A Systemic Collapse, By Design, Has Begun

The MF Global Theft and Implosion may start a financial panic, as the Rule of Law is replaced with a kleptocracy run by the Obama Regime.

I continue to be impressed with this fine lady, Ann Barnhardt and her ability to explain her thoughts as cogently and succinctly as she does.  As a broker, her words here should be a klaxon alarm that sounds about the death knell of the Capitalist trading system, that Obama’s own crony, triggered to the collapse you are about to see unfold before your eyes in the coming weeks and months.

The world is at a frightening crossroads, and each direction is a promise of acute pain unlike anything we have endured in our lifetimes.  One direction will lead to mass unrest, violence and bloodshed.  The other, mass death and slavery.

There is no turning back.

Only God can save us from the dark hour soon to come upon the world.

And considering how we have sat on our hands while Our Lord has been tossed from our society, I see no reason for our Lord to do so, unless to demonstrate His unfailing mercy.

But our Lord is no enabler, and He has let civilizations collapse and die violently in the past.

History shows that what replaces what we now face, is far worse than most imagine.

“The Entire System Has Been Utterly Destroyed By The MF Global Collapse”

BCM Has Ceased Operations, the first casualty of a soon coming systemic domino collapse.

by Ann Barnhardt

Dear Clients, Industry Colleagues and Friends of Barnhardt Capital Management,

It is with regret and unflinching moral certainty that I announce that Barnhardt Capital Management has ceased operations. After six years of operating as an independent introducing brokerage, and eight years of employment as a broker before that, I found myself, this morning, for the first time since I was 20 years old, watching the futures and options markets open not as a participant, but as a mere spectator.

The reason for my decision to pull the plug was excruciatingly simple: I could no longer tell my clients that their monies and positions were safe in the futures and options markets – because they are not. And this goes not just for my clients, but for every futures and options account in the United States. The entire system has been utterly destroyed by the MF Global collapse. 

Given this sad reality, I could not in good conscience take one more step as a commodity broker, soliciting trades that I knew were unsafe or holding funds that I knew to be in jeopardy.

The futures markets are very highly-leveraged and thus require an exceptionally firm base upon which to function. That base was the sacrosanct segregation of customer funds from clearing firm capital, with additional emergency financial backing provided by the exchanges themselves.

Up until a few weeks ago, that base existed, and had worked flawlessly. Firms came and went, with some imploding in spectacular fashion. Whenever a firm failure happened, the customer funds were intact and the exchanges would step in to backstop everything and keep customers 100% liquid – even as their clearing firm collapsed and was quickly replaced by another firm within the system.

Everything changed just a few short weeks ago. A firm, led by a crony of the Obama regime, stole all of the non-margined cash held by customers of his firm. Let’s not sugar-coat this or make this crime seem “complex” and “abstract” by drowning ourselves in six-dollar words and uber-technical jargon. Jon Corzine STOLE the customer cash at MF Global.

Knowing Jon Corzine, and knowing the abject lawlessness and contempt for humanity of the Marxist Obama regime and its cronies, this is not really a surprise. What was a surprise was the reaction of the exchanges and regulators. Their reaction has been to take a bad situation and make it orders of magnitude worse. Specifically, they froze customers out of their accounts WHILE THE MARKETS CONTINUED TO TRADE, refusing to even allow them to liquidate. This is unfathomable. The risk exposure precedent that has been set is completely intolerable and has destroyed the entire industry paradigm.

No informed person can continue to engage these markets, and no moral person can continue to broker or facilitate customer engagement in what is now a massive game of Russian Roulette.

I have learned over the last week that MF Global is almost certainly the mere tip of the iceberg. There is massive industry-wide exposure to European sovereign junk debt. While other firms may not be as heavily leveraged as Corzine had MFG leveraged, and it is now thought that MFG’s leverage may have been in excess of 100:1, they are still suicidally leveraged and will likely stand massive, unmeetable collateral calls in the coming days and weeks as Europe inevitably collapses.

I now suspect that the reason the Chicago Mercantile Exchange did not immediately step in to backstop the MFG implosion was because they knew and know that if they backstopped MFG, they would then be expected to backstop all of the other firms in the system when the failures began to cascade – and there simply isn’t that much money in the entire system. In short, the problem is a SYSTEMIC problem, not merely isolated to one firm.

Perhaps the most ominous dynamic that I have yet heard of in regards to this mess is that of the risk of potential CLAWBACK actions. For those who do not know, “clawback” is the process by which a bankruptcy trustee is legally permitted to re-seize assets that left a bankrupt entity in the time period immediately preceding the entity’s collapse.

So, using the MF Global customers as an example, any funds that were withdrawn from MFG accounts in the run-up to the collapse, either because of suspicions the customer may have had about MFG from, say, watching the company’s bond yields rise sharply, or from purely organic day-to-day withdrawls, the bankruptcy trustee COULD initiate action to “clawback” those funds.

