Demise of the Dollar

Ultra-liberal columnist Stephen Dick exposes his complete lack of understanding an issue yet again. He recently wrote in defense of the Federal Reserve’s announcement to buy another $600 billion of debt. Mr. Dick blasts anyone who dare suggests that this is a bad idea (in his land of left-believe world, the only opposition comes from the GOP).

On an emotional level, Mr. Dick’s and Mr. Bernanke’s sentiment is admirable: spur economic recovery and get businesses hiring. The sad truth is that in order for this to actually work, all normal economic sense must be suspended.

Independent analysts at Weiss Market Research indicate that the Fed’s move is not without its cost. Indeed, Larry Edelson calls the Fed’s action a “big fat lie:”

******
Here’s why:

First, because the whole concept of “buying Treasuries” is a smokescreen. What Bernanke is really doing is running the money printing presses, and it’s no secret. Even the emperor himself knows he has no clothes.

Second, because Bernanke also knows — all too well — that he’s not truly pumping money INTO the U.S. economy. In reality, the U.S. economy is leaking like a sieve. So for all practical purposes, he’s pumping the money OUT OF the U.S. economy — to countries overseas.

Third and most important, the “big number” — $600 billion — is meaningless. The Fed says quite bluntly that they will … “regularly review and adjust the program as needed to best foster maximum employment and price stability.” In other words, they’ll blow right past the $600 billion mark whenever and however they darn please.
******

The biggest bottom line is that the Fed’s action intentionally devalues the dollar. Saving for the future? Have parents or grandparents living off of their fixed income? Those precious U.S. dollars will be worth less as commodity prices rise.

Now liberals like Mr. Dick stampede to ridicule talk of inflation as nothing but made-up mythological apocalyptic crazy-talk from those dastardly Republicans:

******
The congressman from my district, Mike Pence, wants to see Congress strip the Fed’s mandate on unemployment and concentrate on inflation. There are a lot of problems with this, but start with the fact inflation is almost nonexistent.
******

Then in typical liberal fashion, he immediately contradicts himself as he writes:

******
(I know, anyone who goes to the grocery or to get gas or to a movie might argue with this.)
******

There is a reason we “might” argue with this: inflation is real. Although not reflected through the magic of the official government numbers – yet – commodity futures prices have already accelerated upward. Four commodity futures indexes tracked by Bloomberg show that new highs have been reached in late October to early November. Even though they have backed off since then, the uptrend remains in place. Global demand and a devalued dollar will be a bitter pill for the average American to swallow. Martin Weiss offers this sobering conclusion:

******
Recession is actually the LESSER of the evils! Turning to the possible government responses to the problem, the CBO follows Dad’s logic almost to the letter, writing that

…Bankruptcy — defaulting on U.S. debt — would be a disaster, making it extremely difficult for America to borrow for many years to come.

Cheating and stealing (e.g., printing money) — which, as Mike Larson explained on Friday, now seems to be what Fed Chairman Bernanke favors — would also be a huge mistake, again making it much harder for the U.S. to borrow in the future.

In conclusion, the ONLY viable option, says the CBO, is … austerity. Yes, they admit, it would have negative consequences, driving the economy into a deeper recession. But, they say, a deeper recession would be the lesser of the evils.

This is the urgent dilemma America faces right now: Do we want to continue playing games with our money … or do we want to treat it with the respect it deserves?

If we do the wrong thing, we will doom future generations — and ourselves — to impoverishment. If we do the right thing, more economic pain is inevitable. But outside the fantasyland of Washington and Wall Street, it’s the only viable option.
******

Mr. Dick can believe what he wants, but economic reality will, without doubt, have the final say.

Veterans Day Salute

No matter how many times I read this, I feel a swell of emotion and pride:

******
"Nineteen forty-five was the worst year in human history - more people killed, more buildings destroyed, more high explosives, more fires than ever before or since. In 1945, the sight of a group of teenage Germans or Japanese or Red Army troops, in uniform and armed, brought terror to civilians in France, Belgium, Holland, Korea, the Philippines, China, Germany, Poland, and elsewhere. It brought terror because those squads of teen-age soldiers meant rape, pillage, looting, wanton murder, and senseless destruction. There was an exception: a squad of teen-age soldiers of democracy, in uniform and armed - because that squad meant candy, C-rations, cigarettes, and freedom. That was true in France, Belgium, Italy, the Philippines, China, even Germany, and, after August 1945, Japan. We had sent the best of our young men halfway around the world, in both directions, not to conquer, not to destroy, not to rule, but to liberate." (Stephen E. Ambrose, "The Lasting Legacy of World War II," One of Freedom's Finest Hours, Hillsdale College Press: Hillsdale, Michigan, 2002, p. 6)
******

Have another great day in the land of liberty!

Dishonoring the Greatest Generation

If you happen to love America and if you happen to honor the role of American military men and women in securing and protecting freedom around the world, then you’ll want to sit down, relax, and take a few deep breaths before continuing. If you use it, make sure that you have taken your blood pressure medicine. Why preface my article with all this? Simple. This will raise your blood pressure and leave you boiling mad.


In July 2010, the National Endowment for the Humanities (NEH) sponsored a workshop entitled “History and Commemoration: The Legacies of the Pacific War.” College professors from across the nation were chosen to attend the seminars held at the University of Hawaii. Expecting an opportunity to visit impressive sites commemorating the American victory over tyranny, as well as meeting with other scholars who shared her interest in this facet of World War II history, Professor Penelope Blake experienced quite a different event.

In her own words, Professor Blake states:

******
In my thirty years as a professor in upper education, I have never witnessed nor participated in a more extremist, agenda-driven, revisionist conference, nearly devoid of rhetorical balance and historical context for the arguments presented.
******

In a letter written to her Congressman specifically requesting that taxpayer funding be withdrawn from the NEH, Professor Blake delineated several points demonstrating the intent of the presenters at this NEH sponsored workshop to disparage and dishonor the spirit and integrity of United States military personnel in general and the “Greatest Generation” in particular:

******
1. The U.S. military and its veterans constitute an imperialistic, oppressive force which has created and perpetuated its own mythology of liberation and heroism, insisting on a "pristine collective memory" of the war.

2. The Japanese attack on Pearl Harbor should be seen from the perspective of Japan being a victim of western oppression.

3. War memorials, such as the Punchbowl National Memorial Cemetery (where many WWII dead are buried, including those executed by the Japanese on Wake Island and the beloved American journalist Ernie Pyle), are symbols of military aggression and brutality "that pacify death, sanitize war and enable future wars to be fought."

4. The U.S. military has repeatedly committed rapes and other violent crimes throughout its past through the present day.

5. Those misguided members of the WWII generation on islands like Guam and Saipan who feel gratitude to the Americans for saving them from the Japanese are blinded by propaganda supporting "the image of a compassionate America" or by their own advanced age.

