FED scam #2.

The first scam of the FED was when the 'mark to market' valuation of real estate bonds was introduced, put the big banks in a tail-spin, froze the money in the banks and allowed the fed govt to get control of some banks, GM and Chrysler. The economic chaos was instantaneous and allowed the election of a communist, Obama. This was a modern recycling of the election of Roosevelt, who came to power in the wake of bank failures at the end of the 20's.

A sequel is in the works, the defaulting of commercial real estate. Since, the 'mark to market' rules declare a "troubled asset" as of zero value, this will bankrupt another 400 banks on paper and allow the FED to "intervene on their behalf." This second wave of asset dist ruction will subtract maybe another 800 Billion from the wealth of US citizens, and transfer this wealth to the federal govt as it "replaces" these assets in the banks and thus becomes the owner of these assets.

In fact, this second, planned expropriation of property is as illegal as the first wave of expropriation was.

The window dressing for this expropriation is that office vacancies have risen to where commercial real estate is going belly up. In fact this is not true.

While, vacancy rates are rising, they are no worse than they were in 2002. What is the difference is the deliberate effort to destroy US assets and then the FED replaces them with monopoly money. The result of this process is expropriation. This is grand theft, unauthorized under our laws and constitutes high treason.

Sing us a song you old Geezerman

Sing us a song you old Geezerman

The Fall is soon coming, it’s cool at night
The tree frogs are quiet, or near,
And the cicadas all fall dead to the ground,
The toads have no black snakes to fear.
The first color paints our sumacs red,
The next is the dogwood that goes,
Then the maples will receive their frosty kiss
And put on their golden-red clothes.


The Day of the Reckoning is near.

Sing us a song you old Geezer man,
Make us all happy tonight
Tell us the fall of the Obamabots,
That everything turns out right.

Millions lost jobs they’re unemployed
Since the FED declared the banks
Had no money under revised rules,
Just like under Roosevelt.
Obama pretended to fix the mess,
But he only made it all worse.
He purposely ruined our industry
And deserves our Country’s worst curse.

The Day of the Reckoning is near.

Sing us a song you old Geezer man,
Make us all happy tonight
Tell us the fall of the Obamabots
That everything turns out right.

Grandma is sick and needs surgery,
Her death panel says she’s too old,
But she will get near end life counseling
Her end will be painless we’re told.
The IRS reads our bank account,
We can’t save us nary a cent
That those folks will not know or hear of it
And collect their fifty percent.

The Day of the Reckoning is near.


Sing us a song you old Geezer man,
Make us all happy tonight
Tell us the fall of the Obamabots
That everything turns out right.

I see the networks they burn and fail
To fool people because we knew it
That the proper way to handle the Media
Is one Reporter to one bullit.
And the Professors shut up as Harvard’s in flames
And Hollywood’s destroyed in the fire.
And the Nation’s Capitol moves to Missouri
And an Alaskan’s President for a while.

This is the Song of the Geezer Man
To keep you all happy tonight.
I call for the fall of the Obamabots
I call for you join in the fight.


The Day of the Reckoning is near.

Geezer Bela in Exile
Aug 28, 2009

Economic parameters: Aug 29 update.

The state of the US Economy and the Stock Market.

Not much change to report here. Both, the Economy and the Stock Market are now driven by and distorted by the enormous influence of the government. The deflationary policies (i.e. mark to market accounting) put in place on Sep 15, 2008, are still in place. This provides the pretext for the government and the FED intervening in the Markets far beyond their designated and legal authority. There are several goals that the government is pursuing: 1. obtain ownership of critical industries (financial and automotive); 2. slow economic growth; 3. make the govt the source of income for millions and redistribute income; 4. set the stage for the govt controlling (and distributing) 50% of the national income. The deflationary pressure created is balanced by creating new bubbles in various investments: treasuries, student loan bonds, etc. Most of the economic moves take a long time to make themselves felt, but we are on the road to inflation, economic stagnation and a gold buying panic. Stocks are continuing to advance as shown by the chart of the S&P 500. The advances are slowing.

The next subject to tackle is the price of gold. The early reverse head and shoulder formation in weekly gold prices has been aborted. In its place we find a wedge formation of lower highs and higher lows. The author of the graph has left his picture in the corner (Larry Edelson). This is shown clearly in the weekly price gold chart, but also on the daily price chart. What the wedge formation is telling us is that gold prices will break out of this range and probably on the upside.

The US dollar continues to lose value. The goal of the government is to do this slowly rather than all of a sudden. For the Socialists in control of our country, this has several advantages. First, it allows them to make a pretence that the country will repay its debt in cheaper dollars. Second, as assets (stocks, bonds, etc) adjust for inflation, the inflationary increase in apparent value, will be taxed. That way the government will take away more wealth and distribute it. The Obamabots need to stretch out the length of their legal plunder so they can continue to distribute their loot for years. There is a discrepancy between the way the daily value of the dollar shows up and its weekly value. This discrepancy is due to the sampling of data covered.

Finally, we will consider the price changes in oil. What is clear is that oil prices have risen while oil supplies have increased. So, the rise in price is not due to a shortage but a loss of the value of the dollar. In case you are interested, the storage glut is in jet fuel and diesel.

The final graphic shows the source of oil imports into the United States. For those who say that we are involved in Middle East politics because of our oil imports, the answer is this: most of our oil imports do not come from Saudi Arabia. We try to be an honest broker in the Middle East, because Israel is an ally and because the Jihadists are our enemies.

Fascist trickery of Obamabots continues.

I have already alerted people to the machinations of the Obamabots to smear their opposition. It was done in Germany before Hitler took over. It is in the book of Saul Alinsky (Rules for Radicals). We saw the attempt at a townhall meeting organized by the Obamabots to attempt to smear the opposition. One of their bots was carrying a swastika sign. It was to buttress the charge by Nancy Pelosi that opponents of ObamaCare were swastika-carrying people. Now we have the ploy in Colorado where a transgender Obamabot had vandalized Democrat Party headquarters so the crime could be blamed on opponents of ObamaCare. The perp was caught.

This is not the end of these attempts. They are simply dry runs for bigger things. Will the Obamabots burn down the Capitol like Hitler's Brown Shirts burned down the German Parliament? Only time will tell.

The Kennedy Mafia.

The Kennedy clan is a history of crime, boorish behavior and the btrayel of the Country. It began with Joe Kennedy whose shady business provided the start of his own career and the financial stake for his sons.

John Kennedy was maybe the smartest, who conned the people with his physical prowess while he suffered from a serious disease. The Liberal Press has much to answer for. JFK used the White House pool to play with his Secretaries. From John, the intelligence began to peter out and personal behavior got worse. Bobby Kennedy was a suspect in the death of Marilyn Monroe, we know he had an affair with her. When it came to Ted Kennedy, the misbehavior got worse. Public fornication in a restaurant and the death of Jo Kopeckne rendered him unfit to serve. Yet he was re-elected.

Teddy Kennedy left us a legacy of failed Liberal programs and his latest (Socialized Medicine) is to pay the way for a fascist dictatorship. We are reluctant to say critical things about the dead, but the open adulation of the Press for a reprobate and a man involved in manslaughter is just sickening.

