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Milton J. Madison - An American Refugee Now Living in China, Where Liberty is Ascending

Federalism, Free Markets and the Liberty To Let One's Mind Wander. I Am Very Worried About the Fate of Liberty in the USA, Where Government is Taking people's Lives ____________________________________________________________________________________________ "Extremism in defense of liberty is no vice. Tolerance in the face of tyranny is no virtue." -Barry Goldwater-

Friday, October 31, 2008

This Guy Is Great!!!!!

Iraq War Vet Message to Obama....

Omama Doing Internship in Spain to Gain Experience to be President....

Obama Undertakes Presidential Internship To Ease Concerns About His Lack Of Experience

First Joe the Plumber, Now Tito the Builder. Republicans Are Definately More Fun....

Obama Test and Pennsylvania Racism by Murtha....

Destructive Liberalism.....

This writer feels that the current financial crisis is really a moral crisis. Personally, I think that we need to accept that we are human beings and that we will act like human beings in our environment. Its no one's fault and silly to point fingers at people that act in their own self interest like one would expect people to behave. Unfortunately, the environment is polluted with a bizarre new moral code.....
If we seriously wish to repair the damage, we need to accept that this is fundamentally a moral crisis, not a financial one. It is the product of the self-indulgence and complacency born of our ultraliberal societies, which have substituted such pseudo-religions as political correctness and saving the planet for genuine distinctions between right and wrong and the cultivation of real virtues.
We have allowed the true root of American life marked by ingenuity, individual responsibility and hardwork wither by watering it with the acid water of Liberalism.

The writer thinks that the Chinese and Indian societies that still focus on traditional family issues; focus on education for their children, saving for the future and a reliance on family, friends, neighbors and communities for survival and success as relative beneficiaries....
We are traveling along the high road to incompetence and poverty, led by a farcical coalition of fashionably liberal academics on the make, assorted eco-crackpots and media wiseacres. This strain of liberalism is highly infectious. The Indians and Chinese have yet to be infected. They're still healthy, hard at work and going places, full speed ahead.
I do not agree with the writer on his assessment of the Chinese, but I do agree that Liberalism is Western disease that will only result in tragedy.

You can read his whole piece here.

Progressive Taxes....

According to OECD statistics, the US already has the highest progressive tax system among these 24 wealthy nations where the richest decile of taxpayers in the US paid 45.1% of all income taxes. The average decile of wealthy taxpayers in the OECD nations averaged a 31.6% share.

So what are the Democrats trying to achieve by further punishing those that earn money in this nation? Hostile tax policy to work, savings and investment DOES NOT achieve greater wealth and will never never never achieve greater 'fairness' that is a completely subjective objective.

Have a look at the stats here if you like.

Thursday, October 30, 2008

Use Your Brain......

Use your brain, vote for McCain.

Bush Give Ach-Achdim-Achdimi-Achdimijad Crap at the UN......

The Culture of Gov't. Dependence, Entitlement Mentality and Penalization of the Succesful.....

Excerpts from An American Businessman's Letter to Obama, from Corey Miller, aka "Corey The Well Driller":
You see, Mr. Obama, I'm the guy you intend to raise taxes on. I'm the guy who has spent 25 years toiling and sweating, fretting and fighting, stressing and risking, to build a business and get ahead. I'm the guy who has been on the very edge of bankruptcy more than a dozen times over the last 25 years, and all the while creating more and more jobs for East Texans who didn't want to take a risk, and would not demand from themselves what I have demanded from myself. I'm the guy you characterize as "the Americans who can afford it the most" that you believe should be taxed more to provide income redistribution "to spread the wealth" to those who have never toiled, sweated, fretted, fought, stressed, or risked anything.

You want to characterize me as someone who has enjoyed a life of privilege and who needs to pay a higher percentage of my income than those who have bought into your entitlement culture. I resent you, Mr. Obama, as I resent all who want to use class warfare as a tool to advance their political career. What's worse, each year more Americans buy into your liberal entitlement culture, and turn to the government for their hope of a better life instead of themselves. Liberals are succeeding through more than 40 years of collaborative effort between the predominant liberal media, and liberal indoctrination programs in the public school systems across our land.

What is so terribly sad about this is this. America was made great by people who embraced the one-time American culture of self reliance, self motivation, self determination, self discipline, personal betterment, hard work, risk taking. A culture built around the concept that success was in reach of every able bodied American who would strive for it. Each year that fewer Americans embrace that culture, we all descend together. We descend down the socialist path that has brought country after country ultimately to bitter and unremarkable states.

Oh, I know you will say I am uncompassionate. Sorry, Mr. Obama, wrong again. You see, I've seen what the average percentage of your income has been given to charities over the years of 2000 to 2004 (ignoring the years you started running for office - can you pronounce "politically motivated"), you averaged less than 1% annually. And your running mate, Joe Biden, averaged less than ¼% of his annual income in charitable contributions over the last 10 years. Like so many liberals, the two of you want to give to the needy, just as long as it is someone else's money you are giving to them. I won't say what I have given to charities over the last 25 years, but the percentage is several times more than you and Joe Biden. combined (don't you just hate google?). Tell me again how you feel my pain.

In short, Mr. Obama, your political philosophies represent everything that is wrong with our country. You represent the culture of government dependence instead of self reliance; Entitlement mentality instead of personal achievement; Penalization of the successful to reward the unmotivated; Political correctness instead of open mindedness and open debate. If you are successful, you may preside over the final transformation of America from being the greatest and most self-reliant culture on earth, to just another country of whiners and wimps, who sit around looking to the government to solve their problems. Like all of western Europe. All countries on the decline. All countries that, because of liberal socialistic mentalities, have a little less to offer mankind every year.
Democrats just suck. We are traveling down the path of socialism and its a recipe for overwhelming mediocrity. Our forefathers built a nation and sent us on a path of greatness only to be derailed by socialism foisted upon us 70 years ago by the New Deal. I cry for the death of this great nation.

Is Obama Secretly Sensible.....

