PROSECUTION OF BUSH ADMINISTRATION OFFICIALS A DOUBLE-EDGED SWORD?

Should members of Congress be emboldened to attempt the criminal prosecution of members of the Bush Administration regarding actions taken while defending America against her enemies, they would be wise to consider that the American people may also demand the investigation and prosecution of those sitting members of Congress whose family members have engaged in acts which were never disclosed and which may be considered to be prosecutable under the law. In addition to members of Congress who filed “amended” reports of actions which were not only unethical, but may have been criminal.

This is a Pandora's box which, once opened by the politicians, may not be shut in time to prevent both sides from embarrassment and incarceration.

One need only to remember that any public official, be they local, state or federal who takes something of value might be charged with bribery.

According to Fox News …

“Pelosi Open to Prosecution of Bush Administration Officials”

“House Speaker Nancy Pelosi is receptive to the idea of prosecuting some Bush administration officials, while letting others who are accused of misdeeds leave office without prosecution, she told Chris Wallace in an interview on ‘FOX News Sunday.’"

" ‘I think you look at each item and see what is a violation of the law and do we even have a right to ignore it,’ the California Democrat said. ‘And other things that are maybe time that is spent better looking to the future rather than to the past.’"

“Rep. John Conyers, chairman of the House Judiciary Committee, announced Friday he wants to set up a commission to look into whether the Bush administration broke the law by taking the nation to war against Iraq and instituting aggressive anti-terror initiatives. The Michigan Democrat called for an ‘independent criminal probe into whether any laws were broken in connection with these activities.’"

If Conyers had half a brain … he would realize that a replay of the news sources of the time could produce members of both sides of the aisle, as well as the foreign heads of state, parroting the same message about Saddam Hussein and Iraq. Case closed.

If Obama should attempt to re-politicalize the Department of Justice and other agencies, this could result in yet further criminal prosecutions brought against those who inappropriately applied political standards to the people’s business. 

Obama would be wise to step lightly …

“President-elect Barack Obama has not closed off the possibility of prosecutions, but hinted he does not favor them.”

Considering the President-elect’s past environment and associations, I would think that he would be sensitive to any prosecutions based on favoritism and special privilege.

" ‘I don't believe that anybody is above the law,’ he told ABC News a week ago. ‘On the other hand, I also have a belief that we need to look forward as opposed to looking backwards.’"

“Pelosi, during the interview in her ceremonial office, said there is merit in both arguments.”

"I don't think that Mr. Obama and Mr. Conyers are that far apart," she said. ‘There are different subjects and you treat them differently.’"

“She hinted that the law might compel Democrats to press forth on some prosecutions, even if they are politically unpopular, adding: ‘That's not up to us to say that doesn't matter anymore.’"

Hint to Madam Chairperson Pelosi …

Again, it might compel some Republicans to level corruption and other criminal charges on those Members of Congress and their families who received “special” assistance” in profiting from the war on Iraq. What about the House member who was found with $90,000 in his freezer? Or what about an investigation of Senator Christopher Dodd, the Chairman of the Senate Banking Committee, who allegedly received a mortgage loan at preferred rates from Angelo Mozilo of Countrywide Financial? Pelosi and others should know full well that corruption is bi-partisan and that misuse of federal agencies in the post-Nixon, post-Clinton, post Bush era is becoming increasingly problematical to the American public.

Unbridled hypocrisy …

" ‘We cannot let the politicizing of, for example, the Justice Department to go un-reviewed,’ she added. ‘I want to see the truth come forth.’"

Considering Bill Clinton, Janet Reno and matters like the Henry Cisneros Affair (See the Barrett Report), one can hardly believe that one can prosecute those who might have politicized the Justice Department without a review of the previous Clinton Administration; many members of which will be assuming high office.

“The Barrett Report is a 400 page report created by special prosecutor David Barrett. Initially tasked with investigating allegations of lying to the FBI against Henry Cisneros, Secretary of the U.S Department of Housing and Urban Development under U.S. President Bill Clinton, the investigation eventually delved into allegations that President Clinton had used the U.S. Department of Justice and the Internal Revenue Service as political tools against American citizens.”

What can YOU do?

Personally, I believe it is all just another attempt of one political party to demonize the other. Truth be known, both parties are replete with dirty politicians who have enough skeletons to fill Arlington Cemetery to overflowing. Therefore, these pronouncements and idle threats should be considered to be somewhat playing to the base.

We need to become aware of the inherent corruption in the campaign funding process and the influence of lawyer/lobbyists and other special interests in regard to existing and pending legislation.

As always, take care of yourself first. Be well and be safe.

-- steve

Quote of the Day: “If you want to be miserable, think about yourself, about what you want, what you like, what respect people ought to pay you and what people think of you.”    -- Charles Kingsley

A reminder from OneCitizenSpeaking.com: a large improvement can result from a small change…

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

Reference Links:

Pelosi Open to Prosecution of Bush Administration Officials | Political News - FOXNews.com

“Nullius in verba”-- take nobody's word for it!
"Acta non verba" -- actions not words

“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

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The new gay face of the democratic party?

The democratic party, being somewhat devoid of core principles and fixated on the moral equivalence between good and evil, has cobbled together a coalition of society’s fringe elements in order to achieve political power. Made possible because of the failure of the Republican party to stay faithful to its conservative roots – and the number of Republican politicians who have been outed as “hypocrites” for promoting honesty and family values; and then doing something quite different.

Gays seeking disproportionate power …

There is no doubt that gay activists are trying to wield a disproportionate amount of power in the democratic party to push their agenda.

First, to make gays (GLBTs) a protected class which offers them a platform where they can seemingly use the power of the state to challenge even the smallest of legitimate claims in daily life, especially in the workplace. One can not help wonder if “gay” will be the new “black” when it comes to hiring, firing and discipline? With people walking on eggshells to avoid even giving the appearance of impropriety.

Second, and even of more concern, is the revocation of the “don’t ask, don’t tell” policy in the military.

While we have no doubt that there are capable, honorable gays serving in today’s military, freely opening the door may introduce major problems that could consequently weaken the military. Problems involving a problematical reduction in experienced soldiers as older veterans fail to re-enlist. Problems with unit integrity. Problems with facilities and the need to recognize “special” requirements. Problems with medical treatment on the battlefield where HIV-positive soldiers might be encountered. And, of course, an erosion in military command and control based on cronyism and special interests. An erosion of the professionalism of our volunteer forces.

But then again, there is talk among democrats in reviving the draft – to make things fair! (Excepting of course, those who are rich, privileged or politically connected.)

How likely is one to see this agenda being promoted?

“Don't Ask, Don't Tell”

“Responding to average-people questions at Change.org, Robert Gibbs affirms Obama's determination to end the current policy governing gays in the military. ("Yes," he replies, when asked if Obama will overturn the ‘don't ask, don't tell’ system fashioned on the fly in Bill Clinton's first months.)”

“The question is when, exactly, Obama will be willing to wade into this thicket. Thus far the reporting on that front has been conflicting, but it seems like the memory of Clinton's agonizing 1993 experience, which spoiled his electoral honeymoon, has him holding off on the specifics for the time being.” <Source>

Consider H.R. 1246, the Military Readiness Enhancement Act (MREA),  championed by California Representative Ellen Tauscher which seems to have little or nothing to do with military readiness and everything to do with “gays.”

“To amend title 10, United States Code, to enhance the readiness of the Armed Forces by replacing the current policy concerning homosexuality in the Armed Forces, referred to as "Don't Ask, Don't Tell", with a policy of nondiscrimination on the basis of sexual orientation.” <Source>

Once again the democrats fall back on sentence parsing and Orwellian naming conventions.

Like their attempts to re-define the word marriage and to press the attack in the courts when a majority of legal citizens have voted to retain the traditional “one man, one woman” definition that promotes family unity and serves society well.

This is the party which says little or nothing about the tremendous societal disruption and burden placed on society by single-parent families as a result of glorifying non-traditional marriage and living arrangements.

Plan of attack …

Of course, considering the democrat’s  anti-Iraq stance and the number of anti-war and peace activists present in the democrat party, one must rightfully consider that this is just another avenue to weaken our military and promote the public policies of those who do not wish us well.

