Watching the pot come to a boil

Also note: H1N1 swine flu virus mutates in Australia.

 

“Watching the pot come to a boil”

28-Oct-10 News — Rare earth minerals controversy creates new alliances
France is braced for a new strike on Thursday 

Rare earth minerals controversy creates new alliances

As we reported yesterday, China’s export restrictions on rare earth minerals (REEs) are considered by many international officials to be China’s revenge for the arrest of the fishing boat captain last month, and even for the selection of a Chinese dissident as winner of the Nobel Peace Prize.


Global production of rare earth oxides (Market Oracle)
Global production of rare earth oxides (Market Oracle)

China produces over 90% of the world’s supply of rare earth minerals (REEs). REEs are not particularly rare, but they are expensive to mine because of labor costs and poisonous byproducts that pollute the environment, according to an analysis by Market Oracle.

Apparently, the current situation is due to the foresight of former Chinese leader Deng Xiaoping, according to Global Post. In the 1980s, he put the country on track to be the world leader in development of REEs, though some say it was by taking advantage of China’s cheap labor costs and weak environmental laws.

The REE controversy is a boon for Australian mining companies that still produce them, according to the Sydney Morning Herald. Prices are going so high, according to the article, that a new bubble has been created, and it’s likely to burst at some point.

Other countries, including the U.S., couldn’t compete with China on price, and they simply stopped developing REEs in the 1990s and the early 2000s.

One American supplier, Molycorp Inc., has a mine in Mountain Pass, Calif., that was closed almost ten years ago, and could reopen, but it would take four years. Other suppliers might require up to ten years.

On the other hand, India has now decided to restart production of REEs for the first time since 2004, according to Reuters, and expects to be in production in 2011. India hopes to meet Japan’s need for REEs as quickly as possible. This is part of a Comprehensive Economic Partnership Agreement (CEPA) signed by Prime Minister Manmohan Singh and his Japanese counterpart, Naoto Kan.

This agreement is significant for a number of reasons, according to an analysis by Asia Times. Japan is eager to develop a strong trading relationship with India these days, but that wasn’t the case a few years ago. Until recently, Japan complained of bureaucratic bottlenecks and corruption in India, but China’s actions on REE’s seem to have turned things around.

When we look back at this controversy five or ten years from now from the point of view of Generational Dynamics, it may turn out to have spiraled into something big, or it may have fizzled into nothing. What makes it interesting now is that it supports the overall expected trend. The prediction is that we’re headed for a new world war with China, as the mutual xenophobia between China and the West continues to grow. Thus, we expect Japan to be allied with India and the U.S., and China to be allied with Pakistan.

A part of the CEPA agreement mentioned above between Japan and India is that Japan may be investing in nuclear power plants in India. This would have been unthinkable a few years ago, because of Japan’s post WW II nonnuclear policy, having been the target of nuclear weapons in 1945. But the generations of survivors of that attack are now pretty much gone, and Japan may conclude a nuclear deal with Japan.

At the same time that’s going on, the United States has asked Pakistan to provide more information about a civilian nuclear agreement that they’ve concluded with China, according to the Times of India.

Additional links

France is braced for a major public union strike on Thursday, protesting raising the retirement age from 60 to 62. However, both houses of Parliament have passed the reform, and only procedural steps are required before the bill becomes law, probably next week. Unions have had to back down from their strike actions in recent days, and Thursday’s strike is the fifth, and possibly the last. Bloomberg

The European Union is headed for a major economic summit on Thursday, following up from last spring’s bailout of Greece. However, there are deep divisions on the way to proceed, and France and Germany are proposing major changes to governance of the EU that would require renegotiation of the Lisbon Treaty. AFP

(Comments: For reader comments, questions and discussion, see the 28-Oct-10 News — Rare earth minerals controversy creates new alliances thread of the Generational Dynamics forum. Comments may be posted anonymously.) (28-Oct-2010) Permanent Link

27-Oct-10 News — Rare earths controversy polarizes China’s relations
Obama administration is becoming more confrontational with China 

Rare earths controversy polarizes China’s relations with the world

From China’s point of view, ceasing exports of rare earth minerals makes a lot of sense outside of ideology. China needs these minerals for its own manufacturing as much as any other countries do, so the Chinese might well reason that they want to keep all of these resources available for themselves.

However, the way events played out, it appears that the Chinese are motivated entirely by revenge and ideology. The result is increasing international polarization.

Rare earth elements have to be extracted from mines, in the way that copper and iron ore are extracted, but as the name implies, they’re much harder to find and extract. There are 17 metals in this category, according to Reuters, all with the names that end in “ium.” The ones in biggest demand are dysprosium, terbium, neodymium, praseodymium and europium.

Rare earth elements are used in electronic devices, everything from the iPhone to hybrid cars to to military weapons. There is some concern that the U.S. military is particularly dependent on China’s rare earth mineral exports.

The rare earth export began as an act of revenge by China following the incident last month where a Chinese fishing boat captain was arrested by the Japanese following a confrontation in waters disputed by both countries. The Japanese backed down in order to avoid antagonizing the Chinese further, but Beijing overreacted enormously. (See “26-Sep-10 News — China turns the screws on a humiliated Japan.”)

China demanded a formal apology and compensation, embargoed exports of rare earth minerals to Japan, and made additional threats. After a few days, it became clear that China had quietly embargoed rare earth mineral exports to other countries as well.

Germany is a country that depends on imports of most of its raw materials, and has been hit particularly hard by China’s embargo. Germany is calling for increased international regulation of the market for rare earth minerals, according to Associated Press, and is appealing to the World Trade Organization for help.

From the point of view of Generational Dynamics, this is just one small incident in what will be an increasing number of incidents, as the level of xenophobia between China and western countries continues to increase. With almost all of these countries in a generational Crisis era, at some point, one of the incidents will cross a line that can’t be ignored, and the result will be war.

Additional links

The Obama administration is no longer courting China, but has been taking an increasingly confrontational stance on such issues as exchange rates, and trade and security issues. The change in attitude reflects the current view that China has no intention of working with the United States. This is one more sign of the increasing xenophobia between China and the U.S. NY Times

Home prices in Hong Kong have almost doubled since the start of 2009, making it impossible for Hongkongers to afford a home. The price bubble is being caused by China’s mainland speculators who see Hong Kong real estate as a good investment opportunity. But officials are increasingly worried that the bubble will burst. Asia Times

Turkey’s role as a member of NATO is going to come under stress at the NATO summit meeting on November 16, particularly on the issue of the plans for a NATO missile shield to protect Europe from possible future nuclear missiles from Iran. Turkey has been developing closer relations with Iran, and has opposed sanctions against Iran, and will probably oppose the missile shield at the NATO summit. EurasiaNet

Osama bin Laden has been searching for someone to take over his own leadership role, and he’s found Ilyas Kashmiri, and 46 year old terrorist with the experience, the connections, and a determination to attack the West — including the United States, making him the most dangerous al-Qaeda operative to emerge in years. He’s hiding out in Pakistan’s tribal areas, and both Pakistanis and Americans are trying to find him. Pakistani officials fear that if Kashmiri carries out another major attack on India or in the West, their country could suffer massive retaliation. Newsweek

There’s another immigration issue in Europe. Immigrants have been pouring into Greece from Turkey and many are put into prisons and camps that a UN investigation charges are “inhuman, degrading and dysfunctional.” Greece has asked the EU for help, and the EU will deploy border patrols in Greece to try to stop the increasingly high numbers of immigrants crossing over. In addition, Greek premier George Papandreou and Turkish Prime Minister Recep Tayyip Erdogan have agreed to work together to solve the illegal immigration problem. At a joint press conference, Papandreou said that a “xenophobic climate” is being cultivated in Europe and hoped that bilateral co-operation with Turkey would help alleviate the trend by reducing the wave of migration. Greece and Turkey have been bitter enemies for millennia. EU Observer

In fact, anti-Muslim and xenophobic feelings are growing in Europe, and are propelling right wing policy. Washington Post

(Comments: For reader comments, questions and discussion, see the 27-Oct-10 News — Rare earths controversy polarizes China’s relations thread of the Generational Dynamics forum. Comments may be posted anonymously.) (27-Oct-2010) Permanent Link

26-Oct-10 News — Xenophobia in Framingham, Massachusetts
U.S. Treasury sells bonds with negative yield for first time in history 

Xenophobia in Framingham, Massachusetts

On Monday evening, I was moderator for a debate between three candidates running for the office of town representative from Framingham, Massachusetts, to the legislature on Beacon Hill.

I used to live in Framingham until last year, when I moved to Cambridge. It’s an interesting town for several reasons, one of which is that it’s still a town, and still has town meetings instead of a mayor. In fact, Framingham is the largest town in the United States.

Framingham is located about 25 miles west of Boston. It’s the target of unending snobbery by the reporters at the major newspapers of the area, the Boston Globe and the Middlesex News, who consider the wealthier municipalities such as Wellesley and Wayland to have superior people. Still, Framingham is a great place to live, with great schools and great shopping.

You would think that the economy was the most important topic in the debate, but actually it wasn’t. The questions that came in from Framingham residents were only tangentially related to the economy. People seem to have resigned themselves to a bad economy, and that there’s nothing that any candidate can do about.

The issue that dominated the debate was immigration or, as I describe it frequently on this web site, xenophobia.

However, the target of the xenophobia was not Muslims or Roma Gypsies or Mexicans. The target is Brazilians, because Framingham has a large community of Brazilian immigrants, including a significant number of illegal immigrants.

As I was sitting there moderating, presenting the questions and listening to the answers, I was struck by how the debate going on in that little room between those three candidates was a microcosm for the debates going on in the entire world.

On a global basis, the first point to be made is that the xenophobia story is not just about Muslims. The issue everywhere is about immigrants of any kind.

The second point is that the issues are always the same — immigrants take jobs, immigrants go on welfare, immigrants cause crime.

And of course, both sides have valid points. Immigrants complain of incessant discrimination, but many immigrants are also very contemptuous of the societies that they live in. In many cases, immigrants are so contemptuous of their hosts that they consider crime against their hosts to be completely acceptable. The local populations return the favor by increasingly being contemptuous of all the people in the immigrant community.

Some people may argue that Muslims ARE a special case because they attacked America on 9/11/2001. That’s certainly true, but as far as I can tell, that attitude is much less true in Europe than it is in America. There’s a lot of xenophobia in Europe directed at Muslims, but what people say is very similar to what they say about the Roma Gypsies, and sometimes even the Jews.

On the other hand, Europeans have a different view of terrorist acts. Europeans are well aware that home-grown groups, including the Irish Republic Army and Basque separatists, have also perpetrated terrorist acts.

