U. S. Treasury Secretary Timothy Geithner wrote a letter to Colorado Senator Michael Bennet dated May 13, 2011, explaining why the national debt ceiling should be raised from the current limit of $14.3 trillion. Here are few insights into the mind of a oblivious Keynesian economist.

Geithner, “I hope that congress will act in a timely manner to increase the debt limit and protect the full faith and credit of the U.S. government, but I appreciate the opportunity to respond to you about this matter.”

U. S. Treasury Secretary Timothy Geithner

“As you know, the debt limit does not authorize new spending commitments. It simply allows the government to finance existing legal obligations that Congress and presidents of both parties have made in the past.

Failure to raise the debt limit would force the United States to default on these obligations, such as payments to our service members, citizens, investors, and businesses. This would be an unprecedented event in American history. A default would inflict catastrophic, far reaching damage on our Nation’s economy, significantly reducing growth, and increasing unemployment.”

Geithner continues “A default would call into question, for the first time, the full faith and credit of the U.S. government. As a result, investors in the United States and around the world would be less likely to lend us money in the future.”

First the federal budget is $3.75 trillion. In that $3.75 trillion we would automatically cut off payments to “service members, citizens, investors, and businesses?” What say we concentrate on eliminating waste, fraud, and a few thousand bureaucrats who produce nothing for our economy and cost thousands of jobs? I know Florida District 24 Representative Sandy Adams is up to the task.

President Richard Nixon defaulted on the Bretton Woods agreement in 1971 reneging on our agreement to redeem dollars for gold payments.

“And those investors who still choose to purchase Treasury securities would demand much higher interest rates, reflecting the increase risk that we might default on our obligations again.”

Did this actually happen in 1971?

In August 1971 when it was announced by President Nixon that the U. S. would default on its obligation to redeem the dollar for gold under the Bretton Woods system the Federal Funds rate increased from 5.63% to 5.75% from August to September and dropped down to a low of 3.29 in February 1972 and raising back to 5% by the end of 1972.

If the U. S. reorganizes does Geithner think the increase in interest rates would be permanent?

Apparently in 1971 the raise in interest rates lasted all of one month. Investors are not dim-witted idiots as Geithner would have Congress believe.

“Default would not only increase borrowing cost for the Federal government, but also for families, businesses, and local governments – reducing investment and job creation throughout the economy.”

The Federal Funds rate since 2007

Is there an inverse relationship?

Almost like the government was “crowding out” private investment. Maybe if the federal government borrowed less there would be more funds for private sector investment?

Commercial Real Estate Loans since 2007. There does not seem to be a correlation between a low Federal Funds rate and actual loans.

“Treasury securities set the benchmark interest rate for a wide range of credit products, including mortgages, car loans, student loans, credit cards, business loans, and municipal bonds. Accordingly, an increase in Treasury rates would make it more costly for a family to buy a home, purchase a car, or send a child to college. It would be more expensive for an entrepreneur to borrow money to start a new business or invest in new products and equipment.”

So increasing the federal debt will increase the amount of loans to the private sector?

Not likely to any meaningful degree. It will it keep the federal government in business longer enabling a greater concentration of wealth into the hands of a few powerful men in Washington D.C. addicted to cheap money. “Concentration of wealth” being the key goal.

Federal Reserve Chairman Ben Bernanke

The last quarter of GDP growth in the spring of 2011 was 1.9%. Low interest rates do not seem to be “stimulating” much of anything except the federal government’s appetite for debt.

Artificially low interests rates are having a hugely damaging effect on the economy that will be visible for years. The main beneficiary of low interest rates is the federal government and Federal Reserve. The federal government can march onward financing its big government (currently 25% of the GDP is consumed by the federal government) movement and the privately owned Federal Reserve is bogged down with billions in low interest junk and foreclosed housing paper.

Florida Congressional District 24 Representative Sandy Adams would like a chance to find fraud and waste in the federal budget so our veterans benefits are not jeopardized.

“A default would lead to a sharp decline in household wealth, further harming economic growth. Higher mortgage rates would depress an already fragile housing market, causing home value to fall. Additionally, a default would substantially reduce the value of the investment – including Treasury securities – held in 401(k) accounts and pensions funds, which families depend on for their retirement security. This significant reduction in household wealth would threaten the economic security of all Americans and, together with increased rates, would contribute to a contraction in household spending and investment.”

He certainly has the deflation from cheap money part correct. Will there be pain by doing the right thing?

Yes, there certainly will be the right way and the wrong way.

The facts are from the fall of 2007 the Federal Funds rate has declined from 4.76% to 0.08%. From the peak of May 2009 real estate loans have declined 9.4%. During that time the highest the Federal Funds rate has been is 0.21%. Low interest rates do not seem to be stimulating the housing market.

Bankers have the education and training to know that low interest rates cannot last forever. They see the massive debt incurred. They know it is safer to invest in short-term in T-bills than a 15 or 30-year fixed mortgage at 5% when the possibility of 5% inflation is very possible in the near future. Since February 2011 the CPI is up 3.4%. How good does a 5% loan look to a banker when the inflation rate is 3.4%? A 10% inflation rate would wipe out thousands of banks that made loans at 5%. We would see a repeat of the S&L disaster in the late 1980’s.

The 4.2 million unsold homes on the market have depressed resale housing prices 34% below the new home prices. There are another two million homes in foreclosure not on the market at this time. This creates uncertainty for bankers and frankly scares the hell out of them from making loans. Under these circumstances would you be out there peddling 5% loans for 15 or 30 years?

