Tag Archives: Debt

America Heading Way Of Nazi Germany

FascismUcanBelieveIn

Indiana treasurer Richard Mourdock warned that the failing economy is pushing the country the way of Nazi Germany

History teaches great lessons and the one of the greatest lessons to learn is that human nature never changes.

Scripture declares it:

“What has been will be again, what has been done will be done again; there is nothing new under the sun” – Ecclesiastes 1:9

America’s Founders understood this, which is why they created a Republic with divided Government containing a system of checks and balances intended to LIMIT government and prevent it from becoming a TYRANNY – which human nature teaches is an assured fate.  The Founders considered human nature and history and understood that Ecclesiastes was gospel truth and warned the American people repeatedly that they needed to be vigilant in safeguarding their liberties.

But today – this people will be destroyed for a lack of knowledge.  It no longer considers the lessons of history.  A lifetime of peace and plenty, incredible technology and wealth, the American people, thinking themselves wise, have become fools by accepting the beguiling of the Secular Left and have rested in the false comfort that history and human nature no longer applies.

Most Americans, indeed even most in the Republican Party whom I read, are lecturing themselves that electing more Republicans will restore the Constitution and we will be saved from disaster and the tyranny now being installed that is staring us in the face. They are not even paying attention to what is being SAID and DONE that negates their false hopes.  They are not even CONSIDERING the possibility that we already have a defacto dictatorship under Obama.

Obama Says He Is “In A Strong Position” To Amend The Constitution Himself”

I contend most Americans have a fatal case of Normalcy Bias.

But scripture and what the Foundners warned us because of their understanding of history and human nature stands in truth and cannot be shaken.

When anyone in a position of influence or political power states a similar warning, watch how they are immediately impugned, castigated and laughed at:

 

RICHARD MOURDOCK WARNS AMERICA HEADING WAY OF NAZI GERMANY IN DRAMATIC FAREWELL SPEECH

“The people of Germany in a free election selected the Nazi party because they made great promises that appealed to them because they were desperate and destitute. And why is that? Because Germany was bankrupt,” Mourdock said to a crowd gathered at the Indiana Republican Convention on Saturday.

In the 1930’s during the Great Depression and under the pressure of the Treaty of Versailles, the National Socialist Party showered the poor with bread and put millions of unemployed to work with government programs before leading the entire world into war.

“Over the next several years, every time a program began to fall apart, Mr. Hitler’s party was very, very good at dividing Germany by pointing to this group or that group,” Mourdock continued. “First they went after their political opponents. Then they went after the aristocrats. Then they went after the trade unionists. And ultimately, of course, they went after the Jews. They deprived them of their property, their rights, their citizenship, and for millions their humanity. Because they were bankrupt!”

And immediately here come the fools screaming in outrage that such a warning should even be made:

“We are extremely disappointed to learn that Treasurer Mourdock chose to invoke the rise of Hitler and the heinous acts of the Nazis in comparison to America’s national debt,” said Shelby Anderson, president of the Indianapolis Jewish Community Relations Council. “Such comparisons are highly offensive and trivialize both the suffering and memory of the six million Jews and millions of others who perished under the Nazi regime.”

“[It’s] deplorable to suggest that a nation in debt is somehow one step away from perpetrating crimes reminiscent of Nazi Germany,” vice president of the council Stephen Klapper added.

What is even more deplorable, is that this very same religious block nearly unanimously supports the MarxoFascists under Obama and the Democrats.  That they choose to ignore the lessons that their own relatives and people suffered just 70 years ago, when the signs of warning are all around them, is an abject lesson in sheep being led off a cliff.

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Twisting In The Wind: America’s Coming Collapse

Collapse

The Bridge of American society is being buffeted by the gales of Marxism, Dependence and Debt.  Collapse is certain as society gyrates in the winds of Obama’s ‘change”.

Watch the video, then read the essay posted beneath.

One cannot argue with the analogy, or the conclusion.  The laws of gravity, physics, economics and history cannot be placated.  America is going to collapse – we just do not know when the breaking point will be reached as the nations swings from liberty to tyranny, from freedom to slavery.

A Collapse 73 Years Ago, and Another One Coming

73 years ago today, the Tacoma Narrows Bridge in Washington State collapsed.  The way in which it collapsed was brought on by a positive-feedback situation, where the destructive force was only bounded by the structural integrity of the bridge itself.

There are some serious lessons in this collapse for the future of American society.

First, let’s get a basic understanding of why the Tacoma Narrows bridge collapsed.

Tacoma Narrows Bridge begins to twist in the wind

The wind that fateful day was blowing strong, gusting to 42 mph, at roughly right angles to the bridge’s span.  The bridge began to life, then flutter, then twist, and as more of the bridge’s structure faced the wind, capturing more energy from the wind, the the motions of the bridge got larger with each bounce, which caused the bridge to capture more energy from the wind, which caused the motions to grow larger, and so on and so forth, until the bridge could no longer resist the motion, and it broke.