The Purposeful Destruction of American Capitalism

that is what Rush Limbaugh called the work of the Obama regime. I can only agree and say...I told you so. Obama and the people behind him have no intention at "fixing" the financial system. What they have in mind is the seizing of America's banks and businesses by first bankrupting them then "bailing them out" with monopoly money from the FED so the Obamabots can control such enterprises. The scenario unfolding is the replay of the Communist takeover in Eastern Europe, disguised as an economic crisis. Recognizing it for what it is is the first step in stopping it. I do not know if can be done peacefully and the specter of a civil war is real.

Capturing the meaning of American politics.

From Fouad Ajami un the WSJ...

..."The failure of the Carter years was, in Reagan's view, the failure of the man at the helm and the policies he had pursued at home and abroad. At no time had Ronald Reagan believed that the American covenant had failed, that America should apologize for itself in the world beyond its shores. There was no narcissism in Reagan. It was stirring that the man who headed into the sunset of his life would bid his country farewell by reminding it that its best days were yet to come.

In contrast, there is joylessness in Mr. Obama. He is a scold, the "Yes we can!" mantra is shallow, and at any rate, it is about the coming to power of a man, and a political class, invested in its own sense of smarts and wisdom, and its right to alter the social contract of the land. In this view, the country had lost its way and the new leader and the political class arrayed around him will bring it back to the right path.

Thus the moment of crisis would become an opportunity to push through a political economy of redistribution and a foreign policy of American penance. The independent voters were the first to break ranks. They hadn't underwritten this fundamental change in the American polity when they cast their votes for Mr. Obama.

American democracy has never been democracy by plebiscite, a process by which a leader is anointed, then the populace steps out of the way, and the anointed one puts his political program in place. In the American tradition, the "mandate of heaven" is gained and lost every day and people talk back to their leaders. They are not held in thrall by them. The leaders are not infallible or a breed apart. That way is the Third World way, the way it plays out in Arab and Latin American politics.

Those protesters in those town-hall meetings have served notice that Mr. Obama's charismatic moment has passed. Once again, the belief in that American exception that set this nation apart from other lands is re-emerging. Health care is the tip of the iceberg. Beneath it is an unease with the way the verdict of the 2008 election was read by those who prevailed. It shall be seen whether the man swept into office in the moment of national panic will adjust to the nation's recovery of its self-confidence."

Obama defended by fellow communist Fidel Castro.

HAVANA (Reuters) - President Barack Obama is trying to make positive changes in the United States, but is being fought at every turn by right-wingers who hate him because he is black, former Cuban leader Fidel Castro said on Tuesday.

In an unusually conciliatory column in the state-run media, Castro said Obama had inherited many problems from his predecessor, George W. Bush, and was trying to resolve them. But the "powerful extreme right won't be happy with anything that diminishes their prerogatives in the slightest way."

Cheny criticizes Obama pro-terrorist stand

Mr Cheney gave the following statement to the Weekly Standard:

"The documents released Monday clearly demonstrate that the individuals subjected to Enhanced Interrogation Techniques provided the bulk of intelligence we gained about al Qaeda. This intelligence saved lives and prevented terrorist attacks. These detainees also, according to the documents, played a role in nearly every capture of al Qaeda members and associates since 2002. The activities of the CIA in carrying out the policies of the Bush Administration were directly responsible for defeating all efforts by al Qaeda to launch further mass casualty attacks against the United States. The people involved deserve our gratitude. They do not deserve to be the targets of political investigations or prosecutions. President Obama’s decision to allow the Justice Department to investigate and possibly prosecute CIA personnel, and his decision to remove authority for interrogation from the CIA to the White House, serves as a reminder, if any were needed, of why so many Americans have doubts about this Administration’s ability to be responsible for our nation’s security."

The story on natural gas.

In many ways, the US has a dieing economy. In such an economy bubbles develop. Bubbles, if you do not know, are speculative scams where speculators drive up the price of something then dump it. They make a financial killing on the way up and the way down. The gullible are bag holders. As the bubbles burst, people desperately try to find leaders who promise HOPE and CHANGE. They find out too late that they acquired a bubble in political promises. Such societies are destroyed in an orgy of printing money, inflation, riots and then fall into a tyrannical form of government, because the people can not govern themselves.

Sometimes the deterioration is slow enough so people do not notice. For example, did you know that since 2002 the dollar lost nearly 25% of its value? Do you know that 78% of Americans can not calculate interest earned, that 71% can not calculate miles per gallon and that 58% can not compute a 10% tip? How can such people make intelligent decision in politics? If they could, Barak Hussein would have been laughed off the stage right with his teleprompter. It will then not surprise you that most Americans are unfamiliar with the three laws of thermodynamics, so they can be sold snake oil like the Cap and Trade bill.

The most abundant energy sources in America are coal and natural gas. In fact, between the Western gas field (which runs by Dallas, TX) and the Marcellus gas field that runs from Louisiana through Pennsylvania, we have enough known gas to last us a hundred years. T. Boone Pickens even wanted to convert cars and trucks to using natural gas, but he was ignored. And natural gas is currently trading at a 15 year low in terms of the price of gold. You could call it a reverse bubble. Since Barak Hussein was elected, natural gas prices have plummeted in anticipation of curtailing its use.

Obama's VA Death Book.

If you have been swayed by the Obama regime's "assurances" that there are no death panels proposed under the ObamaCare bill, you might be interested to read this piece about a 52-page booklet for the VA:

http://online.wsj.com/article/SB10001424052970204683204574358590107981718.html

The booklet tells disabled veterans to evaluate their life to see if they really want to live. Of course, with senior citizens, they will not get a choice, but their health care can be denied by the panels who will deny health care to them.

The State of the Economy and the Stock Market.

We have examined the data on the cause of the financial meltdown that put the economy in a tail spin (How the FED manipulates the economy). The data from the St Louis FED proves two things: 1. the economic meltdown was set off with the Sep 15 2008 change to the 'mark to market' accounting system that declared the banks insolvent and 2. the recession that followed began in Q3 of 2008. Do not believe the propaganda that the recession began in Q4 of 2007!

We have asked the question whether the Stock Market increase was a Bear Market rally and would end soon (Reading the tea leaves: July 20, 2009). The conclusion was that another upleg would follow. It did.

We have examined the building of the new and colossal bubble in the dollar (The case for economic doom) and gave some examples of how the FED is using money it creates to grab increasing chunks of the US economy (The Socialist Takeover of Finance).

We have examined data on railroad shipping to see if the US economy is picking up (Aug 13, 2009: how is the economy doing? and (Carl Denninger looks at retail and food service. ). The conclusion: the improvement is scent.

Finally, we have examined the relationship between gold, the dollar and oil (Dollar on the brink). The conclusion was that gold and oil are moving up because of the loss of value of the dollar and that further moves (dollar down and gold up) seem to be building. I suspect that the federal govt can manipulate dollar and gold prices, but I will refrain from disclosing my ideas untill I have further proof. The FED AND the big (nationalized) banks such as BOFA and CITI and 2-3 more may be involved.