The combination of inflation fears and the unsold housing stock are the root of the real estate problem not low interest rates. If bankers could raise their interest rates to take into account the additional risk of inflation and the huge inventories of unsold homes they would be more willing to lend money and stimulate the housing market. Housing prices would fall, but because of the housing surplus created by the policies of Greenspan, Bush, Clinton, Carter, Frank, Dodd, and Maxine Waters, and higher interest rates.

Allowing interest rates to rise would create more economic activity as more consumers could obtain loans and purchase housing that fit their budget and needs. Bankers would be more willing to take on additional risk if they were compensated with fair market value interest rates for their risk.

“The unique role of Treasury securities in the global financial system means that the consequences of default would be particularly severe. Treasury securities are a key holding on the balance sheets of virtually every major insurance company, bank, money market fund, and pension fund in the world. They are also widely used as collateral by financial institutions to meet their day-to-day cash flow needs in the short-term financing market.”

So borrowing and monetizing the debt will make these holdings “safer.”

What Geithner is discussing is referred to as “seigniorage.” Seigniorage is a convenient source of revenue for dishonest governments. Basically if a financial firm or individual holds dollars and the value of those dollars decreased relative to gold or other world currencies the government wins.

Did you get that?

If the Federal Reserve gives the federal government a bunch of cash, the federal government spends it on goods and services before inflation occurs, inflation occurs, businesses, firms, households owning the “old” money lose out to the federal government. The federal government has tricked these businesses and bond holders out of their rightful return on investment by creating inflation. This is a hidden form of taxation, some like economist Gary North would refer to it as theft.

The federal government has a huge, $14 trillion dollar huge, vested interest in seeing that all the paper owned by these institutions declines in value. Future inflation is a hidden tax on these U. S. financial instrument holders, suckers to Geithner and his circle of friends.

How is inflation created?

By increasing the money supply. More debt almost guarantees that the money supply will increase. Geithner is either a dishonest crook or another clueless Keynesian economist. I think the former.

To ensure the value of these low interest financial instruments an honest central banker would tell the federal government that no additional deficit financing credit will be extended and the money supply will be scheduled to grow within strict limits in the future designed to maintain the value of the dollar in relation to other world currencies and gold.

Currently Ben Bernanke is at the helm of the Federal Reserve acting more like an irresponsible bartender handing out cash like it is dollar beer night at the pub. Under his tenure the monetary base (reserves and cash) have increased 200% in the last three years. I do not foresee a defense of the value of the dollar anytime soon. Bernanke will more than likely increase holdings of reserves using stealth intermediaries to acquire three to five year notes so as to avoid the publicity nightmare that Quantitative Easing II created. This will further cheapen the value of the dollar and create inflation.

“A default on Treasury debt could lead to concerns about the solvency of the investment funds and financial institutions that hold securities in their portfolios, which could cause a run on money market funds and the broader financial system- similar to what occurred in the wake of the collapse of Lehman Brothers. As the recent financial crisis demonstrated, a severe and sudden blow to confidence in the financial markets can spark a panic that threatens the health of our entire global economy and the jobs of millions of Americans.”
The risk for the global economy is a continued decline in the dollar. When we borrow money and monetize our debt it increases, not decreases, the chances for a world panic as businesses and central banks increasingly divest themselves from the devalued dollar.”

Geithner is right that a dollar collapse would be catastrophic but his remedy of devaluing the dollar with more borrowing is not sound.

China has divested itself of $200 billion of our short-term securities. Japan has suffered a tsunami and the resulting loss of GDP production. Greece is in financial turmoil and Geithner’s solution is to raise the debt ceiling?

What banking book did he learn this from?

Stupid question. Keynes 1936 work the General Theory of Employment, Interest and Money. An English fairy tale that somehow got classified as non-fiction and is taken seriously by the politicians and economist in Washington D.C.

“Even a short-term default could cause irrevocable damage to the American economy. Treasury securities enjoy their unique role in the global financial system precisely because they are viewed as a risk-free asset. Investors have absolute confidence that the United States will meet its debt obligations on time, every time, and in full. The confidence increases demand for Treasurer securities, lowering borrowing cost for the federal government, consumers, and business. Indeed, during the recent crisis, investors flocked to Treasury securities as a safe-haven asset in the midst of a damaging financial panic. A default would call into question the status of Treasury securities as a cornerstone of the financial system, potentially squandering this unique role and economic benefits that come with it.”

Geithner is right that the world currently flocks to the dollar as crisis hits world markets. That is more a reflection on the poor economic policies in Europe than it is on our policies. Geithner seems enthusiastic that he can get more suckers to buy United States securities and the benefits of seigniorage. As these suckers wake up and see their assets devalued by our Federal Reserve and federal government inflationary policies they most certainly will re-examine their view of the dollar as a “cornerstone” currency.

“Moreover, the fact that the United States would not have enough money to meet all of its obligations would have serious economic consequences. If the United States were forced to stop, limit, or delay payment on obligations to which the Nation has already committed-such as military salaries, Social Security and Medicare, tax refunds, contractual payments to business for goods and services, and payments to our investors – there would be a massive and abrupt reduction in federal outlays and aggregate demand. This abrupt contraction would likely push us into a double dip recession.”

Typical Keynesian nonsense. If you take away government spending there will be a “double dip recession.” Would Mr. Geithner like to make a bet on that? Spot me 12 months.

The Keynesians predicted the same scenario after government spending declined drastically after WWII. They predicted the sky would fall and unemployment would skyrocket. What happened?

GDP from 1944 to 1950. The predicted disaster and financial collapse after WWII spending stopped never happened. When the federal spending stopped the economy boomed.

