Wednesday, December 22, 2010

Jim Rickards

The really smart guys can take complex issues and communicate them clearly. Jim is really smart and has an outstanding resume. Please check out the interview.

  Part II:  kingworldnews.com/kingworldnews/Broadcast/Entries/....html
http://chum.ly/n/53e7f3

Tuesday, December 21, 2010

$2tn debt crisis threatens to bring down 100 US cities | Business | The Guardian

The debt crisis rolls forward, working its way up. Everyone and every government entity lived high on the hog on borrowed money and the game is ending and becoming more desperate. Wait till it hits the treasuries/the dollar.

   www.guardian.co.uk/business/2010/dec/20/debt-crisi...ities
http://chum.ly/n/537895

Saturday, December 18, 2010

Friday, December 17, 2010

Eurozone debt crisis spreads to Belgium on rising political risk - Telegraph

Europe tottering to the brink of financial chaos.

   www.telegraph.co.uk/finance/financetopics/financia....html
http://chum.ly/n/5147d1

FinanceAndEconomics

The more loudly that the government and press declare that inflation is low, the more we should examine our household expenses.

   www.financeandeconomics.org/Articles archive/2010.12.08 Bernanke.htm
http://chum.ly/n/5146b2

Wednesday, December 15, 2010

Post from greshambouma at CHUM.LY

Why Reward Incompetence, Corruption and Betrayal?

As we head into the coming crisis brought on by our own government, we need to consider some important questions. Even as government solutions are failing us, we will be urged and tempted to trust government institutions with more power, authority and revenue.

But does Social Security have any security at all? We should all recognize that it is a system heading into crisis. In the year 2009 we had about 10 people entering the work force for every individual retiring. By 2023 we will have 10 people retiring for every person entering the work force. We have known this for years, yet recently big government Republicans under Bush's leadership compounded the problem by adding (socialized) old age drug"benefits”, a huge bribe/gift to the pharmaceuticals guaranteeing sales without free market cost/profit constraints. State pension systems around the nation are in no better shape than the national one, the result of years of state politicians making politically expedient promises paid for in the future with other peoples earnings.

Is education in any better shape? The solution is always to centralize more power, control and curriculum. It does not seem to matter that the more we do so, the worse the system performs.

How about the decision to trust politicians with our currency? In 1913 they gave control over to the banksters in order to avoid some short term fluctuations in liquidity. Since then liquidity is the solution to everything with debt and inflation threatening the viability of our entire system and institutions like Goldman Sachs walking away with world record government sponsored and protected profits. And they don't even thank the taxpayer.

How about energy policy? How are the socialists doing at that? Lobbying recently directed critical financial resources into ethanol, making us less secure and more dependent on imports, meanwhile the same government interferes with domestic energy development in the West, Alaska, and the Gulf of Mexico. As the dollar loses its status as the world
reserve currency, we will have to give as much as we get in international trade. How will we afford the fuel we need to function as an economy?

Socialism is Communism by evolution instead of revolution. Their plan is working wonderfully. They do not have a conspiracy, rather an agenda which can be documented. You can look up their plans by reading Cloward & Piven, Saul Alinsky, John Dewey, the Fabian Societies ideas...

For us the real question is, as government institutions fail and betray us completely, are we going to trust them with more power, authority and revenue? Or will we turn back toward freedom, individual responsibility, unalienable rights, rule of law...in short the constitutionally limited government we once had and prospered under?

Gresham Bouma
http://chum.ly/n/5092e8

Munis Crushed... Again

This graph shows municipal bond activity over the last several months. When this same pattern shows up in Treasuries, look out below.

   www.businessinsider.com/munis-crushed-again-2010-1...10-12
http://chum.ly/n/503000

Tuesday, December 14, 2010

Market alarm as US fails to control biggest debt in history - Telegraph

Spiking interest rates can lead to spiking interest rates as they make debt service more expensive and therefore make it obvious that we owe more than we can ever honestly repay.

   www.telegraph.co.uk/finance/comment/liamhalligan/8....html
http://chum.ly/n/4f9549

Monday, December 13, 2010

Post from greshambouma at CHUM.LY

The problem with trying to live at the expense of others is that others don't like it much. They stop producing and try to live at someone else's expense too. And pretty soon, you have a nation of poor zombies...feeding on the little living flesh still left alive.
--Bill Bonner (Daily Reckoning)
http://chum.ly/n/4f624c

Saturday, December 11, 2010

Chris Whalen

Wave of foreclosures coming, banks on life support by taxpayers, states defaulting on debt, price inflation in necessities while wages deflate, Europe crisis to intensify...

  "We Understand Bank Of America's Problem - They Are Completely INSOLVENT!" (Video) - Home - The Daily Bail:  
http://chum.ly/n/4e1f69

Friday, December 10, 2010

Wall Street's Worst at Least Can Do the Math

Without justice our system will not right itself. At their heart all the issues that matter are moral. When crooks are no longer in charge and fraud is not longer rewarded their will be "hope" for meaningful "change".

  Jonathan Weil - Bloomberg:  
http://chum.ly/n/4db21a

Post from greshambouma at CHUM.LY

It's taken almost two centuries for bankers to pull the wool over Americans' eyes, but today you and I are working for intrinsically worthless paper that can be created by bureaucrats — created without sweat, without creative ability, without work, without anything but a decision by the Federal Reserve. This is the disease at the base of today's monetary system. And like a cancer, it will spread until the system ultimately falls apart. This is the tragedy of the great lie. The great lie is that fiat paper represents a store of value, money of lasting wealth.- Richard Russell
http://chum.ly/n/4dae75

Thursday, December 9, 2010

Global bond rout deepens on US fiscal worries - Telegraph

US debt beginning to get a little of the spotlight. Foreign governments, financial experts, even the always blindly optimistic debt rating agencies are concerned. Remember, destroy your currency and you destroy commerce. How long could we muddle along without any oil imports?

   
http://chum.ly/n/4d3ed1

Wednesday, December 8, 2010

Tuesday, December 7, 2010

Walker's World

Every time the market demands strong medicine, the central planners intervene to mask the symptoms, feeding the disease and rolling all the problems into one big event.

