Posts Tagged ‘Constitution’
The unmitigated gall of this man is mind-blowing. His administration’s gun-running scheme armed Mexican drug cartels and resulted in the deaths of at least 2 border agents and 300 Mexican citizens. And he has the nerve to blame US??
President Barack Obama, speaking in Mexico City on Friday, said the United States is responsible for much of the crime and violence in Mexico because of the demand for drugs and the illegal smuggling of guns across the southern border.
He told the crowd, “We understand that the root cause of violence that’s been happening here in Mexico for which so many Mexicans have suffered is the demand for illegal drugs in the United States.” He later added, “We also recognize that most of the guns used to commit violence here in Mexico come from the United States.”
Obama acknowledged the illegal smuggling of guns into Mexico by American criminals, but did not mention the Justice Department’s Operation Fast and Furious that allowed the flow of about 2,000 U.S. guns to Mexican drug trafficking organizations. Fast and Furious began in the fall of 2009 and was halted in December 2010 after two of the weapons from the DOJ gun walking program were found at the murder scene of Border Patrol agent Brian Terry.
Obama didn’t just offer a few throwaway lines at the issue, taking playful jabs at his Republican opponents. He actually seemed to be blaming Americans for the corrupt and violent Mexican drug culture.
He said, “Much of the root cause of violence that’s been happening here in Mexico, for which so many Mexicans have suffered, is the demand for illegal drugs in the United States.”
Can you believe that? Who thinks that way, much less a United States president? Whose team is he on? Whom is he fighting for? Wouldn’t you think that if the captain of our team were going to complain about problems between our two countries, he would direct his criticisms at those committing the crimes in their own country and those who also come to our country in droves illegally, even if the numbers have decreased recently because of Obama’s economy?
But no, it’s our fault. It’s always our fault, even when he’s the president. What an impotent guy he must be not to be able to have a more positive effect on us evil Americans.
But he didn’t stop there. Why should he have? He had a perfect platform to kill a couple of eagles with the same stone. He next took aim at America’s evil gun manufacturers.
He said: “Most of the guns used to commit violence here in Mexico come from the United States. I think many of you know that in America, our Constitution guarantees our individual right to bear arms. And as president, I swore an oath to uphold that right, and I always will. But at the same time, as I’ve said in the United States, I will continue to do everything in my power to pass common-sense reforms that keep guns out of the hands of criminals and dangerous people. That can save lives here in Mexico and back home in the United States. It’s the right thing to do.”
It is disgraceful enough that this American president would gratuitously paint America in a negative light before foreign people and their leaders (absent some egregious, deliberate action by the United States). But it is especially reprehensible that he attacked Americans and American gun manufacturers for the purpose of advancing his political and policy agenda in the United States.
If he wanted to apologize to Mexico, perhaps he should have started with Fast and Furious and the illegal guns his administration walked into Mexico without its permission or knowledge, which resulted in the death of some 200 Mexicans. But his apology ought to be on behalf of his administration, including himself and his attorney general, not America generally.
Translation: Don’t think. Don’t Question. Just go along with whatever the ruling class tells you to do.
A year to the day after kicking off his re-election campaign at Ohio State University, President Barack Obama returned to the college campus and told graduates that only through vigorous participation in their “democracy” can they right an ill-functioning government and break through relentless cynicism about the nation’s future.
Obama also urged the students to “reject these voices” that warn of the evils of government, saying:
Still, you’ll hear voices that incessantly warn of government as nothing more than some separate, sinister entity that’s the root of all our problems, even as they do their best to gum up the works; or that tyranny always lurks just around the corner. You should reject these voices. Because what they suggest is that our brave, creative, unique experiment in self-rule is just a sham with which we can’t be trusted.
We have never been a people who place all our faith in government to solve our problems, nor do we want it to. But we don’t think the government is the source of all our problems, either. Because we understand that this democracy is ours. As citizens, we understand that America is not about what can be done for us. It’s about what can be done by us, together, through the hard and frustrating but absolutely necessary work of self-government.
The cynics may be the loudest voices—but they accomplish the least. It’s the silent disruptors—those who do the long, hard, committed work of change—that gradually push this country in the right direction, and make the most lasting difference. [Emphasis added]
Doug Powers makes a powerful observation:
Interesting. Obama said that those who warn others to be on the lookout for government tyranny run counter to the reason this “brave, and creative, and unique experiment in self-rule” called the United States of America was formed, when in fact a stand against government tyranny is precisely why this country came into existence. Can somebody please flick the paradox switch on the teleprompter to the “off” position?
Thomas Paine wrote about the “government and society should be a single entity” approach in Common Sense, and concluded the two should never be indistinguishable:
“Some writers have so confounded society with government, as to leave little or no distinction between them; whereas they are not only different, but have different origins. Society is produced by our wants, and government by wickedness; the former promotes our happiness positively by uniting our affections, the latter negatively by restraining our vices. The one encourages intercourse, the other creates distinctions. The first is a patron, the last a punisher. Society in every state is a blessing, but government even in its best state is but a necessary evil; in its worst state an intolerable one;”
1. We need no further proof to justify a chorus of horse-laughter over his claim to being a Constitutional scholar. Because a Constitutional scholar would have read a book or two. Specifically, say, the Federalist Papers and the Anti-Federalist Papers. He would’ve seen that the nation was extremely concerned about tyranny in America in the run-up to the ratification of the federal Constitution. Indeed, those on the Anti-Federalist side seem more like prophets with each passing day, as they were convinced that the new Constitution would not, in fact, keep tyranny from happening here. Warning about government tyranny is practically the sine qua non of the American experiment.
President Reagan spoke as an American in this honorable tradition when he quipped that the scariest words in our language were, “We’re from the government and we’re here to help.” Mr. Obama speaks those words in earnest, like he really means them, and wonders why anyone would be nervous about it.
2. I really have no idea who he’s talking about, these mysterious voices warning of tyranny lurking around the corner. Everyone I know who is paying any attention is aware that tyranny is here right now, out in the open! I wish we lived in a time when tyrants were still afraid to show themselves!
I especially like Trifecta’s take on this:
View on YouTube
Earlier today, 7 anti-gun bills were defeated in the senate (2 more remain to be voted on Thursday).