A Obamessiah supporter, one that is a blue blue Democrat, told me that he too had concerns that The One is the anti-Christ. However, he also thinks that the Obamessiah will "surprise me." I suppose, in other words, that whatever socialist tendencies and his associations with Marxists and radicals central to the hard left orthodoxy will be eschewed and make way for a more traditional American sensible policy.

Why should anyone think this other than a matter of faith? The anti-Christ will fool people into thinking that he is not what he is. This is a being that spent 20 years sitting in the pew of a racial/politcal church and supposedly did not notice the radical preaching spewed by the preacher there. Huh?
conservative Christians are offended by how the secular left has greeted Obama as a messianic figure. The hosannas during Obama's Europe trip were so over-the-top that London Times columnist Gerard Baker ridiculed the senator's visit as akin to Christ's entrance into Jerusalem. The BBC interviewed a worshipful German who described Obama as his "redeemer." Fox found another who exalted his "new messiah." To the question, "Who do you say that I am?" some Europeans made their choice as Obama swept into their presence.
So, now were are to believe that he really won't be as radical as we fear? Then why didn't he run that way?
As Obama's election has seemed to become more likely in the past six weeks, a quiet but public debate has arisen among both Republicans and Democrats that wonders which Obama we might get. Will it be the prudent, moderate, pragmatic, sensible president who will apply non-ideological, centrist policies? Or will it be the Obama who sought out the company of radicals, black racists, faculty-lounge Marxists and studied the methods of Saul Alinsky?

Many hope that it is the sensible centrist who will emerge -- even though it has been his style and cautiously evasive comments, rather than his substance, that have sounded so reasonable and calm. It is that moderate tone that has led some recent Republican Obama supporters to hope that he is just lying about his views and is secretly "sensible."
Sensible? Not!!!!!!!

Sensible Australians.....

I have always been curious about these economic stimulus packages. Int he US, they send a check to households with the expectation that that household spends it on consumer goods. Economically, these things are very suspect. I feel that it is government trying to show that they are doing something even if this 'something' is more form over substance.

So, these Australians realize what is going on....

The federal government is giving Pensioners etc. a bonus for Christmas.
If we spend that money at K-Mart, the money will go to China.
If we spend it on petrol it will go to the Arabs, if we purchase a computer it will go to Taiwan,
If we purchase fruit and vegetables it will go to China, Mexico, Honduras, and Guatemala,
If we purchase a good car it will go to Japan,
If we purchase useless crap it will go to Korea and none of it will help the Australian economy.

The only way to keep that money here at home is to spend it on prostitutes and beer, since these are the only products still produced in Australia.

Thank you for your help.

Kevin Rudd & Wayne Swan .
(Australian Prime Minister & Australian Treasurer)

Wednesday, October 29, 2008

Empty Suit.....

The Obamessiah, the greatest empty suit to stand up in front of the American people to seek to be their President, is worrying empty suits all over the world these days. As I overheard yesterday, one empty suit hanging in a tailor shop here in Hong Kong awaiting to picked up by a customer said...
He is redefining the completeness of the emptiness of empty suits. Its embarrassing. Any more empty, it would like being in outerspace where there is no gravity what-so-ever.
Other empty suits are worried in Europe...
French President Nicolas Sarkozy is very critical of U.S. presidential candidate Barack Obama's positions on Iran, according to reports that have reached Israel's government.

Sarkozy has made his criticisms only in closed forums in France. But according to a senior Israeli government source, the reports reaching Israel indicate that Sarkozy views the Democratic candidate's stance on Iran as "utterly immature" and comprised of "formulations empty of all content."

Your Taxes......

According to the anti-Christ, oh, sorry, the Obamessiah, 95% of Americans will get a tax cut. This is just not true. Lets look at some of the facts. When the Bush cuts expire, we will see these tax increases for middle class taxpayers.....
For a married family, filing jointly and earning $75,000 a year, this increase will be $3,074. For those making just $50,000, this increase will be $1,512. Despite Senator Obama's claim, even struggling American families making just $25,000 a year will see a tax increase -- they'll pay $715 more in 2010 than they did in 2007. Across the board, when the tax cuts lapse, working Americans will see significant increases in their taxes, even if their household income is as low as $25,000. See the tables at the end of this article.
(From here) So families making $75,000 will see their taxes increase by over $3,000 upon expiration of the Bush tax cuts. So, he says that he will not raise your taxes but will let the Bush cuts expire. Its a semantic argument.

So, when the anti-Christ argues that he will raise taxes only on people making more than $250,0000, he does not count his plan on raising taxes for Social Security on those making between $94,700 and $249,999.99. So this is not a tax increase?

Tax increases are planned for capital gains taxes and for anyone that owns stocks and still have gains, these taxes go up? And I am not even sure what the plans are for dividends. Taxes will probably go up for those too as the Bush cuts expire.

Taxes will rise for corporations. Corporations in the US pay among the highest taxes in the world. Even communist China has lower taxes for companies than the US! So, The One's hostility towards corporations will continue the shift of corporate investment away from the Us to lower tax jurisdictions. This hostility to the companies that employ our workers is mystifying. Also, higher corporate taxes will raise prices ultimately for consumers. A hidden tax increase for the middle-class.

So, do you rally think that he will cut taxes for the middle class? You are all suckers. He will not!!!!

Good luck.

Tuesday, October 28, 2008

Quote of the Day....

They are always under the dominion of the superstition of government, and forgetting that a government produces nothing at all, they leave out of sight the first fact to be remembered in all social discussion -- that the state cannot get a cent for any man without taking it from some other man, and this latter must be a man who has produced and saved it. This latter is the Forgotten Man.

-William Graham Sumner (1840-1910)-

Passage of the Day by Jack Wheeler........

The O-man, Barack Hussein Obama, is an eloquently tailored empty suit. No resume, no accomplishments, no experience, no original ideas, no understanding of how the economy works, no understanding of how the world works, nothing but abstract, empty rhetoric devoid of real substance.

He has no real identity. He is half-white, which he rejects. The rest of him is mostly Arab, which he hides but is disclosed by his non-African Arabic surname and his Arabic first and middle names as a way to triply proclaim his Arabic parentage to people in Kenya . Only a small part of him is African Black from his Luo grandmother, which he pretends he is exclusively.