As a hedge broker, this makes my blood run cold. Generally, as the markets move in favor of a hedge position and equity builds in a client’s account, that excess equity is sent back to the customer who then uses that equity to offset cash market transactions OR to pay down a revolving line of credit. Even the possibility that a customer could be penalized and additionally raped AGAIN via a clawback action after already having their customer funds stolen is simply villainous. While there has been no open indication of clawback actions being initiated by the MF Global trustee, I have been told that it is a possibility.

And so, to the very unpleasant crux of the matter. The futures and options markets are no longer viable. It is my recommendation that ALL customers withdraw from all of the markets as soon as possible so that they have the best chance of protecting themselves and their equity. The system is no longer functioning with integrity and is suicidally risk-laden. The rule of law is non-existent, instead replaced with godless, criminal political cronyism.

Remember, derivatives contracts are NOT NECESSARY in the commodities markets. The cash commodity itself is the underlying reality and is not dependent on the futures or options markets. Many people seem to have gotten that backwards over the past decades. From Abel the animal husbandman up until the year 1964, there were no cattle futures contracts at all, and no options contracts until 1984, and yet the cash cattle markets got along just fine.

Finally, I will not, under any circumstance, consider reforming and re-opening Barnhardt Capital Management, or any other iteration of a brokerage business, until Barack Obama has been removed from office AND the government of the United States has been sufficiently reformed and repopulated so as to engender my total and complete confidence in the government, its adherence to and enforcement of the rule of law, and in its competent and just regulatory oversight of any commodities markets that may reform. So long as the government remains criminal, it would serve no purpose whatsoever to attempt to rebuild the futures industry or my firm, because in a lawless environment, the same thievery and fraud would simply happen again, and the criminals would go unpunished, sheltered by the criminal oligarchy.

To my clients, who literally TO THE MAN agreed with my assessment of the situation, and were relieved to be exiting the markets, and many whom I now suspect stayed in the markets as long as they did only out of personal loyalty to me, I can only say thank you for the honor and pleasure of serving you over these last years, with some of my clients having been with me for over twelve years. I will continue to blog at Barnhardt.biz, which will be subtly re-skinned soon, and will continue my cattle marketing consultation business. I will still be here in the office, answering my phones, with the same phone numbers.

Alas, my retirement came a few years earlier than I had anticipated, but there was no possible way to continue given the inevitability of the collapse of the global financial markets, the overthrow of our government, and the resulting collapse in the rule of law.

As for me, I can only echo the words of David:
“This is the Lord’s doing; and it is wonderful in our eyes.”

With Best Regards-
Ann Barnhardt

Obama Asserts His Dictatorship

‘We Can’t Wait For Congress” Says Obama on Monday “Where they won’t act, I will” – setting the mantra for accepting his absolute rule over us.

INVAR

Glassy-eyed Americans who are wholly ignorant of Constitutional Law are no doubt cheering The Won, who today asserted before the nation that he will circumvent Congress when they do not act in accordance to his demands.  When they do not, he today asserted that he will act by his own decree without consent or legislation from Congress.

“I’m here to say that we can’t wait for an increasingly dysfunctional Congress to do its job. Where they won’t act, I will”

America, you elected and support an Emperor who we warned would rule you with an iron fist when the time finally came.  What we see now, is the mask of deception dropping and Obama no longer making pretenses to hide what he really is: a megalomaniacal Marxist dictatorial wannabe.

The new “We Can’t Wait” slogan Obama unveiled today – is by far the most in-our-face boot of tyranny ever thrust upon this Republic since the 1860’s, but far more insidious and tyrannical.

Insidious, because it’s clever in it’s application.   It erroneously gives the impression that Obama will act above the petty squalors of Congress and GET RESULTS for the ‘little people’ by his own hand – without the messy delays of dealing with Congress.  It’s an insidious way to get this Constitutionally ignorant people to accept the need to empower a king instead of the boiler room of Congress as intended by our Founders.

So will set precedent, of which 40 years of judicial activism showcases that precedent becomes defacto law – WITHOUT the need for a Congress.

As admitted today, His Heinous will simply ignore the pesky rules of the Constitution in order to create ‘results’.  Results that will benefit his re-election by using taxpayer monies to ‘pay’ for his political army, in gracious handouts and programs from funds he will take from those he will destroy and subjugate, while endearing and expanding  the welfare and dependency class that is wholly beholden to him.

The model is frighteningly familiar.  Mussolini did this exact same thing.  So did Stalin and Hitler both.  Mao comes to mind.  Yet, you watch as more than half this people either will applaud or shrug their shoulders at a brazen admission by Obama, that the Rule of Constitutional Law no longer applies to him.  Giving away houses, cars and student loans to chosen vessels of his regime, is no less than bribing himself to re-election during an economic crisis he and his party created for this exact purpose.

Obama will then rule by decree , something he has subtly suggested over the last few weeks –  and exactly as predicted by this author back in 2008. No mean feat as we read his books and those of his Marxist mentors – so we knew what he meant when he said he would “Fundamentally transform the United States of America”.

Welcome to your change America – from a Representative Republic to a Marxist Dictatorship with the flavor of a banana republic.

This admission and power grab, if unchallenged in the very short term – will pave a very quick succession for actual dictatorial acts that will establish by default – an absolute rule by Obama, who will then use Congress as window dressing, same as in the Soviet Union, where the Politburo was simply there to give an illusion of the People having a voice.

