed for the money to be taken to the black market and exchanged for gold. I used bank notes in denominations of millions to pay for lunch.
A friend with the new government confidentially disclosed that government agents bought gold and foreign exchange on the black market to put the pengö into circulation. This was the way they planned to accumulate enough hard currency and gold to eventually issue a new, strong Hungarian currency.” (THE VISION)
Perhaps now you will begin to understand my motto.
“I may not know the way out, but I know lots of ways not to go.”
###
IF YOU WANT TO BE REMOVED FROM THIS MAILING LIST SIMPLY REPLY AND SAY SO.
12/14/08
BACKWARDATION
It is a real word and can by used next time you play SCRABBLE. It also represents an event that happened last week on Wall Street and the whole monetary world is in an uproar trying to explain it, or explain it away. It involves the price of gold. Let me try to explain it to the best of my knowledge.
Let us assume that gold is selling for $1000 per ounce. On the futures market, however, it shows that you can buy gold delivered in February for $900 per ounce. Even the least educated person would understand that if you sell your gold now and buy it back in February, you could make a $100 profit in 60 days which is a 60% return on an annualized basis.
The phenomenon has never occurred before. Gold prices have been manipulated by Central Banks by dumping gold on the world market to keep the price from rising thus revealing the deterioration of their currency. " In the past, Federal Reserve Chairmen may have felt it necessary to support regular attacks on gold prices to dissuade conservative people from putting a majority of their capital into gold. Now, however, the world economy needs much higher gold prices in order to devalue paper money. If the Fed continued to support gold price suppression, that would collapse the stock market far deeper than they can afford, most insurers will end up bankrupt, and there will be no hope of avoiding Great Depression II. " *
The February COMEX futures price is a result of such Fed manipulations. The public, however, is not buying the promise of low priced February delivery. They want their gold now and the US mint had to suspend the production of some gold coins due to the unprecedented demand for them. The US$ has not collapsed yet, but if you try to get gold or silver, you can’t. If you order it online you are told it’s a 2-month wait. And you have to pay upfront. If you go to coin stores they are out and say it’s a 2-month wait. Financial writers are saying buy gold, ‘if you can get it’. The simple answer for this is that gold and silver are already anticipating the currency crises coming in 09.
Here are some quotes from an article written by Prof. Antal E. Fekete, a well know gold bug, which was published throughout the world last week.
"A landmark in the saga of the collapsing international monetary system was signaled on December 2, when gold went to backwardation for the first time in history...This is a premonition of a coming gold fever of unprecedented dimensions that will overwhelm the world as soon as its significance is fully digested by the doubting Thomases...the gold basis is a pristine, incorruptible measure of trust, or the lack of it in case it turns negative, in paper money. Very few people realize what is going on and, of course, official sources and the news media won't be helpful to them to explain the significance of all this.
The bottom line is that there is no fever like gold fever. It is akin to St Vitus' dance that swept through the Christian world just before the year 1,000 AD, affecting all the people who expected the end of the world to happen at the turn of the millennium. It was far worse than the mania that swept through the world affecting all the people a thousand years later who expected the 2K disaster to happen.
The coming gold fever must be distinguished from tulipomania in February 1637, when one single tulip fetched the equivalent of 20 times the annual income of a skilled worker. Gold fever is as different from a bubble as real gold is from fools' gold. It is visceral. It has to do with one's instinct for survival. It has no patience with logical arguments. It is highly contagious, ultimately affecting everybody. A bubble that never pops.
You may ridicule the idea that, during a prolonged backwardation, all offers to sell gold will be withdrawn. But a serious analyst must answer the question why hundreds of millions of people having gold coins under the mattress and in the cookie jar refuse to take the bait of "risk-free" profits offered by backwardation. Such a thing would never ever happen to a non-monetary commodity."
You may read the entire article in one of many sites it was published: http://www.gold-eagle.com/gold_digest_08/fekete121008.html
Central banks are trying everything to avoid a depression, but their efforts are failing. All that is happening is that they are massively increasing the public debts and money raised is used to bail out the very banks that caused the downfall of the dollar. They are using taxpayer money to bail out everything they can. It’s a disaster, and rapidly doubling the national debt of the US, and others including EU nations. The US accumulated a $9 trillion national debt in 240 years, and in less than 18 months added another $ 8 trillion.