From Wikipedia:

Dynamic Aeroelastic Flutter is a self-feeding and potentially destructive vibration where aerodynamic forces on an object couple with a structure’s natural mode of vibration to produce rapid periodic motion. … a positive feedback occurs between the structure’s natural vibration and the aerodynamic forces. That is, the vibrational movement of the object increases an aerodynamic load, which in turn drives the object to move further. If the energy input by the aerodynamic excitation in a cycle is larger than that dissipated by the damping in the system, the amplitude of

Tacoma Narrows Bridge Collapses (rare film capture)

vibration will increase, resulting in self-exciting oscillation.(Emphasis mine, Ol’ Backwoods.)

Once the amplitude of the oscillations becomes large enough, the structural integrity of the bridge fails, resulting in what we see at right.

II. LESSONS FOR AMERICAN SOCIETY

Let’s take the Tacoma Narrows collapse as a metaphor.  What are the destructive forces pushing against American society today?   What mechanisms cause these destructive forces to grow and build on themselves?  And at what point does the structural integrity of American society fail, and an economic, political, and/or societal collapse occur?

The howling winds buffeting American society today come from many sources, but join to form a gale force aimed at near right-angles to our society’s span.

I will only focus on a few destructive forces here: the increasing dependence on government and systems of support; the loss of liberty and the increasing police state; the continual devaluation of money via government and big-bank debt; and the intentional attacks on morality and traditional societal norms.

THE WINDS AND THEIR EFFECTS

Destructive Force: Dependence

When I was a kid, my grandmother canned the vegetables from her garden.  In my dad’s childhood in rural West Virginia, everybody did.  Everybody had chickens, and many had a hog or two, rooting in the woods, that would help get them through the winter if things got tight.   Folks were self-reliant.

Not anymore.  One in five West Virginians have an EBT food stamp card. The country as a whole is so dependent on government that half of Americans live in a household that receives some kind of government benefit.  America has 65 million low-information voters who don’t pay taxes, but keep voting to keep the free stuff train ‘a rollin’.

America is dependent.  Not just on government, but on fragile systems of support than can easily be disrupted by natural disasters, like weather, or man-made disasters, like civil unrest and terrorism.  Interdependent,  “just-in-time” delivery and inventory systems ensure that no store has more than 3 days of food.  And water?  Pumped by electricity, just like sewage.  A lot of people in my native West Virginia that used to be on wells, springs, and rain-catch cisterns are on county water and sewer now.    Water that is pumped by electricity.

Food and supplies come to the stores on trucks, whose diesel fuel is refined, pumped, and metered by electrically-controlled and powered equipment.

All of it depends on the power grid.  Thank God it’s not fully centralized; states like Texas can stand on their own, and some other states like Tennessee, Alabama, and Washington have enough hydropower to stand alone, to a certain degree.   But computerized controls connected to the Internet mean that these grids are fragile, and subject to computer-based attacks.  It used to be that the utility industries had their own supervistory, control, and data acquisition (SCADA) networks. Not anymore.  They’re on the Internet, subject to the Chinese Army’s cyberattackers and who knows who else.

In the midst of all this dependency, as a wild card, there are all these drills that turn into real tragedies.  Oklahoma City, in ’95.  9/11/01.  The Boston Marathon bomber.  And coming up, a week from today, NERC’s GridEx, where the drill is the power grid going down, all over the East Coast.  Two weeks after a documentary on NatGeo about an “American Blackout”.  How convenient.

When the power goes out nationwide, there is not a systemic way to get it back. Ever.

100 million+ would die in the first year.

And despite a large movement of “survivalism” and “preppers”, of which Ol’ Backwoods counts himself a part, it is not enough.  Every day, more people get an EBT.  Half of the voting population of the United States takes a government handout of one kind or another.  de Toqueville’s warning applies, but we have ignored it, and now, the Free Crap Army is busy voting itself more and more benefits.  On our election returns maps, whole counties are turning the color of dependence, blue, which really should be Communist Red.

The dependence is growing, and is feeding itself, a destructive force bounded only by resources and the remaining strength of American society.

Destructive Force: The Police State

There is, it seems, an intentional push by the police to get people to react.  The police-military-industrial complex seems to want a civil war.  The Feds are paying for local police forces to have equipment and training in tactics that no oath-keeping officer should be using against Americans. And you know: if they have the gear and tactics, they WILL use them. To justify the budget, a police chief will send a SWAT team to take out a petty thief.   And do it over and over again.

These “all cops to the scene” response to crimes seem directed toward getting people to believe that the Secret Police are everywhere and know everything, and will beat you down if you resist.  In Boston, a whole city was locked down for ONE teenage ‘terrorist’. But it is a sham, a Potemkin village.  If 200 ‘youths’ caused the Austin TX police to “swarm” on the location of the Haunted House riot, and the police could not respond anywhere else, what if a major crime or terrorist event occurred in the rest of the city?  Chaos, that’s what.

The police may put up a show of totalitarian force, but they cannot react fast enough.  As Matt Bracken says, a flash-mob operates on a 4-minute form-act-disperse loop, and the police have a loop about ten times as long, on average.  It’s Col. John Boyd’s OODA loop, and the mob is inside the police OODA loop.  Only armed citizens can react fast enough, because they are already there.