An illusion that hides the very real pain of the shackles and irons of absolute tyranny.

They come for you now America.

Can you hear the clanking?

Or do you instead hear cheers of relief by those bought into slavery of the state?

 

Obama Thinks We Won’t Notice Or That We Don’t Care

Using taxpayer money to buy and sell guns to arm Mexican Drug Cartels; using Solyndra as a money laundering operation with TARP funds; picking an ex-Google Exec from a town hall audience who pleads for his taxes to be raised – Obama thinks he can continue to fool us all with impunity.

By INVAR

Fool me once, shame on you.  Fool me twice, shame on me.  Fool us a third time?  Get re-elected?  There are more tricks and scandalous treats from this regime on a daily basis than you find on Halloween at your average college frat house.  Obama apparently thinks that continuous attempts to bamboozle, lie, obfuscate and otherwise whitewash his misdeeds in front of the American people, is a sign that he is a fit enough politician to be elected as emperor for life.

Either that, or Obama is beginning to crack up under the pressure of trying to keep the lid on the pressure cooker of scandal, lies and guffaws his regime has ignited to the boiling point.  Such a case with a hubris narcissist running the country can be more than dangerous.

In a case of covering -up treason, the propaganda media and the Obama regime are not commenting about the facts in the Gunwalker scandal that funneled guns to Mexican drug lords for the purpose of getting them used on Americans so as to circumvent, infringe and perhaps abolish the Second Amendment. New evidence shows that the Obama regime used taxpayer funds to buy and sell weapons that were sent to Mexican drug cartels. As Fox reported:

Not only did U.S. officials approve, allow and assist in the sale of more than 2,000 guns to the Sinaloa cartel — the federal government used taxpayer money to buy semi-automatic weapons, sold them to criminals and then watched as the guns disappeared.

This disclosure, revealed in documents obtained by Fox News, could undermine the Department of Justice’s previous defense that Operation Fast and Furious was a “botched” operation where agents simply “lost track” of weapons as they were transferred from one illegal buyer to another.

…In June 2010, however, the ATF dramatically upped the ante, making the U.S. government the actual “seller” of guns.

Of course the fact that most Americans don’t know about, or don’t care that these weapons were then used to kill American cops and border agents like Brian Terry, is the one big kahuna Eric Holder’s INJustice Department is counting on for the regime to continue playing it’s plausible deniability game with no real fear of an accounting of what they tried to do.

Then there’s the question about what happened to all the billions of TARP II bailouts since we’re learning that part of it was ordered to be given to faux-front ‘green energy’ business Solyndra that simply laundered the money and resent it back into Democrat’s campaign war chests.

Not only did Solyndra’s execs take the 5th Amendment before a Congressional panel looking into the scandal, documents reveal that the California Democrat Party was listed as a CREDITOR to the now bankrupt company, that refuses to say what it did with all the millions of taxpayer dollars Obama’s regime ordered our government to give them.

Why California Democrats would be creditor to a company that received more than a half-billion dollars in federal loans to build a solar-panel plant isn’t clear. Even party officials say they’re not sure.

Just two years ago, the company received federal loan guarantees of more than $500 million, money it burned through but hasn’t repaid. Because of a subsequent loan restructuring, taxpayers won’t be repaid before the private investors who poured $75 million into the company earlier this year as it tried to stay afloat.

Those of us paying attention and reading through all the Barbara Streisand understand that this was just a good old fashioned mob-ish Chicago-style money laundering operation.  But of course for a huge chunk of Americans who get their news from a cable comedy network , would have no clue what is really going on.  And Obama is counting on that level of woeful ignorance to keep him in the White House and out of prison for fraud and conspiracy to commit fraud.

And if you thought those feats of magic and obfuscation for money laundering and treason were impressive, then something as benign as staging a campaign question for consumption by the useless eaters who vote is almost amateur.  But it does showcase the unwaning arrogance and incredible in-our-face manipulation Obama thinks he can get away with.

Right before NerObama let some truth slip from his lips about Jews being janitors, or that janitors should pay less taxes than Jews – or whatever slogans Obama learned from Reverend Jeremiah Wright from 20 years as a member, His Heinous supposedly picks a ‘random’ member of the audience to ask a question, and BEHOLD! Miracle of miracles! – Obama miraculously gets a “Please raise my taxes” multi-millionaire puppet, who adds himself as a theater prop to Obama’s ridiculous war on the “rich” since he began his outrageous Joint Session of Congressional Campaign Rally:

Politico (the White House Propaganda Office) asserts that Obama made a “lucky pick”.

Oh really?

What are the odds that Obama can pick at ‘random’ from the crowd when supposedly ‘put on the spot’, a rich multi-millionaire former Google Exec who gave more than 230,000 in campaign contributions to the Democrats, to have him spew the current Obama campaign “Buffet Rule Mantra”??  Obama seems to have more ‘luck’ picking at ‘random’ those who lend their credence to Obama’s preaching than actors lined up on the altar at a Benny Hinn Crusade.

