Monday, September 21, 2009

Does Honduras Frighten Obama? You Bet Your Sweet Bippy!


An incident with great ramifications is unsurprisingly getting very little in the way of news coverage, and that is the constitutional crisis that is now occurring in Honduras. And when the media does cover the crisis they disparagingly label it as a military coup, immediately bringing up images of Central America's violent and unstable past. But this incident has very little in common with these past coups. Instead of a military leader usurping the power of the president to accumulate more power for himself, in this case all three branches of government, along with the military, acted to depose a president who was actively looking to rewrite Honduras' constitution. Law was upheld, and a criminal grab for more power was averted.

President Manuel Zelaya had attempted to set the stage for the writing of a new constitution in order to prepare for his own future reelection, which was not allowed under the current constitution. Zelaya, who models himself after Venezuelan leader Hugo Chavez, attempted to hold a referendum that would seek to erase this ban on reelection.

Apparently, under Honduras law, a 2/3rds majority is needed in congress in order to amend the constitution, but certain articles are entrenched and unable to be amended. One of those articles that can't under any case be amended is the subject of presidential succession. And it further states that any president who tries to amend the law on term limits must step down from his or her position.

Now this is where the "coup" comes in. President of Congress Roberto Micheletti warned Zelaya that his move to rewrite the constitution was illegal. That's from the legislative branch. Zelaya's own attorney general warned Zelaya that he would face criminal charges if he continued to pursue the referendum. That's from the executive branch. And the Supreme Court put the final nail in the coffin when they declared that the referendum proposed would be unconstitutional. And there you have it from the judicial branch.

If there was any failure of the constitution, it was because it lacked a clear cut way to impeach Zelaya and remove him from power. Impeachment proceedings were started, but lacked any clear direction and went absolutely nowhere.

Here's where the military finally comes in. The armed forces were ordered to storm the presidential mansion, detain President Zelaya, and throw him on a plane to Costa Rica so he could live in exile. Roberto Micheletti became interim president until new elections could be held, at which time he would step down and let democracy resume.

Here's the part that gets me. Just about every nation in the world condemned the "coup" including the United States. The United Nations adopted a resolution calling for Zelaya's reinstatement. Zelaya spent the last few months in Washington trying to get Obama and Hillary Clinton to impose sanctions on Honduras, which they did. What a great thing for Zelaya to do: impose sanctions on his own people. He tried to defy the exile by returning to his country with a few heads of state from foreign nations who support his rule, but was denied access to airspace. And now, finally, after all of that, he has traveled back by land and surprised everybody by showing up in the Brazilian embassy in Tegucigalpa.

My question to everybody, is this. Why has basically every nation condemned the exile of Zelaya? In this case, the constitution of Honduras was upheld. All three branches of government acted to protect the constitution from an unlawful rewriting. If anything, the only thing the constitution lacks is a clear cut way to impeach the president, which could easily be amended by a lawful majority. The military acted, in this case, only as an arm of the congress and an extension of the constitution, to defend the law of the people and protect them from an action that would restrain their liberty. So why has everyone from Obama to Putin, from Chavez to Ahmadinejad, moved to try and have Zelaya reinstated?

Quick answer. Because they are all scared of it happening to them. When a leader abuses a country's constitution he has everything to fear, and each of those above leaders knows what it is like to abuse the law set down by the people. (In the case of Ahmadinejad, he's seen plenty of people take to the streets in protest of his reelection.)

If Micheletti is successful in keeping Zelaya from power, then it only proves to the world that a constitution can work and that not one head of state can escape trying to subvert it. I wish all of America can take Honduras' example to heart. Perhaps one day, we will all be lucky, and Obama will wake up in the night, get thrown on a plane and sent back to Kenya, far far away from the America that he abused. And you know what? We should throw in a certain Bush so Obama can at least have a traveling buddy.

Read the rest of the article HERE.

