Post from greshambouma at CHUM.LY

Response to the Idaho Attorney General's Opposition to Nullification

I think we should take our attorney generals caution about the dangers of a patchwork of federal regulation seriously. Just think of it! There would be parts of the country free of the economically smothering presence of the federal bureaucrats, and other parts in which businesses could operate in greater freedom. Just think of the confusion that would introduce in the legal sector. And what about the inequitable distribution of employment as the more free parts of the country recovered and the rest went to Hell in hand basket? It just simply would not be fair to let central planning develop this kind of inconsistency. But wait. Are not over 700 entities granted waivers to get out of Obama Care? That sounds like tremendous inconsistency already. Is that not already a patchwork, when the law, which should be blindly and consistently applied, is only applied to those who do not have the political power to get from underneath it? Since it takes political pull with this administration to get that waiver, it looks like some of the same bunch that helped craft the bill are getting exempted, just like the legislators themselves!

I view nullification as a win-win for the federal and state government. Look, the federal government needs to cut at least 1.5 Trillion from its annual budget just in order to break even. State nullification helps them identify savings, and it helps the states create a business atmosphere in which people can get back to work. Maybe western states could begin to develop their energy resources more freely, before the Middle East blows up entirely and America's transportation grinds to a halt because we have allowed our resources to be placed out of reach by omnipresent federal bureaucracies.
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Post from greshambouma at CHUM.LY

Paulson's bet is not so much a bet on gold as it is a bet against the dollar, or maybe against all fiat currencies. Remember last time he won big it was on the implosion of the federally created housing bubble, this time it is dollar trouble that he is making a killing on. I harbor no ill will for him, but George Soros is a different story, since he likes to actively topple regimes and profit handsomely by it.

John A. Paulson Makes $5 Billion Betting on Gold -  www.nytimes.com:  www.nytimes.com/2011/01/29/business/29paulson.html...6mSqA
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Post from greshambouma at CHUM.LY

China gets upset as they see the US pull ahead in the race-to-the-bottom in terms of currency valuation. Seriously, we are managing our money, and our spending in general, with no more discipline than your typical third world country. Certainly we are introducing instability into our own currency and therefor into world markets with our quantitative easing (unrestrained money creation). Whether we are solely responsible or not we will be blamed for inflationary pressures throughout the world.

China rating agency blames U.S. for credit war | Reuters:  www.reuters.com/article/2011/01/28/us-china-usa-ra...10128
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Post from greshambouma at CHUM.LY

Marc Faber is a highly reputable economist/financial advisor.

Marc Faber's Most Provocative Interview Ever: Compares Obama To A Prostitute, Goes Long Treasurys | zero hedge:  www.zerohedge.com/article/marc-fabers-most-provoca...surys
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Post from greshambouma at CHUM.LY

The Bank of England governor told the truth. Something we are not getting from our officials.

My Blog:  kingworldnews.com/kingworldnews/KWN_DailyWeb/Entri....html
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Post from greshambouma at CHUM.LY

Combine this info with the serious continued contraction in housing and you see why the banks cannot admit to the real value of the assets they hold. Way too many would be insolvent. The market value of bank assets are being trashed by the implosion of the real estate market following, of course, the period in which government policy artificially inflated the market in the first place.

As Bankers Kill Off Mark-To-Market For Good, Former FDIC Chairman Gloats | zero hedge:  www.zerohedge.com/article/bankers-kill-mark-market...loats
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Post from greshambouma at CHUM.LY

When nations engage in a competitive race to the bottom in terms of currency valuation, eventually everyone wins (actually loses). Even the bankers are starting to warn each other now. Government borrowing and spending moves future growth into the present. We have done it for decades, and the future is at our doorstep. Not only will we lose the growth, but much of our private enterprise has been built around an unsustainable paradigm of government spending. If we avoid the creative destruction we need to go through to develop a healthy economy we will never have one. We are at the point where we need to choose between the agonizing DTs or the fatal blood poisoning. Which will America choose?