ODE TO THE FUTURE?

A reminder that Hollywood, San Francisco and New York are an atypical representative of our middle-America core values.

Watch Boy George sing “Yes We Can” tribute to Barack Obama …

The new face of the democratic party? 

Capture1-16-2009-12.25.25 PM Capture1-16-2009-12.25.44 PM
'Drug-crazed idiot' Boy George jailed for 15 months for chaining male escort to wall and beating him. <Source>

What can YOU do?

Tell your elected officials that pandering to any special interest should not be tolerated and those candidates and officials that engage in creating inappropriate legislation which weakens the United States military, economy and cultural norms will be sanctioned at the ballot box.

Regardless of their proclamation of an electoral “mandate,” almost half of the United State were willing to vote for a rather lame Republican candidate to preserve our traditional values. 

We are at a point of “weakness” and the tipping point for rational behavior in the United States Congress has been reached. Sudden moves to reform the system should be carefully scrutinized and then monitored lest unintended consequences have an adverse effect on our nation.

As for marriage, retain the traditional definition and make civil unions which convey equal rights and privileges the law of the land. As for gays in the military, do what is best for the military and unit cohesiveness. As for the draft, nobody has proved that the volunteer model has failed – and those in the National Guard were forewarned about the possibility of combat assignments.

There is much we can and should change: starting with our corrupt, inept and grossly incompetent politicians.

-- steve

Quote of the Day: “One ought never to turn one's back on a threatened danger and try to run away from it. If you do that, you will double the danger. But if you meet it promptly and without flinching, you will reduce the danger by half.” -- Sir Winston Churchill

A reminder from OneCitizenSpeaking.com: a large improvement can result from a small change…

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

Reference Links:

“Nullius in verba”-- take nobody's word for it!
"Acta non verba" -- actions not words

“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

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Special interests queue-up for disguised bailouts and special privileges ...

We are now seeing national companies attempting to overcome their failed business models and seek government funding of unsustainable programs.

Some like the automakers, could realize substantial savings by disintermediating  their  outmoded distribution network of dealers which have been pampered and protected for years by politicians who were the recipients of substantial campaign funds. By compressing the dealership network into regional distribution centers and enabling “manufacturer-direct pricing, the consumer would benefit greatly. Present-day dealers, many of whom sit upon valuable real estate or who are closing their doors, could still act as repair stations – only this time around with more competitive repair pricing and faster services. The days of waiting a full day for a simple repair at a dealership should come to an end. The focus will be on customer service and benefit rather than a “take it or leave” it business model which features predatory practices every bit as onerous as those found in mortgage lending.

So why are we not surprised …

So why are we not surprised when Sprint attempts to sell their outmoded and failing “push to talk” technology and attempt to carve out a “gatekeeper” profit for processing Internet traffic.

At one point in time, I was a Nextel fan and thought that the walkie-talkie features of a handheld mobile phone were “peachy keen.” As time went on, the devices appeared to become less attractive and the service less reliable. Finally pushing us over the edge and discarding our Nextel units in favor of Verizon phones.

According to Reuters …

Sprint pitches $2 billion emergency network to Obama

“Sprint Nextel Corp., the third biggest U.S. wireless company, wants the government to fund a $2 billion emergency network to make first responders better able to communicate during disasters.”

This is an admirable goal: multi-service interoperability. However, considering the costs of the dispatching, networking and delivery of classified and specialized information via a patchwork of local, state and government systems, one would assume that there is much, much more to this goal than claiming an ability to provide a turn-key system.

For those who want to perform a common-sense reality check, consider what is about to happen during the upcoming inauguration. Some cellular service might be blocked as a precaution against remote detonated explosive devices. Not to mention the sheer number of people who might be trying to connect to others, perhaps to upload high-bandwidth phone-based pictures, video and sound files.

Without a major disaster implementation plan, of which communications is of the utmost concern – but not the only concern, one needs to consider the problems experienced during hurricanes and earthquakes which impaired first-responder communications. Not to mention the freaky reception patterns in metal-shielded locations.

“The company, a major supplier of equipment including push-to-talk phones used by police and fire departments, pitched its 5-year plan to President-elect Barack Obama's transition team in a letter on January 6, which was made public on Friday”.

“A Sprint official described it as a ‘ready to deploy emergency communications system that can be programmed to be interoperable with existing public safety networks.’"

If this system is so great and advantageous, why are investors in Sprint stock not funding the venture as a pilot product whose effectiveness and efficiency can be gauged during an actual emergency? Or is this another “all or nothing” pitch which requires further “study” contracts, pilot projects and other incremental costs?

“Obama's transition team has sought ideas from industry to solve communications problems that surfaced during disasters like the September 11 attacks on the United States and Hurricane Katrina.”

Perhaps the answers should be filtered through the professionals who work for the Department of Homeland Security rather than given to politicians who are ill-equipped to read legislation they are sending to the President, and would be hard-pressed to understand the details of a complicated communication’s system.

The real pitch …

There is no doubt in my mind that telecommunications carriers compete on confusion and chaos, multiple-bundling schemes with an almost infinite combination of dates, prices and services which is designed to bamboozle the consumer into paying much more for a simple service offered by other carriers.

Everybody is getting “stimulus” or bailout funds, why not us?

“Sprint officials, who are also lobbying lawmakers, hope to include the proposal in the billions flagged for technology in the economic stimulus plan working its way through Congress.”

Calling “bullshit!”

“Sprint's plan calls for 100 satellite-based light trucks that would respond to emergencies, and 100,000 or more mobile handsets and equipment at up to 40 pre-selected sites.”

“The sites would allow for equipment to be shipped and arrive anywhere in the United States within four hours.”

Common sense tells me that  a four-hour over-the-road delivery of equipment at 60 miles per hour (unlikely in a disaster area) limits the range to 240-miles. Delivery of equipment by rail, aircraft and boats is far more difficult and complex. The four hour limit therefore is bullshit considering the number of sites and amount of equipment described in this report! Of course, the plan could rely on a fleet of military and state helicopters –- but four hours? One needs only to consider how long it takes to place water-dropping helicopters and other aircraft on scene in California.

While there might be ways to make this work, it is extremely unlikely in a wide-spread regional emergency.

Pre-staged equipment caches, unless well-maintained and continually tested, tend to deteriorate into obsolete technological junk extremely fast – especially as new technologies are deployed. There is no guarantee that the entire stockpile of costly equipment would not become worthless in a matter of a few short years.

Competition?

“Sprint has been struggling with market losses to AT&T Inc and Verizon Wireless, a venture between Verizon and Vodafone Group Plc.

“Motorola Inc developed and supplies handsets for Sprint's iDen network, which is often used by emergency workers.”

Single source suppliers using proprietary methodology is not the way I see the contracting process going. We are talking simpler, easier-to-use systems; not complex and fragile systems that require a confluence of good luck to operate under adverse conditions.

Whoops … look what these bastards are trying to sneak through … an end to network neutrality …

“A second Sprint proposal submitted to the transition team is for the Federal Communications Commission to look at re-regulating prices on telephone lines that route phone and Internet service.”

“Those lines are now controlled mainly by AT&T and Verizon, the remnants of the old Bell phone company monopoly that existed until 1984. Sprint says it spends one-third of the operating costs for its 60,000 cell sites to use the special access lines.”

Not only is this totally anti-competitive, but it would also insure a significant rate increase to the consumers and others who use these services.

Bottom line: in a time when foreign countries have better telephone and Internet networks than the United States and costs, which should have dropped long ago are increasing, we should not be subsidizing any company that cannot compete on its own – and without significant government subsidies.

Perhaps, as a cost-savings effort, we should demand that all government agencies re-verify those who are using mobile phones which are not necessary to their jobs. It has been reported than many cell phones have been issued to desk jockeys who have landlines and rarely work outside of their offices. Not to mention those who cross personal and professional message traffic on taxpayer-funded devices.

What can YOU do?

Just say NO!

Unless Sprint can make a compelling, competitive case for proven and demonstrable technology that will not be obsolete in the next few years; as well as providing matching investor funds – I say NO to a bailout of Sprint.