Never one to take defeat graciously, Obama threw a full-blown tantrum in the bully pulpit, using Gabby Giffords and the Newtown families as political props as he declared the Senate vote “shameful” and slammed 2nd Amendment advocates as “liars.”
With the failure of the Democrats’ attempt to exploit the Newtown school shooting to press forward gun control measures, President Obama took to the microphones along with the relatives of Sandy Hook victims to demonize his opposition. This, of course, was his strategy all along: knowing that he did not have 60 votes in the Democrat-controlled Senate to pass his gun control legislation, he pressed forward anyway, hoping to paint Republicans as intransigent, immoral tools of the gun lobby who don’t care about dead children. After demonizing Republicans, Obama hopes, he can press Americans into voting Democrats back into power in the House of Representatives.
On Wednesday afternoon, Obama played his part to perfection. Mark Barden, father of a first-grader murdered in Newtown, introduced him. Flanking Obama were other Newtown victims; Vice President Joe Biden, face creased in supposed emotional agony, his arm around the mother of a Sandy Hook victim; and former Congresswoman Gabby Giffords, who has been one of the lead advocate for gun control on behalf of the administration.
“On behalf of the Sandy Hook parents, I would like to thank President Obama and Vice President Joe Biden,” said Mark Barden, father of a first-grader murdered in Newtown. “We will not be defeated. We are not defeated and we will not be defeated ….. I’d like to end by repeating the words by which the Sandy Hook promise begins: Our hearts are broken. Our spirit is not.”
He then introduced President Obama, who blasted away in a carefully calculated and calibrated assault on gunowners, Republicans, and all those with the temerity to disagree on his gun control proposals. Lashing out with more emotion than he has on any issue of his presidency, Obama played up to the cameras, all the while using gun violence victims as a backdrop.
Obama said that he had acted in response to the shooting of Congresswoman Gabby Giffords and Sandy Hook. “Families that had known unspeakable grief,” Obama said, reached out “to protect the lives of all children …. A few minutes ago, a minority in the Senate decided it wasn’t worth it.” Standing on the graves of the children of Sandy Hook has become rote for this president.
[...] All of this was setup for the coup de grace: a request for more power. Because, after all, Obama was never going to win this debate. He didn’t have the votes, he didn’t have the evidence, and he didn’t have a decent piece of legislation to propose. What he did have was unbridled faux moral indignation and a compliant press.
But he needs more. He needs a majority in the House. And he asked for it. “So all in all, this was a pretty shameful day for Washington. But this effort is not over,” said Obama. “If this Congress refuses to listen … the real impact is going to have to come from the voters.”
“The memories of these children demand [gun control],” Obama concluded.
What he meant was obvious: the memories of dead children in Sandy Hook demands that voters give Obama more Senators and more Congresspeople. How convenient for him.
Neither Obama nor the media are interested in hearing from family members of gun violence victims who opposed his gun control scheme, such as this father from Newtown, and the father of 9-year-old Christina Green, who was shot and killed in the Tuscon attack.
They’re only interested in exploiting those grieving families they can use to forward their own political agenda.
Funny how Marxists don’t recognize your unalienable right to keep the fruits of your labor (especially if you happen to be more successful than they think you should be), but they claim that they have a “right” to demand free goodies at the expense of others.
Speaking outside on a sunny day, Harris-Perry says in an ad that aired Wednesday morning:
Americans will always want some level of inequality, because it’s a representation of meritocracy. People who work hard and sacrifice and save their money and make major contributions — we think that they should earn a little more. They should have more resources, and that’s fine. But we also, however, have to have a floor under which nobody falls. And if you’re below that — especially if you’re a child and you’re below that — we are not going to accept that. You do have the the right to health care, and to education, and to decent housing and to quality food at all times. [Emphasis added]
When something is a “right” (your life or conscience, for instance), it means you don’t have to do anything to earn it. You get to have it just for existing. It’s a gift from your Creator.
When you describe goods and services like food and housing as “rights,” you are saying that the people who produce these goods and services are obligated to provide them for you, whether you pay for them or not. There’s a word for this: slavery. Only slaves are forced to produce for others without compensation. TRUE rights come from God, and are unalienable. They cannot be provided by others, who could just as easily take them away.
You have an unalienable right to work and trade for goods and services. You do NOT have a “right” to demand them free of charge from others.
Melissa Harris-Perry: All Your Kids Belong to Us (Not the Parents)
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I’ve seen the village, and I don’t want it raising my kids!
In a scripted MSNBC promo, Melissa Harris-Perry made the following statement:
“We have never invested as much in public education as we should have because we’ve always had a private notion of children, your kid is yours and totally your responsibility. We haven’t had a very collective notion of these are our children. So part of it is we have to break through our kind of private idea that kids belong to their parents or kids belong to their families and recognize that kids belong to whole communities.”
Got that? You kid doesn’t belong to you. He/she belongs to the “collective” – meaning, the state.
Ironically, this is the same woman who calls unborn babies “things that turn into humans.”
How do I put this politely? Stay the **** way from my kids!
So kids belong to whole communities? Didn’t we fight a war back in the 1800s to prove that people weren’t owned by the state or anyone else, but were, in fact, people? Seriously?
But take that out of it. This is amazingly stupid commentary. All of us who own property (real property, not children) pay property taxes to fund a public education system to educate our children. We have democratically elected school boards to make the decisions on how tocollectively educate our kids to common, state approved standards.
It is failing spectacularly. And I suspect that the tangible efforts to improve it, from neutering teachers unions to giving parents choices in where to send their children, are opposed by Melissa Harris-Perry.
I never thought I’d see the day when self-styled progressives advocated the state owning the people.
Ken Shepherd at Newsbusters correctly points out that this is actually Maoist philosophy she’s spewing:
[T]he notion of collective responsibility for children was a philosophy that undergirded the Cultural Revolution in Communist China under Chairman Mao. I bring that up because, as you may recall, another Harris-Perry “Lean Forward” spot contains a reference to a “great leap forward,” which calls to mind the disastrous agricultural reform plan which starved millions of Chinese to death in the 1950s.
The Five on Fox made some great points about this collectivist mentality while discussing this around the table:
View on YouTube
Sarah Palin tweeted a few ingenious responses to this:
Love it! After having spent 22 hours of my life in labor, I heartily agree!
