Friday, July 17, 2009

Socialist America sinking

By Patrick Buchanan
Posted: July 16, 2009

























After half a century of fighting encroachments upon freedom in America, journalist Garet Garrett published "The People's Pottage." A year later, in 1954, he died. "The People's Pottage" opens thus:

"There are those who still think they are holding the pass against a revolution that may be coming up the road. But they are gazing in the wrong direction. The revolution is behind them. It went by in the Night of Depression, singing songs to freedom."

Garrett wrote of a revolution within the form. While outwardly America appeared the same, a revolution within had taken place that was now irreversible. One need only glance at where we were before the New Deal, where we are and where we are headed to see how far we are off the course the Founding Fathers set for our republic.

Taxes drove the American Revolution, for we were a taxaphobic, liberty-loving people. That government is best that governs least is an Americanism. When "Silent Cal" Coolidge went home in 1929, the U.S. government was spending 3 percent of gross domestic product.

And today? Obama's first budget will consume 28 percent of the entire GDP; state and local governments another 15 percent. While there is some overlap, in 2009, government will consume 40 percent of GDP, approaching the peak of World War II.

Tell Congress to stop spending America into the ground! Sign the WND petition demanding lawmakers stop the bailouts, stimulus bills and march toward socialism and national destruction.

The deficit for 2009 is $1.8 trillion, 13 percent of the whole economy. Obama is pushing a cap-and-trade bill to cut carbon emissions that will impose huge costs on energy production, spike consumer prices and drive production offshore to China, which is opting out of Kyoto II. The Chinese are not fools.

Obama plans to repeal the Bush tax cuts and take the income tax rate to near 40 percent. Combined state and local income tax rates can run to 10 percent. For the self-employed, payroll taxes add up to 15.2 percent on the first $106,800 for all wages of all workers. Medicare takes 2.9 percent of all wages above that. Then there are the state sales taxes that can run to 8 percent, property taxes, gas taxes, excise taxes and "sin taxes" on booze, cigarettes and, soon, hot dogs and soft drinks.

Comes now national health insurance from Nancy Pelosi's House. A surtax that runs to 5.4 percent of all earnings of the top 1 percent of Americans, who already pay 40 percent of all federal income taxes, has been sent to the Senate. Included also is an 8 percent tax on the entire payroll of small businesses that fail to provide health insurance for employees.

Other ideas on the table include taxing the health benefits that businesses provide their employees.

The D.C.-based Tax Foundation says New Yorkers could face a combined income tax rate of near 60 percent.

In the Declaration of Independence, Thomas Jefferson called George III a tyrant for having "erected a multitude of new offices, and sent hither swarms of officers to harass our people and eat out their substance."

What did George III do with his Stamp Act, Townshend Acts or tea tax to compare with what is being done to this generation of Americans by their own government?

While the hardest-working and most productive are bled, a third of all wage-earners pay no U.S. income tax, and Obama plans to free almost half of all wage-earners of all income taxes. Yet, tens of millions get Medicaid, rent supplements, free education, food stamps, welfare and an annual check from Uncle Sam called an Earned Income Tax Credit, though they never paid a nickel in income taxes.

Oh, yes. Obama also promises everybody a college education.

Coming to America to feast on this cornucopia of freebies is the world. One million to 2 million immigrants, legal and illegal, arrive every year. They come with fewer skills and less education than Americans, and consume more tax dollars than they contribute by three to one.

Wise Latina women have more babies north of the border than they do in Mexico and twice as many here as American women.

As almost all immigrants are now Third World people of color, they qualify for ethnic preferences in hiring and promotions and admissions to college over the children of Americans.

All of this would have astounded and appalled the Founding Fathers, who after all, created America – as they declared loud and clear in the Constitution – "for ourselves and our posterity."