Besides, as the Supreme Court has ruled half a dozen times, the police have no duty to protect you, the individual.  They only have a duty to reduce crime generally.  And their increasing use of Gestapo tactics does not help.

The armed citizen is the only bright spot in this police-state scenario we Americans find ourselves in.  All 50 states have some way for the citizen to carry a gun; in some, it’s virtually impossible to get a permit (New Jersey, New York), and in others (Arizona, Alaska, Vermont, Montana), no permit is required at all.  The rest are mostly shall-issue.  But everywhere you look, the armed citizen is blamed by the media and politicians every single time there is a mass shooting.  And 9 times out of 10, those happen in so-called ‘gun-free zones.’  There’s guns, all right, just not in the right hands.

And then, there are the “the people are the enemy” and “submit to me, I am a cop” attitudes.

Example: the lunacy in New Mexico.  Anal rape of one Mr. Ecker by the police.  They found a judge who ordered this done!  Only one doctor stood up and said, “No, I will not participate.”  But Leviathan cannot be stopped.  The cops found a hospital that would search this man’s rectum, though he had demonstrably done NOTHING wrong.  And these cops have done it before to another man.

The ‘war on drugs’ has been the single most important factor in causing the police to act like tyrants instead of their original mission: protect and defend the constitution against its enemies, and keeping the peace.  Police now can use the possession of any kind of controlled substance as an excuse to do almost anything now.

Police know they will NOT lose a paycheck if they gun somebody down 4 seconds after contact, or taser a woman for not showing the cop her boobs.  And the dirty cops blackmail the dirtier cops, with mutual guilty knowledge, and the so-called “thin blue line” protecting the thug cops.

What about the trained submissiveness exercises for the kiddos?  They all teach the same lesson: kiss the boot of tyranny, or die.  Kids frog-marched out of class by the police for the tiniest infractions, for biting a Pop-Tart ‘in the shape of a gun’ and the like.  Kids in schoolyards, ‘proned out’ by the cops, yelling at them to get down, with barking drug dogs baring their teeth.

Cops used to swear an oath to the Constitution, to a set of ideals.   These Feds and these rogue cops don’t care about that anymore.  There isn’t a moral set of brakes anymore.  They WILL go full Gestapo.  It has already happened.

The police state is growing, and is feeding on itself, a destructive force bounded only by the remaining moral strength of American society.

Destructive Force: Debt

Every year, Federal, state, and local governments spend more than they did the year before, far in excess of the inflation rate.  Government is the only sector where “zero-based budgeting” does not exist;  more, more, more is just the way it’s done.

Every year, more debt is piled on, and the Federal Reserve buys trillions of dollars in bad paper, stocks and bonds, to keep the bubble inflated.  Banks make loans at ever-higher fractional reserve leverages, ensuring they could not possibly give out as much cash as they have deposits.  Credit-default swaps (CDS’s), collateralized-debt obligations (CDO’s), and other obscure financial beasts pile debt higher and higher.

There is now more debt in America than there is money in the world.  It cannot possibly be paid back.

And soon, the United States Treasury will spend quarter of annual tax returns on interest alone.

What if interest rates go up to a mere 5%?  Chaos.  Complete loss of faith in the dollar.

The debt mountain is growing, and groans under its own weight.  How long before it gives way?

COLLAPSE

In our bridge metaphor, American society is swaying, twisting, and bucking, and every time it catches more wind, the amplitude of the oscillations increase.

Where is the breaking point?

I wish I knew.

But we, as individuals, families, and communities, had better be preparing for it.  Because it’s going to happen whether we like it, or not

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Obama Demonizes Opposition, Blames Them For What He Set In Motion

ODuce'sRant

A horror of pain and conflict is deliberately being set in motion, and Obama is stoking his mobs to blame Conservatives/Wealthy and White as the cause.

Socialist megalomaniacal despots historically blame targeted groups of people they want exterminated with the misery and angst a people suffer at the very hands of those ruling them.  Obama is  no different in this regard.  His tirade in front of the press yesterday after his intimate golf vacation with Tiger Woods and Reggie Love, was chock full of a madman throwing a tirade who is ingeniously setting up his political enemies to be blamed for the woe and suffering he, himself is initiating.

Like Castro or Chavez, His Heinous takes the podium full of anger and ginned up rage against the Republicans with a prop of cops and emergency personnel as a backdrop and rants against a sequester HE HIMSELF CREATED.  He goes on a tear for over ten minutes and makes outrageous fear-mongering statements and walks off the podium abruptly without so much as allowing the press to ask a single question about his assertions.  Not that they would of course – you can hear them clapping like trained seals at the end of his Mussolini-esque moment.  Diktator Obama, His Heinous in full rulership mode.

With all the poking, prodding and incitement of Americans by this regime upon gun owners to business owners – the open talk is that a conflagration is coming, and soon.  The American Thinker posts an essay wondering aloud whether the forces Obama has unleashed with his actions, he will be able to handle.

I disagree with the premise of Mr. Snyder’s statement that Obama cannot handle what he is setting in motion.