In this post, I will examine the state of the economy and the forces that underpin the rise in the Stock Market. The first question we need to examine is whether the economy is recovering as the Government Media is telling us.

One of the so-called "green shoots" is the Housing Market. This, however, is a mixed bag. Yes, sales of private homes are increasing, but Commercial Real Estate is in trouble. Several hotel chains are bankrupt, and commercial real estate is in trouble, because the continued recession. The Lumber Index (which reflects the state of the construction industry) has been up and down and is now down. The Baltic Dry Index (which reflects the state of the world economy) is also down after an earlier increase. We see that initial jobless claims are continuing in the high range (Those green shoots claims. ) and that businesses are not expanding (g 13, 2009: how is the economy doing? ).

So, what about the Stock Market? Is that not supposed to be an early indicator of an improving economy? This has been asked by a blogger on Seeking Alpha:

http://seekingalpha.com/article/157655-is-it-a-stock-market-rally-or-a-dollar-devaluation?source=email

Here is his data of the S&P 500 and the dollar bullish ETF (Exchange Traded Fund)

Did I not say earlier that a cheaper dollar would drive up both the stock prices and gold prices? By devaluing the dollar, the Socialists achieve two aims: 1. by cheapening the dollar, American assets are in fact transferred to those outside America (because their currency will not be cheapened, so they can buy more of our assets) and 2. the "profit" that we gain when we sell our shares will be taxed heavily. These are long-sought goals of America's Socialists.

Do these policies achieve the stated aim of the Socialists in control of our Country? This was examined by yet another blogger on Seeking Alpha:

http://seekingalpha.com/article/157702-a-closer-look-at-the-lei-s-6-rise?source=email

The first graph (M2) shows the tremendous expansion of M2. The second graph shows the circulation of the money. If the increase of the money was effective in stimulating the economy, M2 and the money velocity should be parallel, but they are not. The economy continues to flouder even though the money supply has been greatly inflated, so the ratio declines because the GDP is not increasing much.

Inflation is already under way. And this is shown by the ratio of oil to natural gas price ratio:

How does this show the start of inflation? Most of the oil that is sold is sold outside of the US

and is quoted in dollars. Natural gas that is sold in the US is produced mostly here and it responds to supply and demand and demand is low. Also, domestically produced items are priced according to the deflation caused by the "mark to market" and the difficulty of raising cash.

The conclusion is that the Socialists crashed our economy, are using Monopoly money to in fact nationalize the financial sytem, transferring our assets to foreigners and intend to tax away what we may get out of the Stock Market.

Notices.

Notice that the width of the posts has changed. There will be other changes coming, but the basic setup of the blog, its subject matter, will remain the same. I will also add subtitles in Italics. Eventually, I might provide video, but it is the graphics that are important now.

The Socialist takeover of finance.

Jeffery Bronchick, CFA, writes in Seeking Alpha:

"The Federal Reserve is printing money to buy Treasuries, mortgages and agencies (over $500 billion at last count).
The FDIC is now guaranteeing almost $350 billion of bank debt (TLGP).
The Federal Reserve is the largest buyer of Commercial Paper (about $250 billion at last count).
The Treasury is now guaranteeing muni debt (“Build America” bonds).
The Federal Reserve is providing financing for the purchase of securitization and has committed as much as $1 trillion.
The Department of Education is the largest buyer of securitized student loans, more than the private sector.
Fannie (FNM) and Freddie (FRE) are buying over 60% of new securitized mortgages, more than the private sector.
• The Federal Reserve’s Term Auction Facility (TAF) has pumped $500 billion into the LIBOR market. The market has been so overwhelmed by “Federal Reserve money” that some say it is no longer the reference rate for new short-term loans.
49.9% of the capital raised by banks has come from various governments (including Sovereign Wealth Funds), 51.1% from the private sector.
Government spending for fiscal 2009 is projected to be 28% of GDP. Only 1944 and 1945 were higher in the last 150 years.

The Geezer adds: I am still waiting for someone other than me to document how the FED manipulates the dollar and gold prices.

Second Reconstruction in trouble.

During the First Reconstruction, blacks in the South rose to political power in the Republican Party. A lot of them were incompetent and corrupt and the Democrats defeated them by several means, including the Night Riders.

During this, the Second Reconstruction, blacks are in the Democrat Party. They are still incompetent and corrupt and out of sink with the population. Obama's approval numbers have sunk below 50% (probably 47%) and if you subtract the solid black support he has (which amounts to about 9-10% of the total electorate), this means that he has lost the support of the country. The Governor of New York State has an approval number of 9%, which is astonishing. Deval Patrick, the Governor of Massachusetts is also in trouble. Rep Jefferson from Louisiana has lost his reelection bid and has been convicted of corruption. Rep Dellums of Michigan may also face political opposition and is certainly reeks of influence peddling.

I hope that the GOP will continue to offer qualified black Conservatives to pull blacks into the mainstream of America. Democrats have never been a help to blacks. Whether you look at the days of the Klan and the night riders, or these days when Democrats offer the failed ideas of Socialism, it is a disaster for blacks. For crying out loud, even the Chinese Communists and the Russian Communists have given up on Socialism, so should blacks become its voluntary victims?

Dollar on the brink.

My last post about gold prices predicted a delay in gold prices dropping and that prediction turned out to be accurate. This post compares the value of the dollar and gold prices. Notice that both are on the brink of potentially big moves; gold moving up and the dollar moving down. There are non-confirmations though that makes me want to hedge. Notice that gold had more bullish days in July and August than bearish days, yet the 50 DMA actually turned down in August while the 200 DMA kept moving up. This means that the long-term bias in gold is up, whereas the short-term move is still hesitant. The positive value of the short term MACD (the red line being above the black line) shows resistance against a down move. The big move in gold yesterday (up $13 an ounce) is also a bullish sign. If gold moves above $968/oz then it will be in a definite up pattern.

Gold and oil are sold in dollars. So, the price moves in all three are related. Oil closed at $74/bbl Friday, so both gold and oil were up and the dollar was down. The MACD for the dollar is still positive so it resists downward movement. Much of this resistance is due to the up moves in the dollar in the early days of August, which led some people to believe that the dollar hit its major low. Indeed, this last week saw the dollar slide every day, yet it is still above the low it reached at the end of July. This sets up a classical confrontation. Look at the dollar chart and you see that the dollar sank to 77.6 intraday and rebounded from there. If the dollar retests this level and sinks below than all three factors (gold, oil and dollar) will be in sinc, confirming not only inflation, but coming higher oil and gold prices. Just as an aside, George Soros made a big bet on oil. Sheer coincidence, of course.

The National Debt.

There is an interesting graphic showing the components of the National Debt. During the Obama regime, national debt is to soar by 2 trillion this year and about 1.2-1.6 trillion each year while he is in office (assuming he does not become "President for life.") And assuming that Cap and Tax and ObamaCare is not passed. How will the country manage this debt?