After the justifiable outrage and backlash, Harris-Perry is trying to walk back her statements and blame the views for misunderstanding her. Nice try. This is typical for the Left. They float a trial balloon and then pretend it was all an innocent misunderstanding when they get called for dropping their mask. The mask goes back up, but the ugliness behind it doesn’t go away. They work by desensitizing people over time, so that what sounds outrageous now will actually start to sound reasonable a few years from now. I don’t buy her “backpedaling” for a second.
Sign the petition to adopt the only Constitutional Amendment that will protect children from this kind of power grab – the Parental Rights Amendment!
The foundation for the housing crisis was laid with the Community Reinvestment Act in 1977, where the government took it upon itself to encourage home ownership by pressuring banks to lend to lower-income buyers, often to meet arbitrary racial quotas. Obviously they haven’t learned a thing from where that got us.
Would it surprise anyone to learn that as a lawyer, Obama sued banks to force them to issue subprime loans? He also worked for ACORN, which specialized in using the Community Reinvestment Act to shake down banks and pressure them to loan money to low-income minorities or face “discrimination” charges.
According to the Washington Post, the Obama administration is pushing big banks to make more home loans available to Americans with bad credit – the same kind of government guidance that helped blow up the housing market:
In response, administration officials say they are working to get banks to lend to a wider range of borrowers by taking advantage of taxpayer-backed programs — including those offered by the Federal Housing Administration — that insure home loans against default.
Housing officials are urging the Justice Department to provide assurances to banks, which have become increasingly cautious, that they will not face legal or financial recriminations if they make loans to riskier borrowers who meet government standards but later default.
Think about this statement. The administration is asking banks – banks that Washington bails out; banks that Washington crafts regulations for — to embrace risky policies that put the institution and its investors (not to mention, all of us) in a precarious position. So precarious, in fact, that banks have to ask government if they can be freed of any legal or financial consequences.
What could possibly go wrong?
These types of government policies initially emerged the mid-1970s, when “progressive” Democrats in Congress began a campaign to help low-income minorities become homeowners. This led to the passage, in 1977, of theCommunity Reinvestment Act (CRA), a mandate for banks to make special efforts to seek out and lend to borrowers of meager means. Founded on the premise that government intervention is necessary to counteract the fundamentally racist and inequitable nature of American society and the free market, the CRA was eventually transformed from an outreach effort into a strict quota system by the Clinton administration. Under the new arrangement, if a bank failed to meet its quota for loans to low-income minorities, it ran the risk of getting a low CRA rating from the FDIC. This, in turn, could derail the bank’s efforts to expand, relocate, merge, etc. From a practical standpoint, then, banks had no recourse but to drastically lower their standards on down-payments and underwriting, and to approve many loans even to borrowers with weak credit credentials. As Hoover Institution Fellow Thomas Sowell explains, this led to “skyrocketing rates of mortgage delinquencies and defaults,” and the rest is history.
The CRA was by no means the only mechanism designed by government to impose lending quotas on financial institutions. For instance, the Department of Housing and Urban Development (HUD) developed rules encouraging lenders to dramatically hike their loan-approval rates for minority applicants and began bringing legal actions against mortgage bankers who failed to do so, regardless of the reason. This, too, caused lenders to lower their down-payment and income requirements.
Moreover, HUD pressured the government-sponsored enterprises Fannie Mae and Freddie Mac, the two largest sources of housing finance in the United States, to earmark a steeply rising number of their own loans for low-income borrowers. Many of these were subprime mortgages—loans characterized by higher interest rates and less favorable terms in order to compensate lenders for the high credit risk they were incurring.
Additional pressure toward this end was applied by community organizations like the pro-socialist ACORN. By accusing banks—however frivolously or unjustly—of having engaged in racially discriminatory lending practices that violated the mandates of the CRA, these groups commonly sued banks toprevent them from expanding or merging as they wished. Barack Obama, ACORN’s staunch ally, was strongly in favor of this practice. Indeed, in a 1994 class-action lawsuit against Citibank, Obama represented ACORN in demanding more favorable terms for subprime homebuyer mortgages. After four years of being dragged through the mud, a beleaguered Citibank—anxious to put an end to the incessant smears (charging racism) that Obama and his fellow litigators were hurling in its direction (to say nothing of its mounting legal bills)—agreed to settle the case.
Forbes magazine puts it bluntly: “Obama has been a staunch supporter of the CRA throughout his public life.” In other words, he has long advocated the very policies that already have reduced the real-estate market to rubble. And now he is actively pushing those very same practices again.
Obama’s ‘Organizing For Action’ Campaign Siphons Donations Away From Democrat Party Leading Up To 2014 Election
As the Democrats prepare to try to take back the House in 2014, they are beginning to realize that Obama’s permanent campaign arm, “Organizing For Action,” isn’t necessarily in their camp. They are competing with the Democrat party for fundraising dollars, and using the money to prop up the Cult of Obama, not the Democrat party.
Anyone who has been paying attention to the Obamessiah’s narcissistic behavior for the past four years could have seen this coming a mile away. Sadly, it appears the suckers at the DNC are only just realizing that their idol’s just not that into them.
President Barack Obama’s decision to launch his own political organization has some Democrats wondering: Is he just in it for himself?
Obama’s new group, Organizing for Action, will focus on his policy agenda – not on electing Democratic candidates – by raising unlimited amounts of cash and accessing the president’s secret list of 20 million supporters, volunteers and donors.
The operation won’t share money, resources or the priceless Obama email list with the Democratic National Committee or campaign committees that help elect members of Congress, governors and legislators. And it has no plans to coordinate efforts, leading some Democrats to worry that it will take money and manpower away from the party as it heads into the 2014 elections for control of Congress.
“There’s only so much money to go around in Democratic circles. There’s a limited pool of resources,” said Gilda Cobb Hunter, a South Carolina legislator and a member of the Democratic National Committee. “Why can’t we strengthen one entity?”
[...] Days before his second term began, Obama announced that his campaign would morph into a nonprofit, tax-exempt group to rally support across the country for his agenda. “Organizing for Action will be an unparalleled force in American politics,” he told supporters.
