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Federal Reserve scamming Americans citing recovery efforts ...

One could make the case that the proximate cause for the current financial crisis lies in the Federal Reserve’s monetary policy which attempted to assist financial institutions recover from the dot com crash by keeping the federal funds target rate artificially low for a long period of time.

As you may remember, the dot com boom was an era, some say error, of “irrational exuberance” where computer-related companies that failed to produce a single dollar profit were valued as astronomical prices by the Wall Street Wizards. Until someone noticed that the emperor had no clothes and it came crashing down.

The artificially low interest rates on safe and sound Treasuries was absurdly low, so those that manage the global pools of investment capital turned to the next safest thing: mortgages. Of course, after every creditworthy borrower had received the mortgage they wanted, the Wall Street Wizards, once again, turned to their machinations to produce more “product” and thus the seeds of the mortgage meltdown were planted.

Now the Federal Reserve is repeating the pattern to re-capitalize financial institutions, many of which were technically insolvent, so as to continue “business as usual.”

The way the scam works is …

The Federal Reserve offers to loan financial institutions money at near zero rates; collateralized with the bank’s dodgy paper. As per the Federal Open Market Committee (FOMC), the rate is between 0% and one-quarter of one percent. (0.25%).

Now the financial institution can purchase other institutions for their assets, invest more money in high-yielding consumer credit card debt or engage in consumer and commercial lending to stimulate the economy. But, in nothing more than an electronic bookkeeping entry, the financial institution simply re-invests the money in federal treasuries for a guaranteed profit of at least three percent. With billions of dollars in play, this is a totally unearned profit that will help the financial institution to erase that portion of their balance sheet which would render them insolvent.

The resulting federal securities could also be used to meet the institution’s core capital requirements or to collateralize further debt.

As a result, the American consumer gets little or nothing in return on their bank deposits and fixed income investments. Thus producing  crushing burden on senior citizens living on fixed incomes and needing the income from their investments to survive.

So I am understandably upset when I see Reuters reporting …

“Bullard sees Fed action if recovery fails”

“Federal Reserve policy makers all agree they would provide more support to the economy if the recovery suffers a serious setback, St. Louis Federal Reserve Bank President James Bullard said on Friday.”

"’I think everyone on the committee is completely on board with the idea that, you know, if things got really bad, we would try to take other action,’ he said on CNBC television.”

“Bullard said he has concerns that the Fed's current policy of promising exceptionally low interest rates for an extended period could have the opposite of its intended effect of stimulating growth.”

Other than re-capitalizing the banks, the Fed policy does not seem to be pumping additional liquidity into consumer and commercial lending. And the Fed policy does little or nothing to compel the financial institutions to start releasing their overhang of foreclosed and distressed properties on the market so that the housing market can find it’s true bottom and return some semblance of “trust” in the valuation of real estate assets.

The reason that the financial institutions are delaying significant and meaningful mortgage modifications is that they are either hoping for better times in which to sell their real estate or fear having to actually book loan losses which might impair their balance sheet and require them to raise additional capital or face regulatory problems.

“The Fed's policy setting Federal Open Market Committee promised ultra low rates for a long time to underscore its intention to support the economy as it was battered by a deep financial crisis and painful recession.”

Promoting a rate increase to avoid “deflation” …

Along with Thomas Hoenig, President Federal Reserve Bank of Kansas City, who has courageously called for the Fed to raise interest rates, Bullard is hawkish on a rate increase.

“The St. Louis Fed president's concerns with deflation illustrate the quandary facing the Fed, which has watched the recovery fade despite taking some of the most aggressive actions in central banking history. U.S. economic growth slowed to a 2.4 percent annual rate in the second quarter of 2010 from a revised 3.7 percent growth rate in the first quarter, the government said on Friday.”

Is the answer to real deflation, artificial inflation?

There is no doubt in many economist’s minds that the government plans to inflate its way out of this recession. By creating more “but cheaper” dollars, the Fed can pay down some of its outrageous debt at cheaper costs using devalued money. And, if you remember the definition of inflation: “too much money chasing too few goods, thus driving up prices,” you can see the result of turning on the printing press and cranking out additional dollars.

Bullard said with interest rates near zero, the central bank should shift its focus from promising low interest rates to using its printing press to push more credit into the financial system as economic conditions fluctuate.”

“However, some at the central bank remain concerned the Fed's super-easy money policies are a recipe for inflation down the road. Bullard said the Fed must also be on guard against such risks.”

The economist’s famous “on the one hand” viewpoint …

"’There's two sides to this,’ he said. ‘On the short term you do have pretty low inflation, and trending down, and you do have some risk there. In the medium term, you've got a huge balance sheet that could turn into really a lot of inflation.’"

What they are NOT saying …

The greatest strength in the United States economy comes from being able to create and manufacture things that other people want. Strength does not come from the Wall Street Wizards who create nothing, but make outrageous bonuses for nothing more than pushing paper back and forth over the table as they whipsaw the American economy with their daily tales of “why the market behaves as it does.” Producing joy or fear for mass consumption in order to drive the volatility that makes trading profitable.

And it is this production capability that the U.S. government is killing. By imposing onerous rules, regulations and taxes. By supporting unions which kill productivity, raise costs and reward seniority over merit. No wonder America outsources to remain competitive. At every turn the anti-capitalist Marxists and their  environmental friends are attempting to kill American business – and the economy – in order to pursue their toxic agenda.

Not to mention that these Wall Street Wizards fail to realize that it is better to sell foreclosed homes to creditworthy borrowers at an affordable price point than it is to let them simply decay into nuisances which must be bulldozed. Without a reliable real estate market and somewhat of a true valuation for real estate assets, you cannot spark a true and meaningful recovery.

Bottom line …

The Obama Administration is playing both sides of street: pandering to Wall Street to raise significant campaign funds (using financial regulatory reform as a fund-raising vehicle) and the toxic unions to raise voter support. They, the incompetent politicians,  are simply screwing over the American consumer/taxpayer with their policies which are designed to push a political ideology, not a recovery.

We need to vote for competent and honest brokers to represent “we the people.” We need to break the Carter-Clinton-Bush-Obama” cycle of politics above people and once again return our nation to its rightful owners.

-- steve

Reference Links …

Bullard sees Fed action if recovery fails | Reuters


“Nullius in verba.”-- take nobody's word for it!

“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw

“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”

“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS

"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius

“A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell

“Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar

“Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS



Joe Biden: Listen up dummies, we need your cash again ...

Once again, the democrat party asks you to overlook the consequences of  their recent accomplishments …

They brought you healthcare which will raise your premiums, raise your taxes, reduce your access to medical care and base what health care you do get on a formula. Not to mention having cut $500 Billion from the Medicare program.

They brought you the stimulus package which was used to save “unionized government jobs” and did little or nothing to save jobs in the private sector.

And they are trying to screw the American public with their energy policy which will raise your energy bill and automatically set the temperature on your thermostat.

They told you about being post-racial and everything they did was viewed through the prism of race.

They told you that they were the most ethical, transparent and accountable Administration and Congress ever and that they wouldn’t employ lobbyists – and then did everything in their power to craft legislation in secret, behind closed doors; getting input from radical left foundations and advisers and avoiding the Republican’s ideas. Employing scores of former lobbyists and granting unprecedented powers to unelected czars.

They told you to forget about Obama’s associates: the racists, terrorists, crooks and thieves. Until the crooks, socialists, communists and racists were given open access to the White House and placed in high administrative positions without Senate confirmation.

And about those  evil corporate interests …

Are they the same evil corporate interests which are solicited each and every campaign cycle by the democrats??

