From what I read the United States is now guaranteeing $7.4 trillion in loans and bailouts and there is no end to this rising figure in sight. Our whole national debt since the nation was born is only $10 trillion. So if what they are doing does not work they could easily double the national debt in a year or two and we would meanwhile still be in a depression. Under those conditions the dollar would be finished in the world and America would be finished as a viable nation.

These people are betting the whole farm that they can get corporations and banks back in the black. If they continue to lose money many trillions of dollars will have to be created out of thin air and the dollar will be devalued until it reaches the price of toilet paper.

I think you should be informed about what the issues are and what is really going on. The Fed and the Treasury have been given unlimited money to go “all in” on this last bet to save our economy and they are putting up the whole USA as their collateral.

It was high stake gambling that got us in this mess in the first place. Almost all banks and investment institutions were gambling 20 to 50 times the value of their corporations on hedge funds and derivatives. They kept almost nothing in reserve to cover their loses thinking they could not lose. They borrowed twenty to fifty times what their corporations were worth in order to play at the tables. When the sub-prime market tanked and they lost a few bets they were too leveraged to cover them and they were bankrupted.  Since almost all financial corporations are now in the same boat they are all going bankrupt. The recession and tight lending is also making even the non speculators go bankrupt because so much wealth was removed from the system that these corporations cannot pay or even borrow money to keep their contract commitments. So the government is now stepping in and covering all corporate debt by the government. However, the government has no real money so they are using trillions of dollars of taxpayer IOU’s.

Those who gambled created huge bubbles that should never have been blown. The deflating of the bubbles is removing much wealth that really existed only because of unrealistic profit expectation. The government should have let these go out of business because once the government gets involved they insure and encourage additional unrealistic speculations.

If the government losses this final bet and the economic system keep deflating it will bankrupt the government of the United States and our government will either default on its debts or they will have to pay off their debtors with monopoly money causing a hyper-inflationary spiral that will bring a hyper-inflationary depression that could only be stopped by complete economic collapse and more depression. That is why they are in a panic.

If the government wins the bet it will be sort of business like usual but the loans from the government still have to be paid back and corporations can only do this by rasing prices, cutting workforce, and cutting pay and benefits. Thus, they will reduce the standard of living for stock holders, wage earners and pensioners and that of course lowers government tax revenues. So government deficits would stay high bringing higher interest rates for anyone still stupid enough to risk lending to the United States. If the United States keeps spending more than it collects, sooner rather than later it will bring a devaluation of the dollar and lower standards of living in the United States.

It is rather strange to me that the same people who allowed, encouraged and participated in the leveraging and speculation of banks and corporations are the same people that the government is now trusting to fix the problem. That is also true of Obama’s economic team. These are the same people with the same thinking that helped cause the problem in the first place. Now we should all trust them to go to the roulette wheel and bet the farm that the ball will fall on black? The facts are, if it falls on red we are finished as a viable nation in this world and if it falls on white it does not mean there will not be another worse crises a little down the road.

One thing I find incredible is the man who ran on “change” is putting all the same establishment people into power. You cannot get real change from the entrenched establishment elite. If they knew anything we would not be in this crises. Instead of leadership in a Democrat controlled Congress you now have a Congress that is giving out their responsibilities and unlimited power to Treasury bureaucrats and a Federal Reserve bank that is owned by the very banks it is bailing out?

One way of making Obama change is to give him a dollar. He will give you ninety cents worth of promises and ten cents in change. I always warn about “Lips Law”. Which says, that whatever a politician promises when running for office you will get the opposite after he takes office.

Obama promised change but you will get the same tired Democrat polices of the liberal Left. Probably much like that of Jimmy Carter. Obama’s slogan was “yes we can” but he will find out that he cannot with all those negative thinking people in the United States. Therefore, I predict that by the last year of his first term. That Obama will establish a national year of positive thinking.

Everyone will be told Oprah’s “Secret” that we get what we believe and what we speak in existence. Then for the next year you will only be allowed to say positive things about Obama so he can get reelected unopposed. In his second term he will create a new position more powerful that Hilary’s. It will be called Secretary of Divine Counsel. All hail Oprah and her divine earthly creation Obama. OO

I am adding this paragraph and link to a speech Dick Morris made because his speech really explains everything I said and more in a way that anyone should be able to understand. Believe me he gives a pretty scary picture. Like future hyper-stagflation, and a national health care system that will ration health care for the elderly even after Obama is out of the picture. Morris also thinks Obama will make the same tax mistakes of Herbert Hover. He says you are absolutely giving Barack Obama and Nancy Pelosi and Harry Reid a total blank check to pass anything in the world without debate if they get the 60 seats in the Senate. He thinks the runoff in Georgia will decide that. I guess Morris thinks Minnesota will be stolen in the recount. I say they already have the 60 votes necessary to not have debate because the two independents will vote with the Democrats and if necessary the Democrats will just change the rules of the Senate.

President Bush, Obama and McCain and most of the Congress and the Senate all sang the Hank Paulson blues to America. The 700 Billion figure was just a figure pulled out of thin air because they did not think they could sell over a trillion dollars to the American people. At first they did not have the votes but then they added $150 billion in pork to buy the votes they needed. Now Paulson is taking the money and doing the exact oppose that he said he was going to do with it. Much of the money was given to a few bank who did not need it but had no choice but to take it. On the one hand they are telling these banks that they forced to take money to tighten up there lending requirements and on the other hand they are saying they need to lend out more money. The 46 Billion loan to AIG is now up to $150 Billion. The Fanny May Freddie Mac bailout is going to cost much more than they ever let on.