  The euro's endgame -  www.upi.com:  www.upi.com/Top_News/Analysis/Walker/2010/12/06/Wa...34460 http://chum.ly/n/4c55dd

J.P. Morgan Getting Squeezed In Silver Market? (SLV, JPM)

Can anything good come out of San Francisco? Just another Black Swan event.

   www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2010/12/...5.DTL http://chum.ly/n/4c5397

Monday, December 6, 2010

Mounting Debts by States Stoke Fears of Crisis - www.nytimes.com

Insolvent states, to go along with insolvent households, nations and corporations carrying too much debt. But don't worry the American tax-payer can rescue them all.

   www.nytimes.com/2010/12/05/us/politics/05states.ht...mc=a2 http://chum.ly/n/4c09e6

Saturday, December 4, 2010

Post from greshambouma at CHUM.LY

If the old economic law, "There is no such thing as a free lunch", is true then none of the stimulus programs will work since they all rob some part of the private sector. The only recovery will be in government spending while the sustainable, job producing, wealth creating sector is finished off. Don't tell me that all our highly educated manipulators at the federal level are doing this by accident. http://chum.ly/n/4b958e

Monday, November 29, 2010

Post from greshambouma at CHUM.LY

How this Whole Government Bankruptcy Thing Sneaks up on us

With a number of governments in Europe in debt crisis, it begs the question as to how governments could possibly end up bankrupting entire countries without the citizens seeing it coming and stopping it. It seems inconceivable that one day national debt is just fine, then some news item changes everything and the nation in question is on the verge of bankruptcy.

Let�s look at what happens. When governments begin to borrow more than they lend, wonderful things happen in the economy. If the borrowing comes from outside the economy, money is spent that does not compete with borrowing/spending in the private sector. GDP goes up since it simply measures economic activity. Everyone is prospering on the borrowed growth. Tax receipts go up and government and its programs grow. The more government borrows, taxes and spends, the more it produces not only a large public sector, but a sector of the private economy that is entirely reliant on government spending. Without sustained government spending this part of the private sector will simply disappear, but citizens are not aware of the dependency of the entire economy on their government�s ability to borrow more money and spend it.

Citizens are not aware of the dependency because the government�s own reporting constantly understates the magnitude of the borrowing and deficit spending. The press is implicated as well since it cooperates in the reporting methods used to hide the magnitude of the spending and borrowing problem. Deficit spending is frequently compared to total GDP, which is a very large and meaningless number. This makes the deficit appear smaller in comparison. If deficit spending were compared with total government tax revenue it would appear alarmingly large. For instance last year the US federal government spent 68% more than it brought in as tax revenue, but its spending deficit compared to GDP was only roughly 10%. It is all a wonderful system in the short run with everyone feeling very wealthy and comfortable with a large and growing government presence. The trouble is suddenly overwhelming, however, when the government in question can no longer find an outside source of borrowing. Not only does the borrowed money disappear as a source of funding, but GDP and tax revenue shrink as well forcing an even larger contraction in government spending. So the end result is governments, once they begin to borrow, they can�t quit without causing economic hardship, so they don�t until they are bankrupt. Only then does the magnitude of the problem begin to be evident to the public as cut feeds contraction, forcing more cuts and hardship.

In short, government borrowing fuels growth, which fuels tax revenue, which justifies greater borrowing, which fuels growth and tax revenue, which justifies greater borrowing, etc. This happens until practical restraints force government cutbacks which spur contraction, which spur cuts, which feed more contraction etc. But in order to avoid the second half, our governments is printing rather than cutting, which sacrifices the currency in order to maintain spending in the short term. http://chum.ly/n/49fd3a

Saturday, November 27, 2010

Post from greshambouma at CHUM.LY

The problem with inflation is that it does not show up uniformly over all classes of goods. As it shows up in one category or another, the government, that in the first place created the inflation, calls it "capital gains" and taxes it. http://chum.ly/n/4988bb

Friday, November 19, 2010

Post from greshambouma at CHUM.LY

Quantitative Easing

The Quantitative Easing (QE) program that the Fed is engaged in is something every American should understand. Quantitative Easing is a fancy name for creating money with some keystrokes and using it to buy your own debt. It robs anyone that holds dollar denominated debt or cash. It is really a form of taxation that is levied on anyone that holds our debt or cash. That is why other countries that hold our debt have been protesting so loudly. The Fed is taxing the world through QE to finance our run-away government spending. If we continue this program, instead or facing the serious economic hardship of draconian spending cuts, we will instead destroy our own unit of exchange. The implications of destroying the dollar are staggering, even if it occurs at a modest pace. We are a nation drunk on debt and are opting for the blood poisoning instead of the DTs/withdrawal symptoms. http://chum.ly/n/4733f3

Post from greshambouma at CHUM.LY

The federal government can’t tax us enough to maintain the size and scope of our current system, so it must instead borrow and print. Over the next several quarters it plans on financing almost all of our deficit spending with the printing approach (800 Billion in total QE). When that is over, will China continue to finance our profligacy? And if so at what interest rate? If interest rates go to even 5%, which is very low considering what the Fed is doing, interest on 14 Trillion would be around 700 Billion annually. With tax revenue around 2.1 Trillion, just the interest on our debt would take over 30% of annual federal tax receipts. If someone sees an easy way out of this, I would love to be enlightened. Until then I won’t join the rest of America in this la-la land where you don’t even add 2+2 anymore; where there are no moral hazards; where the god of government can’t fall on its face; where 42 Million people continue to happily cash in their food stamps; where unemployment payments are extended into eternity; where everyone and everything depends on a corrupt maze of bureaucracies; where Soros, the big mover and shaker behind the left, stands to make billions again from the destruction of yet another currency… http://chum.ly/n/4733f2

Wednesday, November 17, 2010

EconomicPolicyJournal.com: How Finished Goods Prices Are Up 4.3% Over Last 12 Months; Gasoline Prices are up 9.8% in October, and the BLS Reports Declining Inflation

 www.economicpolicyjournal.com/2010/11/finished-goo....html

More government "Enron" style reporting. I doubt if there is anything that affects inflation in the long run more than energy prices. Inflation in commodities has already picked up, and with QE II will probably only accelerate from here. http://chum.ly/n/4613cb