For example, from the point of view of someone in Great Britain, at around the time that Muslims were committing the 9/11 attacks, the Irish Republican Army was the real danger. Here’s a list of terrorist attacks in Great Britain since 2000, that I’ve taken from Wikipedia:

  • 2000 1 June: Real IRA bomb explodes on Hammersmith Bridge, London
  • 2000 20 September: Real IRA fired a RPG at the MI6 HQ in London SIS Building
  • 2001 4 March: The Real IRA detonate a car bomb outside the BBC’s main news centre in London. One London Underground worker suffered deep cuts to his eye from flying glass and some damage was caused to the front of the building.[14] (See 4 March 2001 BBC bombing)
  • 2001 16 April: Hendon post office bombed by the Real IRA.
  • 2001 6 May: The Real IRA detonate a bomb in a London postal sorting office. One person was injured.[15]
  • 2001 3 August: A Real IRA Bomb in Britain explodes in Ealing, West London, injuring seven people.[16] (See 3 August 2001 Ealing bombing)
  • 2001 4 November: Real IRA car bomb explodes in Birmingham[17]
  • 2005 7 July: The 7 July 2005 London bombings conducted by four separate Islamist extremist suicide bombers, killing 56 people and injuring 700.
  • 2007 January – February: The 2007 United Kingdom letter bombs
  • 2007 30 June: 2007 Glasgow International Airport attack perpetrated by Islamist extremists.
  • 2008 22 May: 22 May 2008 Exeter bombing by an Islamist extremist, injuring only the perpetrator.

Thus, someone in Great Britain might credibly argue that Islamist terrorists are less dangerous than IRA terrorists.

As I’ve said many times, from the point of view of Generational Dynamics, xenophobia of all kinds is increasing around the world, as the survivors of World War II disappear.

The generations of survivors of WW II remembered how xenophobia in the 1930s led to the greatest world war in history, and they vowed to spend their lives preventing anything like that happening again. But now those people are gone. Xenophobia in all forms is increasing around the world, and it’s going to lead to another world war.

U.S. Treasury sells bonds with negative yield for first time in history

For the first time in history, bonds issued by the U.S. Treasury were in such heavy demand that purchasers push the bond price up high enough so that the yield (interest rate) was negative, at -0.55%, according to Bloomberg.

Imagine that you have a few million dollars sitting around, that you’d like to put somewhere safe. You could invest in stocks, but stocks are too risky. You could deposit it in the bank, but the FDIC only insures $200,000 or so. You could put the money into your mattress, but you’d be afraid of being robbed.

The best solution would be to purchase Treasury bonds. Normally, you would expect to receive interest payments, but not the bonds that were sold on Monday. In that case, you have to pay the Treasury interest for taking your money.

Admittedly, it’s more complicated than that. These are TIPS bonds — Treasury Inflation-Protected Securities — which means that the bonds will pay more in case of inflation in the years to come. Thus, investors are willing to accept negative interest rates in the hope that inflation rates will be high.

However, as I’ve been saying for eight years now, that’s a false hope. The economy is in a deflationary spiral, and the hyperinflation that investors are hoping for will not occur.

Interest rates have been close to zero for most of those eight years, and pundits have been predicting (hyper)inflation for most of those eight years. For these pundits, hyperinflation is like prosperity: They’re both right around the corner.

Negative yields are a sign of a continuing deflationary spiral. A negative interest rate means that investors are willing to pay to keep their assets in cash, which means that they expect cash to become more valuable, which is what deflation means.

Additional links

Both houses of France’s parliament are expected this week to pass the final form of pension reform legislation that will raise the retirement age from 60 to 62. Public sector union workers who have virtually shut down France’s refineries for the last few weeks are now returning to work, and three of the twelve refineries are now reopening. In addition, the port of Marseille has been blocked for weeks, and leaving dozens of oil tankers anchored in the harbor waiting to dock. The blockade has now been lifted, and the oil tankers are beginning to unload their cargoes. France 24

A new dispute has broken out between the Israelis and the Palestinians. Over the weekend, Israeli Prime Minister Benjamin Netanyahu warned the Palestinians not to take unilateral states to achieve statehood by going directly to the United Nations to request an international mandate. Netanyahu’s warning has pissed off the Palestinians, who say that Israelis should not lecture the Palestinians, in view of their record. Meanwhile, the peace talks are still on hold, since September 26 when the moratorium on West Bank settlements expired. It’s believed that the Obama administration is operating behind the scenes in an attempt to bring about a compromise, and get the big peace deal in the sky. VOA

Another Sufi shrine has been attacked by Sunni Islamist terrorists in Pakistan, this time in central Pakistan in the province of Punjab. Al-Qaeda linked terrorists have been attacking Shia and Sufi shrines for months. Daily Times (Pakistan)

Joint military operations between the U.S. and South Korea, with exercises planned for the Yellow Sea this month, have been postponed. According to the South Koreans, the exercises were delayed in order not to antagonize the Chinese and North Koreans, prior to the G20 summit in Seoul on November 11-12. But the Pentagon denies this, and says the delay is caused by scheduling snags. Reuters

China’s recent decision to suspend export of rare earth minerals has spurred Japan and India to expand their bilateral ties in research, development and recycling of rare earth minerals and metals. This is an interesting development, because it supports the view that in the coming Clash of Civilizations world war, India and Japan will be allied against China. The Hindu

(Comments: For reader comments, questions and discussion, see the 26-Oct-10 News — Xenophobia in Framingham, Massachusetts thread of the Generational Dynamics forum. Comments may be posted anonymously.) (26-Oct-2010) Permanent Link

25-Oct-10 News — Observers breathe sigh of relief at Bahrain election
H1N1 swine flu virus mutates in Australia 

Observers breathe sigh of relief at Bahrain election

Observers are breathing a sigh of relief that Bahrain’s parliamentary election on Saturday went smoothly, and that there are no threats of violence in the aftermath, so far.


Persian Gulf region. Bahrain's 33 small islands are a tiny dot in this map
Persian Gulf region. Bahrain’s 33 small islands are a tiny dot in this map

Bahrain is an important American ally because it houses America’s Fifth Fleet, and because it’s a major financial center in the Mideast.

However, the country is governed by Sunni Muslim officials, while 2/3rds of the population are Shia Muslim. Iran has been stirring up trouble recently, and claims Bahrain is part of Iran, as I described last month in “20-Sep-10 News — Unrest grows in Bahrain over Shia ‘terror network’ arrests.”

The election has been closely watched in the Arab community, and the verdict seems to be that it was a great success, according to the Arab News.

According to the article, “The international media had access to all election booths on Saturday and the journalists were free to speak to anyone they wanted. The whole exercise was quite transparent and beamed live on state television. All key ministers were at hand and more than willing to answer difficult questions from the media, indicating the government’s confidence in carrying out this important democratic exercise.”

The opposition party Al-Wefaq, which represents the Shia majority, gained an additional seat in the National Assembly, though they’re still in the minority.

Although the election was successful, severe sectarian divisions remain, according to Geopolitical Monitor and Global Research, and Iran is certain to continue to exploit them.

Additional links

Since it broke out in March, 2009, and spread around the world, the H1N1 swine flu virus has been very stable, with almost no mutations. However, it may now be starting to mutate, as a new form has begun to predominate in Australia, New Zealand and Singapore, where the winter flu season is just ending. Fox News

However, as the flu season begins in the northern hemisphere, the number of deaths from pneumonia and flu has spiked much higher than usual in the U.S. The H1N1 swine flu virus normally targets younger people, since older people are protected by antibodies made during the H1N1 flu outbreaks in the 1950s. Thus, a peculiar thing happened in 2009: The H1N1 flu virus “crowded out” the normal seasonal flu, and the result is that fewer old people died from flu in 2009. This means that old people are at higher risk in the new flu season, and this might explain the spike in deaths. Recombinomics

Anti-Japan protests in China continued on Sunday. The police broke up demonstrations by hundreds of protestors unfurling banners and demanding a boycott of Japanese products. There was no violence. Reuters

For 17 days after the Chile miners were trapped, nobody knew whether they were dead or alive. Then one of the miners attached a note to a probe. The note read, “Estamos bien en el refugio los 33″ (“We are okay in the refuge, the 33 of us”). This note is being declared a work of art, and the phrase has been copyrighted in the name of its author, Jose Ojeda. BBC

(Comments: For reader comments, questions and discussion, see the 26-Oct-10 News — Observers breath sigh of relief at Bahrain election thread of the Generational Dynamics forum. Comments may be posted anonymously.) (25-Oct-2010) Permanent Link

Foreclosure freeze could undermine housing market

An Economy drifting into the abyss:

Foreclosure freeze could undermine housing market

(AP) — Karl Case, the co-creator of a widely watched housing market index, was upbeat three weeks ago. Mulling the economy while at a meeting at a resort near the Berkshires, Case thought the makings of a recovery were finally falling into place.

“I’m a 60-40 optimist,” he said at the time.

Today, Case’s mood is far more subdued. In scarcely two weeks, he and other housing analysts have watched as the once-staid world of back-office bank procedures has spawned a scandal that threatens to further unhinge the housing market.

Allegations of possible mortgage fraud against financial giants GMAC, JPMorgan Chase and Bank of America read like a corporate thriller: forged documents, faked Social Security numbers, phantom titles, disappearing paper trails, “robo-signers” and mortgages sliced and diced so many times that nobody really knows who owns them.

On Friday, PNC and mortgage servicer Litton Loan Servicing joined those three financial institutions in suspending some foreclosures while they review how documents were handled. Bank of America, which had already announced a halt for 23 states, expanded the suspension to cover the whole nation. If other banks follow suit, it raises the specter of a national foreclosure moratorium.

In all, the banks will have to review the paperwork for hundreds of thousands of mortgages. On top of that, class action lawyers and state attorneys general have filed lawsuits and called for foreclosure moratoriums.

In the near term, the freezes could actually benefit both homeowners and the housing market. Homeowners would have time to live rent-free and chip away at their debt. Prices might stabilize because so many homes are penned up.

But the long-term implications are grave. Only a month ago, housing watcher Mark Zandi, chief economist at Moody’s Analytics, predicted that a housing recovery would be under way by the third quarter of next year. Now he believes the foreclosure scandal could prolong the housing depression for at least another few years.

The alleged document fraud could open up the entire chain of foreclosure proceedings to legal challenge. Some foreclosures could be overturned, others deemed outright fraudulent.

Before a housing recovery can occur, all those foreclosed properties have to be re-scrutinized by the banks and then sold. With any foreclosure-related deal open to legal challenge, that inventory could be taken off the market while the legal challenges make their way through the courts.

That’s not to mention the questions being raised about missing paper trails on mortgages owned by people who have never missed a payment. What started as simple paperwork bungling in a Pennsylvania office park now threatens to bring to a standstill the nation’s entire foreclosure machinery.

The development is especially troubling given how large the foreclosure market is. Before the scandal erupted, forecasters at John Burns Real Estate Consulting predicted that 41 percent of residential sales this year would be on distressed properties. Typically, distressed properties account for 7 percent.

Since housing is the engine that in the past seven recessions has pulled the economy out of recession, any further damage couldn’t come at a worse time.

“As far as I’m concerned, anything that slows the foreclosure process is a bad thing,” Case said this week.

The debacle injects yet more uncertainty into a frail recovery that is still trying to find its strength.