There will be hundreds of hands out for the remaining piece of the money pie. Taxpayers will be given the choice to make more money pies or lose their jobs. The bill to the taxpayers in any case will probably exceed two trillions dollars and that will not include the cost of falling government revenues in a recession. Then the government thinks they can finance trillions of dollars in additional debt to world suckers at less than the world inflation rate? More likely the government will be forced to just print additional dollars to pay the debt which will make the dollar crash like a rock bringing the U.S. a much greater financial disaster.

This is what happens when Americans let government morons try to manage things like they actually know what they are doing. If these people had any brains to start with they would not be working for the government. Now Americans will put a President in place who wants the government to manage just about everything ranging from health care, to energy, to climate. It seems to me the American people deserve the Demented Delusional or Dumb Club Award for knowing nothing, being the most gullible people on earth and trusting their own future to these morons running the Federal government.

Hank Paulson, naked emperor (OneNewsNow.com)

The White House says: “We’ll just trust our treasury secretary to implement the program.” President Bush insists “government’s role will be limited and temporary.” Meanwhile, Democratic Rep. Barney Frank is shrugging off the lack of bailout disclosure by both the Federal Reserve and Treasury. But as I reminded readers before this latest bait-and-switch admission, Hank Paulson is not to be trusted. I repeat:

This is the man who proclaimed the subprime crisis “largely contained” in April 2007; “near the bottom” in May 2007; and “largely contained” again in August 2007. This is the man who pledged that he had “no interest in bailing out lenders or property speculators” in October 2007 and couldn’t “think of any situation where the backdrop of the global economy was as healthy as it is today.”

This is the man who patted himself on the back for refusing to “put taxpayer money on the line” to rescue Lehman Brothers on Sept. 15 — and then turned around the next day and engineered the $85 billion taxpayer-funded bailout of AIG. This is the man who vowed he had “no plans to insert money” into Fannie Mae and Freddie Mac — and then turned around and committed $200 billion in capital and credit lines to those corrupt, bloated, crumbling institutions.

This is the man who declared that “the worst is likely to be behind us” in May 2008.

Full Article

This article uniquely lays out the whole argument against Obama for those with eyes to see. It is not just about Obama being a Manchurian candidate. It is about Americans departing from God to provide their needs and instead expecting government to provide their wants by taking it from others. Those who covet their neighbors goods produce the class-warfare philosophies of Marxism/Communism/Socialism. The people who do this end up destroying those who make wealth and put themselves into a life of poverty and slavery to the very tyrants that they put in power. They get the leader and the government that they asked for and deserve. Will the majority of America’s take the Left path that has brought down many nations? It certainly now looks that way.

Yes, Barack Obama really is a Manchurian candidate

Obama, the Manchurian candidate

In the classic 1962 movie thriller “The Manchurian Candidate,” a man was programmed by communist handlers, and then emerged into the public arena as a hero, with a largely manufactured history, large parts of which were either obscured or changed. Then he was planted into a position of great influence, having been programmed to usher in tremendous change at the appointed time.

Barack Obama was programmed for years by his atheist, Muslim father, by the communist sex pervert Frank Marshall Davis, by con man Tony Rezko, by domestic terrorist Bill Ayers and others – most of all by black liberation theology screamer Jeremiah Wright. Obama’s resume is largely manufactured. There is a total blackout on his college years. His campaign obscures what he did as a “community organizer.” All his radical associations are denied or minimized. His miserable legislative record (voting “present” over 100 times to avoid taking a stand), his lack of achievement, his radical views and so on – all have been laundered through the magic of public relations into the near-sacred saga of “The One” who has been sent to serve, and to save, America.

Yet, as I have documented previously, John McCain rendered more genuine service to his country each and every day of those five-and-a-half years he endured in a North Vietnamese prison than Barack Obama has in his entire life.

In “The Manchurian Candidate,” several war heroes came back to America from abroad. But one of them harbored a dark agenda, lying in wait, secretly, until it could emerge and transform America.

America has a choice Tuesday between a genuine war hero and a genuine Manchurian candidate.

Choose well.

Full article

Here is what the governments are really worried about. Everything else has just been putting their fingers in the dike in the hope of stopping the speculative derivative ocean from breaking the dike. If they cannot keep the derivative ocean contained it will take down the whole world financial system. Derivative fright night may be upon us just in time for Halloween and nobody knows how many trillions may be at risk.

Coming Soon: The 600 Trillion Derivatives Emergency Meeting – Seeking Alpha

Current emergency meetings on banks and markets are still only in the stage where politicians and central bankers are bickering over how to create a few more hundred billions Euros and FRNs. But toxic MBS pale in comparison to the mushrooming growth of the derivatives market. According to figures released in the quarterly review of the BIS (pp A103) in September the total notional amount of outstanding derivatives in all categories rose 15% to a mindboggling $596 TRILLION as of December 2007.

Two thirds of contracts by volume or $393 TRILLION fell into the category of interest rate derivatives. Credit Default Swaps had a notional volume of $58 TRILLION, seeing the sharpest relative increase after a volume of $43 TRILLION a year earlier.

Currency derivatives reached a volume of $56 TRILLION.

Oh, and every grand balance sheet comes with a trash can. Unallocated derivatives with a notional amount of $71 TRILLION are looming over the heads of the disintegrating investment community too.
However You Look At It, This Is an Accident Waiting To Happen

The BIS review is a good way to grasp the dimensions long term monetary expansion has brought upon us. A net risk of $14 TRILLION compares with the annual GDP of the USA. Nobody, absolutely nobody can afford this tab in the case of an unorderly unwinding of this market that is roughly 12 times the size of the global economy. I conclude a lot more paper promises will be burnt in the coming derivatives tsunami. As a reminder, most of these contracts have been moved off balance sheets into under capitalized subsidiaries that profited from the good rating of the parent company. But in case of a default it is this nasty, nasty huge notional amount that becomes a liability.