Thursday, November 11, 2010

This quote probably sums up well our foreign creditors attitude toward our plans to create money out of thin air and use it to buy our own debt

"Though it is likely for the current loose monetary policy to postpone the occurrence of difficulties, yet in the long run, it will be proven to be a practice resembling drinking poison to quench [your] thirst." Chinese rating agency Dagong Global, discussing Bernanke's QE2 plans. http://chum.ly/n/43da0d

Sunday, November 7, 2010

Doubts grow over wisdom of Ben Bernanke 'super-put' - Telegraph

 www.telegraph.co.uk/finance/economics/8111153/Doub....html

America may ignore its own Fed but the rest of the world is trying to figure out how to protect itself from our irresponsible action. The author is a very well read and highly regarded journalist. Wake up America. http://chum.ly/n/42d369

Saturday, November 6, 2010

Post from greshambouma at CHUM.LY

The end of a trend known as "tax, borrow and spend"… We probably are in the blow-off phase. But with the announcement of another round of Quantitative Easing (print money and buy your own debt) by the Federal Reserve, it looks to me like we are entering a new phase. Let’s call it "tax, print and spend". Maybe there will still be borrowing, but you have to wonder if there will be any willing lenders after the next several quarters during which we finance most of our deficit spending by printing money out of thin air and lending it to ourselves. Socialism matures into bankruptcy, and that is where we find ourselves today. When countries run out of the ability to borrow, they usually have two options available. They can turn to austerity measures and cut government dramatically, or they can crank up the printing presses and continue to spend, but destroy their currency by doing so. Cuts in spending result in painful economic adjustments as the country goes through withdrawal symptoms of debt dependency. On the other hand, turning to the "printing presses", or in our case the computer keyboard, as a source of financing, creates run-away inflation at some point. It avoids the hard decisions of budget cuts but is ultimately much more destructive. http://chum.ly/n/4291a0

Thursday, October 28, 2010

Post from greshambouma at CHUM.LY

Federal Funding in Education
Controlling federal funding is well beyond the scope of a state senator, and I am fully aware of this fact. Apparently I indicated in a newspaper interview over five months ago that I was opposed to our schools receiving any federal funding. That overstates my position. This statement is now being used to play 'gotcha' in an effort to color public perception on my views regarding education. Federal control concerns me greatly, because when the decision-making process is far removed from the communities involved, the effects of bad policy decisions become difficult to adjust or correct. My other grave concern is we have developed a deadly dependency on federal funding. When the "austerity measures" hit our continent, how will we cope? My campaign has not focused on eliminating the Dept. of Education. What I have focused attention on is positioning Idaho to survive when much of the loose federal spending has to be reigned in. Anyone willing to look at the volumes I have written on my website and blog will see that I desire genuine improvement in education. And a honest look at the education systems throughout the country will support the premise that more funding is not the answer. We need key reforms to help local communities meet the educational needs of their students, with more parental control and involvement and less federal mandate. When government decisions are moved closer to the people, it gives accountability and transparency a fighting chance. http://chum.ly/n/3fbf02

Post from greshambouma at CHUM.LY

Every time you create a new federal agency which handles money, you create a new niche market for criminals to exploit. The criminals just learn to do paperwork and too often the federal employees in their overpaid, union protected jobs are either incompetent or indifferent as they dole out the "free money" that has been extracted from you and I. Do we really want Obamacare to create a whole slew of new bureaucracies at this point? Should Idaho give up another whole category of rights to the federal government? No. Lets make Idaho a means of protecting our rights, our freedom, our cash. http://chum.ly/n/3fb66f

Wednesday, October 27, 2010

Post from greshambouma at CHUM.LY

If People ain't Working the Economy Ain't Working

We're at the end of a trend known as tax, borrow and spend, and its going to be ugly because when govt. spending goes bust so does the economy. The economic hardship we are experiencing has occurred in spite of massive govt. stimulus which means we ain’t seen nothing yet. It is maybe world history's biggest “elephant in the room”, but the media is starting to feel around its legs like blind men examining that same elephant. Just remember, if people ain't working, the economy ain't working. http://chum.ly/n/3f95a9

Sunday, October 24, 2010

Post from greshambouma at CHUM.LY

Only one more "Frieday" left for this lightning rod! http://chum.ly/n/3e6bd1

Thursday, October 21, 2010

Post from greshambouma at CHUM.LY

Let's Make Idaho More Business Friendly

It should be painfully obvious to all of us that America’s economic trouble is just starting. We have been struggling economically for ten years in spite of massive government stimulus. The borrowing and spending has gone off the charts lately, and we need to sober up and think about what life will be like when we have to live within our means. The federal budget for 2010 shows close to 2.2 Trillion in gross revenue while it shows total spending of over 3.7 Trillion. It is spending about 68% more than it brings in during 2010. What happens when the world’s biggest spender has to cut its budget by around 70% because it can no longer find willing lenders? With federal debt at 13.5 Trillion., we owe about six times our annual tax receipts. This is like a person making 50 K a year, spending 85 K, and carrying credit card debt of 300 K.