On the contrary.  Marxist revolutionaries destroy existing civilizations and build their totalitarian utopias on the ash heaps of their carcasses and over the bodies of their own people whom are ideological enemies that they exterminate.

I do not eqate blunders or missteps with this regime in power, rather they are the fruits of an agenda-pushing narcissist with visions of genocide and ruin dancing in his head.  Community Organizers (agitators as we knew them in Chicago) often would stoke the mob into action that went beyond their control.  They are masters of setting off explosive conflagrations that get out of control – so that in the fury and firestorm that ensues – reasonable people will settle for terms for a promise from those who set the fire to end the upheaval and bring things back to normal.  It is a  tactic to engender unconditional surrender and capitulation.

The perfect storm that is brewing is being fueled with malice and deliberation.  The desire is for it to consume all and everything – because Obama’s goals are to bring the nation to complete ash and destruction.  I doubt there are any plans he has past that goal, except a possibility of creating a Marxist utopia over the grave of what was once the greatest nation on earth.

President Obama has set in motion forces that he can’t handle

Barack Obama is a terrible president. That’s obvious to everyone who isn’t chronically ignorant or incurably liberal.  By “liberal” I don’t mean the classic definition of the word which has to do with being open-minded and objective. I mean the modern version of liberal: self-centered, emotional, illogical, and void of reason. Unfortunately, in 2012 ignoramuses and liberals represented the majority of those who voted. I’m not worried about offending them with my harsh words. My very existence offends them, and so does yours if you don’t buy into their worldview.

From economic policy to energy policy to environmental policy to foreign affairs to national security to border security to you name it, the president failed the test, but we re-elected him anyway. Obama’s misadventures in the Oval Office are becoming the stuff of legend. Benghazi and Fast and Furious are two of his more high profile blunders, but they aren’t the only ones. If George W. Bush had committed just one of those offenses, the mainstream media would have demanded his head on a platter, but they gave Obama a free pass. The nation as a whole became complicit in the president’s shenanigans because we didn’t demand that he be held accountable.

President Obama has done one thing superbly well: he has demonstrated skill par excellence on a national scale as a community organizer. He is second to none when it comes to inciting, agitating, race baiting, stoking fears, and motivating the masses. If you discount voter fraud, more than anything else, those skills got him re-elected. But like a snowball gathering momentum as it rolls down a hill, the forces that he has unleashed will be impossible to stop without pain and suffering.

For example, Occupy Wall Street’s demands for social justice dovetailed perfectly with the president’s fairness campaign. Was that coincidence or was it by design?  The answer should be obvious, but whatever the case may be, the OWS crowd eventually ran amuck in cities across the fruited plain until government officials finally took action to shut them down.

That’s the way it is with unruly mobs. Once agitators get them started, you never know what will happen. But we do know this: President Obama is their champion, and they are still among us waiting in the wings for another opportunity to vent their frustrations. Will the next version of OWS be more malevolent than the first? Only time will tell, but I wouldn’t rule it out.

OWS types aren’t alone. In the United States today, large and growing numbers of people believe that their mere existence is their contribution to society. They think that those of us who have worked hard all of our lives owe them a living, and not just a living, but a very good living.  The takers among us are easy pickings for a man with exceptional community organizing skills, and as I said, the forces that the president has unleashed will prove to be impossible to control.  If they explode, there will be hell to pay.

Common sense is totally absent in their world. For instance, who would dare to suggest that the 1% who paid almost 40% of federal income taxes in 2010 should pay more because it’s “fair” even though about 50% of our fellow citizens paid no federal income tax?  The answer: Barack Obama and his merry band of malcontents. If George Orwell were alive today, he would be scratching his head and thinking about a mind-bending plot for another novel.

Takers have no misgivings about attaching themselves permanently to the government tit, and they feel no guilt or shame as they scream for more. Obama knows them and their predilections all too well, and he takes advantage of every opportunity to stoke the fires that burn within them.  The president’s mother and his grandparents should have taught him the basics — things like if you play with matches, you will get burned — because the fire that he’s igniting can easily turn into an inferno.  If it does, all of us will pay a very high price.

In due course, simple mathematics will dictate that we can’t afford to keep able bodied men and women on the dole. Our current debt and deficit situation is so dire that something has got to give.  Judging by a recent Gallup poll, most Americans agree with me, but metaphorically speaking, it may take a swift kick in a sensitive area to wake up our elected officials in Washington. Be that as it may, the day is rapidly approaching when no one can ignore our fiscal quagmire because the combination of Medicare, Social Security, and defense spending plus interest on the debt and paying freeloaders threatens to sink this nation.

Reneging on our national debt is out of the question since global pandemonium would ensue.  Obamacare may help to reduce healthcare costs, but when evidence mounts that those “death panels” that we have heard so much about are real and that we are saving money by medicating patients and allowing them to pass away peacefully rather than treating their maladies, people will be hopping mad. Many of them will take to the streets to vent their anger.  If you think that it can’t happen here, you haven’t been paying attention.