Honduras Curfew As Zelaya Returns

Mr Zelaya has taken refuge in Brazil's embassy in Tegucigalpa. Many of his supporters later gathered outside.

He said he had crossed mountains and rivers to return to the capital, where he said he was seeking dialogue.

In a televised address, interim leader Roberto Micheletti demanded that Brazil hand over Mr Zelaya to stand trial.

Mr Micheletti said Brazil would be held responsible for any violence.

"A call to the government of Brazil: respect the judicial order against Mr Zelaya and turn him into Honduran authorities," he said....

Paterson To Run For Governor Despite Obama's Protests

Just who does Obama think he is that he can dictate to a governor whether or not he can run for reelection? That is clear violation of his powers as president. A hundred years ago, any governor that was dictated to by a president would have told that president to shove it where the sun doesn't shine and to mind his own business. Despite his failings, I am glad that Paterson refused to give in to White House pressure. Let the voters decide whether he is due another term, not the White House.

Read the article HERE.

New York Governor Paterson Says He's Still Running

NEW YORK (Reuters) – Embattled New York Governor David Paterson said on Sunday he was still running for office, in the face of reports that President Barack Obama had asked him to withdraw from the 2010 race for fear that he cannot regroup from a series of political setbacks....

Thursday, September 17, 2009

Debtor's Revolt

This is an interesting video of a really pissed off woman who has legitimate gripes against the credit card industry, in this case focused on Bank of America. Ann is not alone in this. People with good credit have watched their interest rates skyrocket. I was told that 25% is now the new norm for people around this country who are in the same position as Ann. And it has nothing to do with riskier debtors accruing higher interest rates. The banks are trying to make up money that they lost already from increasing default rates, and to do that they are jacking up everyone else's rates to try and compensate for the lost revenue. But the only thing that they are accomplishing here is to push more and more people into the risk of default, thereby causing this whole thing to snowball. I applaud Ann in this video. All the major corporations have received taxpayer bailouts. In the environment that this government wants to operate - a Bailout Nation - let Ann and others default. It will only put the banks into that much more trouble. But at least they don't have to worry. Obama, Geithner and Bernanke will come riding in on their white horses with bags of taxpayer money and money created out of thin air to make sure that these banks retain some semblance of solvency. And in this environment, it is the only way that Ann and others like her are going to get the government to bail them out.

I had a battle with Citibank the other day. I had ordered something through Paypal, and accidentally had them debit my bank account rather than charge it on my credit card the way I wanted to. My bank account was low on funds. In the past this hasn't been a problem since Citibank would just dip into my $2000 line of credit that I had with them, their Checking Plus account. I would just pay the interest for using their money, and that was that. But when it happened this time, I was charged an overdraft fee of $10 alongside the interest rate for the credit. This was wholly new, so I decided to investigate, and since I was a customer for a long time and this infraction rarely occurred in the past, I thought that they might reverse the charge. Little did I know that I was going into a heated battle. I told them that I was never notified of the change in their terms, and they told me I was. I told them that little tiny words typed on a tiny slip of paper attached to my statement isn't really notifying me of change. They told me it was. I demanded to speak to a supervisor. The supervisor said the same thing. I demanded to speak to CEO Vikram Pandit. He told me that Mr. Pandit was unavailable. I instructed the man that Citigroup was now a ward of the U.S. government, that their speculation in Mortgage-Backed Securities hadn't paid off and that he and others like him deserved to burn in oblivion along with the rest of Citigroup for ineffectively managing their money. Instead it was my money going to bail them out and now they were getting my money again for a new overdraft fee that they never warned me about. I cursed and railed and wouldn't let the man hang up with me. This went on for a half hour. Finally he hung up with me. So I called and did it all again. Well, I didn't get my measly $10 back. But I got a lot of aggression out and felt better. In the end maybe those people I spoke with went home with a nasty twitch in their left eye from the added stress that I gave them. If so, it was a victory for me! Well, I closed my account with Citigroup and vowed not to ever let any of the bailed out banks get one more dime from me again. Instead I opened up an account with my local branch, Northfield Bank. And in the mean time I am in the process of paying off my Chase credit card and when that is done, I wont ever use it again.

