The Freedom Factory

Sen. Rockefeller proposes bill that would give government sweeping powers to control, monitor, and regulate the Internet, ACLU demands public schools stop blocking gay web sites on public computers, Rep. Jane Harman calls incriminating NSA wiretap “abuse of power,” National Service legislation signed into law that will cost $6 billion over 5 years by hiring “paid volunteers,” government will need to issue $2.4 trillion in new Treasury securities in 2009 to meet budget shortfalls and bailout program requirements, and U.S. to give another $5.5 billion to automakers… Continue Reading

U.S. Treasury Dept. considers converting loans to equity ownership in major U.S. banks…is this a backdoor to nationalization? Congressional push-back to Obama’s revenue raising plans is leaving $1 trillion gap in budget, Obama set to take on credit card companies for charging interest rates that he considers too high, the U.S. Energy Secretary warns that some Caribbean islands will disappear because of Global Warming, and China issues another condemnation of U.S. economic policies…threatens to diversify currency reserves out of USD… 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

The Mustache Revolution is brewing. It is not a fashion statement; it does not even involve hair. It is the revolution that is happening in America, Right Under Our Noses. It fits right in between Marx’s model of government overthrow and Bernstein’s democratic socialism. This is elected officials distracting the electorate that begs them to act unconstitutionally. Here is how it was done.

A Little History
Karl Marx advocated a violent revolution to nationalize industry, redistribute wealth, and create a proletarian dictatorship. This would be very difficult for the American left, since they are anti-gun, anti-violence, and tend to dislike noncompliance. Edward Bernstein came around after Marx’s death and advocated democratic socialism. His goal was still to nationalize industry, but to accomplish it democratically. What is happening today is the Mustache Revolution; it meets the standards of both socialist ideologies. The US has elected our President and Congress democratically; most of the legislation has come about democratically; the problem is that the boundaries set by the constitution, make the process too slow. Therefore, in the name of Crises, Necessity, or Protection the limits on government are quickly removed.

Bailout Big Banks
Step one, use tax dollars to keep private businesses afloat. This gives government, not total control, but the ability to regulate finance in order to protect the interest of the people. Step two, make an enormous legislative blunder, and blame it on the banking industry. Let us not forget that the clause about the executive bonuses was removed, not forgotten, not left out, but removed. After there is a huge public outcry over executive bonuses, the next step is to levy a 90% tax. This tax of course is not limited to the bank that gave the bonuses, nor is it limited to the banking industry; the plan is to levy a tax on all executives who have a high salary and receive bonuses.

Stress Test
Of course, the wealth redistribution is not enough. The remaining step is to take major services, such as banking, health care, or auto manufacturers, and make them national industries. The first and most important of these is to take over the financial industry. The Financial industry is essential, because all businesses run off of the availability of credit (hence capitalism). Once all industries are getting their loans from the government, their nationalization will happen quickly and with little protest. So, after bailing out the banking industry, the next step is to create a stress test; this serves two purposes; 1) it asserts government power over the industry (no other industry needs to be deemed “strong enough to survive” in order to exist in the US economy), and 2) it makes people think that the government should step in when the test is not passed. Third, after the failure of the stress tests, the government will claim that the banks need to come under temporary government control. Since government has never improved a business after taking it over, temporary can be a very long time.

Not Under My Nose!
Things that stink are not meant to pass under your nose without notice! This revolution cannot continue to be ignored simply because we are in an economic downturn. Recession is not an excuse to jump from crises to crises without thinking out the political consequences of our actions. The hardest thing to regain, once it is lost, is freedom. And freedom is blindfolded on its knees in front of a gun named socialism.

The verdict is not yet out as to whether we will experience inflation or deflation in the near term. The argument has been raging with pundits on both sides clinging to data they claim supports their guesses. Today marks a big day in the debate, however, with two critical pieces of news:

1) Consumer price index (CPI) rises more than expected, up 0.4% in Feb. following a 0.3% gain in Jan. This represents at 4.8% annualized inflation rate.

2) Federal Reserve committed to buying $300 billion in long-term Treasuries as part of its plan to drive consumer borrowing costs lower.

The immediate fallout can be seen in Gold, the U.S. dollar, and Treasuries today. Both pieces of news are inflationary. Rather than the feared ‘deflationary spiral’ we’re starting to see consumer prices heat up, albeit not appreciately just yet. The Fed buying Treasuries amounts to them printing $300 billion in new currency. This money is created out of thin air.

Most telling on inflationary fears is the Market Vectors Gold Miners ETF (GDX), up over 10% today, while the SPDR Gold Shares ETF (GLD) approached a 4% gain. PowerShares US Dollar Index (UUP) dropped over 3%, and the 30-Year Treasury yield fell to a low of 3.37% after the Fed announcement, settling higher at 3.57% later in the day.

In Checkmate: How the Federal Government Will Lose in 2009 I argued that our leaders were backing public finances into a predictable corner. With $2-3 trillion in budget deficit for 2009, alone, with more planned in coming years, government will be forced to increase borrowing or printing. Today’s news supports the ‘printing’ hypothesis, but I suspect this is just the beginning. The big game unfolding will be the Treasury issuing bonds to raise funds and the Fed turning around and buying them. This is a scam that will either lead to increasing bond yields or increasing inflation. There are no other options.

Government says government owns AIG, U.S. weighs invasion of Pakistan to fight Taliban, cocaine trade funds Peruvian rebellion, consumer prices jump more than expected-what happened to deflation? Obama wants more control of financial institutions to ‘protect taxpayers,’ White House readying to join war against Mexican drug cartels, Czechs end U.S. missile treaties amidst ‘large-scale’ Russian rearming…just the latest in your Freedom Under Fire Report! Continue Reading

The age of banking secrecy coming to an end, climate scientist warns that billions will die, U.S. trade deficit contracts along with trade, Russians steal yet another foreign company’s assets, Mexican drug lord makes Forbes’ billionaires list, road to nowhere to take 26 years and $1.5 billion, California considers legalizing marijuana…just the latest in your Freedom Under Fire report! Continue Reading

Will stocks skyrocket after this week’s mark-to-market House meeting? Federal stimulus raises concerns over state sovereignty, Obama targets defense contractors, IMF marching towards Global New Deal, feds hold auto meeting to determine government involvement, and the U.S. dollar reaches highest level since 2006…just the latest in your Freedom Under Fire Report! Continue Reading

White House budget found to have “fuzzy math” on war estimates, new role for federal government to provide broadband Internet, U.S. gives Palestinians $900 million, Harvard economist says bailing out homeowners is a mistake, 4th Obama appointee found evading taxes, bank Nationalists look to Sweden, temporary nationalization of mortgage industry now permanent, 1 in 31 adults behind bars in U.S., Australia leaves benchmark rate unchanged, and Bush memos claim unfettered rendition powers…just the latest in your Freedom Under Fire Report! Continue Reading

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.