“This is definitely one of the last things anyone needed to have to deal with,” says Diane Pendley, managing director of Fitch Ratings.

The news that GMAC, recently renamed Ally Financial, and JPMorgan Chase and Bank of America were stopping foreclosure proceedings in 23 states was merely the beginning. Federal lawmakers are calling for a federal investigation, saying the excuses from the industry are not credible, and on Wednesday the Ohio attorney general filed a fraud suit against GMAC, calling it “the tip of an iceberg of industrywide abuse.” GMAC denies the allegations.

In at least six states, attorneys general are calling for foreclosure moratoriums and launching their own investigations. And this week, the attorneys general of up to 40 states are expected to announce a joint investigation into banks’ use of flawed foreclosure paperwork.

A person briefed on the investigation said over the weekend that an announcement of the 40-state investigation could come as early as Tuesday. The person spoke on condition of anonymity because the investigation was not yet public. Iowa Attorney General Tom Miller will lead the investigation.

The Obama administration is studying the situation. Problems with foreclosure procedures were discussed during two recent conference calls involving officials of the Treasury Department, Department of Housing and Urban development, White House and other agencies, an administration official said on condition of anonymity.

A top White House adviser questioned the need Sunday for a blanket stoppage of all home foreclosures, even as pressure grows on the Obama administration to do something about mounting evidence that banks have used inaccurate documents to evict homeowners.

“It is a serious problem,” said David Axelrod, who contended that the flawed paperwork is hurting the nation’s housing market as well as lending institutions. But he added, “I’m not sure about a national moratorium because there are in fact valid foreclosures that probably should go forward” because their documents are accurate.

Axelrod said the administration is pressing lenders to accelerate their reviews of foreclosures to determine which ones have flawed documentation.

“Our hope is this moves rapidly and that this gets unwound very, very quickly,” he said.

Lawyers who have already filed class action lawsuits in Maine and Kentucky are now signing up entire neighborhoods as new clients. They’re hiring private eyes to track down former industry employees and holding marathon conference calls to strategize on how to get every speck of dirt on the banks that they can.

The low-level bank employees in question were supposed to have reviewed mortgage documents in detail. Instead, they say they never so much as glanced at the papers. Nor did they even know where the papers were.

“They were just so haphazard and so gloriously incompetent to save a few pennies here and there,” says Barry Ritholtz, director of equity research at Fusion IQ. “But a few pennies times millions of documents is a billion dollars.”

The banks insist that most of the people involved in the foreclosure deals were legitimately behind on their payments. But even so, if the procedures that put them into foreclosure are deemed fraudulent, it will nullify the deals and require that the entire process start all over again.

The financial institutions insist that, in most if not all cases, there was no fraud, the borrowed missed their payments and the foreclosures are justified. Delays may occur, they say, but the outcomes will be the same. Moreover, they insist they are strengthening their procedures. They are chalking up much of the controversy to possible shoddy paperwork.

But the pronouncements have done little to assuage those connected to the mortgage industry, and the uncertainty is spreading fast.

On Sept. 23, Standard and Poor’s warned of a possible downgrade on GMAC. The next day, Moody’s Investors Service also placed GMAC on a watch. On Sept. 29, Fitch Ratings said it was reviewing the mortgage servicers’ practices.

Perhaps most worrisome was the news on Oct. 1 that title insurer Old Republic National – which provides protection to the homebuyer and mortgage provider in case any unpaid taxes, questionable ownership or other problems turn up – had ordered its agents to cease offering policies on foreclosed properties owned by GMAC or JPMorgan Chase. On Oct. 7, another title insurer, Stewart Title, issued an internal memo making it incredibly difficult – if not impossible – for an agent to write a policy for any foreclosure property connected to any of the now-tainted banks.

“Right now everyone in the industry is trying to understand the scope and breadth of the problem, and is looking to lenders to get their paperwork in order so that sales can resume,” says Kurt Pfotenhauer, chief executive of the trade group American Land Title Association.

Meanwhile, real estate agents who specialize in selling bank-owned properties say the market is locking up. Dorothy Buse, a Coldwell Banker agent in the Orlando, Fla., area, said that out of the 200 foreclosures she has listed for sale, 40 are now in the foreclosure freeze. Of the 40, 12 that were already under contract are now on hold.

“There’s nothing within my power — or my staff’s power — that we can do, except try to reassure them that we’re working on this,” Buse says.

In addition, legal challenges are mounting. On Sept. 24, a district court judge in Maine threw out a ruling in favor of GMAC to foreclose on a house owned by an unemployed mother of two. Now that case will go to a bench trial in Portland.

The court also sanctioned GMAC about its paperwork process, noting that “this case is not the first time that GMAC’s high-volume and careless approach to affidavit signing has been exposed.”

Michael Holmes is one of the thousands of mortgage holders whose house was put into foreclosure by the now infamous “robo-signer,” the GMAC employee who signed 10,000 foreclosure affidavits a month. On Oct. 1, GMAC informed Holmes that the foreclosure on his Belfast, Maine, home had been put on hold. The bank didn’t say for how long.

The temporary halt has done little to subdue Holmes’ stress. He spent the past year and a half fighting to get a loan modification from GMAC, a process he says yielded a file the size of a Manhattan phone book and virtually no response from the bank. He also claims he received no written notice of a foreclosure.

Now Holmes, a former hospitality executive at such Boston hotels as the Ritz-Carlton and the Copley Plaza, says he wants to fight to keep the Victorian he grew up in. But from one day to the next, he doesn’t know what will happen.

“The one safe place you have is your home,” Holmes says. “It’s your comfort zone, and to have that in limbo, it feels like the wolves are on my porch.”

___

AP Business writers Alan Zibel in Washington and David Pitt in Des Moines, Iowa, contributed to this report.

How to Destroy a People Through Immigration

How to Destroy a People Through Immigration

The Fjordman Report
The noted blogger Fjordman is filing this report via Gates of Vienna.
For a complete Fjordman blogography, see The Fjordman Files. There is also a multi-index listing here.


The WND commentator Vox Day has this to say about the use of immigration for the purposes of subversion and colonization:

Throughout history, when an occupying power has wanted to destabilize and destroy a nation, it has settled a foreign people in its midst. The seeds of the Balkan conflict were sown when the Turks planted Albanian Muslims in Kosovo to uproot the Christian Serbs who had long defended the borders of medieval Christendom and had more than once turned back the tide of an expanding Ottoman empire. The Soviet Union under Stalin methodically encouraged Russian emigration into the occupied Baltic states in a campaign of long-term Russification, to such an extent that nearly 30 percent of the populations of Latvia and Estonia were Russian.

Here is what I wrote three years ago. The same principles apply to North America:

Multiculturalism is simply a tool for divide and conquer. Is there then any point in trying to comprehend its logic at all? Maybe it was just a convenient excuse used for disrupting the established order of nation states by flooding them with mass immigration under the cover of “cultural diversity” or historical inevitability. If that is the case, there never was any coherent logic behind it, so we shouldn’t waste our time looking for one. Many of those promulgating it never believed a word of it themselves. Multiculturalism is the new Allah: Don’t understand, just obey.

- – – - – – – – -

This was undertaken by a coalition of different groups with a shared goal of undermining Western nation states. I heard supporters of mass immigration a generation ago state that all this talk about how it would change our societies into the unrecognizable was scare-mongering and racism. Now, the same groups are saying that yes, our societies have been changed forever. It’s good, and it’s anyway too late to do anything about it, so get used to it! Their propaganda was used to deceive the public and keep it off balance in order to implement potentially irreversible changes with little real debate. They knew they would never get the permission to destroy their own countries, so they simply didn’t ask.

By dismantling national borders, the EU has facilitated the largest migration waves in European history. When Poland became a member, many Poles moved to Britain, Germany etc. This left Poland with a labor shortage. They are now considering importing workers from the Ukraine and Russia to compensate for the Poles that left. At the same time, native Brits are fleeing to Spain because they don’t feel at home in Britain anymore. By such moves, you unleash a chain migration that will eventually smash nation states that have existed for ages. Yet this intra-European migration pales in comparison to the immigration from developing nations. The end result will — supposedly — be an entire continent of people without any national loyalties who will be divided, disoriented and thus presumably easier to control. Stalin did the same thing, moving large population groups around to unsettle the state and keep it disunited. The EU has learned a lot from Stalin.

Is European Civil War Inevitable by 2025?

Below is the latest in a series of articles by the British author Paul Weston. It concerns the demographic future of Europe and the civilizational conflict that seems likely to occur sooner than one might have thought.

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Is European Civil War Inevitable by 2025?
Part One
by Paul Weston

If I were to tell you that within twenty years Europe could find itself engaged in a civil war so bloody it made WWII look like a bun fight, you might logically consider me a candidate for the men in white coats. You would be wrong, however. Based on the demographic evidence collated for this article, such a scenario looks not merely possible, but inevitable. In 2005 European males aged 20-40 outnumbered Muslim males of a similar age by 18:1. By 2025 this ratio could drop to a mere 2:1.

There is a common misconception that a significant erosion of our present 95% non-Muslim European majority could not possibly occur for many decades to come. People such as historian Bernard Lewis, a man whose views on Islam are held in high esteem, exacerbate this. When he made his prediction in 2004 that Europe would be Islamic by the end of the century, he did so on the basis of an overall Muslim majority.

Although such a dire prediction is shocking, it does not force us into a position where urgent steps need to be taken to alleviate such a future. We will not be here at such a distant point and can therefore presently reject as overly extreme the actions necessary to prevent it. Suppose though, that contrary to Professor Lewis’s benign view of a “democratically Islamic Europe”, Europe’s Muslims felt unwilling to wait another 80 years to expand their caliphate via the voting booth, and decided instead to take Europe through force.

In this scenario our majority is rapidly eroded due to a number of factors. In 2005, European males aged 0-19 (those capable of fighting in twenty years time) accounted for only 10% of their total population. Muslim males in the same age bracket accounted for 23% of theirs. These figures can be seen in this table and are extracted from the population pyramids compiled by the US Census Bureau 2005. (These figures represent all the countries in continental Europe, rather than EU member states alone).

In addition, the Muslim population, with its birth rate of 3.5 children per women effectively doubles its next generation, whilst the European birth rate of 1.5 children per woman ensures the next generation is 25% smaller than that of its parents.

This loss of almost one third of tomorrow’s generation necessitates massive immigration in order to prop up our welfare states, the majority of which is set to come from Muslim countries. According to the Daily Telegraph, the UN predicts Europe will need to take in 2.2 million immigrants per year, through to 2050.

Once the Muslim population climbs over 3% of the population in Western countries, native Europeans start to emigrate. The Dutch, French, Germans and British are leaving in unprecedented numbers, as noted in a Daniel Pipes article entitled “Europeans Fleeing Eurabia” which should be read in conjunction with this article.