To solve a problem, the first step is to correctly identify it. Until America comes to grips with the unbelievable problems our own government has created for us, we won’t begin to correctly address those problems. What Idaho needs to do is to protect and encourage every bit of economic strength that we have. Every job and business is important, and businesses that produce exports or reduce our reliance on outside goods are extremely vital. Idaho’s taxes are already higher than our surrounding states, and that is a serious error. Our regulations need to be reasonable and our taxes absolutely must not be raised or we are cutting our own economic throats. If we want jobs and a future for our children, we must let the sustainable job-producing sector grow, rather than the burden of government. http://chum.ly/n/3d6638

Wednesday, October 20, 2010

Tuesday, October 19, 2010

China's not the villain if the West tries to debase its debt through QE - Telegraph

 www.telegraph.co.uk/finance/comment/liamhalligan/8....html

This article notes that the US has already had a Quantitative Easing program of 1.7 Trillion (QE is when you print $ out of thin air and use it to buy your own debt). Historically, this has always been the action of countries in desperate financial trouble (just like us). http://chum.ly/n/3cefd3

Thursday, October 14, 2010

Post from greshambouma at CHUM.LY

Side With Citizen Involvement

Attacking someone you don’t know and have never spoken to has its advantages--you can say anything since you know almost nothing at all. To say I don’t care about older people is just one of many false accusations leveled at me by Vera White [various INK columns]. My favorite part of campaigning has been meeting with retired folks. I deeply value the older generation and believe in honoring them. My world is enriched by lifelong friendships with them, their great wisdom and wonderful stories, and I visit nursing homes regularly. I hope our retired community will forgive me for wanting to bring my complete message in my own format rather than AARP's. Those who have heard me speak may recall that one of my legislative goals is to keep our parents and grandparents from losing their residences if property taxes keep escalating beyond their ability to pay. Rising property taxes are a tremendous burden for those on fixed incomes, as many elderly can attest.

My opposition calls me a tea party candidate, a great evil in their eyes. The 'tea party' is a disorganized nationwide grassroots movement composed of Democrats, Republicans and Independents...common people fed up with big government politicians from both parties. To attack the tea party is to attack the very idea of citizen involvement in government. These attacks seek to protect big, bloated, powerful government from the average mom, dad, grandma and grandpa who feel outraged at the debt shackling our future. Is accountability and transparency too much to demand from government? In this David & Goliath struggle, Vera and much of the media champion Goliath. I urge voters to stand for the Davids, for the people and for liberty.
Gresham Bouma
for Idaho Senate District 6
sent 10/6/10, published in Moscow-Pullman Daily News on 10/12/10 http://chum.ly/n/3b0ec9

Tuesday, October 12, 2010

Post from greshambouma at CHUM.LY

Taxing, borrowing and spending is highly stimulative as long as much of the borrowing or taxes comes from outside the system. When all the taxes and borrowing comes from inside the system all you do is transfer economic activity from the wealth producing (private) sector to the wealth consuming sector (public). Wait, you say, you can’t tax foreign sources! Not true, you just have to be sneaky. You do it by expanding your money supply, which is a stealth tax on anyone who holds your debt or currency in their account. As long as the market does not devalue your currency as you inflate it, you transfer wealth and the game goes on. http://chum.ly/n/3a1cce

Monday, October 11, 2010

Senator Fulcher Endorses Bouma

Dear Editor,

As Idaho Citizens, all of us should be interested in who is representing us in the Idaho legislature. But as a member of the Idaho State Senate, I also have an immediate vested interest in who I will be working with.

So when Gresham Bouma won the primary election last May, I took the initiative of getting to know him. I asked him to communicate to me his platform and positions on issues currently facing Idaho. The summary of that dialogue is this: I like what I see.

It is clear to me Gresham understands that our future is dependent on a well-funded, diversified education system. Gresham also understands that the answers to the economic challenges we face today are based on empowering the free market, encouraging individual incentives, and protecting personal liberties.

I believe that if you elect Gresham Bouma to the State Senate on Nov. 2, he will represent his constituents with honesty, integrity, and dedication. He has responded to me and my questions by preparing diligently and analyzing all of the issues placed before him; all with the spirit of "listening before speaking."

I expect to start my 4th term in the legislature this coming January, and I want Gresham Bouma there with me. Only you can make that happen, and I respectfully ask that you do.

Sincerely,
Senator Russ Fulcher
Majority Caucus Chairman, Idaho State Senate
Published in the M/P Daily News

Sunday, October 3, 2010

Post from greshambouma at CHUM.LY

The federal govt. is like a subcontractor who agrees to do a job for a certain amount, had been paid many times more than the original agreement, has abandoned the job, interferes with all the other subs and still comes demanding more payment. Fire the damn sub, or make him do the original job at the original price. http://chum.ly/n/377426

Saturday, October 2, 2010

Post from greshambouma at CHUM.LY

In modern liberalism you can’t define either good or bad, one of the many bad results is that you can no longer define and reward excellence, or define and punish incompetence. All performance is equal, and deserves equal rewards. What nonsense. One application of this principle is the idea of rewarding the govt. with more responsibility and tax revenue after it has proven itself such a gross mismanager of what it has already received. http://chum.ly/n/37027e

Wednesday, September 29, 2010

Shut Down the Fed (Part II) – Telegraph Blogs

 blogs.telegraph.co.uk/finance/ambroseevans-pritcha...rt-ii

Ambrose admits the Idahoans had it correct all along. Eventually we will all agree with Jefferson on the dangers of central banks: "If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks...will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." http://chum.ly/n/36548d

Sunday, September 26, 2010

Post from greshambouma at CHUM.LY

What a fun way to celebrate our great Idaho lifestyle. Yesterday's turkey shoot was a blast, the music provided by Beargrass set a perfect atmosphere, and the bonfire was huge. Thanks to all who sponsored the event and to all who contributed to the campaign. http://chum.ly/n/3523ba

Friday, September 24, 2010

Recession or Not, U.S. Job Market Woes Persist

 www.gallup.com/poll/143171/Recession-Not-Job-Marke....aspx

It is time we recognized that "the private sector job market is the economy". With out a per-capita increase in private sector earnings all you have is more borrowing and spending, and that is not sustainable. We should have this figured out after the last ten years. http://chum.ly/n/34cb91

Thursday, September 23, 2010

Post from greshambouma at CHUM.LY

The National Bureau of Economic Research has officially called the recession over... Hold on! Weren't these guys some of those who sold the idea of "transitioning to a service based economy"? And then a "consumer based economy"? Call me crazy, but I side with the majority of Americans (and Warren Buffet) that believe the recession is not over. In fact it looks like the "service based economy" is going out of service and the "consumer based economy" has been consumed. Economies grow when real, per capita wealth out-put grows. http://chum.ly/n/348749