As for Sprint’s push for re-regulation – HELL NO! Anyone who pays a local or state utilitiy bill based on regulated tariffs knows that costs continually rise, services continually degrade and the regulated utilities continue to grease the political wheels.

Do not allow the common carriers to continue bribing politicians with campaign contributions when the politicians should be serving their constituents. Monitor campaign contributions (including those of lawyers, lobbyists, unions and public relations counsel) for disguised payments.

Emergency services are one thing: corruption and malfeasance in the contracting process is quite another.

- steve

Quote of the Day: “Details are the playground of the devil and his political representatives.” -- steve

A reminder from OneCitizenSpeaking.com: a large improvement can result from a small change…

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

Reference Links:

Sprint pitches $2 billion emergency network to Obama | Technology | Reuters

“Nullius in verba”-- take nobody's word for it!
"Acta non verba" -- actions not words

“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

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Are the Russians stepping up their propaganda war in America?

I was very much surprised to see a headline story on the Drudge Report announcing “Pravda: Earth on the Brink of an Ice Age...” What made this story somewhat unusual is that the story was originated by Pravda, a Russian publication with an historical link to the government and its propaganda apparatus.

Pravda was leading newspaper of the Soviet Union and an official organ of the Central Committee of the Communist Party between 1912 and 1991.

According to Pravda.Ru …

“At that time, a very serious split occurred in the editorial office. Over 90 percent of the journalists who had been working for Pravda until the coup d'etat of 1991 quit their jobs. They established their own version of the newspaper, which was then closed under government pressure.”

“These journalists had to take their fight to cyberspace, and the Internet newspaper PRAVDA On-Line was launched in January of 1999, the first Russian newspaper of its kind. We think that both the newly registered newspaper and PRAVDA On-Line (you are now on its server) have an equal moral right to continue the history of the newspaper that was closed by then-President Boris Yeltsin in August of 1991. The number of journalists that work in the head offices of both publications is comparable with the number of journalists who worked for Pravda at the time it was closed.”

“In spite of the fact that the journalists of both these publications are still in touch with each other, we have different conceptions about news about Russia and the world. The newspaper Pravda analyzes events from the point of view of the Party's interests, whereas PRAVDA On-line takes a pro-Russian approach to forming its policy.”

“Wouldn't you agree that this gives more diversity to the world?”

The link led to a well-designed American-style webpage that could have been published by any American newspaper.

Along with the features were items such as:

  • Russia: Conversation between President Medvedev and Gazprom CEO (relating to the current gas distribution crisis)
  • Opinion: Neo Warfare
  • Science: Earth on the Brink of an Ice Age
  • Society: Man Dismembers His Wife by Mistake
  • Business: Economic Manipulation as Political Strategy
  • World: The tower of Babel of the European left
  • Hotspots and Incidents: Israel, you are Serbia now
  • Sport: Dakar Argentina: Kamaz in front!
  • Photo Report: Brooke Berk demonstrates bikini
  • Photo Report: Cheerleaders: Healthy body and soul
  • Why God Didn't Have a Beginning?

A diversified mix of articles designed to capture the broadest possible audience. (Perhaps the New York and Los Angeles Times should take heed?)

In the “Breaking News” Section we find …

  • Israel launches massive military operation against Gaza Strip 
  • America chooses its future
  • Russia to retrieve its status of world's strongest superpower

Again, interesting subjects, except for the last item which is definitely speculative conjecture of a political nature and could be classified as propaganda.

Implicit dangers: But are there dangers hidden in the web pages or in the content?

In this day and age of Cyber-War, one can easily imagine the collection of non-public personal information from those who visit the website and wish to participate in online discussions. One can also appreciate the danger of replying to an online advertisement or link with credit card information. To note, Russia remains one of the hotbeds of criminality in the world and the technical expertise of their hackers is second to none. Cheap pirated software and pornography provide attractive lures to those seeking materials of this nature. All with the risk of computer system compromise.

And let us not forget the potential for subtle anti-American propaganda. This is not the heavy-handed obvious anti-American rhetoric of the past, these are carefully crafted and tested messages that are designed to introduce fear, uncertainty and doubt into discussions involving American politics and commercial operations.

Especially targeted at those far left liberals and others who already distrust and despise our nation and often believe that we are the instigators of much of the world’s problems. People who are unhappy with their lives, looking for social contacts and will accept alternative external solutions for their unhappiness.

The content is intriguing and interesting …

Make no mistake about it, the content is thoughtful and well written. The subject matter makes sense, especially if the audience member is predisposed to believing what is being written.

In the matter of anthropogenic (man made) global warming (AGW), the article’s information appears consistent with my beliefs and the science of the day.

“The AGW theory is based on data that is drawn from a ridiculously narrow span of time and it demonstrates a wanton disregard for the ‘big picture’ of long-term climate change. The data from paleoclimatology, including ice cores, sea sediments, geology, paleobotany and zoology, indicate that we are on the verge of entering another Ice Age, and the data also shows that severe and lasting climate change can occur within only a few years.”

“While concern over the dubious threat of Anthropogenic Global Warming continues to distract the attention of people throughout the world, the very real threat of the approaching and inevitable Ice Age, which will render large parts of the Northern Hemisphere uninhabitable, is being foolishly ignored.”

Weather (pun intended) or not  I believe the last part of the article pointing to the sudden possibility of serious global cooling is immaterial. But it does pose the question, why are the scientists who are modeling our global climate change patterns not perceiving this particular threat – or are they pursuing a “political” agenda in order to receive additional funding and recognition of their activities? And if this is true, what else might the government and its allied special interests be telling us?

As you can see, the process of introducing doubt into the geo-political conversation is extremely easy and unless one is trained in critical thinking and the is able to recognize subtle propaganda, it is possible for America’s enemies to wage a low-cost propaganda campaign using little more than attractive stories in an “alternative and recognized news source” on the web. 

But of course, the old saying “sometimes the paranoid are correct in their suspicions” is also true. The tagline on the website, "Pravda.ru forum. The place where truth hurts," simply makes me wonder whose truth is hurting.

What can YOU do?

Demand your local school system return to a curriculum which features the basics: reading, writing, arithmetic, history and critical thinking. Leaving the social activism featuring the far left liberal multiculturalism, diversity and political correctness for college-level political science classes. It is time we stop dumbing down our nation’s children and curtailing their growth by mainstreaming people who have language difficulties, discipline or other impairments into the classroom. Set aside language proficiency schools for those who need to acquire a working knowledge of English. Stop teaching subject matter classes in Spanish. Restore shop and craft curriculums for those who will not be going on to college and need to learn a useful trade in order to succeed and prosper.

Do not elect school boards that mix politics with education. Recall or prosecute those who waste funds on special interest infrastructure or divert funds away from the classroom. Demand that the administrator/teacher ratio be reduced and that teacher’s be required to take competency tests in their subject matter specialties.

Demand that union influence in the school systems be strictly curtailed – possibly using the funds collected from non-union employees in lieu of dues to be placed directly back into classroom programs without any additional administrative overhead.

Change local and state legislation to remove funding initiatives for education as the link between funds expenditures and the quality of education is tenuous at best.

As for accessing foreign websites, be very careful never to provide non-public personal information or make purchases using credit cards, replacement checks or other methods which can be used to drain your bank accounts or facilitate identity theft. Should you wish to purchase foreign goods, ask your credit card issuer for a one-time number which will facilitate your purchase.

Although much of the political threat comes from within, using our laws and regulations against us and collecting information using American subsidiaries, you can never be too careful when dealing directly with foreign powers.

-- steve


Quote of the Day: “He who laughs last has not yet heard the bad news.” -- Bertolt Brecht

A reminder from OneCitizenSpeaking.com: a large improvement can result from a small change…

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

Reference Links:

Earth on the Brink of Ice Age|Pravda.Ru

“Nullius in verba”-- take nobody's word for it!
"Acta non verba" -- actions not words

“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

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DEMOCRATS: THE ASSAULT ON FREEDOM BEGINS

Start with the democrats propensity to lie using Orwellian descriptions and definitions that bear little resemblance to reality. A democrat world where up is down, left is right, black is white, good is evil and most importantly freedom is government control.