Social Security is a special breed of cat because it involves seniors, a powerful voting block, and it is regarded as a national promise that we must not break. Besides, people actually paid in to Social Security as did their employers so it’s an annuity — and not a very good one at that.  Any politician who thinks that he can safely tamper with Social Security isn’t playing with a full deck of cards. Even so, we can’t solve our debt and deficit problems unless we make adjustments in Social Security and Medicare. It’s the quintessential Catch 22.

Similarly, we need to cut defense spending without jeopardizing our national security, but defense reductions translate into job cuts and that creates another set of problems. No matter what we do, people will not be happy with the outcome, and many of them will vent their frustration in the voting booth and possibly on the streets.

This is the point: a perfect storm is brewing. I think we’re heading for a chaotic and violent period in this country the likes of which no one alive today has ever witnessed.  If I’m right, conditions will be ideal for criminals to ply their craft, and President Obama is pushing for gun control at precisely the wrong moment.

I believe that what I have described is realistic and unfortunately inevitable, and that brings me back to my back to the president.  He has set in motion forces that he can’t handle, and all of us are going to suffer the consequences so get ready for a wild ride.

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Lying Sacks of Crap: Democrats & Obama on Debt Ceiling

For all the political posturing and assistance this regime and the Marxists in Congress (Reid, Pelosi, Durban et. al) receive from the mainstream State-run media about the “negotiations” with the GOP over raising the debt ceiling (yet again) – Andrew Styles from the NRO interviewing Jon Kyle (R) AZ – about what is really going on with these negotiations, discovers that the Democrats, Marxists and Socialists of the Democrat party – have no intention of negotiating in good faith.

It’s all crap.  It’s all bogus.

Obama and the Democrats are engaging in economic terrorism – and they are happy to kill all us hostages in the process of permanently empowering themselves.

And the GOP are IMBECILES to negotiate with such terrorists.

The Marxists at the behest of NerObama want tax increases, and MASSIVE spending increases, INCLUDING extending UNEMPLOYMENT BENEFITS FOR ANOTHER 99 WEEKS!!

100 BILLION in new spending that Obama and the Democrats are demanding.

Jon Kyle reveals the following from Style’s interview on NRO:

Democrats Still Want to Spend More 

In discussions this week, Kyl says, Democrats proposed extending unemployment insurance for another 99 weeks at a cost of $43 billion. In addition, they requested another $10 billion to spend on research projects overseen by the National Institutes of Health. Democrats have not, Kyl says, offered to offset the new spending with additional cuts.

These measures come on top of the increased spending Democrats proposed in negotiations led by Vice President Joe Biden, which included a $33 billion increase in Pell Grant funding and $27 billion — a number Kyl says was never explained and is much higher than Republican estimations — for the so-called “doc fix” to restore Medicare payments to physicians.

To make it more despotic, the Democrats say that the GOP can “Buy back” the waste, fraud and abuse cuts originally on the table that Obama has since rescinded.

Kyl says that even the modest savings introduced in the Biden talks, primarily of the “waste, fraud, and abuse” variety — all of it outlined by President Obama in his budget “framework” speech — have since been taken off the table. Republicans can “buy them back,” Kyl explains, if they agree to match them dollar-for-dollar with tax increases.

So NerObama and his regime and sycophantic Marxist supporters are either decided to speed up America’s economic collapse by pushing into overdrive their Cloward-Piven strategy of collapsing the debt on the already stagnant economy, or they are playing a game of political chicken with all of our lives and economic livlihoods in order to score political points by blaming the GOP for what they have done themselves.

And McConnell and the beltway political class think they can negotiate and offer their own plans to grant Obama dictatorial powers to lift the debt ceiling as he sees fit?

That’s called surrender, not political strategy as Krauthammer would have us all believe and it’s a hallmark of the French, not Americans.

We’re dealing with Marxists engaged in economic terrorism.  Too bad the GOP is stuck on stupid and erroneously thinks this is just more ‘politics as usual’.  All they are doing is negotiating with terrorists.

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He Finds Our Lack of Faith…Disturbing

debtstar

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Levin: Where the Blame Truly Lies In The Financial Meltdown This Past Week

I do not think I have heard or read a more cogent explanation of the collapse into Fascism we witnessed this week than Talk Show host and Constitutional Lawyer Mark Levin.

On Friday evening’s show, Mark outlined in vivid detail the chronology of where all these risky loans and bad debt that crashed the big investment banks on Wall Street originated.  Mark then goes on to showcase that the very people who created the mess are LYING THROUGH THEIR TEETH to blame Capitalism or Bush for their dirty work.

The show was so informative that I spent most of last night transcribing most of the first hour for readers.

This is informative to know, so that when you read these Leftists in Congress blame you and me and Bush and the GOP – for this mess that THEY helped create, we might someday hold these vermin accountable.

Thank you Mark!

 

Where the Blame Truly Lies In The Financial Meltdown This Past Week 

Transcript

MARK LEVIN SHOW

Friday September 19, 2008:

September 2008 will be remembered as the time when Socialism really, really took hold in this country.

Unfortunately these politicians are running for the hills because they do not want to take responsibility for what is going on, and I mean BIG TIME.

So I want to tell you a little story about your government; I want to tell you a little story about how it works and doesn’t work. I want to tell you a little story about how things go on in the shadows in this country and the massive bureaucracies of this country that you don’t know about, and yet they affect your lives every single day.