This would be almost funny if it was not so dangerous to our liberty and perhaps even our lives.  A ruler who thinks he can get away with committing crimes, fraud, lies, treason and deliberately staged theater for public acceptance of his dictates, simply because he thinks we won’t notice or don’t care, is every measure of a tyrant.

Does Obama really think we’re this stupid – or is he correct to assume the majority of Americans don’t care?

If it’s the latter, prepare for tyrannical doom.

Obama Decides To Break The Law and Use TARP For Whatever He Desires

Dear Leader has decided that he will use the TARP funds for whatever he wants to use them for, even if it is against the law:

Orszag Admits Obama Admin Intends to Break Law

During questioning last week on Capital Hill, Office of Management and Budget (OMB) Director Peter Orszag admitted the Obama administration intends to break the law and use TARP funds for whatever they desire. 

Passed by Congress in 2008 using scare tactics, the $700 billion TARP bailout specifically designated that all monies recouped must be used to pay down the national debt. But President Obama has included the expenditure of TARP funds in his 2011 budget despite its illegality.

It appears the $787 Billion Stimulus package wasn’t a large enough slushfund for the Democrats. They’ve found a golden TARP piggy bank to siphon off monies to purchase votes for the upcoming election.

The law is not just for the little people, Mr. President.

The Glenn Beck ACORN Story: Big Point That Was Missed

The Glenn Beck – ACORN Story: The Big Point that Was Missed 

by John Galt

September 10, 2009

Glenn, God Bless ya Buddy!

I mean that my friend via radio and television. You have done many great things and this current story first broken on the mainstream by your radio show and the fine folks at Breitbart via www.biggovernment.com (Link to story here ) has exposed the fine people at ACORN to be just what they are: Poverty Pimps. It is a good thing they are “helping” with the census because I would hate for underage illegal prostitutes from El Salvador to not be counted and insured they get all the benefits and numerous voting rights for Democrats that they deserve.

As I listened to the program today and then watched the television show, read the link above from Breitbart and thought about all of the news surrounding this and the silence from the state media organs, it hit me that the big story was not that this has happened; hell I think most Americans are desensitized by this now and expect this type of behavior from any organization affiliated with either political party or receiving government aid be it ACORN or Citigroup. The big difference is that all the whores are in the board room at Citi and not seeking shelter in a Federally funded home loan in Baltimore. In fact the big story is not the risk to the lives of those involved in this story but folks, I agree with Glenn: PRAY HARD for all of them as when the dollars get this large, the rules are not exactly the same. The big point thus far is not even the silence from the mainstream media and the various liberal elite proxies acting to promote any activities that further Marxist causes, the Constitution be damned.

The big point is simple:

We have a banking crisis because of what you saw on this video and the activities of the subjects in this story.

The undercover reporters exposed what happened in bank offices, mortgage lenders of every size, and “community assistance” offices nationwide for years now. The price we are paying is just now being realized and the death of companies like Wachovia, Washington Mutual, Indymac, Bank United, Bear Stearns, and Lehman (etc..) can all be related to the story you have heard and watched from Mr. Beck and the crisis expanded upon from that.

So what “that” am I referring to?

The largest credit crisis in American, perhaps capitalist history. It can all be traced back to a series of blunders starting with the New Deal of FDR, expanding in the greed and avarice of the 1999 Gramm-Leach-Bliley Act consummated in an orgy of mercantile swine money-flu with the signature of President William Jefferson Clinton, and culminating with the “Ownership Society” nonsense of President George W. Bush. The failure of all of these Presidents, whether by design or a National Education Association mental impairment, is that government can not create capital without consequences nor expand the perceived right to own a home without defrauding the taxpayer at some point in the process. Alas, here we are with an imitation 19 year old hooker sitting in front of the very pigs that have helped to expand the government trough on behalf of the Republicans and Democrats in a sick, perverted and grossly misguided attempt to prove that capitalism can not survive without the power of the people or influence of the elitists who know better.

The stories started to circulate with the expansion of the housing boom in 2005 where illegal aliens were obtaining financing for home mortgages (See: Illegal Aliens and the Mortgage Mess by Michelle Malkin, NY Post 9/24/08 & Mortgages for Illegal Immigrants Business Week July 30, 2007), credit was extended to anyone with a credit score above 12, and home equity loans were handed out like, well, government grants to community organizers. The problem is that once subprime, or substandard mortgages, were issued to normally unqualified applicants, banksters realized that thanks to securitization of those loans they could dump the problem on willing investors (aka “dupes”) overseas who were convinced that because a rating agency or mega-bankster said “our AAA is as good as the government” then loaning money borrowed at 1% from the Fed at 5% to Speedy Gonzalez or the local 7-11 bag boy making $6.37 per hour was a win-win situation.

Then of course February of 2007 hit and I won’t rehash that again because God forbid we recite history, facts or anything else that might upset WALNUT, CASHEW, ACORN, or some other agency that comes out of the wood work to call me racist because I do not agree home ownership is a “right” (where in the Constitution again?). After the collapse accelerated and all these banksters started to fail, the very same people who created the mess elected to find a perfectly logical solution to the issue by attacking it head on:

Dump it on the taxpayer and go back to the very same ‘Community Organizers’ that determined these people deserved and were qualified for a mortgage to fix the mess.