Consider the Employee Free Choice Act of 2007 …

Imagine working your entire life building a business, risking your own money, time, effort – only to see your employees band together and using the force of the government, dictate pay, benefits and work rules. Adding an entire level of bureaucracy and reporting to your operation. Selecting and promoting employees based on seniority rather than merit and achievement.

And to add insult to injury, imagine that the government would be allowed to dictate the terms of the contract, valid for a period of two years, should the parties be unable to negotiate a successful contract.

According to CNSNews …

“Card-Check Bill Would Empower Federal Government to Dictate Labor Agreements”

“A provision in the controversial Employee Free Choice Act (EFCA) would allow federal arbitrators to dictate the terms of labor contracts – contracts that would be binding on both businesses and employees for two years.”

“The bill, which is heavily favored by labor unions and congressional Democrats, says that if a majority of workers wish to unionize, the employer must enter into collective bargaining with them within 10 days of their decision.”

Negotiating at the point of a gun …

“' ‘Not later than 10 days after receiving a written request for collective bargaining,’ the bills states, ‘the parties shall meet and commence to bargain collectively.’
If, after 90 days, no agreement is reached, the law empowers federal arbitrators to step in and facilitate negotiations between a business and the new union.”

“If after the expiration of the 90-day period beginning on the date on which bargaining is commenced  ... the parties have failed to reach an agreement, either party may notify the Federal Mediation and Conciliation Service of the existence of a dispute and request mediation.”

Binding for two years …

“ ‘If the government fails to negotiate a compromise within 30 days, the law allows it to dictate one, which will be binding for two years unless both parties agree to amend it.
“(If) the Service is not able to bring the parties to agreement by conciliation,’ the law says, ‘the arbitration panel shall render a decision settling the dispute and such decision shall be binding upon the parties for a period of 2 years, unless amended during such period by written consent of the parties.’”

No appeal …

“The EFCA would grant no opportunity to either employees or businesses to appeal the government’s decision, nor would it allow a newly organized union to vote on the deal.  The law also does not allow for unions to strike if they don’t like the government-mandated agreement.”

Not a contract …

“Any agreement the government dictates wouldn’t be a contract, said Heritage Foundation labor expert James Sherk, because contracts are negotiated between two parties, not dictated by governments.
“ ‘You can’t really call it a contract, because a contract is voluntarily agreed to by both parties,’ Sherk told CNSNews.com. ‘They will dictate to the company and the workers the conditions that would have been in a labor contract for the next two years.’
‘Whatever the arbitrator hands down is final. The workers lose all say, and the employers lose all say,’ Sherk added.”

Considered before and rejected …

“The bill, if it becomes law, would amend the National Labor Relations Act of 1935, a Depression-era law designed to give workers increased rights to unionize. A mandatory arbitration proposal was considered then, too, Sherk said, but was rejected on the grounds that it actually took power away from workers.”

Disputed by the union …

“A spokesman for the AFL-CIO, speaking on condition of anonymity, said that the new law would not allow the government to simply dictate terms to workers. Instead, any federal ruling would be based on previous negotiations – guaranteeing workers a contract.”

Contracts negotiated under better times and different conditions?

“It would certainly be a more complicated process. It would be based on the negotiations already taking place. It is trying to make the process more fair so that workers can be guaranteed that should they organize a union, they would have a contract.”

“Sherk argued that the mandatory arbitration proposal was worse than central planning, because it lacked a coherent process for dictating bargains.”

Functionaries?

“These arbitrators have no expertise. Their goal is to bring people together. They don’t have the economic expertise to write these contracts. They don’t know the working conditions. They don’t have the business background to write business conditions for these companies,” Sherk said.
“It’s got all the downsides of bureaucratic central planning without the upsides of at least having a coherent central plan.”

A reward for helping to elect Barack Obama …

The legislation has passed the House, but it has not passed the Senate. House Majority Leader Steny Hoyer (D-Md.) told Fox News’ Chris Wallace on Sunday that the EFCA would be passed early this year for President-elect Barack Obama to sign.
“I don’t know about the first month, but we’re going to pass it early,” Hoyer said.

Organized thuggery to support its leadership …

There is no secret that I believe most union leadership to be self-serving, corrupt and not really representing the best interests of the rank and file. That their continual push for higher wages, better benefits, reduced work, onerous and complex work rules – and their ability to hold companies hostage to their demands is an anti-freedom toxic socialist element being introduced into American life.

Where unions once served an employee protection purpose in an industrialized or agrarian society, we have now moved on to a technological society which, by definition, requires fewer unskilled workers and mandates professional-level qualifications. The need for collective bargaining in this atmosphere is counter-productive, especially when one rewards seniority over individual achievement.

Bottom line …

Whenever you find democrats and unions, you see companies in trouble, areas turned into decaying slums and, in general, reduced economic productivity.

I am greatly troubled by the idea of increasing union control over the mechanisms of government, lest we see widespread strikes like those occurring in Europe.

And to allow the unions to conduct recruiting drives without the use of secret ballots only increases the probability of coercive recruiting activities.

What can YOU do?

Tell your elected officials that you see no reason to add another level of bureaucratic inefficiency and costs to government and commerce in these difficult economic times – especially as a self-interested payback to those who helped elect the very same legislators who are attempting to pass this deleterious legislation.

Fight to return to a civil service system without public employee unions. Insure that no unions have access to critical government infrastructure which they might be prone to sabotage in periods of work-related disputes.

Fight against socialism and the collectivism which is rapidly destroying our nation in favor of the individualism that made our America great.

Take care of yourself and insure that you continue to develop salable skills which will allow you to prosper in both good time and bad.

Be well and be safe.

-- steve

Quote of the day:  “What luck for rulers that men do not think.” -- Adolf Hitler

A reminder from OneCitizenSpeaking.com: a large improvement can result from a small change…

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

Businessmen: to see the legislative perpetrators who would deny your freedom in running your own business …

Continue reading "DEMOCRATS: THE ASSAULT ON FREEDOM BEGINS" »

“Nullius in verba”-- take nobody's word for it!
"Acta non verba" -- actions not words

“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

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CLINTON's THIRD TERM: PANETTA FOR CIA?

One would assume that the first criteria for selecting the head of any United States intelligence agency would be their desire to uphold the Constitution and protect the United States from its enemies, both foreign and domestic ... regardless of political party and partisanship.

That the second criteria would be experience in intelligence matters.

And that the third criteria might be that the person not be a lawyer who might fail to distinguish between prosecuting our enemies covertly in a manner that may be permissible in wartime, but whose actions, should they be discovered, might not play well in a federal court designed for civilians.

I might add, a person of action and proven decision-making ability who will not fail this nation in a time of crisis -- with endless waffling as has been alleged regarding National Security Advisor Samuel "the burglar" Berger when he ostensibly had a chance to order the killing of  Osama bin Laden.

So why was Leon Panetta chosen?

Capture2009-01-05-1.21.18 PM

The Denver Post is reporting ...

Two Democratic officials say President-elect Barack Obama has chosen former Clinton White House chief of staff Leon Panetta to run the CIA. Panetta was a surprise pick for the post, with no experience in the intelligence world. An Obama transition official and another Democrat disclosed his nomination on a condition of anonymity since it was not yet public.

"Panetta was director of the Office of Management and Budget and a longtime congressman from California."

"He served on the Iraq Study Group, a bipartisan panel that released a report at the end of 2006 with dozens of recommendations for the reversing course in the Iraq war."

"Panetta currently directs with his wife Sylvia the Leon & Sylvia Panetta Institute for Public Policy, based at California State University, Monterey Bay a university he helped establish on the site of the former U.S. Army base, Fort Ord."

There is no doubt he is a hyper-partisan liberal ...

While Panetta is a very bright, articulate and pleasant person, he appears to by a hyper-partisan defender of the Clintons and is associated with a far-left liberal San Francisco-area educational institutions, California State University -- second in radicalism to the University of California, Berkeley.

In actuality, Panetta is an intellectual elitist -- only more laid back than his Harvard, Princeton and North Eastern liberal buddies.

He appears to be an honorable man ...