As the vast majority of these contracts have no market, failure will come in the form of counterparty risk. This makes all the current emergency meeting a bit more understandable if politicians are already aware of the biggest bubble that may find no other way of deflation than a sudden burst. I base my sense of urgency on the rapid growth of the net risk in only one year, rising a stunning 30% at a time when the first signs of the credit crunch appeared.

Full article

I think Ann Coulter, Pat Buchanan and Harry Lamb wrote a couple of good articles that might tell you a few things about the root cause of the day of reckoning that is upon America and how it will also bring the next day of reckoning due to our massive deficit spending. I am not saying there were not other factors. This day would have come anyway due to the greed of many and the socialism of others but what Coulter, Buchanan and Lamb write about is a good part of the reason why this economic shock is now playing out before your very eyes.

They Gave Your Mortgage to a Less Qualified Minority, by Ann Coulter

Here are a few points in the article by Ann Coulter:

Under Clinton, the entire federal government put massive pressure on banks to grant more mortgages to the poor and minorities. Clinton’s secretary of Housing and Urban Development, Andrew Cuomo, investigated Fannie Mae for racial discrimination and proposed that 50 percent of Fannie Mae’s and Freddie Mac’s portfolio be made up of loans to low- to moderate-income borrowers by the year 2001.

Instead of looking at “outdated criteria,” such as the mortgage applicant’s credit history and ability to make a down payment, banks were encouraged to consider nontraditional measures of credit-worthiness, such as having a good jump shot or having a missing child named “Caylee.”

Threatening lawsuits, Clinton’s Federal Reserve demanded that banks treat welfare payments and unemployment benefits as valid income sources to qualify for a mortgage. That isn’t a joke — it’s a fact.

In 1999, liberals were bragging about extending affirmative action to the financial sector. Los Angeles Times reporter Ron Brownstein hailed the Clinton administration’s affirmative action lending policies as one of the “hidden success stories” of the Clinton administration, saying that “black and Latino homeownership has surged to the highest level ever recorded.”

Meanwhile, economists were screaming from the rooftops that the Democrats were forcing mortgage lenders to issue loans that would fail the moment the housing market slowed and deadbeat borrowers couldn’t get out of their loans by selling their houses.

Now, at a cost of hundreds of billions of dollars, middle-class taxpayers are going to be forced to bail out the Democrats’ two most important constituent groups: rich Wall Street bankers and welfare recipients.

Political correctness had already ruined education, sports, science and entertainment. But it took a Democratic president with a Democratic congress for political correctness to wreck the financial industry.

So it was not all about greedy lenders it is about Democratic Party socialist liberals pushing affirmative action lending plans and regulations that forced the lenders to make them lend to the unqualified.

Day of Reckoning, by Pat Buchanan

Here is a bit of what Pat Buchanan has to say on this issue and some of it is the same except Pat blames the liberal in both parties:

Had there not been a steady and constant infusion of easy money and credit into the U.S. economy by the Fed, for years on end, a housing bubble of the magnitude of the one that has just exploded could never have been created.

Had the politicians of both parties not coerced and pressured banks, S&Ls, Fannie Mae and Freddie Mac to make all those sub-prime mortgages, then to tie this rotten paper to good paper, convert it into securities and sell to banks all over the world, there would have been no global financial crisis.

Had they seen this coming and acted sooner, the Federal Reserve and U.S. Treasury would not today, like Henny Penny, be crying, “The sky is falling!” and the end times are at hand, unless we give them 5 percent of our gross domestic product to buy up suspect securities backed by sub-prime mortgages.

Looking at all the money being ladled out by the U.S. government to prevent a collapse, and the diminished revenue coming in, it is hard to see how America avoids future deficits that reach $1 trillion a year. These will imperil both the dollar itself and the ability of the United States, which saves nothing, to borrow from the rest of the world. The downsizing of America is at hand.

Yes, indeed, we have arrived at the Day of Reckoning for Uncle Sam.

Soviet-Style collapse in America’s future article by Harry Lamb

The meltdown in the financial markets has caused the finger of blame to spin like a weathervane in a hurricane. The underlying cause of the debacle, however, has been largely ignored. Driven by “progressive” Democrats and Republicans, the cause is the relentless shift from a free market economy to a socialist economy.

The piper must be paid. The question is whether to do it now – and let the chips fall where they may, or, to kick the can down the road and pay the piper later. The answer, of course, is to kick the can into the next generation, with another leap toward socialism. The bailout plan – whatever the particulars – is nothing short of a government takeover of the financial industry. The next president will have to sort it out and build the road toward future recovery or final disaster.

Barack Obama’s incessant drumbeat about the failure of the economic policies of the last eight years is either gross ignorance or, more likely, political blame shifting. The cause of the current meltdown is clearly the Democrat’s insistence upon giving federally guaranteed mortgages to people who could not afford them. Even now, Democrats insist, not on the minimum government involvement possible, but on adding all sorts of give-away ornaments on the bailout Christmas tree. Obama is also promising to take over the energy industry, the health industry, and to give tax credits and even refunds to some people with money he shamelessly takes from others. This is redistribution of wealth – pure socialism.

McCain may be only marginally better, but any deterrent to the Democrats’ determined transformation of America to unabashed socialism should be welcomed. Despite the U.N.’s declaration to the contrary, no person has a “right” to housing. If Democrats prevail and continue their pursuit of the U.N’.s goal of universal socialism, America can expect to experience the same total collapse experienced by the Soviet Union.

I said in a prior post that future budget deficits were going to go way up and It matters not who becomes President, the deficits will happen as sure as night follows day and if foreigners ever stop buying our debt this present crises will be nothing compared to the time when we can no longer sell our debt to the world. In the future we will have to do the bidding of the lenders (China & Oil rich nations) or face complete economic collapse.

“We The People” think you should monitor your lying mass media mouth.