What he isn't, not one genetic drop of, is 'African-American,' the descendant of enslaved Africans brought to America chained in slave ships. He hasn't a single ancestor who was a slave. Instead, his Arab ancestors were slave owners. Slave-trading was the main Arab business in East Africa for centuries until the British ended it.

Let that sink in: Obama is not the descendant of slaves, he is the descendant of slave owners. Thus he makes the perfect Liberal Messiah.

It's something very hard to understand - how some complete neophyte came out of the blue and is about to steal the election. Obamamania is beyond politics and reason. It is a true religious cult, whose adherents reject Christianity yet still believe in sin, transferring it from the evil of being human to the evil of being white.

Thus Obama has become the white liberals' Christ, offering absolution from the Sin of Being White. There is no reason or logic behind it, no faults or flaws of his can diminish it, no arguments John McCain can make will be effective against it. The absurdity of Hypocrisy Clothed In Human Flesh being their Savior is all the more cause for liberals to worship him: Credo quia absurdum; I believe it because it is absurd.

Thank heavens that the voting majority of Americans remain Christian and are in no desperate need of a phony savior. His candidacy is ridiculous and should not be taken seriously by any thinking American.

I hope to God enough people wake up before election day.

-Jack Wheeler is a brilliant man who was the author of Reagan's strategy to break the back of the Soviet Union with the star wars race and expose their inner weakness. For years he wrote a weekly intelligence update that was interesting and well structured and informative. He consults(ed) with several mega corporations on global trends and the future, etc. He is in semi-retirement now. He is a true patriot with a no-nonsense approach to everything. He is also a somewhat well-known mountain climber and adventurer-

White Folks in the Burbs Don't Want To Pay For Black Kids Schooling.....

According to the Obamessiah....

I guess that means that all white folks are racists.

Middle Class Tax Cut.....

We can see from the above, the middle class has never been paying less in federal income taxes than as of late. So, what the heck are the Democrats taking about that the middle class needs a tax cut. Besides, its very difficult to cut taxes for these people when they pay so little to start with. Tax cuts for 95% of the people is absolute bullshit. But the followers of the anti-Christ will parrot this and believe. Also, if people do not pay taxes, then are they really invested in our government? I think not. Maybe we need to bring back poll taxes.

And the myth of middle class income stagnation is busted, here.

Redistributive Justice....

The Obamessiah from a 2001 interview. He talks about redistributive justice being difficult to achieve through the courts. But I suppose that he thinks that he can do it through legislation.

Really, in plain English instead of Obamessiah doublespeak, its redistribution of wealth to American blacks.

The only solace for guys like me is that despite this guy being a successful campaigner, he has been a complete failure at achieving anything of note in almost every position that he held.

The Communist....

From each according to his abilities, to each according to his needs.

-Karl Marx, Philosopher and Economist-

I want to spread the wealth around.

-Barack Obama, Presidential candidate and anti-Christ, 2008-
Barack Obama's quote is definitely much less eloquent than his earlier communist counterpart.

However, some of us figure, like myself, that the Obamessiah wants to redistribute wealth according the way that HE feels is appropriate. It is socialism and communism at its worst- one that depends upon a messiah like figure. And one that requires people to believe that what he is doing is a better way for others and for themselves. However, as I have written before, government intervention on a such a level is destructive to communities where people do not depend upon their neighbors, churches or relatives but on the faceless, amorphous and heartless central government. This model kicks out the old model of hard work and self reliance that defines the American experience and replaces it with weakness and servitude to the whining and victimization classes.

This makes the government in Washington even more powerful and central to the everyday lives of regular Americans. One will now have to assume that hard work and success will be seized and redistributed to those that the faceless bureaucrat identifies are more worthy but who I think may not be more deserving. So why even bother?

When I lived in Africa, I observed that people had little incentive to be successful outside of the government. Success was seized arbitrarily, sometimes things being seized at roadblocks, and those that were able to retain some wealth ended up with up to a dozen cousins, aunts, uncles and others that lived off of the earner. Generally, successful people in the place that I lived in Africa had some kind of connection to the government. It was a place where who you know in the government was more valuable than what you know or how hard you work.

Socialism also requires that people are kept in line and this is typically achieved through violence or the threat of violence. The Obamessiah now has legions of followers that will do his bidding in keeping others in line. I know that some people will blindly follow his preachings and I know some of these ill people.

Socialism and communism requires violence or the threat of violence to achieve 'change.' Just have a look at the early Soviet Union, China and even little ol' Cambodia where millions of people were killed, starved or murdered to achieve the goals of the government. These people were sacrificed to the greater good.

I too will probably be sacrificed to the opiate of the coming greater good shepherded in by the coming of The One. First it will be people's hard work and rewards that will be sacrificed. Then they will attempt to change your thinking through such evil as the "Fairness Doctrine.' Then they will feel it necessary to provoke violence and death on you. I will be one of those victims as will all of the rest of this except those that benefit from their connections in the government. If I am to die, I do not regret standing up for my principles and beliefs for an instant.

Be Careful In Hong Kong.....

A couple of Sunday's ago, I went to Tsim Sha Tsui station at around 3 pm to run an errand. I observed a brown skinned young man filming people walking around the station. He was filming people walking down the steps and going through the turnstiles. I didn't think anything of it.

When I finished my errand a hour later, I reentered the TST station and again observed a another young fellow filming in the station, this time down on the train platform. He got into the train and he continued to film. so, I took his picture.....

I took another another and he noticed me. He immediately put his camera away. I also noticed this other fellow that I did not notice before. I have no idea if he was with this other fellow, but when I stared at him he only looked at the floor. Here is the second picture.....

I reported this to the police and they referred it to the 'Very Serious Crime Unit.' They subsequently informed me that the they were not going to follow up on it. I told them that the only reason that I reported it was that I wanted them to be aware that this was going on. Who knows, it could be a bunch of Muslim terrorists filming the movements of people in the MTR with the idea that they will do something to create havoc. Who knows, but Muslim fanatics have done many awful things to many people. Some may think that I am a racist since I noticed these brown fellows filming. So be it. Maybe I am a racist.