Other than his status as a hyper-partisan Clintonista, Panetta seems to be an OK guy and might just prove to be good choice -- provided he can overcome his politics and lawyerly training to concentrate on the protection of the United States from our enemies -- some of which may turn out to be Washington political leaders and bureaucrats.

However, the way the political landscape is shaping up tends to make me believe that we are now entering Clinton's Third Term and a final opportunity to erase that famous stain from the Presidential escutcheon.

-- steve

Reference Links:

Obama picks Leon Panetta to head CIA - The Denver Post

“Nullius in verba”-- take nobody's word for it!
"Acta non verba" -- actions not words

“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

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ECONOMIC STIMULUS: RUSHING FORWARD TO DISASTER

Wrong from day one?

I do not even know what is contained in President-elect Barack Obama’s stimulus package and I know that we are rushing toward another Bush-style fiscal disaster.

One, according to Nancy Pelosi, every effort will be made to get the broad guidelines from Obama’s economic advisers so that the democrats can begin crafting the language of the bill as soon as possible. According to Pelosi and members of the Obama contingent, it is desired that this legislation be signed into law as soon as practical after Obama’s swearing in ceremony.

Two, it is unlikely that this bill is going to be crafted with a bi-partisan team and will most likely be drafted in secret.

Three, it is unlikely that this bill will go through the committee process as does most other legislation. This shortens the time that legislators have to re-think and re-work the actual language of the legislation.

Four, it is likely to be presented to the Senate and the House as a fait accompli, with little time for legislators to read and really study the impact of the legislation. 

Five, the legislation is likely to contain broad-brush concepts and ideas rather than specific details regarding implementation, including financial controls,  reporting methods and deadlines.  But most of all, I am willing to bet that there are no significant penalties for missing reporting deadlines and actually conforming to the legislative guidelines.

Six, it is likely that there will be “special interest” accommodations for the unions and others who have supported the democrat push towards the presidency. These accommodations may not be blatant, but they will be in the form of requiring “union wage scales” rather than “prevailing wages” when letting contracts. It is likely that these conditions will come in the second round of implementing legislation, technical corrections or the rules and regulations promoted by democrat-led Agencies.

And seven, any outcome will be hailed as a great success as the politicos will claim to have “averted a financial major crisis,” or moderated the “Bush-caused” financial crisis.

“Trust me” legislation …

How do I know what will happen before it happens? Rest assured, I am not a psychic with a crystal ball, just someone who has observed over the years what politicians tend to produce under “emergency” conditions.

Or more recently, watching the Republicans completely cave in to a so-called recovery package that was larded with democrat pork to insure passage, had absolutely no controls or penalties for non-compliance; and worst of all, ceded enormous power to the Treasury Secretary with little or no accountability. The very essence of “trust me” legislation. Only to subsequently find that the Treasury Secretary admitted that the program, as originally envisioned, did not work and was seeking to re-purpose the remaining available funds.

Even the amount of the recovery bill, $700 BILLION, was a wild-eyed estimate with absolutely no basis in fact. And if one really counts the monies disbursed by the Treasury Department and other government agencies, added to those funds disbursed by the Federal Reserve and guaranteed by the government –- we are already in the TRILLIONS.  Or as they say on Wall Street where so much of the money went – BILLIONS are the new MILLIONS.

Why I am not comfortable with an unchallenged democrat proposal …

Considering the corruption and malfeasance that has swirled around democrat-controlled cities and states, I am worried that the pervasive culture of corruption and special interest deals will override any public interest.

One need only look at the current scandals involving democrat fundraising, possibly even that linked to Barack Obama, to know that democrats and money do not mix without stringent oversight – and even then they often manage to corrupt the system.

Too little time …

According to the Washington Post …

Sources said Obama and Pelosi will discuss the scope and timing of the economic recovery package, which Obama has said will be his first priority upon being sworn into office. Pelosi has said her goal is to have the legislation on the new president's desk and ready to be signed on Jan. 20.

Assuming work starts on legislation when the Congress convenes on January 5th, there is not enough time to correctly draft, debate and codify such massive legislation. 

Too much money …

“But that schedule appears increasingly likely to slip, as Republicans and conservative Democrats are raising concerns about the impact on the federal deficit of spending hundreds of billions on an array of projects with little vetting by Congress. Lawmakers now expect a spending package of between $675 billion and $775 billion.”

One must ask, another number pulled out of thin air – with a tolerance of $100 BILLION dollars? These are the type guesstimates which produce very rich special interests and corrupt politicians. 

'The timeline is even worse than previously thought …

“And a top congressional aide said yesterday that Democratic leaders in the House are still waiting for a detailed proposal to be delivered by Obama's economic advisers before lawmakers can begin the process of turning it into legislation.”

“Even so, congressional Democrats are anxious to get the process started so that a vote can take place in the House as early as the week of Jan. 12. Pelosi announced yesterday that the first hearing on the plan will take place Wednesday.”

We feel the need for speed …

“In a letter to Democratic House members, she wrote that the hearing will focus on ‘the need to act with deliberate speed to safeguard as many as three million jobs by making needed investments in infrastructure, alternative energy, science and other emerging sectors and providing middle-class tax cuts to help make work pay.’"

It’s not what it seems …

“Among those scheduled to testify at a series of hearings involving several committees are Mark Zandi of Moodys.com, Harvard University professor and former labor secretary Robert Reich, Harvard economist Martin Feldstein, MIT professor Maria T. Zuber and others.”

First, the people set to testify are all well-credentialed with a liberal leftist bent.

Let’s see what Martin Feldstein had to say in the Wall Street Journal on November 8, 2008 …

“More than 12 million homeowners now have mortgage debt that exceeds the value of their homes. These negative-equity homeowners have an incentive to default because mortgages are generally ‘no recourse’ loans. That means creditors can take the property if the individual defaults, but cannot take other assets or income to make up the difference between the unpaid loan balance and the lower value of the house. As a result, mortgage default rates are now rising rapidly and are expected to go much higher.”

“The no-recourse mortgage is virtually unique to the United States. That's why falling house prices in Europe do not trigger defaults. The creditors' ability to go beyond the house to other assets or even future salary is a deterrent.”

“In an earlier article on this page I proposed a plan to prevent declines of house prices back to the pre-bubble level from pushing current positive-equity homeowners into the negative-equity group. The essential feature of that plan is to replace 20% of the homeowner's existing mortgage with a separate, full-recourse loan from the government. That ‘mortgage replacement loan’ would have a very attractive, low interest rate. Because it would be separate from the mortgage and would have full recourse, it would establish an important firewall. Even if house prices fall another 20%, all mortgages would still have positive equity. The mortgage-replacement loan would involve no actual government spending and therefore no increase in the budget deficit.”

“The key to preventing further defaults and foreclosures among current negative-equity homeowners is to shift those mortgages into loans with full recourse, allowing the creditor to take other property or a fraction of wages. But the offer of a low-interest-rate loan is not enough to induce a homeowner with substantial negative equity to forego the opportunity to default and escape the existing debt. Substituting a full-recourse loan requires the inducement of a substantial write-down in the outstanding loan balance. Creditors have an incentive to accept some write-down in exchange for the much greater security of a full-recourse loan. The government can bridge the gap between the maximum write-down that the creditor would accept and the minimum write-down that the homeowner requires to give up his current right to walk away from his debt.” <Source>

Danger, Danger

You do not need to be a genius to see that old Marty is doing a major favor for Wall Street. Precisely the same type of government favor which permits the credit card companies to change usurious rates far in excess of the cost of capital and which push consumers towards insolvency at a faster and faster rate.  The type of favor which caused the re-jiggering of the current bankruptcy law to make it harder to walk away from credit card debt. Ostensibly to prevent scofflaws from stealing from the banking system – although there is overwhelming proof that most people declaring bankruptcy were forced to do so by overwhelming medical bills, loss of employment, and let us not forget the crushing burden of usurious credit card rates.

Here Marty wants to insure that you give your current lender the right to seize your car and other assets in case of a default – even your future earnings. All for a government-sponsored loan modification program which will be designed to trap those who really do not understand the game being played.