The debt is financed by taxes and borrowing. The government has to raise this money by taxing us, as citizens. But it doesn't tax all citizens, of course... Do you believe 43% of those filing returns pay no taxes at all? It's true. So who does pay taxes? The top 25% of taxpayers (those with an income of $66,000 or higher in 2007) paid 87% of the taxes. Basically, the top 25% of taxpayers will be the ones paying this enormous debt. In short, the debt "burden" is not just the $736,000 for a family of four earning above $66,000 a year... The government will use the taxes from an upper earner to cover its debts on three other families, too. If you make $66,000 or more, you're in the same boat! And that's just the old debt... New debts are ringing up every day. Literally. The national debt grows by a few billion dollars every day.

A Conservative revolution is needed to reduce the federal government to a manageable size, cut Medicare costs and privatize Social Security after the Chilean mode. Cut the federal spending by half, repeal corporate taxes and reduce regulations so we can have a good economy. Forget about Cap and Tax, drill everywhere there is oil and natural gas, promote geothermal energy production so we can have electric hybrids. And promote the use of new medical technologies (such as talomere therapy to slow the effect of aging).

With a forward looking Conservative philosophy we have a chance. With the Obamabots in power, we have the chance of an ice cube in Hell.

Obama's dilemma.

There are internal contradictions in the Democrat Party that threaten their coalition. Many of the rank and file Democrats oppose socialized medicine and voiced their opposition at town hall meetings. Last week Obama came out that he might accept a bill that did not contain the "Public option" and Kathleen Sebelius came out that the "Public option" was off the table.

The Left of the Party (the NutRoots and the Daily Kos) had exploded. To them socialized medicine is an article of faith and they issued all kinds of threats. Obama did a turnouraound and declared (together with Sebelius) that they did not say what they said and that the "Public option" is still on.

This double about face tells people that Obama can not be trusted.

The Southern use of peas.

Have you heard about "black-eyed peas," purple-hulled peas" ? These are commonly used in the South and you can buy them for about $20 a bushel in the shell. There are more names for these, but the intent of this post is to enlighten you, rather than to confuse you, so I will stick with these names. Local connoisseurs in Texas affirm that purple hulls taste better than the black eyes, but in truth, I can't tell the difference. Oh, and before I forget, these are not peas but beans. If you buy them fresh, you need to blanch them and freeze them. You can also buy them around here canned. These peas are high in protein content, so they are especially favored by vegetarians.

Principal uses:

1. Soups. Use them as in a lentil soup with a ham bone. You can use them as in the Indian soup Shambar (which uses yellow lentils). Cook the peas till they start to fall apart then add a mixture of vegetables and your favorite curry spices (the Shambar uses black mustard seed fried in oil). I am going to try to use them in a vegetarian chili by using the Mexican spices.

2. Salads. You can add boiled peas of the consistency of boiled beans, shallots, tomatoes and green peppers and a salad dressing. I varied this by using a can of purple-hulled peas, one tomato chopped and a mix of a half onion and pepper chopped and fried, then diluted with a cup of chicken broth and 1 tbsp starch cooked until it thickened.

Further research. Look for the festival in Arkansas and their entries.

Black peas are similar to the purple-hulled peas and are used in England for the Fall campfire celebration. They soak the dry peas overnight, boil the peas until they fall apart (1 hr?) then add the traditional English spices (vinegar, salt and pepper). You can flavor it with beef drippings.

Armadillo

It’s four in the morning and the Geezer’s awake,
Nothing important, just a short geezer brake.
The dogs are on duty and Rika kawoofs
And the Geezer pops up knowing the game is afoot.

He finds the light quickly like he did before
And oh so quietly he’s out the door.
He shines the light round sees nothing at first
And thinks of retreating and quenching his thirst.

But, among the leriope just ten feet away,
The plants move quite gently with the slightest of sway.
A big body is rooting, emerges below
Like tanned grey leather, a big armadillo.

Comical small head it roots here and there,
A big body follows and a long striped tail.
The light does not bother, it can barely see
And I do not hunt it there is nothing to fear.

It moves to the West and around the house,
Disappears slowly, it’s quiet as a mouse.
The night is not over and with a plop does appear
A little green tree frog jumps on to the screen.

The Geezer’s head bows in a heart-felt quick thanks
For the inspiration this simple scene has.
He thinks of the mom deer and spotted small fawn
And turns off the light switch to await the dawn.

©Geezer Béla in Exile,
Aug 18, 2009

Beware of Leftist tricks!

The Obama regime reminds me of the Communist takeover of Eastern Europe with hints of Nazi tactics thrown in. The regime uses the tactics of the Bolsheviks to stack meetings and protests to create the impression that it represents the majority.

Consider the following:

1. Consider the Potempkin meeting in New Hampshire where Obamabots were bussed in, opponents kept out and questions were planted:

2. Other places the town meetings were told only to loyal Obamabots to create the impression that there is wide support for socialized medicine;

3. Pelosi labels the protesters who do not like ObamaCare swastika carriers. Then at one of the meetings, union thugs show up with a swastika carried by a young, black guy. The ruse is witnessed by a blogger who blows the whistle. The Media suppresses the news;

4. Obamabots recycle the slogan (Fizessenek a gazdagok - make the rich pay) that the Communists used in Hungary.

5. By nationalizing the banks, the Obama regime intends to unleash inflation so the nation will bow to Marxist rule that will wipe out most of the private property.

6. The Nazis burned down the Reichstag (German Parliament) so they could rule by one party. They blamed it on others. An equivalent is yet to be done. Watch for it.

7. Remember the Joker? I had pasted in a copy. Allegedly, this was a racist picture done by Conservatives. In reality it was done by a Leftist (Firas Alkhateeb), who favored Kucinic, because Kucinic was perceived by Alkhateeb as more pro-Arab.

A message to the Obamabots.

The Democrat Party has nominated a radical Leftist as a standard bearer. His allies in the financial community had crashed the financial system a month and a half before the 2008 election and elected the radical. After his inauguration, Barak Hussein has proceeded to expropriate some banks and GM and Chrysler and proceeded to attempt to impose socialized medicine.

An avalanche of lies followed from Barak Hussein, who became the Lier in Chief.

The actions undertaken by Barak Hussein are not permissible under the Constitution, but he and his allies attempted to impose socialized medicine by pushing it through before people had a chance to read a monstrous 1000 pages long bill. When people began to protest at town meetings, Barak Hussein called on his union thugs to "hit back twice as hard" and red-shirted ACORN members and blue-shirted SEIU thugs began to push people around. Obama's thugs even chortled that the protesters brought knives to a gunfight.

It is the Leftist Democrats who are pushing this to the brink. Pelosi called the protesters swastika-carriers and Sen Reid called them un-American. They should not be surprised that opponents of the Leftist takeover begin to take guns to meetings. The people of the South and the West are determined that we will not become a ZIMBABWE, where an army of thugs can terrorize protesters.

Americans are loyal to the Constitution and always decided matters by open debate and fair elections. The Leftists want to change that. The choice is up to them. The Obamabots have been using the tactics of revolutionaries in packing sham meetings with their supporters and trying to suppress opposition. The response of MSNBC is typical of the lies they otherwise disseminate. A semi-auto rifle is NOT an assault rifle, even if it looks like one. A car may look like a NASCAR, but it will not run at 180 mph. Neither is a civilian AR-15 an "assault rifle," except in Liberal minds.

The features of ObamaCare.

In spite of what Obama says these are the features of the proposed health care.