Sinai Says Fed's Sept. 21 Statement Means `Gotta Buy Gold' - Bloomberg

 www.bloomberg.com/news/2010-09-22/fed-s-statement-....html

The dollar continues to weaken relative to gold. Even central banks have been reducing exposure to the dollar and buying gold. Gold is a warning. How much is the dollar really worth? How will America do when our trading partners no longer subsidize us through trade deficits? How self-sufficient are we as a nation? http://chum.ly/n/3450ca

Wednesday, September 22, 2010

Payrolls Decrease in 36 U.S. States, Led by Michigan - Bloomberg

 www.bloomberg.com/news/2010-09-21/payrolls-decreas....html

No wonder the man on the street does not believe the recession is over. One of the best economic indicators is the private sector job market. http://chum.ly/n/34106e

Saturday, September 18, 2010

Post from greshambouma at CHUM.LY

The free market is a gratitude multiplier, with two satisfied people walking away from every non-coerced transaction. http://chum.ly/n/32fe00

Post from greshambouma at CHUM.LY

Good morning. To those attending the Latah Fair, please look me up there and say hi. Gresham http://chum.ly/n/32fd79

Saturday, September 11, 2010

POWELL: Jump-starting the economy - Washington Times

 www.washingtontimes.com/news/2010/sep/10/harding-a...yment

Great article on how we should respond to recessions. We have been mislead by the liberal elites who teach and promote only one flawed economic theory, leading us down the road to economic crisis. http://chum.ly/n/306b7b

Thursday, September 9, 2010

Ireland breaks up Anglo Irish as EMU debt jitters return - Telegraph

 www.telegraph.co.uk/finance/newsbysector/banksandf....html

It sounds like Ireland is contemplating debt defaults. http://chum.ly/n/2fdf61

Yuan Trading Against Ruble Said to Start Within Weeks - Bloomberg

 www.bloomberg.com/news/2010-09-08/yuan-trading-aga....html

The dollars hold over the world reserve currency status continues to weaken. The dollar is more and more perceived as a poor store of wealth and the implications for America are profound. If our debt becomes a poor investment because it is denominated in dollars and interest rates return to cyclical highs, how much of our budget would it take to cover interest? What would happen to fuel costs? http://chum.ly/n/2fdf5e

Wednesday, September 8, 2010

Post from at CHUM.LY

What is up, and up dramatically, since the recession began 33 months ago are government transfers to households (in the form of unemployment benefits, food stamps, welfare, social security) — they have ballooned 31% since the end of 2007. A record 30 cents of every dollar in personal income is now derived from some form of government support — now tell me that is not a depression-era statistic. The modern day soup line is a cheque in the mail. Maybe now we can get a better appreciation of why it is that the NBER has yet to sound the all-clear siren that the recession actually ever officially ended despite four quarters of positive GDP growth — perhaps not only because this may have merely been an unsustainable policy-induced spasm, but also because, in per capita terms, real final sales continued to contract through this alleged statistical recovery. - David Rosenberg, Chief Economist & Strategist, Gluskin Sheff & Associates [Toronto]


Thirty cents of every dollar! How will we get out of this debt and spending trap? http://chum.ly/n/2fb1fc

Friday, August 27, 2010

Morgan Stanley Says Government Defaults Inevitable - Bloomberg

 www.bloomberg.com/news/2010-08-25/morgan-stanley-s....html

Government default is not a question of if, but rather how and when. Actually our govt. has already been technically defaulting through its quantitative easing (printing money and lending it to yourself) program at the Fed. http://chum.ly/n/2c9b3d

Fed in emergency bid to put bailout ruling on hold | Reuters

 www.reuters.com/article/idUSTRE67M4E520100825?utm_...ws%29

How is this for transparency? Apparently, if we knew the truth, all would be lost from the Feds point of view. The grand manipulation would have to end if the American public were allowed to view the facts. http://chum.ly/n/2c9323

It pays to riot in Europe – Telegraph Blogs

 blogs.telegraph.co.uk/finance/ambroseevans-pritcha...urope

A peek into America's future? Moodys warned us months ago about unsustainable debt levels potentially leading to social unrest, and they are famously behind the curve on doing their job. http://chum.ly/n/2c9249

Wednesday, August 25, 2010

Home sales plunge as fear grows | detnews.com | The Detroit News

 www.detnews.com/article/20100825/BIZ/8250395/Home-...grows

The government sponsored "recovery" continues to show its strength. We will not have a recovery until we deal with the twin problems of too much debt and too much government. http://chum.ly/n/2be310

THERE WILL BE NO DOUBLE DIP

 matterhornassetmanagement.com/2010/08/16/there-wil...e-dip

Here is a "big picture" financial overview of where we are and have come from. For some reason the author thinks wealth does not come from a printing press. What's up with that? http://chum.ly/n/2be2b6

Monday, August 23, 2010

On the Way Down: The Erosion of America's Middle Class - SPIEGEL ONLINE - News - International

 www.spiegel.de/international/zeitgeist/0,1518,7124....html

This article gets one thing wrong, it says that in America the free market is king. No, in America big government and big business are king. They have formed an un-holy alliance and are unaccountable to either share holders or voters anymore but write regulations that strangle entrepreneurship and that form a moat around their socialistic fort. http://chum.ly/n/2b244d

'Atlas Shrugged': From Fiction to Fact in 52 Years - WSJ.com (expand)online.wsj.com/home-page

 online.wsj.com/article/SB123146363567166677.html?K...+Year

This article is over a year old, but like the book it mentions, seems to be even more timely now than it was when written. http://chum.ly/n/2b231a

Thursday, August 19, 2010

Entering a Death Spiral?: Tensions Rise in Greece as Austerity Measures Backfire - SPIEGEL ONLINE - News - International

 www.spiegel.de/international/europe/0,1518,712511,....html

Greece is trapped. Too much spending for too long. Too many people employed by the government. Too much debt. Too small a private sector to sustain the weight of the public sector. Same trap we are in. http://chum.ly/n/29eb8a