As for Robert Reich …

Reich is an extremely bright, well-credentialed liberal leftist who never met a union he didn’t like. As Clinton’s labor secretary, he advocated and implemented  social programs such as the Family and Medical Leave Act, increasing the minimum wage (which mostly affects new entrants to the job market, the unskilled and illegal aliens), successfully lobbied to pass the Pension Protection Act and the School-to-Work Jobs Act, and launched a number of job training programs. At the same time, he lobbied Clinton to address bigger societal issues, and pushed for improvement of conditions for those in poverty. Reich is a Clintonista, even dating Hillary Clinton in College. <Source>

And the others …

Moody’s is one of the ratings agencies who allegedly got it all wrong and permitted securities which were based on subprime and fraudulent mortgages to be rated triple-A thus making them into “investment grade” securities that were gobbled up by pension funds, insurance companies, mutual funds – to the detriment of the entire financial community and your savings and retirement funds.

Zuber is a well-credentialed scientist – likely to be one of the point people on global warming legislation which will produce the next set of Wall Street billionaires as they create and trade “climate-based” derivatives much as they did “mortgage-based” derivatives.

The first hearings that are likely to take place are more a media event than a substantive inquiry into legislative policies.

The first scheduled hearing on the new recovery plan is before the Steering & Policy Committee, a panel that lacks direct jurisdiction over the new spending bill. This is Nancy Pelosi’s stage – nothing less and nothing more.

Senate firewall?

Standing between the House of Representatives and President Obama is the United States Senate. As currently constituted, even with the possibility of Al Franken being the Senator from Minnesota, the democrats are 3 votes from obtaining a veto-proof majority – so that the Senate Republicans, provided they rediscover their conservative mandate and guts, can serve as a moderating force in preventing ill-crafted legislation. 

The media campaign will commence …

“Obama aides said the president-elect and his team will help make an all-out push to convince Americans that the government must spend almost $1 trillion to create jobs, provide cash for spending and shore up the finances of the state governments.”

Broad strokes for privileged folks …

“Obama aides and congressional sources have said the package under development is likely to contain three broad categories: infrastructure investment, tax breaks and direct aid to states.”

Again, we face the danger clearly demonstrated by Treasury Secretary Paulson …

“Congressional aides said all the specifics of the infrastructure spending are unlikely to be spelled out in the legislation. Instead, the goal will be to provide formulas that allow states to choose projects that fit a series of broad principles laid out by the president-elect and Congress.”

A blind man can see what is about to happen at the state level. Perhaps I should remind you that many states and municipalities used voter-designated funds to purchase infrastructure items involving transportation assets – which they then sold off to investors and leased back the assets to provide service to the public. The money they received from the sale was no longer restricted and could be used for any purpose imagined by the corrupt politicians and their pointy-head advisors. We probably would have never known about this potentially illegal maneuver (although nobody will face punishment) had it not been that the revenue stream to lease the assets back was guaranteed by the insurance giant AIG – of which the United States owns 80% or more.

Tax cuts for some …

“The tax cuts being discussed are focused on reductions in payroll taxes, a top congressional aide said.”

Small businesses run by people using sole proprietorships are unlikely to see any tax reduction as they do not have payroll taxes – they pay self-employment taxes which may be unaffected. And one can hardly wait to see what earnings caps will be placed on these so-called benefits.

The proper perspective would have you remember that they are not giving the people anything – they are simply taking less of our money to spend.

“Once adopted, workers would see more money in their paychecks every week, leading -- officials hope -- to increased consumer spending.”

It is often cited that the problem with today’s consumer is that they are not saving enough – for a rainy day or retirement. But does anybody notice the irony of a government which wants to encourage spending instead of saving. When our nation turned from an industrial economy to a consumer economy, it became inevitable that we needed to spend more-and-more to keep the economy growing. Perhaps we should encourage re-industrialization and less outsourcing to grow the economy rather than simply allowing consumers to spend their government-inflated dollars to foster the illusion of economic growth. 

“The aid to states is likely to come in the form of payments that could help meet the growing costs of Medicaid spending.”

Perhaps if we reduced the medical burden imposed by illegal aliens, we would have much lower costs. Oh, what was I thinking: the democrats want benefits to non-citizens to prove how companionate and understanding they are; as they continue to foster waste, fraud and corruption in government-run programs. 

Bottom line: as with all government legislation the devil is in the details – of which we are privy to damn few.

What can YOU do?

Demand that you elected officials implement spending caps, frequent and transparent reporting and penalties for not achieving stated objectives.

Demand that your local and state governments spend the money for projects which produce results for the smallest amount possible. Probably unlikely with inflated union wages and benefits.

Watch how politicians handle the taxpayer’s money and be prepared to vote them out of office as soon as possible.

We need to take a stand somewhere – and this is as good a time as ever.

Be well and be safe.

-- steve

Quote of the Day: “If all economists were laid end to end, they would not reach a conclusion.”  -- George Bernard Shaw

A reminder from OneCitizenSpeaking.com: a large improvement can result from a small change…

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

Reference Links:

Obama, Pelosi to Discuss Scope of Economic Package - washingtonpost.com

“Nullius in verba”-- take nobody's word for it!
"Acta non verba" -- actions not words

“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

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Is Treasury Secretary Paulson indirectly blaming Alan Greenspan for the credit crisis?

Artificially low rates …

We have long maintained that the current credit crisis had its roots in Alan Greenspan’s decision to keep the Federal Funds rate artificially low as a partial solution to the bursting of the “dot com” bubble; where “irrational exuberance” led to wild and speculative investing in companies which had no financial future, burned through prodigious amounts of money and existed solely based on their “story” of potential value.

These artificially low rates led the global pool of capital to seek other safe and sound investments with yields higher than the one percent which was being offered by the Fed.

Based on historical statistical models, the United States mortgage market was the next safest thing. And since investors did not want to be burdened with the hassle of collecting individual mortgage payments, dealing with late payments and processing foreclosures, the mortgage backed security was used as the investment vehicle of choice. These securities simply pooled mortgages with simple characteristics (rate, maturity date, type, etc.) into a security where investors would be able to earn the stated rate without dealing with the mechanics of the mortgages themselves.

Unfortunately, the mortgage market was extremely limited to the number of creditworthy borrowers and was far smaller than the global pool of capital clamoring to invest in these higher yields.

Where it all went wrong …

There can a time when all of the creditworthy borrowers had the mortgages they wanted and the marketplace for new mortgages was drying up. With the global capital pool clamoring for investments, the Wizards of Wall Street and their rocket scientists who served as financial engineers proposed a solution. Let’s simply enlarge the marketplace to include borrowers with lesser credit and hedge away the risk using repurchase agreements (forcing the originators to take back non-performing loans), an credit default swaps to provide a measure of insurance to protect yields against the possibility of foreclosure.

The big Assumption …

The trick in making these subprime and Alt-A loans from borrowers with credit impairments suitable for investors was convincing the ratings agencies that these less-than-perfect mortgages that were collateralizing these securities were, in combination with the hedges, the equivalent to triple-A rated (investment grade) securities. Thus the pension funds, mutual funds, banks and others who were precluded from investing in non-investment grade securities now had a higher yield investment product they could legally purchase.

Again, as the pool of acceptable mortgages continued to dry up, underwriting standards were continually lowered until they reached the point of so-called “NINJA”  liar loans where you needed to only state your income, employment and assets – with no verifications necessary.  At this point in time, the possibility for fraud was magnified by greed.

Sensing that the mortgage availability pool was drying up, the Wall Street Wizards and their rocket scientists created more exotic investments. Pooling pools of mortgages. And, in some cases, devising “synthetic” investments which only mirrored the investment characteristics of mortgage pools. In essence, the ran the mortgage documents through a shredder and continued to sell smaller and smaller strips of the paper.

The assumption that the statistical models of foreclosure were valid were no longer accurate. Historically, the data did not allow for the prevalence of continual re-financing activity to mask near defaults, there were no secondary sources of credit as with the recently-invented HELOC (Home Equity Line of Credit) and no one anticipated a failure of the credit scoring models based on the borrower’s previous credit history. The model failed because each time a borrower re-financed, the previous loan was marked “satisfied in full” and added to the borrower’s credit rating. If the borrower chose to pay off a crushing credit card debt using a mortgage, the records likewise indicated that their credit was clear and they had additional borrowing power.