Friday, October 24, 2008

Spreading That Wealth Around....

Monday, October 20, 2008

Maybe I Was Wrong About Democrats....

I have always been very cynical about the Godless Democrats. But now that they are fervently serving the Obamessiah, they now have a Christ figure to head their God in Washington. Also, we now see that they have a prayer....
Our Father, Barack Obama, who art in Washington,
hallowed be thy name.
Thy United States come,
thy tax increases be done,
on earth as we also plan to do in heaven
Give us this day our daily handout.
And forgive us our blasting innocents like Joe the Plumber in the campaign,
as we forgive those who campaign against us (Maybe not).
And lead us not into good governance,
but deliver us from Fox News.
For Obama is the kingdom, the power and the glory. For ever and ever. Amen
Barack Obama is the anti-Christ.

Saturday, October 18, 2008

The Messiah Promises To Change the World....

Barack Obama has vowed that he will "change the world" even as he urged his supporters to guard against complacency.
This guy isn't going to change the worldand I, for one, do not want someone to change the world but to act on my behalf as the President of the United States.

I just have to say this about changing the world...
"Thanks. but no thanks, I already have a Messiah and his name is Jesus Christ.

-Glenzo, October 20, 2008"
Barack H. Obama is not a messiah but he sounds more like the anti-Christ. He has legions of followers; worshiping him, blindly following him, beating up others for him, silencing critics for him, the him that we know so very very little about. Be very very afraid.

I am one of the people that will suffer and probably die during one of his purges of the 'undesirables' when the US will be cleaning the thinking and the airwaves through the coming reinstatement of 'Fairness Doctrine' so that no opposing speech will be allowed.

The Bradley Effect....

From Wikipedia....
The Bradley effect, less commonly called the Wilder effect, is a proposed explanation for an alleged discrepancy between voter opinion polls and election outcomes in American political campaigns when a white candidate and a non-white candidate run against each other. Named for Tom Bradley, an African-American who lost the 1982 California governor's race despite being ahead in some voter polls, the Bradley effect refers to an alleged tendency on the part of some voters to tell pollsters that they are undecided or likely to vote for a black candidate, and yet, on election day, vote for his/her white opponent.

The theory of the Bradley effect is that the inaccurate polls have been skewed by the phenomenon of social desirability bias. Specifically, some white voters give inaccurate polling responses for fear that, by stating their true preference, they will open themselves to criticism of racial motivation. The reluctance to give accurate polling answers has sometimes extended to post-election exit polls as well. The race of the pollster conducting the interview may factor in to voters' answers.
So, lets be clear, there is no real voting effect. People will vote for who they will vote for for a variety of reasons. Some may not vote for a Black, some may not vote for an old person. Some may prefer a Black or an old person. Some will look at each candidates economic plans and some will look at their social plans. Some will be impressed with the way that a candidate dresses, speaks, walks, eats or even facial features, quirks and a host of other things that may not seem relevant to the job at hand. That is how an electorate makes a decision.

But this canard of the Bradley Effect has already been foisted as a warning to white people. Really, the Bradley effect is a polling problem, just like in 2004 when exit polls had John Kerry beating George W. Bush handily. Its a polling problem when people do not feel compelled to tell pollsters the truth and maybe its just that some of them want to be on their way without conflict. Again, as I wrote below, the threat of violence from the left also may be a contributing factor to people lying in these polls.

Irrespective of who gets elected, white people will be wearing this 'racism' red letter for the rest of our lives. Being born white makes us racists, supposedly. And blacks, who are expected to vote 90% for the Obamamessiah are not? When I was a kid, I grew up in a racially mixed neighborhood. Some of them told me that they hate white people. Someone taught them that and they felt that they were entitled to say these things. I wouldn't waste my time hating black people. I guess that they get a pass and the rest of us do not.

No Surprise That New Yorkers Resort To Violence Against Those That They Do Not Agree With......

As I have said before, New Yorkers feel that they are somehow justified in inflicting physical harm on those that they do not agree with....

4 years ago, when I was discussing widespread violence against Republicans by Democrats, a pacifist family member brushed this off implying that it is acceptable since people are "scared." I found this comment to be more than unacceptable, but one that is lacking in moral compass. People that do not believe in violence cannot explain it away with such aplomb and inexplicably feel that violence against their fellow citizens is acceptable to reach an end.

They may say, 'no we do not agree with that' but their silence is an implicit acceptance of this kind of behavior. So, to what end? I just do not know. But I think that lots of the people on the left are heading into a dangerous area where people not only have to outwardly agree with their world view, but also have to think like them. Here in Asia, places where people are sent are called reeducation camps. This is where people were indoctrinated into Communist thinking, beaten, tortured and if unchanged then killed. So I guess that I will be a candidate for the new American reeducation camps when I go back. New York City, as far as I am concerned is just one big reeducation camp. Its a cesspool of hostility, hate and neo-liberalism.

Honestly, I would rather be beaten on the streets or die then to become one of them.

How Dare He Question The One....

Poor Joe the Plumber. A man that is considering purchasing a plumbing business that presumably would require him to borrow money and incur some risk, asked a question of the Obamessiah. It amazing that it has taken this long for anyone to ask a single tough question. Liberals and the Press are stunned that someone is actually concerned about the Messiah's tax policies. The fawning press has essentially been allowing the Obamessiah to avoid any tough questions and this guy is probably the most under-vetted presidential candidate in modern history. What about him being the product of a corrupt Chicago political establishment? How about the cheap land deal with the local criminal Tony Rezko? Does anyone really think that a tax cut for 95% of American is reasonable when the bottom 50% of American taxpayers only pay 3% of total Federal personal income taxes? Populist Utopian income redistribution is just a ploy to buy votes. I am sure that typical American's do not believe this BS for a nano-second. But it goes almost undiscussed in the main-stream Liberal press and hardly anyone looks at the what the haeck this means. Really, what the Obamessiah is actually offering as tax cuts are rebate checks, increase distribution of things like food stamps and other government giveaways and calling them as tax cuts. Its a crap plan and the press is just fawning over the messiah instead of looking at what these things actually mean.