By don Koenig

I do not know about you but I feel the new energy ads on TV are very offensive and totally un-American. They are saying that “We The People” are no longer asking but “demanding” that government go to very expensive and destructive all renewable energy sources like windmills in ten years. How dare they presume to speak for what “We the People” of America demand just because they have the money to buy mass media prime air time!

They are saying that We The People are demanding energy and environmental policies that only the environmentally naive, only those already brainwashed and only the brain dead could possibly believe. Those pushing this deception are those with vested interests using what they know are deceptive lies. These elitists are attempting to brainwash the American people with their lying mass media ads in order to line their own pockets. I think it is time for those with the money to counter with their own ads and present the plain unvarnished truth and expose these people for the dangerous radical frauds that they are.

This obvious fraud of acting like they are speaking for “We The People” should be illegal. If we allow self serving interest groups with deep pocket to brainwash all those who watch mass media with their own disinformation campaigns we will lose this nation to an Oligarchy.

Al Gore told us this three hundred million dollar ad campaign would take place and billionaire T. Boone Pickens has jumped on the global warming gravy train to further his huge investments in windmills and natural gas. Now we are seeing in their lying mass media ads how devious and dangerous these people can be when “We The People“ only hear in the mass media from the side of those who stand to gain from brainwashing us with their lying mass media campaign to America. 

Brainwashing by the elite rich through use of lying mass media must never be allowed in America or our representative Republic elected by “We The People” will be finished.

Here is another opinion by a blogger who wants Al Gore to stop lying on TV like he is speaking for the American people on other TV ad.

I heard Al Gore say the other day that his followers should now use civil disobedence to stop the building of new coal plants in America. He also said that individal state Attorney Generals should prosecute what Gore things is fraud. If anyone should be prosecuted for fraud it should be Al Gore with his lying movie and his lying presentations that are based on lies and fraud. Even the British Court indicated that when he tried to force his “Inconvenient Truth” move down the throats of all British school children. People better realize we are dealing with some very devious self serving people here.

I suppose you have heard about the trillion dollar bailout of bad debt and now hear the politicians on TV telling people that lack of government oversight and greed is to blame for the problem and how we now need bailouts and more federal government regulation to cure the problem.

Most of the same politicians talking today are the same politicians that supported the oversight conditions that created this crises in the first place. They were the ones who put the pressure on lending institutions to ease their rules so that just about any bad risk could get a loan.

They put great pressure on the mortgage lenders to establish easy lending programs for the poor and for  poor risks. But they are now passing the buck and saying the lenders were irresponsible and greedy. Sure, there was fraud and greed by the leaders but when you have government officials who are supposed to be in a position of oversight being the enablers of the greedy and making their practices the norm what should we expect?

It was government that eased the regulations on banks and brokers so that would not have to keep funds in reserve to weather a storm such as this and government allowed them to take those funds to the derivative casinos thanks to the policies of former Fed Chairman Greenspan.

These falsely optimistic idealistic liberals thought everything would just keep getting better and that there would be no more major downturns. These are the same people in government and business who never plan for recessions in their out year budgets. They live in some fantasyland or else they want to deceive the public that the out years will be better than any person living in reality could expect.

Some fools even thought we were post recessions because they thought the government now knew how to keep the economy expanding indefinitely. Ha ha. Nevertheless, we always had recessions and will again. These “financial wizards” are a good part of the reason why we always have budget deficits because they never plan for future economic downturns in their long term budgets. Most multinational corporations and local governments are doing the same thing and that is why when a down cycle comes they are in crises and need taxpayer bailouts.

Here are a couple of articles that explain some of what is going on.

The first article by David Limbaugh, talks about how the liberal politicians got us into the mess that we find ourselves in. They now think more of the same of the liberal big government polices will get us out of it. Ha ha.

The second article is by Pat Buchanan It gets into the stupidity of foolish and incompetent financiers and politicians. Pat gives some some history of past bailouts and our nation’s increasing debt burden in the future partly because of bailouts and partly because government and everyone else keeps spending more than they have.

Its getting close to Halloween and I know you all want to read a good scare story. Well learn what the banks and investment firms have been doing with your money and you will know why Washington and the banks are in a cold sweat panic and saying if the government does not bring stability the whole house of cards is going to come crashing down into the second great depression.

For a house of cards to fall it has to be a house of cards to begin with and this article about derivatives will take you on a tour of the house. After you read this article you will not only know everything you need to know about derivatives. You will also know why everyone in the know is turning white with fear long before Halloween.

There simply is no reason why a sub-prime crises would cause all these investment bank failures unless they have been doing something with your money that is very risky. Turns out they have. Instead of making sound investments with your money they have been gambling at the Derivatives Casinos. All these firms are now so leveraged on their next bet that any loss at the wheel of fortune makes them unable to pay their bills and if they cannot pay their bills other banks that are levered to the teeth because of their own gambling habits also cannot pay their bills and if they cannot pay their bills none of the others can pay their bills either and if none of the others can pay their bills there is no money to borrow for anyone in the nation.

Read about it for yourself but anyone who thinks the crises is over is not paying attention. Also take note that the following article was written before the announcement of the really frighting government bailout that was announced today to bail out all the derivative gamblers bad debts. Yeah, the government has to do this taxpayer bailout because all the gamblers were not gambling with their own money they were gambling with your retirement, insurance and investment incomes and everything else.

Next years Halloween fright night will be about the coming rapid hyperinflation that will bring you green toilet paper.

OpEdNews » It’s the Derivatives, Stupid! Why Fannie, Freddie and AIG Had to Be Bailed Out

Until recently, most people had never even heard of derivatives; but in terms of money traded, these investments represent the biggest financial market in the world. Derivatives are financial instruments that have no intrinsic value but derive their value from something else. Basically, they are just bets. You can “hedge your bet” that something you own will go up by placing a side bet that it will go down. “Hedge funds” hedge bets in the derivatives market. Bets can be placed on anything, from the price of tea in China to the movements of specific markets.