Are they the same evil corporate interests that put forth a legion of lobbyists to influence consumer-protection legislation each and every year?

DO YOU HEAR THE DEMOCRATS SAYING NO TO SPECIAL INTEREST DEALS?

DO YOU SEE THE DEMOCRATS REFUSING TO TAKE THEIR MONEY?

ARE THESE EVIL CORPORATE INTERESTS AS EVIL AS THE UNIONS WHICH LOWER PRODUCTIVITY, RAISE PRICES AND STRESS THE COLLECTIVE OVER THE INDIVIDUAL BY REWARDING SENIORITY OVER MERIT?

ARE THEY AS EVIL AS THE UNIONS WHO SENT FORTH THUGS TO COERCE THEIR MEMBER’S VOTES?

DID THE UNIONS WHO PAID FOR THE BULK OF OBAMA’S ELECTION TO THE THRONE, TRY TO SUBVERT AN ELECTION?

Speak up, Joe Biden, I can’t hear you!

In Biden’s own words …

Friend --

$200 million.

That's what Republican-aligned special interests have pledged to spend on the 2010 election. Just to put that in context, that's nearly $40 million more than every interest group spent on the 2008 presidential election -- combined.

When our administration and this movement decided to take on the special interests, we knew we were making a choice. And the consequences are clear. These groups have fought us at every turn in our struggle for change, and now they're trying to drown out our voices -- and our accomplishments -- with their campaign cash this fall.

We're not going to sit back and let that happen.

Today, Organizing for America is announcing the By the People Fund with the goal of getting 3 million citizen donations to fuel our grassroots campaign for the upcoming election.

Please donate $5 today and help us take back this election from the corporate interests.

With our By the People Fund, we're going to make a statement this fall -- strengthening our grassroots efforts on the ground, focusing on getting first-time voters from 2008 back to the polls this year, and holding the Republicans and their special-interest allies accountable.

We've all gone to the mat with these folks time and again -- ever since Barack and I took office. And, from the Recovery Act to historic health reform to Wall Street reform, you helped prove we could win those fights.

Now these groups have one goal in mind when it comes to November 2nd -- erasing the progress we've made together.

By spending an unprecedented amount of cash to support Republicans, they're doing their best to buy their way back into power. And, if they do, they've been clear that they will do everything they can to undo the historic achievements we've fought so hard to win.

It's no wonder that each and every Republican in the Senate on Tuesday voted to allow these special interests to have a greater say in our elections. Their vote will allow these groups to spend millions on campaign ads -- and not have to reveal who's actually behind them.

I've been in politics a long time. I'm used to seeing the good guys outspent by interest groups. But we've never been outnumbered -- and we've never been outhustled.

I'm asking you to make sure it stays that way. Will you chip in and help us grow our By the People Fund?
Please donate $5 or more today:
Thank you,

Vice President Joe Biden

Fought so hard to win by arm-twisting, special favors and outright bribes that conveyed special privileges to states whose representatives held out to the last minute?

Excuse me, didn’t the democrats write a special exemption for both AARP and the NRA in exchange for their silence in opposing this assault on the First Amendment.

But I will grant you, these achievements were historic. Never before has the nation drifted so close to outright Marxist, where a ruling elite presides over the collective and discourages individual initiative and achievement. Making everybody equal as they drift lower in earning power and loose some of the personal freedom. Raising debt levels to historic levels which might bankrupt the United States – far beyond the debt of all Presidents, including President Bush.

What say you, Joe Biden?

Erasing the progress or mitigating the damage?

The democrats have proven themselves to be morally bankrupt and have almost irreparably damaged the United States economy. Even if the continue to blame former President Bush and his crony capitalism – THEY TOOK A BAD SITUATION AND MADE IT INFINITELY WORSE – nearly bankrupting the United States in the process.

These are Obama’s deficits. Afghanistan is Obama’s unwinnable war. Corruption, incompetence and chaos abounds.

But Joseph Biden wants you to concentrate on the evil corporate interests and send them money.

Are you crazy? Why would you want to get more of the same? Advance their ill-crafted social, economic, energy and foreign policies which help turn America’s strength into weakness?

Obama openly apologizes for America and Biden wants you to support this empty suit. I think not!

Bottom line …

We need to elect “honest brokers” to serve “we the people,” not corrupt, incompetent ideologues who want to bring Marxism to every American institution and every American citizen.

Vote as if your life and your country depended on it – because this time it does.

-- steve

Everything the man says is pre-written and spin-tested … and delivered with the sincerity of a trained actor.

obamaprompter


“Nullius in verba.”-- take nobody's word for it!

“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw

“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”

“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS

"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius

“A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell

“Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar

“Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS



Government Motors: California Car Bomb?

There is no doubt that the Marxists who have infiltrated the environmental movement want you to stay close to home. Preferably living in Russian-style centralized high-rises and using mass transit to go to work in the nearby energy-efficient work compound. Where energy usage can be minimized and your every move tracked by the appropriate authorities.

To this end, the federal government and the State of California have been trying to coerce drivers out of their cars with everything from refusing to enlarge freeways, adding speed-killing diamond lanes and spending prodigious amounts of money on mass transit systems which seem to go nowhere important.

In Los Angeles, you would think that mass transit light rail would easily connect with the railroad station and the airport – but no, they stop short of those desirable destination, perhaps under the political influence of the bus and cab lobby?

Cooking the books …

It appears that few things in the government are not lawyer-negotiated and address real-life situations without making political calculations involving industry lobbyists. Consider the EPA City test that is cited by car manufacturers.

According to Car and Driver, this is the “city cycle” used by the Environmental Protection Agency (EPA) for their fuel economy tests …

    • Trip length: 11 miles
    • Test time: 31 minutes
    • Number of stops: 23
    • Time spent idling: approx. 18%
    • Maximum speed: 56 MPH
    • Average speed: 20 MPH
    • Engine temp at startup: Cold (75 degrees outside air temperature)
    • maximum acceleration equivalent to a lazy, 18-second 0-to-60-mph run.

"In 1972, when regular gas was 35 cents a gallon, test cycles were invented by the newly created EPA to measure exhaust emissions. The first test cycle, which sought to mimic rush-hour traffic in downtown Los Angeles with an average speed of 21 mph, is called the FTP, or city cycle, and is still in use today.” <Source>

No doubt this was one of those lawyer/lobbyist negotiated deals that went fairly easy on the vehicle manufacturers, but who actually drives this way in California?

What does $41,000 buy?

Chevy Volt Specs

PRELIMINARY SPECIFICATIONS: 2011 CHEVROLET VOLT

General

Vehicle type: 5-door, front-wheel-drive sedan

Category: Extended-Range Electric Vehicle (E-REV)

E-REV competitors: none

Chassis: independent McPherson struts front, compound crank twist axle rear, four-wheel disc brakes, full regenerative brakes to maximize energy capture, electric power- assist steering

Seating capacity: four

Manufacturing location: Detroit-Hamtramck Assembly (subject to GM successfully negotiating satisfactory government incentives)

Performance

Top speed (mph): 100

EV range, city (miles): 40 (based on EPA city cycle)

Dimensions

Wheelbase (in / mm): 105.7 / 2685

Length (in / mm): 177 / 4404

Width (in / mm): 70.8 / 1798

Height (in / mm): 56.3 / 1430

Cargo volume (cu ft / L): 10.6 / 301

Battery system

Type: lithium-ion

Energy (kWh) 16

Electric drive unit

Power (kW / hp): 111 / 150

Torque (lb-ft / Nm): 273 / 370

Exterior

Tire and wheel size: specially developed low rolling-resistance tires on 17-inch forged aluminum wheels

Source: Chevrolet

You might be wondering what happens after 40 miles …

“After 40 miles, a small 4-cylinder gasoline internal combustion engine creates electricity on-board using a 53 kW (71 hp) generator to extend the Volt's range to more than 300 miles.”