We have a massive Administrative State….and we have this massive bureaucracy, that’s utterly unelected, and unaffected by what you want or what you believe. It’s part of the Washington elite management system that controls so much of what goes on in this country.

…And I want to tell you a little bit about how the liberals in government whether they be elected or appointed, whether they be bureaucrats or politicians, how they work together and bring us to this point. And then tell YOU the problem is free markets, the problem is Capitalism, the problem is greed.

They lie.

The Community Reinvestment Act, or CRA – is a federal law that requires banks and thrifts to offer credit throughout their entire market area. And it prohibits them from NOT giving loans to poorer areas within the reach of their communities. They call this redlining. They call violations of this redlining.

The purpose of this Act is to provide credit, including home ownership opportunities to what they call “under-served populations” and commercial loans to small businesses.

The law was passed by Congress in 1977 under Carter as a result of national grassroots pressure from groups like ACORN (an ultra-Left wing criminal enterprise in my humble opinion) which brought pressure for affordable housing for the poor. It was opposed significantly and aggressively by the banking community. But they had no choice. It became law 31 years ago.

The law mandates that “each banking institution be evaluated to determine if it has met the credit needs of it’s entire community” – that is, if it has given loans to enough poor people, or people who can’t really afford them.

And then that record is taken into account by the federal government when it considers an institution’s application for mergers and acquisitions. 

And so the law is enforced by the federal government and in 1995, as a result of interest from Bill Clinton’s Administration – particularly Janet Reno and the Department of Housing and Urban Development, the implementing regulations for the law were strengthened by focusing the financial regulator’s attention on institution’s performance in helping to meet community credit needs.

So they really, really pushed them. They used the FORCE OF LAW to compel these private institutions to make bad loans.

These changes were very controversial. 

…The Clinton Administration’s regulatory revisions with an effective starting date of January 31 1995, were credited with substantially increasing the number and aggregate amount of loans to small businesses and to low and moderate income borrowers for home loans. Clinton used to brag about this.

Part of the increase in home loans was due to increased efficiency in the genesis of lenders like Countrywide that DID NOT mitigate loan risk with savings deposits, which traditional banks do. They were using the new SUBPRIME AUTHORIZATION, of 1995. Are you listening to me? This is known as the secondary market for mortgage loans. The revisions in the law allowed the securitization of CRA loans containing subprime mortgages. In other words, they had to figure out how to give loans to people who do not qualify for the loans under traditional procedures. So they changed the procedures.

The loans were not capitalized. So you have No Down Payment loans, No Interest loans, Low Interest loans that turn into higher interest loans over time (ARMs), and on and on. They were trying to be creative in what they could do, and they HAD TO BE under the threat of losing business practices and activities as compelled by the Federal Government.

The Federal Government compelled this activity and compelled this behavior.

The first securitization of CRA loans, started in 1997 with Bear Stearns (remember them?) 

Now in 2003, The Bush Administration recommended what the New York Slimes (Times) called “The most significant regulatory overhaul in the Housing Financial Industry since the Savings and Loan crisis a decade ago”. This change was to move governmental supervision of two of the primary agents guaranteeing subprime loans; Fannie Mae and Freddie Mac, under a wholly new agency created within the Department of Justice, which would give it more oversight power and more auditing power. It would require these two so-called “companies” to better capitalize their debt.

Even so, what remained was the implied guarantee that the American taxpayer, should anything go wrong, would back-up these loans.

But that legislation to strengthen these programs, to move the oversight to an independent separate agency WAS BLOCKED in 2003 by Congress. And it was blocked by the Democrats, because the Democrats were in bed with ACORN and these other “community activists grassroots groups”, of whom Barrack The Hussein Obama is quite familiar.
These are the constituents of the Democrat party – that is these Left wing groups like ACORN.

(Barney) Frank (D-MA) was in bed with them; Chris Dodd (D-CT) was in bed with them; the Clinton Administration was in bed with them; and so they blocked the reforms the Bush Administration proposed in 2003.

Barney Frank said at the time “These two entities Fannie Mae and Freddie Mac, are NOT FACING ANY KIND OF FINANCIAL CRISIS. The more people exaggerate these problems…the more pressure there is on these companies, the less we will see in terms of affordable housing”.

So basically, the Socialists FORCED the private sector to behave in ways the private sector didn’t want to behave but was forced to behave under threat of law. That is to give loans to people who were bad risks.

The two government run companies; Fannie Mae and Freddie Mac, when the Bush Administration said in ’03 “Look we got a problem here. They don’t have enough capital, they’re running wild over there. We don’t have enough oversight and auditing activity. We want to break out that activity – make it independent so they can oversee it. Force them to capitalize against their loans better”. They were BLOCKED.

Now I don’t know about people who say we can’t talk about party (blame) – We HAVE TO TALK ABOUT PARTY HERE because the only way you have accountability, and the only way you fix this situation, is to know WHO and WHAT is responsible, and what policies got us here!