6. It was "the practice" of the U.S. military in WWII to desecrate and disrespect the bodies of dead Japanese.

7. Conservatives and veterans in the U.S. have had an undue and corrupt influence on how WWII is remembered.

8. Conservatives are reactionary nationalists (no distinction was made between nationalism and patriotism), pro-military "tea baggers" who are incapable of "critical thinking."

9. Relating to the above, even members of the NEH review board are not immune to "reactionary" pro-military views.

10. Veterans' memories of their own experiences in the war are suspect and influenced by media and their own self-delusion.

11. War memorials like the Arizona Memorial should be recast as "peace memorials," sensitive to all viewers from all countries, especially the many visitors from Japan.
******

Professor Blake did a magnificent job rebutting each of the points she includes in her letter.

Shortly before discovering this report about the NEH workshop, I finished reading “Citizen Soldiers” by historian Stephen E. Ambrose. Early in the book, within the first one hundred pages or so, Ambrose included accounts of some atrocities committed by American soldiers. Most of the incidents centered around the shooting of surrendering enemy and unarmed prisoners. Ambrose points out throughout his book that these types of atrocities were isolated and were not systemic to the general command structure of American forces. By the end of the book, as the Allies are making their way across Germany, Ambrose relates that some of the most valiant fighting by German soldiers occurred as they sacrificed themselves to slow the Russian juggernaut so that more of their fellow citizens and soldiers alike could have a chance to surrender to the American forces. They knew that the Americans came to liberate, not dominate.

Even though the European and Pacific Theaters of Operation presented their respective and unique challenges to young American boys thrust into a brutal global conflict, and even though cruelties by “our boys” have been documented, the final truth is that American combatants liberated island after island from Japanese cruelty and, in the end, liberated Japan itself from the totalitarian grip of brutal Imperialists.

It is a particularly despicable act on the part of these so-called academics who set about to dishonor and desecrate the sacrifice of thousands of young Americans who gave so much in order to not only preserve freedom in America, but to liberate countless others subjected to the tyranny of Imperial Japan and Nazi Germany. It is even more despicable that they are allowed to perpetuate their revisionist messages with the aid of taxpayer funding. It should certainly be clear by now to even the most casual observer that those living in the land of left-believe are ultimately bent on crippling America.

In both protest to this kind of nonsense and in honor of those who have served the cause of liberty and freedom, make a special effort to thank a Veteran and/or active servicemember this Veteran’s Day.

Liberty Over Slavery

"Today's Quote" in my local newspaper: "I prefer liberty with danger than peace with slavery" (Jean-Jacques Rousseau, Swiss-born French philosopher, 1712-1778)

I consider this a timely reminder for our day. Too many Americans are being seduced by the power-brokers who invite us to sacrifice a little liberty - and then just a little more - in order to attain security and peace. A glaring sample of this is the health care legislation that has been sold as America's "solution" for universal access to health care. In addition to mounting financial costs, there are also mounting costs to liberty as government herds us into their prescribed forms of health care choices.

I have written before that lasting liberty demands that we bear the consequences for our behavior. Those who are able to shift the consequences for personal behavior onto other individuals and groups have low, or no, motivation to change and improve. Consequently, liberty is eroded for everyone.

Everyone I know likes peace and security. I like peace and security. But peace and security without the truthful recognition of the high price of vigilance leads to enslavement. Those who have gone before us - those to whom we owe a debt we cannot pay - knew this full well:

The time is now near at hand which must probably determine whether Americans are to be freemen or slaves; whether they are to have any property they can call their own; whether their houses and farms are to be pillaged and destroyed, and themselves consigned to a state of wretchedness from which no human efforts will deliver them.


The fate of unborn millions will now depend, under God, on the courage of this army. Our cruel and unrelenting enemy leaves us only the choice of brave resistance, or the most abject submission. We have, therefore to resolve to conquer or die. - General George Washington, order issued July 2, 1776

As 21st century Americans, we are blessed to have elections through which we can choose liberty or slavery. As with any tool, it is useful only to the extent that we actually use it. So use it.

Choose liberty over slavery.

Legislating Death

Remember when Sarah Palin’s remarks about Obamacare death panels spurred the left on to an overtime apoplectic fit? Her studied remarks were labeled “disgusting” and “outrageous.”

Leave it to a liberal, though, to actually confirm the accuracy of conservatives’ analysis of social issues. In one recent editorial, “veteran Canadian journailst” Bogdan Kipling writes,

******
Had the Democrats merely listened to the wise counsel of such progressives as Reps. Jim McDermott (D-WA) and Texas maverick Jim Hightower and pressed for single-payer while they had a staggering majority they likely could have avoided all of this.

From a Canadian perspective, they might be far happier if they had. Yes, the Canadian system has some major flaws, but most of the country's 34-million inhabitants seem relatively happy with it. It provides all the necessities, but few of the expensive frills of the American system.

Then again most Canadians are hardy enough souls that they have no desire to cling to a life that is not really living. What could be more horrendous than to be kept alive for a few more months by excruciatingly painful operations that cost hundreds of thousands of dollars? What could be more undignified at the end of the life than to have a nursing-care attendant wake you up to wipe dribble from your chin? And what could be more heartrending than have your family and loved ones see you in such a pathetic condition?

When it comes to prolonging life beyond its normal range, Americans might do well to remember Shakespeare's immortal lines in Julius Caesar: "Cowards die many times before their deaths; the valiant never taste of death but once."

Suck it up America! By the time the ObamaCare disaster craps out; you're going to have to.
******

Yes, leave it to the left to determine that they are the best arbiters of what the “normal range” of life is. Being the elitist liberal that he is, of course Kipling perceives that Canadian citizens are “relatively happy” with their national rationed health care. That is the system that has been foisted onto them – for their own good, of course. With no choice, what else are they going to do but to “seem relatively happy” with it and “suck it up?”

But then, some Canadians take advantage of the ability to supplement their rationed “no frills” health care with American treatment by making the trip across the border to receive services in a more timely manner. Perhaps those who the Canadian system has determined are exceeding the “normal range” of life seek a second opinion.

Sure, at some point a person or family might have to decide when further care and treatment is fruitless. The dangerous arrogance lodged in Obamacare and all the other socialist style, government-run health care systems is that a government has the capability and the imperative to make that life-and-death decision in place of the patient and family.

Even though the left continually want to make Palin and other conservatives out to be backwater know-nothings, whose analysis of today’s issues always ultimately ring true?

The Party of Fat-Cats

It has been announced that the new National Security Adviser appointed by President Barack H. Obama is Tom Donilon. It comes as no surprise to me that a president would appoint his cronies to administration positions, and Mr. Donilon does have national security experience in multiple administrations. So an appointment like this comes as no surprise to me. In all honesty, I have no personal objection to it; as I indicated, Washington politics are all about favoritism.