If it is really true that up to 40% of Muslims wish to see Europe operating under Sharia Law, then the ingredients for a Europe V Islamic civil war are already in place, save for the Muslim weight of numbers; an issue being rapidly resolved. By 2025 the combination of factors mentioned above will lead to such a massive transformation in Europe’s demographic makeup that Islam may well have sufficient numbers to confront us.
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I first read Pat Buchanan’s book Death of The West three years ago, which opened my eyes to the demographic imbalance between the birth rates of native Europeans and Muslim immigrants. Although full of doom and gloom, Buchanan never ventured a particular opinion on the likelihood of a full-blown war, perhaps due to the likely backlash from Muslims in America.

This omission was partly rectified by Mark Steyn in America Alone where he does mention war as a possible scenario, but neglects to predict any particular decade. Indeed, he seems to be of the opinion that Europe will acquiesce without any resistance at all. Much as I respect Mr Steyn, I believe he is utterly wrong about this. Europeans have a history of warfare; it is unlikely we will roll over without a fight.

If a Europe V Islam civil war is a possibility, then it is clearly prudent to look at the demographics of the particular section of our population who will actually fight it: Males aged between 18-40. The ratio of these potential combatants in 2005 was 18:1 in our favour.

Now, 18:1 appears to be a number that we can cope with, albeit with a certain amount of low-level violence, but what happens when that ratio becomes 10:1 or 5:1? What would be the likely result, for example, if twenty-five European chartered accountants were confronted by five machete wielding Jihadists? The answer is fairly predictable; they would run away, to file tax returns another day.

Suppose, though, that inside each accountant’s briefcase, lurking alongside their blackberries and slide rules was a machete twice the size of the Jihadists preferred tools of trade? Same answer, they will still seek to escape. Knife fighting to the death is not on the curriculum at the East Midlands College of Accountancy and Equality, nor is it in the temperament of average European males, be they football hooligans with a penchant for fisticuffs, let alone accountants.

Conversely, when a solitary but fully armed US Marine finds himself confronted by five machete wielding Jihadists, it’s fairly safe to say he will recount the ensuing events to his comrades the following morning. The Jihadists, on the other hand, are more likely to have had an up close and personal chat with Allah, prior to salaciously indulging themselves amongst their newly acquired harem of celestial virgins.

Which brings me to the point of this article. 5:1 is no guarantee that the majority will win and 5:1 is where we will find ourselves long before 2025. When I started looking at these figures, I anticipated that the numbers necessary for a civil war — based on today’s 18:1 — would not be in place until well into the second half of this century, but I was wrong. By 2025 Europe could find itself with a potential combatant ratio of 2:1 as shown in the following extrapolated figures, with the ratio figure rounded up or down:

Year 2005 – Overall Population.

Total Population: 519 million
Non-Muslim European population: 494 Million.
Muslim population: 26 Million.
Ratio: 19:1


Year 2005 – Males Aged 20-40

Non-Muslim European population: 70.3 Million.
Muslim population: 3.9 Million 1
Ratio: 18:1


Year 2025 – Males Aged 20-40

Non-Muslim European Population: 53.4Million
Muslim Population: 5.9 Million
Ratio: 9:1


This ratio of 9:1 is not hypothetical; the people it represents are already here in our maternity wards and schools. It does not however, represent the true picture of 2025. Europe’s welfare states need a constant ratio of workers to dependents, a situation that requires immigration due to feminism’s legacy of career before children. The aforementioned UN report suggests that Europe will require 2.2 million immigrants per year, with the majority coming from Muslim countries. When these extra 28 million immigrants are taken into account the figures look as follows.

Year 2025 – Males Aged 20-40

Non-Muslim European Population: 53.4 Million
Muslim Population: 10.1 Million 2
Ratio: 5:1


As these numbers slowly change the character of Europe, many Europeans will simply pack up and leave, a situation occurring already in unprecedented numbers in countries such as Holland which has a 6% Muslim population, one of the highest in Western Europe. According to the Telegraaf an estimated 121,000 native Dutch emigrated in 2006 compared to only 30,000 in 1999. The demographic profile of these emigrants was well educated, 35-44 with good incomes. Their exodus represents a massive 4.5% of their entire age group. In one year.

In Britain, with a lower Muslim percentage but a higher incidence of terrorist activity, more than one in two wish to emigrate. So, to take an overly conservative figure of emigration amongst 20-40 year olds running at a mere 1% per annum, the figures would look as follows.

Year 2025 – Males Aged 20-40

Non-Muslim European Population: 44.6 Million
Muslim Population: 10.1 Million
Ratio: 4:1


In the event of civil war erupting, does anyone seriously think that Turkey would remain on the sidelines? By 2025 there will be some 12 millionTurkish males of fighting age. They will probably be part of the European Union well before then, but, if not, it is unlikely that the necessity of a visa will stop them from crossing the border in aid of their fellow Muslims. Should this transpire, the figures are as follows:

Year 2025 – Males Aged 20-40

Non-Muslim Population: 44.6 million
Muslim population: 22.1 million
Ratio: 2:1


Third world immigration into Europe is quite possibly an issue that politically correct Europeans will grudgingly accept; the Islamification of Europe is another matter entirely and I have seen nothing in the rhetoric or physical actions of European Muslims to suggest this is not their aim. Europeans will not allow this to happen, the politicians in suits will find themselves usurped by the men in the streets. This is why these numbers are so important.

And these numbers are probably worse than I suggest here. As events unfold, the 1% trickle of European emigration I cite could well turn into a flood. Daniel Pipes considers an exodus of the bourgeoisie to be a distinct possibility. Also, I am not a demographer3, so I have no idea how to factor in the children of the millions of immigrants predicted to arrive year on year through to 2050. In addition, the majority of immigration is likely to be made up 20-40 year olds, so the 15% figure of their total between now and 2025 could be only half of the true number.

Finally, what statistical advantage do fanatics prepared to die for their cause have over post-Christian Europeans? Unless things change, Europe will find itself with a mere 2:1 advantage within 18 years, and a 5:1 advantage within the next ten. I wouldn’t like odds of 5:1 let alone 2:1, and the argument that moderate Muslims will not become involved is specious; once a few tit for tat atrocities are committed, everybody will be forced to take sides.

The ramifications of these figures will deeply affect Europe over the next ten years, which I will discuss in part two of this article.

© Paul Weston 2007


Note 1: The US Census population pyramids suggest countries with high birth rates — i.e. Muslim — are made up of 23% male 0-19 year olds, and 15% male 20-39 year olds. These are the percentages used for this article in the regrettable absence of census figures.

Note 2: I have taken the immigration rate as being 70% Islamic, and used 15% of this figure to arrive at the number of males aged 20-40.

Note 3: I am neither a demographer nor mathematician. Due to this, there are slight inconsistencies in the table accompanying this article, although they do not affect the overall figures. One example is my use of 20-40 year olds rather than 18-40 year olds, purely as an ease of projection. Should there be any professional demographers reading this, perhaps they could build a spreadsheet acceptable to scholars. These figures need to be in the public domain and discussed at the highest level.

Who Will Protect Us From NATO?

The Fjordman Report
The noted blogger Fjordman is filing this report via Gates of Vienna.
For a complete Fjordman blogography, see The Fjordman Files. There is also a multi-index listing here.

A shorter version of this essay was published yesterday at Big Peace.


The Western defensive alliance NATO was a product of the Cold War. While it may have been a useful tool back then, the organization has so far proven utterly incapable of dealing with the tidal wave of Islamic aggression and Third World invasion through mass immigration that is engulfing the Western world. It is likely that there will soon be a concerted push by Morocco to retake the Spanish-ruled enclaves of Ceuta and Melilla. How will NATO react to such a blatant attack on one of its member states? Will it respond in any meaningful way at all?

An attack on Ceuta would be highly symbolic since the European global expansion started in this exact place in the fifteenth century. After the Reconquista, the Portuguese occupied the strongholds because this region was used as a base for Jihadist Muslim attacks against Christians in the Iberian Peninsula. Ceuta was captured by the Portuguese in 1415. Only a few years later, Henry the Navigator arranged for organized explorations of the African coast. The rest is history, but that history is now being reversed by a declining Europe and a resurgent Islam.

It is becoming increasingly evident to intelligent observers that the experiment with secularism in Turkey is failing and that the country is reemerging as a hostile Islamic power, the way it has been for most of the past 1,000 years. There are clear parallels between how the USA currently acts toward the Turkish neo-Ottomans and how Western European powers acted vis-à-vis the original Ottomans in the late 1800s. For example, there is the unholy practice of using smaller nations as bargaining chips to appease Muslims. The difference is that the USA treats all of Europe the way the British and French used to treat the Balkan Christians, by consistently pushing for Turkish membership in the European Union. NATO has actively supported the Islamization of Europe through its military actions in Serbia and Kosovo.
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The USA has been trying the remake Europe and the world in its image at least since the days of Woodrow Wilson. This policy entails breaking down traditional European social structures and encouraging Third World mass immigration, just as US authorities have been doing for decades in North America. Native Europeans need to be “cured” of their cultural identities. American authorities are just as much behind this Globalist Multicultural program — perhaps more so — as their Western European counterparts through the EU and its pro-Arab networks.

Appeasement doesn’t work. In the good old days when educated Westerners read their Machiavelli and understood it they knew that being both feared and loved is good, but if you have to choose between the two, it is better to be feared than loved. We can live with having enemies as long as they respect us, yet today we give them no reason to do so.

The foolish policies pursued by Western nations in Iraq and Afghanistan cannot work; it is impossible to export “democracy” to backward Islamic tribal cultures, and it is meaningless to waste young men’s lives and valuable resources on attempting to do this while sharia law is spreading within the West, unopposed and often with the approval of Western authorities.

Western European authorities have already virtually surrendered. In his infamous Cairo speech in June 2009, President Obama made it clear that he will actively aid the Islamization of the Western world and work against all those who oppose this policy. Frankly, the USA is currently surrendering even faster to Muslims and their demands than the Europeans are doing.

It is clear that Turkish PM Erdogan wants a break with the West in favor of an Islamic bloc, which means that Turkey is a Trojan horse within NATO. The question is how to deal with Turkey without strengthening Erdogan’s hand further. The question after that is whether we need NATO at all anymore. NATO is supposed to “protect” us, but from what? The Russians?

It is currently the policy of all NATO member states, from Canada to the Netherlands, to promote the Islamization of Western countries. US General Wesley Clark, who led NATO’s bombing of Christian Serbs in Kosovo, stated flatly in 1999 that “There is no place in modern Europe for ethnically pure states. That’s a 19th century idea and we are trying to transition into the 21st century, and we are going to do it with multiethnic states.” Yet, courtesy of NATO, Kosovo is now a nearly ethnically pure state of predominantly Muslim Albanians.

Is this policy still the official Multicultural doctrine of NATO, to destroy Christian Europeans wherever they live in favor of “multiethnic states”? If so, who will protect us from NATO?

 


 

The Dogmatic Denial of Reality

The Dogmatic Denial of Reality

Our Norwegian correspondent Zylark returns with an essay about the persistent failure of postmodern intellectuals to perceive and understand the world as it is, rather than as they would prefer it to be.

Marat-Sade
The Dogmatic Denial of Reality
by Zylark

Why many intellectuals miss the point, and many who are not considered intellectuals do not.