1. Compulsory. Everyone will have to have health insurance.

2. Eventually, it is a single payer system. If you belong to a private plan, you have five years after which you have to join the single payer (government) plan. If your insurance changes before the five years is up, you have to join the government plan.

3. Health care will be rationed. The Economic Stimulus Bill (what I referred to as the Porkulus bill) set up the Center for Cooperative Effectiveness Research at a cost of 1.1 Billion dollars/yr. It is this Agency that will construct the basic blueprint of what treatments doctors will have to use for what illness. How you will be assigned doctors is not clear now, but doctors will not be permitted to treat you outside of guidelines and you will not be allowed to shop for doctors.

4. Will there be "death panels?" In reality, YES. Local Committees will decide if health care can be given to people. One of the principles identified in ObamaCare is the evaluation of whether the proposed care is cost effective in relation of the economic productivity and age of the patient. Denying care for the aged is in reality a death sentence. So is the denial of care to the mentally ill or intellectually retarded. In fact, it is precisely these panels that delay care in England and Canada, because it takes time to make these decisions. In many cases, even the delay can cause death.

5. Will ObamaCare save money? No. The Congressional Budget Office estimated the cost of this plan as an additional trillion dollars per year.

6. Will Medicare and Medicaid survive? It is hard to see how. The way I see it, everyone over 65 will be forced into the single payer system.

7. How about Congress and the POTUS? The political class will have their own plan.

8. Are Congress and government workers now covered by a government plan? NO. Government workers have private plans that are subsidized by the government as part of their pay.

Christian concept of stewardship.

Christianity is based on the Bible, both Old and New Testaments. The Bible states that everything on this Earth belongs to God and we are His stewards. We are responsible to God for our stewardship of the resources God puts at our disposal and we are to see to it that those resources are used profitably and in line with the teachings we received from the beginning through the teachings of Christ and His emissaries: the Apostles. We are explicitly forbidden in the Ten Commandments to commit acts of theft and we are also forbidden to covet resources that do not belong to us. Lest anyone thinks that this is an invitation toward selfishness, let me remind them that the Second Great Commandment instructs us to love our neighbor as much as we love ourselves. And the teachings of Christ made it clear that we are to engage in helping those in need. I am not going into details here, though Christ defined the "neighbor" in his parable of the Good Samaritan, so there is no excuse that we do not know. The Christian model fit all manners of economic systems: slavery, feudalism and capitalism.

The Collectivist (Communist, communist, Socialist and American Liberal) believes that all resources belong to the Collective as represented by the State. It is ultimately the State that determines how much economic growth there is to be, in what area of human endeavor and how the fruits of labor are to be distributed. Collectivists publicly champion 'fairness' in ownership and earnings, though in private their leaders favor themselves and visit most of the hardships that collectivism brings on the shoulders of the common people. Only socialism fits the collectivist model of ownership and socialism can have various levels of government ownership and government control.

Obviously, a Christian can not be a Socialist be definition. For a Christian to become a Socialist, he/she must violate both Great Commandments, and the Commandments against stealing and coveting.

Death panel a rumor - says NYT

But, it will be taken out (supposedly) in yet another version of the socialized medicine bill.

Carl Denninger looks at retail and food service.

U. S. Census Bureau announces preliminary numbers for July for retail and food services. Then Carl Denninger runs the numbers in Seeking Alpha. Here are the details:

"
Electronics, the "high tech will save us" meme of Cramer and the rest of Tout TV: Down sequentially (8,156 .vs. 8,275), even though this is the start of "back to school" buying of laptops and similar. It is also down from $9,554 last year, a monstrous decrease.
Building materials, down as well, despite the so-called "better home starts", again sequentially, July from June.
Gasoline, down despite the price of gasoline being flat to slightly up. Uh, isn't this summer vacation driving season? Ah, people aren't going out are they?
Clothing is up a bit sequentially ($17,131 .vs. $17,027) but down huge from last year ($18,540)
General merchandise stores, down sequentially and off about 4% from last year.
Non-store retailers (e.g. online buying) up a bit, $24,058 .vs. $24,025) but down big from last year ($25,388)
There was, however, one green shoot. Bars (in "food and drinking places") were up both sequentially and year/over/year.
So if the economy sucks you won't buy much, but you will go out and get drunk. Sounds rational to me."

Still like the CHANGE?

Aug 13, 2009: how is the economy doing?

We hear the Obamabots telling us that they have rescued the economy. Of course, they tell us that we will be able to keep our insurance, there will be no rationing and there will be no euthanasia of the old. So, how can we trust their claims on the economy?

There are a number of economic indicators that we can examine. I have already produced for you the data on freight going by the rail road. There is no indication of economic recovery. Another economic indicator is the Baltic Dry Index. While it rose earlier in the year, it is now heading down. No sign of economic recovery.

We can look at the accumulation of cash and the capital expenditure of firms in the S&P 500. We see that due to cutting down on employment and the fact that companies pay next to no business tax because of the loss of profitability, companies have accumulated cash, but are not doing any capital expenditure. The economic "recovery" then is like a square root. We recovered from the freezing of the money and the GDP, but there is no increase in production. The economy stagnates. This is illustrated well by employment numbers. The average length of unemployment has skyrocketed and many people simply quit looking for work.

If you are an average American, you might be persuaded that the Obamabots had misunderestimated the extent of our economic troubles. If you have been reading these posts, you should know that the Obamabots are celebrating. Their plan to recreate the Depression is right on the money.

Answering Elizabeth George on Taxes.

Answering Elizabeth George on Taxes.As soon as I finished posting my critique of Elizabeth’s book “Careless, in Red” I noticed that she has a website www.elizbethgeorgeonline.com. On her web site are assays in which she advocates certain positions. One of these assays is on taxes.

Ms George attacked George “W” Bush even though he was not on the ballot in 2008. I might respond to these attacks in a separate post, but I do want to comment on her “reason” to vote for Barak Hussein, namely that McCain had a worse college record than Elizabeth. Her argument is specious, as someone with good grades might be a Leftist radical (like Obama) and get good grades. Obama is turning out to be a terrible President and a threat to our economic survival and personal freedoms. But, I am not going to digress.

Elizabeth writes that she would not mind her taxes being spent by the government for better care for mental patients (released at the insistence of Liberals), promoting university education, promoting renewable energy, supporting cancer research, establishing early education for disadvantaged children or helping wounded veterans. Actually Elizabeth, there is nothing to prevent you (unless Obama raises your taxes) from doing this yourself. You can contribute to hospitals and organizations that care for the mentally ill, you can set up scholarship for anyone you wish, you can buy shares of RZ and HTM (companies that need money to produce energy from geothermal wells) and there are numerous ways to promote cancer research. In my experience, Liberals like Obama, Kerry or Algore spend very little of their funds to promote these aims – they want others to pay for the bill through government programs. They deserve no credit for acting as little Robbing Hoods.