But let’s clear up one BIG MYTH, shall we? The myth is that the Democrat party rejects the influence of Big Business – the party that stands for and with the “regular American.” As a Senator and presidential candidate, Mr. Obama railed against the lobbyist culture that controlled politics and promised to end “business as usual” in Washington politics. With this in mind, let’s take a quick look at Mr. Donilon’s involvement in the Democrat’s new Washington.

In 2006, Mr. Donilon oversaw the office from which Fannie Mae lobbyists used their ties to politicians in an effort to prevent increased federal oversight of the mortgage giant. In 2009, it was reported that Mr. Donilon “earned $3.9 million [in 2008] as a partner at the law firm of O'Melveny & Myers LLP, where his clients include Citigroup, Inc., Goldman, Sachs & Co., and Obama fundraiser and heiress Penny Pritzker.”

The Democrat party, with its ties to Big Business, Big Media, and Big Entertainment, bears very little resemblance to the mainstream Americans it claims to protect.

Let’s bust the myth that the Democrat party has no ties with Wall Street. The Democrat party includes plenty of Fat-Cats.

New Venture Addendum

I forgot to add that my posts on the Liberty Tree are under the name TheOldSalt.

New Venture

At the invitation of Peter Heck, I began a new venture a few weeks ago. Actually, it's an old venture in a new skin. I was one among some others he invited to participate in Liberty Tree, the "official blog of the Peter Heck Radio Show."

Peter is working to create a current events style site that attracts a variety of regular readers. Those currently writing at the site are invited to submit articles frequently on current, breaking, and out of the ordinary news items. For the time being, it is free-wheeling; we'll see if Peter "reigns" us in along the way.

So my invite to you is to give Liberty Tree a go. Go to the site regularly to see what the recent happenings are. Leave some comments if you wish, but don't feel under any obligation. The goal is to achieve frequent viewer volume through quality posts.

I do not plan to take down ChucksChants, but as you can already tell, this new venture, along with older ones, may slow down my volume here. I'll see what happens.

Thanks!

Just a Bit ironic

I caught a part of some ESPN radio while driving yesterday. They reported on further developments in the case against Roger Clemens, who is accused of lying to Congress while under oath.


Oh, the horrors of it all! Lying to Congress! You mean, we mere mortals can get into trouble for lying to Congress? Of course we can.

So, when does Congress get into trouble for lying to us? They do it every session. They all take an oath when sworn into office that they will protect and defend the Constitution of the United States of America. They break that oath most every session. They feed the American all lines of nonsense in the hopes that it will garner them votes.

Roger Clemens in trouble if he is convicted of lying to Congress. Ironic, isn't it?

Upset

A few days ago (9/7/10), FOX News printed a report detailing United Nation concerns about Iran’s nuclear program…

******

The U.N. atomic agency expressed alarm Monday about Iran's decision to bar some of its inspectors, suggesting that its efforts to monitor the country's nuclear program were suffering as a result.

The unusually blunt International Atomic Energy Agency warning was voiced in a restricted report on Iran made available to The Associated Press that otherwise contained few surprises. It followed Iran's recent decision to strip two experienced inspectors of the right to monitor its nuclear activities after the two reported what they said were undeclared nuclear experiments.

"The IAEA's reports of obstruction and Iran's failure to cooperate are troubling to all who care about non-proliferation and global security," White House spokesman Tommy Vietor said. (“U.N. Nuclear Agency Sounds Alarm Over Iran,” FOXNews, 9/7/10)

******

With world peace hanging in the balance, what is top priority with Big Media? Why some heretofore obscure pastor in Florida who plans to burn some Korans on Saturday, 9/11. Oh, the horror of it all!

Left, right, centrist (if there is really such an animal)… everyone is up in arms over some pastor declaring that Korans will be burned on Saturday. Imagine… if he was inviting the world to burn the American flag or religious texts of the Judeo-Christian faith, he would be hailed a hero and receiving offers from all across the fruited plane to assist him in his endeavor to perpetuate freedom of speech. But Korans? Again, oh, the horror of it all!

Let’s see… who to focus media attention on? A belligerent, Islamic terrorist-sponsoring nation that is on record declaring that it wants to vaporize the Jewish nation and its “great Satan” ally or an obscure pastor in America who wants to burn a few Korans. Yeah, certainly a no-brainer there… a private expression of dislike toward the ideological underpinnings of a group that attacked America and carry that protest out in a free nation. Let’s get the world agitated over that. There’s the ticket!

Must Have Forgotten

A Laborious Day announcement from our Fearless Leader:


Obama lays out $50 billion infrastructure proposal (MarketWatch, 9/6/2010)

He must have forgotten about the other billions already earmarked for infrastructure repairs. Maybe his money czars will help him find that account.

Liberals Are Dangerous

"It would be good... if he could be a dictator for a few years because he could do a lot of good things quickly." -- Woody Allen on President Barack Obama. Allen expressed frustration with Republicans who have tried to block the president's agenda.


"Traveling for tourism today is a right." -- European-Union commissioner Antonio Tajani on an EU plan to subsidize vacations for people who cannot afford them.

"It may be necessary to put democracy on hold for a while." -- Prominent scientist James Lovelock, arguing that governments must fight global warming over public opposition. (The Guardian, 3/29/10)

"It may sound like a hollow defense, but in Hollywood I am not sure a 13-year-old is really a 13-year-old." -- Washington Post television critic Tom Shales on the arrest of director Roman Polanski in Switzerland for the 1977 rape of a 13-year-old girl.

When you let them speak for themselves, it doesn't take a rocket scientist to figure out why liberals are dangerous.

Economic Reality Lining Up with Predictions

I have been referring to the Weiss analysts for some time now. I know that it is best to not rely upon only one voice/opinion when it comes to market predicitions, even when the predictions are based on solid evidence. There is always the risk of personal bias when interpreting/applying the data and evidence.

However, when more sources begin making similar observations, then perhaps it is time to sit up and take notice. Other sources, notabley MarketWatch and Bloomberg, have run articles with the following headlines: Lack of Jobs, Foreclosures May Keep U.S. Housing Depressed & Why today's declines are just the beginning. For weeks and months, the nature of their articles has been to deny, or at least question, the validity of "double-dip" recession talk. They may be beginning to change their tune. The folks at Weiss Research, meanwhile, have been anticipating these types of market moves for some time. At the same time, they have not ignored the positive market direction since March 2009. They do not believe in sitting on the fence when a visible trend is in place. They just want to keep from being enamored by wishful thinking.

Anyway, to get back on track, economic reality is beginning to settle in. Euphoria based on false hope can last only so long. Running bigger and bigger deficits can last only so long. If the feds still had plenty of resources and leeway in their fiscal and monetary policy bags, I would be writing a different slant. But they don't. They may pretend they do, but they don't. The Fed's interest rates are close enough to zero to call them zero. They can't go any lower to make a difference. Meanwhile, folks who have saved and made reasonable decisions for interest income suffer from these paltry rates. The Fed has no room to keep issuing debt. They will likely keep spending too much, but there is no room to make a difference here. They will keep printing dollars, which also hurts responsible Americans who have planned reasonably for their financial future. But creditors are not going to buy American debt when they know that the interest they receive is going to be essentially worthless when inflation resumes.