Other presidents have created or championed organizations outside the major national parties. Bill Clinton, for example, embraced the Democratic Leadership Council, an organization that pushed a moderate agenda.
But that functioned more as a think tank. And Obama is the first to form a group that will raise millions of dollars as it seeks to perpetuate a year-round campaign for him.
The decision to create Organizing for Action separate from the DNC, where a similar group was housed after the 2008 election, has prompted some Democrats to accuse Obama of focusing more on his legacy and less on his party.
What does Obama have to gain from withholding the e-mail list, siphoning away donations, and otherwise threatening to weaken the DNC’s 2014 campaign efforts? Is he trying to force them to come crawling to him to stay in power?
The Senate voted earlier to block the U.S. from joining the treaty, but Obama is likely to sign it anyway.
He’s already heading out onto the never-ending campaign trail to stump for more gun control. He wants to stir up public pressure to force the Senate to ratify it. If they do, you can kiss your 2nd Amendment rights good-bye.
This morning, by a vote of 154 nations in favor (including the United States), 23 abstentions, and three against (Syria, North Korea, and Iran), the U.N. General Assembly adopted the Arms Trade Treaty (ATT). The treaty will be open for national signature on June 3, 2013, and will enter into force for its signatories when it has been signed and ratified by 50 nations.
Though the vote in favor of the treaty seems overwhelming, a closer look shows something different. Among the major exporting and importing nations, China, Egypt, India, Indonesia, and Russia abstained. So did most of the Arab Group, as well as a range of anti-American regimes, including Bolivia, Cuba, and Nicaragua, and a smattering of others, including Belarus, Burma, and Sri Lanka.
A further 13 nations did not vote, including some known opponents of the treaty, such as Venezuela and Zimbabwe. Finally, while Pakistan voted in favor of the treaty, its statement in explanation implied that it was voting for the treaty because it anticipated that India would abstain, and it wanted to look good by comparison.
Thus, what the U.N. vote amounts to is the tacit rejection of the treaty by most of the world’s most irresponsible arms exporters and anti-American dictatorships, who collectively amount to half of the world’s population.
Ken Klukowski warns, “What Americans Need To Know About The UN Gun Control Treaty“:
Today the General Assembly of the United Nations adopted a global gun control treaty called the Arms Trade Treaty. Now the fight begins here at home. There are several things gun owners need to know to protect their constitutional rights.
Now that it’s been proposed, the treaty goes to all the member states to decide on whether to join. Per the U.S. Constitution, in America it must first be signed by the president (which it will), then be ratified by two-thirds of the U.S. Senate (which it won’t). The United States is not likely to join the treaty as a nation, though President Barack Obama will likely push for it.
The General Assembly can’t do anything at the United Nations except propose (not establish) treaties and admit new U.N. members. Most of the power at the U.N. is in the Security Council, which consists of five permanent members (including the U.S.) and ten rotating seats among all the other U.N. members. So the General Assembly did one of the only things it can by recommending this treaty to its member states.
However, the first danger is that U.S. courts have held we’re bound by “customary international law,” sometimes called the “law of nations.” If enough U.N. member states were to adopt this treaty, a liberal federal court could rule it has become customary international law. The current Supreme Court would never affirm such a ruling, but there is a real danger if Obama changes the balance of the Court over the next three years.
Because federal statutes and treaties are of equal force under the U.S. Constitution, whenever they are in direct conflict, the most-recently passed of the two prevails. So, if somehow this treaty were ratified by the Senate, if Congress were to later pass a statute taking the opposite position, it would trump the treaty.
Of course, you need a president’s signature to pass a statute or two-thirds of Congress to override a presidential veto, so we would need a president in 2016 who supports the Second Amendment to pass such a law.
[...] The dangers are obvious, however. If Barack Obama manages to get an anti-gun politician like Hillary Clinton or Andrew Cuomo to follow him in 2016 as president, and changes the balance of the Supreme Court over time, then the Arms Trade Treaty could open America up to a worldwide U.N. gun control regime. That could lay the groundwork and set up a system that a decade or two from now could restrict lawful firearm ownership in this nation.
If the goal is to save lives, liability insurance isn’t going to do it. But of course, this isn’t really about saving lives. It’s about control. It’s about putting up as many hurdles as they can think of between the average, law-abiding American and their right to self-defense.
A contingent of liberal Democrats in Congress is proposing a new federal gun control idea: mandatory liability insurance for gun owners.
When New York Rep. Carolyn Maloney introduced the legislation last month with eight other Democrats, she boasted that it is “the first bill to require liability insurance of gun buyers nationwide.”
Maloney’s “Firearm Risk Protection Act” requires gun buyers to have “a qualified liability insurance policy” before they are able to legally purchase a firearm.
It also calls for the federal government to impose a fine as much as $10,000 if a gun owner doesn’t have insurance on a firearm purchased after the bill goes into effect.
Want to guess who this would hurt most? You got it: poor people living in dangerous neighborhoods, who would be barred from defending themselves due to the high cost of insurance.
The smart ones will go to the black market and arm themselves anyway.
In Cyprus, politicians are trying to bail themselves out by stealing directly from people’s bank accounts. In America, the government is more subtle.
It’s been stealing from us for years – through inflation. Thomas Sowell explains:
One of the big differences between the United States and Cyprus is that the U.S. government can simply print more money to get out of a financial crisis. But Cyprus cannot print more euros, which are controlled by international institutions.
Does that mean that Americans’ money is safe in banks? Yes and no.
The U.S. government is very unlikely to just seize money wholesale from people’s bank accounts, as is being done in Cyprus.
But does that mean that your life savings are safe?
No. There are more sophisticated ways for governments to take what you have put aside for yourself and use it for whatever the politicians feel like using it for.
If they do it slowly but steadily, they can take a big chunk of what you have sacrificed for years to save, before you are even aware, much less alarmed.
That is in fact already happening.
When officials of the Federal Reserve System speak in vague and lofty terms about “quantitative easing,” what they are talking about is creating more money out of thin air, as the Federal Reserve is authorized to do — and has been doing in recent years, to the tune of tens of billions of dollars a month.
When the federal government spends far beyond the tax revenues it has, it gets the extra money by selling bonds. The Federal Reserve has become the biggest buyer of these bonds, since it costs them nothing to create more money.