Of course, the government will need to coerce you to purchase this vehicle …

It has been reported that federal subsidies, up to a $7,500 tax credit and other state benefits will reduce the cost to a more reasonable level. Of course, the rich and famous, “don’t do as I do, do as I say,” crowd will have their own show-car, the $100,000-plus Tesla Motors Roadster with a range greater than 200 miles, acceleration 0-60 in 3.9 seconds, and a much more esthetically-pleasing design. Or a trimmed down version for the rest of humanity, possibly at a competitive price somewhere in the neighborhood of an extra  $10,000  ($49,900) after tax credits.

Like all things GM, the pricing includes hefty government (local, state and federal) subsidies of the plant, the overhanging costs of unionized workers and other government gimmicks which mask a vehicles true cost and performance.

Bottom line …

There is no way that the Chevy Volt can be described as a California Car – especially when considering the Ford Mustangs, the Hemi-equipped Chryslers, the Pontiac GTOs or any of the other iconic vehicles normally found on California Roads. I wonder what the performance stats would be for the requisite California-style convertible for cruising the coast from Santa Barbara through Malibu and on to San Diego – and back?

There is nothing in the Constitution which restricts your freedom of travel or specifies any mode of transportation. All of the tortured reasoning used by politicians and the courts is nothing more than activist social engineering to deny you your God-given freedom and to promote a cadre of worker bees to feed the ruling elite and their special interest partners.

Vehicles should not be used as instruments of public policy in that they restrict any individual freedoms. Like all those who believe in good stewardship of our planet, these vehicles should not pollute the air. Not for the sake of curtailing the bogus climate catastrophe predicted by Al “I need a massage” Gore and the special interests who are seeking political and financial gains, but because it is demonstrably unhealthy.

The government should stay out of automotive manufacturing, and especially free automakers and others to more freely compete without union labor.

We need “honest brokers” acting on behalf of “we the people” and we need to reduce the size of government and its intrusive activities.

I will not tell you how to vote, other than to point out that we need constitutionalists in office rather than a corrupt political class which has historically favored themselves and their friends over rational, prudent and decent behavior.

-- steve

Capture2-20-2009-8.30.27 PM

P.S. I own an older GM vehicle which has served me well and which is probably the last of the truly decent cars found on the road. As my friends will attest, I keep my cars for long periods of time and hate to shop for new vehicles. Of the cars I have owned, including German and Japanese vehicles, my American-made car stands up to my rigorous use and does me well.


“Nullius in verba.”-- take nobody's word for it!

“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw

“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”

“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS

"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius

“A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell

“Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar

“Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS



Is Obama's hypocrisy harming the United States?

How can President Obama even claim to champion energy independence when he panders to the far-left environmentalists who demand that ONLY so-called green energy be generated in order to protect the planet. The very same environmental movement which has been infiltrated by the socialists, Marxists and anarchists which demand the end to nuclear power generation and weapons development. The very same people who have learned to use our own laws against us and to further their nefarious Marxist agenda based on population control and reduced energy consumption.

I am here to tell you that all of the current and proposed solar and wind-powered energy generation installations will not do the job of powering America’s industry and consumer demand. They will help, but at a significant cost and without any guarantees. If these power sources were truly efficient, continuously available, sustainable, renewable and cost-effective, the multi-national corporations would have already implemented their use. Unfortunately, these power sources are not available except where they have been mandated by corrupt politicians pandering to the special interests. In other words, the politicians are using the taxpayer’s money to provide research grants and heavily subsidize the generation of this power – and using additional legislation to mandate its use even if it puts the ordinary consumer at an economic disadvantage with higher costs for reduced power consumption.

This is not the first time that so-called environmentalists have used “environmentalism” to create world havoc.

They used junk science to ban DDT, resulting in the deaths of millions of innocent people.

They perpetrated the hoax of  heavily-subsidized  “ethanol” which reduced the availability of corn-based food products, animal feed and raised the price of both food and energy.

And now these very same environmentalists are urging the government to take over the energy sector in order to avert a fictitious and unprovable planetary emergency.

Obama’s stunning hypocrisy …

How can the President of the United States ban, curtail or delay American offshore oil drilling in favor of funding and promoting deepwater oil drilling in Brazilian waters?

According to the Wall Street Journal …

Obama Underwrites Offshore Drilling:Too bad it's not in U.S. waters.

“The U.S. is going to lend billions of dollars to Brazil's state-owned oil company, Petrobras, to finance exploration of the huge offshore discovery in Brazil's Tupi oil field in the Santos Basin near Rio de Janeiro. Brazil's planning minister confirmed that White House National Security Adviser James Jones met this month with Brazilian officials to talk about the loan.”

The money is to be fronted by the Export-Import Bank of the United States, ostensibly to purchase American-made oil production equipment. The board voted to extend the funding before the new bank head was appointed by Obama. In essence we are federally subsidizing the sale of our own equipment for little or no return to the taxpayer.

It should be noted that the bank is now headed by a politically correct Obama appointee whose major claims to fame is that he is the openly gay son of the mail-order maven Lillian Vernon and was a significant contributor and bundler of Obama campaign funds. I am unaware of any significant banking, oil production or  any other industrial expertise.

It is said that the oil production will not benefit the United States to the extent that 200,000 barrels of oil per day will be exported to China, one of the world’s gross polluters, in partial satisfaction of a $10 billion loan.

The big question …

How can Obama watch other oil-producing nations develop their natural resources and deny America the benefits of cheaper domestic oil?

How can Obama watch Marxist and Communist countries exploit nuclear power generation and deny America both energy independence and a source of cheaper energy? Energy independence which would rationalize our foreign policy and keep us from sending billions of dollars abroad to arm our enemies and to purchase political influence within the United States? Drat – I answered my own question.

Bottom line …

We need an honest broker to work on behalf of “we the people,” all the people and not just the politician’s ideas of easily manageable segments of the public: whites, blacks, Hispanics, poor, rich, Asians, etc.

WE NEED TO VOTE ALL OF THE DEMOCRATS OUT OF OFFICE IN THE NOVEMBER ELECTION TO RESTORE OUR CONSTITUTIONAL CHECKS AND BALANCES – AND TO SEND A MESSAGE TO OBAMA: NO MAS – NO MORE!

No more profligate spending on broken social programs, no more spending on special interests and no more spending on the implementation of a deeply-flawed healthcare and educational system.

The time to act is now. We are facing a clear and present danger and we need to halt this political madness.

-- steve

Reference Links:

President Obama Finances Offshore Drilling in Brazil - WSJ.com


“Nullius in verba.”-- take nobody's word for it!

“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw

“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”

“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS

"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius

“A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell

“Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar

“Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS



What we have learned from Wikileaks ...

No matter how the government or the politicians spin the Wikileaks story about a dump of military documents to the public, there are a number  central truths to be learned.

1.  Supporting the troops is not the same as supporting their mission.

We have placed a large contingent of our troops in harm’s way for some unknown political purpose that has little or nothing to do with reality of keeping the United States safe from terrorism. That is to say we do not use special forces to influence specific situations. The takeaway is that you can condemn the mission without slagging our troops.

2.   The Pakistani Intelligence Service is the Taliban and the Taliban is the Pakistani Intelligence Service.

Pakistan is more concerned with defending themselves against their mortal enemy, India, than caring about the United States’ war against terror in Afghanistan.