I wish we were entering just an economic quagmire. At least we could work in a stalemate environment. But it is not even a quagmire. The Feds are losing the economic war, and they are losing it in a hurry.

Nevertheless, there are those who do believe that there are actions to take to preserve, and even grow, wealth in this environment. The folks at Weiss Research are some who believe that. They still believe in the resolve of the American people. They are not the only ones, but they do have some easily actionable suggestions and resources. Keep giving them a look at Money and Markets.

"Therefore be as shrewd as snakes and as innocent as doves." (Matthew 10:16)

Why We Need LESS Government

It is no secret what lies at the heart of American patriotism and conservatism: limited government formed by the people to serve the people. Without limited government, there is no corner of our lives that government will not attempt to control. There is no element of life too petty for government to seek to coerce.

In Utah, the legislature passed a bill in March to legalize the personal collection of rainwater. For the first time, private citizens are allowed to "harvest" rainwater. But wait - as the infomercial ads declare - there's more! It is legal to "harvest" rainwater with a state permit and using state-approved containers.

Is this how we want to live? Do we want our almost every movement dictated by government? This is the antithesis of our American Founders' ideals. I do not suggest that they were perfect and free from a few control issues. But on the whole, they tried their hardest to institutionalize freedom, not tyranny. They sought to do this through the ideology of limited government. It still makes sense today.

Bankrupt?

My previous post about the president swimming in the Gulf coast was whimsical, satirical, and cynical.

Now, however, I turn to something in all seriousness: the continuing economic downturn. I refer to the Weiss analysis team frequently, I know. But they are far from the only folks seeing reality. And the reality of our economy - driven by the political policies of expediancy for way too long - is that it is running out of gas. Government has attempted to fuel it on taxpayer dollars - a lot of them - and there is little to nothing to keep it going. The private sector, which should be revitalizing the economy, has had the stuffing knocked out of it... and the hits keep on coming.

******

Herb Stein, chairman of the Council of Economic Advisers under U.S. President Richard Nixon, coined an oft-repeated phrase: “Something that can’t go on, will stop.” True enough. Uncle Sam’s Ponzi scheme will stop. But it will stop too late. And it will stop in a very nasty manner. The first possibility is massive benefit cuts visited on the baby boomers in retirement. The second is astronomical tax increases that leave the young with little incentive to work and save. And the third is the government simply printing vast quantities of money to cover its bills. Most likely we will see a combination of all three responses with dramatic increases in poverty, tax, interest rates and consumer prices. This is an awful, downhill road to follow, but it’s the one we are on. And bond traders will kick us miles down our road once they wake up and realize the U.S. is in worse fiscal shape than Greece. (Laurence Kotlikoff, "U.S. Is Bankrupt and We Don't Even Know It," Bloomberg.com, 8/10/10)

******

On the basis of the current economic data, we are in for tougher times. But we are not left without tools to respond. Tools like inverse ETFs (Exchange Traded Funds) which are built to go up as their underlying issues go down. Tools like precious metals - gold, silver, etc. - which can offer a hedge against inflation. Tools like options which can give some leverage and portfolio hedge protection. Tools like historic dividend-paying stocks that can give an income boost to a portfolio even during downturns.

Used in resonable proportion, each of these can protect and boost a portfolio during a dowturn. At the very least, going to largely cash positions can protect hard-earned wealth.

It's going to be a scrap. Keep your eyes open and your wits about you.

God bless!

In Midst of Ecological Disaster, Gulf's Beaches Still Useable

In the wake of America's "worst environmental disaster," the president is encouraging Americans to vacation along the Gulf coast, stating that the “beaches all along the Gulf Coast are clean, safe, and open for business.” (Julianna Goldman, "Obama Swims in Gulf Waters," Bloomberg.com, 8/15/10) We are also assured that "he pledged to make sure the region’s seafood was safe to eat and he promised to expedite the claims process." While the spill was in progress, Obama apologists countered critics by asking how the president could personally stop the leak. Now, however, Americans can be certain that he will personally ensure that the seafood is safe to eat. Unless, of course, the seafood cannot be made safe to eat, in which case we will be left to understand that the president cannot personally make the seafood safe to eat.

One significant fact left out of all the credit-grabbing gobbled up and spit out with no reflection on the part of the lap-dog Big Media is that conservative commentators were accurate from the beginning: the environment itself will take care of the largest part of this disaster. In spite of this administration's best efforts to thwart the efforts of local and state agencies to contain the spill, libs are stymied that the oil is being gobbled up by natural enzymes and stuff in the Gulf. Yes, the spill has been and is serious, but the reaction among the left that this disaster legitimizes more government enlargement is bogus... just like all their claims. Indeed, Big Media - appropriately dubbed "drive-by media" by Rush Limbaugh - has already moved on to other more relevent and newsworthy crises. The only thing left to report is the harm done to oil workers by the drilling moratorium. That would reflect badly upon the source of the moratorium, which cannot be allowed.

So be sure to stop by the Gulf coast and search for the "worst environmental disaster in American history." While you're there, keep your eyes open for the Loch Ness Monster and Bigfoot, too.

Economy Still Heading South

Mike Larson's latest Money & Markets article tells us plainly that government options for continuing to stimlate the economy & keep it going are hitting the proverbial brick wall. There is no more room to maneuver, and the economy has still failed to get restarted by their previous efforts.

******

What nobody in D.C. will tell you … but I will … is that a big economic slowdown is already baked in. There is nothing the Fed can do … nothing Congress can do … nothing the Obama administration can do … to prevent it.
The massive, reckless credit bubble that built up over the past couple of decades needs to be unwound. If you prefer the jargon term, it’s “deleveraging” — and it’s something we’re just going to have to get used to. (Mike Larson, Fed Policymakers Screw It Up Again, 8/13/2010)

******

Fortunately, there are real and reasonable steps that can be taken to protect portfolio value even in the face of another severe economic and market downturn. Even though timingthe markets perfectly is highly unlikely, it looks more and more like the reality of lousy economic data is poised to take its toll.

Speculators Like This Government

Speculators like this Congress and administration. Unlike big media portrayal, successful speculators are not anything like wild gamblers. Instead, they watch for the signs that indicate which way a market is likely to trend and wait for confirmation of that trend. Major speculators like George Soros take relatively small positions ahead of the confirmation for a couple of reasons: (1) with the amount of money they trade, they cannot wait until the last minute to make their big moves and (2) they try to capture even larger profits. But they are not fools; they work hard to limit their risk.