This new money buys just as much as the money you sacrificed to save for years. But more money in circulation, without a corresponding increase in output, means rising prices.
Although the numbers in your bank book may remain the same, part of the purchasing power of your money is transferred to the government. Is that really different from what Cyprus has done?
Through the centuries – in historic cultures like that of Yap Island who used giant, immovable stone disks for commerce, to today’s United States, whose Dollar fiat currency exists primarily in digital form – “money” is able to be exchanged for goods and services because society agrees to accept it (at a certain rate of exchange).
But what happens when a society starts doubting the value of its money?
Fed, the Great & Powerful
The podcast goes into the mind-blowingly simple process by which new money is created in America by the Federal Reserve (or the “Fed”). That is to say:
- The Fed holds a meeting
- Those in the room decide how many more dollars they think the world needs
- Someone walks over to a computer and adds that many dollars to the banks, with a few clicks of the keyboard
The banks then, if they want to, lend this new money out into the economy on a fractional basis, adding even more “thin air” dollars to the nation’s money supply.
This unique ability in America lends the Fed enormous power. The power to create new money from nothing. With no limit.
And with that power, the Fed can control and/or influence economies and markets the world over.
Should such power exist? And if so, should a single private entity owned by the major players in the banking system be allowed to wield it?
Such power certainly has its dangers.
[...] Money is not wealth. It is merely a claim on wealth.
You can’t print your way to prosperity. History is abundantly clear on that.
With the clarity of hindsight, it’s now obvious how the Fed has now painted itself into a corner.
[...] Cyprus has awakened the world to the reality that central planners can appropriate their money with the bang of a gavel. And while we don’t yet know with certainty how things will unfold in Cyprus, we can project that events there have shaken society’s confidence in the soundness of fiat currency in general. If we know it can be confiscated or devalued overnight, we are less likely to unquestioningly accept its stated value. This doubt that strikes at the very foundation of modern monetary systems.
Cyprus is meaningful in the way that it shines a light on both the importance of hard assets and the risk it poses to market stability. It certainly increases the risk of our prediction of a 40%+ stock-market correction by September, as investors begin to realize that current high values are simply the ephemeral effect of too much money, instead of a sign of true value.
At this point, prudence suggests we prepare for the worst (by parking capital on the sidelines, investing in our personal resilience, etc.) and add to our hard asset holdings (like precious metals bullion, productive real estate, etc.) as insurance to protect our purchasing power. The dollar may strengthen for a bit versus other currencies and perhaps the financial markets, but the long-term trend is a safer and surer bet: Dollars will be inflated. There will be more of them in the future than there are today. So, while our dollars still have the purchasing power they do, we should use the window of time we have now to exchange paper money for tangible wealth at today’s prices.
Cyprus is only the first domino.
Cypriot President Nicos Anastasiades has struck a deal with the European Union and International Monetary Fund that will seize up to 40% of uninsured funds from wealthier depositors with over 100,000 euros and will not siphon funds from those below that amount.
The 10 billion euros ($13 billion) bailout plan calls for the Cyprus Popular Bank to be dissolved and all its viable assets transferred to the country’s biggest bank, Bank of Cyprus.
Presently, Cypriot banks have imposed a 100 euros ATM withdraw limit, and Cyprus border officials at air and sea ports have been ordered to confiscate the funds of any traveler attempting to leave with over 10,000 euros.
How dare they try to keep the money they worked so hard for and saved AFTER taxes were already paid on it? Don’t they know that private property is an illusion under Socialism? That the government is free to spend as irresponsibly as it wants, and can steal your money at will to pay the tab? That’s what they’ve been voting for all this time, right? Or didn’t they realize it?
Understandably, Cypriots are desperately trying to get their money out, but it’s too late:
The president of Cyprus assured his people a bailout deal he struck with the European Union was in their best interests, but banks will remain closed until Thursday – and even then subject to capital controls to prevent a run on deposits.
The ruling class insists that stealing money out of their bank accounts is “in their best interests.” Doesn’t that make them feel better? They’ll be patriotic and happy to “share the sacrifice” for the greater good, right? Of course not!
Tyler Durden reports that there is a “Cash Exodus From Cyprus Surges Despite Bank Closures, Capital Controls“:
From FAZ, google translation edited:
Despite the closed banks and a lock for payments in the past week, more money flowed out of Cyprus than in previous weeks, Frankfurter experts report for payments. Prior to the escalation of the crisis in Cyprus accruing on the payment system Target liabilities of Cypriot central bank to the European Central Bank (ECB) had increased daily at approximately 100 to 200 million euros. In recent days was after Parliament the stabilization program initially had to fail, the daily has risen to more than double. Just in the last week so could cash assets have been withdrawn from Cyprus in the billions, although the Cypriot central bank has actually issued a lock.
How is it possible that cash is leaving the country even with a bank halt? It isn’t, unless of course, the banks aren’t really halted, and some outbound wire transfers, which are permitted, are more equal than other wire transfers which are stuck on the island. Of course, that would imply an “Europe Farm” type of arrangement, which in the bastion of fairness, equality and honesty which is Europe, would be absolutely impossible.
On the other hand, if indeed the drain of the Cypriot banking system has continued despite all the enacted halts during the past week, then it’s game over for Cyprus, which will soon have only the ECB to thank for providing liquidity, an arrangement that may not be the best long-term outcome for a nation whose economy has basically been gutted in the span of one week.
It also means game over for the bailout as envisioned, as the EUR17 billion is history, and much more cash will have to be injected to cover for the stealth outflows.
Cyprus won’t be the only one affected, of course. An unusually honest Eurozone official has made it clear that the EU will use the same confiscation tactics as Cyprus if things get worse (which of course they will):
Savings accounts in Spain, Italy and other European countries will be raided if needed to preserve Europe’s single currency by propping up failing banks, a senior eurozone official has announced.
The new policy will alarm hundreds of thousands of British expatriates who live and have transferred their savings, proceeds from house sales and other assets to eurozone bank accounts in countries such as France, Spain and Italy.
The euro fell on global markets after Jeroen Dijsselbloem, the Dutch chairman of the eurozone, told the FT and Reuters that the heavy losses inflicted on depositors in Cyprus would be the template for future banking crises across Europe.