Education is a double-edged sword, especially in the social sciences. It is no secret that most higher educational facilities are dominated by the more liberal professors and other like-minded faculty. It is the prevalent culture.

And that is quite fine, in principle. The campus is supposed to be a free zone, where ideas are to be tested on merit, not prejudice. Which requires tolerance, a mindset ready to admit fault, and not least the recognition that nothing is holy, beyond criticism.

It sounds nice, and in the more nature-oriented sciences, this is how it works for the most part. But in the social sciences it does not. Various social sciences have forgotten about reality, and instead got hung up in their own constructed ideal view of existence. They mistake how they want reality to be for how reality really is.

That is how you can find people calling themselves scientists who claim one’s sex is arbitrary to one’s development and identity. That one’s role and identity in society, not least with regards to one’s sex and sexuality is determined according to learned societal stereotypes, not the genes and sex itself and the inherent predispositions inherited with them.

In this view any girl can behave as a boy, and vice versa. Naturally, however, anyone more inclined to following actual evidence (as a proper scientist would) can tell you that there are some very significant differences in the inherent psychological makeup of boys and girls. It is not a coincidence that boys tend to play with cars, and girls with dolls, generally speaking.

This denial of realities is part of a dogma. It goes under the guise of a liberal intellectual mindset best described as postmodern relativism. That is: all ideas have equal validity. This dogma asserts that all basic understandings of reality, and as a continuation morality and ethics, are equal. Boy? Girl? Doesn’t matter.

This is, of course, true in the sense that both sexes have equal worth, and should enjoy equal opportunity. It is not true in the sense that both sexes possess the same interests, however. Obviously, this is not a clear cut dichotomy. It is more a soft-edged overlap. As are most things in nature.

But you do not need a higher degree to know that most girls like to play with dolls, and most boys like to play with cars. You do need a higher degree to say that sex has nothing to do with a choice of favorite toys.

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A similar situation obtains with regards to the West and Islam. A basic denial of facts. Various intellectuals and politicians alike assume Islam is just another religion, like those practiced by, say, Buddhists, Hindus, or Christians. Strike one. Next they assume religion is by definition a force for good. Strike two. And finally, strike three, they assume Islam can be tamed. They are very aware of the more feral variations of Islam, but they think in some ideal world, when it encounters tolerance, Islam will be domesticated.

Indeed, some even think that when Islam meets the West here in Europe — and providing we Europeans give up a few hard-won freedoms, all will be nice and honky-dory. As the “peace researcher” Johan Galtung claims:

“If we resist, the Islamic future will be hard rather than soft. Immigration, the large movements of people in this time, will bring this along. No one can stop it. And remember, the foreigners in their time were asked to come here, and they came here for economic and historical reasons that no one can do anything to change.”

And this is a world-renowned “peace researcher”! What he is prescribing is that Western Civilization should roll over and die. To submit. We’ve brought this on ourselves, which is true, but we cannot resist, which is false.

Now, I’ve met Galtung on a number of occasions, and I understand his intellectual position. Indeed, many of his ideas and conflict-resolution models have merit. But only insofar as a few assumptions are met. In essence that there are some commonalities between two conflicting extremities that one can work with to create “a third way”. Not a compromise as such, but rather a new way of working together.

His favorite example is of the financier husband and Buddhist wife, who grow apart due to differing world views and interests. The compromise solution, is for each to do his or her own thing. Spelling divorce in the end. His third way is for the husband and wife to start a Buddhist bookshop. Merging the business interest of the husband and the Buddhist interest of the wife. All fine and good so far.

But I do not quite see how you can merge the “Kill the Jews and subjugate the infidels!” interest of Islam with “let’s all be nice to each other, and make a profit!” tolerance of the West…

Yes, pacifism and dialogue worked with Gandhi and the British empire, but in that case both parties were not that keen on actual violence, for various reasons. And neither party was hell-bent on forcing the other to submit to his ideology. Gandhi advocated the same pacifist approach towards the Japanese during WW2 as they came closer to India and looked like they might threaten the British dominion. How likely is it that if the Japanese had been victorious, India would today be a free country? And how long would Gandhi have lived pressuring Japan rather than the UK?

The fact is that civility works only as long as one’s opponent is civilized. In all other cases, only force will work. There are no negotiating with despotism.

Galtung’s hope lies in a benign version of Islam. Here in Europe we spent a few centuries taming Christianity. I don’t think we have the patience to tame Islam.

And most who live in the free world and see how Islam behaves more or less understand that on instinct. However, some with higher degrees in the social sciences still deny reality. They live in their own ideal world of the imagination.

Living in the real world, keeping one’s mind on it, brings a perspective that academia forgets at its own peril.

America’s Leaking Sewer Pipe

America’s Leaking Sewer Pipe

 

Just recently the progressives (who else?) in DC have started a campaign to make Puerto Rico a state. This little toilet has wanted to join the union for over a century, but up until now, even the most corrupt of our leaders knew that America could ill afford to drop the wall preventing all those countless millions of mulatto, black, and mestizo peasants from flooding in here. And flood they will, if that bill passes.

Just like every other mud on the planet, they all look upon America and the fruits of whitey’s labors with a greedy eye. And like all the other muds on earth, ethics doesn’t even enter into the equation. To a mud, it’s all about what he can get away with…period. Puerto Rico is a nightmare of disease, drugs, prostitution, AIDS, murder, filth, and overpopulation, which is always a chronic problem in all mud nations on earth. And if we let these parasites in here, they’ll make our Mexican problem look like a frigging holiday.
But not much about this new push is mentioned on any of the news channels, because the politicians have quickly learned to do things behind our backs, then spring them on us after it’s too late to stop them. This is the height of arrogance, hubris, and evil.

Puerto Rico has always and forever been a parasite on America’s teat. And being in a strategically important location, our military has used it for a base of operations for ages as a jumping off point to South and Central America and other regions of the Pacific.

Its inhabitants are primary mud, and mixed muds at that. You have blacks, Mestizos, Cubans, Polynesians, Haitians, and various damned ugly and degenerate mixes of all of them, that look like something out of an anthropologist’s nightmare. Mexican looking muds with nappy hair and a gorilla nose, Mestizos that are black as pitch, and mixed whites that look like someone stirred a bucket of shit into the mix before they were born. The ugly market has been cornered in Puerto Rico, along with the stupids.

There is a white elite area there where thousands of very wealthy Americans and Brit families migrated to live like kings amongst the peasants…and they do. Servant labor is cheap and abundant in this poverty stricken nation, and so are everyday goods and commodities that you and I pay triple for here in the States. Same stuff, same brands, but at ridiculously low prices because that’s what the market will bear.

This gives you a pretty good idea of just how deeply the companies of this world gouge into our pockets compared to the rest of the world. They sell their goods there at those prices and still make a profit. What does that tell you?

This huge white area is where many of the military families also live. It is, for the most part a gated community with very strict and effective security to keep them from being robbed blind by the mud population that eyes their little paradise with greed and malice. Servants are checked and scanned before entering and leaving, to make sure they don’t bring any weapons in, or stolen goods out.

And they catch quite a few who think they are smarter than an x-ray machine. Muds will perpetually try to steal from you, regardless of the risk. They can’t help it. It’s part of their very nature to steal. In fact stealing is a part of both the black and Hispanic cultures, and is accepted as a part of living, just like eating or breathing.

Seldom is a fellow mud punished for stealing. When caught he is forced to return the goods, but as a rule is let go with a minor chewing. That’s because they all do it. Stealing is no big deal to any of them. So to them, rich gringos look like ripe fruit for the picking. They actually get mad when we punish them for robbing us, blaming the theft on us for being so wealthy in the first place.

I’m not kidding here! That’s really how they think. Is it any wonder that after 500 years, all of the Hispanic nations are still in the gutter? I think not.

Right now Puerto Ricans are restricted severely as to the number that can enter the U.S. But if this evil new bill passes the commie senate, we will be overrun with the thieving little bastards. Statistics have already proven that the crime rate in “Little Puerto Rico,” a section of Tampa Florida that is primarily their gathering place, is through the roof compared to the surrounding areas. They even beat out coontown. Now that’s doing something.

If we allow these bastards to join the Union, the new star on our flag should be painted shit brown because the crime rate in America will take a monster hit, and many more thousands of innocent, hard working white families will become the victims of these animals. I don’t care what those glib politicians spout. Facts are facts and screw political correctness.

All muds are criminals. That’s a fact. And some muds are worse than others. That too is a fact. And if liberal America doesn’t like it, they can kiss my white Aryan ass. All I can say is they had better not make that toilet a state, because if they do, all they’re going to succeed in doing is giving us a lot more moving targets when the revolt hits.

Puerto Ricans are about as welcome here as AIDS. The only reason our crooked politicians want to make it a state is to further flood white America with mud. They know it, we know it, and the whole world knows it. It’s time to take out the trash, and most of it is piled up in the House and Senate in Washington.
-Lone Haranguer

Paranoia or Betrayal

Paranoia or Betrayal

I am furious that 10 members of a medical team were murdered this weekend. The Taliban has taken responsibility for the cold blooded killings. Then to justify the deed by stating that they were preaching Christianity. This medical charity organization has been working in the region for 30 years. It is obvious to me that the Taliban has no interest in seeing that it’s people are cared for only that their sociopathic ideology is carried out. We are also being shafted militarily.

The Afghan leadership is two faced. They work with us only at their convenience. We need to leave them to their own solutions, someone there has to step up and be the hero. Arm the Afghan people, let them fight it out with the Taliban or….

It is so hard for us of the western cultures to believe that this can happen to us. Germany has shut down the Mosque that 9/11 players frequented. France and Holland are taking steps to prevent any further Muslim influence. It astounds me that the Taliban and Al Qaeda live in caves with state of the art technology in communication and weaponry. This situation cannot be driven home enough.

I found this entry in the comments section of that article. It is hard to believe that this can happen in our country, but we are so mired in political correctness, are we next or is it a done deal. These are not my words, but certainly express what worries me and others.

Word of the day: barbarian
STAGE 1: INFILTRATION
Muslims begin moving to non-Muslim countries in increasing numbers and the beginning of cultural conflicts are visible, though often subtle.

  • First migration wave to non-Muslim “host” country.
  • Appeal for humanitarian tolerance from the host society.
  • Attempts to portray Islam as a peaceful & Muslims as victims of misunderstanding and racism (even though Islam is not a ‘race’).
  • High Muslim birth rate in host country increase Muslim population.
  • Mosques used to spread Islam and dislike of host country & culture.
  • Calls to criminalize “Islamophobia” as a hate crime.
  • Threatened legal action for perceived discrimination.
  • Offers of “interfaith dialogue” to indoctrinate non-Muslims.

How many nations are suffering from Islamic infiltration? One? A handful? Nearly every nation? The Islamic ‘leadership” of the Muslim Brotherhood and others wish to dissolve each nation’s sovereignty and replace it with the global imposition of Islamic sharia law. Sharia law, based on the koran, sira and hadith, condemns liberty and forbids equality and is inconsistent with the laws of all Western nations.