There is a fearful flight for safety by investors and as a result, the US just issued $30 billion of 4 week Ts at Zero this last week! The US 3 month Ts are also yielding zero. This shows the state of panicky flight to financial safety!
As the confidence in the US treasuries will start to diminish when the investors realize that the US has no other option left than to inflate the dollar, the flight to safety will abandon Treasuries and the price of gold will skyrocket as being the only remaining haven. At that point the US Treasury bond yields will begin rise drastically.
"Anyone who reads the written works of our Fed Chairman knows that Bernanke’s long term plan involves devaluing the dollar against gold. This is the exact opposite of most prior Fed Chairmen. He has overtly stated his intentions toward gold, many times, in various articles, speeches and treatises written before he became Fed Chairman. He often extols the virtues of former President Franklin Roosevelt’s gold revaluation/dollar devaluation, back in 1934, and credits it with saving the nation from the Great Depression. According to Bernanke, devaluation of the dollar against gold was so effective in stimulating economic activity that the stock market rose sharply in 1934, immediately thereafter. That is something that the Fed wants to see happen again
It is only a matter of time before gold is allowed to rise to its natural level. Assuming that about half of the current increase in Fed credit is eventually neutralized, the monetized value of gold should be allowed to rise to between $7,500 and $9,000 per ounce as the world goes back to some type of gold standard. In the nearer term, gold will rise to about $2,000 per ounce, as the Fed abandons a hopeless campaign to support COMEX short sellers, in favor of saving the other, more productive, functions of the various banks and insurers.
Revaluation of gold, and a return to the gold standard, is the only way that hyperinflation can be avoided while large numbers of paper currency units are released into the economy. This is because most of the rise in prices can be filtered into gold. As the asset value of gold rises, it will soak up excess dollars, euros, pounds, etc., while the appearance of an increased number of currency units will stimulate investor psychology, and lending and economic output will increase, all over the world. Ben Bernanke and the other members of the FOMC Committee must know this, because it is basic economics." *
Expect the Chinese start dumping their dollars by acquiring valuable assets in the US before the value of the dollar diminishes. Why not buy the US auto industry and castrate our ability to respond to a military threat?
Stop me before I get carried away. Let me pull in my antennae.
Perhaps I should let collective ignorance remain the wisdom of the times.
IF YOU WANT TO BE REMOVED FROM THIS MAILING LIST SIMPLY REPLY AND SAY SO.
* See http://seekingalpha.com/article/109210-the-manipulation-of-gold-prices?source=article_sb_popular
12/18/08
These are periodic intelligence reports for those who have expressed interest in the past to read brief reports about what is really going on behind the scenes. Most of such material is boring especially if you need to read more than a 100 a day for intel analysis as more than a 100,000 in the CIA and other intel organizations must do. Much of the old technology employed by N. S. A. no longer functions due to the encryption technology now employed and the incredible volume of world wide tele communications taken place daily.
12/23/08
What is Christmas really about? About one-third of the world will celebrate Christmas, but at least another third of the world never heard of Christmas. Unfortunately most of those who celebrate do not have an understanding of the true meaning of the Christmas spirit. One of my fondest memories is that during the street fighting in Budapest in 1944 in a bitter cold storm I heard people singing Silent Night in a cellar. I took a chance and approached the group and found out from them that this was indeed a special night, because the Russian Army had completely surrounded the city and the end to the fighting and the coming liberation was expected to be just days away. They had a tiny Christmas tree with some candy wrapped in paper hanging from it for a few children. As I was standing with them some Hungarian soldiers came and joined in. We all stood around in peace and shared something , but my memory fails if we shared food or drinks. We certainly shared the spirit of Christmas before returning to the fight for our lives.
Here is an American memory of a true Christmas.
This is what Christmas is all about....
Pa never had much compassion for the lazy or those who squandered their means and then never had enough for the necessities. But for those who were genuinely in need, his heart was as big as all outdoors. It was from him that I learned the greatest joy in life comes from giving, not from receiving.
It was Christmas Eve 1881. I was fifteen years old and feeling like the world had caved in on me because there just hadn't been enough money to buy me the rifle that I'd wanted for Christmas. We did the chores early that night for some reason. I just figured Pa wanted a little extra time so we could read in the Bible.