I will make a prediction right here. If The One is elected, very few people will be happy about the taxes that they pay. And the hallowed middle class will be burdened not by the promised tax cuts but by much higher taxes 'for their own good.'

But anyone that asks a tough question of the The One before his ascension to the throne of President, must be eliminated, slimed and ruined...
As Ed Morrissey describes what we've learned from this revealing episode,

1. Thou shalt not offend The One by asking him a question. Of any kind.
2. Anyone who questions The One will have to undergo a public pillorying of a kind unseen since the Red Scare, or perhaps the Inquisition.
3. The Tanning-Bed Media will happily participate in any inquisition, as long as it keeps them from investigating irrelevant issues like Obama’s ties to the Chicago Machine, William Ayers, ACORN, or his record on protecting infanticide.
This has been the most amazing Presidential race that I have ever experienced.

But Joe the Plummmer's question is not irrelevant and his imperfections do not take the question off the table. The Press is also embarrassed that a simple man asked a question that they should have asked a long time ago. The Press is worse than worthless these days. They are blocking and tackling for one Presidential candidate over another. It is shameless and hurts us all.

Friday, October 17, 2008

Quote of the Day....

some politicians want to take credit for the new economy, but I don't see government starting new companies, writing new software, inventing new technology, opening new factories. I've always thought those things were done by, well, the people who did them. Our new economy was not created in a Senate subcommittee or a vice presidential commission.

-George W. Bush, Campaign speech 1990-

The Eve of Destruction....

Actually, this was 1965. When people thought that the world was collapsing. Now we look back on that time as Camelot.

That Crazy Little Voice In My Head........

I have always had this little voice in my head and I have explained it to myself as instinct. It seems to know when I am making incorrect decisions, particularly investment decisions and this little voice seems to be somewhat prescient.

However, this little voice has been somewhat more active as of late. July of 2007, it told me, when I was looking at my investments, to sell them all. It was quite emphatic to sell them all. I sold some but could not do much since I am an optimist. It told me to sell again last Fall. I did sell some reluctantly but could not do much since I am an optimist. After the market opened weak in January of this year, I reloaded my investments since I am optimist. This was my optimism not my little voice and it has not proven to be such a good decision.

When I was walking through my house a couple of months ago, the little voice kept repeating over and over that the market may crash. I couldn't get this thought out of my head and I ignored it. Since the beginning of October, the market has crashed.

As of late, however, my little voice wakes me up late at night. I wake up every night at 3 AM. When I awoke two nights ago to tell me that the Dow Jones will fall more than 700 points, it told me specifically 777. It was wrong. It had fallen only 733 points. Last night when I got back from a show. It told me that when I get home the market will be down 128 points. It was relieved when it was only down 98 but it fell quickly and I immediately turned off the TV when -128 was flashing on the lower right hand corner. It told me 338. I said, 'oh no, DJIA -338 today??' It said no, maybe up and laughed. I do not know what 338 means the DJIA was up 401.

The little voice has told me recently not to worry any more. The little voice also told me to buy canned food just in case. Seems a little bit of a conflict in those 'little voice' pronouncements.

The little voice also told me some crazy things last night; that Barack Hussein Obama is the anti-Christ. It also told me that the devil's horn is floating over the North-East United States and that things just will not go very well there. What the heck does that mean? The Devil's horn? It added that the reason that my parents treated me with contempt and hostility during my last trip back there in July is that they are now part of the army of the anti-Christ and are doing the bidding of the evil one. They just do not know what they are doing.

They are also trying to ruin the life of my brother-in-law since he is not one of them. I observed, in July, that he used to sit alone in the living room of my parent's house, while everyone was outside since, I think, he just could not listen to their bloviating anymore. How well did the purchase of heating oil do for him when they were trying to panic him about it?

Too many strange things.

Thursday, October 16, 2008

Big Belly Reggae...

Wednesday, October 15, 2008

Spread the Wealth Around.....

The One is asked about his tax plan and the Obamessiah responds that he wants to "spread the wealth around."

And the fellow responds that the Obamessiah's answer scared him even more.

The Obamessiah's Success in Chicago....

The Long List of Obamessiah's Accomplishments....

We Don't Know Enough......

We have heard all about Barak Obama's associations with all kinds of hard left people and groups like former terrorist Bill Ayers, hate monger from the pulpit Rev. Jeremiah Wright, ACORN, the sleazy community organizer group that uses typical Democratic tactics of cheating in elections and a host of other shady associations that are probably a fairly accurate look into what the Obamessiah is really like. Some, who actually think about this, may think that it is scary.

But how much do we know about John McCain and his associations over the years and how truly scary these are....

Tuesday, October 14, 2008

Leftist American Unity....

The leftist idea of unity is and has always been the elimination of dissent.....

I have, since I lived in New York been amazed at the intolerance to other's ideas except their own from the typical leftist New Yorker. I also think that New Yorkers are more prone to violence against those that they do not agree with than almost anyone else int eh nation. I would never dream of doing what these people were doing. It would be fine if it was a anti-Bush parade or some anti-Republican thing. There would be no risk of violence at all. But in this case, I would not be surprised if someone started taking swings at non-Liberal people.

Passage of the Day....

Sure, they can say it is racist to blame ACORN, Fannie or Freddie, just because they say it doesn't mean it is true. The fact is, Government intervention in free markets caused this issue, plain and simple. The idea that every American can own a home caused this issue. With Obama spouting that we need to spread the wealth around, it seems to me we'll get more of this meddling in the future - Karl Marx style.
One may think that this is from some right-wing website, but actually it is from the Daily Anti-Kos, Who is the Daily anti-Kos anyway? We know that the Daily Kos is the leftist move-on style Democrat supporter blog. It appears to me that even these committed leftwingers may be a little concerned about the Obamessiah's plans to take away their money too. Income redistribution will mean the redistribution of the committed left too. I guess its OK to redistribute wealth as long as it is someone else's wealth that is redistributed and not one's own.