Thus we see organizations like ACORN and many others, plus subsidiaries and “debt negotiation” companies (owned by the very same banksters who started this mess) creating programs and attempting to help the same people who should never have received a loan in the first place, to renegotiate a 50 year refinancing agreement that they can fail on next year after the election and thus force more taxpayers to fund more programs to insure they don’t lose a home, car, credit card or pet turtle named Wally they bought with credit they were not qualified for.

Ugh.

Thus once everyone realizes the futility in telling people they have to have kids to pay for their parents financing agreements hits home and the parents realize that Socialism really cures it all, the banksters get to keep their profits, the community organizers get to enforce pograms and the taxpayers are told to shut up and support the ‘less fortunate’ because it is their duty to help the state and keep the peace within our new happy hyperinflationary society.

So Glenn, with all do respect, all your ACORN story did was open up an old wound.

If anyone in their right mind thinks the actors who were in the video are not symptoms of a larger problem, well, bleat on and enjoy your cud. The reality is that ACORN and numerous other groups receiving taxpayer funding plus banksters given incentives to do so loaned out hundreds of billions of dollars that will never be paid back. Then the same banksters leveraged that up in the grand world derivatives casino knowing that by making it so large, so complex and so deadly all the parties involved knew they would pocket the gains and dump the risk and ultimate losses on the American people.

The lesson of this is simple:

Get government out of our capitalist system or face the consequences when the hybrid system collapses.

Too bad the lesson is missed on those in power and the problems will be endured by the people for over a decade or more.

Capital flight is Next

Now Boarding at Gate C14: Capital Flight Airlines

by John Galt

June 10, 2009

Ah a beautiful picture of a commercial airliner flying off into the sunset. Except this particular flight is only symbolic of a new phase in the financial crisis which had many a blogger and most people with any sense of sanity deeply concerned:

Capital Flight

I have been warning since last year about the dangers of this happening. I have been screaming that government meddling in the economy, the distortions created by the actions with Bear Stearns, Fannie and Freddie, the banks and now the automobile companies would finally shatter the full faith and confidence of foreign bond and equity holders in our system. Yet the sheeple just graze on their American Idol peanuts like a bunch of ignorant fools while the financial industry says to Uncle Sam “just save me and the hell with the rest of the country” allowing illegal and unconstitutional interventions which distort the true nature of free markets. This dangerous precedent started under that buffoon Bush with the talk up then forced merger of Bear Stearns, an event most have forgotten about because the markets did not experience the ultimate plunge at that time. If one looks at the volume numbers though you could see that everyone, domestic and internationl institutions alike, were disturbed at the process used to incinerate the equity holders of BSC, and worse, the Federal Reserve’s blatant intervention into the management of the company’s assets which is still reflected in their holdings in Maiden Lane, LLC. that has proven to be a losing proposition thus far.

Fast forward now to the summer of 2008 where Fannie Mae and Freddie Mac were taken over by the government, then AIG, then Citigroup, etc., etc. In each case the corporation’s bondholders were made somewhat whole yet that process is still ongoing due to the complicated nature of some of the derivative contracts and other instruments this same government allowed to be created without any supervision or regulatory clue as to the impact on the financial system as a whole. When you have a bureaucrat with taxpayer dollars to guarantee horrid decisions made by private industries, aka “socializing losses, privatizing profits”, then you have distorted the true nature of capitalism and introduced doubt into the functionality and openness of our markets. The first major action last fall to validate the level of distortions started with Hank Paulson’s false bravado about the necessity of the creation of TARP which has turned into what many of us feared, a taxpayer backed slush fund to allow government takeovers of private corporations without due process. That was followed up with the folly of banning short sales on “financial” companies by the SEC which was a joke as many manufacturers were included in the original list and that accomplished zero, zilch, nada with regards to any stabilization of the system and in fact truly induced some foreign institutions and hedge funds to say “goodbye” to the American markets as open and free participation was now a government controlled function and not a function of the natural activity of markets.

That was under Bush, when the dangerous precedents were set.  Let’s fast forward to the current day and age several months later when a Socialist President Obama has usurped not just the rule of law, but the basic foundations for the establishment of capitalist markets and our system of finance.

To state that the events of the last ninety days are profound is an understatement. I wish to provide an example that most at home can relate to and will exhibit the audacity of hope, change and fascism we are witnessing on a national scale. Imagine you are living happily at home but due to some job problems at your wife’s place of work her pay is cut in half due to the scaling back of hours thanks to the economy. Your pay is also cut back but not to that degree and your household starts to have problems paying its bills. After paying your mortgage payment late a few months, your local bank representative urges you to attend a meeting to discuss this problem to prevent any action of foreclosure against you if you miss another payment. The bank rep says that only one of you need attend so you elect to go so your wife can work that day. You arrive at the bank and sit down with the head of the home loan division and he has a huge file in front of him that contains all of your mortgage paperwork, payment history, etc. The discussion begins about the problems you are having at home and you explain the troubles you are having. The manager looks  you in the eyes and says “Well, it would appear to me the solution is obvious. You will have to divorce your wife if  you wish to remain in your home. If you do not within the next fourteen days, we will begin foreclosure proceedings.”