Wednesday, August 18, 2010

Friday, August 13, 2010

Foreign firms helped by U.S. bailouts: panel - Yahoo! News

 news.yahoo.com/s/nm/20100812/ts_nm/us_usa_banks_ba...out_4

"...the panel cannot determine the ultimate recipient of most TARP bailout money...", a peek into federal transparency. http://chum.ly/n/2888da

Friday, August 6, 2010

Agflation fears as Russia halts all grain exports - Telegraph

 www.telegraph.co.uk/finance/comment/ambroseevans_p....html

While domestically we are worrying about deflation, it looks like we may be facing some inflationary pressures in the food supply chain. Twenty five percent of world wheat exports shut down--should have some pretty dramatic effects. http://chum.ly/n/2674a0

Sunday, July 11, 2010

Why the Wolf Introduction was a Mistake

The introduction of the Grey Wolf from Canada was, at worst, a strategic attack on several of Idaho’s rural industries, and at best is was a biological, economic and social blunder. It was first of all a biological blunder because the introduced wolf is a different subspecies from the wolf that was here. The wolf introduced from Canada grows in excess of 130#, its bite can crush the skulls of hound dogs so that their brains come out their eye and ear openings. One or two of these can take down a mature bull elk. The wolf native to this area did not have that size and power. Prior to the introduction of the wolves from Canada there were occasional sightings of our smaller native wolf. One occurred outside of Elk River in the ‘70s when a den was located by a resident of Elk River. He reported it to Fish and Game, but they assured him that the den did not exist and refused to come out and see it for themselves. After the game warden who received the report retired, he admitted that it was a lack of funding that kept them from acknowledging the existence of the small resident population. It would have cost too much to deal with since it would qualify as an endangered species. Ironic that the Endangered Species Act, in this case, sealed the fate of what it was supposed to preserve. Since wolves are highly territorial, the larger introduced wolves have probably killed off any remaining resident at this point.

I am sure that the biologists will deny all this as hearsay. They refuse to give credence to any reporting that does not line up with their political (and religious?) agenda. However, it has been my observation that the mainstream biological assertions have frequently been proven false. The claim that wolves primarily attack the old and the sick and are therefore necessary to maintain the health of the elk, moose and deer is simply a lie. Wolves and other predators are opportunists and savor the young and tender. Nor do they consume all that they kill when game is plentiful. Idaho sportsmen have well documented how the wolves will attack cow elk and eat only the fetus out of them, in some cases leaving the cow still alive and struggling when they are done with the favorite parts. There is no reason to believe that wolves and elk can coexist in Idaho’s mountains, and our mountains are the only elk habitat left, for the most part. Snowmobilers have been cautioned against disturbing elk during the winter, since any disruption to the elk during the winter decreases their chances of surviving through till spring on critically low reserves of fat needed to keep them warm and alive. As far as disturbing elk and stressing animals, I doubt that snowmobilers hold a candle to a pack of wolves. Conditions can also come along that favor the wolves over the elk, moose, and deer. When the snow is deep and develops a crust that supports the wolves and not the members of the deer family, it is easy pickings for the wolves as their prey flounders helplessly.

With the disappearing elk herds, also go the livelihood of our big game guides and a good share of our outdoor recreation industry. In and out of state hunters spend a lot of money on food, lodging, supplies and licenses. As the elk disappear, so does most of that business. And the rural economy takes another well-placed hit.

But the recreation-related businesses are not the only ones under attack in this case. All the Idaho residents who get a good part of their annual protein from hunting and enjoy some good clean sustainable family recreation are also paying dearly. How many more years will we be able to hunt elk or moose given the current trends?

Also on the sacrificial altar are Idaho’s rural cattlemen. These guys are not whiners, so you may not hear much from them. Nor does the press care about them/give them coverage, as they mock the idea that the wolves are creating an emergency in parts of Idaho. I have talked to ranchers in the Riggins area who have lost 30 to 40 head of beef a year to wolves for a number of years and are going out of business because of it. The reimbursements for the losses by the state have been insignificantly small.

To let out-of-state interests take out several of our industry segments, while we ignore it is a dereliction of duty. We owe our neighbors more than that kind of indifference. Jobs are not that plentiful. What are we going to do for a living, push paper for some federal bureaucracy near some sustainable housing project served by lots of public transportation? And who are we going to tax to pay for all that when we have eliminated much of the rural businesses, and continue to throw shackles on the wealth producing parts of our hollowed out economy?

Tuesday, June 15, 2010

You can't Borrow and Spend your way to Riches

What most people need to realize now is that our govt. is going to spend borrowed money until it runs out of places to borrow, then it will expand its printing program. When dollar users and holders realize that it is just a piece of paper managed by thieves the game will end. The economy has been propped up by ever expanding borrowing for decades and we have no idea how bad it really is until we run out of willing lenders. We do not want the people who bankrupted us in charge when the poop hits the fan. They will blame it on the free market and just grab the little freedom that we have left. All future wealth and privilege will be doled out based on political connections instead of hard work and honest business dealing if they succeed.

Thursday, June 10, 2010

The Free Market is the Grass-Roots Market

Liberals appear to believe that government creates wealth. The opposite is true. Private enterprise creates wealth. Workers are paid $20/hour only if they produce more than $20/hour in goods or services. Jobs appear only where that can be done. Resources and human labor are directed to where society is willing to pay for them. The free market is a grass-roots market where labor and resources are directed by the needs and desires of individuals. For government to do with central planning what the free market does with its dispersed/distributed power, it would need infinite knowledge. How else would it be able to analyze all the needs and desires of all the citizens, balance that knowledge with available resources and efficiently direct human and physical capital to where it does the most good?

Even the private sector jobs that are created in response to public spending are doomed. Any unnecessary public spending goes where the private sector would not have sent it. The jobs created in response to that public spending are therefore dependent on continued stimulus for their survival. A good case in point is the construction, real estate and lending boom-gone-bust created by Greenspan’s ultra-low interest rates supported by federally mandated liberal loan policies. The subsidy to debt was a subsidy to housing/commercial real estate, which created the unsustainable. Let’s not keep making this mistake.