In fact, it is in Pakistan’s best interest to have a tribal, Islamic state on its border while they concentrate on India. That is, it is in Pakistan’s best interests to have a stone-age Islamic state on their border than it is to have a democratic Afghanistan state is not embroiled in religious turmoil.

American funds are being funneled by the Pakistanis to the Taliban and that accounts for the increase in Taliban strength.

The main leader of the Taliban movement is Mullah Mohammed Omar; often said to be strongly influenced and also supported by Iran. But the main support for the Taliban appears to be the ISI who continues to  equip, train and shield the Taliban.

3.   That the war appears to be driven by the special interests who are profiting mightily from the conflict.

There is no doubt that the defense contractors and other special interests are profiting from the continued fighting in Afghanistan and the basing of American troops throughout the world.

4.  The Obama Administration is afraid of the political consequences of  resolving the Afghanistan war.

Believe it or not, this war seems to be driven by political interests on both sides of the aisle as they pander to their special interests and large contributors. The politicians need ongoing and significant campaign contributions for the upcoming election cycle and are reluctant to pull the plug on this obvious lucrative venture.

The Obama Administration is also afraid of the domestic consequences should a large number of troops return to the continental United States and resume their former jobs – as guaranteed by law. This would force more people out of work and create a politically untenable unemployment situation.

5.  The story is not the leak of classified documents itself, but what the leaks reveal.

That the United States government is not telling the American public the truth about the Afghanistan war and that we are wasting our lives and fortune in a never-ending situation that is not likely to get better in the future.

Don’t look here … look over there! This is a weapon of mass distraction

6.  The mainstream media has failed to protect the American citizens.

Truth be told, most reporters sit in hotels and other protected areas and re-write public relations handouts or rely on indigenous people to collect the actual news. And domestically, it appears that the mainstream media has thrown in with the Obama Administration and is guilty of disseminating political propaganda as if it were the fair and balanced truth.

7.  We are engaging in nation building where no nation really exists.

We are trying to take a tribal society whose loyalty is to their family, their clan and their tribe rather and somehow force them to show allegiance to some central government run by a corrupt politician.

8.  There is something radically wrong with the occupant of the White House and his Administration.

According the the Associated Press, “The White House says it didn't try to stop news organizations who had access to secret U.S. military documents from publishing reports about the leaks.” That is apparently after they were informed that there were materials classified as “secret” and “confidential” among the treasure trove of documents and that some represented potential harm to in-country troops and others. For a man and a party who holds the military in low esteem, perhaps this is not such surprising behavior.

There is another point of view …

Our national policy is to deny a safe haven to terrorists. There is no need to win hearts and minds by using taxpayer funds to play policeman in what are essentially tribal conflicts or build-out their country’s infrastructure. We need to inspire fear –- they respect only strength and the willingness to use it –and demonstrate real consequences if they harbor terrorists who create terrorist havoc.

Warning …

You, the individual American citizen, have an unprecedented opportunity to look at raw intelligence data before it has been processed by trained analysts. Some of this data has been obtained in return for payments to informants who have an invested interest in spinning personally profitable stories. Or that some may have a political or vested interest in what they are reporting.

There is also a danger that this type of story will overshadow the corruption of both the government and mainstream media and sway the election by diverting attention from the incompetence, corruption and toxic political ideology of  Obama, his Administration, the complacent republicans, the Congressional democrats and their fellow-travelers.

Bottom line …

We need to reset our political process and our national defense initiatives. We need to elect “honest brokers” that represent the best interests of “we the people” and not their fellow politicians and the special interests.

We need to develop a national policy on Afghanistan, Iraq and the real root of much of the trouble in the region, Iran. We cannot allow ideologues who are acting as advisors to the government to allow our nation to repeat the mistakes of a McNamara, Kissinger, Brzezinski and others who believe they understand the “nuance” and the “political coloration” of the situation.  

VOTE – your life and your nation depends on the upcoming election.

-- steve

Reference links …

Afghan War Diary|Wikileaks

“25th July 2010 5:00 PM EST WikiLeaks has released a document set called the Afghan War Diary, an extraordinary compendium of over 91,000 reports covering the war in Afghanistan from 2004 to 2010.”

“The reports, while written by soldiers and intelligence officers, and mainly describing lethal military actions involving the United States military, also include intelligence information, reports of meetings with political figures, and related details.”

“The document collection is available on a dedicated webpage.” 


“Nullius in verba.”-- take nobody's word for it!

“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw

“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”

“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS

"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius

“A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell

“Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar

“Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS



Obama's economic justice is a lie! Unions sell out their members!

Like almost everything else that President Obama says, under the Obama Administration, economic justice – equal pay for equal jobs is a LIE!

The toxic effects of Obama’s Marxism …

SigTARP, the Special Inspector General for the Troubled Asset Relief Program, has reported to Congress that the termination of dealerships and the loss of thousands of jobs was done for nothing more than President Obama’s need to demonstrate “shared sacrifice.”

 Capture7-25-2010-4.15.32 PM

FACTORS AFFECTING THE DECISIONS OF GENERAL MOTORS AND CHRYSLER TO REDUCE THEIR DEALERSHIP NETWORKS 

This is a false dilemma with no factual support: no one from Treasury, the manufacturers or from anywhere else indicated that implementing a smaller or more gradual
dealership termination plan would have resulted in the cataclysmic scenario spelled out in Treasury’s response; indeed, when asked explicitly whether the Auto Team could have left the dealerships out of the restructurings, Mr. Bloom, the current head of the Auto Team, confirmed
that the Auto Team “could have left any one component [of the restructuring plan] alone,” but that doing so would have been inconsistent with the President’s mandate for “shared sacrifice.”

That the scale of terminations was not vital to the  companies’ survival has since been further demonstrated by the fact that the companies have offered reinstatement to hundreds of dealerships without concerns that such reinstatements will threaten their viability.”  <Source>

It should also be noted that Ron Bloom, the radical far-left liberal who served as the special assistant to the President of the United Steel Workers, has been quoted as saying:

"Generally speaking we get the joke. We know that the free market is nonsense. We know that the whole point is to game the system, to beat the market, or at least find someone who will pay you a lot of money because they're convinced that there is a free lunch. We know this is largely about power, that it's an adults only, no limit game. We kind of agree with Mao that political power comes largely from the barrel of a gun. And we get it that if you want a friend, you should get a dog." <Source>

I ask you, does this sound like an “honest broker” acting on behalf of all American citizens or a committed ideologue following his leader’s Marxist ideology?

So how does President Obama and his fellow traveler, Ron Bloom, explain this to their union buddies?

The Washington Post is reporting …

“After bailouts, new autoworkers make half as much as veterans in same plant”

“Among workers building the Jeep Grand Cherokee here, there are few obvious distinctions. Clutching lunch sacks and mini-coolers, they trudge together through the turnstiles at the plant's main gate each day to tinker with the same vehicles, along the same assembly line, performing the same tasks.”

“Yet they fall into distinctly unequal classes: About half make $28 an hour or more, while the rest, the recently hired, make $14.”

Perfectly understandable to unions which reward seniority over performance and merit. 

Want to bet that both groups pay exactly the same union dues and assume that the union is equally supporting their cause?

Want to bet that these workers, happy to have jobs in a damaged economy and an even more damaged industry do not understand that unions were the proximate cause of the death of the auto industry? Not only by rewarding seniority over merit, but imposing onerous work rules and continually pushing up salaries, benefits and retirement programs that made it impossible for domestic automakers to compete with their foreign competition.