As the author and historian Serge Trifkovic states:
”The refusal of the Western elite class to protect their nations from jihadist infiltration is the biggest betrayal in history.”

STAGE 2: CONSOLIDATION OF POWER
Muslim immigrants and host country converts continue demands for accommodation in employment, education, social services, financing and courts.

  • Proselytizing increases; Establishment and Recruitment of Jihadi cells.
  • Efforts to convert alienated segments of the population to Islam.
  • Revisionist efforts to Islamize history.
  • Efforts to destroy historic evidence that reveal true Islamism.
  • Increased anti-western propaganda and psychological warfare.
  • Efforts to recruit allies who share similar goals (communists, anarchists).
  • Attempts to indoctrinate children to Islamist viewpoint.
  • Increased efforts to intimidate, silence and eliminate non-Muslims.
  • Efforts to introduce blasphemy and hate laws in order to silence critics.
  • Continued focus on enlarging Muslim population by increasing Muslim births and immigration.
  • Covert efforts to bring about the destruction of ‘host’ society from within
  • Use of charities to recruit supporters and fund jihad.
  • Covert efforts to bring about the destruction of host society from within.
  • Development of Muslim political base in non-Muslim host society.
  • Islamic Financial networks fund political growth, acquisition of land.
  • Highly visible assassination of critics aimed to intimidate opposition.
  • Tolerance of non-Muslims diminishes.
  • Greater demands to adopt strict Islamic conduct.
  • Clandestine amassing of weapons and explosives in hidden locations.
  • Overt disregard/rejection of non-Muslim society’s legal system, culture.
  • Efforts to undermine and destroy power base of non-Muslim religions including and especially Jews and Christians.

Is there a pattern here? Theo van Gogh is murdered in the Netherlands for ‘insulting’ Islam; the Organization of the Islamic Conference demands ‘anti-blasphemy’ laws through the United Nations; France is set afire regularly by ‘youths’ (read Muslims); the rise of (dis-) honor killings…holocaust denial…anti-Semitism…deception re the tenets of Islam; hatred toward Christians and Jews and Hindus and Buddhists. The pattern for all to see is the rise of Islamic intolerance and the covert/cultural jihad to remake host societies into sharia-compliant worlds – to remove host sovereignty and replace it with Islamic sharia law. Sharia law that condemns earthly liberty and individual freedom, that forbids equality among faiths and between the sexes, that rejects the concept of nations outside the global house of Islam, that of dar al-Islam.

STAGE 3: OPEN WAR w/ LEADERSHIP & CULTURE
Open violence to impose Sharia law and associated cultural restrictions; rejection of host government, subjugation of other religions and customs.

  • Intentional efforts to undermine the host government & culture.
  • Acts of barbarity to intimidate citizens and foster fear and submission.
  • Open and covert efforts to cause economic collapse of the society.
  • All opposition is challenged and either eradicated or silenced.
  • Mass execution of non-Muslims.
  • Widespread ethnic cleansing by Islamic militias.
  • Rejection and defiance of host society secular laws or culture.
  • Murder of “moderate” Muslim intellectuals who don’t support Islamization.
  • Destruction of churches, synagogues and other non-Muslim institutions.
  • Women are restricted further in accordance with Sharia law.
  • Large-scale destruction of population, assassinations, bombings.
  • Toppling of government and usurpation of political power.
  • Imposition of Sharia law

The website http://www.thereligionofpeace.com/ keeps track of the number of violent jihad attacks as best it can. The site lists more than 14,000 attacks since September 2001. It is worth a visit. What is occurring, however, that is likely inestimable are events where muslims are bullied by other muslims for not being “muslim enough,” where non-Muslims are intimidated into doing or not doing what they desire, where remnant populations are in a death spiral simply for being non-muslim in a predominantly muslim area. Christians, Jews, Hindus, Buddhists Animists and Atheists meet with death, property destruction or confiscation, forced conversion, rape, excessive taxation (the jizya), enslavement, riotous mobs and various other forms of islam (in-) justice at the hands of muslims in Sudan, Philippines, Kenya, Malaysia, India, etc. And let us not forget ‘death to Apostates’ the world over.

STAGE 4: Totalitarian ISLAMIC “THEOCRACY”
Islam becomes the only religious-political-judicial-cultural ideology.

  • Sharia becomes the “law of the land.
  • All non-Islamic human rights cancelled.
  • Enslavement and genocide of non-Muslim population.
  • Freedom of speech and the press eradicated.
  • All religions other than Islam are forbidden and destroyed.
  • Destruction of all evidence of non-Muslim culture, populations and symbols in country (Buddhas, houses of worship, art, etc).

The House of Islam (“peace”), dar al-Islam, includes those nations that have submitted to Islamic rule, to the soul crushing, liberty-condemning, discriminatory law of Sharia. The rest of the world in in the House of War, dar al-harb, because it does not submit to Sharia, and exists in a state of rebellion or war with the will of ‘Allah.’ No non-Muslim state or its citizens are “innocent,” and remain viable targets of war for not believing in ‘Allah.’ The Christian, Jewish, Coptic, Hindu and Zoroastrian peoples of world have suffered under subjugation for centuries. The Dhimmi-esce are forbidden to construct houses of worship or repair existing ones, economically crippled by the heavy jizya (tax), socially humiliated, legally discriminated against, criminally targeted and generally kept in a permanent state of weakness, fear and vulnerability by Islamic governments.

It should be noted that forced conversions (Egypt) and slavery (Sudan) are still reported. Homosexuals have been hung in the public square in Iran. Young girls are married to old men. Apostates are threatened with death. “Honor” killings are routine. Women are legally second-class citizens, though Muslim males insist they are “treated better” than in the West. These more obvious manifestations may distract from some less obvious ones such as the lack of intellectual inquiry in science, narrow scope of writing, all but non-existent art and music, sexual use and abuse of youth and women, and the disregard for personal fulfillment, joy and wonder. Look into the eyes of a recently married 12 year old girl to see the consequence of the moral deprivation spawned by Islam.

What are we going to do?

 

My Definitions

  • Behavioral Assessment = Profiling
  • Bend the cost curve = Rationing
  • Cap & Trade = Cap and Tax
  • Consumer option = Public option
  • Contingency = Kickback
  • Draw down = withdraw
  • End of Life Counseling = Death Panel
  • Global climate disruption = Climate change
  • Immigration reform = amnesty
  • Millage = Taxes
  • Over seas contingency operations = WAR
  • PC = Politically Correct
  • Point person = Czar
  • Progressive = Socialist
  • Quid pro quo = you do for me, I do for you
  • Resort = hotel
  • Serviced = Screwed
  • Snarkey = Cranky, Short tempered
  • Urban = Poor Blacks

Want to know what California will look like in 20 years?

Want to know what California will look like in 20 years? Google Tijuana.

Google Earth has partially cataloged the streets of Tijuana in the “street view” and it is not a pretty sight. The sprawling urban city of 1.5 million butts up against the US border. It has one of the highest murder rates in the Western Hemisphere. Google street view shows a dense urban landscape where residents live in total fear of their neighbors. The entire city is covered in massive concrete walls, steel gates, and steel bars. Combine that with the gang graffiti and crumbling roads and it looks like some post apocalyptic landscape. It is so dangerous that the United States Marine Corps recently ended a decades old tradition of letting soldiers take leave in the city.

Click here to explore the real Tijuana.

Obama to Latinos: I don’t have to enforce immigration law.

Obama went on Univision, the Spanish language network, to re-assure Latinos that he has no plans to enforce US immigration law.

From RCP…

“The most important thing that we can do is to change the law because the way the system works — again, I just wanna repeat, I’m president, I’m not king. If Congress has laws on the books that says that people who are here who are not documented have to be deported, then I can exercise some flexibility in terms of where we deploy our resources, to focus on people who are really causing problems as a opposed to families who are just trying to work and support themselves,” President Obama told Univision.

Note: Obama released Haitians criminals from detention centers in a unilateral backdoor amnesty. These were illegal aliens from Haiti who have already committed crimes in the United States. They had served time in American jails and prisons and were awaiting deportation. Obama released all of these illegal alien thugs back into society. Some have already committed new crimes. Obama’s comments are absurd. He wants all illegals to stay, no matter how many problems they cause.

Velasquez fans show their hatred of white people after fight.

Latino MMA fans celebrating Velasquez victory with racial animosity. The new UFC heavyweight champion has “Brown Pride” tattooed on his chest and boasts of being “100% Mexican” despite being born in California. His title match took place in Anaheim where Latino fans waved Mexican flags and signs saying “Brown Pride.”

The irony is a white competitor with “White Pride” tattooed on his chest would be barred from even competing. Velasquez defines himself in racial terms and his Latino fan base love him for it.

After the fight, youtube and internet message boards were filled with tens of thousands of messages from Valasquez fans attacking whites. In fact, praising Velasquez for his victory and attacking white people with profanities and racial slurs seem to go hand in hand for Latino fans.

 

Partitioning intra- and inter-racial genetic variation

Partitioning intra- and inter-racial genetic variation

We are all familiar with the mantra of the anti-racist when confronted with facts about race: there is more genetic variation within a race than between races.  Is this true?  It depends on how one measures genetic variation.  Using Fst or AMOVA, the split is typically 85/15 between intra-racial and inter-racial variation.  But these measures are based on allele frequency comparisons averaged over individual genes.  It’s hard to reconcile an 85/15 split with the following PCA plot, based on 250,000 SNPs:

Xing2009PCA-1.jpg

Let’s look at 4 populations: YRI (Nigerians, left of plot), CEU (Northwestern Europeans, bottom of plot), CHB (Chinese in Beijing, top of plot), and JPT (Japanese in Tokyo, top of plot).  Considering that the first two principal components account for 87.8% of the variation, and that the distance between samples in the same population is tiny compared to that between populations, this plot suggests that the 85/15 split is not an adequate description of the intra- vs. inter-racial variation.

One common statistical technique for partitioning variation is ANOVA (to be specific it is partitioning variance, or the variation around a mean).  Here is a short introduction to the method.

I took 100,000 random autosomal SNPs from the HapMap 3 data set and determined the genotypes for 100 individuals (excluding children) from CEU and YRI at those positions.  For each SNP, I determined which is the most common allele in the overall population (I’ll call this the globally most common allele, or GMCA).  I then calculated the total number of GMCAs for each individual, across all SNPs.  The GMCA totals where then used with a single factor (population, with 2 levels: CEU and YRI) to perform a one-way ANOVA.  This procedure was performed 3 times. (note: the results should be similar if, instead of choosing a ‘GMCA’, I just chose a random allele).

The median ratio of the treatment sum of squares to the total sum of squares was 0.985 (range: 0.979 to 0.986).  Racial group explains 98.5% of the variation.

The distribution of GMCA counts within CEU and YRI are relatively normal.

CEU:

CEU_cnt_histogram.jpg

YRI:

YRI_cnt_histogram.jpg

The variance for CEU and YRI is 36761.77 and 38314.7, respectively.  The rule of thumb is that there should be less than a 4-fold difference in the variance of any groups used in the analysis, so this is fine.