Dijsselbloem tried to retract the statement after investors started panicking, but the damage is already done. Now the cat is out of the bag:
Translation: it now officially sucks to be an unsecured creditor in Europe. In other words: an uninsured depositor.
Why this ad hoc dramatic shift in the European approach to bank solvency, which if anything makes the link between bank and sovereign closer than ever, and crushes all that Draghi achieved in the summer of 2012?
Simple: because what Cyprus allowed was the effective usurpation of democracy - the only reason the Cypriot bailout “passed” (at least so far) is because it was structured as a bank restructuring, a financial system “resolution”, not a tax,and thus not in need of a parliamentary, democratic vote. Because as Cyprus also showed, votes to deprive depositors of cash, whether insured or uninsured, simply won’t fly.
Hence the shift.
However, there is a problem: it means that depositors are now fair game everywhere, and that the ESM or EFSF, with their unlimited scope but “democratic” impleention pathway, are on the backburner.
And now, the scramble to pull uninsured deposits out of banks everywhere begins. Thanks to the new Eurogroup head.
“You ask for miracles, Theo. I give you Diesel-BOOM”
And now, every European depositor is going to their local financial dictionary to look up the definition of General Unsecured Claims, only to see a picture of… themselves.
Simon Black at Sovereign Man blog tells readers to “Expect These Eight Steps From The Government’s Playbook“:
To anyone paying attention, reality is now painfully obvious. These bankrupt, insolvent governments have just about run out of fingers to plug the dikes. And history shows that, once this happens, governments fall back on a very limited playbook:
As Cyprus showed us, bankrupt governments are quite happy to plunder people’s bank accounts, especially if it’s a wealthy minority.
Aside from bank levies, though, this also includes things like seizing retirement accounts (Argentina), increases in civil asset forfeiture (United States), and gold criminalization.
Just another form of confiscation, taxation plunders the hard work and talent of the citizenry. But thanks to decades of brainwashing, it’s more socially acceptable. We’ve come to regard taxes as a ‘necessary evil,’ not realizing that the country existed for decades, even centuries, without an income tax.
Yet when bankrupt governments get desperate enough, they begin imposing new taxes… primarily WEALTH taxes (Argentina) or windfall profits taxes (United States in the 1970s).
This is indirect confiscation– the slow, gradual plundering of people’s savings. Again, governments have been quite successful at inculcating a belief that inflation is also a necessary evil. They’re also adept at fooling people with phony inflation statistics.
Governments can, do, and will restrict the free-flow of capital across borders. They’ll prevent you from moving your own money to a safer jurisdiction, forcing you to keep your hard earned savings at home where it can be plundered and devalued.
We’re seeing this everywhere in the developed world… from withdrawal limits in Europe to cash-sniffing dogs at border checkpoints. And it certainly doesn’t help when everyone from the IMF to Nobel laureate Paul Krugman argue in favor of Capital Controls.
Wage and Price controls
When even the lowest common denominator in society realizes that prices are getting higher, governments step in and ‘fix’ things by imposing price controls.
Occasionally this also includes wage controls… though wage increases tend to be vastly outpaced by price increases.
Of course, as any basic economics textbook can illustrate, price controls never work and typically lead to shortages and massive misallocations.
Wage and Price controls– on STEROIDS
When the first round of price controls don’t work, the next step is to impose severe penalties for not abiding by the terms.
In the days of Diocletian’s Edict on Prices in the 4th century AD, any Roman caught violating the price controls was put to death.
In post-revolutionary France, shopkeepers who violated the “Law of Maximum” were fleeced of their private property… and a national spy system was put into place to enforce the measures.
Despite being completely broke, governments will dramatically expand their ranks in a last desperate gasp to envelop the problem in sheer size.
In the early 1920s, for example, the number of bureaucratic officials in the Weimar Republic increased 242%, even though the country was flat broke from its Great War reparation payments and hyperinflation episode.
The increase in both regulations and government officials criminalizes and/or controls almost every aspect of our existence… from what we can/cannot put in our bodies to how we are allowed to raise our own children.
War and National Emergency
When all else fails, just invade another country. Pick a fight. Keep people distracted by work them into a frenzy over men in caves… or some completely irrelevant island.
Child screams “don’t touch me!” as TSA agent runs her hands all over the child’s body:
View on YouTube
Israel faces more terrorist threats every day than Americans will ever understand, and yet they have managed to keep terrorists off of their airplanes for decades without molesting kids, harassing old ladies or humiliating disabled veterans. How? Israel screens through behavioral profiling – an effective strategy our politically correct government refuses to use because they consider any form of profiling to be wrong (but sexually harassing children is OK)?
A Missouri couple is furious after the Transportation Security Administration detained their wheelchair-bound three-year-old daughter, took away her stuffed doll, and refused to allow them to videotape agents patting her down.
“They treated her like a criminal,” said Nathan Forck. “And by extension they were treating us as criminals.”
[...] Forck and his wife Annie, along with their three children were heading to Disney World for a family vacation. Lucy, their three-year-old, has Spina bifida and is confined to a wheelchair.
The family managed to make it through the TSA checkpoint without any problems. But as they prepared to walk to their gate, a TSA agent pulled aside Lucy for additional screening measures.
“They specifically told me that they were singling her out for this special treatment because she’s in a wheelchair,” he told Fox News. “They are specifically singling out disabled people for this special scrutiny. It’s rather offensive to me as a father of a disabled child.”
The agent said they needed to pat down Lucy and swab her wheelchair – even though both had already gone through the checkpoint.
Forck’s wife started filming the entire episode – over the objections of the TSA agent.
“You can’t do touch my daughter unless I record it,” she can be heard telling the agent.
The agent replied by telling the parents “It is illegal to do that.”
“The problem is, I don’t allow anyone to touch my little daughter,” Annie Forck said.
The Forcks refused to stop filming and soon, the young family was surrounded by TSA agents – one specifically assigned to guard Lucy.
“It’s your worst nightmare,” Forck said. “It’s bad enough they are demanding they want to pat down my child and didn’t want me to videotape it.”
The video is heart-wrenching for any parent to watch:
View on YouTube
Children depend on their parents to protect them from abuse, but what happens when the government is the abuser? Do we just stand by and allow our children to be traumatized in the name of “security”?