Now these policies encouraged the development of the sub-prime debacle, through this CRA legislation, which forced banks to lend to uncreditworthy customers. Which they are now being criticized for having done. Before this debacle, while they are now attacking these huge financial institutions – they would praise them for all the uncreditworthy risky loans they were giving to ‘certain’ citizens (and non-citizens) in this country!

In 2003, the NY Slimes said of the Bush Administration’s plan “The plan is an acknowledgment by the Administration that oversight of Fannie Mae and Freddie Mac, which together have issued more than 1.5 trillion in outstanding debt, is broken”. 

2003.

Former Treasury Secretary John Snowe from the Bush Administration, 2003 – “There is a general recognition, that the supervisory system for housing-related government-sponsored enterprise neither has the tools nor the stature, to deal effectively with the current size, complexity and importance of these enterprises.”

Michael Oxley, Republican from Ohio, former House Finance Services Committee Chairman, he said: “The current regulator does not have the tools or the mandate to adequately regulate these enterprises. In recent months, we have seen the mismanagement and questionable accounting practices went largely unnoticed”.

The Senate Republican Policy Committee, the Conservatives warned in 2003, that Fannie Mae and Freddie Mac threatened the U.S. economy and taxpayer “Although both firms seem to be performing well at the moment, it is far better for Congress to take pre-emptive action, instead of facing an enormously expensive corrective action after a destabilizing crisis strikes. Given how large these government companies have grown, and how much interest rate risk they retain, the risks posed by their current operations, should move Congress to increase their disclosure requirements, improve safety and soundness regulations, and examine how best to extricate the Federal Government from their operations. And through such steps, Congress could give regulators and investors a better sense of the risks that Fannie and Freddie’s operations pose and reduce the likelihood of a bailout.”

That was the Conservative Republican Policy Committee, Conservative Republican Senators.

What did the Democrats say? What did they say in 2003?

When the Bush Administration in 2003 was in fact, ringing the alarm bells, and did in-fact draft proposed legislation to address this, Republicans supported it and Democrats blocked it.

“These two entities Fannie Mae and Freddie Mac, are NOT FACING ANY KIND OF FINANCIAL CRISIS. The more people exaggerate these problems…the more pressure there is on these companies, the less we will see in terms of affordable housing”. – Barney Frank, 2003 (D-MA)

He told the AP a few weeks later: “I don’t think we face a crisis. I don’t think we have an impending disaster.”

In 2004 Frank said “I think Wall Street will get over it”, referring to the possible collapse of Fannie Mae and Freddie Mac.

In 2005, the Republicans in Congress offered legislation to basically do what the Bush Administration had proposed two years earlier, and here’s what the Democrat Minority Leader in the Senate Harry Reid had to say: “The legislation from the Senate Banking Committee passed today on a party-line vote by the Republican majority, includes measures that could cripple the ability of Fannie Mae and Freddie Mac to carry out their mission of expanding home ownership. While I favor approving oversight by our federal housing regulators, to ensure safety and soundness, we cannot pass legislation that could limit Americans from owning homes and potentially harm our economy in the process”. That was UPI quoting Harry Reid in July ’05.

This by the way is the same reason they won’t address the other looming disasters like Social Security, Medicare and Medicaid. They just won’t do it. Until we’re on the brink.

As recently as August 16, 2007 – a little over a year ago – Schumer and Dodd, the Chairman of the Banking Committee, called on Fannie Mae and Freddie Mac regulators TO LIFT THE PORTFOLIO CAPS SO THEY COULD GIVE OUT MORE LOANS, to MORE people. They argued that allowing the two firms to buy more mortgages, and we’re talking about these sub-prime mortgages, “at least temporarily” they said, “would inject much liquidity into the market and calm the financial markets.” 

That’s what we’re talking about.

In November 2006, Schumer in an Op-Ed in the Wall Street Journal with New York Mayor Michael Bloomberg“With the benefit of hindsight, the Sarbanes-Oxley Act of 2002, which imposed a new regulatory framework on all public companies doing business in the U.S., also needs to be re-examined. Since its passage, auditing expenses for companies doing business in the U.S. have grown far beyond anything Congress had anticipated. Of course, we must not in any way diminish our ability to detect corporate fraud and protect investors. But there appears to be a worrisome trend of corporate leaders focusing inordinate time on compliance minutiae rather than innovative strategies for growth, for fear of facing personal financial penalties from overzealous regulators.”

They were arguing for REDUCING the regulations that had been passed after Enron!!!!

…We will be paying for all of this now and down the road because of Socialism. That’s what I am trying to explain. That’s why I am taking the time to slog though this. Because it all sounds so foreign – because it has all been going on, behind the curtain. So we really haven’t been aware of it. It’s like Illegal Immigration, been going on for 45 years, they have been passing these laws, and we really haven;t been aware of it. We’re aware of it now, because we are on the hook for it. 

What Chuck Schumer wrote in the WSJ Op-Ed in November 2006, is not what Chuck Schumer says today. Here’s what he said on the senate floor 

“8 years of de-regulatory zeal by the Bush Administration, an attitude of “The market can do no wrong” have led us down the short path to economic recession. From the unregulated mortgage brokers, to the opaque credit default swaps market, to aggressive Short Sellers who were driving down the price of even healthy financial institutions based on innuendo, this Administration has failed to take the steps necessary to protect both Main Street and Wall Street”.