So what happened after WWII?

From 1946 to 1947 federal government spending declined another 15.5% and the GDP increased 9.9%. That does not seem to match up with the Keynesian script very well, or Geithner doomsday forecast.

By 1950 the GDP had increased a staggering 31.7%. Federal government spending did not return to its WWII level in nominal terms until 1957. Accounting for inflation federal spending did not return to WWII levels until 1966. The GDP grew 253% in that time frame.

Call me crazy but give me a double dip recession and years of prosperity.

“It is critically important that Congress act as soon as possible to raise the debt limit so that the full faith and credit of the United States is not called into question. Congress has never failed to raise the debt limit when necessary. I fully expect that Congress will once again take responsible action, and look forward to working with you and your colleagues on this issue in the weeks ahead.

Sincerely,

Timothy Geithner.”

Looking at this mans grammar it is clear he missed his calling in life. He and his hero John Maynard Keynes should have written fairy tales because it is clear the man is clueless as an economist.

The full faith and credit of the United States is in question?

China has already spoken on this matter. They are selling our financial instruments. Our debt will make China the new financial capital of the world, not America. China has the money, the capital, and we have debt. The financial capital of the world will not be New York it will be Beijing in 10 years, maybe five, and Geithner is playing games with the rest of the world trying to squeeze the last few billions out of the suckers still buying our debt.

I do not know when this façade will fall. Some say 2014, some 2018. I think 2012 will be worse than 2011. This financial mess will unravel. An official inflation rate of 5% to 10% would destroy this pretense Geithner is putting up.

Congressman Barney Frank assured the public that Fannie Mae and Freddie Mac were sound investments. Geithner soon will join Frank in the Hall of Shame

I do not believe Geithner, Bernanke, and Washington politicians believe this crap behind closed doors. Washington will sacrifice anything to increase spending and concentrate economic power in the hands of Obama and the Democratic Party. Any overt or hidden tax by inflation will serve their purpose. If millions of investors the world over are hurt, it is the price paid for progress.

Geithner and the other bastard “economist” and politicians know exactly what they are doing. They are concentrating economic wealth in the hands of a few and ripping off millions. History shows that when the hyperinflation comes, 2014 to 2018, the concentration of wealth in the hands of a few will intensify and the possibilities of a tyrannical fascist government like the one in Germany from 1933 to 1945 will be ensured.

Geithner with this letter firmly places himself next to Barney Frank, who assured the public right before the collapse in 2008 that Fannie Mae and Freddie Mac were good investments.

Geithner’s letter is more of the same con game by a dishonest federal government looking for more suckers to rip off. Geithner is a bastard of the first order and should be jailed for the fraud he is committing. The Washington politicians think they will get away with this scam. They are already busted, soon the consequences will follow.

Today, President Obama renewed his request to raise the debt limit and continued to press for job-crushing tax hikes instead of larger spending cuts.

But as I’ve said: a tax hike cannot pass the House. It’s off the table. The American people know taxes aren’t the problem – Washington’s spending binge is the problem. And we’re standing with the American people.

There will be no debt limit increase unless it includes spending cuts that are larger than the debt limit increase; includes reforms to hold down spending in the future; and is free from tax hikes. If the president puts forward such a proposal, he has my word the House will act on it. But a measure that fails to meet these standards cannot pass the House.

We have an extraordinary opportunity to do something big for our economy. If we seize this moment, we can deliver an important victory for our country and for the future of our children and grandchildren.

Sincerely,
John Boehner

Spending Cuts Must Exceed Debt Limit Hike Or It Will Cost Jobs

Jun 24, 2011

Washington-

Today, Congressman John Boehner (R-West Chester) released the following column discussing President Obama’s request for an increase in the national debt limit:

“Last November, the American people voted for a new majority in the House and sent us to work with a clear objective: ending the job-crushing spending binge in Washington. The government’s addiction to spending has created even more debt, hurt our economy, and threatens our very way of life. But make no mistake; we have a debt crisis in this country because Washington continuously spends more than we have, not because our taxes are too low. So when the Democrats who run Washington proposed tax hikes as part of an agreement in our negotiations to raise the debt limit, I knew that this meant more problems for our economy and another way Washington would be hindering job creation. This is unacceptable.

“When President Obama requested a debt limit increase I was clear that any agreement would have to include spending cuts that were larger than any increase to the limit and that tax hikes were off the table. The American people will not accept an increase in the debt limit that is accompanied by job-crushing tax increases and fails to dramatically cut and reform government spending. And since January, I have been clear: the new majority in the House will stand with the people.

“The president and his party may want a debt limit increase that includes tax hikes, but such a proposal cannot pass the House. I agree with Stanford economist John B. Taylor when he said, If you look around the globe, the countries that have a simultaneous growth problem, and we have a very bad growth problem, and a budget problem – the recipe for success has been to keep taxes low and then cut spending on transfer programs and government employment. That really is a playbook that the U.S. should run and be much more successful.’

“The president and his party may want a debt limit increase without spending cuts that exceed the amount of the debt limit increase, but such a proposal cannot pass the House. On June 1st, more than 150 economists signed a statement agreeing with House Republicans that any debt limit increase that ‘is not accompanied by significant spending cuts and budget reforms to address our government’s spending addiction will harm private-sector job creation in America.’