In this video, screeners humiliate a 12-year-old in a wheelchair:
View on YouTube
That’s an experience she’s going to remember for the rest of her life. How many more children have to be violated and harassed before parents and citizens finally say “enough”?
If they weren’t wearing a government badge, any person doing this to a child would be arrested for child abuse. Just because the abuser represents the government doesn’t make it OK. Parents, stand up and protect your kids!
It’s not a “tax.” It is government stealing money directly out of people’s bank accounts – money that was deposited AFTER taxes were already paid on it.
Socialism = theft, pure and simple. Christians who support Socialism need to go back study what the Bible has to say about debt, envy, and theft!
An 11th-hour deal with the EU, which has saved the Cypriot economy from the brink, will see investors with more than €100,000 in the nation’s largest banks forfeit a large chunk of their deposits.
The punishing deal – which has been approved by the eurozone finance ministers – will allow the country to receive the €10bn (£8.5bn) bailout it needed before the European Central Bank pulled funding and sent the island on the path to bankruptcy and a possible exit from the single currency.
Under the new agreement, all bank deposits under €100,000 will be secured and guaranteed by the state. The country’s second-biggest bank, The Popular Bank of Cyprus – known as Laiki – will be wound down whilst holders of deposits of more than €100,000 face big losses.
The tyrants at the UN won’t be satisfied until every citizen capable of resisting them world-wide is disarmed into sitting ducks. If just 2/3 of the Senate votes to ratify this treaty, our gun rights will be in serious jeopardy.
The fact that Democrats are willing to take the side of other nations against their own fellow citizens’ constitutional right to self-defense reveals how traitorous they truly are.
Senate Majority Leader Harry Reid said there was not enough support to give Sen. Dianne Feinstein the stand-alone vote she demands on the “assault weapon” ban, but the upper chamber may soon be the deciding factor in whether the United States ratifies an international treaty that could strip Americans of their Second Amendment rights.
On Monday, the United States joined in the nine day conference in New York to finalize negotiations of the Arms Trade Treaty (ATT). The treaty is intended to regulate the global trade of conventional weapons, but depending how the final document is worded, it could put at risk Americans’ right to keep and bear arms.
The countries were negotiating the draft last July, but stopped when the U.S. asked for a delay. Many believe Mr. Obama pushed the issue past Election Day in order not to further alienate gun owners. Now that he has more “flexibility” in his second term, the U.S. is back at the table.
Secretary of State John Kerry has encouraged reaching consensus by March 28. “The United States is steadfast in its commitment to achieve a strong and effective Arms Trade Treaty that helps address the adverse effects of the international arms trade on global peace and stability,” he wrote in a statement Friday.
[...] Mr. Obama will likely go ahead and sign the treaty as it is. Then the only thing standing in the way of the U.N. stripping Americans of their Second Amendment rights is if he can get two-thirds of the Senate to ratify.
Certainly the ATT is controversial. Touted as a means of getting a handle on an international arms trade valued at $60 billion a year, its stated purpose is to keep illicit weapons out of the hands of terrorists, insurgent fighters and organized crime at an international level.
Its vague and suspicious wording led some 150 members of Congress last June to send a letter to President Obama and then-Secretary of State Hillary Clinton warning that the treaty is “likely to pose significant threats to our national security, foreign policy and economic interests as well as our constitutional rights.”
We have noted that a paper by the U.N.’s Coordinating Action on Small Arms (CASA) says that arms have been “misused by lawful owners” and that the “arms trade therefore be regulated in ways that would . .. minimize the misuse of legally owned weapons.”
Would defending your home against intruders, or U.S. laws permitting concealed carry, be considered a “misuse?”
[...] Last Thursday, Rep. Mike Kelly, R-Pa., introduced a bipartisan resolution opposing the treaty. The resolution states the U.N. proposal “places free democracies and totalitarian regimes on a basis of equality” and represents a threat to U.S. national security.
Our Constitution is unambiguous in its protection of gun rights. The ATT is not.
Interestingly, just as the world’s worst human rights violators have sat on and often chaired the U.N. Human Rights Council, Iran, arms supplier extraordinaire to America’s enemies, was elected to a top position at the United Nations Conference on the Arms Trade Treaty held in New York last July.
The U.S. is one of few countries that has anything like a Second Amendment, our Founding Fathers enshrining the right to bear arms in our founding principles in recognition of it being the ultimate bulwark against tyrannical government.
The fact that an organization full of tyrants, dictators, thugs and gross human rights violators wants to control small arms worldwide is hardly a surprise.
Somehow, administration assurances that the treaty won’t infringe on our Second Amendment right to keep and bear arms doesn’t reassure us.
UPDATE: Defeated in the Senate 53-46. We dodged a bullet…this year.
Republican Establishment Blames Social Conservatives, Tea Party For GOP Being Viewed As ‘Out Of Touch’
Hmmm…could it be that the reason people think the GOP is ‘out of touch’ is that they keep ignoring the American people’s concerns about massive debt, out-of-control spending, the erosion of constitutional liberties, and massive power-grabs like Obamacare?
Karl Rove has founded an organization for the specific purpose of bulldozing Tea Party candidates and replacing them with those hand-picked by the GOP establishment.
House Speaker Boehner has caved on Obamacare, illegal immigration, and a host of other issues, and even says that “trusts Obama completely.” WTH???
And he’s not the only one. Eric Cantor, Kevin McCarthy, Paul Ryan and Mitch McConnell have all waved the white flag on Obamacare.
The conservative base has been betrayed again and again by their own party. But who does the party blame for their losses? Their base!
I believe that the disappointing results for Republicans in the 2006 elections and probably the 2012 elections, as well, were in no small part attributable to frustrated conservatives staying at home.
The thinking among many conservatives has been that the party has consistently fallen short by failing to restrain the growth of the ever-expanding federal government and by failing to nominate sufficiently conservative presidential nominees. That is, if we would just nominate and elect Reagan conservatives and govern on Reagan principles, we would recapture majority status in no time.
The main opposing view — call it the establishment view — holds that Republicans need to accept that the reign of small government is over, get with the program and devise policies to make the irreversibly enormous government smarter and more energetic. In other words, Republicans need to surrender to the notion that liberalism’s concept of government has won and rejigger their agenda toward taming the leviathan rather than shrinking it.