Ms George performs an even greater disservice by misstating the issue of tax cuts. Let us look at these misstatements. First and foremost is the mischaracterization of what taxes represent. Taxes are NOT taxes on wealth, taxes are levied on INCOME. Hint: that is why it is called the INCOME TAX. The top half of earners pay almost all the federal income tax. So, a “tax cut” for those at the bottom of the earning scale is NOT really a tax cut, but a transfer of wealth from those who earn more to those who earn less. It is both unfair and unethical. Why should those who earn more pay a larger percentage of their earnings? Second, the income tax is immoral. We can not go into your island abode and take your income and give it away. It is called robbery. And it remains a robbery even if the robbers get together and vote to take your money away. It is and remains legal plunder.

The wealth transfer is ineffective as a method to speed the economy and in fact performs just the opposite. First, the transfer of $250 from upper earners does not represent a net increase of purchasing power, it merely shifts who will spend the $250. Such economic stimuli do not work. We saw this when the Bush Admin gave people $600/person and we saw that Japanese efforts to stimulate their economy (as it happens by covering a lot of their beaches by concrete) failed in stimulating the Japanese economy. The situation is even worse if the stimulus is provided from future earnings, because it robs our descendants and promotes inflation. There is something else involved here, something that is not seen, at least not readily. When $250 is transferred from person A to person B, what is not seen is the work that person B would have performed for the money. Wealth transfer reduces the total national wealth.

Real tax cuts, allowing people to keep more of their earnings, DOES work in promoting a better economy. We have seen this to be true. JFK’s tax cuts, Reagan’s tax cuts and every other tax cut that allowed people to keep more of what they earn has led to a better economy. There is a very simple reason for this: high earners are the best among us to use their earnings to earn more. Allowing them to keep more of what they earn is the best way to insure that money earned will be used to grow the economy. In spite of your jeering, Ms George, the tax cuts of Ronald Reagan had ushered in a twenty five years period of high growth and increasing living standards, especially when a Conservative Congress reformed Welfare and began to limit government spending during Mr Clinton’s Presidency. You being a Liberal, it is not surprising the\at you favor increasing minimum wage. Unfortunately, that is also counterproductive. People with minimal skills are employed at minimum wage, but if that is raised, some of the jobs that pay minimum wage disappear. We can even calculate this effect.

I am not going to comment on the global warming fraud and the Cap and Tax fiasco that threatens millions of jobs to go overseas. But I will comment on your criticism of the Iraq war. How do you like Mr Obama’s Afghanistan policy? Declaring that we do not really intend to win the fight, but are willing to put in more troops is like promising candy to the Jihadists: the prospect of defeating America. As in Vietnam, Liberals will prolong the conflict by holding out the prospect of victory to the enemy, so they can fight on. By George, this was a fun conversation.

Geezer Bela in Exile, A Freedom Fighter Poet.

A world without God.

I am going to state that I am a mystery book fan. There is no apology needed for that, I simply prefer the genre to others. Why? Because murder mysteries are written like the way I used to do research: you collect data, you analyze it, you construct a hypothesis that fits all the data and you test your hypothesis till you reach the correct explanation. Which is: WHODONEIT?

There are other elements to the craft of writing these books: the drawing of interesting characters, the description of interesting scenery, the unfolding of the story, the description of human interactions and occasionally: the pushing of political or other philosophical points of view. When this last gets too pushy (usually on the Socialist side) I throw the book away. The last few years, some mystery writers began to include a homosexual character (male or female), who is presented as a paragon of virtue. Whether this is done because the writer has become an adherent of homosexual propaganda (even if not the practice), or practice, or is doing this to please Editors of that persuasion is never clear, but I skip such pages

Lately I have been reading "Careless in Red," an Elizabeth George book, featuring Inspector Lynley of New Scotland Yard. It is a long tome of 725 pages and I am to page 230. It is about a recent England (Cornwall, to be exact) of different attitudes, different people, a different country than the old English mysteries. In this book, Inspector Lynley begins the story as a hopeless, unwashed vagabond, who hikes the Cornish coast in a hopeless daze following the senseless murder of his wife and unborn son. He comes upon the corpse of a young man, who has been murdered and the story begins. The characters are drawn with great care to exclude any sense of hope, decency or even love. There is no honor for parents, sons and Fathers are bitter enemies, family loyalty is a conspiracy to cover up unsavory deeds and downright evil. Even sex is an exploitation of others, a joyless, temporary coupling that ultimately inflicts pain and leaves people bitter. God and religion are conspicuously absent and the church is just a distant object and a part of the past, no longer part of life. The only reference to bringing up children with God is the teenage girl, who is prohibited from praying by her curmudgeon of a Grandfather, who promises to extinguish all such nonsense as praying in his granddaughter.

To some degree, an Author projects his or her inner self into a world that's created in a book or poem and I wonder the pain and despair that Elizabeth George creates in this book. Is it a reflection of how she experiences the world? One thing is for sure: God does not need to send these characters to Hell, they have created one already and are suffering in it. I do not know if the book changes its tune in the two thirds I have not read at this point. And I do not know if I will finish it, in spite of the riveting skill Ms George has as a writer. After all, I do not need to experience Hell in this world.

It is no surprise that our Liberal Papers (the New York Times, the Washington Post, USA Today and the Tampa Tribune) have lots of nice things to say about this book. They are part of the same world that Ms George creates so skillfully.

The meaning of Sharia.

Mr Frank Gaffney, Jr. tells us the meaning of Sharia: "Shariah requires, [though], that if its adherents do not actually engage in violent jihad, they must support it through financial or other means. After all, according to Shariah, the purpose of jihad is to bring about the triumph of Islam over the entire world. Shariah commands that the faithful must use violence where possible to advance that objective, and nonviolent means where not."

This is very important to know, because the West and Asia is at war not merely with terrorists, but all those Muslims that support Sharia. True, not all Muslims support Sharia, but Sharia is what mainstream Islam is about. The Obama regime, by downplaying the importance of jihadism, has become a tool of our enemies.

Oil and dollar: here we go again!

Forecasters can differ a lot, but some of the time, they reach opposite conclusions. Mr Prechter, of considerable reputation because of past calls, says the dollar has reached a major low and will rise for a couple of years. Uncommon Wisdom has called for a minor up blip to 80, maybe a bit above then a drop. T. Boon Pickens on the other hand, goes long on oil, figuring on oil going to $75 and $80 by year's end. Some pundits call for economic recovery, others fear a double dip recession.

I have felt that we should look at two things: fundamentals and what the government is doing to delay the inevitable. The Marxists in the Obama regime believe that they had figured out how to beat the system and intend to do so with the help of the Media that they think can convince people that black is white.

Their problem is that they deal with people expert in economics, rather than the dumbed-down witless urban Democrats. In other words, they will not be misled by the propaganda of Chris Matthews, or Begala or even the Ragin' Cajun.

With the Stock Market we saw the Golden Cross (the 50 DMA going above the 200 DMA) and knew that this meant a continuation of the rally that began in March, in spite of the ceaseless talk about a Bear Market rally. With the dollar we see the opposite, the 50 DMA falling below the 200 DMA. While we saw a slowing of the decline (and in fact we saw three up days), the dollar has yet to establish an up trend. Lately, the pattern has been that the down days are bigger than the up days. If the pattern continues, we should see a substantial drop in the dollar this week. A drop in the value of the dollar will force up the price of commodities, gold and oil.