So why do speculators like this government? Because this government is making it easy for them to reasonably predict the outcomes. History repeatedly reveals that a lot of national debt, increasingly large deficit spending, and an increasing money supply lead to higher taxes, a shrinking economy, and more inflation. Only politicians seem to believe that they can achieve different results by making the same poor decisions. Knowing this, speculators are already positioning themselves to take advantage of the results of today’s ill-advised federal economic policies. They will not cause these economic catastrophes, even though they will be blamed for them. They will merely take advantage of the setup given them.

So what about normal folks like you and me? Well, unless we take advantage of the same economic information and simple tools that are available to enable us to ride the coattails of the bigger guys, we’re going to see our hard fought gains evaporate yet again. If you work with a financial planner, I suggest that you meet with him/her to discuss action to take in the event of another major market downturn. If you do not work with a financial planner, or want to do a little personal research, I recommend taking a look at the resources provided by Martin Weiss and the Weiss Research Team. The basic information resources are provided at no charge. Read some of them, draw your own conclusions, and make your own decisions.

http://www.moneyandmarkets.com/

Main Street Economy

Weiss Research team member Mike Larson offers more great insights about the disconnect between government and main street economics. Washington has shot their load and emptied their barrels, and main street is left with an anemic recovery teetering on the brink of another downturn and continuing unemployment. Meanwhile, the Fed ponders its next move. Mike asks, "Who cares?" ("Pushing on a String... Again")

The truth is that the policies of both current and past administrations and Congresses have pushed us toward the brink of inevitable financial disaster. The willing complicity of many citizens to ignore Biblical principles for living have resulted in overindulgence, overspending, and over extension. These missteps will have to be brought back into line before things return to normal. We will have those in political power who try to grab even more power, but nothing will be fixed until Americans once again say, "Enough!"

During a recent trip, I saw a billboard sponsored by a local TEA Party chapter. It read, simply and profoundly, "America... Bless God." A good summation, indeed.

Immigration Hypocrisy

Here's the article...

"Cuban migrant found in styrofoam boat still with Coast Guard"

OK, here's the deal. Every day we have hundreds of folks spilling across the America-Mexico border. This administration is so ticked off about stopping this nonsense that they have the urge to sue Arizona for trying to protect their citizens from dangerous ILLEGAL immigrants.

But here is an immigrant (they call Cuban escapees "migrants" I guess) trying to get out of a truly oppressive regime, and the official American policy is to send him back.

Where's the Obama administration on this one? Where's the polished speech for immigration reform? We ought to get this poor guy to American shores and give him some of the best we can offer. Surely he deserves at least as much as the felons, drug lords, and armed "re-conquistadors" coming across our southern borders!

So if we don't send Cuban refugees back, Castro is going to be ticked at America? Oh, the horror of it all.

This country - no, let me correct that right now. Political leadership in this nation gets more screwed up with each passing day. I think that somewhere along the way, America has gone through the looking glass, 'cause everything's getting backwards.

(Photo: This is the boat he rode in on)

Rate the President

If you want, follow the link below to the CBS poll to "rate" the President. CBS emphasizes that this is not one of their "scientific" polls [yawn]. Nevertheless, the results are encouraging for those who would rather live in AMERICA instead of a twisted liberal version addicted to big government.

******
Subject: CBS is letting you Rate the President

This is an older poll. But it's good to get opinions out there. Click the link and answer the questions!

CBS is letting you Rate the President

Here is your chance. Everyone should get a shot at this. Takes all of fifteen seconds and that is if you take a look at the results. First, I can't believe CBS is actually doing this.Second, that they're brave and honest enough to actually show the ongoing polling results.Take the poll yourself and when you submit your grading of how he is handling the top issues, a second page will come up showing you the current results of how America is voting. Remember, this ain't Fox doing this. This is mostly people who watch CBS. DO THIS! and pass it on.

http://www.cbsnews.com/blogs/2010/01/19/politics/politicalhotsheet/entry6116297.shtml?tag=

******

Will This Ever Stop?

I'll get right to it...

******
"No one will know until this is actually in place how it works." Senate banking committee chair Christopher Dodd, D-Conn., on the financial regulatory bill he helped craft. He added, "This is about as important as it gets, because it deals with every aspect of our lives." (cited in World, 7/17/2010, p. 16)
******

Maybe someone else can provide some commentary, because I am speechless at such obvious empty-headedness.

(I know that the poster photo is not Sen. Dodd, but we keep getting closer to tyranny with idiotic legislation like this.)

Glorious Fourth

"Men must necessarily be controlled, either by a power within them, or by a power without them; either by the Word of God, or by the strong arm of man; either by the Bible, or by the bayonet." -- Robert C. Winthrop (1809-1894), speaekr of the thirtieth Congress, addressing the Annual Meeting of the Massachusetts Bible Society, May 28, 1849.

Have a Glorious Fourth!

Why America Wins

Leaving the political insanity behind for a moment to return to American exceptionalism and the reason why America wins...

******
"The only difference is if a dog bites my ankle, it ain't going to hurt me." -- Army Sgt. Patrick Marziale, who lost a leg during service in Iraq, on how his life will be different with a prosthetic limb. (World, May 2009, p. 19)
******

This is why America always wins: militarily, economically, and compassionately.

Now if we can only clear some moronic thinking out of the federal government and a few state governments, Americans can get back to work making this Great Nation, and subsequently the world, greater.

Have a Glorious Fourth!

Why We are in BIG Trouble

So another article about ludicrous politicians hits my desk today. They just never stop coming these days. Here she is, the House queen bee...

******
Unemployment benefits are creating jobs faster than practically any other program, House Speaker Nancy Pelosi said Thursday. Talking to reporters, the House speaker was defending a jobless benefits extension against those who say it gives recipients little incentive to work. By her reasoning, those checks are helping give somebody a job. "It injects demand into the economy," Pelosi said, arguing that when families have money to spend it keeps the economy churning. "It creates jobs faster than almost any other initiative you can name." ("Pelosi: Unemployment Checks Fastest Way to Create Jobs," FOXNews, 7/1/2010)
******

Yep, we create jobs by snagging money from those who have jobs to pay for those who do not have jobs. There's a real big job-creator - ya betcha.

But Speaker Pelosi's absence of logical reasoning is not why this nation is in BIG economic trouble... or just BIG trouble. Speaker Pelosi has demonstrated over and over that she, like our president, has no clue about the reality of economics and the deleterious impact their pet liberal agendas have on the real American economy.

We are in BIG trouble because other Americans have voted her into office and retain her there. This means that many other Americans are as clueless about the workings of a real, live economy as she is, and they have bought into this insanity. We are in BIG trouble because many of our neighbors are actually voting for big government centralized economic policies. We are in BIG trouble because Americans are freely voting their way toward totalitarianism.

Troubling, isn't it?