That fictional scenario is exactly what happened when Obama fired the CEO of General Motors. The independent Chief Executive Officer was terminated by a non-member of the Board of Directors, a non-shareholding interest who’s only action was to act as a loan source for comany operations. That direct and illegal action should have been (and you were warned by these pages) your first hint that that “damned piece of paper” as Bush called it was no longer relevant. The other aspect one had best consider is that the takeover using taxpayer dollars of AIG, Citigroup and other institutions gave the government trading desks to command and the power to order purchases of various instruments to influence the direction of bond and equity markets. Yet few believed in the PPT and write it off as fluffernuttery; however, how can it be dismissed now when Smith Barney/Morgan Stanley’s trading desk along with AIG’s are now under the thumb of government oversight and this administration has demonstrated openly that regulatory oversight and free markets are irrelevant to their activity and desired goals. It can not now nor ever. The non-shareholder forced bankruptcy by the government with imposed redistribution of assets in the 363 filings for Chrysler and General Motors should prove that beyond the shadow of a doubt.

That being said, last night’s Supreme Court decision and lack of intervention has opened the door to a flight of critical proportions. With contract law now essentially up to the whim of a bureaucrat and not the private agreement between two individuals or corporations, there is no viable guarantee that investment dollars via bonds, preferred shares or common shares hold any validity. They now are as viable as a casino chip and to say that I am overstating this is foolishness on your part. Judge Andrew Napalitano on Glenn Beck’s program Monday evening on the Fox News Channel warned that if this case is not heard and the request for a full hearing denied, it would be almost impossible for any contract law to be worth the paper it was printed on as the Federal government, not the rule of law, would be the determining factor in the validity of any aspect of said contract.

The implications of this are obvious as we are now no different than the Russian Mafia run corporations that defaulted on foreign investors on a regular basis in the 1990’s, where the Russian government took over corporations and seized shareholder and bondholders interests without even batting an eyelash. Foreign capital has yet to return to the Republic of Russia with any volume or voracity and thus one has to ask the question:

Are we really that different?

The answer is obviously a resounding “NO” as any guarantee and faith that backed the rule of law behind our investing instruments is now null and void if the Obama administration feels the empathy to say so otherwise. The result will be a quiet, and I do mean very quiet, exodus out of dollar denominated assets and investments by foreign investors, including sovereign wealth funds and banks. As that exit accelerates and becomes more obvious it will be reflected in the TIC report and US Dollar index first and foremost. Once the US Dollar index drops below the 72 level again, the capital flight will become obvious to all parties involved in our nation and the destruction of our financial system will accelerate as the Federal Reserve will be forced to intervene by monetizing the debt at an accelerated pace to offset the selloff of our Treasuries and to prevent a further collapse of the real estate industry domestically. The problem is now set in place for this problem to feed on itself and there is no exit since the politically unpalatable choice of allowing the natural flow of business, bankruptcy and rebirth, to occur. Thus I look for the remainder of this year to be the most politically unstable period of time in modern American history, and for the world to exit our nation financially to preserve their systems to the best of their ability.

Please put your trays and seats in the upright position. Turbulence is ahead.

 

Obama Requires Your Sacrifice

Obama Makes You Sacrifice for Him

Ben Shapiro
Wednesday, June 03, 2009

Let us compare two historical situations. One took place several thousand years ago. The other took place on Monday. 

According to legend, during the 13th century B.C., there was a Greek king named Agamemnon. He was bound and determined to attack and raze the city of Troy. When Agamemnon sought to launch his ships for Troy, however, the goddess Artemis sent a stagnant wind to stop Agamemnon’s fleet. Agamemnon responded by calling out his daughter, Iphigenia, and sacrificing her to appease Artemis.

Fast forward to last Monday. In announcing the bankruptcy of General Motors, President Barack Obama spoke directly all those who would lose their jobs and their livelihoods. “I want you to know that what you’re doing is making a sacrifice for the next generation — a sacrifice you may not have chose to make, but a sacrifice you were nevertheless called to make so that your children and all of our children can grow up in an America that still makes things; that still builds cars; that still strives for a better future,” he said.

Obama is fond of calling upon Americans to make sacrifices — or rather, he is fond of forcing Americans into sacrificing themselves at a time and place of his choosing. Heroic sacrifice requires volunteerism, or at least an element of extraordinary choice; Obama’s sort of sacrifice runs along Agamemnon-esque lines. He names the time and the place, and you are expected to put your neck on the altar. 

Obama’s sacrificial ideology is particularly egregious because it targets minority groups who can do nothing to defend themselves. Obama targets the taxpaying minority, forcing them to pay for bank bailouts and auto gratuities while falsely promising that taxpayers will earn that money back (when do we get our checks?). He targets GM bondholders, the same folks whose retirement money has been keeping the ailing carmaker afloat; his new bankruptcy plan makes their holdings worthless. He demonizes Chrysler’s investors as “speculators” and attempts to portray them as villains in Chrysler’s demise. He forces banks to take TARP money, then defenestrates bank chiefs and caps executive pay. 