Where the dollar is going.

Some day we will learn how the government can reduce gold prices and increase the value of the dollar. It can do this temporarily (at a big cost) but not indefinitely. Forecasters predict that the dollar will rise perhaps to 80 or even above then sink again. Note that lately the swings down get bigger as well.

ObamaCare: Contradictions and lies.

1. Obama says that our health insurance must be "reformed" so that the economy can go forward. Then he tells us that we can keep our insurance. But that is NOT what he told the SEIU and the AF of L:

http://www.breitbart.tv/uncovered-video-obama-explains-how-his-health-care-plan-will-eliminate-private-insurance/

Page 16 of the Bill says that if your insurance changes, you have to join the govt plan.

2. Democrats contend that health care will be available.

Pages 29 and 30 of the Bill says that health care will be rationed and that the govt will determine who gets what. Doctors will not have the authority to decide on care and face penalties if they try.

3. Democrats say that the Bill does not order euthanasia for old people. True, BUT!!!!

a) Page 239 of the Bill says there will be cuts for physician services under Medicare and

b) Page 427 says that the government will order end-of-life treatment. The Washington Post read this part (Section 1233) and came to the same conclusion.

ObamaCare does intend to let Seniors die as soon as that can be accomplished.

Swedes ain't what they used to be.

There was a time when even the appearence of Viking ships would strike fear into the inhabitants of coastal areas. Times have changed, I guess. How else to take that Swedes have joined a Facebook site (100,000 of them) that bemoans how scared they are after seeing the video of Adina Folin advertising in a commercial for APOLIVA cosmetics? Here is the video:

http://www.thelocal.se/21116/20090805/

How the appearence of a tall, aneroxic person who is dressed as a woman scares people is beyond me. Perhaps they envision themselves waking up and looking like her: an aneroxic denizen of the night, who lives on booze and drugs. The explanation why she was picked as a "super model" is to provide us with a different look that might cause talk. It did that!

Trying to rewrite economic history.

Some economists are busy trying to rewrite economic history. One such attempt is done by Steven Hansen:

http://seekingalpha.com/article/154831-finding-the-real-economy?source=email

Hansen's thesis is that the current recession began in Q4 2007. This tallies nicely with our emerging Diktator telling us that those who caused the recession must now shut up while the "One We Waited For" nationalizes industry after industry, kills off the old and infirm and sets up (enlarges) his private Army wearing purple and red shirts.

Hansen complains that GDP is not a good measure of the economy, because it is too convoluted to calculate the numbers. So, he sets up another quntity called NIPA: which equals the income of business + individuals + the government. Easier to calculate? It would seem that this is like a three shell game and there are all sorts of opportunities to decide whether an income (of individuals for example) has already been counted once in business or "government income" is counted both in business and individual income. Since, government produces nothing of economic value, assigning a number to "government income" is fictitious anyway. Even so, Hansen's graphic shows that the economy began to contract slightly in Q2 2008 and dove in Q3 when the FED froze the money in the banks. This in spite of the fact that money supply began to drop, countering the trend toward the precipitous drop that occured when the Sep 13, 2008 change in accounting method tied up bank funds.

Mr Hansen's attempt to downplay changes in GDP is no doubt due to a desire to obscure the real changes that took place in 2008: which were that after the Sep 13 "early October surprise" the financial system went into a dive and so did the GDP. No surprise there, 'mark to market' prolonged the Depression and made the government the source of income for a lot of destitute people.

Obama: looking more like Hitler every day.

Obama: looking more like Hitler every day.

At one of the health care protests I saw an Obama picture doctored up with THAT mustache. Was it fair, I axed. Fair enough, but was it accurate? There are similarities and there are differences.

Hitler was a Socialist and Obama is a Socialist.
Hitler came to power through a financial collapse, Obama ditto.
The Jews supported Hitler and they supported Obama. Different bunch of people same idea.
Hitler wanted to take over the German economy without owning it. Obama ditto in the US.
Hitler made the State the arbiter as to who would die and who would live. Obama ditto.
Hitler was pro-Arab. Obama ditto.
They both wanted a private Army.
There are differences though:
Hitler wanted the white race to rule, Obama wants colored people to rule.
And let’s not forget: Hitler’s goons wore brown shirts, Obama’s wear purple shirts.

Big difference!

Manus manum lavat (one hand washes the other).

Why is the value of the dollar falling? Well, because there is more of it without more things to buy. The Obama regime is printing more of it to cover the deficit.

Here is how the most insidious scam is run by the government. An arm of the FED declared that bank assets in derivatives backed by mortgage is worth nothing. That made the banks insolvent. The FED then "bailed out" the banks by loaning them money and acquired partial ownership of the banks. The banks now buy Treasury Notes on which the Federal government pays interest. Where does the Federal Govt get the money to pay the interest? It sells Treasury Notes to the banks.

And we sent Berni Maddoff to prison for life?

These facts are known to other countries, to me and now to you. So, the "creation" of money will not be hidden and the dollar will lose value. Gold will rise. The question is just when and how much.

Obama rallies Leftists for Socialized Medicine.

The Obama regime was caught by surprise by the show of protestors at town meetings criticizing Socialist Democrats who are for the Takeover. Their first line of defense, calling protestors brooks-brother suits people (Barbara Boxer) or swastika wielders (Pelosi) has failed. So, now the Usurper of the Presidency is going to call out his rent-a-mob, ACORN and radical blacks. How long before we have scenes like in Iran?

The dollar and interest rates.

In some ways, the Obama regime is a rerun of Jimmy Carter's presidency, except that the results are worse. The tripod on which the presidency of Jimmy Carter was built was: foreign policy failure in Iran, economic stagnation and inflation.

We see the economic stagnation now, but inflation is slow to show up. Why? Because the 'mark to market' accounting rules cause the destruction of assets, so inflation's symptom (higher prices) are slow to show up. But, inflation is beginning even while we are having the stagnation. You see the inflationary trend in four ways: 1. the rise in oil pieces; 2. the rise in gold prices; 3. the drop in the value of Treasury bonds (they dropped 4 point recently) and the drop in the value of the dollar. You can see the rise in oil prices at the pump and gold is flirting with a heavy resistance price at $980/oz. How about the dollar? I will point out a couple of things about the graphic that shows the value of the dollar. First, note that the dollar had rallied strongly in o8 into 09 until the intentions of the Obama regime became clear. Then it went into a decline. The fact that the 50 day moving average went above the 200 day moving average is NOT a golden cross for the dollar, because the MACD (lower graph) remains negative (the black line remains under the red line). Note that such a trend continues for a couple of months, so the decline of the dollar will continue. Furthermore, the crossing of the averages occurs because of an anomaly in how recent prices affect the averages: the 50 day moving average is topping out, but is still effected by the end of the rise in the dollar, while the 200 day moving average is dropping, because of the recent steep drop. The upper graph shows that the dollar is not oversold (is not under the lower line) so when the dollar does drop below the lower line, it will have a hard time to rally. If we look at the chart of the dollar calculated on a daily basis, we see the opposite of the golden cross, i. e. the 50 day moving average drops below the 200 day moving average.