“The president and his party may want a debt limit increase without budget reforms that will restrict Washington’s ability to spend in the future, but such a proposal cannot pass the House. Everyone agrees that we cannot continue down this path. Our nation’s debt currently stands at more than $14 trillion, which amounts to a $45,500 ‘birth tax’ for every child born in America this year or $120,500 for every household. The Federal Government is currently borrowing more than 42 cents of every dollar it spends, much of it from the Chinese, and sending the bill to our children and grandchildren. I believe our future generations deserve better and I intend to work toward that brighter future.

“House Republicans understand that a debt limit agreement that raises taxes and fails to rein in out-of-control government spending will not only hurt our economy but further impede much needed job creation across the country. If the president and his allies want the debt limit increased, it is only going to happen via a measure that meets these tests. If the president puts forth such a proposal, he has my word that the House will act on it. But legislation that fails to meet these tests cannot pass the House.

“If the president wants this done, he must lead. We have an extraordinary opportunity to do something big for our economy and for the future of our country. With presidential leadership, we can seize this moment and deliver something important for the people we are lucky enough to serve.

“Boehner represents Ohio’s 8th District, which includes all of Darke, Miami, and Preble counties, most of Butler and Mercer counties, and the northeastern corner of Montgomery County. He was first elected to Congress in 1990.”

It is no surprise that Van Jones the avowed Communist Revolutionary is spearheading an Anti-Tea Party movement.

Van Jones came to public attention when Glenn Beck outed the self professed communist who appeared to be one of the Barack Obama, Valerie Jarrett darlings for change.

Jones had been appointed by President Obama to a newly created position of Special Advisor for Green Jobs, in March of 2009.

Beck shocked the public with video tape of Jones speaking in front of different organizations which gave a clear picture of his agenda. That agenda was and remains “redistribution of wealth”. Now it is under the guise of “Green Everything”.

This exposure caused Jones to slip out of the White-house in the dead of night after turning in his resignation.

His parting comment was: “They are using lies and distortions to distract and divide.”

What is Jones up to today?

Well a new movement led by this communist revolutionary group founder seeks to counter the tea party while petitioning for a progressive agenda that includes “making Wall Street and the super-rich pay their fair share.”

The organization, dubbed “The American Dream Movement,” is partnered with a slew of radical groups funded by billionaire George Soros.

As WND first reported, the movement was introduced using subversive tactics, particularly a hoax Youtube video in which it appeared the ticker outside News Corporation’s Manhattan headquarters had been hacked and reprogrammed with an anti-Fox News script calling for revolution.

Full details here …

June 27, 2011

Dear Patriot,

“There is No Risk of an Economic Bubble”

Do you remember the “historically low interest rates” that had been manipulated by the Federal Reserve?

Do you remember the lies that we were fed from government and academia as the Federal Reserve inflated the most horrendous economic bubble since the Great Depression?

Do you remember the idiotic laughter as pundits on both sides of the political divide ridiculed the few people that tried to warn us of our coming economic troubles?

Do you remember the propaganda that we were asked to swallow as incompetent members of Congress allowed the Federal Reserve to march our country towards an economic crash?

Barney Frank in 2005: What Housing Bubble?

“The Biggest One-Day Loss in American History”

Do you remember the record bankruptcies and credit card defaults? Do you remember the sweeping layoffs as companies across the country axed thousands of employees day after day?

Do you remember how millions of people lost their homes and watched their retirement funds evaporate?

Do you remember how suited ex-banksters snaked their way into powerful bureaucratic positions so that they could scheme for taxpayer-funded favors?

Do you remember how they fear-mongered in backroom deals about the imposition of martial law if Congress didn’t vote for the bailouts?

Do you remember how the stock markets continually jerked and crashed as politicians hand-picked politically connected companies to bailout while other companies drowned?

Do you remember how people across the country stepped forward in protest to rebel against the bailouts?

Do you remember the millions of calls into the offices of Congress to tell them we stood in unison against this extortion of middle class Americans?

Do you remember how Congress ignored us?

“U.S. Taxpayers Bailout Bankers to the Cost of $700 Billion”

Do you remember cringing at the headlines as the rich ex-bankers successfully lobbied for the bailouts of their rich banker buddies with your personal credit card? Do you remember how billions of dollars went to the executives of failed banks?

Do you remember how the federal government snatched up banks and auto-makers as if we were caught in some twisted chapter of Atlas Shrugged?

Do you remember how the same people that demanded that we bailout these billionaire bankers, would not tell us who received the $2 trillion dollars in emergency loans from U.S. taxpayers?

Ben Bernanke: “I don’t know who received the money”

The Federal Reserve has continually denied responsibility for creating the bubble that has consumed the last ten years of American economic prosperity and has destroyed the livelihoods of millions of Americans.

Despite being probed by the few members of congress who had the courage to press the issue, the Federal Reserve has quietly dodged every Congressional attempt to acquire information about how it has manipulated the economy or to whom it has shoveled trillions of dollars.

Americans understand that this is a scam. When Congressman Ron Paul introduced a bill to audit the Federal Reserve, the American public rallied behind the initiative.

When the public spoke out against the shady and unaccountable practices of the Federal reserve, the audit bill secured 317 co-sponsors in the House of Representatives and 32 co-sponsors in the Senate.

However, this unprecedented call for oversight did not go unchallenged.

Congressman Mel Watt – whose district encompasses the corporate headquarters of Bank of America – attempted to torpedo our efforts for more accountability by replacing the language of the bill with his own toothless language.

When the Campaign for Liberty sent out the alert about Mel Watt’s attempt to undermine our audit efforts, Americans responded and his treachery was voted down with a huge bi-partisan majority.

By the time the Senate took action on the bill, the Federal Reserve had actually hired its own lobbyist and was fiercely resisting every attempt to tear down its veil of secrecy.