Taxpayers Forced to Buy Junk

I just received and read this article and want to make many more citizens aware of it. I am angered beyond description. Amazingly, this points to an issue over which Democrats and Republicans are siding together in their concern and criticism.

******
Federal Reserve Chairman Ben S. Bernanke and then-New York Fed President Timothy Geithner told senators on April 3, 2008, that the tens of billions of dollars in “assets” the government agreed to purchase in the rescue of Bear Stearns Cos. were “investment-grade.” They didn’t share everything the Fed knew about the money... “Either the Fed did not understand the distressed state of some of the assets that it was purchasing from banks and is only now discovering their true value, or it understood that it was buying weak assets and attempted to obscure that fact,” Senator Sherrod Brown, an Ohio Democrat and member of the Senate Banking Committee, said in an e-mail when informed about the credit quality of holdings in the Maiden Lane LLC portfolio. The committee held the April 3 hearing.... Billions of dollars in Fed loans -- some possibly involving subsidies for the biggest banks and corporations -- remain secret, and Congress is demanding more accountability from the Fed than at any time in its history. ("Fed Made Taxpayers Unwitting Junk-Bond Buyers," Bloomberg, 7/1/2010)

******

I know that it's not easy reading through even these simple descriptions of the financial products involved (mortgages, derivatives, etc.). I get confused myself trying to follow it all. But the bottom line here is that even though Bernanke, Geithner, and others testified that the Fed was acquiring investment-grade debt during this bailout period, they failed to include details that the Fed, and consequently American taxpayers, is exposing itself to billions of dollars in below-investment-grade assets (ie, "junk").

The American people need to know this! Since I doubt that this is going to show up on the front page of the NY Times anytime soon, it is up to everyday folks like you and me to get this word out. So please pass this along (or at least the link to the article) to others on your lists.

Additionally, it would be beneficial to contact your Senators and Representative with information about this article and request that they demand an accounting of the Fed's actions.

While there can never be certainty about predicting the future, I think this contributes significantly to the reasons why America will not get through this economic storm unscathed, why we are headed into a "double dip" recession or worse, and why honest, hard-working, thrifty Americans are going to be severely punished for doing the right things all these years. I detest sounding so negative, but the odds keep stacking up in favor of some kind of catastrophic event. I'm not pretending to to know the magnitude, but it does not look as if it will be "business as normal" in America for awhile as long as these types of deceptions are going on.

Unlawful and Disorderly

Guess what organization is not in Toronto protesting the economic summit? That's right, the TEA party.

"Thousands protest summit in Canada; vandals smash windows, torch police cars" FOX News, 6/26/10

Yet all that liberals, democrats, and their Big Media minions can blather about is how "dangerous" all those TEA party participants are. Funny, I don't recall any TEA party gatherings breaking out into unlawful and disorderly conduct like vanadlizing property and torching police cars.

Alas, this has been the liberal, socialist, marxist, fascist way of doing things for quite some time. Alas, people still buy into their distorted and perverted worldview systems. Sad.

Sad But True

Oh no! Garfield's a democrat!

Sad but true.

Elitism at Work

It's a tough job forging mutual policy with international leaders like Russian President Medveded, so President Obama decided that a break from the routine was in order.

******
Traveling by motorcade, the two presidents ventured to Ray's Hell Burger in Arlington, Va., a popular hamburger joint just outside the nation's capital. Obama ate there last year with Vice President Joe Biden. ("The Great Obama-Medveded Escape: Burgers," Yahoo News, 6/24/10)
******

This would be fine if it did not present a perfect example of elitism at work. A significantly vocal and active segment of the constituency that President Obama and his party court seek to enact policy and law that limit or eliminate meat choices from American's diet...

"Why Not Change the Laws?"
"For Rep. Jared Polis, vegetarian meals would be healthy alternative to fatty school lunches"
"VeggieLawyers"

On top of this, Michelle Obama, with her husband's endorsement, is on a 10 billion dollar spending campaign to combat childhood obesity and diabetes...

"Let's Move Initiative Battles Childhood Obesity"
"Let's Move: Helping Parents Make Healthy Choices"

So let's see elitism at work:

President Obama campaigns among and solicits support from groups and organizations that want to restrict or eliminate meat from our diets.

Michelle Obama, with support from her husband, is spending our (taxpayer) money to encourage and teach American families to engage in healthier lifestyles which includes warning about the health risks associated with "fast food" diets.

President Obama decides that he wants to eat something other than what is prepared in the White House kitchen (we presume it is "healthy"), heads for a burger joint in Arlington, disregards the organizations from which he solicits support as well as his wife's initiatives, and chows down on a cheeseburger and fries.

Long after the rest of us are herded into eating tofu and rice cakes and drinking water, President Obama and those like him will be dining on steaks, burgers, and lobsters when they darn well please. Nice.

Facing the Music

The quarters from which America's beloved President Obama is receiving criticism are surprising. Criticism is coming from supporters...

Juan Williams of National Public Radio: "The problem here is this is an administration that, as Hillary Clinton famously pointed out [during the primary campaign], you may not want to answer the 3 a.m. call. These are guys who have tremendous vision about legislative achievements and specific things like healthcare, going forward on immigration, those difficult issues... But when it comes to the crisis, when it comes to the Gulf oil spill, the wars, the recession, they feel as if it's being imposed on them, rather than taking the helm. That's what Americans are sensing right now... Are you able to handle a crisis in a convincing way that inspires confidence? And so far, the president hasn't done that."

No disagreement there.

Nicholas Kristof in The New York Times: "Let's hope I'm wrong, but I fear that myopic policies by the Obama administration and its allies may lay the groundwork for a catastrophe in the Sudan."

Catastrophe in the Sudan? Nick, try catastrophe in America. But we do see your point.

Frank Rich, also The New York Times: "Unlike his unflappable temperament, his lingering failings should and could be corrected. And they must be if his presidency is not just to rise above the 24/7 Spill-cam but to credibly seize the narrative that Americans have craved ever since he was elected during the most punishing economic downturn of our lifetime. We still want to believe that Obama is on our side, willing to fight those bad corporate actors who cut corners and gambled recklessly while regulators slept, Congress raked in contributions, and we got stuck with the wreckage and the bills. But his leadership style keeps sowing confusion about his loyalties, puncturing holes in the powerful tale he could tell."

Not even the liberal lingo and slant can buoy the president up.

And how about this from no less than Maureen Dowd? "Now that some in the press have turned against him, Obama is proving very thin skinned... It hurts Obama to be a crybaby about it, and to blame the press and the 'old Washington game' for his own communication failures... Obama was always aloof and distrustful of the press despite the fact that most adored him during the campaign."

So members of the liberal media are awakening to the reality of BHO that have been disclosed by conservative observers all along. Wonders never cease!

As much as I might have chafed at the liberal drivel from a Hillary Clinton administration, I honestly believe that she would never, ever be trying to sell out and destroy America like this president is doing.