It would be one thing if Obama expected all Americans to sacrifice equally. Clearly, however, he does not. He, for one, isn’t willing to sacrifice — he’s ready to spend $24,000 of taxpayer money to take his wife on a date to New York. And Obama doesn’t expect his allies to sacrifice, either. The United Auto Workers, whom Obama has praised for its “sacrifice,” now owns a majority of Chrysler and a huge chunk of GM; not coincidentally, UAW gave millions to Obama’s campaign. Obama refused to bail out California unless it revoked pay cuts for members of the Service Employees International Union; not coincidentally, SEIU gave $33 million to Obama’s campaign. 

Obama’s self-centered idea of sacrifice — sacrifice yourself on Obama’s behalf, or he’ll sacrifice you — doesn’t stop at the water’s edge. America’s foreign allies are feeling similar pressure to sacrifice themselves for Obamemnon’s glory. Thus, Obama presses Israel to stop building new houses in Jewish Jerusalem while encouraging Palestinian Arabs to build illegal settlements within Jerusalem. Thus, Obama tacitly allows Iran to develop nuclear weapons and reaches out to the illegitimate mullahs while stifling any freedom movement within Iran. Thus, Obama allows China to violate human rights while offering them the Good Housekeeping Seal of Approval for their supposed work on global warming — all in order to entice China to keep buying our debt. Sacrifice, it seems, is only to be made by those who least deserve to make it. 

There is one crucial difference between Agamemnon and Obama: Agamemnon led his troops to victory at Troy. Iphigenia was merely an innocent bystander used to accomplish his purposes. Obama, by contrast, is bound to lead America to ruin precisely because of the sacrifices he is forcing upon the most productive Americans and our most important allies. 

Obama’s philosophy makes the sacrifice of individual liberty irrelevant to the broader communal good as he defines it. What we are losing on the Altar of Obamemnon is far more than a few bucks — it is the fundamental basis of free government.

Something Wicked This Way Comes

A Socialist Agenda of Saul Alinsky Is Being Waged by Obama and the Democrats

“We are the hungry ones. Your torments call us like dogs in the night, and we’re to feed and feed well.  We stuff ourselves on other people’s nightmares and butter our plain bread with delicious pain…We suck that misery and find it sweet.  We search for more, always” – Mr. Dark,   Ray Bradbury’s Something Wicked This Way Comes

 

We are moving so fast towards a Marxist tyranny, we cannot keep up with everything that is happening and being proposed and imposed.

Just today, during the signing of Porkulus in Denver – Obama stated that we will have “smart meters” put on all our homes – to ‘monitor’ our energy use, in which he lied boldfaced about the intent of such a device.  It is NOT to cut our energy costs or cut down on power outages – but it is a device to meter and document WHEN and HOW you use that energy, and to report it to the government for taxation.

Obama said that he will be launching “other” aspects of an ambitious plan to ‘change’ the country.

Roger King from the Canada Free Press documents the Marxist agenda of the first few weeks of this regime we will suffer under.

 

Something Wicked This Way Comes

By Roger King  Tuesday, February 17, 2009 

Barack Obama’s has been in power for about a month but his promise of “change” appears to be more than just a liberal agenda. Not only is it becoming apparent that the economic crisis is being used to push a socialist agenda that would make Sol Alinsky proud but there are some very disturbing signs how the Democratic plan to win subsequent elections.

Bailout Bill

Obama campaigned on a message of “hope over fear” but his current rhetoric talks about a crisis of catastrophic scope if the bailout bill isn’t passed immediately. What makes this suspicious is the fact CBO states most of the bill will only take effect at the end of 2010 and will actually hurt our gross national product over the following 10 years. Its apparent president Obama used this bill to accomplish things that would have been much harder to pass on their own merit.

 

Religious discrimination: Buried in the bill is a section that bans religious activities in many public education buildings. Further, there are upgrades to the national school systems but they are prohibited where religious activates may occur. Democrats voted 43-54 against an amendment to strike from the economic stimulus bill language that discriminates against people of faith.

Universal Health Care: The outline for Universal Health care will be put in place through this bill. In mandating a computer system for all medical records, every person will be mandated to have their records recorded in Federal DB. 
A National Coordinator of Health Information Technology is going to be created to monitor this system. This outline will likely be used to track treatments to make sure your doctor is doing what the federal government deems appropriate and cost effective. Hospitals and doctors that are not “meaningful users” of the new system will face penalties.

ACORN: Potentially up to $4 billion for radical groups like ACORN will be dispersed. ACORN is a radical socialist group that helped the housing bust by pushing banks into making bad loans and is accused of voter fraud in over 6 states. This group openly supports the Democrats and their tactics were learned through Sol Alinsky teachings. Obama even taught these classes to ACORN in his Chicago days.

Open Ended Welfare Returns: The bill sets in motion another $523 billion in new welfare spending that is hidden by budgetary gimmicks. Although this bill pretends that most of its welfare benefit increases will lapse after two years, the intend for most of these increases to become permanent. Instead of Welfare ending for recipients in 5 years that was done during the Clinton administration, now welfare entitlements will be open ended.