I’d feel better if the ongoing competition between Reagan conservatives and establishment Republicans were the only big fissure in the GOP right now, but there are other cracks that threaten to break wide open, too. Our problems transcend our differing approaches to the size and scope of government and to fiscal and other economic issues.
Reagan conservatism is no longer under attack from just establishment Republicans; it’s also under attack from many inside the conservative movement itself. Reagan conservatism is a three-legged stool of fiscal, foreign policy and social issues conservatism. But today many libertarian-oriented conservatives are singing from the liberal libertine hymnal that the GOP needs to remake its image as more inclusive, more tolerant, less judgmental and less strident. In other words, it needs to lighten up and quit opposing gay marriage, at least soften its position on abortion, and get on board the amnesty train to legalize illegal immigrants. I won’t even get into troubling foreign policy divisions among so-called neocons, so-called isolationists and those who simply believe we should conduct our foreign policy based foremost on promoting our strategic national interests.
[...] I belong to the school that believes the Republican Party must remain the party of mainstream Reagan conservatism rather than try to become a diluted version of the Democratic Party. This does not mean Republicans can’t come up with creative policy solutions when advisable, but it does mean that conservatism is based on timeless principles that require no major revisions. Conservatives are champions of freedom, the rule of law and enforcement of the social compact between government and the people enshrined in the Constitution, which imposes limitations on government in order to maximize our liberties. If we reject these ideas, then we have turned our backs on what America means and what has made America unique. What’s the point of winning elections if the price is American exceptionalism?
Rush Limbaugh is calling the Republicans to task for their “blame the conservative base” mentality:
The Republican National Committee released earlier on Monday an “autopsy” of its 2012 election failures and pinned the blame on the party being out of touch with voters, particularly minorities.
Limbaugh said the opposite was true. “We are in touch with the founding of this country. We are in touch with the greatness in this country and its people,” the popular radio commentator said, according to Politico.
Limbaugh said that if the party moves away from championing values, such as traditional marriage, it will lose support among its base.
“If the party makes that [gay marriage] something official that they support, they’re not going to pull the homosexual activist voters away from the Democrat Party, but they are going to cause their base to stay home and throw their hands up in utter frustration,” Limbaugh said.
Limbaugh said it was party leaders who were out of touch with its own base.
Jonathon Moseley writes that the problem isn’t conservative values, but a failure to effectively market them to a new generation:
The Republican Party is violating time-tested, basic principles of sales and marketing. That’s why the GOP is failing to communicate its messages. On Monday, the Republican National Committee released a massive reform strategy, whimsically labeled an “autopsy” or “reboot,” to completely overhaul the GOP. Like Democrats in 1992, Republicans are growing hungry to win in 2014 and 2016.
Here is what is wrong with the Republican Party. This author taught in a sales training seminar firm in Eastern Europe, International Trendsetters. The solutions are overwhelmingly time-tested and proven in real life. This is not theory. Republicans are chronically making classic rookie sales mistakes.
“FAB” — Features, Advantages, Benefits. You must explain how a policy benefits the voter. Bad salesmen talk about features – the radio has a better tuner. Good salesmen talk about how the radio benefits the customer – you will enjoy the music more and set a better mood for your love interest because it sounds better and clearer. People don’t buy a mattress. They buy a good night’s sleep. And maybe good décor.
On Monday, RNC Chairman Reince Priebus explained that we must talk about how Americans benefit from low taxes and lower national debt. We have to talk about how Republican policies will put more people to work, at higher salaries, improve our economy, and strengthen our country. Republicans talk about details — lower taxes, lower regulations, lower deficits. We fail to explain why those details actually matter to the voter.
But isn’t it obvious? No. Classic rookie mistake. It’s obvious to you if you spend lots of time thinking about these things. It’s not obvious to busy people who have other things to think about, which they feel are more important in their lives. Yes, you have to draw them a map.
There is an imbalance between the speaker who is extremely familiar with a topic and the listener who isn’t. The speaker needs to understand how the speaker really sounds to the listener. Republicans skip over too many steps and assume too much. The American voters are smart. But they haven’t spent as much time thinking about your topic as you have. We have to be able to empathize with the busy listener and even remember how we were when we first learned about these issues.
It is amazing that the GOP has been so bad at this, when Ronald Reagan was so good at it. If anyone is thinking of running for office, Step #1 is to listen to every speech Ronald Reagan ever gave. Several times. Reagan “got” it. Then the GOP lost it.
Next, the mind abhors a vacuum. What you don’t say can and will be used against you in the court of public opinion. People have never stopped talking about cuts in education, even while education spending soars year after year. People will assume you want to help the rich by lowering taxes. They will assume you hate immigrants. They will assume you want women barefoot and pregnant. If you don’t explain how GOP policies benefit the listener, their minds will fill in the vacuum with other explanations. If you don’t provide a reason, their minds will provide one for you.
Third, love objections. This is one of the most powerful principles good salesmen know. We view objections with dread. A voter tells you why they don’t like the GOP. Time-tested sales techniques have proven that objections are opportunities. When a prospect tells you what he is concerned about, you now have the opportunity to address his or her concerns.
This is especially true when a voter believes something that isn’t true about Republicans — if they are willing to talk to you, that is. Proven sales experience shows that when someone is willing to tell you their negative views, and talk to you about it, you have an open door to dramatically turn around their perceptions.
Of course you have to treat them as a future friend, not as a current enemy. But the overwhelming majority of successful sales are closed after the third or fourth objection. That’s right, most sales succeed after not just the first negative response, but after several negative issues are raised and discussed. But you have to care about the other person as much as you care about yourself to answer their concerns fully, fairly, and respectfully.
Fourth, “ask for the order” as RNC Chairman Reince Priebus described on Monday. In other words, you have to show up. You are not going to win over any hearts or minds sitting in your office across the street from the Capitol South Metro station (the RNC headquarters). It is common sense that you have to go out and talk to Hispanics, Blacks, and other groups.
The GOP’s “outreach” efforts have often been embarrassing. Republican campaigns appoint leaders of, say, “Korean-Americans for Bush,” then order bumper stickers and campaign pins. And that’s about it. Pretending to be doing outreach, but not really, is a Republican specialty.