Senator Chris Dodd

This is one of the reasons why Americans are facing unparalleled peril...

******

Democrats Vote Down 5 Percent Rule

In a bid to stem taxpayer losses for bad loans guaranteed by federal housing agencies Fanny Mae and Freddy Mac, Senator Bob Corker (R-Tenn) proposed that borrowers be required to make a 5% down payment in order to qualify. His proposal was rejected 57-42 on a party-line vote because, as Senator Chris Dodd (D-Conn) explained, "passage of such a requirement would restrict home ownership to only those who can afford it."

******

I can't add anything to this.

Market Updates

It has been awhile since I sent any market or financial updates. Plenty has been going on. My hope is that if you are concerned about any financial portfolio you have and are actively monitoring / managing it, you have at least signed up for the no-cost services provided by the Weiss Research team. If so, then anything I post in this message is redundant.

I was going to put together a list of recent links to the latest Weiss Research articles, but was unable to complete it. Lo and behold, procrastination paid off. This morning (Monday, 6/21/10), Martin Weiss did it for me. Imbedded in this morning's issue, 4 Urgent Warnings From The Most Unlikely Source, are links to every article I was going to compile. I love it when a plan comes together!

Just to demonstrate that the Weiss team is not the only source for sovereign debt concern, here is an article from John Mauldin's "Outside the Box" e-mail: "Print Baby, Print." Mauldin's sources tend to be a bit more on the academic side, but if you forge through it, you will see many similarities between the various sources.

These are times in which a lot of financial and market shifts are taking place. Neither our nation nor the world has faced the magnitude of dynamics (such as national debt) we are seeing today. Indications are that the more successful portfolios will need to adapt to these changing times in order to preserve capital and hopefully profit. The good news is that the products available to potentially accomplish this have been on the market a long time. They are not exotic financial instruments that are beyond all comprehension. They are market instruments that make it easier for the normal person to be able to participate in markets that were once available only to dedicated traders. For instance, natural resource markets used to be available exclusively to futures traders. Now, however, they are available to everyday investors and portfolios through Exchange Traded Funds (ETF) and Exchange Traded Notes (ETN). They are similar to mutual funds, only they are traded on exchanges like stock. Over the past few years, many ETFs and ETNs have come to market. So if you want to invest in oil or natural gas commodities, you can choose ETFs like USO or UNG. Same with gold & silver (GLD & SLV). You buy funds and notes that track major indices: Dow Jones Industiral average (DIA), S&P 500 (SPY), and NASDAQ 100 (QQQQ). You can even buy ETF shares that are designed to profit when markets fall; again, Dow Jones Industrial average (DOG), S&P 500 (SH), and NASDAQ 100 (PSQ). The good news is that these allow IRA accounts to profit from bear (down) markets, too.

Anyway, the key goal is to know what investments and trades make the best sense in the prevailing economic and market conditions. Regardless of who you choose to follow, make it a point to check your portfolio regularly to keep a sense of how it is doing and to try to keep from being completely blindsided. If nothing else, if the major markets take another 2008 major nosedive, even a move to the sidelines into cash can go a long way to preserve wealth and provide capital for new investments / trades in better conditions.

Well, I've gone on longer than I intended to. Hope this helps. Stay alert.

Our Lawyer-Politician

President Obama’s complete lack of leadership capability is on full display as the Gulf oil spill debacle continues unabated. The president is demonstrating that we have a lawyer-politician instead of a leader in the White House. The most he has been able to muster has been to follow the old playbook of the lawyer-politician: attempt to deflect criticism, demonize, and threaten. In a Bloomberg article from June 15 (“BP may lose oil leases”), there are indications that President Obama is considering taking steps to prevent BP from doing business in America. I do not see how this is helpful at all.

While this is not a call to absolve any of BP’s accountability in this disaster, the president of the United States of America needs to stop calling down threats and start working with all parties, BP included, to bring real solutions to the table. This entire incident highlights everything that is wrong with replacing American enterprise and exceptionalism with the liberal’s brand of big government. Instead of allowing the talent, ingenuity, and capabilities of Americans across the nation to provide solutions, everything must be funneled through the big government bureaucracy that is Washington, D.C. We are witnessing the expected consequence… worse than nothing is getting done. Yet, this is the same big government that wants to get bigger through healthcare, energy, and environmental policies. They are going to fix everything that is wrong with America, we are told. Yep, good luck with that.

Bringing Home the Bacon

This one's for those lovable folks at peta.

Medal of Honor Recipient Ed Freeman

An e-mail about Ed "Too Tall" Freeman has been circulating for years. Literally. While I agree with the intent of the forward, which is to highlight Americans' general disregard for true heroism in favor of shallow pop culture, the e-mail use has not been completely accurate.

I ran across the factual details and think it will make an appropriate "forward" this Memorial Day (5/31/10). The accurate portion of the circulating e-mail goes like this:

******

'Ed Freeman... A True Hero'

You're an 18 or 19 year old kid. You're critically wounded, and dying in the jungle in the Ia Drang Valley, 11-14-1965. LZ Xray , Vietnam . Your infantry unit is out numbered 8 - 1, and the enemy fire is so intense, from 100 or 200 yards away, that your own Infantry Commander has ordered the MediVac helicopters to stop coming in.

You're lying there, listening to the enemy machine guns, and you know you're not getting out. Your family is 1/2 way around the world, 12,000 miles away, and you'll never see them again. As the world starts to fade in and out, you know this is the day.

Ed Freeman is coming for you. He's not Medi-Vac, so it's not his job, but he's flying his Huey down into the machine gun fire, after the Medi-Vacs were ordered not to come. He's coming anyway. And he drops it in, and sits there in the machine gun fire, as they load 2 or 3 of you on board. Then he flies you up and out through the gunfire, to the Doctors and Nurses.

And, he kept coming back...... 13 more times..... and took about 30 of you and your buddies out, who would never have gotten out.
******

For his bravery under fire, Ed Freeman received the Medal Honor in a ceremony on July 16, 2001:

******
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Good morning, and welcome to the White House...

By all rights, another president from Texas should have had the honor of conferring this medal. It was in the second year of Lynden Johnson's presidency that Army Captain Ed Freeman did something that the men of the 7th Calvary have never forgotten. Years passed, even decades, but the memory of what happened on November 14, 1965 has always stayed with them.

For his actions that day, Captain Freeman was awarded the distinguished Flying Cross, but the men who were there, including the commanding officer, Lieutenant Colonel Bruce Crandall, felt a still higher honor was called for. Through the unremitting efforts of Lieutenant Colonel Crandall and many others and the persuasive weight from Senator John McCain, the story now comes to its rightful conclusion.

That story began with a battalion surrounded by the enemy in one of Vietnam's fiercest battles. The survivors remember the desperate fear of almost certain death. They remember gunfire that one witness described as the most intense he had ever seen, and they remember the sight of an unarmed helicopter coming to their aid. The man with the controls flew through the gunfire not once, not 10 times, but at least 21 times. That single helicopter brought the water, ammunition and supplies that saved many lives on the ground, and the same pilot flew more than 70 wounded soldiers to safety...