When I brought up the free-market to a UI professor, he sharply told me “don’t talk to me about free markets, I am a finance prof”. Well, I still have some questions for you. Have you even read the Austrian Economists? Why did the Austrian/free market economists predict things like the housing boom/bust while you Keynesians didn’t see it coming? Why are you not sounding the alarm on the public spending trap we are getting ever more securely lodged in? European countries are at the point where their debt will be downgraded if they don’t cut public spending, and they will face downgrade if they do cut public spending because their economies are now so dependent on it. It is an ugly place to be and we are only different in the sense that we hold the world reserve currency and will try to print our way out of the mess we are in. Even a Ph.D. should know where that ends.

Saturday, June 5, 2010

Healthy Business is the Key

Contrary to the assertions of some, I have not endorsed any drastic cuts to education; I would like to see education thrive. My major concern has been that we preserve the private sector business activity that ultimately funds all government spending. The idea that more and more public spending will drive us out of this long-term economic downtrend is seriously flawed. According to USA Today 80 percent of 2009 college graduates moved back home with parents. This needs to change. If we are not business friendly we are not education friendly. You cannot have the structure of government without healthy business supporting it.

I do intend to support reforms to public education that increase parental/local control, educational choice, and financial accountability/transparency. Reforms like the MAPP bill passed last year which allows students to challenge classes and move through the curriculum faster, or reforms that give parents more choice like what was done with Charter Schools. But, no, I have no plans to pull a chain saw out and use it on education. I would like to keep the chain saw busy on trees so that we do not have to use it anywhere else. Since govt. funding ultimately comes from logging, farming, ranching, mining, manufacturing or our recreation industry, protecting these things protects the whole system supported by them. And it is high time we stood up for our basic industries, our jobs, our friends and neighbors. We need to stand together in Idaho and defend our right to responsibly use our resources.

A related threat to the UI and some of our local schools is the liberal elitist anti-business attitude of some in Moscow. This unfriendly attitude which rejected SEL, Buck Knives, James Toyota, Wal-Mart, and LCF Enterprises is costing more than we can quantify and is anti-education.

Wednesday, June 2, 2010

Just Something to Think About

"The problem that governments face today is that they cannot depreciate their money fast enough to keep their debt loads “affordable” without running an ever increasing risk of wiping it out as a viable media of exchange. Their choices are quickly narrowing down to only two. Either start cutting spending drastically in REAL terms or face the collapse of the “legal tender” which is the source of their power. There is a third choice -- habitually resorted to by governments at the end of their financial tether -- war." - Bill Buckler, The Privateer, May 30, 2010

Tuesday, April 20, 2010

TEA Party / Liberty Rally

photos courtesy of Daniel Foucachon
April 15, 2010 - Friendship Square, Moscow
What a great day for a rally! Over 400 liberty-loving people turned out to celebrate the principles of freedom, liberty and limited government.

Gresham stepped onto the stage after a heartfelt endorsement by Ethan Wright (board member of Palouse Liberty Project) with a crowd-rousing greeting.  "We need to be peaceful, but we don't need to be quiet. Let's hear it for Liberty! "

And over 400 voices responded with heart and spirit, letting loose a huge cheer, the first of several to erupt as Gresham shared how he embarked on the journey for elected office and the importance of getting involved on a local and state level.

Speaking of which, if you haven't yet clicked on the 'be a part of it, Volunteer'  button in the right sidebar, will you do so today?  Latah County needs liberty-minded people to step up and join the battle.  Gresham is willing to serve in Boise, but he needs the good people of District 6 to stand with him.  That button will take you to a form, where you can indicate the different ways you can help.

And if you haven't yet donated to his campaign, would you please give it serious thought?  Unseating an entrenched incumbent is a difficult task requiring resources and a groundswell of grassroots support.  Even small donations add up, and Gresham is grateful for every single dollar invested in the effort to send a strong, conservative voice to Boise.

Thank you for your support, Latah County voters!
On May 25th, vote Gresham Bouma,  For Liberty.  For the People.

Below are Gresham's Rally remarks:


I don’t know about you, but I’ve noticed a few problems with our government lately. Here is a little list: our country is being bankrupted by the political class, industry is being driven overseas, our freedoms are being turned into slavery, the burden of government is growing even as the private sector is shrinking, government reporting is full of fraud, transparency a broken promise, big government bailing out corrupt big business with taxpayer money, rural Idaho itself being attacked through the introduction of the wolf, and the list goes on.

In the face of all that, I felt helpless. I had no ability to impact DC. All the phone calls, e-mails were falling on deaf ears.

I decided that trying to change DC directly was a waste of time. By myself I was one meaningless voice with no leverage, and DC was a stronghold. I concluded two things: 1) that it is time for all of us who love our country to become much more engaged, and 2) we needed to use the state to impact the federal government.

I looked for someone to support to send to our state legislature, someone who understood that almost every problem I was seeing was solved if we simply followed the Constitution. I was not seeing what I hoped for, so engaging for me meant running for office to join with others to assert Idaho’s interest in the Constitution.

We need to demand this of our state representatives: that they make Idaho a line of defense for “we the people”.

Those responsible for putting us where we are need to go. We need to replace them with those who will protect the unalienable rights to life, liberty and property. We need to hold our state and local governments to these old standards that define the purpose of government. It is time for phone calls, letters and e-mails to our state officials. Let's let them know that the people of Idaho want some protection. If the states will do their job we can win this battle. But it won’t happen if we all don’t engage. 

I am excited. We can do this! All across this great land people are waking up to the importance of state sovereignty.  They need our help, and we need theirs. Let's change Latah County for freedom. If we change Latah, we change Idaho. If we change Idaho, we are changing the United States.