 

TARP Funds to Control Business

TARP funds have been used to buy stock in banks and financial institutions which essentially is the government buying ownership stakes in these companies. The question is will the government keep this ownership and for how long. President Obama has also decided to limit the executive pay to no more than $500, 000 per year for those companies that receive the bailouts. Of course they say these are only temporary measures but no end date has been given. To top it off Barney Frank is proposing that the government regulate the pay for all executives but for some reason not for lawyers or the Hollywood elite.

Gun Control

In the first session of Congress the liberals introduced H.R. 45 (Blair Holt’s Firearm Licensing and Record of Sale Act of 2009). This bill targets anyone who owns a gun by requiring them to register all guns within 2 years. Every 5 years the gun owners much go through a renewal process for each gun they own. Failure to comply with these rules carry heavy penalties jail time and loosing your guns. Probably the worst provision authorizes government searches without warrants. A new federal bureaucracy will be created to monitor this process. Do you really expect the liberal elites to allow automatic gun renewal?

Silencing The Media

To anyone but the most ardent liberal, its quite apparent that the majority of the media is blatantly supporting Obama’s ever action. The revelation that for 17 years Rahm Emmanuel (Obama’s Chief of Staff), George Stephanopoulos (ABC News), James Carville and Paul Begala (CNN) have had daily hour long calls that have continued into the Obama administration is but one example. Even though CNN is selling Obama shirts they will tell you they are not bias. Actions by the Obama administration have made it quite apparent to the media you are either with Obama or you will systematically be silenced.

For those that don’t follow “the program”, you will be punished. For example, during the election the Washington Times, Fox News, N.Y. Post and Dallas Morning News got kicked off the Obama’s plane. It wasn’t lost on the press that all these groups were McCain supporters. During press conferences Obama preselects who will be called to ask questions. Ask the wrong questions and you won’t get picked again. Again this isn’t lost on the adoring press.

Using one of Sol Alinsky’s sayings “Pick the target, freeze it, personalize it, and polarize it.”, President Obama told Republican’s “You can’t just listen to Rush Limbaugh and get things done.” Although so far President Obama has claimed he doesn’t want a fairness doctrine, there is a growing push to bring back some form of the “Fairness Doctrine”.

Obama has already talked about wanting more minority ownership and requiring broadcasters to operate “in the public interest” which will be over see by government or community groups. To add to the pressure shortening licensing terms will make it more likely owner will just abandon talk radio. The House Energy and Commerce Committee is also looking into policies that would allow it greater internet oversight.

Census

The census taking is supposed to be ruled in a bipartisan manner. However, the Obama administration is attempting to move the execution of the U.S. Census from the Department of Commerce to the White House under Rob Emanuel’s control. This is totally unprecedented and against federal law. Sen. Judd Gregg withdrew his name from consideration as Sec. of Commerce in large part because of this action.

So what is the problem with having the White House running the Census? The census results drive how welfare and aid to states is distributed. Further congressional seats per state and the electoral college changes with these results.

Instead of having the normal direct count, Robe Emanuel wants to estimate numbers instead of an actual count for minority groups. To make matters even more interesting, under the White House direction there would be less requirements for openness as to the process that was used to arrive at the census results. Talk about the potential for major gerrymandering that could bring a windfall of new Democrat votes.

Illegal Immigrates Getting Amnesty

Once again there is an immigration bill working its way through Congress. It would give Illegal Aliens 24 hour to get access with their lawyers paid with tax payer dollars. Temporary Visa can be renewed indefinitely. Tax payer money would also go to Mexico to have their . Illegal Aliens won’t have to pay back taxes but will get tax credits. North American Union will be fast tracked. In state tuition to college will always apply.

When our country is in such a bad recession, why would you want new citizens that inherently use over twice tax money than they play? Why would we want more workers in our country when unemployment is over 7%? Again they overwhelmingly vote Democratic.

District of Columbia to have Congressional Votes

Democrats want to give full representative to District of Columbia thereby giving them two senators and a representative for the House of Representatives. Since only states have this ability, Congress will pass a law giving the District of Columbia “the functional equivalent of a state”. On February 11, 2009 a senate committee passed this very bill and will be voted on by all members in the coming weeks. You would be right if you guessed that the District of Columbia would vote Democratic?

Civilian Expeditionary Workforce

While on the campaign trail Barack Obama said “We cannot continue to rely on our military in order to achieve the national security objectives we’ve set. We’ve got to have a civilian national security force that’s just as powerful, just as strong, just as well-funded.” You Tube Link

Now, the Defense Department has established just such a “Civilian Expeditionary Workforce” (Defense Department Directive 1404.10) that will see American civilians trained and equipped to deploy overseas in support of worldwide military missions.Link According to a Defense Department report the intent of this program “is to maximize the use of the civilian workforce to allow military personnel to be fully utilized for operational requirements,”

Is this an initial step towards fulfilling president Obama’s promise to form a civilian national security force as powerful as the U.S. military? Will this “Civilian Expeditionary Workforce” ever be used in the US? Will we see “youth brigades” roaming the streets to protect us? We will have to keep a close eye on this.