Ann by herself can never hurt such international banks. But the result is ultimately satisfying. To draw a line in the sand and vow never to give one more dime to such a crooked institution, nay, a whole sector of finance, is in itself a worth while reward after being dicked around. And hey, maybe in the end Ann and others like her will have the last laugh.

Wednesday, September 16, 2009

Put Pressure On The Senate: S. 604

HR. 1207, the House move to audit the Federal Reserve is likely to pass with the overwhelming support that exists in the lower halls of Congress. But still providing a roadblock is the elitist upper chamber, where the Senate version S. 604, The Federal Reserve Sunshine Act, is likely to be defeated. As of now there are 25 cosponsors to the bill, along with the author, Bernie Sanders, who puts the total at 26.

If your Senator isn't on this list, it means that he or she doesn't care to find out what the Federal Reserve has done with the trillions of YOUR dollars that it dispersed throughout the banking system and around the world. We just want some transparency. Let the truth be known.

Contact your Senator now!



Sponsor: Sen. Bernard Sanders [I-VT]

Cosponsors:

Ron Paul On Morning Joe

Et tu, Japan?

Looks like Japan is joining the likes of Russia and China in finding ways to exclude the U.S. Dollar from certain transactions. And like China, they are learning the art of speaking out of both sides of their mouth. Which I guess is only a slight different method than our own government where we have evolved to speak out of our ass.

Read the article HERE.

Japan Hatoyama: Asian community wont exclude dollar.


Japanese Prime Minister Yukio Hatoyama said on Wednesday his vision for an Asian community didn't mean he wanted to diminish the role of the dollar or exclude the influence of the United States from the region.

Hatoyama's comments may do little to ease market jitters about Japan's new government and its stance on the dollar after remarks from newly appointed Finance Minister Hirohisa Fujii caused the yen to jump to a seven-month high against the greenback....

Bloomberg To Choke On A Pretzel If Prayers Are Answered.


Bloomberg has got to go. Dear Lord, I pray that you make Bloomberg choke on a pretzel. Why do I pray that the salty breaded treat gets lodged in the little midget's esophagus, you may ask? Because super-taxation, scandal-laden, nanny-state enforcer Michael Bloomberg is about to embark on another crusade against smoking, and this one will be enforced in outdoor areas. No smoking in parks. No smoking on beaches. Why? Because of the children. Think of the innocent children! They shouldn't be exposed to such awful and terrible behavior.

It's no wonder why our children are such pussies as they grow up. What happened to mothers and fathers being the final authority about what a child is or is not exposed to? Who ever mandated the power for government to control the stimuli that our children encounter as they grow? It's bullshit. BULLSHIT! It is not a health issue. There is absolutely no evidence that second-hand smoke harms. And if you really want to deter children from smoking, having some brown toothed smoker hacking phlegm all over Union Square would be the first impetus that may stop a child from picking up a cigarette.

Prohibition didn't work for alcohol, and it is not going to work for tobacco products either. This is the danger that Bloomberg poses to civil liberties. Just because his personal preference is not to smoke, it doesn't mean that he gets to foster his beliefs and biases onto the people of New York. It is wrong and unconstitutional, and it obviates the idea of personal responsibility. Bloomberg must go!

Now, who wants to dress up as a Disney character and join me for a smoke outside of City Hall?


Read the article HERE.

New York City officials want to ban smoking in cities parks

NEW YORK -- From Coney Island to Central Park, banning smoking at New York City's famous parks and beaches is the next goal of Mayor Michael Bloomberg's anti-tobacco crusade....

Jim Rogers On Future Currency Crisis












Tuesday, September 15, 2009

Treasury Demand Being Faked?