As a boy of 13, Ed Freeman saw thousands of men on maneuvers pass by his home in Mississippi. He decided then and there that he would be a soldier. A lifetime later the Congress has now decided that he's even more than a soldier because he did more than his duty. He served his country and his comrades to the fullest, rising above and beyond anything the Army or the nation could have ever asked...

Commander Seevers, I'll now ask you to read this citation of the newest member of the Congressional Medal of Honor Society, and it'll be my honor to give him his first salute.

COMMANDER GEORGE SEEVERS: ...The president of the United States of America, authorized by act of Congress, March 3, 1863 has awarded in the name of the Congress the medal of honor to Captain Ed W. Freeman, United States Army, for conspicuous gallantry and intrepidity at the risk of his life above and beyond the call of duty.

Captain Ed W. Freeman, United States Army, distinguished himself by numerous acts of conspicuous gallantry and extraordinary intrepidity on 14 November, 1965, while serving with Company A, 229th, Assault Helicopter Battalion, First Cavalry Division Air Mobil (ph). As a flight leader and second in command of a 16-helicopter lift unit, he supported a heavily engaged American infantry battalion at landing zone X-ray in the Idrang Valley, Republic of Vietnam. The infantry unit was almost out of ammunition, after taking some of the heaviest casualties of the war, fighting off a relentless attack from a highly motivated, heavily armed enemy force. When the infantry commander closed the helicopter landing zone, due to intense direct enemy fire, Captain Freeman risked his own life by flying his unarmed helicopter through a gauntlet of enemy fire, time after time, delivering critically needed ammunition, water and medical supplies to the Paceeds (ph) battalion.

His flights had a direct impact on the battle's outcome by providing the engaged units with timely supplies of ammunition critical to their survival without which they would almost surely have experienced a much greater loss of life. After medical evacuation helicopters refused to fly into the area, due to intense enemy fire, Captain Freeman flew 14 separate rescue missions, providing life- saving evacuation of an estimates 30 seriously wounded soldiers, some of whom would not have survived, had he not acted.All flights were made into a small emergency landing zone within 100 to 200 meters of the defensive perimeter where heavily committed units were perilously holding off the attacking elements.

Captain Freeman's selfless acts of great valor, extraordinary perseverance and intrepidity were far above and beyond the call of duty or mission and set a superb example of leadership and courage for all of his peers. Captain Freeman's extraordinary heroism and devotion to duty are in keeping with the highest traditions of military service and reflect great credit upon himself, his unit and the United States Army. (CNN Transcripts)

******

Captain Ed "Too Tall" Freeman, American hero and Medal of Honor recipient, passed away in August 2008.

May God bless all of our Armed Forces personnel this Memorial Day.

Credit Crisis Warning

A quick update on new warnings sent by the Weiss Research team...

******

Heads up people. Something very big is happening in the global credit markets — something you darn well better pay attention to.
The very same “Credit Crisis” indicators that were flashing red before the stock market meltdown of 2007-2008 — the ones Martin and I used to get our subscribers out of almost all stocks, and “short” the market via inverse ETFs — are flashing red again.
Pay attention and you might save your portfolio. Ignore them and you could get slaughtered. (Mike Larson, "Credit Crisis Indicators Going Bonkers Again! Batten Down the Hatches!" 05-28-10)

******

Additionally, the Fitch's credit rating for Spain was downgraded this weekend, so the European sovereign debt issue continues to spread. Meanwhile, American political and government financial leadership continue to tell us that the economic recovery is still doing well. Who do you want to put your money on?

Weiss Ratings

I want to keep in front of everyone the market info coming from the Weiss Research team. Among the latest is their re-acquisition of their proprietary rating service. With that, Dr. Weiss comes out with guns blazing...

******

Later this morning, Weiss Ratings is issuing a landmark press release, warning that 20 giant U.S. banks are still vulnerable to serious financial difficulties — and even failure. (I’ll name them in a moment.) ("Weiss Ratings: 20 Giant Banks Still Vulnerable," 05-24-10)

******

Prior to that, Martin Weiss issued this interesting challenge to the other high profile rating services...

******

Dear S&P, Moody’s, and Fitch,
You are the world’s three dominant rating agencies, largely controlling the ratings of bonds and debts issued by thousands of corporations, municipalities, and sovereign governments. I am the chairman of Weiss Ratings, an independent rating agency. And today, I challenge you to promptly take the bold action that you have so far avoided — to downgrade the long-term credit rating of the U.S. government in order to help protect investors and prod Washington to fix its finances. ("Weiss Ratings’ challenge to S&P, Moody’s, and Fitch: Downgrade the Long-Term Debt of the United States Before It’s Too Late," 05-10-10)

******

Plenty more to be found at Money & Markets.

Socialism Fails

Advocates of socialism have for years pointed to European nations as proof to their arguments that centralized economies work. Several Euro-zone nations have implemented varying degrees of government subsidies and social services without introducing the cruelties of communism or some other form of totalitarianism. Consequently, some of our own citizens have wondered why America cannot climb onto the European socialist bandwagon. Indeed, several guests on talk shows over the past few months have treated those who warn of socialism’s dangers as if they are merely conjuring up a false “bogeyman.” According to them, there is nothing to fear from socialism.

Those honestly seeking truth have understood all along the dangers of socialist economies. Whether implemented with or without totalitarianism, socialism always fails. It cannot support its own weight. As a saying goes, “socialism works great until it runs out of other people’s money.” Look at those same European nations that have been held up as socialism’s models. They are in chaos. Their economies are collapsing. In fact, they would have collapsed already if not propped up by external infusions of capital. How did they achieve these dire straits? After running out of their own money to support their redistribution of wealth scams from the productive to the unproductive, they commenced massive borrowing. For awhile, accumulating sovereign debt works; therefore, socialism continues to appear to work. Citizens and politicians remain duped and willfully ignorant of the truth. Eventually, though, the bills come due, and creditors stop accepting more debt as payment of debt. In other words, they can no longer pay their credit card bills with credit cards. So entire nations wake up to the reality that they are bankrupt. What happens to government social services then? Ask the citizens of Greece; they are experiencing it firsthand.

What does this have to do with Americans? We are on the verge of finding out, friends. If it were just that we will be losing the European portion of global economic recovery, that would be bad enough. Unfortunately, it’s worse. Compare America’s spending, debt, and deficits to those of failing European nations, and we sadly discover that our numbers are no better. In fact, they are worse than some of those nations already facing austerity measures. In all likelihood, we are seeing the proverbial chickens come home to roost as a result of our lifetime of unnecessarily reckless runaway spending. It will not be a pretty picture. But that’s socialism for you.