China saves, invests and grows at 8 percent. America, awash in debt, has a shrinking economy, a huge trade deficit, a gutted industrial base, an unemployment rate surging toward 10 percent and a money supply that's swollen to double its size in a year. The 20th century may have been the American Century. The 21st shows another pattern.

"The United States is declining as a nation and a world power with mostly sighs and shrugs to mark this seismic event," writes Les Gelb, president emeritus of the Council on Foreign Relations, in CFR's Foreign Affairs magazine. "Astonishingly, some people do not appear to realize that the situation is all that serious."

Even the establishment is starting to get the message.

Sunday, July 12, 2009

The Fed Must Be Stopped



July 12, 2009


Written by: Ron Paul

Our country currently finds itself in the midst of the worst economic crisis since the 1930s and, as during all economic crises, people search for the answer as to why this has happened. Not only have large financial firms been affected, but also mainstays of American industry such as GM and Chrysler, all the way down to the Mom & Pop stores on Main Street. The easy way out is to blame the traditional scapegoats: foreign governments, fraudulent businessmen, and greedy speculators. But the real villain is far more sinister; the organization entrusted with maintaining a stable dollar and touted as the guarantor of economic stability – the Federal Reserve.

In the United States, monetary policy has been the domain of the Federal Reserve since its inception in 1913. Since that time we have had a number of cyclical recessions, each one following a boom caused by the Federal Reserve's loose monetary policy. The problem with the Federal Reserve is that it interferes with market pricing functions. Interest rates are a price just like any other and arise because of the fact that people prefer to consume in the present rather than in the future. The extent to which people defer present consumption is reflected in interest rates, which in a free market are determined by the spontaneous interactions and decisions of millions of people.

Fed intervention to set prices throws markets and interest rates out of equilibrium. When the Federal Reserve pushes interest rates below what the market rate would be, everyone wants to borrow money for long-term projects. Shortages of loanable funds would occur, except that the Federal Reserve has the ability to create bank balances out of thin air. The Fed can create a bank ledger on paper, or on a computer, establish a balance of millions or billions of dollars, and then spend these dollars out into the economy.

Loans become cheap, and the result of these lower interest rates is an economic boom which eventually manifests itself as a bubble. Beginning in 2001, the Federal Reserve pushed interest rates to as low as one percent, which after adjusting for inflation meant that the real interest rate was negative, so businesses were actually making money by taking out loans. This was the fuel for the housing bubble and the reason there are 19 million empty houses today.




















Because of this awesome power to create money out of thin air, the Fed has jumped in to stabilize ailing financial firms by pledging over $7 trillion through various guarantee programs and credit facilities. This is equivalent to over half of the entire nation's GDP. Over $1 trillion of this is already in play, propping up banks and other institutions that should be allowed to fail. All of this has taken place with no oversight by Congress. The Fed was created by Congress, and it is unconscionable that we have allowed it to act in such a way without our oversight. Currently the Federal Reserve's credit facilities, open market operations, and agreements with foreign governments and central banks are all exempt from any sort of audit or oversight. Earlier this year I introduced the Federal Reserve Transparency Act, HR 1207, that would remove all restrictions on Federal Reserve audits and call for a f ull audit of the Federal Reserve System to be completed by the end of 2010. At this writing, 245 of my fellow Congressmen have cosponsored this bill and we hope to have hearings in the near future. In the Senate, Republicans Jim DeMint, Mike Crapo and David Vitter have cosponsored S. 604, companion legislation introduced by Bernie Sanders. I am very encouraged by the tremendous growing momentum on Capitol Hill.

Our Founding Fathers never intended for a single entity such as the Federal Reserve to have this much power. In fact, there is no authority in the Constitution for the federal government to create a central bank, to enact legal tender laws, or to print paper money. The Tenth Amendment is quite clear that “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.” The states themselves are prohibited from emitting bills of credit, i.e. paper money, arising from the Founders' negative experiences with paper money during the Revolutionary War. Cheap, un-backed, easily counterfeited paper money nearly lost the Revolution, until the government returned to minting gold and silver coins. Unfortunately, like too many other lessons learned by the Founders, the painful experiences of paper money have been forgotten by those living in the pres ent. We even ignore the experiences of Germans in the 1920s, Argentines in the 1980s, and Zimbabweans over the past decade. The Fed doubled the monetary base last fall in a matter of months, and God help us if any of this high-powered money begins to make its way through the economy.