Sunday, October 12, 2008

Market Bottom?

From my money manager....
Here are some numbers that tell us what we can now find in the stock market. I read these from the Wall Street Journal. Out of 9,194 stocks tracked by Compustat Research, 3,518 are trading at less than half the long-term average valuation of the stock market as a whole. Nearly one in ten or 876 of these companies are trading below their per-share value of cash on their balance sheet. This is a higher number than Ben Graham (Warren Buffet's mentor) found at the 1932 bottom, which was the low of the worst bear market in U.S. history. These numbers tell me now is a good time to buy assets should we have the capital. This is another way of saying now is not a good time to be selling assets.
But the risk is that we are about to enter a government interventionist era where risk taking and value creation will be punished by high tax regime at the central government. So maybe it could be even worse.

As the Poll Numbers of the Obamessiah Rise, Stocks Collapse.....

This is a rational response to the potential for a hard left socialist agenda potentially being foisted on one of the most vibrant and productive economies that the world has ever seen....
And right now it looks like the U.S., which built the mightiest, most prosperous economy the world has ever known, is about to turn its back on the free-enterprise system that made it all possible.

It isn't only that the most anti-capitalist politician ever nominated by a major party is favored to take the White House. It's that he'll also have a filibuster-proof Congress led by politicians who are almost as liberal.

Throw in a media establishment dedicated to the implementation of a liberal agenda, and the smothering of dissent wherever it arises, and it's no wonder panic has set in.
Goo luck world, we maybe in for a real doozzie. I predict a chance that global trade will freeze up and that could be starvation in certain places in the world as a result.

Friday, October 10, 2008

Even Problems Cropping Up at Japanese Banks.....

In the last 7 days Origami Bank has folded, Sumo Bank has gone belly up and Bonsai Bank announced plans to cut some of its branches.

Yesterday, it was announced that Karaoke Bank is up for sale and will likely go for a song while today shares in Kamikaze Bank were suspended after they nose-dived.

While Samurai Bank is soldiering on following sharp cutbacks, Ninja Bank is reported to have taken a hit, but they remain in the black.

Furthermore, 500 staff at Karate Bank got the chop and analysts report that there is something fishy going on at Sushi Bank where it is feared that staff may get a raw deal.

Thursday, October 09, 2008

The Root of Today's Problem....

The socialization of risk and the expectation that the government is going to protect or is even able to protect our way of life is, in my humble opinion, the root of today's financial crisis. Governments cannot save an economy and people should never look to it to know how to handle these things. 70 years of the opiate of the reliance on government to know, regulate and solve economic problems will prove to be trouble.

The way that markets work, is to evaluate risk and government's willingness to step in and solve problems is included in this calculus. So, what eventually happens, is that markets will create risk to that point and continue if it appears profitable to do so. Its human nature. What eventually happens, is that when governments step in continuously, the risks will one-day grow to a point where even governments cannot solve the problem. An example of that is Social Security that will not be a problem that exists in 20 years since their will not be funds available to meet the promises already made.

I have always wondered if the government programs put in place during the New Deal of the 1930's are appropriate for today's world. Fannie Mae, that was a product of the New Deal, was a recent casualty of the crisis. Why is that? One of the reasons is that they never had to conform to the limits of the market but relied upon what we used to call an implicit guarantee. That guarantee is not a explicit in that there were no codified guarantees from the government for support other than an ability to draw $2.25 billion in caqpital, a silly small amount relative to the size of this organization. However, all market participants agreed that due to the size, scope and integration into the economy, that the government would never allow it to fail. The belief was right as the government did step in. This socialism has beget more socialism.

Furthermore, policies during the Great Depression debatably extended the Depression.
Two UCLA economists say they have figured out why the Great Depression dragged on for almost 15 years, and they blame a suspect previously thought to be beyond reproach: President Franklin D. Roosevelt.

After scrutinizing Roosevelt's record for four years, Harold L. Cole and Lee E. Ohanian conclude in a new study that New Deal policies signed into law 71 years ago thwarted economic recovery for seven long years.
Also, large government interventions and fiddling raises risk for risk takers since they may not be able to allocate capital or think that there is a risk that government will seize gains made. Human nature is that people want to benefit for the deployment of their monetary and human capital. If they think that these gains will be arbitrarily seized then it is natural to not try.

Bad policy 75 years ago does not mean that we need to continue the mistakes. My fear, is that government and the people that stand to gain from governemnt intervention GOING FORWARD will influence a more interventionist policy. This is just bad news since we will be again facing this problem whose seeds come from bad central government policy.

Wednesday, October 08, 2008

Passage of the Day....

The financial collapse of Fannie Mae and Freddie Mac is not a failure of the free market because lending institutions in a free market would not have taken on the high-risk loans. They were forced to by the heavy hand of government. The solution is not a taxpayer-financed bailout. The solution is to let them fail and allow the people who invested in them, as well as the people who purchased homes they couldn't afford, suffer the losses. Of course that takes a level of political courage that is in short supply.

-George Mason economist Walter Williams-

Passage of the Day....

From the National Review....
When Obama says Pock-i-stahn I have an uncontrollable urge to read the New Yorker and find some Chardonnay.

Fortunately I have an old copy of NR and a Coors Light to snap me back to reality.

Seriously though — no one in flyover country says Pock-i-stahn. It's annoying.

The 2nd Debate.....

I have been watching. I have no idea what the heck the Obamessiah is talking about. Maybe that is because I am stupid.

Obama and Pakistan......

You know why I could never vote for Obama or his ilk? I just cannot stand the way that he pronounces Pakistan. Its kind of like Paw-kist-on. I just cannot stand this.


I am amazed that anyone is offering to raise taxes as Obama is. The foundation of the American as well as the developed worlds economic problems is that there is too much consumption relative to savings. Savings flow into investment and this is what creates innovation, productivity and jobs. Savings creates wealth. No savings creates risk. Raising taxes on the 'rich' and giving it to the 'middle-class' is just turning savings into consumption. What the economy has needed this past 10 years is savings not consumption. This kind of tax policy coupled with the socialization of people's risk is a recipe for disaster.