Unfortunately, Senator Bernie Sanders–who had introduced the bill in the Senate–caved under the pressure of the Federal Reserve lobbyists and the Obama Administration by significantly watering down the language of the bill.

Despite having most of the language of the bill watered down or removed, what the public began to learn was astounding.

What was the Federal Reserve up to? Where was the money going?

It was going to middle-eastern dictators and billionaire housewives.

The small bit of audit language that remained intact in the bill uncovered that the Federal Reserve had provided at least 46 low-interest loans to the Arab Banking Corporation, of which the Central Bank of Libya owns a majority stake.

Totaling more than $26 billion, these loans shifted capital from the job markets of our country to the government and banking system under Libyan dictator Muammar Gaddafi.

Yes, the same Muammar Gaddafi that has recently been condemned for turning his military against his own people.

It was also found that $220 million was given directly to Christy Mack, wife of the chairman of Morgan Stanley, and to Susan Karches, the widow of the former president of Morgan Stanley’s investment banking division.

Under the agreement for the “loans,” Mack and Karches can keep all of the profits on their investments while the Treasury and the Federal Reserve would have to absorb 90% of all losses on the investments.

This has nothing to do with protecting our economy or creating jobs. This is political wrangling and corporate welfare at the expense of the American taxpayer.

This insanity has to end. For too long the Federal Reserve has manipulated our economy to disastrous results without oversight. For too long the Federal Reserve has shuffled taxpayer dollars in dangerous political games without transparency.

It is time for a full Audit of the Federal Reserve.

Congressman Ron Paul has reintroduced the bill for a full audit of the Federal Reserve. This time he has a partner in the Senate who won’t stab us in the back when the Federal Reserve and the Obama Administration start pulling strings.

Congressman Paul’s son, Senator Rand Paul, has introduced companion legislation in the senate and has pledged to continue to help us drive this vital issue forward.

We already have huge momentum on this issue as 159 members of the House and 6 Senators have co-sponsored this bill. Can you help mobilize Congress behind this issue?

Please contact your legislators today if they have not already become co-sponsors of “Audit the Fed.” When we last pushed for transparency we proved that the winds of change are in our favor. Only with your help will we finally be able to tear down the walls of secrecy surrounding the Federal Reserve.

For Liberty,

Debbie McKee
Texas State Coordinator
Virginia Campaign for Liberty

So far Allen West has not thrown his hat in the Presidential ring for 2012.
Could he and should he?
Take a look at the videos below and you think about it.

Congressman Allen West FL D22 On Tax Reform

Congressman Allen West FL D22 Commenting About Standing With Israel.

Congressman Allen West FL D22 Commenting On Illegal Immigration.

Below is what others hope and why.

Dear Fellow Tea Party Members:
Written by Dr. Gary De Sousa

I think we all realize that we have reached a crossroads – a pivotal point in our nation’s history where we need solid, bold and unwavering Tea Party Conservative leadership.  It is crucial that we have a leader of integrity and honor.  In short, a leader in whom we can be proud.  We can no longer afford to wait until 2016!

This is why for the first time in my life, I have become personally passionate and involved in the support of the one person that I have seen who fits these criteria – ALLEN WEST.  If you are already familiar with Allen West and agree with me, you need to read no further and can go directly to www.AllenWestforPresident.us to join in recruiting Allen West to run for President in 2012 by clicking on the “A Million Go West” link in the top center of the page.

If you are not familiar with Col. Allen West, I believe that getting to know him will enrich and inspire you as it has me.  You will understand why he is both Glenn Beck and Mark Levin’s first choice for President.  Most importantly, you will see why West would make a most formidable opponent to Obama and why West would decimate Obama in a debate on any issue.
 
Col. West is currently serving the 22nd Congressional District in Florida, a seat he won in a predominantly Democratic district.

He retired from 22 years of service in the U.S. Army in 2004. He served in Iraq, in Operation Desert Storm, and in Operation Iraqi Freedom as battalion commander. After retirement, he served in Afghanistan as a Civilian Advisor to the Afghan Army in Operation Enduring Freedom. Allen West holds Bachelors and Masters degrees in political science. He also received a Master of Military Arts and Sciences in political theory and military operations from the U.S. Army Command and General Staff Officer College. With the principles of limited government, personal responsibility and personal freedom, Allen West holds to the Constitution’s defined primary role of government of “providing for the common defense.” He advocates peace through strength, energy independence, economic recovery through less regulation and a flat tax system, strengthening border security and enforcing federal laws to stop illegal immigration. His comprehension of radical Islam is nothing short of jaw-dropping.

Allen West believes in restoring:

1. The Constitution
2. Limited Government
3. A Strong National Defense
4. Free Markets
5. American Exceptionalism

Why We Need Your Help

Allen West has been asked many times why he hasn’t announced his candidacy for President and his reply is indicative of the honorable man he is.  He says he feels duty-bound to serve the constituents who elected him and he would need a majority of them to “release” him from that obligation.

This is why in Phase 1 of our efforts, others like me sent letters out to his constituents asking that they sign a petition “allowing” West to run for President.  I personally sent out 200 and asked to send more.  But we had so many passionate volunteers, that we actually depleted the mailing lists of constituents faster than we had volunteers to send them!

Allen West is aware of our activities.  As a staunch Tea Party Conservative he actually believes in the will of the people.  We believe that he is waiting to see if that will shows itself to an extent that would compel him to run.  Thus when asked if he might consider a run, his reply was that “it’s in God’s hands.” In that respect, he is like a modern-day George Washington.  West is not in politics because of ambition.  He is in politics to serve his country and the American people, just as he did in the military.  Maybe our current system is backwards.  Instead of ambitious politicians getting in the race then asking for our support, the better way is to find a person you can be proud of and show them that you are willing to support them.