“The point everyone misses,” wrote economist Robert Chapman a decade ago, “is that buying derivatives is not investing. It is gambling, insurance and high stakes bookmaking. Derivatives create nothing.”1 They not only create nothing, but they serve to enrich non-producers at the expense of the people who do create real goods and services. In congressional hearings in the early 1990s, derivatives trading was challenged as being an illegal form of gambling. But the practice was legitimized by Fed Chairman Alan Greenspan, who not only lent legal and regulatory support to the trade but actively promoted derivatives as a way to improve “risk management.” Partly, this was to boost the flagging profits of the banks; and at the larger banks and dealers, it worked. But the cost was an increase in risk to the financial system as a whole.2

Since then, derivative trades have grown exponentially, until now they are larger than the entire global economy. The Bank for International Settlements recently reported that total derivatives trades exceeded one quadrillion dollars – that’s 1,000 trillion dollars.3 How is that figure even possible? The gross domestic product of all the countries in the world is only about 60 trillion dollars. The answer is that gamblers can bet as much as they want. They can bet money they don’t have, and that is where the huge increase in risk comes in.

Credit default swaps (CDS) are the most widely traded form of credit derivative. CDS are bets between two parties on whether or not a company will default on its bonds. In a typical default swap, the “protection buyer” gets a large payoff from the “protection seller” if the company defaults within a certain period of time, while the “protection seller” collects periodic payments from the “protection buyer” for assuming the risk of default. CDS thus resemble insurance policies, but there is no requirement to actually hold any asset or suffer any loss, so CDS are widely used just to increase profits by gambling on market changes. In one blogger’s example, a hedge fund could sit back and collect $320,000 a year in premiums just for selling “protection” on a risky BBB junk bond. The premiums are “free” money – free until the bond actually goes into default, when the hedge fund could be on the hook for $100 million in claims.

And there’s the catch: what if the hedge fund doesn’t have the $100 million? The fund’s corporate shell or limited partnership is put into bankruptcy; but both parties are claiming the derivative as an asset on their books, which they now have to write down. Players who have “hedged their bets” by betting both ways cannot collect on their winning bets; and that means they cannot afford to pay their losing bets, causing other players to also default on their bets.

The dominos go down in a cascade of cross-defaults that infects the whole banking industry and jeopardizes the global pyramid scheme. The potential for this sort of nuclear reaction was what prompted billionaire investor Warren Buffett to call derivatives “weapons of financial mass destruction.” It is also why the banking system cannot let a major derivatives player go down, and it is the banking system that calls the shots. The Federal Reserve is literally owned by a conglomerate of banks; and Hank Paulson, who heads the U.S. Treasury, entered that position through the revolving door of investment bank Goldman Sachs, where he was formerly CEO.

Full Article

The government is about to let the taxpayer bailout all the greedy gamblers that have been gambling with your investment money for many years and have now run out of luck. Don’t just blame the gamblers and the corporation heads that hired them either. They were hired because people who had stock in these companies expected unrealistic returns year after year. If you expected ten percent on your investments each year or if you bought a house that you knew you could not afford on the speculation that it would go up in value then look in the mirror the government is actually attempting to bail you out

It is going to be much like the saving and loans bailout of yesteryear magnified to a much larger scale. In fact no one knows how much this is going to cost the American taxpayer. It will probably cost trillions. The power brokers say they have to do this or the whole system will collapse. That is correct, but maybe it should collapse because the national debt will soon bring the living standards of everyone in the United States to that of a second world nation anyway. Who gave the federal government such powers and why was the American system allowed to become a Federal Reserve Bank protectorate?

The government now realizes that it cannot keep bailing out one company at a time or the stock market will crash and the whole house of cards will come down and many will lose most of their investments. That is politically not acceptable so they are going to create an agency that bails out all the bad debt.

The joke is that Congress and the President have been trying to save a billion here and a billion there for years in order to keep the budget deficit as low as possible but in one huge bailout they will add more to the national debt then they saved by their budget cuts over a lifetime. Most of these same jokers will then come back next year and play the same game again by talking about reducing the budget deficit while the bailout will cause the deficits in the next few years to far exceed any in American history. It is simply nuts.

In order to appease you in this downturn they will add more tax cuts and give us another stimulus package that will add even more hundreds of billions to next year’s deficit. It is like giving everyone on government assistance food stamps to keep them in T-bones.

They will also put all these failed corporations under government control and bring in control boards to manage them. So we will have free enterprise replaced with socialist bureaucratic decree. Those restructured bureaucratic controlled corporations will be a disaster in the making and the taxpayer will keep paying more billions for their continued losses.

Don’t worry be happy, your not going to have to pay this debt burden just yet because we can’t. So it will all be financed. That means we will have to acquire more loans from foreign nations to finance our increasing national debt. That also means the U.S. will become more dependent on countries like China and the oil rich nations that acually hate us. Anytime they wish to force us to do their bidding they will have a huge debt club to pound us over the head with.

The Bible says the borrower becomes the slave of the leader. The U.S. is becoming a slave nation because it will be totally dependent on other nations that will not allow us to be free.

So add a trillion here and a trillion there and pretty soon we are borrowing more than the loan sharks wish to lend us. Then we will have to promise them higher and higher interest on our debt in order to get the loans. We are about $10 trillion in debt right now and this bailout and the economic downturn will cost us at least two trillion more debt within two years. That means we will be paying interest on over $12 trillion every single year. Even at 5 percent interest the cost will be $600 billion a year and I doubt if interest rates will remain that low.

