Sunday, February 20, 2011
America's Pathway To Insolvency ... Near Completion
In reading an article in the American Thinker, Jeff T. Allen highlights that our country is reaching a tipping point, that point in time where there is no return, where economic and societal crisis will be upon all of us. He believes that this crisis will visit us this year where averting a debt and currency implosion will crush us all.
Three major signs passed us by last week while we have been watching the Grammys, listening to reports from the unrest in the Islamic middle-east, and watched the start of the new season of the reality hit, Survivor.
All three of these events show a path of upheaval to the likes our nation has never seen and investing in Gold may not protect the average family nest egg.
First, the leadership in the House of Representatives backed off on its original promise of real control of government spending against an Executive Branch that is hell bent on pushing the money throttle to the floor.
Second, employment reporting by the government is never as clear as it is always first reported. The number of people unemployed always goes up "unexpectedly" yet what is rarely reported are the number of people who QUIT looking for work because it has become hopeless. All of these numbers are set against a "Benchmark" which were also revised. These benchmarks effect the adjustment of interest rates charged on the servicing of borrowed money which effect how well our current government and economic systems will work.
Third, Social Security payments to those who collect benefits has now passed collections by over 56 Billion dollars for 2011 as projected in a report released by the Congressional Budget Office (CBO). This occurrence was not supposed to happen until the year 2020
This excerpted and edited from the American Thinker -
A Tipping Point Is Nearing
By Jeff T. Allen - February 14, 2011
Out of a $3.8 trillion government spending agenda, the wonkish Mr. Ryan, considered by many to be the best hope for fiscal conservatives, revealed proposed cuts of a whopping $74 billion. After some tense meetings, (referred to as a "revolt" by some media) newly elected conservative congressmen convinced the leadership to commit to unspecified cuts of an additional $26 billion. The actual "cuts" from any such legislation will, of course, be less once the appropriate political log rolling and deal-making are done- let's call it $50 billion (while the deficit grows by $26 billion during the week it takes to discuss it). So go the hopes for serious spending restraint from our newly elected wave of rabid, anti-big government Republicans. They may deliver cuts 1.3% of total spending that is itself approximately 90% greater than collected taxes. Let's mark this spending reduction effort as an epic fail, at a time when epic success is almost required for survival.
The little-noticed (not by the bond market) aspect of the report was the "benchmark" revisions, an attempt to get the total picture more accurate each year than simply adding up all the monthly change numbers. This year's benchmark revisions showed two alarming things: a decline from previously reported employment in December 2010 of nearly 500,000 jobs, and a reduction in the workforce of a similar amount.
In context, a 3.7% yield does not appear high by historical standards. In our current predicament, however, it is heading toward Armageddon. If interest rates on our debt rise by 1% it means our interest payments rise by more than $100 billion dollars annually (not including the interest payments owed to the Social Security Trust Fund--see below). As global liquidity and deficit spending have accelerated, food and commodity prices have skyrocketed, sending many prices up 25-50% worldwide since August.
[Social Security] Any limp action by conservatives to bring this program into solvency can be expected only to slow the raging river of red ink this behemoth program (along with its twin Godzilla, Medicare) spills on U.S. citizens. With no political will to fix them, these "entitlements" will obligate Americans to borrow more and more money from China--to honor promises we simply refuse to admit we can't keep.
So why do these developments argue for a crisis of Great Depression proportions? Because they speak unequivocally of our pathway to insolvency, and the potential of currency failure via hyperinflation, despite the hopes of conservatives and market participants to see a halt of such direction. Housing prices, the foundation of so much of private citizen debt loads, are destined for stagnation -- not inflation -- as the supply of homes is far greater than the demand -- 11% of the nation's homes stand empty today. When the world begins to recognize that there is no fix for America's borrowings, a fast and brutal exodus from our currency and bonds can send us a shock in mere weeks or months.
Unlike the Great Depression, however, we will enter such a shock in a weakened state, with few producers among us and record mountains of debt. More cataclysmic is the specter of inadequate food, as less than 4% of us farm, and those that do may cease to be as productive or may not accept devalued currency as payment, should the tipping point be crossed. Corn and wheat prices in the U.S. have nearly doubled in less than 12 months, using our rapidly evaporating currency as the medium of exchange.
The time for action has passed, which may only become apparent as the "aid" of easy money becomes seen as the harm that it is. May we all be spared the worst, but I offer no such prayers for those responsible. The harm that comes will be swifter, and more severe, than most of them thought possible.
We are not close to a growth-led recovery, and with the actions of our 44th President of the United States/Carter's Second Term acting in interference to the efforts of States to carry out their elected duties, we are definitely a nation in economic chaos.
Friday, February 4, 2011
The Lawless, Soft Tyranny Of Carter's Second Term
This week saw the coming and going of some major movements on the 2,700 page health care law that was passed last year by the Democrat Party, without debate, without reading, and without transparency that went by the official name of H.R.3590 - Patient Protection and Affordable Care Act ... "ObamaCare"!
On Monday, January 31, 2011, a federal district court judge in Florida ruled that a key provision in the new health care law is unconstitutional, and that the entire law must be voided.