An audit of the Fed is only the first step towards returning to where our Founders intended this country to be. The Founders knew that paper money could ruin a country, and drafted the Constitution in such a way that they thought would ensure sound, commodity-backed currency. Unfortunately, the Constitution was dispensed with long ago, and we find ourselves now suffering under an unconstitutional regime of un-backed paper money. Until we abolish the Federal Reserve and return to a stable currency that is not able to be manipulated to create boom and bust cycles, we will continue down the path of economic ruin.

Congress Ron Paul serves the fourteenth district of Texas and is honorary chairman of Campaign for Liberty. His new book, End the Fed (Grand Central Publishing) will release on September 16th and is available for pre-order on Amazon.

Tuesday, June 16, 2009

Why we are Doomed

This video should make anyone think twice about listening to anything that Chairmen of the Fed Ben Bernanke says, or what any of the clowns in Washington say for that matter. They are either lying to us to cover up there true intentions OR they are the single most incompetent group of knuckle dragging politicians to ever weasel their way into leadership of a Country. Either way, we only have ourselves to blame for it!

This is a compellation of statements Ben Bernanke has made from 2005-2007 that will have you 100% certain America is doomed if we continue to value what this moron says.

Tuesday, April 14, 2009

Federal agency warns of radicals on right

A Note from the Editor:
It is both telling and, one would imagine, quite intentional that this report, "warning" of an increase in "Right wing radicals", was released by the Department of Homeland Security just one day before millions of Americans are scheduled to gather around the country to peacefully voice their disapproval of the Federal governments unprecedented encroachment into the private sector and never-ending economic bail-outs using Tax-payer dollars. Deliberate Intimidation? You be the judge. As for this writers opinion....."something wicked this ways comes".




Washington Times
Tuesday, April 14, 2009

The Department of Homeland Security is warning law enforcement officials about a rise in "rightwing extremist activity," saying the economic recession, the election of America's first black president and the return of a few disgruntled war veterans could swell the ranks of white-power militias.

A footnote attached to the report by the Homeland Security Office of Intelligence and Analysis defines "rightwing extremism in the United States" as including not just racist or hate groups, but also groups that reject federal authority in favor of state or local authority.

"It may include groups and individuals that are dedicated to a single-issue, such as opposition to abortion or immigration," the warning says.

The White House has distanced itself from the analysis. When asked for comment on its contents, White House spokesman Nick Shapiro said, "The President is focused not on politics but rather taking the steps necessary to protect all Americans from the threat of violence and terrorism regardless of its origins. He also believes those who serve represent the best of this country, and he will continue to ensure that our veterans receive the respect and benefits they have earned."

The nine-page document was sent to police and sheriff's departments across the United States on April 7 under the headline, "Rightwing Extremism: Current Economic and Political Climate Fueling Resurgence in Radicalization and Recruitment."

It says the federal government "will be working with its state and local partners over the next several months" to gather information on "rightwing extremist activity in the United States."

The joint federal-state activities will have "a particular emphasis" on the causes of "rightwing extremist radicalization."

Homeland Security spokeswoman Sara Kuban said the report is one in an ongoing series of assessments by the department to "facilitate a greater understanding of the phenomenon of violent radicalization in the U.S."

The report, which was first disclosed to the public by nationally syndicated radio host Roger Hedgecock, makes clear that the Homeland Security Department does not have "specific information that domestic rightwing terrorists are currently planning acts of violence."It warns that fringe organizations are gaining recruits, but it provides no numbers.