Add the fifty trillion dollar entitlement bill that is coming due in the future and there is simply no way that the U.S. can go on without doing one of two things and either one will bring this nation to poverty. The first is to default on our debt to other nations and the second is to print more money and cause the dollar to be worth far less. We cannot really default or we are finished in this world so be prepared for double digit inflation for decades to come and do not expect your earnings to keep up. In fact, expect a standard of living in a decade that is about half of what you have today. The government printing more and more dollars will weaken the dollar bringing hyperinflation so then the outstanding debt will either become a smaller part of the GNP or the lenders will stop lending. If they stop lending we are also finished in the world. So the future for the U.S. is hyperinflation or isolationism and depression that will make the 1930’s look like the good times.

The government may have bailed out the economic crises this year but doing so will just make a much worse economic crises in the near future. I think all the greedy pigs in the banks and brokerage markets and all the fools in government and all the people who elected them deserve the Demented Delusional and Dumb Club award. The greedy slobs and their bought and paid for representatives in government deserve this award for killing a once prosperous free nation and making it a socialist slave nation. Congratulations!

So how do we go back to free America? We cannot, unless the slaves escape the nation  controlled by the globalist elite.

There never was a consensus of climate scientists saying that global warming was man caused. It was all made up by the world power elite controlled bureaucrats and their media.

Read the real story and read about the real consensus of scientists that agree that global warming is not any danger to this planet. In fact, there is now more danger from what now appears to be a global cooling trend.

The liars now have society so brainwashed that now even when the earth is cooling and likely heading toward a dangerously long term cold trend all you still hear in the media and from the politicians is the global warming danger and the CO2 threat.

These greedy power brokers and socialist fascist control freak idiots are putting the world in economic danger and the danger of real energy shortages at a time when the absence of sun spot activity seems to be indicating that we are heading toward a long term global cooling. This energy shortage and cooling could bring energy crises worse than any you can imagine along with world crop failures and famine.

It is time to get these wacko environmentalists off of our back and to put leaders into place that will develop all energy sources regardless of the release of beneficial CO2.

Michael Coffman — Consensus? What Consensus?

CONSENSUS? WHAT CONSENSUS?

By Dr. Michael S. Coffman Ph. D.
September 10, 2008
NewsWithViews.com

We have all heard the litany in the news that 2,500 scientists working in conjunction with the United Nations Intergovernmental Panel on Climate Change (IPCC) agree with a 90 percent certainty that man is causing potentially catastrophic global warming. They even received the Nobel Peace Prize, along with Al Gore, for their exemplary work in the field. This, we are told, is a solid consensus having very few dissenters. The problem is that this so-called consensus is a myth – it never existed. Ever!

Outraged with the sheer duplicity of the press and warming alarmists, OISM launched the same petition again in 2008. They used a subset of the mailing list of American Men and Women of Science, a who’s who of Science, to mail the petition requesting the recipient to sign the petition if agreed that Kyoto was a danger to humanity.

The results, reported last May showed that 31,072 scientists, 9,021 of whom were Ph.D.s, signed the petition. Every signature has been vetted for authenticity.

Ironically, using the Freedom of Information Act, it has been proven that the so-called 2500 scientists the IPCC claims make up their “consensus,” are really not scientists at all. Of that total, only 308 scientists reviewed the 2007 IPCC report. Many of them disagreed, some strongly so. Not surprisingly, all of their comments were rejected and not included in the report. The remaining 2192 so-called scientists came from all walks of life; politicians, government bureaucrats, social workers, and apparently even a hotel manager. Less than 40 of the 308 scientists were generally supportive of the hypothesis, and less than 5 actually endorsed the report. Yet, the report was hailed by the media as the consensus of thousands of scientists.

Putting this into perspective, for every 1 scientist who even slightly favored the IPCC conclusions, 792 signed the petition saying there was no convincing evidence that there is man-made catastrophic global warming. For every Ph.D. that endorsed the IPCC report, 1800 signed the petition. If anything, there is a scientific consensus that man is not responsible for global warming. What did the media do with this potentially explosive story? They ignored it, as usual. A few, like Fox News, were gracious enough to have a byline on their website. Only the conservative media highlighted this phenomenal story.

It would seem the media, and by extension, the people who depend on it for accurate news, would rather believe a lie than the truth. This realization led Dr. Ross McKittrick, who discredited the hockey stick theory of the 2001 IPCC report, to lament, “We are now at the stage where mere facts, reason, and truth are powerless in the face of the global warming propaganda.” It is a scary thought, but he is correct. Ignorance and propaganda now form the basis of our policy on climate change (and many other environmental issues). We are treading a dangerous path.

Full Article

Frank Salvanto says we have a perfect storm coming from two enormous threats. The denial of the Islamic threat and the fifth column called the progressive Left. This storm will destroy this nation if the American people continue to ignore the threat. I would also add a third and fourth enormous threat. The economic storm brought on by debt and greed, and the perversion storm rapidly developing out of moral relativism. Wake up America! There is a perfect storm brewing and its not going to be a tempest in a tea cup.

The New Media Journal | Ignoring ‘The Perfect Storm’ at Our Own Peril by Frank Salvato

The mainstream media and the presumptive nominee from the Democrat Party have done a pretty good job of steering the electorate’s attention to issues of a domestic nature. It wasn’t hard to do. With gasoline prices hovering around four dollars a gallon, combined with the self-induced but limited financial crisis created by proprietary lenders and a healthcare system that’s being raped by grifting lawyers and robber-baron insurance companies, it is easy to understand why voters would fall prey to diversionary tactics of the political power seekers. But we do so at the expense of the well being of our nation. We do so ignoring “the perfect storm.”

politicians consistently put politics, power and financial special interests before the issues most important to the American people: A small, elite group of Progressives, beholden to the environmental lobby, uses their governmental powers to usurp the will of the people by refusing to allow drilling in places we know there are oil deposits; politicians on both sides of the aisle pander to an illegitimate voting demographic in the illegal alien population for fear that if they stand up for America’s sovereignty they may be voted out of office by those who shouldn’t be voting in the first place; politicians of both major political parties refuse to banish the earmark and reserve the right to raid the government treasury to provide bribes to their constituencies in an effort to garner re-election; the tax code continues to overburden the middle class and penalize the family while expanding entitlement increases the number of those feeding from the public trough and the mega-rich evolve into an elitist class; etc, etc, etc…

Our nation faces two enormous threats, one externally and one from within, and we do so without a proper understanding of why we should be fighting them both with every fiber of our collective being.

why would any elected official, true to good government, deny the enormity of the threat posed to the United States and the West by radical Islamist elements?