There may not be a silver bullet to fix what is currently dragging down the economy, but we can take steps to mitigate the costs and make sure that the impact of this crisis will be short-term. ” – Schumer, (D-NY)

See, our nation would be far better off without charlatans like Chuck Schumer. We have you dead to rights here Chuck. We have you in writing where you demanded LESS regulation and less oversight. So the fact you go to the senate floor and spew your talking points doesn’t work here.

We have you Barney – we have you dead to rights too. You’re a liar. You fought the reforms the Administration tried to put in place in 2005.

Yet Frank had this to say today:

“The fundamental issue is we have got to put an end to this situation in which there is no sensible regulation, and irresponsible individuals in the private market, or unwise individuals in the private market can incur the kind of risks that put us in a threatening situation,” said House Financial Services Committee Chairman, Barney Frank.

He’s a liar.

Now Barrack Obama, Obama is allied with radical groups like ACORN. These radical Left wing front groups like ACORN which pushed hard for the legislation that Carter put in place – the CRA forcing private financial institutions to make the riskiest of loans.

We have the Clinton Administration dead to rights – including Janet Reno, who insisted that these banks and financial institutions would not be able to survive and expand unless they took a certain amount of their assets and applied them to the riskiest of loans. That’s what they created in 1995 with this sub-prime market – of zero down loans. They were trying to come up with packages so they could meet their federal requirements. And they did.

Then step in the two government-run entities, Fannie and Freddie – and they are buying up these loans from the private sector as far as they can. Now that doesn’t promote home ownership, yet that is what they were in existence to do. So why were they buying up these risky loans?? Because they appeared as assets on their books, even though they weren’t. And the more assets they had, the bigger the bonuses for Franklin Raines, and Jamie Gorelick, and Jim Johnson – these three who are Obama’s ECONOMIC ADVISORS – that’s why they bought them up. It was in their OWN self-interest!!

This corrosive cronyism, has spread throughout the financial institutions in this country. That’s why they are hustling to fix it! Their fingerprints are all over this dammit! Don’t you see???!!! This wasn’t the private sector that did this, this wasn’t any individual company that did this, this is institutionalized corruption – we call it Socialism!!! Every effort to address it by the Bush Administration in ’03, by the Republicans in ’05, was rejected. Rejected by Chris Dodd, rejected by Chuck Schumer, rejected Barney Frank, rejected by Nancy Pelosi and Harry Reid. This is why I rail against this! This is why I rail against the Left and the Socialists.

This isn’t a joke! This is real life!

And now, over the weekend, the Treasury Secretary – who is a Liberal Democrat, and a Friend of Schumer’s – has a plan that sticks us with a bill of over 1 TRILLION dollars!

We’re nationalizing businesses, we’re subsidizing businesses, now we’re going to create a 1 trillion dollar trust??

I tell you what; Socialism Sucks.

Paulson plan could cost $1 trillion

Look what your government has done!!!!!! They have dragged us to the precipice!

You and I weren’t overseeing Freddie and Fannie – you and I had nothing to do with this CRA law – with all these Left Wing grassroots groups – or forcing banks and thrifts to cough up money for risky loans – we had nothing to do with this!

This is what goes on behind the scenes.

“Oh it’s Capitalism and Free Markets that are the cause” – no it’s not – THAT’S the problem!

What kind of a businessman gives a loan to someone who cannot pay it back unless they have a gun to their head???

…So all this crap that is out there – all these bad loans that are out there – they are going to pass them off into this fund, so every business out there that is loaded with these is going to dump them on you and me – the American taxpayer. To save those businesses. And by the way, those businesses – in many cases were forced to make these crap loans by the very people who are going to save us!!!

Senate Banking Committee Chairman Chris Dodd (D-Conn.) said on ABC’s “Good Morning America” said lawmakers were told last night “that we’re literally maybe days away from a complete meltdown of our financial system, with all the implications, here at home and globally.” 


Why is Chris Dodd still chairman of the banking Committee?? Why isn’t he spooning out slop at some federal prison? Why isn’t he in charge of the soap at some Federal prison? 

“What you heard last evening is one of those rare moments — certainly rare in my experience here — was that Democrats and Republicans decided we needed to work together, quickly,” Dodd said.

Funny how they want to work quickly to fix it now – but refused to do so in 2003 and 2005 BEFORE this collapse was triggered.

Congressional leaders tell Politico that to expedite the rescue, Treasury plans to seek additional authority rather than creating a new entity. The plan involves buying up hundreds of billions of dollars in bad mortgages to take them off the books of financial institutions that otherwise might fail”. 

…Yeah let’s hurry up (and fix this) let’s set this thing up before the American people figure out what’s going on. Let’s set it up – because as all the experts keep telling us, “this is just too big to fail!” That’s too big and this is too big – we have to nationalize everything! That’ll fix it! That’s because we know that whatever the government does is okay and whatever the private sector does is horrific.

I’m sick of these Socialists.

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