After supper was over I took my boots off and stretched out in front of the fireplace and waited for Pa to get down the old Bible. I was still feeling sorry for myself and, to be honest, I wasn't in much of a mood to read Scriptures. But Pa didn't get the Bible, instead he bundled up again and went outside. I couldn't figure it out because we had already done all the chores. I didn't worry about it long though, I was too busy wallowing in self-pity. Soon Pa came back in.. It was a cold clear night out and there was ice in his beard. "Come on, Matt," he said. "Bundle up good, it's cold out tonight." I was really upset then. Not only wasn't I getting the rifle for Christmas, now Pa was dragging me out in the cold, and for no earthly reason that I could see. We'd already done all the chores, and I couldn't think of anything else that needed doing, especially not on a night like this. But I knew Pa was not very patient at one dragging one's feet when he'd told them to do something, so I got up and put my boots back on and got my cap, coat, and mittens. Ma gave me a mysterious smile as I opened the door to leave the house. Something was up, but I didn't know what..
Outside, I became even more dismayed. There in front of the house was the work team, already hitched to the big sled. Whatever it was we were going to do wasn't going to be a short, quick, little job. I could tell.. We never hitched up this sled unless we were going to haul a big load. Pa was already up on the seat, reins in hand. I reluctantly climbed up beside him. The cold was already biting at me. I wasn't happy. When I was on, Pa pulled the sled around the house and stopped in front of the woodshed. He got off and I followed. "I think we'll put on the high sideboards," he said. "Here, help me." The high sideboards! It had been a bigger job than I wanted to do with just the low sideboards on, but whatever it was we were going to do would be a lot bigger with the high side boards on.
After we had exchanged the sideboards, Pa went into the woodshed and came out with an armload of wood - the wood I'd spent all summer hauling down from the mountain, and then all Fall sawing into blocks and splitting. What was he doing? Finally I said something. "Pa," I asked, "what are you doing?" You been by the Widow Jensen's lately?" he asked. The Widow Jensen lived about two miles down the road. Her husband had died a year or so before and left her with three children, the oldest being eight. Sure, I'd been by, but so what?
Yeah," I said, "Why?"
"I rode by just today," Pa said. "Little Jakey was out digging around in the woodpile trying to find a few chips. They're out of wood, Matt." That was all he said and then he turned and went back into the woodshed for another armload of wood. I followed him. We loaded the sled so high that I began to wonder if the horses would be able to pull it. Finally, Pa called a halt to our loading, then we went to the smoke house and Pa took down a big ham and a side of bacon. He handed them to me and told me to put them in the sled and wait. When he returned he was carrying a sack of flour over his right shoulder and a smaller sack of something in his left hand. "What's in the little sack?" I asked. Shoes, they're out of shoes. Little Jakey just had gunny sacks wrapped around his feet when he was out in the woodpile this morning. I got the children a little candy too. It just wouldn't be Christmas without a little candy."
We rode the two miles to Widow Jensen's pretty much in silence. I tried to think through what Pa was doing. We didn't have much by worldly standards. Of course, we did have a big woodpile, though most of what was left now was still in the form of logs that I would have to saw into blocks and split before we could use it. We also had meat and flour, some we could spare that, but I knew we didn't have any money, so why was Pa buying them shoes and candy? Really, why was he doing any of this? Widow Jensen had closer neighbors than us; it shouldn't have been our concern.
We came in from the blind side of the Jensen house and unloaded the wood as quietly as possible, then we took the meat and flour and shoes to the door. We knocked. The door opened a crack and a timid voice said, "Who is it?" "Lucas Miles, Ma'am, and my son, Matt, could we come in for a bit?"
Widow Jensen opened the door and let us in. She had a blanket wrapped around her shoulders. The children were wrapped in another and were sitting in front of the fireplace by a very small fire that hardly gave off any heat at all. Widow Jensen fumbled with a match and finally lit the lamp.
"We brought you a few things, Ma'am," Pa said and set down the sack of flour. I put the meat on the table. Then Pa handed her the sack that had the shoes in it. She opened it hesitantly and took the shoes out one pair at a time. There was a pair for her and one for each of the children - sturdy shoes, the best, shoes that would last. I watched her carefully. She bit her lower lip to keep it from trembling and then tears filled her eyes and started running down her cheeks. She looked up at Pa like she wanted to say something, but it wouldn't come out.