The second serious threat is less immediate and less violent, but caustic and lethal to the American philosophy and the continued existence of our country just the same. This threat comes from the American Fifth Column; the threat from within.

Emanating from the failed ideologies of Marxist-Leninst socialism and communism, the American Fifth Column dedicates itself to the transformation of the United States from a representative republic to a system of democratic socialism. This movement is personified by the progressive-left that has effectively hijacked the Democrat party.

Through unconstitutional entitlement programs and the legislation of inequitable tax burden on those who have successfully employed the capitalist system to their benefit, those leading the American Fifth Column strive to artificially create economic equality through the redistribution of wealth. Ironically, those who lead the American Fifth Column have established an elitist class for themselves, as most of them are millionaires (like Nancy Pelosi) and even billionaires (like Peter Lewis and George Soros). They do so to reduce the “influential footprint” of the United States on the world in a quest for a one-world order administered by the elite.

Interestingly, the progressive-leftists of the American Fifth Column are playing the roll – either unwittingly or recklessly – of the useful idiot to radical Islam’s quest for a global Caliphate.

So, the people of the United States face these two incredibly potent threats – each which could affect the end of the great American experiment – yet we are apathetic to the threat. Why? Because we face these challenges constitutionally illiterate.

Our educational system has been hijacked by progressive-left ideologues.

It is time that parents from all over the country – all over the world – embrace the idea that we have to take charge of educating our children.

Full Article

You really might want to read this piece of reality if you are planning to buy or sell property in California. I think these ten reasons not only apply to California they apply to the big cities in Nevada, Florida and Arizona and some other Bubble areas as well.

This is not for the faint of heart. It implies much more than just a housing downturn. The losses on real estate and all connected with real estate including the taxpayer (government bail outs) are going to be much worse then most anyone is saying.

You will have to click on the link below to find the 10 detailed and well thought out reasons why real estate has years to go before any recovery is possible and why things are going to get worse before they get better in these bubble areas.

10 Reasons Why California is Years Away from a Housing Bottom: Rebuttal to Those Calling for a Bottom for California Housing. » Dr. Housing Bubble Blog

Housing in California is years away from a bottom. Let me make that clear and if you have any doubts, after reading this essay you will have a better understanding as to how I arrived at that conclusion. This article is longer since it will try to answer many of the arguments from those calling for a real estate bottom here in California. After looking at multiple sources of information like income, demographics, sales, psychology, and the economy there is no logical evidence for a housing bottom in California. It is well worth the read and certainly provides more information than a 1 minute sound bite. Recently I have noticed a resurgence of bottom talk coming from professionals in the field but also through e-mail questions.

My assessment is this renewed energy has come from two primary culprits. The first is of course the Housing and Economic Recovery Act of 2008 that provides $300 billion in loan refinances and also bails out Fannie Mae and Freddie Mac. In addition, there are many provisions in the bill to juice the market all of which will have very little impact on California. Both Fannie Mae and Freddie Mac announce earnings this week and the news isn’t going to be good. Freddie Mac lost $821 million in the second quarter and announced that they will be slashing their dividend from 25 cents to 5 cents to conserve capital. This wouldn’t be such a big deal except the U.S. taxpayer is now on the hook and a loss for Fannie Mae and Freddie Mac leads us one step closer to a bailout.

The second reason for the upsurge in bottom talk at least for California is the massive price drop we’ve seen this past year. A drop in the median sales price statewide by 38.38% is bound to get the attention of anyone. Yet simply because prices have fallen steeply in one year does not signal that now is a good time to buy. In fact, I will give you 10 solid reasons in this article why we are years away from any bottom in California.

If you are serious about correcting negative cash flow situations, you really have to create a budget that takes into account how much money is coming in and going out. In the case of our country, it has gone into debt counseling, was told to cut up the credit cards but is refusing to do so and is actually applying for more credit cards!

What you will not hear from bottom talkers is any mention of incomes from the vast majority of people. Sure they will use random examples of those in Bel Air, Brentwood, Laguna Beach, or Newport Coast but that is a tiny fraction of the population. They cannot use income as a measure of support because it will demolish their bottom theory. Let us now move on to the 10 reasons why California is years away from a housing bottom

Seems that there is more to the story with T. Boone Pickens than just windmills to save America. Seems that T-Bone Pickens and friends now have picking the meat off the bone down to an art form. Now we hear that he has the largest water rights in the U.S. and state eminent domain laws in Texas were changed for him so he could set up a water district and use eminent domain powers. his Windmill right of ways can also piggyback on his water district eminent domain power.

Anyone who thinks that money for T-Bone is not the motivation in his national campaign for windmills is not getting the full story. If land owners oppose his water and wind distribution systems going across their lands he plans to use these new eminent domain laws to make them comply and to make himself more billions.

Is natural gas the answer for our cars? This link will tell you all about the idea that T. Boone Pickens promotes on TV about converting vehicles to natural gas. Turns out that T. Boone Pickens also has huge investments in natural gas. What all the TV hype seems to come down to is that Pickens is promoting his own natural gas investments and his own windmill investments on TV and calling it the answer to our foreign oil dependence! I guess Mr T. Boone Pickens thinks we should trade in our foreign oil dependence for dependence on him. Here is the response to the Pickens spokesman that responded to natural gas article above.