Leave it to the government to invent a whole new way of tallying demand for our debt when the old way may show that there is no demand. Although unconfirmed, the Treasury may be skewing numbers to show that there is more foreign demand for U.S. debt than is actually there. I guess if the truth came out that our credit-worthiness was in doubt, we could kiss our government's trillion dollar spending programs goodbye. Rates would catapult higher and we wouldn't even be able to afford interest payments. They may be able to skew numbers on one side, but on the opposite side of the world our creditors in the form of China and Russia have made it very clear and explicit that they do not trust the U.S. Dollar to act as the world's reserve currency. Our record levels of debt scares them silly, and rightly so.

Read the article HERE.

U.S. Treasury auction changes may overstate indirect bid

NEW YORK, June 24 (Reuters) - Recent changes to the way the U.S. Treasury tallies demand at its bond auctions may be artificially inflating "indirect bids," a category used by investors as a loose proxy for foreign demand....

Monday, September 14, 2009

Dylan Ratigan Echoes Jefferson


Dylan Ratigan is right about everything that he says in this article. Our government doesn't function anymore, at least at the behest of the American citizen. It functions as an extension of lobbyist power, an arm of Too-Big-To-Fail corporations that feed off the hard-earned money of the common American. Obama has appointed many of the people who are responsible for this mess into prominent positions in his administration. When lobbyists and bankers and corporate execs are placed in control of the country, you better believe that they don't have the best interests for the country as a whole. They are concerned only about their own interests. Remember that when Obama gets up at the podium next time to tell the people that all the opposition that he has received against his health care reform are guided by special interests. He should take a look in the mirror and see who is standing behind HIM. If he is so concerned about special interests working against the government then maybe he should ax Timothy Geithner and Larry Summers, and take a good look at the severe nepotism that Hank Paulson brought to the previous administration.


I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.
-Thomas Jefferson


Read the Dylan Ratigan article HERE.

Americans Have Been Taken Hostage

The American people have been taken hostage to a broken system.

It is a system that remains in place to this day.

A system where bank lobbyists have been spending in record numbers to make sure it stays that way....

To Poke a Sleeping Giant Creditor

This was definitely not the smartest move of the Obama administration. With all the threats - both veiled and unveiled - coming from China that they are seeking to diversify their reserves away from those held in U.S. Dollars, I just don't see what the purpose of these increased tire tariffs are going to serve but to antagonize someone that should not be antagonized. Trade protectionism was one of the prime events that deepened the Great Depression, and if the U.S. is looking to start a trade war with China, then we should not get mad when they decide that they aren't going to supply us with their surplus money to finance our consumer addiction. Obama should tread very carefully here. It's not wise to bite the hand that feeds.

Read the article HERE.

U.S. tire duties fuel trade tension with China

A U.S. decision to impose special duties on Chinese tires could trigger a host of trade complaints against Chinese products and a backlash from Beijing, creating tensions as Western nations seek China's support at a G20 meeting....

Friday, September 11, 2009

Lessons In Cowardice

When we remember September 11th we focus on the unnecessary loss of life. We celebrate the bravery of our Fire Department for doing the unthinkable and running into collapsing megaliths to save lives. Heroism reigned that day in spite of the devastating loss.

But despite the bravery, there is another aspect that we should place our focus on, and it is the resulting cowardice of our elected officials and the people of the United States for giving them a blank check to enact whatever laws they wished in order to "protect" us from future attacks. And in the end it is the people's fault for allowing this to happen. It's is the people's base cowardice. We slobbered all over ourselves and believed that more stringent laws were passed to protect ourselves. Out of September 11th the Patriot Act was passed, warrant-less wire-tapping, the Iraq War, torture, Real ID, suspension of Habeas Corpus. Our cowardice let this happen!

When you remember this day, celebrate the firefighters and mourn the dead. But never forget that so much more was lost and can be lost as a direct action of our own gutless poltroonery. Never give up your liberty!