Governments Intervening in the Markets....

We have seen governments around the world intervening in markets trying (I think hopelessly) in trying to stem the tide of a rapid deleveraging that will have to finish in its own time. Also, over consumption in the US will rapidly decline and due to fear, we will save more. Asians will save less and consume more as the large pools of cash are depleted to support their sagging economies.


Published in the New York Times on September 30, 1999.

In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.

The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.

Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.

In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates -- anywhere from three to four percentage points higher than conventional loans.

''Fannie Mae has expanded home ownership for millions of families in the 1990's by reducing down payment requirements,'' said Franklin D. Raines, Fannie Mae's chairman and chief executive officer. ''Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.''

Demographic information on these borrowers is sketchy. But at least one study indicates that 18 percent of the loans in the subprime market went to black borrowers, compared to 5 per cent of loans in the conventional loan market.

In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.

''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.''

Under Fannie Mae's pilot program, consumers who qualify can secure a mortgage with an interest rate one percentage point above that of a conventional, 30-year fixed rate mortgage of less than $240,000 -- a rate that currently averages about 7.76 per cent. If the borrower makes his or her monthly payments on time for two years, the one percentage point premium is dropped.

Fannie Mae, the nation's biggest underwriter of home mortgages, does not lend money directly to consumers. Instead, it purchases loans that banks make on what is called the secondary market. By expanding the type of loans that it will buy, Fannie Mae is hoping to spur banks to make more loans to people with less-than-stellar credit ratings.

Fannie Mae officials stress that the new mortgages will be extended to all potential borrowers who can qualify for a mortgage. But they add that the move is intended in part to increase the number of minority and low income home owners who tend to have worse credit ratings than non-Hispanic whites.

Home ownership has, in fact, exploded among minorities during the economic boom of the 1990's. The number of mortgages extended to Hispanic applicants jumped by 87.2 per cent from 1993 to 1998, according to Harvard University's Joint Center for Housing Studies. During that same period the number of African Americans who got mortgages to buy a home increased by 71.9 per cent and the number of Asian Americans by 46.3 per cent.

In contrast, the number of non-Hispanic whites who received loans for homes increased by 31.2 per cent.

Despite these gains, home ownership rates for minorities continue to lag behind non-Hispanic whites, in part because blacks and Hispanics in particular tend to have on average worse credit ratings.

In July, the Department of Housing and Urban Development proposed that by the year 2001, 50 percent of Fannie Mae's and Freddie Mac's portfolio be made up of loans to low and moderate-income borrowers. Last year, 44 percent of the loans Fannie Mae purchased were from these groups.

The change in policy also comes at the same time that HUD is investigating allegations of racial discrimination in the automated underwriting systems used by Fannie Mae and Freddie Mac to determine the credit-worthiness of credit applicants.
The bottom line, is that for the past the 75 years, government has been too involved in private transactions and this has led to distortions in the real economy. Subprime is not caused by Wall Street greed solely. Wall street acted like one would suspect. It is the job that Wall Street is supposed to do. All Wall Street did was to try to distribute this and this stuff was not of their making. The straw that broke the came's back is the subprime and this stuff falls squarely on the feet of US governement.

This crisis will either be a clarion call to all that government intervention should be reduced or people will want to socialize all financial transactions which will destroy my nation and promise no hope in the future.

Saturday, October 04, 2008

Passage of the Day.....

"I think the responsibility that the Democrats have may rest more in resisting any efforts by Republicans in the Congress or by me when I was president, to put some standards and tighten up a little on Fannie Mae and Freddie Mac," Clinton said recently.
From here.

Friday, October 03, 2008

Government Intervention in Mortgage Lending and the Panic of 1907....

The current crisis is a financial banking crisis whose roots are found in reckless mortgage lending over the past several year. But why did all of these banks participate and get caught owning all of these bad assets. Well, the reason being is that the government told them to do so. Sub-prime lending was encouraged by government and banks were told to hold the paper in order to merge.
One of the few journalists to see where this would lead was Jeff Jacoby, of the Boston Globe. Last week he reminded his readers what he had written in 1995: "Our banks are knowingly approving risky loans to get the feds and the activists off their backs... When the coming wave of foreclosures rolls through the inner city, which of today's self-congratulating bankers, politicians and regulators plans to take the credit?". Jacoby adds now: "Barney Frank doesn't. But his fingerprints are all over this fiasco."

Its interesting that the Panic of 1907 had its roots in Wall Street excesses where institutions lent to stock speculators that ultimately led to the collapse of several institutions. This caused a serious tightening of credit and a severe economic contraction in the ensuing 12 months. Back then there was no Federal Reserve and the US Government had no funds to bailout the banking industry. So, JP Morgan came to the rescue and US Steel Corporation came to the rescue to buy one of the troubled institution.

I expect that the economy may be experiencing a contraction like that of 1907-08 where industrial production fell dramatically. But it rebounded fairly quickly and the panic led to the creation of the Federal Reserve.

Bad News.....

Another Great passage.......

The 19th century British politician Andrew Tytler was supposed to have said, “a democracy is always temporary in nature; it simply cannot exist as a permanent form of government. A democracy will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury. From that moment on, the majority always votes for the candidates who promise the most benefits from the public treasury, with the result that every democracy will finally collapse due to loose fiscal policy, which is always followed by a dictatorship.” ‘Always’ is a very strong term; and it presupposes that information has no cautionary effect on the public.
Politicians think that they are doing us favors by handing out money to people. One of the biggest fallacies that exist in the US is that thing called Social Security. There is no Social Security Trust Fund. The only asset that Social Security holds are US Government bonds that exist since Social Security taxes were spent on other things and the government issued debt back to itself. The bulk of the outstanding US Government debt of $10 trillion is held by such agencies. The only way to pay out these benefits that we have been promised is therefore by collecting immense amounts of new taxes.