This is why, just last week,  www.AllenWestfoPresident.us has initiated Phase 2: “A Million Go West”- a grassroots campaign to personally deliver one million signatures to Allen West urging him to run for President.  We believe this will convince him of his higher calling and “insure our domestic tranquility.” 

David Swanson, in his original blog states that we are at war on so many fronts, from so many directions, by so many different competing organizations, and so many differing ideologies that it’s getting hard to keep up.  The saddest part is that many of these come from within our very own borders working against their very own Homeland.  Our enemies (within and without) are trying to crush our economy, crush us politically, trying to isolate our Judeo/Christian tradition and religion, end our world power status, undermine our government and erase our borders. 

He believes, as I do, that Col. Rep. Allen West has come along at the very right time in our nation’s history.  We need a LEADER, a strong person of Honor, and real American Values, to LEAD this country back to greatness. Col. West is battle-tested and hardened to the rigors of what it takes to survive in a world where too many want us dead.  He understands what we are up against with the Radical Islamists that only ask two things from Americans . . .  convert to Islam, or die.  He knows that our children’s future is slipping away at the hands of Progressive ideology, and he knows the history of its roots.  For those who question West’s experience, be reminded that Obama’s experience was as a Community Organizer, then a short stint as a Senator before becoming the leader of the Free-World.  While Obama was attending SEIU meetings, Col. West was in charge of and responsible for the lives of 600 brave Soldiers on the battlefield.  Now ask yourself who has the better experience to be a leader?  Most Pro-Americans know by instinct that person would be Col Rep. Allen West!

As George Washington needed to be coaxed, we must find a way to convince Mr. West that he should run for President in 2012.  Please join us in this mission of “We The People” and share it with others through email and social networking. 

 Learn more about Allen West and watch his videos at: www.AllenWestforPresident.us
To get involved in the petition campaign, please go to: www.AMillionGoWest.com

Zero Hedge Fund blogger Tyler Durden speculated that the Federal Reserve spent the $600 billion, QE II, it created last fall to shore up Europe Bank assets. In other words QE II went to help Europe, Germany, Spain, Portugal, and Greece no the US banks. He bases his claim on the build up of the Federal Reserves monetary base shown and the simultaneous increase in European bank reserves.

Monetary Base, note QE II begins fall of 2010

Durden notes the growth of the monetary base here and the growth of bank reserves over in Europe there is a almost one to one correlation.

Foreign bank reserves increased $600 billion since the fall of 2010

Foreign bank reserves compared to Federal Reserve monetary base from fall of 2010 to June 2011

If this is true, and there are several economist like Gary North that are convinced it is, it is the end of Bernanke. There is no one in Washington that will be able to save Bernanke when this scandal becomes public.

Second this explains why the Euro has remained relativity stable over the last few month compared to the dollar and other currencies. If true European exporters will be just as furious as Americans over this action that will have cost them billions in sales.

Third now we know why Germany has had a change of heart as far as its position to bail out the Greeks. A few billion here and there will do that.

Fourth since none of this money made it to US banks none was lent out to help the economy. Not that the US banks would have lent the money out with the specter of inflation looming in the distance and zero confidence in the economy, banks would simply take the cash and purchase more short term T-Bills, but it kind of defeats the whole Keynesian “liquidity” argument for QE II when you are shoveling the cash to Europe.

Fifth, and most important, since there is no excess “liquidity” for US banks to purchase more Washington spending and other nonsense we are almost assured of QE III. Economist and Euro Pacific President Peter Schiff thinks the Fed will hide the QE III program in purchases of longer, three to five year, treasury notes. There will officially be no QE III and the Fed will hide these purchases just as stealth like as they did QE II.

And I thought Bernanke was a dull guy.

Cato Scholar Steve Hanke did a little research on past presidents and how they performed as far as their spending in relation to GDP consumption. It is always good to put the “D” and “R” bias away and see who really did reduce the size of government.

CATO Scholar Steven H. Hanke

Ronald Reagan, the great communicator, decreased the federal governments share of the GDP 0.4% in comparison. The biggest increase has been Obama with a huge 3.1% chunk of the GDP followed by W at 2.5%.

Good-Bye Recession, Hello Slump

by Steve H. Hanke

This article appeared in CATO.

The U.S. recession officially ended in June 2009. With that, a normal post-recession boom failed to materialize. Instead, an unwelcomed slump ensued. Since the recession bowed out, the average annual GDP growth rate has been a paltry 1.6% — well below the long-run trend growth rate of 3.1%.

The economic policy prescriptions of the Obama administration — contrary to the President’s oft-repeated assertions — have failed to mitigate the damage from the Panic of 2008-09. Rather, they have kept the patient in sick bay.

The first misguided advice was peddled by the fiscalists (Keynesians) who dominate the Washington, D.C. stage. According to them, increased government spending, accompanied by fiscal deficits, stimulates the economy. That dogma doesn’t withstand factual verification.

Bill Clinton reduced the federal governments share of GDP consumption 3.9%. Somebody needs to congratulate him.

Nothing contradicts the fiscalists’ dogma more conclusively than former President Clinton’s massive fiscal squeeze. When President Clinton took office in 1993, government expenditures were 22.1% of GDP, and when he departed in 2000, the federal government’s share of the economy had been squeezed to a low of 18.2% (see the accompanying chart and table). And that’s not all. During the final three years of the former President’s second term, the federal government was generating fiscal surpluses. President Clinton was even confident enough to boldly claim in his January 1996 State of the Union address that “the era of big government is over.”