Everything worked well until the real estate market downturn …

Everything was going well as the sands under the foundation were shifting. The real estate market began a downturn meaning that appraisals no longer supported the larger loans that were needed to re-fi distressed borrowers. Without these loans to keep the borrower afloat in a sea of debt, foreclosures mounted. Thus putting pressure on mortgage pools which could then not continue to pay investors the agreed upon yield. Thus investors began backing out of the marketplace by redeeming their portion of the investment pools and deciding not to re-invest.

The Coup de grâce …

In their infinite wisdom, financial institutions investing in these mortgage, decided to leverage their returns by using borrowed funds to increase their yields. In some cases using 30-to-1 and even 100-to-1 leverage rations.

For the purposes of illustration: assume you are an investor with $1 million dollars of seed capital. You now borrow $4 million dollars from another financial institution and then use the combined $5 million to purchase $20 million dollars in securities; which you then use as collateral to purchase $100 million in other securities. Considering that you have a well-respected name in finance and a healthy-appearing balance sheet – and your purchases are all rated “investment grade,” what could possibly go wrong?

Using this simplified model, let us assume that the market declined 5% which produced a loss of $5 million dollars on your original investment. Technically you are now insolvent since your $1 million in equity capital has been wiped out. And you still owe the $4 million in borrowed money plus the purchase price of the collateralized securities.

But because of the accounting system that was used, you could hide these losses from shareholders, investors, counterparties and the regulators in “off the balance sheet” accounts – nobody could see the building disaster. Accounting was “notational” where you only were required to pay the interest rate differences – not the entire amount.

Under this system, you could continue to roll the dice once again to try and make yourself whole. The very essence of gambling. The smart people knew this was gambling as they had a law crafted to preclude the usage of state gambling laws to restrict securities manipulation.

The downward spiral …

With mortgages defaulting, investors refusing to invest more short term money in mortgage-related security pools, things looked bad and were growing worse by the minute. Until the media discovered that many of the credit default swaps which were used to hedge these mortgage pools and turn them into investment grade securities could not possibly satisfy all of the claims that would be presented. Companies who were making money hand-over-first issuing these CDS guarantees based on their balance sheets and reputations did little to insure that they maintained actuarially sound reserves and could actually weather a downturn in the mortgage securities market.

Which leads us to the Federal Reserve and the Treasury Department – as well as the world’s central banks – pumping in TRILLIONS of dollars to stabilize the entire financial system in this cataclysmic disaster.

Enter Henry Paulson, Treasury Secretary …

Let us now see what Treasury Secretary Henry Paulson has to say about the seeds of the crisis. Paulson, you remember, was the one who picked the $700 BILLION bailout number out of thin air because it sounded right, spent about half the money before deciding the plan was not working and then returned for the remaining funds saying he wanted to try something else. All amid a background in which the Treasury Department refuses to reveal how the funds were actually used by the recipient financial institutions and others eligible for the TARP (Troubled Asset Relief Program) funding.

According to the London Financial Times …

“Paulson says crisis sown by imbalance”

“Global economic imbalances helped to foster the credit crisis by pushing down global interest rates and driving investors towards riskier assets, outgoing US Treasury Secretary Hank Paulson told the Financial Times.”

“In a valedictory interview, Mr Paulson cast the crisis as partly the result of a collective failure to come to terms with the way the rise of emerging markets was reshaping the global financial system. These imbalances – arising from differences in the inclinations of different nations to save and invest – are reflected in large current account deficits and surpluses around the world.”

“The US Treasury Secretary said that in the years leading up to the crisis, super-abundant savings from fast-growing emerging nations such as China and oil exporters – at a time of low inflation and booming trade and capital flows – put downward pressure on yields and risk spreads everywhere.”

So far we have the rapidly expanding global pool of capital and the search for acceptable yields.

Diffusion of blame and responsibility?

“This, he said, laid the seeds of a global credit bubble that extended far beyond the US sub-prime mortgage market and has now burst with devastating consequences worldwide.”

It’s getting murky.

“Excesses . . . built up for a long time, [with] investors looking for yield, mis-pricing risk,” he said. “It could take different forms. For some of the European banks it was eastern Europe. Spain and the UK were much more like the US with housing being the biggest bubble. With Japan it may be banks continuing to invest in equities.”

Murkier …

“This argument – already advanced by a number of economists and largely endorsed by Federal Reserve chairman Ben Bernanke – suggests that the roots of the crisis do not simply lie in failures within the financial system.”

Impenetrable blackness!

The smartest economists, working for some of the most prestigious financial firms, couldn’t have foreseen, and thus prevented the problem. It is only because of the 20-20 clarity of hindsight than some of these economists guessed right about the capital markets and are now being hailed as financial“gurus” while the others are being denounced as “goats.”

Let us pause for a moment and consider the economist employed by the National Association of Realtors. Here was an economist who published a book “The Rules for Growing Rich: Making Money in the New Information Economy” which appeared in June, 2000 just when the dot com bubble was bursting.

Adding insult to injury, he came out with another book “Are You Missing the Real Estate Boom” in February, 2005 and one year later in February, 2006 re-titled the book “Why the Real Estate Boom Will Not Bust—And How You Can Profit from It” just months before the real estate bubble burst.

And this was a well-respected economist who served as the chief Economist for the National Association of Realtors and their spokesman on economic forecasts, interest rates, home sales, mortgage rates, as well as other policy issues and trends affecting the United States real estate industry. <Source>

So why should we believe the economists who are now pointing their fingers in another direction – away from the Fed, government regulators and the financial community?

Had the Wall Street Wizards not concocted their derivatives-based schemes to satisfy the burgeoning demands for adequate yields by the enlarging capital pool – or had the regulators disallowed “off balance sheet” accounting and cracked-down on predatory lending practices by originators who would say or do anything to generate the mortgages Wall Street demanded, this might have not happened.

But the real criminals in this tale of woe were the greedy bastards who disregarded their fiduciary responsibilities to their investors and used outsized leverage to place their financial institutions at risk – many doing so for little more than their bonuses which ranged from tens of millions to hundreds of millions of dollars.

Paulson finally gets it right …

“It also implies that avoiding crises in future will require global macroeconomic co-operation as well as better financial regulation and risk-management.”

And to answer our own question: Paulson does not directly cite Greenspan, the Federal Reserve or Wall Street whence he comes … as he points the finger at the “global system.” In essence, diffusing responsibility and giving the tax-paying citizens of the United States the finger.

What can YOU do?

It is a new age when you cannot trust the government to provide a level playing field as they pander to the financial community’s special interests. Likewise, you cannot trust some of the world’s major firms – who may have significant, and as yet undisclosed, financial problems. Follow the old Better Business Bureau guideline: “Investigate Before YOU Invest.”

For those of you who are in financial difficulty, weigh your options carefully and seek professional advice from someone who will act in your best interest under a fiduciary responsibility agreement. You cannot simply trust your lender, servicer, those who are selling re-finance schemes or pre-packaged bankruptcies. Do not fall prey to “voluntary” mitigation programs which are designed to milk your remaining funds before throwing you to the wolves. Watch carefully, that you do not accept any mitigation that extends your liabilities beyond your home to your other assets or even your future earnings as now being proposed by Obama’s appointees.

Do not invest in things you do not understand like derivative contracts. Do not invest with companies simply because of their branding – look what has happened to some of the most respectable names in the financial world. Stay within the limits of  government-backed programs such as FDIC which is a direct call on government funds. Do not believe the supplemental insurance being offered by brokerages and others – consider AIG, one of the largest insurance companies in the world – stay within fundamental coverage limits.

Always consider risk vs. reward. And don’t forget to factor in inflation.

Be well and be safe.

-- steve

Quote of the day: “Reading is to the mind what exercise is to the body.” - Sir Richard Steele

A reminder from OneCitizenSpeaking.com: a large improvement can result from a small change…

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

Reference Links:

FT.com / US - Paulson says crisis sown by imbalance

“Nullius in verba”-- take nobody's word for it!
"Acta non verba" -- actions not words

“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

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Attention Liberals: Does this count as gun violence that should override the Second Amendment?

