The Freedom Factory

President Obama pushes ratification of gun trafficking treaty, housing market continues to crash-new home starts down 11% and foreclosures jumping 17%, Senate to call panel to investigate illegal NSA domestic spying, Obama unveils plan to spend another $13 billion and build high speed trains (it’s a down payment), Democrats attack Texas Gov. Perry over secession comments at tea party, Freedom Watch sues dictator Hugo Chavez for acts of terrorism and human rights violations, and a bit of good news: mystery donors give $45 million to universities… Continue Reading

HUD program turns out to benefit contractors and not the poor…go figure! China cranks up its printing presses-expect global inflation, Peter Schiff (“Dr. Doom”) discusses his book “Crash Proof”, Goldman Sachs plans to sell billions in stock to pay off government aid ASAP, gas prices up 5% in 3 weeks…inflation? Top U.S. general says we’ll be out of Iraq by 2011, and 75% of Americans want to lift Cuba embargo… Continue Reading

Big Brother set to take over pre-Kindergarten education, John Stossel points out consequences of government education, $5 billion bailout unrolled for auto suppliers, government hiring Wall Street analysts caught in financial crisis, economists predict deflation will cause mortgage rates will drop to 4.2% by end of year, and Big Brother’s favorite life insurers set to receive bailouts… Continue Reading

Anti-Capitalist protests turn violent in London, Venezuela’s Chavez accuses U.S. of acting like an ‘empire’, House passes bill to allow corporate bonuses, Obama brings back the ‘death tax’, and U.K. home prices rise for first time since 2007… Continue Reading

China and Argentina strike currency swap deal to reduce reliance on U.S. dollar, the tax man cometh…be prepared, Obama plans to ‘ease’ GM into bankruptcy, California able to raise more money than expected in debt market; $44 billion a year, trillions over decades, and tens of thousands killed to fight drugs…worth it? Mexican police convoy ambushed-4 dead, U.S. home prices crash over 19% in January… Continue Reading

Former Federal Reserve Chairman, Alan Greenspan, published an editorial in the Wall Street Journal today that absolves himself of any wrong-doing in the housing bubble and its subsequent destructive aftermath. Latching onto a weak argument that circa 2002 long-term mortgage and short-term federal funds rates had statistically diverged in correlation, he suggests that the overcapitalization of housing resulting from cheap credit was not his fault. Many critics have pointed the finger at Greenspan for setting short-term rates too low for too long. Access to cheap credit, according to critics, sparked “irrational exuberance” in the housing market, flooding the sector with unprecedented capital and driving prices to ridiculous levels.

Rather, Greenspan blames global trade in boosting foreign savings rates and leaving the U.S. with large current account imbalances that were subsidized by our trading partners. The current account cash flows went almost exclusively into housing, driving long-term mortgage rates to unprecedented lows and encouraging speculation.

Hilariously, in his editorial Greenspan cites famous economist Milton Friedman as saying that during Greenspan’s tenure from 1985-2005, “There is no other period of comparable length in which the Federal Reserve System has performed so well. It is more than a difference of degree; it approaches a difference of kind.”

Friedman did not live to see the aftermath of Greenspan’s policies. Short-term federal funds and long-term mortgage rates did diverge in correlation, but they did so precisely because of Fed and other governmental policies. The structural distortions in our economy leading to sustained trade imbalances were caused by irresponsible monetary and fiscal policies. Congress legislated the creation of the secondary mortgage market, mandated that it funnel capital to subprime borrowers, and taxed away America’s industrial base. Couple this with a sustained period of negative real interest rates orchistrated by Greenspan, and the U.S. economy grew ridiculously distorted over time, channeling the world’s savings towards our consumption, leaving the country bereft of productive capacity. Housing is not productive, but consumptive.

Global trade is not the problem. Current account and trade deficits, of themselves, are not the problem. Artificial interest rate manipulation, social engineering legislation that drives consumption over production, and inflationary monetary policy that drives perpetual inflation and currency debasement are the issues.

Mr. Greenspan accuses his detractors of rewriting history, but that is precisely what he is attempting to do.

Will Washington D.C. have new legislative rep? Top technical trader says now is the time to buy stocks, Fed Chief vows to flood economy with dollars, U.S. plans to give away $900 million to Gaza, home price index declines sharply, lobbyists want more bailouts, combat troops exiting Iraq in 2010, scientists often confuse fact with opinion, and this is not your father’s country anymore…just the latest in your Freedom Under Fire Report!

Everyday our liberties and freedom come under fire. The American Republic once protected its citizens from arbitrary abuse, extortion, and deliberate social engineering. Now the very same public servants who were meant to work for us connive daily on how to control our lives. The Republic is gone and we are left to fend for ourselves, to put up resistance to every encroachment on individual self-determination. The Freedom Under Fire Report provides daily coverage of the most important issues, so that you remain informed and ready to defend yourself. Read on and pass this around to everyone you think could benefit:

Senate Advances Bill to create Seat in House for Washington. The Senate advanced a proposal to give residents of Washington, D.C., a voting member of the U.S. House of Representatives. This motion went forward with a 62-34 vote, which would also give Utah a fourth representative. President Obama was co-sponsor of this measure while acting as Illinois Senator. Critics cite the heavy leaning Democrat base in Washington as reason for Democrats pushing for the measure. Another seat in the House would further tip the voting balance in their favor.

Top Technical Trader Predicts Near Term Rally for Stocks. Elliot Wave International Inc.’s Robert Prechter, who advised shorting U.S. stocks three months before the bear market began, is recommending investors end that bet and buy stocks. He warned of a “sharp and scary” rebound for anyone still wagering on a retreat. “This is an environment of escalating financial chaos. Our main job is to keep the money we have. If we exit [close short positions] now, we will do that.”

Bernanke Vows to Use Every Tool to Stem Financial Crisis. Federal Reserve Chairman Ben Bernanke told the Senate Banking Committee today that he is “committed to using all available tools” to stem the financial crisis and unfreeze credit markets. You can expect a good deal of money printing to accompany this statement. Buy gold.

U.S. Plans to Give Away $900 million to Rebuild Gaza. The U.S. plans to offer more than $900 million to help rebuild Gaza after Israel’s invasion. The funds are supposed to be diverted to the U.S.-backed Palestinian Authority, circumvented from Hamas, which currently controls Gaza. Senator Clinton intends to announce this give-away at a conference in Egypt next week, but the measure still needs to pass Congressional vote.

Home Price Index Shows Sharp Declines at end of Year. The Case-Shiller home price index measured an 18.5% year-over-year decline in December of last year for 20 major metropolitan areas. Housing prices dropped 2.5% from November to December. The real estate crisis is not behind us just yet.

Lobbyists Press for Billions more Added to Bailouts. The government faced mounting pressure on Monday to put billions more in some of the nation’s biggest banks, two of the biggest automakers, and the biggest insurance company, despite the billions is has already committed to rescuing them. Upwards of $200 billion have already been committed to AIG, Citigroup, General Motors, and Chrysler, but combined these companies, alone, are requesting tens of billions more.

U.S. Combat Troops Evacuating Iraq mid-2010. President Obama intends to remove all combat troops from Iraq by August, 2010. An estimated 30,000 to 50,000 soldiers will remain in the country to advise and train Iraqi security forces and to protect U.S. interests.

Scientists Confuse Opinion with Fact in Politics. Dr. Pielke, a professor in the University of Colorado’s environmental studies program, discusses his book “The Honest Broker.” The premise is that most scientists are fundamentally mistaken about their role in political debates. Dr. Pielke says they jeopardize their credibility while impeding solutions to problems like global warming. “Too often,” Dr. Pielke says, “they [scientists] pose as impartial experts pointing politicians to the only option that makes scientific sense. To boster their case, they’re prone to exaggerate their expertise (like enumerating the catastrophes that would occur if tehir policies aren’t adopted), while denigrating their political opponents as ‘unqualified’ or ‘unscientific’.” The policy areas cited as examples in his book are global warming, and issues related to population growth.

This is Not Your Father’s Country Anymore: Buckle Up for “Shared Sacrifice”. CNN correspondent Jack Cafferty laments on the changes he has seen in America throughout his life. He cites that the national debt is fast approaching $12 trillion, with just the interst payment reaching $500 billion a year. On top of this Cafferty adds the “tens of trillions in unfunded liabilities” for Medicare and Social Security, with trillions more debt coming down the line with the myriad bailout measures. With such a long history of bad policy, bad government management, the only eventuality is to prepare for a “shared sacrifice” in dealing with lower lifestyle expectations. Why would productive, intelligent young folks accept a “sacrifice” forced upon them by the bad decisions of previous generations? The reality is that those you most want to stay in this country will likely find cause to leave.

Everyday our liberties and freedom come under fire. The American Republic once protected its citizens from arbitrary abuse, extortion, and deliberate social engineering. Now the very same public servants who were meant to work for us connive daily on how to control our lives. The Republic is gone and we are left to fend for ourselves, to put up resistance to every encroachment on individual self-determination. The Freedom Under Fire Report provides daily coverage of the most important issues, so that you remain informed and ready to defend yourself. Read on and pass this around to everyone you think could benefit: Continue Reading

Everyday our liberties and freedom come under fire. The American Republic once protected its citizens from arbitrary abuse, extortion, and deliberate social engineering. Now the very same public servants who were meant to work for us connive daily on how to control our lives. The Republic is gone and we are left to fend for ourselves, to put up resistance to every encroachment on individual self-determination. The Freedom Under Fire Report provides daily coverage of the most important issues, so that you remain informed and ready to defend yourself. Read on and pass this around to everyone you think could benefit: Continue Reading