President Clinton’s squeeze didn’t throw the economy into a slump, as Keynesianism would imply. No. President Clinton’s Victorian fiscal virtues generated a significant confidence shock, and the economy boomed.

As for President Clinton’s proclamation about the era of big government being over, he obviously hadn’t anticipated the uncontrolled government spending that would accompany former President George W. Bush’s eight years in office and the truly shocking two-year’s worth of government spending on President Obama’s watch. All told, the George W. Bush and Obama Good-Bye Recession, Hello Slump administrations have added a whopping 5.6 percentage points to government spending as a proportion of GDP. The current federal government outlays are at 23.8% (see the accompanying chart and table). This is significantly above the average of 20.1%.

The surge in government spending — coupled with President Obama’s anti-market, anti-business and anti-bank rhetoric — does not inspire confidence. In consequence, the current U.S. fiscal stance has fueled a slump.

Just the facts and only the facts.

Rest of article here.

While a titillated American public was engrossed in the whining Weiner case there was something far more important going on in the background and almost no one noticed.

On June 9, 2011, President Barack Obama signed his 86th Executive Order.
That NEW EXECUTIVE ORDER was – AGENDA 21
RURAL COUNCIL

This Executive Order established the White House Rural Council with 25 executive branch departments including Defense, Justice, Homeland Security, National Drug Control, Environmental Quality, Labor, Commerce, Interior, EPA, Housing, Health, ( Education to name just a few.)

The order covers 16% of the American population who lives in rural counties because they “supply our food, fiber, and energy, safeguard our natural resources, and are essential in the development of science and innovation.” It ensures Rural America will participate in Agenda 21 goals of Globalization.
The ICLEI non-governmental UN organization gets a partner to reach into Rural America.

SUMMARY OF THIS EXECUTIVE ORDER:
1. Federal Control of Rural American Resources (Food, Health, Energy, Education/Schools, Property, Water and Lives).
2. Increased Federal Regulation through Executive Order (Legislation from the Oval Office)
3. More Regulation of Food production
4. More Regulation of Land use
5. Agenda 21 implementation accelerates in Rural America
6. Implementation of Cap and Trade
7. No definitions of what “Rural America” is. Matter of fact, no definitions at all.
8. More Lawmaking through Regulation (State and Local levels)
9. More State/County Control over your city/town due to grant money distribution
10. Less Local participation due to Regionalized
11. More Federal Jobs funded at Tax Payer Expense
12. Rights Issues: Your Voice. You cannot “Un-elect” appointed committee members.
You cannot contact your elected representative on an issue because this is legislation through committee regulation. (Strings attached to all that tax payer funded grant money)

Under pretenses that are false (based on past statements, actions and performance), the Federal Government is attacking the United States using Agenda 21, ICLEI tactics but it is much more direct this time. The actions are simple and the results – measured but disastrous.

References:

The EXECUTIVE ORDER TO ESTABLISH THE WHITE HOUSE RURAL COUNCIL

Article on Regionalism:

Article on San Joaquin Valley:

Bear Witness:

“Community Food Enterprises” (CFEs) This appears to be the model they are using for these CFEs.

WHAT DOES THIS MEAN TO YOU?

1. First of all I want you to read the opening paragraph:  See the word “sustainable”? Replace it with the word “ACCEPTABLE”.  That is what sustainable means.  This Executive Order is all about the Feds telling rural America what is acceptable to THEM.   It is no longer a local choice, or locally controlled.   

The Feds, several states, counties, and local governments have already fallen into the ICLEI trap and have begun to implement parts of Agenda 21 through their governments.  With this Executive Order, the Feds have moved to escalate their implementation in Rural America. 
 
2. Ask yourself why do we need a rural program that proposes: “The Federal Government has an important role to play in order to expand access to the capital necessary for economic growth, promote innovation, improve access to health care and education, and expand outdoor recreational activities on public lands”?  We just passed universal health care, and I do not know of any community that does not have educational facilities for all of its residents.  How do you think the Feds foster economic growth under this plan?  (Jobs, deficits, spending, economic decline – not revenue – is the problem.)
 
3. This executive Order touts the expansion of outdoor activities on public lands when the reality the feds have already exposed their plans to cut back access to public lands, and have infringed on property rights, land and water rights.  (See http://www.morphcity.com/home/90-epic-fail-global-warming-solutions )
 
4. Just how will the Feds control the local government?  Through grants.  Yes -money.  Your tax dollars.  The feds will set aside money for rural communities, administered by the state, to institute grant (free money) programs that local communities gladly participate in. Local governments will look at this grant money as a way to supplement its dwindling budgets, and without question will agree to Federal requirements.  Not only is this the process that has over-burdened states and local budgets for years – this is the process that has moved the federal agenda into every community in America.  
 
5. This Executive Order gives control over our local planning and development to a Federal committee.  We will no longer be able to voice our concerns, opinions, or grievances at the local level.  This Executive Order virtually eliminates local government’s ability to set policies that benefit rural areas without approval from the Feds.
 
6. Why an APPOINTED committee to “coordinate” this effort?  Committee members will be made by appointment of agencies, offices, and departments.  This Executive Order sets up another committee to regulate all aspects of rural life.  Residents and local governments will have no opportunity to redress any grievances as these appointees are not elected. 
 
7. Why is the Department of Homeland Security (DHS) involved so the Federal government can promote economic prosperity and quality of life in rural America?  The majority of agencies listed in this Executive Order are already under DHS, and Janet Napolitano will sit on the council. 
 