Follow the money …

Of course, unions are not so much about economic justice as much as they are increasing their membership to keep the funds flowing into their pension funds – historically used for self-serving purposes by the union’s leadership – and being able to deliver votes to increase their political clout. The fact that most democrat-led unions have roots in socialism or communism is barely mentioned. Or the ease at which organized crime was able to infiltrate and control some unions and locals.

This is not to say that union workers are not hard-working, America-loving, citizens who are struggling with the same day-to-day challenges we all face, but that they are often given little or no choice in fighting a corrupt machine which appears to have overwhelming control over their employment and social lives.

Obama sold out America …

Where did President Obama get the authority to flout decades of well-established law?Instead of allowing the automakers to seek relief under the bankruptcy laws, where the courts seek to develop a fair and equitable solution to the company’s problems, the Obama Administration cut a corrupt deal with the unions. Openly flouting existing laws to demand that the unions, with their unsecured claims, take precedent over those who held senior secured debt-holders -- or the government would not proceed with the bailout.

Or even worse, where did President Obama get the authority to fire the President of General Motors, a private citizen who served at the pleasure of the GM Board of Directors and not the President of the United States?

And the unions sold out their members …

“Under pressure from the federal government and the companies to reduce compensation, the United Auto Workers refused to lower the wage rate for its then-current members. But it allowed all new hires to be paid the reduced rate, along with lesser health and retirement benefits.”

Some shared sacrifice? And because Obama loves anecdotes to make his point …

“After an eight-hour shift attaching oxygen sensors, Jay Johnson, a new hire and a 33-year-old father of three, winced when asked about the pay gap.”

"’It's all mental," he said after a long pause. "If you think about how much the other guys are making, well, it's not going to work for you. I don't think the $28 an hour will ever come back. But growing up around here, I just know I'm blessed to have a job.’"

“With that, Johnson was echoing the feelings of many co-workers. Several said they were content, for now, to simply collect a good, regular paycheck, regardless of whether the levels within the factory were set equitably.”

What is going on in democrat-run Detroit?

As with all democrat-led, single-party cities, corruption, waste, fraud and abuse abounds. Politicians and their special interest friends are all about keeping themselves in power and enriching themselves – and seem to care not a whit for their constituents.

“Unemployment rates run over 13 percent in Detroit, and higher than that for African Americans. Many had been unemployed before recently getting hired.”

Is this not the same type of worker exploitation that the Obama-Marxists are always exploiting in their fiery speeches?

“And because of the hard times in Detroit, Chrysler officials expect that workers will look beyond the pay disparity.”

"’If you care about your job, your salary, you look at things in a different way,’ said Gualberto Ranieri, a Chrysler spokesman. ‘You realize that in certain areas of this metropolitan area that opportunities for a job are not so wide. You have a different attitude.’"

And the hypocrisy continues …

Under government supervision, General Motors is getting back into the finance business, engaging in predatory auto loans without the fear of government intervention, and preparing to sell some of the government’s stake to the public. Something that will greatly benefit the unions – possibly in order to secure campaign funding and voter support for the upcoming election cycle.

Bottom line …

President Barack Obama is an empty suit, an incompetent radical community organizer bent on pursuing a Marxist philosophy. He takes no responsibility for his actions, always blames others and cares nothing for the opinions of Americans who have told him to cut government spending, reduce the number of government workers and do not pass Obamacare and financial reform which cede tremendous powers of Cabinet secretaries and unelected, unconfirmed czars.

It is time to abandon affirmative action in politics … rewarding incompetent and corrupt politicians for their skin color or ethnicity rather than their ability to serve as “honest brokers” for “we the people.”

We need to take back our government – and I am beginning to think, prosecute those who have subverted the Constitution of the United States.

Be ready to vote or shut up about a nation which celebrates celebrity while it decides to deny, delay or kill you when you seek healthcare or attempt to turn up the air conditioning to provide some degree of relief on a hot, muggy day.

Now’s the time. To point out Obama’s stunning hypocrisy, his willingness to face the cameras and lie to the public. And to VOTE!

-- steve

Reference Links …

After bailouts, new autoworkers make half as much as veterans in same plant


“Nullius in verba.”-- take nobody's word for it!

“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw

“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”

“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS

"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius

“A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell

“Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar

“Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS



Presidential lies about the economy -- the TelePrompTer speaks ...

I apologize in advance for this somewhat tedious answer to the President’s speech. As they say, it’s a dirty job but someone has to do it – lest the President’s lies and half-truths go unchallenged.

“Remarks by the President on the Economy”

“Hello, everybody.  Trying a little change of venue here, mix it up.” 

“I want to talk about the progress that we made this week on three fronts, as we work to repair the damage to our economy from this recession and build a stronger foundation for the future.”

“First, I signed a Wall Street reform bill that will protect consumers and our entire economy from the recklessness and irresponsibility that led to the worst recession since the Great Depression.” 

The proximate cause of this recession was and is the government’s intervention in our free-market economy.

  • The Federal Reserve holding the Federal Funds Target Rate artificially low to help banks recapitalize after the dot-com bubble burst which forced the global pool of capital to invest in mortgages rather than low-yield government Treasuries.
  • The government’s  regulatory agencies which failed to detect and prosecute the violations of laws currently on the books. And the government’s interference in the mortgage industry for purposes of pandering to their minority constituency.
  • The massive lobbying and special interest favors which have subverted consumer protection legislation in favor of the special interests who pay the freight for political campaigns.

Since the same people and the same regulatory agencies will mostly prevail under the new “reform” legislation, I do not see how the government is protecting consumers and our economy from the recklessness and irresponsibility that led to the worst recession since the Great Depression.

“It’s a reform that will help us put a stop to the abusive practices of mortgage lenders and credit card companies, and ensure that people get the straight, unvarnished information that they need before they take out a loan or open a credit card. “

It was the government’s sworn duty to detect and prosecute the egregious actions and abusive practices of mortgage lenders and credit card companies. Yet, the Administration’s regulatory agencies did nothing of note to protect consumers.

As for the straight, unvarnished information you need before you take out a loan or open a credit card, who can read or understand the densely-written disclosures which are offered as government-mandated compliance. With respect to loans and credit cards, most people’s only choice is to take it or leave it. And most people are just happy to qualify in the first place. The government simply regards “disclosure” as adequate consumer protection. In other words, it is ok to screw a consumer as long as you tell them they can be screwed in the fine print.

It will bring the shadowy deals that caused the financial crisis into the light of day. “

It was the Administration’s approval of Enron-like accounting standards that allowed financial institutions to hide failing assets in “off the balance sheet accounts.” Right up until the point where no one would believe what the corporations were reporting – thus sparking a liquidity crisis that resulted in government intervention to save technically insolvent firms.

“And it will end taxpayer bailouts of Wall Street firms and give shareholders a say on executive compensation.”

It appears that the reform legislation does nothing to end taxpayer bailouts of Wal Street firms and give shareholders a say on executive compensation. The two biggest mortgage companies, Fannie Mae and Freddie Mac, are still too big to fail; being operating under government conservatorship and need government handouts to remain solvent. As for giving shareholders a say in compensation, the truth is this is a non-binding advisory to corporate executives. In reality it is only a political talking point and means nothing at the corporate level. Government agencies such as the FDIC and the non-government Federal Reserve are being granted extraordinary powers which allows them to tap federal funds in various ways.

“The need for this reform, by the way, was underscored by the report issued by Ken Feinberg this morning, identifying a number of financial companies that continue to pay out lavish bonuses at the height of the financial crisis even as they accepted billions of dollars in taxpayer assistance.”

This is not Russia and the government should not be the determinant of private sector salaries.  This is an openly Marxist tactic involving class warfare and pitting the rich against the poor and the haves versus the have-nots for the purpose of political advantage.