IMF chides US for fiscal folly - Telegraph:  www.telegraph.co.uk/finance/globalbusiness/8281897....html
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Imposing price caps guarantees higher long term prices as producers go out of business because they can't pass on higher input costs. Price inflation is showing up in commodities worldwide. Commodities are the necessities of life, so don't be too complacent when assured that inflation is in check here in America. Energy is an input into almost everything. Our government's war on energy production will almost certainly contribute to energy driven price inflation here too. Real wages can continue to deflate while necessities continue to inflate. As the last paragraph of the article notes

"elimination of administrative barriers to business - that's the best solution to the problem ". For Idaho that would mean limiting or eliminating the influence of the Federal Bureaucracies.

Russia Imposes Inflation-Driven Price Controls: Will Use Price Caps On "Socially Important" Commodities | zero hedge:  www.zerohedge.com/article/russia-imposes-inflation...ities
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With Fed, State & Local spending ringing in at around 46% of GDP, you've got to ask yourself

what happens when a parasite outgrows its host?
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Irish government falls and calls 11 March poll - Europe, World - The Independent

A little domino is wobbling. America continues watching ESPN.

   www.independent.co.uk/news/world/europe/irish-gove....html
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Post from greshambouma at CHUM.LY

Yes, we did produce a near-perfect republic. But will they keep it? Or will they, in the enjoyment of plenty, lose the memory of freedom? Material abundance without character is the path of destruction. - Thomas Jefferson
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FinanceAndEconomics

Are we really in a recovery? I have argued before that GDP is an enabling fraud. This guy explains some of the nuts and bolts of how and why it is pure garbage at indicating true recoveries.

   www.financeandeconomics.org/Articles archive/2011.01.12 USDGP.htm
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Insider Selling To Buying Ratio

For weeks insiders have been fleeing the market like rats a burning ship. What does that tell us about the latest rigged recovery we are supposed to be in? Recoveries come from the production of tangible wealth in an economy, not from government manipulation. We need freedom, not intervention. Read Economics in One Lesson by Henry Hazlitt.

  DIV/0, As No Insiders Bought Any Stock In Prior Week | zero hedge:  www.zerohedge.com/article/insider-selling-buying-r...-week
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Not Only Commodities are Signaling Hyperinflation

Inflation has a funny way of showing up selectively here and there in the economy. You can have housing deflation, and wage deflation and still have market inflation and commodity inflation. Wages can go down while food and energy go up. Check out this chart which compares the inflation of the money supply to price inflation in the stock market.

   www.fgmr.com/not-only-commodities-are-signaling-hy....html
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Post from greshambouma at CHUM.LY

Why The Chinese President Called Dollar system a"Product of the Past”


When America became the stewards of the world reserve currency, we gained a huge responsibility. With it came the potential to abuse our position for personal gain. And abuse it we did. In fact we have been abusing it for at least 30 years. It gave us the ability to expand our money supply at a much higher rate than the rate of growth in our economy without generating the inflation that it would have created otherwise. But the world has woken up to our abuse. It has woken up bruised and bleeding, tired of the way it is treated and is starting to want out of the broken relationship. The problem is that this will be one of history's most painful divorces ever. No one will get out of this relationship whole. Possibilities only whispered about a year or two ago are being discussed openly by world leaders. Gold is being remonetized by the reserve banks, as indicated by their change in policy from being sellers of the ancient relic to active buyers into one of history's longest commodity bull runs. It is a run that has a long way to go if gold has a part to play in monetary systems in the future.

The rules are changing, so the world is changing. Our corrupt politicians broke trust with us and with the world at large. You can't really blame them though. It was a trust that begged abuse. It was a trust that never should have been given. It was putting the wolf in charge of the sheepfold. I guess we must have read"Never Cry Wolf” and believed it too. When the dollar goes to its intrinsic value, what fiat currency will the crowds turn to? Who are you going to trust if the once God-fearing USA proved that the temptation was far too great? Obviously, commodities will likely play a much bigger roll in backing any unit used for international trade in the future, and the commodity that does that best still glitters.
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Oil price heads for $100 a barrel on Alaska leak - Telegraph

With energy costs heading higher, jobs still scarce and the dollar weakening it is more critical than ever to get government policy out of the way of developing our own domestic energy. We are headed toward a world of economic hurt, and the most critical and obvious step right now is to allow ourselves to become as energy independent as possible by getting the handcuffs off our domestic energy industry. For this to happen it probably must come from the states, not the central planners in D.C.

   www.telegraph.co.uk/finance/newsbysector/energy/82....html
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Home price drops exceed Great Depression

It is getting harder for the press and government to put a happy face on the depression we are spiraling down into. We won't have a real recovery until we have private sector job growth that is not dependent on government spending.