Most civilization is based on cowardice. It's so easy to civilize based on cowardice. You water down the standards which would lead to bravery. You restrain the will. You regulate the appetites. You fence in the horizons. You make a law for every movement. You deny the existence of chaos. You teach even the children to breathe slowly. You tame.
-The God Emperor of Dune.

Thursday, September 10, 2009

Dead Pumpkin Children- Our Future?

A long time ago, during a time period far far away, the British Pound was the world's reserve currency. Then a nasty war occurred that plunged the world into conflict. It was called such epic names as the Great War and the War To End All Wars. It devastated much of Europe and severely weakened Britain's standing in the world. Britain, in order to finance this war was forced to remove itself off the gold standard so that they could freely print money.

On the other side of the world in a magical land called America, filled with fat little pumpkin children and lollipop trees, President Thomas Woodrow Wilson and Treasury Secretary William Gibbs McAdoo were watching events unfold and saw the perilous cliff that the British Pound had placed itself. With just a little positioning, Wilson and his secretary thought, they could offer up the U.S. Dollar as a competing currency for the world's reserves. So, despite the great difficulty required, McAdoo did everything that was possible to keep the American dollar pegged to gold, to make it look appetizing to every other country out there. When the war ended, Britain attempted to take back their status as reserve currency of the world. They put themselves back on the gold standard but at the pre-war price which didn't account for all the monetary inflation that they had caused. This severely hampered their economy and weakened them even further. Wilson and McAdoo congratulated themselves on a job well-done. They had set the U.S. Dollar on a pedestal over every other currency in the world. And although not quite dominant over the Pound yet, they had set the events in motion that would lead to Bretton Woods and U.S. Dollar hegemony.

Now for the scary part of this fairy tale, for not all remained hunky-dory in the magical land of America. For in this magical land of lollipop trees and pumpkin children, a monster was born called the Federal Reserve, and it was in fact President Wilson's own son, spawned in the Demonic Halls of Compromise. This child would eventually become so powerful that no one could control it. It consumed and consumed, devouring toxic assets and bad debt left and right, using the great U.S. Dollar as toilet paper to wipe off its own excretions and effluent. When it ran out of toilet paper it just printed more and more until all the faulty loans had been consumed. But alas, there was now too many dollars in the world, and the other countries of the world looked upon it with scorn. They saw their own dollar reserves and grew skeptical about owning toilet paper as currency and began to seek an alternative to their wealth. Gold was rediscovered. Wads of excess toilet paper were used to buy new reserves of the shiny precious metal, and this incited a wave of exuberance where no one could be duped into holding the dollar any longer.

The magical land of America watched in horror as the dollars came flooding back home, no longer wanted by the world. The lollipop trees crumbled and all the fat little pumpkin children died, suffocated by the green sea of currency that blanketed the land. An evil night befell the kingdom and all that could be heard in the distance was the sound of the monster's flatulence as it continued it's spree of defecation.

Read the real story HERE.

China Raises the Money-Printing Alarm

At a conference in Lake Como, Italy, a leading Chinese economic spokesman—Cheng Siwei—criticized Ben Bernanke’s loose monetary policy. “If they keep printing money to buy bonds it will lead to inflation,” said Cheng, “and after a year or two the dollar will fall hard.” Cheng went on to say that China was diversifying its roughly $700 billion of U.S. foreign-exchange reserves into gold. “Gold is definitely an alternative, but when we buy, the price goes up,” he said. “We have to do it carefully so as not to stimulate the market.”

Wednesday, September 9, 2009

Poor Leadership Will Get You Nowhere


There is one piece of the anatomy that is necessary for a person to have in order to succeed in the position of Commander-in-Chief, and that is a body part that President Obama is severely lacking. That piece of anatomy is a backbone, and everything that Obama has done and said up to this point shows that he doesn't have the spine to be President of the United States.