And I might ask, why are you continuing to reward these very same people who were complicit in the crisis with huge sums of government money, outrageous multi-million dollar salaries and bonuses to help fix the problem? 

Perhaps we should ask about the multi-million dollar salaries and bonuses given to Fannie Mae and Freddie Mac executives who operate under a government conservatorship. Even the President doesn’t earn that type of money (yet?)

“Second, I signed a law that will improve our ability to crack down on improper payments made by our government.  Every year the government wastes tens of billions of dollars -- taxpayer dollars -- on erroneous payments to companies that haven't paid their taxes, or to prison inmates, or even to people who died a long time ago.  Today we have the technology to block these payments.  And the law I signed will give us new tools to do so.  I've set a target to save at least $50 billion in -- by 2012, savings that are more important today than ever because we simply don't have any money to waste.”

Notice that the President did not comment on the billions of dollars that have been lost to corrupt foreign governments or simply “lost in transit.” The government should worry less about the dollars lost to prison inmates and people who died and start working on the billion dollar frauds involving Medicare, Medicaid,  foreign aid and politically-connected government contractors.

“Third, we finally overcame the procedural blockade of a partisan minority in the Senate to restore unemployment insurance for about 2.5 million Americans who are out of work and looking for a job.”

Partisan minority? The democrat-controlled Congress and Administration developed this legislation, in secret and behind closed doors, using language and ideas provided by far-left radical foundations.  The “partisan minority” which represents approximately 46% of our population was not consulted nor given an chance to provide valuable input.

“So, taken together, we made enormous progress this week on Wall Street reform, on making sure that we're eliminating waste and abuse in government, and in providing immediate assistance to people who are out there looking for work.”

This is an absolute lie. Waste, abuse and corruption was increased as was the size of the government bureaucracy and their intrusiveness into every facet of American’s financial affairs.  

And since when does using the taxpayer’s money to provide two years of unemployment payments incentivize people to find a job or increase the likelihood that people will be encouraged to abandon areas of economic desperation and move towards areas of opportunity?

“But ultimately, our goal is to make sure the people who are looking for a job can find a job.  And that's why it’s so important for the Senate to pass the additional steps that I’ve asked for to cut taxes and expand lending for America’s small businesses, our most important engine for hiring and for growth. And a small business jobs bill that contains these measures may come up for a final vote in the Senate in the next few days.”

The Special Inspector General of the Troubled Asset Relief Fund has testified that the Obama Administration cut tens of thousands of jobs for no other reason than that of “shared sacrifice.” More Marxism and class warfare.

The only jobs available seem to be in the public sector as government expands or as temporary union jobs involving public sector contracting for government projects. 

“Cut taxes?”  With Obamacare and this financial regulation reform, the small businessman will be facing increased taxes in the coming years. In fact, sole proprietorships, S-corporations and limited liability concerns are facing a massive tax hike as the Bush-era tax cuts expire.

As for “passing additional steps,” you, Mr. President,  are incompetent and are more about victimhood, community organizing and government entitlements – I doubt you know how to create private sector jobs with your Marxist and anti-capitalist policies.

“With this small business bill, we’ll set up a new lending fund to help community banks offer small businessmen and women the loans they need to grow and to hire.  We’ll help states encourage more private sector loans to small businesses in industries like manufacturing or construction that have been especially hard hit by this recession.  We’ll expand our most successful small business initiatives and more than double the size of loans our small business owners can take out.”

Unlike the public sector, small business companies in the private sector do not hire if there is no business or their business faces the uncertainty of greater taxes and more regulatory paperwork.  Why bother expanding your business if your money is going to pay for more indigent illegal aliens and government programs which simply transfer your hard-earned money to the undeserving, both here and abroad?

“And to unlock the growth of our entrepreneurs, we’ll finally do what I’ve been advocating since I ran for President, which is to eliminate capital gains taxes entirely for key investments in small businesses.”

Again, who wants to tie up capital in a risky political environment where the government can unilaterally change the business climate overnight?  You do not unlock the doors to entrepreneurship by increasing risks and limiting rewards. Wealth distribution is an anathema to entrepreneurs and investors. Un-American to say the least.

“Now, last night, after a series of partisan delays, the Senate took an important step forward by supporting a lending fund in the overall small business jobs bill.  I want to thanks Senators Mary Landrieu and George Lemieux for their leadership and advocacy on behalf of the millions of small business people for whom this will make a meaningful difference.  I was heartened that Senator LeMieux and Senator George Voinovich crossed party lines to help pass this lending provision last night, and I hope we can now finish the job and pass the small business jobs plan without delay and without additional partisan wrangling.”

It’s not a joke: Why did they cross party lines? Blackmail, arm-twisting, promise of employment, promise of future pork? Or simply a compatible political ideology which makes them traitors to their American constituency? It should be noted that your significant pieces of legislation were passed with the slimmest of margins and without bipartisan support. If you were doing “good for the people” one would assume everyone would be on the bandwagon and eager to share in the credit. This, more than anything else, says something about your Presidency, your Administration and the Congressional democrats. And that something is not good.

Enter the anecdotes …

“You know, the small businessmen and women who write to me every day, and the folks who I’ve met with across this country, they can’t afford any more political games.”

With Obama, his Administration and the democrat-controlled Congress it is all about politicial games and every calculation is a political one. 

And the biggest lie of all …

They need us to do what they sent us here to doThey didn't send us here to wage a never-ending campaign.  They didn't send us here to do what’s best for our political party.  They sent us here to do what’s best for the United States of America and all its citizens, whether Democrats or Republicans or independents.  In other words, they sent us here to govern.  And that's what I hope we will do in the remaining days before the Congress takes its August recess.”

“Thank you very much.”

The people did not send you to introduce radical socialism and communism into America. The people wanted the hope and change you promised – not Chicago-style corrupt politics, pursuit of a radical agenda and the expansion of government and growing deficits beyond any bounds of decency or belief. Almost as if you wanted to shove America into bankruptcy and subservience to nations such as China and Saudi Arabia.

The people did not send you a mandate to bring incompetence and a lack of transparency and accountability into the government.

Bottom line …

“YOU LIE!”  ,… AND CONTINUE TO LIE EACH AND EVERY TIME YOU OPEN YOUR MOUTH! 

“We the people” need to replace you, members of your Administration and all of the Congressional democrats with honest brokers who respect our Constitution. Who listen to the will of the people instead of acting against them at every turn. We told you we did not care for your party’s 2000+ page bills, filled with lies and loopholes, and yet you signed them into law – even when members of your own party did not take the time to read nor understand what they were casting their ballots for. You have done everything in your power to put our nation at risk. You are a menace to the people and need to be thrown out of office.

You could have simply posted your birth certificate on the Internet to stop all of the crazy talk – yet you stuck your thumb in the people’s eye and spend millions of dollars fighting the release of your records: birth, school and passport. An honest man would have ended the debate once and for all – but you sir, do not seem to be an honest man. And you must relish sticking your thumb into America’s eye.

-- steve

Reference Links …    

Remarks by the President on the Economy | The White House


“Nullius in verba.”-- take nobody's word for it!

“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw

“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”

“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS

"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius

“A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell

“Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar

“Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS



The unwritten fourth purpose of Home Mortgage Disclosure Act (HMDA) ...

California politician Jesse Unruh was right: money is the mother’s milk of politics …

According to Federal Reserve Governor Elizabeth A. Duke, HMDA (Home Mortgage Disclosure Act) has three purposes. 

“HMDA has three purposes.”

“One purpose is to provide the public and government officials with data that will help show whether lenders are serving the housing needs of the neighborhoods and communities in which they are located.”