A plot of the residual versus fitted values does not suggest problems with heteroscedacity (variance increasing or decreasing with the magnitude of the fitted value):

ANOVA_residuals_vs_fitted.jpg

The residuals look to be fairly normally distributed:

CEU_YRI_ANOVA_residuals.jpg

ANOVA_normal_Q-Q_plot.jpg

The normal Q-Q plot suggests that normality breaks down at very high and low values, but this does not look worse than some plots I’ve seen which are said to be ok.

So far as I can determine, there are no major violations of the assumptions required for ANOVA.

The 98.5% inter-racial variance is more in line with the PCA plot shown at the beginning.  Another approach, instead of using ‘GMCA’, would be to use the eigenvalues for the significant principal components from PCA for the samples in each population.  For example, if ANOVA on the values for principal component 1 of the above PCA showed that 99.5% of the variation was between groups, this would be converted to proportion of total variation by multiplying 99.5% by 75.9% (the percentage of variation accounted for by PC1), giving 75.5%.  Suppose ANOVA for PC2 showed 95% of variation as inter-group, this would then add 11.3% (0.95 x 0.119), for a total of 86.8%.  This would be done for the rest of the significant principal components.

In summary, the 85/15 partitioning of genetic variation is based on a single, limited definition of genetic variation.  Methods that consider large numbers of genes can apportion more variation between races.

Meg Whitman Spends $163 million to Lose the California Election

Meg Whitman Spends $163 million to Lose the California Election

Whitman waffled on illegal immigration, lost credibility with voters, losing by 13 points.

by James Buchanan

After defeating Steve Poizner in the Republican primary, it looked as though Meg Whitman would simply steamroll the Democrat candidate. Meg Whitman had been the CEO of e-Bay and became a billionaire in the process. The idea of a successful businesswoman running California had a strong appeal, but an over-managed campaign by inept advisers and Whitman’s inability to take a stand on key issues of the greatest importance to California doomed her campaign to failure.

The individual running against Meg Whitman is none other than aging hippie retread, Jerry Brown, the same bungler who allowed California state workers to unionize, which led to salary and pension deals, that are helping to drive California toward bankruptcy. You’d think Whitman might have mentioned that in a few commercials, but her dream team of “genius” political advisers either didn’t think it was important or they were afraid of offending the union members.

A recent news article reports “Democrat Jerry Brown has opened up a wide lead over his Republican challenger, Meg Whitman, with just eight days left before Election Day, a new LA Times/USC poll has found. Brown’s lead over Whitman has jumped to 13 percentage points. Of the voters surveyed, 52% said they would vote for Brown while just 39% said they planned to vote for Whitman.”

Meg Whitman has failed over and over to make her positions clear on the issues. When the Arizona immigration law SB1070 became national news, Whitman could have clearly voiced her support for it, but instead she produced a bewildering answer that it was OK for Arizona, but bad for California because California is bigger. Why should the size of California matter?

Whitman failed to take a clear stand on Proposition 23, a bill to repeal California’s Global Warming Act, which will cost California over a million jobs according to two different studies. If Whitman came out loud and clear supporting Prop. 23 to repeal the Global Warming law, it would have benefited both her and Proposition 23. As things stand now Prop. 23 is losing by 11 points thanks to a barrage of left wings ads and Meg is losing by 13 points. Left wing political ads claim that Prop. 23 will cause electrical rates to shoot up –while the complete opposite is true.

Whitman’s gutless political advisers are apparently telling her to avoid taking a clear position on anything. This however is totally insane. After a while, everyone begins to notice that Whitman is continually speaking like a lawyer and can’t say anything straight.

Whitman came out looking bad again when her illegal alien nanny went public. It’s a little hard to believe that Whitman didn’t know her maid was an illegal alien, considering that the maid was barely able to speak English after being in the US for over 10 years. Whitman didn’t bother to make the effort to hire an American nanny.

What completely killed Meg Whitman’s chances to win were her attempts to pander to Latinos. After telling the John and Ken radio show that she would be “tough as nails” on illegal immigration, she then released ads in Spanish that talked about a “path to citizenship” for illegals. This attempt to take both sides of the illegal alien issue immediately was exposed by the media and talk radio. It was at this point that Meg Whitman lost all her credibility with the White people of California. Her million dollar advisers look like complete imbeciles once again.

Politicians need to decide how they’re going to get a majority. It’s possible to get a majority in California by taking a strong stand against illegal aliens. Even though White people are less than 50 percent in California, Blacks are strongly opposed to illegal immigrants who compete with them for government programs.

Meg’s fuzzy position on illegal immigration and her attempts at pandering to illegals led to her splitting the White vote 41-to-41 with the Democrat, which is an absolutely horrible performance by a Republican. A strong stand against illegal aliens should get 80 percent of the White vote.

A Meg Whitman interview on the immensely popular John and Ken show, which is broadcast throughout California went disastrously wrong. John and Ken tried to get Whitman to take a clear position on Prop. 23 and the illegal alien issue. If Meg had bothered to listen to the John and Ken show like millions of other Californians, she might have been better prepared and realized that she could NOT weasel her way out of answering some basic questions that are of great importance to the people of California. Whitman was reportedly sniffling in the elevator on the way out of the KFI studio. After Meg Whitman’s disaster, Jerry Brown avoided the John and Ken show like the plague.

The people of California want someone who has political beliefs that mirror their own. California is literally being driven bankrupt by illegal aliens and unionized state workers who have salaries and pensions that are totally unsustainable. The crazy California legislature refuses to do anything about these two issues, which will doom the state to bankruptcy.

Maybe it’s just as well that Meg Whitman loses to Jerry Brown. Let the aging hippie retread, Brown take the blame when California eventually goes bankrupt. And if we’re really lucky, these rich egomaniacs will quit running in Republican elections. Whitman doesn’t have the guts to tackle the illegal alien problem, and without deporting millions of illegal aliens, California is going bankrupt. By running in the California race, she squandered $163 million just to lose the election and she also denied California a chance to have a more serious right wing candidate on the Republican ticket.

The Tea Party Revolution and the Future of Politics

The Tea Party Revolution and the Future of Politics

by James Buchanan

There are at least three Tea Party candidates running for Senator in the 2010 elections. There’s Rand Paul in Kentucky, Sharon Angle in Nevada and Christine O’Donnell in Delaware. The Tea Party played a key role in defeating pro-Amnesty Republican Senators Bob Bennett and Arlen Specter. Bennett not only lost his primary, he placed THIRD scoring only 27 percent. Arlen Specter was even more pathetic. Specter actually fled the Republican Party, ran in the Democrat primary and lost. Both Specter and Bennett supported the 2007 Amnesty Bill, and were seen as liberal “RINO” Republicans.

Anyone familiar with US politics should know how rare it is for an entrenched, multi-term incumbent to be defeated in his own primary. Even John McCain barely squeaked by after spending $21 million and lying about his past support for Amnesty. If the Arizona primary system were closed so that only Republicans could vote for the Republican candidate, McCain would have lost too.

The combined defeat of Specter and Bennett and the primary victories by Rand Paul, Sharon Angle and Christine O’Donnell is already the making of a mini-Revolution. The Jewish mainstream media has been fighting the Tea Party revolution every step of the way. Any embarrassing thing the Jewish media can dig up on the Tea Party candidates going back to their teenage years has gone on the evening news and the Jay Leno Show.

The Tea Party is at least the beginning of a move in the right direction. Most of the Tea Party is against illegal immigration. The acronym “TEA” stands for “Taxed Enough Already”. Most of the Tea Party members are long time conservatives who are sick and tired of a Republican Party of crooks, who are little different from the Democrats.

What led to the Tea Party Revolution? Why are taxes so high? We’re paying for government benefits for tens of millions of Third World parasites. And who’s paying the taxes? Primarily White people, most of whom can’t send their kids to their local public schools because they’re full of Mexicans or Blacks and have become too dangerous. Many White people in big cities today can’t pay for private schools for their kids plus the endless taxes that the Democrats want from them.

Added to that is the bipartisan betrayal (NAFTA and GATT) which led to the outsourcing of millions of American factory jobs. There’s also the massive legal immigration from Asia that has flooded many technical fields, lowered wages and added many White Americans to the ranks of the long-term unemployed.

Considering the long, long list of betrayals against the White American public by our government, they are lucky that all they’re facing so far are electoral defeats of incumbents and the election of a wide range of Tea Party candidates, some of whom are extremely serious and some of whom are novices, who have few plans other than reducing taxes.

This raises the question of whether the Tea Party movement will finish with a few dozen upset victories in 2010 or if the revolution will evolve into a more serious political movement. Lowering taxes will be the first step. The second step will hopefully be the deportation of over 20 million illegal aliens and the revocation of birthright citizenship for the children of illegal aliens.

The Tea Party should be seen as a positive development by even the most jaded and pessimistic Americans. We’ll soon discover the extent of the Tea Party Revolution with the November elections. It’s likely the senior members of the Senate and House will try to bully the TEA Party Senators and Congressmen and block their efforts at reform, but the surviving long term incumbents need to remember that the Tea Party has ended the careers of Senators, who had four and five terms under their belts. Getting in the way of the Tea Party may prove a career-ending decision for even more long-term incumbents in the 2012 elections.

By the 2012 elections, the Tea Party may not be satisfied with the ouster of corrupt politicians; the public could easily be demanding the criminal prosecution of politicians, who lied us into wars or who gave multi-billion dollar kick backs via Stimulus Bills and TARP to their political cronies.

2010 Is Just Deck Chair Politics on the USS Titanic

2010 Is Just Deck Chair Politics on the USS Titanic

October 25, 2010

by Ron Holland

“Every election is a sort of advance auction sale of stolen goods.”
~ H.L. Mencken

The political consensus is following the 2010 election, the Tea Partiers and the GOP establishment will breathe a sigh of relief and celebrate their victory and our two-party monopoly system of government will continue as before. A GOP House majority will checkmate Obama and the Democrats in the Senate and political stalemate will result. Many conservatives and a few Washington pseudo-libertarians will claim stalemate is better than a Democrat landslide but they will be wrong.

Like the Titanic, the Washington/Wall Street ship of state hit a Federal Reserve created iceberg under the command of George W. Bush with the recession/depression. Again, like recent evidence suggests, the original Titanic hit the iceberg and sank so fast because of a steering mistake turning the ship in the wrong direction which could have been avoided.

In a similar fashion, both Obama and Bush, following the self-serving orders of Bernanke and Wall Street steered the nation directly into the current depression and coming national debt and dollar collapse by following Keynesian economic principles instead of letting the market quickly resolve the crisis.

Everything you read or see on the establishment propaganda news outlets is just a rearranging of the deck chairs on the Titanic as the ship of state is certainly sinking. The goal of productive American citizens should be to get as far away from the ship of state as possible to avoid the downward pull a sinking vessel exerts on everything in the water as it goes under.