Federal Judge Roger Vinson agreed with the 26 state-government plaintiffs that Congress exceeded its authority by passing a law penalizing individuals who do not have health insurance.
"I must reluctantly conclude that Congress exceeded the bounds of its authority in passing the Act with the individual mandate," Vinson writes. "Because the individual mandate is unconstitutional and not sever-able, the entire Act must be declared void."
On Wednesday, February 2, 2011 the United States Senate held a vote to REPEAL the 2,700 page health care law. Senate Democrats fended off a Republican effort to repeal the law overhauling the health care system, voting down the measure, 47-51, submitted as an amendment to an airports construction bill. So, Senate Democrats voted to uphold a Federal Court voided and unconstitutional ObamaCare law.
This places our government in a Constitutional crisis. For four days now, our 44th Presidency has fail to respond, and has sought to obstruct the intent of the Judges decision.
This excerpted and edited from NewsOK -Alaska gov.: Enacting health care may violate oath
By BECKY BOHRER, Oklahoman - Published: February 3, 2011
Alaska Gov. Sean Parnell is asking his attorney general to advise him on whether implementing the federal health care overhaul would put Parnell in violation of his oath of office.
Parnell says he took an oath to support and defend the constitutions of the United States and Alaska. While the Republican governor concedes the issue is expected to be decided by the U.S. Supreme Court, he says he has a duty to uphold the law and wants the attorney general to advise him on what the duty is after the Florida ruling.
This begs the question; Why doesn't this ruling have every elected official and agency head in violation to their oath of office?
It turns out that there is a federal statute which will place States ... all States in contempt of this ruling if they continue to spend federal money to set up the bureaucracy required to implement the ObamaCare law.
Radio host and former federal lawyer, Mark Lavin posits, "Now the states of Wisconsin and Florida, it appears, have decided that there's no law for them to implement any longer. And they are in fact correct, since the last position of the law as it applies to Obamacare is that there is no law.
And so the states should stop implementing this statue until there is a different ruling from a higher court. If the Obama administration wants to continue to violate the Constitution, to defy a federal judge, and play rope-a dope, then you states have no responsibility whatsoever to comply.
And you insurance companies ... there is no Obamacare law officially. It's been voided. And it is not an act of civil defiance to refuse to adhere to any aspect of it.
The act of civil defiance -- that is, the act of constitutional violation -- are occurring on the other side." said Mark Lavin Thursday.
This is what 18 USC Section 641 states:
Crimes and Criminal Procedure - 18 USC Section 641
Legal Research Home > US Laws > Crimes and Criminal Procedure > Crimes and Criminal Procedure - 18 USC Section 641
Sec. 641. Public money, property or records
Whoever embezzles, steals, purloins, or knowingly converts to his
use or the use of another, or without authority, sells, conveys or
disposes of any record, voucher, money, or thing of value of the
United States or of any department or agency thereof, or any
property made or being made under contract for the United States or
any department or agency thereof; or
Whoever receives, conceals, or retains the same with intent to
convert it to his use or gain, knowing it to have been embezzled,
stolen, purloined or converted -
Shall be fined under this title or imprisoned not more than ten
years, or both; but if the value of such property does not exceed
the sum of $1,000, he shall be fined under this title or imprisoned
not more than one year, or both.
The word "value" means face, par, or market value, or cost price,
either wholesale or retail, whichever is greater.
1996 - Pub. L. 104-294 substituted "$1,000" for "$100" in third
1994 - Pub. L. 103-322, in third par., substituted "fined under
this title" for "fined not more than $10,000" after "Shall be" and
for "fined not more than $1,000" after "he shall be".
SHORT TITLE OF 1984 AMENDMENT
Pub. L. 98-473, title II, chapter XI, part I (Secs. 1110-1115),
Sec. 1110, Oct. 12, 1984, 98 Stat. 2148, provided that: "This Part
[enacting section 667 of this title and amending sections 2316 and
2317 of this title] may be cited as the 'Livestock Fraud Protection
Last modified: April 13, 2006
It is high time for this government of Carter's Second Term/the 44th Presidency of Barack Obama to start obeying the law and stop with their soft tyranny of ignoring the law and legal rulings handed down from our court system.
UPDATE #1: Here is a link to additional soft tyranny tactics of Barack Obama and his administration having to do with the drilling of oil.
Favorite take-away quote from source article - “The government was not at liberty to impose its own will after the court struck down the policy,” Sam Giberga, Hornbeck Offshore Services general counsel, said. “The government, like any citizen, had to obey the ruling, even if it didn’t like it.”
UPDATE #2: This article entitled "Obama Invites Crisis If He Ignores Ruling" from Investors Business Daily.
Favorite take-away quote - "Failure of the Obama administration to stop all activity related to the law that the federal court held to be unconstitutional would create a potential constitutional showdown between the two branches rarely seen in our nation's history. When coupled with the state's refusal to submit to federal regulations implementing a law that has been stripped from the books, our nation is looking at a potentially historic fight not only between branches of government but between the states and the federal government."