“A second is to help government officials target public investment to promote private investment where it is needed.”

“A third purpose is to provide data to assist in identifying possible discriminatory lending patterns and facilitate the enforcement of anti-discrimination laws, such as the Equal Credit Opportunity Act.”

While on the face of it, there does not appear to be any nefarious intent, HMDA appears to have a fourth purpose, one that presents a clear and present danger to the free market system and specifically the mortgage industry.

The unwritten fourth purpose …

The unwritten fourth purpose is to provide a mechanism whereby the government, from Congress to the Administration’s regulatory agencies, can coerce private enterprise into making decisions based on social policy for political reasons rather than free-market choices which demand sound underwriting and prudent business policies.

The corruption of a concept …

Somewhere, the government has decided that, in exchange for a charter to do business as a financial institution, one must serve the public in ways that are beneficial to public by implementing public policies with a political component. Even at the expense of the shareholders, depositors, counterparties and even logic itself.

And by being beneficial to the public, I mean beneficial to the politicians who pander to the minorities or who demand projects for their districts to increase jobs and local capital expenditure for their greater politicial glory. It should not surprise anyone that the Government Sponsored Enterprises, Fannie Mae and Freddie Mac, would insure Congressional cooperation by directing which lending programs they would favor; allowing cooperating politicians to bring home the bacon, so to speak. Those that demanded systemic reforms or operational audits, got little or nothing for their states or districts – unless they we playing the game, holding out their vote for a bigger payday.

This can be illustrated by a few questions …

Why should a lender risk their shareholder’s and depositor’s capital to engage in risky lending by being forced to lend in a decaying community that features corrupt politicians, poor zoning laws, decaying property, poor schools and even poorer residents who might not qualify for a loan under traditional underwriting criteria?

Why should a lender risk their shareholder’s and depositor’s capital to engage in risky lending by being forced to modify their underwriting criteria to count alimony, welfare, unemployment income and other non-sustainable income sources when considering the income needed to pay off a fully amortized loan?

Why should a lender be threatened by a costly examination (audit) that not only measures capital soundness, but also assesses social purpose, if they do not follow the politically-inspired prescriptive guidelines?

Why should a lender be placed at risk for a third-party lawsuit based on the statistical appearance of restrictive lending policies in the public HMDA data?

When did the banks lose their freedom of action …

Perhaps the banks lost their independence as a consequence of moving away from portfolio lending and taking federal money, participating in federally-insured loan programs and borrowing federal funds to purchase assets to sell loans into the secondary market. Which brings forth the old admonition: “He who has the gold, makes the rules.”

Controlled extortion …

It should not be lost on the reader that both the Congress and the Administration puts forth policies which demand the intervention of lobbyists with sacks of campaign cash.

Continuing on with Duke’s Speech …

“Clearly, the recent mortgage crisis has highlighted the potential ramifications of a mortgage market that is not functioning well.”

The proximate cause of the mortgage meltdown was government intervention in the capital markets and the mortgage marketplace. Had the government not kept the Federal Funds Target rate artificially low, the global pool of capital would have not incentivized the financial industry to take outrageous changes with over-abundant funds. Coupled with underwriting changes which ultimately led to NINJA (No Income verification, No Asset verification, No Job verification) or “liar loans.”

Data do not create the market, but they do help us understand what is happening in the market.”

Again, the statistics do little or nothing to reveal the depth of governmental intervention and corruption of the mortgage marketplace. 

HMDA data cannot solve all market problems, but the time is ripe for reviewing and revising the data elements, standards, and reporting formats.”

HMDA cannot solve any market problem as it fails to indicate which loans were processed under government mandate. The data itself does not present a compelling summary of a borrower’s creditworthiness except in general terms which are inappropriately linked to race or minority status.

“With the benefit of hindsight, we can now answer the question: Do policymakers have adequate and reliable data sufficient to assess market conditions and craft policy responses?”

Truth be told, policymakers do not need to assess market conditions and craft policy responses in a free market system. There should be little or need for government intervention in the marketplace with the exception of fraudulent behavior. If the government wants an example of egregious lending behavior, we suggest they turn to the automotive lending sector where every deal is different, they charge what the market will bear and they routinely engage in what might be termed predatory lending if it occured in the mortgage marketplace. So why are they not creating a version of ALDA (Automobile Lender Disclosure Act)? If you guessed powerful lobbying and politics, you would be right.

Bottom line …

The free market will provide the solution to this current market imbalance. Unfortunately, it may not bode well for the financial institutions who played fast and loose with the system, but it will work.

Consider that home prices will fall to acceptable levels and thus provide a rational floor to the home marketplace and infuse the financial system with reliable value once again.

People who couldn’t afford a home will now be able to purchase homes – without government intervention.

Financial institutions who could not compete with the artificial machinations of the secondary marketplace will once again turn to portfolio lending and its sound underwriting requirements. If anything, perhaps “covered loans” will allow some form of securitization. If the Wall Street wizards are placed at a disadvantage, so be it. They create nothing and produce nothing except commissions by being brokers. Too bad.

But the real bottom line is that we need to end this socialist government intervention in our financial organizations, in our educational institutions and in our very lives. That is not to say that some public policies are necessary, but our founding fathers did not anticipate that the federal government would takeover healthcare, private industry and the housing market.

Consider that the GSE’s Fannie Mae and Freddie Mac control about $5 TRILLION in mortgages – that is they control most of the U.S. mortgage market. So it should scare the bejesus out of you when Barney Frank, the powerful Chairman of the House Financial Services Committee, claims that he considers Fannie and Freddie instruments of public policy. This is the man who refused to implement the reforms of the GSE’s when former-President Bush requested them; even in the face of prosecutable corruption -- watching them slowly sink into government conservatorship when they couldn’t continue to meet their obligations and became technically insolvent.

All things being equal in an Obama world, choose freedom, smaller government, less taxes and above all retain your right to spend your hard-earned money as you wish.

-- steve

P.S. -- BOHICA: Bend Over Here It Comes Again ...

It should be noted that Obama's Financial Reform Obamination, known as the Dodd-Frank Wall Street Reform and Consumer Protection Act, contains a program for the insurance industry that is extremey similar to the same type of government interference which decimated the mortgage industry. Thus giving rise to the possibility of a HIDA ... Health Insurance Disclosure Act -- which would be used to punish the industry for not serving the low-income and minority communities. In legislation the only two things that appear to be certain are corruption and the recycling of bad ideas for political advantage.

Reference Links …

FRB: Speech--Duke, Opening Remarks--July 15, 2010


“Nullius in verba.”-- take nobody's word for it!

“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw

“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”

“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS

"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius

“A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell

“Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar

“Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS



AARP: THE SELL-OUT CONTINUES ...

I was greatly angered when AARP decided to support Obamacare, knowing full well that it would cut $500 BILLION from Medicare by destroying the Medicare Advantage Program.

I was further angered when the leadership of AARP decided to support Obamacare, knowing full well that it would reduce care for senior citizens – appointing a Marxist and fan of the British Medical System to insure that denial, delay and death were factors to help manage growing healthcare costs.

And I am further outraged when I find that AARP is asking me to contribute funds under what I believe are false pretenses.

One, AARP’s lobbying activities, in my opinion, have been anti-senior citizen and pro-Obama for the purposes of obtaining advantages for AARP’s insurance program and activities – not the best interests of its senior citizen constituency.

Two, see objection number one.

Here is the fear-mongering AARP solicitation …

Capture7-21-2010-12.56.17 PM

Dear Stephen,

Donate

Help protect Social Security for generations to come – make your gift by midnight tonight.

Only hours remain to make sure we have the resources we need to protect Social Security benefits for the generations to come.