Am I being too harsh with my words? Maybe. But I am not trying to be malicious here. Although I oppose most of his policies because of a difference in ideologies, I'm also not comfortable with the highest position in this country being subverted by the human-equivalent of a jellyfish. There I go again. It's not my goal to be mean. I'm just trying to shine some light on one of the President's chief failures. But it's not mean if it's the truth, right?

Let's tackle this from another direction. If I was one of President Obama's advisers I would sit him down for a pep talk, and I would outline how he acted and reacted to certain key events that occurred during these past few months that would have a serious impact on how he guides policy in the future. The decisions that he has made so far will only weaken a weak leader even further.

1) Health care reform.

Mr. Obama, you are a wonderful speaker, and when you talk about the deficiencies of the health insurers and how a government option is going to help uninsured Americans and lower the price for health care, you make me believe it. Your words can seduce and inspire, but only for the few minutes it takes for rationality and the facts to come flying back into my head. And that's the problem with your words, Mr. Obama. They are short on facts. It's not that I believe that you are lying to me and the rest of the American people. It's just that you speak in romantic generalities and that goes to soothe the fears of Americans for a only a short period of time. Since this debate has raged, you have refused to DEFINE your agenda, allowing critics to make both just and unjust claims against your very own ideas. And it's easy to do when you don't have concrete ideas to unveil to the public. The public becomes scared that things can change for the worse and when you go to reassure them, you speak in those romantic generalities again. It's not enough. What's worse, you backtracked on the very heart of your reform, putting the public option on the chopping block when criticism got too tough on you. And then you put it back on the table when you found that little bone in your back that wants to be a spine one day. Or was that just Pelosi's spine borrowed for the occasion as you came under fire from your own party. It seems to me and the rest of the people that not even YOU have a clear idea how you want health care reform to unfold, and that is what is scaring people the most. Stop being a jellyfish and outline in a clear method that everyone can read what you expect from Congress. Then there can't be any UNJUST criticism of your plan if it is all laid out. There can only be JUST criticism and items that you can refute and debate about.

2) Van Jones.

Mr. Obama, your opponents on the other side of the aisle are going to look into every person's record that you have in your employ, and when they find a crack that they can exploit, they are going to try to widen it into a chasm. Take a lesson from our last president. Bush was dumb as a doorknob, but at least he had a spine in the crooked form of Dick Cheney. No one was booted from that administration without a great fight. Huge injustices were routinely ignored in the face of great outrage and media coverage, and still Bush would not bend on many issues. The man sucked as a president but at least he had goals that were never marginalized by Democratic attacks or public outcries. Mr. Obama, you let one minor functionary go in the form of Van Jones, and it's not going to stop there. He was a kook, sure. But now you've given your opponents a victory and they are going to keep the ball rolling when it comes to scrutinizing those who work for you. Bush would have barely commented, and definitely would not have relented so easy. Get ready for the next round of attacks. If you don't, you are going to watch your administration fall apart one by one.

3) Speech to Students.

This was by far the stupidest issue for both Republicans and Democrats. Mr. Obama, you were set to tell students to work hard and do well for themselves, that by excelling they would be doing their country good. But you let attacks by the opposition get to you again. You let Republicans guide your actions, and maneuvered you into changing your speech and releasing it early to stop any criticism. Such a tiny issue in the whole scheme of things, and you let the Republicans tell you what to do. If you can't even exercise control over what you are going to tell school children, then how are you going to solve such problems as health care, the economy, and foreign policy. If you let yourself be browbeat over such trivialities, then there is no way in hell that you are going to control the conversation on much larger and broader issues that will confront the people of this nation.

Mr. President, please stick up for yourself. It has gotten very embarrassing to see. Nine months and you are caving in left and right. You have no clear cut agenda of your own, no original thinking and no hard-set ideas. All you have are those flowery words that make us swoon, but will not serve to make life for American's any easier in the end. If events keep up this way, you will definitely be a one-term president because you will have let the opposition guide your policy into a ditch. When I criticize your actions, I don't want to feel guilty in the end because I didn't pick on someone my own size. I mean, I am just a tiny blogger after all. I shouldn't feel that way when I talk harshly about the most powerful person in the world.

Now stand straight and tall, puff that chest out and stop bending in the wind. I mean, what are you afraid of? It's just Congress, after all.

Friday, September 4, 2009

Happy Birthday, Paul Volcker!


I would like to wish former Federal Reserve Chairman Paul Adolph Volcker a heartfelt happy birthday. He will turn 82 on Sept. 5 and will have lived from one Great Depression to the next. He was the first and the last truly independent Fed chief, being more devoted to his ideas of monetary policy than to the White House.

Appointed to this position in 1979 by President Carter, Volcker immediately got to work fighting the vicious stagflation of the last decade. Switching the economic philosophy of the Federal Reserve from Keynesian to Monetarism required that he begin to focus solely on the money supply. Unfortunately for Carter, this meant that he was going to have to start raising rates to make money tighter and keep the money aggregates stable, which typically isn't a policy that will get a president reelected when the economy starts to sour. Despite limited protests by Carter, Volcker started his tightening and put the president on the unemployment line with millions of other Americans.

Reagan came to power and promised the American people that good times were ahead of us, and that he would usher in that new age of prosperity. He offered the prospect of shrinking deficits coupled with tax cuts to bring his plan to culmination. When Reagan's "shrinking" deficit turned out to be anything but small, the president's faulty budget plan along with his tax cuts created an inflationary fiscal policy that butted heads with Volcker's recessionary monetary policy. Volcker stood the course, despite a massive outcry from Washington and a threat to limit Fed power if he didn't lighten up on interest rates. In fact, he tightened monetary policy even further in the depths of the 81-82 recession to counteract Reagan's inflationary policies, driving rates north of 20%.

The result was an economic downturn, the harshest we had seen since the Great Depression, with large scale unemployment and numerous bankruptcies. Volcker forcefully drove the U.S. into this downturn, defying two presidents and all of Congress, just to stay true to his goal of ending the run-away inflation of the past decade. He truly was the most powerful person in the world.

Now I don't want to romanticize Paul Volcker, here. No unelected official should have that much power: the power to end presidencies and send Congress into a panic, to turn economies rightside-up and upside-down. But the Federal Reserve was started in 1913 to be independent of the White House, and although it maintained that it was in fact independent, in reality it has always been an extension of the executive branch which will ALWAYS fight for easy money and inflation. Credit must be given to Paul Volcker for being the first and last chairman to actually DO HIS JOB in the near century that the Fed has been in existence, the first and last chairman to actually regulate the currency without being influenced by politics in Washington.

That said, Mr. Volcker, I wish you a happy birthday, and I also express the hope that the power you once wielded will be diminished and eventually destroyed, starting with H.R. 1207 and the move to audit the Fed.

Car For Idiots

Now, I don't know much about cars. I'll gladly admit my ignorance here. But as someone who is recently in the market for a car (my Mercury Sable has broken down for the 133rd time), I dont think I'll be waiting for the Chevy Volt to come out before I go shopping. Why? Well I don't know many people who would be willing to pay the whopping $40,000 for the car when it comes out, nor do I know many people who may be able to afford it. Sure the government may subsidize it or give the buyers some tax credits, but really, is this the best that GM has to offer? Is this the future of the company that will save it from government control? In the end it will just be a novelty car or a status symbol.

"Look how much I care for the environment, honey. I just put us in debt for the rest of our lives."

"That's alright, schnookums. It's not like we can afford the ARM on our house either, but we did it anyway."

I'm all about finding ways around oil. I think it is very important to ween ourselves off of Mideast oil and just let the region sink into conflict and destroy itself without any American participation. But are electric cars really the way to go? As a renter, I wouldn't know where to plug the darned thing in at night. That sure is going to be a long extension cord leading to my bathroom outlet. And somehow I doubt that our aging grid will be able to handle an influx of electric cars on the street when it can't even handle my air-conditioner.