The report says extremist groups have used President Obama as a recruiting tool.

"Most statements by rightwing extremists have been rhetorical, expressing concerns about the election of the first African American president, but stopping short of calls for violent action," the report says. "In two instances in the run-up to the election, extremists appeared to be in the early planning stages of some threatening activity targeting the Democratic nominee, but law enforcement interceded."

When asked about this passage, Secret Service spokesman Ed Donovan said, "We are concerned about anybody who will try to harm or plan to harm any one of our protectees. We don't have the luxury to focus on one particular group at the exclusion of others."

Congressional debates about immigration and gun control also make extremist groups suspicious and give them a rallying cry, the report says.

"It is unclear if either bill will be passed into law; nonetheless, a correlation may exist between the potential passage of gun control legislation and increased hoarding of ammunition, weapons stockpiling, and paramilitary training activities among rightwing extremists," the report said.

The FBI was quoted Monday as saying that, since November, more than 7 million people have applied for criminal background checks in order to buy weapons.

The Homeland Security report added: "Over the past five years, various rightwing extremists, including militias and white supremacists, have adopted the immigration issue as a call to action, rallying point, and recruiting tool."

The report could signify a change in emphasis for Homeland Security under former Arizona Gov. Janet Napolitano. A German magazine quoted Ms. Napolitano as rebranding "terrorism" as "man-made disasters." Since its inception in 2003, the department has focused primarily on radicalization of Muslims and the prospect of homegrown Islamist terrorism.

In January, the same DHS office released a report titled "Leftwing extremists likely to increase use of cyber attacks over the coming decade."

"These types of reports are published all the time. There have actually been some done on the other end of the spectrum, left-wing," Ms. Kuban said.

A similar headline was used in a report issued in January, Ms. Kuban said, although she could not provide the content of the headline.

Ms. Kuban said she did not know how long the new report had been in the making.

"The purpose of the report is to identify risk. This is nothing unusual," said Ms. Kuban, who added that the Homeland Security Department did this "to prevent another Tim McVeigh from ever happening again."

The Homeland Security assessment specifically says that "rightwing extremists will attempt to recruit and radicalize returning veterans in order to exploit their skills and knowledge derived from military training and combat."

Jerry Newberry, director of communications for the Veterans of Foreign Wars, said the vast majority of veterans are patriotic citizens who would not join anti-government militias.

"As far as our military members go, I think that the military is a melting pot of society. So you might get a few, a fractional few, who are going to be attracted by militia groups and other right-wing extremists," he said.

"We have to remember that the people serving in our military are volunteers, they do it because they love their country, and they believe in what our country stands for," he said. "They spent their time in the military defending our Constitution, so the vast majority of them would be repulsed by the hate groups discussed in this report."

The Homeland Security report cited a 2008 FBI report that noted that a small number of returning military veterans from the wars in Iraq and Afghanistan have joined extremist groups.

The FBI report said that from October 2001 through May 2008 "a minuscule" number of veterans, 203 out of 23,000, had joined groups such as the Ku Klux Klan, Aryan Nations, the National Socialist Movement, the Creativity Movement, the National Alliance and some skinhead groups.

"Although the white supremacist movement is of concern to the FBI, our assessment shows that only a very small number of people with prior military experience may have an affiliation with supremacist groups," FBI spokesman Richard Kolko said Monday when asked about the FBI report.

A 2006 report from the Southern Poverty Law Center, an organization that monitors white supremacists like the Klan, said that white-power groups had an interest in the kind of training the military provides.

Mark Potok, director of the center's intelligence project, said the Homeland Security report "confirms that white supremacists are interested in the military. There is some concern, and there should be, about returning veterans, one need only think of the example of Timothy McVeigh, who was in the first Iraq war."

Mr. Potok added that he was generally pleased with the report.

"Basically, the report tracks fairly closely with what we have been saying for some time now. They mention us a couple of times, though not by name," he said.