The Establishment Political Consensus Is Dead Wrong

America today is a one-party state much like the Soviet Union, China or Nazi Germany and both nominal political parties are just façades presented to the public to create the illusion of competition and choice. The establishment leadership in both the GOP and the Democrats represent the goals of the same special interests.

Our ability to “throw the bums out” every two or four years is just a release valve built into the political system which guarantees the continued elite control of our political process. Although there are some patriots in national politics in both parties, they never are allowed to take control of either party or the closed political system.

Before the summer of 2011 is over, the Tea Party supporters will already be angry and disappointed as the GOP elites will maintain the status quo and there will only be empty rhetoric rather than political action to control spending, curtail the deficits and limit government. When the coming debt and dollar crisis takes hold, I guarantee the GOP will have an action plan supported by the Democrats which will pass with bilateral support to solve the economic crisis. The solution will be the theft of your private wealth and promised benefits all done in the public interest to save America.

Why Only Nixon Could Go To China

And only the Republicans will be able to steal most of your wealth and get away with it with the acquiescence of the Democrats. Only older readers will remember the above political metaphor as it suggests additional legitimacy for politicians making “tough decisions” can result when strong supporters of a political viewpoint suddenly change their views and direction always in the public interest for a crisis etc. In other words, only Nixon, perceived as a rightwing conservative could have opened the door to China in 1972 as a liberal Democrat would have been criticized, attacked and thwarted by the opposition GOP.

What Asset Will Be lost Or Auctioned?

As America goes under, here are 9 assets and guarantees likely to be stolen by the politicians and then auctioned off to buy more time for the Washington elites of both political parties. Do not believe anything anyone from the establishment tells you as it is always false information.

Social Security Theft – As we see today in France, Social Security retirement ages will be further extended into the future. Wealthy Americans will be “means tested” and entirely forfeit their benefits and Washington will eventually end cost-of-living adjustments for all but the poorest Social Security recipients.

Solution: If you are eligible for SS benefits start taking them as soon as possible even at the lower rate and age currently age 62.

Rising Income & Estate Taxes – This is already a done deal by the Democrats and there will be some minor temporary pushback by the GOP but nothing of substance.

Solution: You might get one more year of the Bush tax cuts so throw all income possible into 2011.

National Health Care Expands – Again, some minor changes by the GOP and Blue Dog Democrats but it will never be overturned and in a few years this travesty will be just as supported by the Republicans as they now support Social Security, the Department of Education and the Patriot Act today. There is no solution.

The Risk of Private Gold Confiscation Will Go Up – When the dollar and Treasury market crashes, Washington will enact legislation against gold investors to curtail your profits, add a confiscatory non-productive asset tax or confiscate your gold with some type of fiat currency exchange. In any case, they plan to end up with your gold as this will be the basis of a restored dollar.

Solution: Move most of your gold offshore in a legal and reportable manner but outside the threat of closed or paralyzed banks, US investment firms and desperate politicians.

Home Values Will Continue To Fall – The long-term effects of the Fed and Wall Street bank created boom and subsequent real estate bust along with the foreclosure crisis now beginning will likely continue to weigh heavily on home prices.

Solution: Wait to buy any property you need at a lower price and walk away from properties outside your residence now sinking further underwater.

Confiscation of Large Retirement Fund Accounts – The long-term confiscation and control idea is to eventually force all retirement benefits under the new automatic/mandatory IRA program where everything will be combined with and managed like your Social Security benefits. Wealthy and productive Americans will find their retirement benefits used to support the trillions in underfunded union, state and local government employee plans.

Solution: When possible, move your substantial retirement assets legally offshore to escape a future liquidity crisis when the theft will occur and drawdown your balances by taking withdrawals as soon as you can without an early retirement penalty.

A National Sales or VAT Tax – This will be a quick revenue generator for the Feds but will probably start out somewhere between 2%–5% and rising quickly after that to confiscatory levels. Americans in low tax brackets may initially be exempted from this tax.

Solution: Make any major purchases sooner rather than later.

An End to the Home Interest Deduction – Again, this will be a quick revenue generator for the Feds but will put additional downward pressure on home prices. There is no solution but never buy anything tangible or even an investment for tax benefits. as tax preferences always change and never in your favor.

An Organized Collapse of the Dollar – The Feds fully hope to get some control over the outstanding national debt externally and internally over transfer payments by depreciating the dollar. How they hope to accomplish this without creating a run and collapse of the dollar and Treasury debt is beyond me but this is their intention.

Solution: Diversify your wealth internationally outside the US in banks and annuities, equities, bonds and real estate not denominated in dollars. Buy gold bullion, quality gold mining and national resource stocks outside the US.

The Bottom Line

It really doesn’t matter where you sit on the deck of the Titanic, you have to get off the boat quickly in a lifeboat of your own design. The call for “women and children first” and “there are plenty of lifeboats for everyone” will just be misinformation to enable the leaders of Wall Street, Washington and the Fed to hide their identities, assets and involvement in creating the crisis.

I can’t wait to see Bernanke, Bush and Obama in a lifeboat disguised and dressed in womens clothing along with most of Congress and the Wall Street insiders. May the sharks not be too hungry and the water not too cold so they will suffer longer. Or as Jimmy Buffet put it so well: You got fins to the left, fins to the right and you’re the only bait in town.

Ron Holland is a contributing editor to the Swiss Mountain Vision Newsletter and Freedom Matters published by Appenzeller Business Press.

Copyright © 2010 by LewRockwell.com.

To the Tea Party: Go Screw Yourself

October 26, 2010

by Karl Denninger

Yes, I mean it.

Here’s a “replay” of my interview with Dylan Ratigan last night:

I, and FedUpUSA, ought to sue anyone using this moniker for their so-called “political affiliation” for defamation.

Yeah, that’s a joke.

But so are you.

All of you.

Especially Sarah Palin, Newt Gingrich, Bob Barr, and douchebag groups such as the “Tea Party Patriots.”

Let’s look at their mission statement:

* Fiscal Responsibility
* Constitutionally Limited Government
* Free Markets

Really? That sounds pretty good. But did you read “Free Markets”?

Free Markets: A free market is the economic consequence of personal liberty. The founders believed that personal and economic freedom were indivisible, as do we. Our current government’s interference distorts the free market and inhibits the pursuit of individual and economic liberty. Therefore, we support a return to the free market principles on which this nation was founded and oppose government intervention into the operations of private business.

Oh, oppose government intervention eh? You mean, you oppose stringing up the people who break the law and steal people’s homes and wealth? Private business is only private up until it rips someone off.

Notice what’s missing from this mission statement and principles: Any mention of why I and others led people to mail tea bags to Congress and our President in the first place: rampant theft of taxpayer money propping up FAILED private businesses. 

Then look at what’s over at TeaParty.Org: you’ll find the usual pablum. Guns, gays, God.

Hey, I like talking about Guns, Gays and God too. Let’s talk about all of them within the context of The Constitution, which is what the Tea Party was supposed to be about.  In short:

* Guns. What part of “shall not be infringed” didn’t you bother to read? That one’s simple. And yes, this means that under The Bill of Rights there should be no Brady Law nor any bar on a convicted felon who has served his time buying or owning a weapon! I know what the current law says and I understand the reasoning behind it. But you can’t square it with the clear language in the Second Amendment. Our entire system of criminal justice rests on the premise that if you are convicted of a crime and serve the time for it, your debt to society is paid. If said convicted criminal is still dangerous to society (and thus shouldn’t have a right to self-defense) why are we letting him out so he can victimize other people? Sentences should reflect this; you should not be released until you are no longer a danger to society – period. Prison is often debated as to whether it’s about rehabilitation or punishment – I argue it is neither, it is and should be about removing those who harm others from society until they are no longer a threat to others.

* Gays. What part of “what you do in your bedroom is none of my damn business” didn’t you bother with? You can find that in the 4th Amendment as well as elsewhere. In terms of public space what is your private sexual preference and life doing in the public space in the first place? 200 years ago we called such people perverts and stuck them in the stocks. You want to address this problem? It’s simple: That’s a gay (or straight) person’s private life and its none of anyone else’s damn business what two or more consenting adults do behind a closed door on private property.

* God. What part of the Establishment Clause didn’t you bother to read? “Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof;” You want prayer in the schools? Not unless I can lead a prayer to Allah should I so choose; it is not Constitutional to favor one religion over another. Therefore, you either keep it all out or you keep none of it out, and my preference is to keep all of it out, although I’ll settle for none – either position is Constitutional. No other position is, and that’s the beginning and end of it. The same applies to any other publicly-run and funded space. What people do on their own private property with regard to how they worship is none of your damn business.

Now that we’ve dispensed with Guns, Gays and God in the context of what one of the founders of the Tea Party Movement believes, I’ll deal with the rest.

The Tea Party was initiated as a political protest against the unlawful and in fact unconstitutional usurpation of power from the Congress and The People in the form of extortion-led bailouts of enterprises that had engaged in acts that I, and many others, believe were at least civilly actionable and in many cases crossed the line into criminal activity.

This indictment is not limited to the nation’s large banks, although it certainly starts there. The corruption of our economic and monetary systems runs the gamut from Fannie and Freddie through their ties to Congress (including literal sexual encounters in some cases), banking interests selling trash securities to everyone from pension funds on down, judges who don’t judge but rather protect monied interests on Wall Street, The Federal Reserve intentionally debasing our currency and monetizing government debt, government spending that is running 40% above revenues and much more.

In short, The Tea Party was and is about the corruption of American Politics and the blatant and outrageous theft from all Americans that has resulted. It is about personal responsibility and enforcement of the law against those who have robbed, financially f****d and pillaged the nation.

Yet today we hear literally nothing about these issues among the so-called “Tea Party” candidates and their backers. Sarah Palin has not said one word about locking up the banksters that brought upon the housing bubble and economic collapse. Not one word about Bernanke’s out-of-control Fed and the arguably unlawful monetization of Fannie and Freddie paper, not to mention the monetization of the Federal Debt. Not one word about throwing judges such as this one – The Honorable Bruce Levine – in the dock – although that, ladies and gentlemen, is a statement of felony judicial corruption. If you as an investor run into trouble with a commodity or futures trade and sue you will not get your day in court – a literal “green light” to rob the people by the big banks with official judicial sanction. And you wonder how Hillary Clinton managed to “win” in her Cattle Futures trades eh? Wonder no more.

Tea Party my ass. This was nothing other than The Republican Party stealing the anger of a population that was fed up with The Republican Party’s own theft of their tax money at gunpoint to bail out the robbers of Wall Street and fraudulently redirecting it back toward electing the very people who stole all the f****ing money!

You want me to support The Tea Party as it is currently constituted?

Do all of the above, do it now, and apologize for attempting to perpetuate the financial f***ing of this nation.

Publicize the following as your LEAD:

STOP THE LOOTING AND START PROSECUTING

And finally, one more:

ALL FIVE OF THE LARGEST BANKS ARE RESOLVED AS OUR FIRST ACT IN CONGRESS.

They caused it, they pay for it. Period.

Until and unless you do?