8. “The Department of Agriculture shall provide funding and administrative support for the Council to the extent permitted by law and within existing appropriations”.  So the funds are set aside.  Right.  We are broke yet we have money sitting ready for yet another expansion of the Federal government.  With DHS oversight and the DHS unlimited budget – yes unlimited, I am sure the Feds have plenty of money to move this agenda right into rural America.  (The Department of Homeland Security has no oversight as they directly report to the President, and the perk is that DHS can demand more funds from Congress as part of their written budget through fiscal year 2012 – not ask – but demand)  Remember – no matter what YOU, the taxpayer will foot the bill for this expansion of government.
 
9. “The Council shall coordinate its policy development through the Domestic Policy Council and the National Economic Council”.  WHY do we need yet another council to cover a specific 16% of the country?    Because Rural America still has some degree of control over resources, and we are resistant to globalization.  This Executive Order allows the federal government to implement Agenda 21 right in the heart of America’s food basket.   This ultimately could bring the end to rural life as we know it.  By asking for the Agricultural departments to participate, they will mitigate resistance.   Yes, control the food and you control the population.  Think about this and research how well it worked out for California. 
 
10. This Executive Order will coordinate Federal efforts directed toward the growth and development of geographic regions that encompass both urban and rural areas; and “identify and facilitate rural economic opportunities associated with energy development, outdoor recreation, and other conservation related activities”.   Geographic regions – i.e. Target Areas.  Just like FEMA or states completely regionalized.  This Executive Order sets up regions and removes the barrier to ICLEI’s town-by-town focus and stream lines the effort to implement Agenda 21.   
 
11. Finally:  “This order shall be implemented consistent with applicable law and subject to the availability of appropriations”.  Remember there are no laws that restrict the Department of Homeland Security – thus, unlimited power over Rural America. 

Who WE Need To Contact:
ALL OF US need to get this information out!
Education yourself, your contact list, your community!

It’s not just Bill Ayers…

In October 2010 FBI agents raided the homes of far left activists in Chicago and Minneapolis who were linked to the Marxist FARC terrorists and Islamic radicals as part of a terrorism investigation.

The home of radical Hatem Abudayyeh, a friend of Barack Obama, was raided in the terror sweep.

Hatem Abudayyeh is the executive director of the Arab American Action Network(AAAN). Hatem Abudayyeh has been with the Arab American Action Network (AAAN) since 1999, and was appointed Executive Director in 2003. The Arab American Action Network was founded by former PLO operative and close Obama family friend Rashid Khalidi. Obama was a director of the Woods Fund from 1994 through 2001, when the board approved a$40,000 grant to the Arab American Action Network.

In 2003 Barack Obama was an honored guest at a dinner sponsored by the AAAN for former PLO-operative Rashid Khalidi. During the dinner a video was taken that shows Barack Obama celebrating with members of this Palestinian group who are openly hostile towards Israel. Barack Obama even gave a toast to a Rashid Khalidi at this going away party. The LA Times will not release the video from this Jew-bashing dinner.

Not only was Hatem Abudayyeh’s radical organization given $40,000 by Barack Obama and the Woods Fund but his organization also collected nearly half a million in taxpayer money.

The rest of the story …

By Cliff Kincaid June 23, 2011 6:45 am

In a front page story about a major FBI terrorism investigation, The Washington Post has reported that the targets include “Chicagoans who crossed paths with Obama when he was a young state senator and some who have been active in labor unions that supported his political rise.” The implication is that the trail could lead to the White House.

This is an unusual investigation that does not primarily involve Islamists. Instead, it is focused on elements of the old international communist networks that many people mistakenly thought had faded away with the collapse of the Soviet Union. Those under investigation are suspected of providing support to foreign terrorist organizations such as the Revolutionary Armed Forces of Colombia (FARC) and the Popular Front for the Liberation of Palestine in the Middle East, a Marxist group. The Post called them “Colombian and Palestinian groups designated by the U.S. government as terrorists.”

The investigations came into public view last September when the FBI raided the homes of several “activists,” as the Post called them. Some lived in Chicago.

One of the targets, Tom Burke, was a union organizer for the Service Employees International Union (SEIU). He was so confident he would get a fair shake from the Post that he provided the paper with a photo of himself shaking hands with Barack Obama. The other apparent intention was to send a message to the President and Attorney General Eric Holder that any investigation of Burke might lead to Obama.

The Post suggested that investigations of labor union activists might jeopardize their support for Obama’s 2012 presidential run. Indeed, it could therefore threaten his re-election bid, if investigations determine that the activists did more than “cross paths” with the President.

Deep inside the article, in the 29th paragraph, we find out that some of the “activists” are associated with a group known as the Freedom Road Socialist Organization (FRSO), a Marxist-Leninist organization. Burke is a member of the FRSO, which the Post admitted was “far left.”

The obvious question is why Obama, as a state senator in Illinois, would ever have “crossed paths” with such people. The answer goes beyond just union support for the candidate. The “far-left” networks that include the FRSO, the Communist Party USA, the New American Movement, and the Democratic Socialists of America backed and even spawned Obama’s political career. Don’t forget that Weather Underground leaders Bill Ayers and Bernardine Dohrn hosted a fundraiser for his first run for political office. The same networks also backed CIA Director Leon Panetta’s career when he was a congressman from Santa Cruz, California. This helps explain why Obama would pick Panetta, with no intelligence background, to run the intelligence agency. They are cut from the same cloth.

The rest of the story …