I have a better idea Mr Pickens. Just tell all the politicians to allow oil drilling here and now or we should remove all the obstructionists from public office! If off-shore drilling were allowed and if the development of our oil shale and coal were allowed we would not have any foreign energy dependence.

FOXNews.com – Pickens Gives New Meaning to ‘Self-Government’ – Opinion

The more you learn about T. Boone Pickens’ plan to switch America to wind power, the more you realize that he seems willing to say and do just about anything to make another billion or two.

Simply put, Pickens’ pitch is “embrace wind power to help break our ‘addiction’ to foreign oil.” There is, however, another intriguing component to Pickens’ plan that goes unmentioned in his TV commercials, media interviews and web site — water rights, which he owns more of than any other American.

But wait, you say, Pickens is not a government entity. How can he use eminent domain? Are you sitting down?

At Pickens’ behest, the Texas legislature changed state law to allow the two residents of an 8-acre parcel of land in Roberts County to vote to create a municipal water district, a government agency with eminent domain powers. Who were the voters? They were Pickens’ wife and the manager of Pickens’ nearby ranch. And who sits on the board of directors of this water district? They are the parcel’s three other non-resident landowners, all Pickens’ employees.

Earlier this year, Texas changed its law to allow renewable energy projects (like Pickens’ wind farm) to obtain rights-of-way by piggybacking on a water district’s eminent domain power. So Pickens can now use his water district’s authority to also condemn land for his future wind farm’s transmission lines.

Who will pay for the rights-of-way and the transmission lines and pipelines? Thanks to another gift from Texas politicians, Pickens’ water district can sell tax-free, taxpayer-guaranteed municipal bonds to finance the $2.2 billion cost of the water pipeline. And then earlier this month, the Texas legislature voted to spend $4.93 billion for wind farm transmission lines. While Pickens has denied that this money is earmarked for him, he nevertheless is building the largest wind farm in the world.

Pickens has gamed Texas for his own ends, and now he’s trying to game the rest of us, too. Worse, his gamesmanship includes lending his billionaire resources, prominent stature and feudal powers bestowed upon him by the Texas legislature to help the Greens gain control over the U.S. energy supply.

Greed, speculation, nations spending more than they have and stupidity have put the whole world in danger of an economic Armageddon. Some of what is going on and is about to happen can be found in the link below. The world bankers are now putting their fingers in dikes to plug the leaks but they may soon run out of fingers.

The global economy is at the point of maximum danger – Telegraph

It feels like the summer of 1931. The world’s two biggest financial institutions have had a heart attack. The global currency system is breaking down. The policy doctrines that got us into this mess are bankrupt. No world leader seems able to discern the problem, let alone forge a solution.

The coalitions in Belgium and Austria have just collapsed. Germany’s left-right team is fraying. One German banker told me that the doctrines of “left Nazism” (Otto Strasser’s group, purged by Hitler) had captured the rising Die Linke party. The Social Democrats are picking up its themes to protect their flank.

This is the healthy part of Europe. Further south, we are not far away from civic protest. BNP Paribas has just issued a hurricane alert for Spain.

Finance minister Pedro Solbes said Spain is facing the “most complex” economic crisis in its history. Actually, it is very simple. The country was lulled into a trap by giveaway interest rates of 2pc under EMU, leading to a current account deficit of 10pc of GDP.

China, India, East Europe and emerging Asia have all stolen growth from the future by condoning credit excess. To varying degrees, they are now being forced to pay back their own “inter-temporal overdrafts”.

If we are lucky, America will start to stabilise before Asia goes down. Should our leaders mismanage affairs, almost every part of the global system will go down together. Then we are in trouble.

This article tells how Al Gore used his political power to channel money to spread his global warming apocalyptic lies in order to transform society to his socialist vision of world governance through “enlightened” people like himself. Gore is one of the top con artists of our time who uses peoples fears and peoples greed for money and power. Al Gore especially likes to scare children and the gullible to create a sense of panic. His real agenda is leftist fascist eco-extremism. You probably have about one year to prick this gas bag or laws will already be set in place to eventually tax, control and regulate everyone and every product on earth.

FrontPage Magazine

“Cynical politics” may be a redundancy, but it is hard to imagine a more cynical political issue than global warming (GW). In his 1992 book Earth in the Balance, Al Gore called for a “wrenching transformation of society.” Leftists, with their elitist penchant for social engineering, didn’t need any convincing. The challenge for Gore was the inconvenient truth that, in a democracy, a would-be central planner needs to get the masses on his side, too. To do that, he borrowed a strategy encapsulated in H.L. Mencken’s statement, “The whole aim of practical politics is to keep the populace alarmed by menacing it with an endless series of hobgoblins, all of them imaginary.” Apocalyptic GW became Al Gore’s hobgoblin of choice.

Gore needed the scientific community to back up his assertions and the media to spread the word. Enlisting the help of the media was easy (apocalyptic fantasies are sure ratings winners), but getting enough scientists on board was trickier. When Gore started his GW campaign in the early 1990s, a contemporary Gallup poll of scientists showed that only 18 percent thought there was any evidence to support Gore’s theory. Even a survey conducted by Greenpeace found only 13 percent of climatologists willing to declare GW “probable.”

Nevertheless, Gore repeatedly claimed that (literally) 98 percent of scientists agreed with him, and he exhorted reporters to ignore skeptics. Right from the outset, the GW cult (like other illiberal movements, such as communism and fascism) had to resort to the “big lie” technique to make it appear that the science of GW was settled.

Kyoto’s agenda wasn’t to save the world, but to shackle economic activity in this country through curbing energy consumption. It’s easy to understand why foreign economic competitors would want this, but why would Gore and American liberals want to do this to the American people? The answer is simple: the lust for power and importance. Remember: control energy and you control people.