I think at some point, electric cars could be a swell option. Once we can make one that is cheap enough for average joes to buy. But in the mean time why can't we look into natural gas and liquid coal technology? Those are two resources that the U.S. has an abundance of and would be a nice stepping stone before we made the unbelievable jump to mowing our lawns and putting it in the fuel tank.

So GM, I would like to echo the Audi CEO's sentiments (even though he later retracted it). I'm not going to buy your "Car For Idiots." I'm going to look into a nice little Honda Fit instead, avoid the exorbitant premium and buy a car that is actually fuel efficient. Good luck, GM. You're gonna need it.

Read the article HERE.

Audi President Elaborates on Criticism of Volt

“No one is going to pay a $15,000 premium for a car that competes with a Corolla. So there are not enough idiots who will buy it.”

Those were the words of Johan de Nysschen, president of Audi of America, who recently spoke (quite candidly) to Lawrence Ulrich in MSN Autos about the Chevrolet Volt...

Thursday, September 3, 2009

How To Lose Your Sovereignty


As people may have heard, Iceland is bearing the brunt of the global depression. Unfortunately for the Icelandic people, a population of only 320,000, their banking sector which was nine times the value of their GDP, had fallen into the same easy credit policies as the rest of the western world. When the threat of insolvency loomed, the central bank couldn't bail them out because of how small their bank is compared to the mountain of bad debt acquired by the big three Icelandic financial institutions. To make a long story short, after a serious devaluation of their currency, a plunge in the stock market, and the acquiring of a series of loans from the IMF, Russia, Norway, Sweden, and even the Faroe Islands (that has to be emasculating), we arrive at the point where Iceland is willing to join the European Union and adopt the euro as their currency. Many fear that this is the beginning of their loss of sovereignty, and rightly so. It's the easy way out. Rather than taking their licks for their own financial excesses, they are willing to sell their independence for a quick end to their problems.


Iceland pressed to join euro

By Andrew Ward in Stuttgart

Published: September 3 2009 02:00 | Last updated: September 3 2009 02:00

Joining the euro offers the only “durable solution” to Iceland’s economic problems but the country’s bid to enter the European Union would be a complicated process, according to the Organisation for Economic Co-operation and Development...

Read the article HERE.

Outhouse

Wednesday, September 2, 2009

Count Me In The Failure Caucus

Here's an article from Slate that lists a bunch of people from economists to politicians who believe the market is going to take another tumble and dubs them the Failure Caucus. Well count me in. There is no way that this economy is fixed despite what the Federal Reserve, the Treasury and the CNBC pundits say. If banks are still in jeopardy and housing has yet to bottom then a recovery CAN NOT happen.

Failure Caucus

Who's rooting for the economy to tank again? These guys.

Most Americans have a lot riding on the success of the government's efforts to pull the U.S. economy out of its ditch: individual investors, bankers, Federal Reserve Chairman Ben Bernanke, Democratic politicians, and taxpayers. A somewhat smaller group has a lot riding on the failure of these efforts....

Read the article HERE.

FDIC in Trouble

Just add another government agency that just doesn't have the ability to do its job. I know most people in America breathed a sigh of relief when they upped the bank deposit insurance up to $250,000 from $100,000, (I wish I had that much to insure lol) but now that's going to have to be covered by the tax payer. The numbers are amazing. $4.5 trillion in bank deposits to insure and the FDIC only has $10.4 billion in its piggy bank. The 416 troubled banks are worth $300 billion in deposits and the FDIC can't even cover that.

Be careful where you keep your money. Just because it is insured by the government doesn't mean that you will get it back, at least in a timely fashion.

The Coming Deposit Insurance Bailout
Another lesson that federal guarantees aren't free.

Americans are about to re-learn that bank deposit insurance isn't free, even as Washington is doing its best to delay the coming bailout. The banking system and the federal fisc would both be better off in the long run if the political class owned up to the reality....

Read the article HERE.