It just will not happen. There will be no Social Security when I get old enough to collect. The government has promised to give you something that is already yours. It makes absolutely no sense. They take social security taxes and then just give it back to you, as if the are actually doing something. Its insane.

So, as the quote above postulates, voters have voted to give themselves something that they did not earn. At the end of the day, there is no way to create additional value for people other than that which they already have. So government is taking money out of one pocket and putting it into another. Wow, how wonderful.

So I think that governments need to stay out the business of such idiotic things as Social Security. And furthermore, there is a gigantic downside to government promising such huge benefits and its not just the risk that the money just won't be there for people that have paid into the system. The greatest problem is that people have not been compelled to save on their own. With the opiate of Social Security being there when we age, people have gone a binge of spending. This is showing up in such areas as the large trade deficit that WILL fall when Americans go back to saving again.


Singing for Obama.....

Singing for Hitler....

Singing for Lenin....

Zimbbwe Inflation......

As we see here, Zimbabwe's inflation rate is now 531 billion %. That 531,000,000%. Its unbelievable, they cannot add zeros quick enough to the currency to make it relevant. It would be impossible to transact with the currency since it will lose value every moment. So, as I have heard, transactions are all in US$. The problem is that people outside the big cities don't have access to currency and therefore are unable to buy or sell anything.

Passage of the Day......

The one good thing that came out of this whole credit debacle, I now have the perfect pithy response to all the lefties who tell me that the government should take over health care and make it affordable to everyone. You mean the way they made home ownership affordable to all through Fannie and Freddie? How did that work out for you?
From here.

Thursday, October 02, 2008

You May Be Taliban or Al-Qaeda If.....

1. You refine heroin for a living, but you have a moral objection to beer.
2. You own a $3,000 machine gun and $5,000 rocket launcher, but you can't afford shoes or a toothbrush.
3. You have more wives than teeth.
4. You wipe your butt with your bare left hand, but consider bacon 'unclean.'
5. You think vests come in two styles: bullet-proof and suicide.
6. You can't think of anyone you HAVEN'T declared Jihad against.
7. You consider television dangerous, but routinely carry explosives in your pocket.
8. You were amazed to discover that cell phones have uses other than setting off roadside bombs.
9. You've often uttered the phrase, 'I love what you've done with your cave.'
10. You have nothing against women and think every man should own five or six.
11. You bathe monthly, whether you need it or not.
12. You've had a crush on your neighbor's goat.

Crisis Management US vs. China....

Crisis of Capitalism or Crisis of Regulation......

I am always amazed listening to left-wing clowns yapping on TV that this financial crisis was a failure of not enough regulation. Banking is one of the most highly regulated businesses on the face of the planet. And yet, failures are happening not just in the US but also in Europe where 5 banks have failed so far this week and were forced to seek government assistance. So, by definition, bank failures in Europe cannot be the fault of American regulation since they are not regulated by Americans. So, when Pelosi bloviated that this banking crisis was the result of the Bush Administration's 'anything goes attitude' then how can that 'anything goes attitude' by the Bush Administration apply to the 5 banks that failed this week in Europe and the ones like Northern Rock and a handful of unpronounceable German banks last fall that also failed?

Could it be that regulation is just a fundamentally flawed concept that cannot effectively do what governments claim can be done. Could it just be that regulation by government is also tainted by politicians that effect social policy through the backdoor of regulation and foist either/or costs or benefits on a select few at the cost of the many? It sure seems that as information dribbles out on the root causes of this most recent crisis that it is exactly misguided social action on encouraging the needy to buy homes as one of the roots of this crisis.

Also, do we want these politicians regulating something that they know so little about? The largely unregulated hedge fund industry, despite having multitudes of risks embedded in their existential DNA have weathered the storm pretty well up to this point. So, why is the unregulated handling this while the highly regulated not doing so well? It could be several factors, including but not limited to:
1. Hedge fund managers get paid exorbitantly well when they are successful and make nothing when they are not. This is a huge incentive towards ultimate success.
2. Investors in hedge funds live in a world of caveat emptor and have to be sure that the strategies employed by these funds is sensible and there is an internal policing mechanism that keeps the wheels on the track.
3. Investors know that there is no government protection (no moral hazard issues) so they are extra diligent on making both the initial investment and also pulling their money out when the strategy doesn't make sense anymore.
4. Money moves to new strategies to take advantage of opportunities according to the market and is not led or limited by outside regulatory or government interference.
Hedge funds are true capitalism and banks are not. So, in my humble opinion, governments and regulation have again proved that they are incapable of operating socialist economic policy effectively or efficiently.

Wednesday, October 01, 2008

Politically Correct Vs. Financially Sensible....

Democrats, since the Community Reinvestment Act of 1977, have been supporters of politically correct lending at the expense of making financially sensible loans. They are also complicit in pushing Freddie Mac and Fannie Mae as well as a multitude of banks when they sought to merge to buy and hold these loans in their portfolios. This is not the greed of Wall Street but the stupidity of Washington, that continues to foist unfunded mandates on people and businesses in the USA.

Don't just listen to me, listen what Bill Clinton has to say about it....

However, no-one or political party is without blame. But what is to blame is to centralize decision making power in Washington is recipe for problems. Washington distributes over $2 trillion annually in the USA. This is too much and we need to get these incompetent people out of the economic lives of Americans.

McCain: Allow Treasury to Buy Worthless House Seats....

by Scott Ott for ScrappleFace

(2008-09-30) — Sen. John McCain said he would introduce a revised version of the failed $700 billion financial-sector bailout bill in the Senate this week expanding the powers of the Treasury Secretary by allowing him to buy up not only junk mortgage securities, but also worthless seats in the House and Senate.

“The real crisis we face is that the value of the property we call Capitol Hill has cratered,” said Sen. McCain, “And still, the house is worth a lot more than its occupants.”

Under the McCain amendment, the U.S. Treasury Secretary could “rescue” American taxpayers by buying out so-called “junk lawmakers” — those who encouraged the government intervention in free markets that led to the current crisis.

Asked how he thinks the public will respond to the plan, the GOP presidential nominee said, “I think Americans will be for closing those offices.”