The dollar will drop much further and will be replaced as a world reserve currency. Then economic stagnation and inflation will accelerate.

What to do in the meantime? Timing is important. Stay in stocks now, but sell all bonds and treasuries. These will lose value. Have a few gold and silver coins, gold-mining stocks.

Those green shoots claims.

The Obama regime claims that it has stabilized the economy and that a recovery is just around the corner. The latest and breathless claim is that initial unemployement claims have dropped a lot more than expected. When you look at the numbers, we find that the drop is in INITIAL claims and it is still above a half million more unemployed a month. So, unemployement has risen in every month since Obama was elected, especially after he became the alleged President. With the prospect of increasing taxes, difficulty of getting financing and the coming upsurge of energy costs if the Senate passes the Cap and Tax bill, businesses are laying off people in droves. There is no cure for the fungus of ObamaSocialism untill we have a Conservative Congress.

How to deal with nuclear proliferation.

Rogue regimes are trying to build nuclear weapons all over the world. The source of the cancer is N Korea that has shown that a small, backward impoverished nation can build a nuclear bomb and the missiles to deliver them. N Korea is also selling its knowledge and materials to Burma, Syria and even Iran.

The Israelis have taken out the Syrian facility, going against the Russian anti-aircraft facilities that were supposedly impenetrable. The Syrians did not know what hit them.

The US is also preparing methods to deal with nuclear installations that are buried deep in the earth. We had a bunker buster bomb, the BLU that was used agains Saddam. A new bomb is in the making, called the Massive Ordnance Penetrator, or MOP. This bomb is 10 times more powerful than the BLU, weighs 15 tons and carries 5,300 lbs explosive. It will deal with bunkers buried 200 feet deep. We can give a couple to Israel.

Here is a picture of the effect of the BLU:

White House sets up Informants Network.

The White House is creating an increasingly chilly political environment. The latest shoe of the centipede to fall is the creation of an Informants Network, where Obamabots are urged to report on citizens sending about emails that carry "fishy" stories about the Healthcare bill before Congress. The last time I saw such a network was in Hungary when the Communists took over. Adding to this obvious attempt to intimidate is the charge by Barbara Boxer that opponents of the bill are trying to hurt the President, that they are organized and represent elements bent on hurting the Country. Nancy Pelosi has gone as far as charging that opponents at Town Hall meetings carry swastikas.

For the record:
1. The health care bill is aimed at bankrupting insurance companies so we are all forced into the government plan. So say a couple of Dem House members;
2. Barak Obama did say that he wants a single payer, government run insurance, so he is lieing now when he says that we can keep the insurance we have;
3. The govt plan does plan to ration health care. It is in the bill.
4. The government plan intends to make cost savings by denying some care to seniors and give them counseling about ending their lives.

These are not "fishy" stories, but all of them documented.

The case for a coming economic doom.

It is interesting how almost every point of the compass forecasts doom for the US economy and the dollar. Chinese soothsayers, economists not in the employ of the Obamabots, several pundits I read, the cycle theories of Uncommon Wisdom, the Rev Wilkerson and his prophetic visions from God and my own visions based on history, economic theory, etc. We do not know exactly when it comes (between now and 2013) or even how it will come, but we know it is coming.

We know that a Conspiracy in the banking world has put us on the skids in Sep 2008 and we know that they are still in power. Seeking Alpha paints a truly scary vision of the next bubble being formed as I write this; a bubble the bursting of which the cycle theory forecasts for 2010. I have collected the graphic from Seeking Alpha.

http://ragingbull.quote.com/mboard/boards.cgi?board=CLB01354&read=821

The size of the bubble is estimated as one quadrillion dollars. This amount will devastate the world, certainly us and kill the currency. Prayers are really in order, because Babylon is about to burn.

Is the economy really recovering?

One of the easiest way to answer this question is to look at rail transport, because goods and commodities travel by rail. There is a web site that tracks traffic on the rail in 4 different ways and also tracks the rail traffic on each carrier. Whichever way you look at the data, the conclusion is clear: there is no significant recovery. NOTE that rail traffic fell off precipitously in Q4 of last year, after the FED engineered the sequestering of bank funds (already reported in an earlier post). The website that reports on rail traffic in more detail is:

http://railfax.transmatch.com/

What of the recently reported increase in consumer spending? The 0.4% rise in June may be due to the rise in gasoline prices.There is economic recovery in Asia but not here. Remember! The Obamabots benefit from continued economic crisis, so the last thing they want is for the downturn to end. Remember the Joker! As long as we are in economic stress, Obama can offer "solutions." It was and is a Munchausen by proxy insanity.

Obama caricature brilliant.

The Joker was a fictional character in Batman. The Joker caused all manner of cises in order to take over Gotham City, just as Obama tries to take over the United States. It is a brilliant satire because it is based on the truth.

How inflation works.

The concept of inflation and how it works is not clear to many people. And there is a new phenomenon to understand: how statists try to hide it.

Let's start with a hypothetical example so the pure concept can be grasped. Let us take a hypothetical County that is sovereign and issues its own currency: 2 million Talents. The people accept the currency and soon the wages and prices of everything adjusts. There is a problem though: the currency is inconvenient, because the change is difficult to handle. For example, how do people deal with items that cost only a fraction of a Talent? It's difficult. So, the County Council decides to issue a new currency called Dollars. For every Talent turned in, the Bank of the County issues ten Dollars. People are told to adjust wages and prices by a factor of ten. So, prices go up. Is this inflation? The answer is NO. Why not? Because the relation between currency and what it buys remains the same. The ten Dollar you got for one Talent buys what one Talent used to buy.

Now, suppose that the Council is taken over by people voted in by the poorest citizens, who want free education, free health care, free lunches for their kids and so forth. To pay for their promises members of the County Council decide to print another twenty million Dollars to spend on new programs. This makes for forty million dollars total currency. Is this inflation? YES. Why? Because there is more currency without an increase in goods, so the County in fact acquired half the goods and services of the County and the citizens lost half of their property.

The response to inflation is an attempt by the citizens to increase the price of their goods for sale and the wages they get paid.

How about the County Council? If the Council imposes price controls, it will in fact create a Black Market and goods will become scarce and difficult to buy. If the Council does not try to control prices and wages, it will have to issue more currency to keep its promises.

There is a new method for the government to keep prices and wages in check: create a Depression. This is done by instituting the so-called 'mark to market' accounting. The County Council declares that there is no market for houses so the mortgage held by the Bank of the County is worth zero. Commerce pretty much comes to a halt. The County Council issues credit to the Bank of the County so it can keep the economy going. By reducing economic activity, the EFFECTS of inflation (i.e. higher prices and wages) are not seen.

If the citizens remain in the dark as to what is causing the Depression, the Council can keep in power and dole out currency so the citizens do not starve. Inflation now is hidden, but it is there nonetheless. How do we know? Because citizens of other Counties know about the cheapening of the DOLLAR and the value of the DOLLAR with relation to other currencies will decrease. You can see how the Socialists decreased the value of the US dollar with relation to gold. You see, gold has an intrinsic value, which equals the cost of producing it. Ths Socialists in fact had gotten the value of the increase in productivity and spent it on their schemes to buy votes.