This is your last chance to join our campaign – please, help us reach our $100,000 goal by making a gift before MIDNIGHT tonight.

Don't wait any longer to make a contribution – your Social Security benefits could depend on it.

The president's deficit commission is stacked with vocal critics of Social Security who could recommend major cuts to the benefits that Americans have worked so hard to earn.

These cuts could damage the very heart of American life: our sense of security, and our hope for the future. They could harm older Americans today – and hurt our children, and their children – for generations to come.

I want my daughters to be able to work hard and receive the benefits that they're promised. I want them never to have to choose between heating their homes and buying medicine. I want them to know that their country values and supports them.

Our campaign to protect Social Security is about every one of us. We're running TV and print ads, educating the media and the public, and targeting key lawmakers with grassroots action... but we can only go the distance with your support.

Give today, and help us convince Congress to protect Social Security from unfair cuts.

This is a critical moment for America's future. Thank you for giving as generously as you can.

Sincerely,

Barry Jackson
Senior Manager, Grassroots

Do you actually believe this fear-mongering and pathetic attempt to line AARP’s pockets with your hard-earned money?

I don’t believe that AARP has any credibility to protect senior citizens when it comes to Social Security – especially since they support the very Obama interests who are trying to combine Social Security, Medicare and Obamacare into a single government-controlled package for political purposes.

The corrupt democrats and their complacent republican counterparts have done nothing over the years to curb waste, fraud and abuse in the system. Announcing show trials that impose jail sentences and large “never to be paid” fines on only the smallest of the fraudsters. The big guys continue to slip through the system time-and-time again. You would think that they would consider Social Security and Medicare Fraud to be organized crime – not so; in the democrat world, it remains business as usual.

Bottom line …

We saw AARP sell out to the democrats and screw the senior citizens with Obamacare, why should anyone give them money to allow their fat-cat lawyers to wine-and-dine legislators while secretly “wink-wink, nod-nod” agreeing with the Administration.

Until AARP fires its current leadership, I will not support this corrupt, lying group of self-serving lobbyists.

The critical moment is fast approaching. It involves removing democrats from government as they have sold out the senior citizens, the younger citizens and the United States itself. The only compassion they have is for themselves and achieving the type of perpetual political power that would allow them to loot the United States Treasury for decades to come.

Vote as if your life depended on it – because with Obamacare, it is your politician, not your physician that is calling the shots.

Remember: Obamacare is a lie – it’s all about balancing the budget by denying or delaying healthcare benefits – or providing a comfortable death. Totally un-American and definitely anti-Senior Citizen. All supported by a toxic AARP for their own benefits.

In the final analysis, AARP is really a support mechanism for selling travel and insurance leads to the highest bidder – and in this case, it is the Obama government.

-- steve


“Nullius in verba.”-- take nobody's word for it!

“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw

“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”

“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS

"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius

“A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell

“Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar

“Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS



WHY IS GM PUMPING $3.5 BILLION DOLLARS OF BAILOUT MONEY INTO A FINANCE FIRM?

There is little doubt in my mind that General Motors is being manipulated on behalf of the unions by the Obama Administration and that it would be extremely wise to monitor anything GM with a skeptical eye.

First, General Motors has decided to purchase AmeriCredit for approximately $3.5 BILLION dollars. A pretty hefty chunk of change for a largely government-owned enterprise. Ostensibly this purchase is needed for GM to be able to compete with other automakers by having its own finance arm. One might ask themselves WHY?

To be able to continue the practice of predatory lending in the automobile finance sector? Especially since many of the predatory lending policies related to the mortgage industry do not apply to lending in the automotive finance industry – courtesy of the large auto lobby.

To continue to be able to suck down money at little or no interest rates from the Federal Reserve and Treasury as a finance institution that would facilitate more 0% APR loans to artificially stimulate vehicle sales?

To allow General Motors to play with derivatives that securitize automobile loans in the secondary market?

Second, General Motors has indicated that it is about to reduce the government’s stake using an IPO – Initial Public Offering.

Is this AmeriCredit deal a way to sweeten the pot for the professional investors by buying a valuable asset before going public?

Is this a way to funnel additional funds to the unions in the hopes of major campaign support in the upcoming election cycles? Allowing the unions to obtain preferential stock at founder’s prices and then sell to the public at higher prices – pocketing a fortune and then kicking back campaign funds to  Obama and friendly Congressmen?

Or is this simply a way of holding on to the bailout money without returning it to the Treasury from whence it came?

According to published reports from Reuters, General Motors will pay for the purchase  of AmeriCredit in a cash transaction – using funds remaining from the corrupt Obama administration's $50 billion bailout in 2009. I say corrupt, because the Obama Administration forced secured senior debt holders to the back of the line in favor of the unions whose claims were mostly unsecured.

Bottom line …

I do not trust the government at a time when they are facing significant opposition in an upcoming election cycle and that any hope for the survival hinges on the massive campaign funding and voter support coming from the unions.

Since the Special Inspector General for TARP (Troubled Asset Relief Program) released a scathing report on the  involving the government’s incompetence in handling the automotive industry, can we even rely on what the Obama Administration and their fellow Congressional travelers are saying?  Especially since the Obamacons simply terminated thousands of jobs to prove their Marxist roots in dealing with the class struggle and “shared sacrifice.” (see Reference Links below)

Again, I strongly believe that any action by General Motors is suspect and designed to benefit the current Administration and the Congressional democrats at the expense of “we the people.” They have done little or nothing for America – so why should they start now?

-- steve

Reference Links:  

GM to buy AmeriCredit for $3.5 billion | Reuters

Factors Affecting the Decisions of General Motors and Chrysler to Reduce Their Dealership Networks | SigTARP

  • Ron Bloom, the head of Obama’s Presidential Task Force on the Auto Industry which re-structured the auto industry was not only a far-left liberal, but his previous job was as the special assistant to the President of the United Steel Workers.
  • Thousands of jobs were lost and families disrupted for no other reason that the Obama Administration wanted to hurt the “fat cats” at the automobile dealers at a time when union workers were suffering. In Obama’s words: “shared sacrifice.”

“More importantly, SIGTARP does not dispute that Government assistance was necessary to
prevent the failure of GM and Chrysler, and nothing in the audit suggests otherwise. Treasury’s letter seems to imply that Treasury was faced with the decision either to encourage the acceleration of dealership terminations substantially, as it did, or let the companies fail altogether. This is a false dilemma with no factual support: no one from Treasury, the manufacturers or from anywhere else indicated that implementing a smaller or more gradual dealership termination plan would have resulted in the cataclysmic scenario spelled out in Treasury’s response; indeed, when asked explicitly whether the Auto Team could have left the
dealerships out of the restructurings, Mr. Bloom, the current head of the Auto Team, confirmed that the Auto Team “could have left any one component [of the restructuring plan] alone,” but that doing so would have been inconsistent with the President’s mandate for “shared sacrifice.”

That the scale of terminations was not vital to the companies’ survival has since been further demonstrated by the fact that the companies have offered reinstatement to hundreds of dealerships without concerns that such reinstatements will threaten their viability.
In any event, Treasury’s criticism does not address SIGTARP’s lessons learned — that Treasury (a) should have taken every reasonable step to ensure that accelerating the dealership terminations was truly necessary for the long-term viability of the companies and (b) should have sufficiently considered whether the benefits to the companies from the accelerated terminations outweighed the costs to the economy that would result from potentially tens of thousands of accelerated job losses in the midst of the greatest recession in generations.”


“Nullius in verba.”-- take nobody's word for it!

“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw

“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”

“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS

"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius

“A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell

“Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar

“Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS