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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…

HUD Program Benefits Contractors, Not Poor. A federal program designed to help poor families buy affordable homes has actually been lining the pockets of investors and contractors.

China Cranks Up Printing Presses: Inflationary Pressures Mount. The People’s Bank of China said it will ensure sufficient liquidity to sustain economic growth, following news that new loans jumped sixfold to a record in March. It pledged “ample liquidity” to “ensure money supply and loan growth meet economic development needs.” In other words, China intends to follow the U.S. path to printing its way out of recession. This will significantly enhance global inflationary pressures.

Real estate is a great way to hedge inflation. Owning investment property gives two big advantages: (1) Rental rates increase with inflation, and (2) fixed rate mortgages lock in low rates now before inflation takes hold. Consider this Apartment Building Cash Flow System in helping you get started.

Worried about inflation? Does the Federal Reserves scare rather than comfort you? Peter Schiff was one of the few who predicted the financial crash last year. He predicted the housing crash of 2007. And now he predicts a Treasury and U.S. dollar collapse as our government tries to borrow, inflate, and spend its way out of our current problems.

For practical ways to shield your portfolio from the coming storm, check out Crash Proof, in which he explains America’s problems and points to how you can protect yourself.

Goldman Sachs Selling Shares To Pay Off Government. Goldman Sachs will sell $10 billion in common stock to repay U.S. Treasury aid received throughout the financial crisis. A 47% gain in the company’s stock price this year and a return to profitability in the first quarter may help the company meet its funding target. Goldman is one of a growing list of banks and financial institutions rushing to repay federal aid amidst growing government involvement in regular business operations.

Gas Prices Up 5% In 3 Weeks. Gasoline prices have surged 5% in the last 3 weeks, rising 9.6 cents to $2.05 per gallon at the pump. Tillby Lundberg, who published the report, says this is likely due to ‘seasonal demand’ in which prices typically rise during spring and summer months. With $13 trillion in new money printed by the Federal Reserve in the last 16 months, this could be a more ominous sign of encroaching inflation. Watch energy and food prices in the coming months for further indication.

Top U.S. General Says We’ll Be Out of Iraq By Late 2011. General Ray Odierno, the top U.S. military commander on the ground in Iraq, said that he believes U.S. troops will be out of the country by the end of 2011.

Seventy-Five Percent of Americans Want To Lift Cuba Embargo. A new pol shows that 75% of Americans think the U.S. should lift its travel ban and trade embargo with Cuba. The Obama administration is taking steps to relax relations with the island nation, signing new rules on travel for family members and money remittances.

Everyday the news points in a single direction: the growing size of government and its role in the economy. With every new bailout, every new trillion dollar printing press party by the Federal Reserve, and every new regulatory edict by the President or Congress, our society moves closer to a political economy. Free trade, free enterprise, Capitalism…these are words of a forgotten age. Regardless of your political persuasions, we must all face the reality that confronts us. Now is the time to learn how policy drives markets, so that you can protect your portfolio, insulate it from the whims of the Bureaucratic Machine, and maybe even make a profit along the way. To learn how the New Order will affect your portfolio and how you can protect yourself, read Obamanomics: A Guide to Investing Over the Next Administration.

You just finished reading Freedom Under Fire, Apr. 12th, 2009 on The Freedom Factory. Please consider leaving a comment!

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.

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China launching massive domestic stimulus, details on the $275 billion homeowner bailout, landmark Supreme Court ruling for drug makers, Chavez declares war on opposition media and nationalizes a U.S.-based company, lawmakers defend 9,000 earmarks including “swine odor research”, and a Russian economist predicts civil war in U.S. in 2009…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:

China Announces Massive Domestic Stimulus. Chinese Prime Minster Wen Jiabao revealed an ambitious domestic spending program to counter the economic downturn. The plan includes a barrage of construction, increased subsidies and economic measures designed to get Chinese to spend and consume more goods. This comes after a $585 billion spending plan announced last November. The big question remains as to the magnitude of its wealth reserves it intends to invest domestically, versus in acquisition of U.S. Treasury securities.

Recommended reading: A Bull in China: Investing Profitably in the World’s Greatest Market by Jim Rogers

White House Discloses Details on Homeowner Bailout Program. In the most ambitious effort since the 1930′s to aid troubled homeowners, the Obama administration has pledged $65 billion in a variety of incentives to restructure mortgages. The Treasury will offer mortgage-servicing companies upfront incentives of $1,000 for every loan they modify and additional payments of $1,000 per year for the first three years if the borrower remains current. They will also pay $1,000 per year to directly reduce the borrowers loan amount. All banks that received federal assistance through TARP or other subsidies are required to participate in this plan. The cost of this plan for some reason does not include the $200 billion in capital the Treasury is providing to Fannie Mae and Freddie Mac to support this plan.

Drug Approval is Not a Legal Shield for Lawsuits. In one of the most influential court cases for the pharmaceutical industry, the Supreme Court ruled that having federal government approval for product and labeling does not protect companies from litigation. This case will have big impacts on the cost of health care as litigation costs increase.

Congressional Democrats Oppose Obama’s Tax Hikes. President Obama is proposing to limit itemized tax deductions for high income earners, including write-offs for charities, mortgage interest on real estate, and state and local taxes. Congressional Democrats are opposing these plans, citing that they will stifle private charities and further depress the real estate market at a time when it is already suffering collapse.

Chavez Declares War on Opposition Media. Venezuela’s dictator, Hugo Chavez, laid out plans to identify and persecute opposition media. He wants governors and mayors to document which media sources are “in the hands of the oligarchy.” He claims that if it were not for exaggerated broadcasts opposing his policies he would have at least 80% of the popular vote.

Venezuela Nationalizes U.S.-Based Food Company. Dictator Hugo Chavez ordered the nationalization of at least some of the operations of the U.S.-based food giant, Cargill, and threatened to do the same with the Caracas-based food company, Polar. Cargill currently has 2,000 employees in 22 locations in Venezuela.

Lawmakers Defend Earmarks in $410 billion Spending Bill. At latest count there are over 9,000 earmarks in the $410 billion spending bill that just made its way through Congress. Critical attacks on the earmarks have become so harsh and numerous that members of Congress are stepping up their defense of the pork programs. The 1,000+ page bill has such ridiculous items buried inside that some members of Congress are ashamed, including 13 projects sought by a lobbying group that is now shut down for funneling illegal campaign contributions to lawmakers, money for “swine odor research”, tattoo removal, the “Mormon cricket”, Polynesian Voyaging Society, and the American Lighthouse Foundation. Lawmakers defend their claims that these projects, and the thousands more like them are essential to the nation.

Russian Economist Predicts Civil War in U.S. Russian professor of economics, Igor Panarin, predicts civil war in the U.S. in the fall of 2009, saying that a huge crisis is likely to develop. He predicts the U.S. will be divided into 6 different states and be influenced by external powers, including Russia, China, the United Kingdom, and even Mexico. “The dollar is not backed by gold and there are too many dollars in this world.” He also says that Alaska should return to Russia and that Moscow will turn into a financial center, and Russia will recover from the economic crisis as the Ruble takes the place of the dollars as a reserve currency.

You just finished reading Freedom Under Fire, Mar. 4th, 2009 on The Freedom Factory. Please consider leaving a comment!

ACORN in the news: leftist group launches campaign of lawlessness to seize foreclosed homes, mysterious bank payment of $2 million, Obama promises ACORN role in White House policy, and NY ACORN leader confronted by TV anchor. In other news, regulators inch towards bank ownership, Medicaid receives emergency $15 billion from spending bill, economists predict recovery in 2010, Biden appointed “stimulus Czar”, and poll shows Americans trust politicians more than business leaders to run economy…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:

Regulators Inch Toward Bank Nationalization. Federal regulators will launch a revamped program to “shore up the nation’s troubled banks,” including the option of increasing government ownership. Reluctant to head down the road to nationalization, regulators continue to suggest that keeping banks private in the long run is still a priority: “Because our economy functions better when financial institutions are well managed in the private sector, the strong presumption is that banks should remain in private hands.”

Medicaid to Receive $15 billion from Spending Bill. Addressing the nation’s governors, President Obama announced that $15 billion of the recently passed American Recovery and Reinvestment Act will be immediately available for Medicaid. Medicaid is a jointly underwritten program between the federal and state governments, designed to provide health coverage for the poor.

Economists Predict Recovery in 2010. A survey of leading economists forecasts a deep and painful recession through the end of 2009, at which point they see a modest recovery, followed by solid growth in 2010.

New Role for Vice President Biden: “Stimulus Czar”. Vice President Joe Biden has been appointed to oversee implementation of the $787 billion American Recovery and Reinvestment Act. Part of the spending bill will be maid immediately available this week for Medicaid programs.

Poll: People Trust Politicians More than Business Leaders to Fix Economy. According to a new poll it seems as though people have more faith in politicians to manage the economy than they do business owners and managers. 30% of those questioned have confidence in Wall Street executives to make the right decisions, while 75% believe Obama can do better. Republicans scored 53%, while Democrats in Congress scored 66%. Can lawyers and career bureaucrats really run businesses better than those who actually run businesses? This well written, witty article suggests Congress runs its business horribly. In fact, Congress manages its affairs so poorly that if it were held to the same standards to which it forces businesses, most members would be fired, or imprisoned.

Why is a Bank Paying Off a Leftist Group Attacking Banks? Bank of America forks over $2 million to ACORN Housing Corporation to “prevent foreclosures and educate people about finances and purchasing homes.” President Obama has long worked witih ACORN in his community organizing days, which explains why the majority of the Bank of America payoff is going to ACORN’s Chicago chapter.

NY ACORN Leader, Bertha Lewis, Confronted on Fox Business. Fox Business host, Stuart Varney, confronts ACORN leader about the group’s home squatting program. “Do you think that you’ve got a right to these houses? They’ve got a right to the house even though they haven’t been paying their bills?” “What right do you have to get my money to pay for you? I’ve read the Constitution and I don’t see that right.” Lewis tries several times to dodge Varney’s questions, positing parallel arguments, but Varney stops her on every occasion. Ultimately, the ACORN leader states:

“I wish we could force banks to our will, we wouldn’t have this problem.”

Obama Calls on ACORN to Shape Federal Agenda. With the recent resurgence of the radical leftist group, ACORN, which is receiving federal funding, and $2 million from Bank of America directly to the group’s chicago chapter, it raises questions as to the influence this group now holds over government. In a speech to thousands of community organizers, including ACORN, at the Heartland Democratic Presidential Forum on 12/1/07, Obama clearly sends a signal of support for the group saying:

“Before i even get inaugurated, we’re going to be calling you all in to help shape the agenda. We’re going to be having meetings all across the country with community organizations so that you have input in the agenda of the next presidency of the United States of America.”

Obama later refuted direct affiliation with ACORN, saying that his campaign does not need the group’s help. Obama could have been merely posturing to the group in the 2007 rally hoping to gain votes, but recent funding and other support for the group at least raises serious questions.

You just finished reading Freedom Under Fire, Feb. 23rd, 2009 on The Freedom Factory. Please consider leaving a comment!