  Zillow | Reuters:  www.reuters.com/article/idUSTRE70961E20110111
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The dam breaks in Portugal – Telegraph Blogs

The world-wide credit crisis rolls forward. Of critical note is what Ambrose says at the very end. The bale outs benefit the banks and come courtesy of the taxpayer.

   blogs.telegraph.co.uk/finance/ambroseevans-pritcha...tugal
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Virginia Creates Subcommittee To Study Monetary Alternatives In Case Of Terminal Fed "Breakdown", Considers Gold As Option | zero hedge

With the central banks around the world re-monetizing gold (abandoning the dollar) by buying it for reserves, it looks like at least several states are considering the same.

   www.zerohedge.com/article/virginia-creates-subcomm...onsid
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Federal foray Into Student Loans

Currently the only category of debt growing is student loans. It begs the question: why did the government step in to the student loan market and goose it? It is not because it will turn the economy around. When the average student graduates with the economy still in the doldrums it's been in for ten years, they won't have jobs to round out the knowledge they gained in college. No, the only reasonable explanation is that the left is trying to create dependency so that societies most volatile sector will be used to demanding what they want from government. The left has observed Europe and likes what it sees. Unreasonable? How could it be any other way? The left always observes Europe and likes what it sees. They constantly point at Europe's laws, economic policies, healthcare systems, etc. and say that the US is the only advanced, modern country to not...

To grow any category of loans right now could not be because you want them paid back. The market clearly has way more debt than it can service, so lets reject that possibility. No. It is just one last area in which the hard left can generate some more instability. And the social program that"higher education” has degenerated into is the tool of choice.
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Chinese company eyes Boise | Boise, Garden City, Mountain Home | Idaho Statesman

Getting Sold to China

I have some questions about Idaho's Project 60. It is supposed to bring jobs to Idaho by taking advantage of a Federal program that grants permanent residency to foreign nationals. It apparently comes with special tax exemptions for the foreign firms. With China recently looking to reduce its exposure to US debt, it looks like a great way for them to instead buy our country right out from under us.

In order for China to maintain its trade deficit, it has to do something with the excess dollars since it is not willing to let its currency strengthen until it is buying from us just as much as it is selling to us. If it won't let its currency strengthen, and it is no longer interested in our IOUs, what is left is to come over here and buy our land and capital assets. And this is what Idaho's Project 60 facilitates. It is a project that our own government streamlines with a federal visa program that grants permanent US residency. Top Idaho officials have been traveling to China selling Idaho as a resource rich plum ready for the plucking. It looks to me like our own government makes it virtually impossible for legitimate citizens to do business with its prohibitive regulatory and tax environment, while it drops its skirt for foreign exploitation and ownership of our resources.

Please read the article. Chinese govt. owned contractor building the fertilizer plant in SE Idaho? This is how we will"reinvigorate” our"American industrial base” according to those promoting this? We are giving China hassle free landing rights into Idaho's major airport? Isn't this airport used by our own Idaho Air National Guard? And isn't it just a few mile away from the Mountain Home Air Force Base? The Bible says that the borrower is the lender's slave and are we getting sold on this one.


   www.idahostatesman.com/2010/12/31/1472023/chinese-....html

American industrial base,
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Shock Video

Check out this Islam apologist in our own country. But remember, all religions are the same, all value systems equal, because that is the revelation of the left.

  Muslim Student at UC San Diego Expresses True Opinion:  visiontoamerica.org/story/shock-video-muslim-stude....html
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National Inflation Association | Preparing Americans for Hyperinflation

The Food and Agriculture Association has reported that food prices have hit an all-time high. Go to the link below for the story.

   inflation.us/blog
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ROBERT SHILLER

None of America's fundamentals have improved in the past year, so don't expect improvements in the coming year. The socialism America has been embracing for the past 100 years has matured into bankruptcy as well as markets manipulated from one bubble to the next.

  If House Prices Keep Falling This Fast, The Economy Is Screwed:  www.businessinsider.com/robert-shiller-if-house-pr...10-12
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