Liberals who advocate gun control over crime control often misuse gun statistics, lumping together suicides, attempted suicides, accidents, criminals and stupid people who aim guns at police.

So I ask you, does this thug’s attempt at suicide count for an at-home gun incident involving a child?

 

In this Thursday, Sept. 27, 2007 picture, Mychal Bell, one of the Jena Six, 

According to the Associated Press …

Lawyer: Jena Six teen shot himself out of despair

“One of the central figures in the 2007 Jena Six civil rights case never gave up pursuing his football career, even after his well-publicized run-ins with the law. Mychal Bell, an 18-year-old high school running back, clung to the hope that he could earn a college football scholarship. Then came another legal scrape this Christmas Eve.”

“After news broke of his arrest on a shoplifting charge, Bell shot himself in the chest Monday with a .22-caliber handgun. He remained hospitalized Tuesday but police said his chest wound was not life-threatening.”

" ‘When it was broadcast that he was charged with shoplifting he just felt that the whole year had been wasted and that he had worked all of that time for nothing,’ said Louis Scott, who represented Bell in the case where Bell and five other black teenagers were charged in the 2006 beating of a white classmate.”

“Bell's grandmother, Rosie Simmons, and mother, Melissa Bell, told police that ‘Mychal had made comments over the past two days that, because of the current media attention he had because of the shoplifting arrest, he didn't feel like he could live anymore,’ Monroe Police Lt. Jeff Harris said, reading from a police report.”

“Bell and the other members of the ‘Jena Six’ once faced attempted murder charges in the beating at Jena High School, in north central Louisiana's Lasalle Parish. The charges for all the defendants were eventually reduced. But the severity of the original charges brought widespread criticism and eventually led more than 20,000 people to converge in September 2007 on the tiny town of Jena for a major civil rights march.”

“After being sentenced to 18 months following his guilty plea to juvenile charges, Bell moved from Jena to Monroe, where he was in foster care. He was released from state supervision on Dec. 4, said Bill Furlow, a spokesman for Reed Walters, the district attorney for LaSalle Parish.”

On the face of it, this seems like a decent kid who has encountered one of life’s rough patches …

“A football star at Jena High until the Barker beating, Bell had hoped to play for Monroe's Carroll High School, where he is on track to graduate in the spring. But the Louisiana High School Athletic Association wouldn't grant him a fifth year of eligibility to play. Bell had spent 10 months in prison awaiting trial after his 2006 arrest in the beating case.”

" ‘He had kept his grades up and he had worked out the whole year even though he couldn't play. He had dealt with the fact that the state athletic association would not let him play high school ball,’ Bell's lawyer, Louis Scott said Tuesday.”

“It was unclear whether his dreams of a college football career were realistic. According to Scott, family members believed Bell was having encouraging discussions with the University of Louisiana-Monroe. School spokesman Adam Prendergast declined comment. A message was left Tuesday for the school's director of football operations, Peter Martin.”

“Police said Bell's Christmas Eve arrest came after he allegedly tried to steal several shirts and a pair of jeans from a department store and fled when a security guard and off-duty police officer tried to detain him. After they found him hiding under a car, Bell ‘swung his arms wildly’ and one of his elbows struck the security guard with a glancing blow, according to a police report. He was freed on $1,300 bond.”

Life happens …

It is unfortunate for this individual to consider suicide as his only option and does point to the failings of his parents, teachers, classmates and friends … or even a physiological or emotional problem.

But why I, a law-abiding citizen, should be punished and have my Second Amendment rights restricted based on the misuse of statistics created from incidents like this troubles me greatly.

What can YOU do?

Recognize there is a great difference between crime control and gun control. Also recognize that if all weapons were magically banned – only those who do not recognize the law (e.g. criminals and others) would be able to openly terrorize law-abiding citizens.

Learn what it is to properly use a weapon. Take a weapons class from an approved and sanctioned instructor. While you may never handle a weapon or shoot someone in self-defense, you will find that most people who own weapons are not raving loons, survivalists or military wannabes.

Be well and Be safe.

-- steve

Quote of the day:  “There is always a well-known solution to every human problem--neat, plausible, and wrong.”  - H. L. Mencken

A reminder from OneCitizenSpeaking.com: a large improvement can result from a small change…

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

Reference Links:

Lawyer: Jena Six teen shot himself out of despair - Yahoo! News

“Nullius in verba”-- take nobody's word for it!
"Acta non verba" -- actions not words

“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

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WHY BORDER PROTECTION FIRST IS OF THE UTMOST IMPORTANCE; HEZBOLLAH IS HERE!

Another attempt at immigration reform without border protection must be stopped at all costs …

The unions and the illegal alien lobby will actively petition Barack Obama and members of his Administration to put forth another attempt at comprehensive immigration reform. Especially since border-state and Arizona Governor Janet Napolitano  became President-elect Barack Obama's choice to head the Department of Homeland Security.

President Bush, even though he often portrayed himself as a law and order advocate, pushed hard for the legalization of illegal aliens.

We cannot back down. The probability that there are terrorists that are targeting our shopping malls and other mass-gathering venues is extremely high. A subject that the Department of Homeland Defense does not push, especially under the Bush Administration which supports illegal alien drug dealers and jails hard-working Border Patrol Agents like Ignacio Ramos and Jose Compean.

According to CNSNews.com …

Mexico Sentences Man Who Smuggled Hezbollah Sympathizers into U.S.

“Mexican prosecutors say they won a 60-year prison term for a human smuggler who helped about 200 people sneak into the U.S., including Hezbollah supporters.”

“Salim Boughader Mucharrafille was arrested in 2002 and convicted on organized-crime and immigrant-smuggling charges.”

“Boughader, a Mexican of Lebanese descent, ran a cafe in the city of Tijuana, across the border from San Diego, California.”

“Among those he smuggled were sympathizers of Hezbollah, a Lebanon-based group that U.S. authorities have labeled a terror organization.”

What we learned from an evil Santa Claus …

The lessons to be learned from the massacre of 9 innocent people by an evildoer dressed in a Santa suit should teach us that:

1.  The police cannot respond to where they are most needed when they are most needed;

2.  That someone armed with a concealed handgun may have prevented or mitigated the loss of life in this terrible situation.

Now imagine what would happen if terrorists opened fire on citizens in a crowded mall – think about what recently happened in India where a relatively few policemen who were on scene could have thwarted a much larger attack – but didn’t draw their weapons for fear of legal consequences.

Who will stop the bad guys?

Certainly not the members of the Los Angeles City Council (with the exception of Reserve Police Officer Dennis Zine) who openly demand that Angelenos disarm themselves and put themselves at greater mercy to the illegal alien gangs which roam the city with impunity.

Capture12-30-2008-3.10.56 PM

Perhaps we should demand that all City Council members place “gun free zone” stickers on their front doors and give up their handguns and any citizen-paid security which they may have. And perhaps we should make those who pass gun zone legislation financially liable for their actions. 

What can YOU do?

Realize that, in the final analysis, you are responsible for the protection of yourself and your family; hence the term self-defense.

If you believe that the police will protect you in cases of individual aggression, civil disturbance and terrorist activitiy, make sure your insurance payments are current and that you have consulted with clergy of your choice regarding the ceremony. Don’t forget your will and, of course, living will, should you be incapacitated or rendered a vegetable. Cruel as it may sound, perhaps reading a book on mind games for those living in a persistent vegetative state.

It is no joke: we need to secure our borders and plan for defense against terrorists. We need to do this consistent within the meaning of the Second Amendment – and without the creation of Obama’s Federalized Homeland Protection police to be similarly trained and equipped to be the equivalent of our military.

Do not elect or re-elect any politician who believes in open borders, sympathizes more with the illegal aliens than legal, law-abiding citizens and who votes to reduce self-defense options rather than increase them.

Be well and be safe.

-- steve

Quote of the Day: “Ask yourself: Who you gonna call?”        -- Ghostbusters

A reminder from OneCitizenSpeaking.com: a large improvement can result from a small change…

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

Reference Links:

CNSNews.com - Mexico Sentences Man Who Smuggled Hezbollah Sympathizers into U.S.

“Nullius in verba”-- take nobody's word for it!
"Acta non verba" -- actions not words

“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

| Comments (0)

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