"We brought a load of wood too, Ma'am," Pa said. He turned to me and said, "Matt, go bring in enough to last awhile. Let's get that fire up to size and heat this place up." I wasn't the same person when I went back out to bring in the wood. I had a big lump in my throat and as much as I hate to admit it, there were tears in my eyes too. In my mind I kept seeing those three kids huddled around the fireplace and their mother standing there with tears running down her cheeks with so much gratitude in her heart that she couldn't speak.
My heart swelled within me and a joy that I'd never known before, filled my soul. I had given at Christmas many times before, but never when it had made so much difference. I could see we were literally saving the lives of these people.
I soon had the fire blazing and everyone's spirits soared. The kids started giggling when Pa handed them each a piece of candy and Widow Jensen looked on with a smile that probably hadn't crossed her face for a long time. She finally turned to us. "God bless you," she said. "I know the Lord has sent you. The children and I have been praying that he would send one of his angels to spare us."
In spite of myself, the lump returned to my throat and the tears welled up in my eyes again. I'd never thought of Pa in those exact terms before, but after Widow Jensen mentioned it I could see that it was probably true. I was sure that a better man than Pa had never walked the earth. I started remembering all the times he had gone out of his way for Ma and me, and many others. The list seemed endless as I thought on it.
Pa insisted that everyone try on the shoes before we left. I was amazed when they all fit and I wondered how he had known what sizes to get. Then I guessed that if he was on an errand for the Lord that the Lord would make sure he got the right sizes. Tears were running down Widow Jensen's face again when we stood up to leave. Pa took each of the kids in his big arms and gave them a hug. They clung to him and didn't want us to go. I could see that they missed their Pa, and I was gladthat I still had mine.
At the door Pa turned to Widow Jensen and said, "The Mrs. wanted me to invite you and the children over for Christmas dinner tomorrow. The turkey will be more than the three of us can eat, and a man can get cantankerous if he has to eat turkey for too many meals. We'll be by to get you about eleven. It'll be nice to have some little ones around again. Matt, here, hasn't been little for quite a spell." I was the youngest. My two brothers and two sisters had all married and had moved away.
Widow Jensen nodded and said, "Thank you, Brother Miles. I don't have to say, May the Lord bless you, I know for certain that He will."
Out on the sled I felt a warmth that came from deep within and I didn't even notice the cold. When we had gone a ways, Pa turned to me and said, "Matt, I want you to know something. Your ma and me have been tucking a little money away here and there all year so we could buy that rifle for you, but we didn't have quite enough. Then yesterday a man who owed me a little money from years back came by to make things square. Your ma and me were real excited, thinking that now we could get you that rifle, and I started into town this morning to do just that,but on the way I saw little Jakey out scratching in the woodpile with his feet wrapped in those gunny sacks and I knew what I had to do. Son, I spent the money for shoes and a little candy for those children. I hope you understand."
I understood, and my eyes became wet with tears again. I understood very well, and I was so glad Pa had done it. Now the rifle seemed very low on my list of priorities. Pa had given me a lot more. He had given me the look on Widow Jensen's face and the radiant smiles of her three children.
For the rest of my life, whenever I saw any of the Jensens, or split a block of wood, I remembered, and remembering brought back that same joy I felt riding home beside Pa that night.. Pa had given me much more than a rifle that night, he had given me the best Christmas of my life.
Don't be too busy today. Share this inspiring message. God bless you!
12/31/08
THE LAST OF BAD NEWS FOR 2008. It is hard to believe that such a world wide conspiracy could exist. There are conspiracy nuts everywhere. Yet if there is another explanation I'd like to hear from someone who connects the dots in a different way. Could all these events just occur by accident due to the greed, stupidity and ineptness of political leaders? The world economy is being socialized and free enterprise capitalism is being destroyed as we watch helplessly. The sudden rise of Obama coming to power on a manipulated economic disaster could not just be a historic coincidence. He was raised, nurtured , educated by communists. His core beliefs are Marxist. He rode into office on a wave of economic destruction unparalleled in history. Will the same people who created the economic collapse be able to turn the collapse around and restart the world's economies? It is not pleasant to read the following article, but if it is true, what can we do? Who can do it? When is it time to start? Will 2009 be the year to reverse our slide into oblivion?
You are hereby challenged to think and answer because your life will never be the same as it was just one year ago at the beginning of 2008. Just think what it may be a year from now!
IF YOU WANT TO BE REMOVED FROM THIS MAILING LIST SIMPLY REPLY AND SAY SO.