May God Almighty and His Son, my Lord, grant us success.
Gresham Bouma,
4/15/2010 Tea Party Rally
Moscow, Idaho

posted by P. Bauer
Campaign Manager


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Sunday, April 18, 2010

Unalienable Rights and Rule of Law

Unalienable rights are fundamental to our system of government. They were the justification for our Declaration of Independence. It was in defense of these rights that our founding fathers risked and gave their lives. The same principle that made these rights unalienable gave us what we call the “rule of law”. Both unalienable rights and the rule of law are the result of believing that there is a set of moral laws that exists above all men and all governments. Our founding fathers understood the Ten Commandments to be a summary of this moral law. Therefore, the Commandments, and Christianity itself, provided the foundation of our system of government, and our system of justice. Individual rights are a product of Christianity because first of all God made man in His own image—giving dignity to the individual; God also says that He is the defender of the powerless, the weak, and the vulnerable—ultimately He will see that justice is done; and God's moral law applies to all of the human race from the most powerful to the least. The attack on this philosophical basis for our govt. has come from the humanist philosophy and its Theory of Evolution. The Theory of Evolution gives you no basis for individual rights or a rule of law. The individual does not matter, only the species. Compassion, care for the weak , helpless, aged, handicapped and/or powerless are not encouraged since they contribute only to the weakening of the species or wasting of resources. There are no moral absolutes, no ultimate accountability to a higher authority. It should be no surprise at all that we witness the “rule of law” being violated and our system of government being dismantled before our very eyes. We have destroyed its foundation and are left with the racist Darwin and his admirer Marx to guide us.

Thursday, April 8, 2010

No More Water in the Beer

I have been sounding the alarm on our debt/spending/money supply problem since I started writing letters to the editor.  I believe Ron Paul said it best: that if we could really continue what we are doing with our money indefinitely, Americans would never have to work again.  We would just supply the world with currency, and they would support us for it.  But we are like a brewing company which is continually watering down its product, eventually the patrons will notice.  No matter how drunk they are.  Even if they want to defer the hangover as long as possible.  You get too liberal with the hose and their demand for what you are selling will dry up.  All it takes are a few loud, belligerent complainers and the party is over.

The implications of no longer being able to move tomorrow’s spending into today are serious.  We would lose the subsidy to our lifestyle that we have come to rely on over the course of decades.  To go beyond that and actually begin to pay down our debt would be even more of a challenge.  But to ignore it all and continue to print more dollars to lend to ourselves is a cheap trick that will eventually be exposed.  I have read that financial prudence is not a winning platform and therefore America will continue its degenerate path; but I believe that there is a common-sense sector in our society that recognizes that governments are incapable of miracles.  They know that Madoffs eventually get punished and Enrons are exposed, but not without a lot of innocent people getting hurt along with them. 

It is time to get rid of all the bums that have perpetuated the fraud and theft that this amounts to, and vote people into office that have some foresight and integrity.  It is time for leaders who won’t spend us into poverty, regulate us into immobility, all while making themselves rich.  Let’s change the leadership in this country starting at the state and local level and work all the way up.  It is time to opt for the hangover instead of the blood poisoning.

Vote Bouma for Idaho Senate.

Monday, April 5, 2010

Dark Days

We as a nation are facing some of the darkest days in our short history. At question is whether we will survive as a free people. Threatening our existence are mountains of debt, of a size never before seen in all of world history. When I was still in college more than 25 years ago, I was assured that government spending could grow indefinitely, as long as it grew at a slower pace than the economy. Now decades later we can look back and observe the results. Our federal government uses off-budget spending, government sponsored entities, and other “Enron type” tricks to mask its true spending. Economic growth has averaged around 3% for the past 25 years. During the same period total federal government debt including government sponsored entities, off budget spending and the un-funded portion of Social Security, Medicare and Medicaid has grown an average of 9.8%.

When examined more closely, in the ‘60s each dollar of new debt added almost a dollar of economic growth. However, as the debt load mounted each dollar of added debt resulted in less and less growth to the point where in the third quarter of ’09 the relationship turned negative. This rapid growth in total debt accompanied by a shrinking response in economic growth necessarily proves that the Keynesian theory of economics, on which much of our government action is based, is invalid. Deficit spending is harmful, not helpful like the government and press would have us believe. Recent history proves it. What will happen if the economy continues to stagnate, tax revenue declines, and government spending continues to grow unchecked?

Thursday, April 1, 2010

Hey all you Liberals out There, Innoculate Yourself with a Little Freedom

One reason most of us are concerned about Healthcare Reform is because it represents a tremendous loss of our liberties, our personal control over health decisions.  To illustrate this we have only to review the recent swine flu hype.  It was apparent even in the initial breaking news on the “pandemic” that it was being presented as a far greater threat than it was.  As it developed, I heard rumors of mandatory vaccinations being promoted.   The rumors were a definite reality in the liberal state of New York, which attempted to require that all health care workers receive an inoculation.  At the national level the scare of H1N1 was fraudulently promoted, with the Obama Administration linking up with big pharma to push a multi application set of vaccinations.

Now, we can debate the merits of vaccinations, but in a free country it is a decision that is made by the individual, not the state or its bureaucracies.  In a free country you would not see a pharmaceutical industry protected from all liability related to a potentially dangerous product.  As you see power being consolidated at the top, be aware that big government responds to money and lobbying.  It necessarily has to rely on lobbyists to do what it does.   It does not even have time to read the regulations it approves, so how could it be authoring them?  The bottom line is, if you are in favor of ideas like mandatory vaccinations being once again employed on a national level, then empower the bureaucracies and monopoly-sized businesses with your vote.  If you think that it should be your own choice I would cast a vote for freedom.

Friday, March 26, 2010

Know the Enemy

It is time that we all knew what Saul Alinsky taught.
It is time that we all read Karl Marx.
It is time that we understood the methods that Cloward and Piven promoted.

If we don’t know them, we won’t recognize them, and we will not understand the objectives of the enemy. The objective of every master of the left was the overthrow of the capitalistic system of government. They are on the verge of victory and we don’t see it because we think that they are “just wrong, not evil”. Alinsky, Marx, Cloward and Piven were not just wrong, they were evil. The murder, destruction and misery that Marx alone inspired is beyond estimation.

We need to understand and consistently apply the principles of limited government that our founding fathers risked their lives for. We need to weed from our ranks men who do not understand either the problem that this country faces nor the solution that it desperately needs. They neither perceive the methodology nor the objectives of the enemy. They are like generals in constant retreat who don't recognize it and don't know how to reverse it.

We need to realize that the time is short, I only pray that we are not too late.

~Gresham