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Great Recession Continues

Haiti's Avoidable Death Toll

A MINORITY VIEW

BY WALTER WILLIAMS

RELEASE: WEDNESDAY, JANUARY 20, 2010

Some expect Haiti's 7.0 earthquake death toll to reach over 200,000 lives. Why the high death toll? Northern California's 1989 Loma Prieta earthquake was more violent, measuring 7.1 on the Richter scale, resulting in 63 deaths and 3,757 injuries. The 1906 San Francisco earthquake measured 7.8 on the Richter scale, about eight times more violent than Haiti's, and cost 3,000 lives.

As tragic as the Haitian calamity is, it is merely symptomatic of a far deeper tragedy that's completely ignored, namely self-inflicted poverty. The reason why natural disasters take fewer lives in our country is because we have greater wealth. It's our wealth that permits us to build stronger homes and office buildings. When a natural disaster hits us, our wealth provides the emergency personnel, heavy machinery and medical services to reduce the death toll and suffering. Haitians cannot afford the life-saving tools that we Americans take for granted. President Barack Obama called the quake "especially cruel and incomprehensible." He would be closer to the truth if he had said that the Haitian political and economic climate that make Haitians helpless in the face of natural disasters are "especially cruel and incomprehensible."

The biggest reason for Haiti being one of the world's poorest countries is its restrictions on economic liberty. Let's look at some of it. According to the 2009 Index of Economic Freedom, authorization is required for some foreign investments, such as in electricity, water, public health and telecommunications. Authorization requires bribing public officials and, as a result, Haiti's monopolistic telephone services can at best be labeled primitive. That might explain the difficulty Haitian-Americans have in finding out about their loved ones.

Corruption is rampant. Haiti ranks 177th out of 179 countries in the 2007 Transparency International's Corruption Perceptions Index. Its reputation as one of the world's most corrupt countries is a major impediment to doing business. Customs officers often demand bribes to clear shipments. The Heritage Foundation's Index of Economic Freedom says that because of burdensome regulations and bribery, starting a business in Haiti takes an average of 195 days, compared with the world average of 38 days. Getting a business license takes about five times longer than the world average of 234 days -- that's over three years.

Crime and lawlessness are rampant in Haiti. The U.S. Department of State website (travel.state.gov), long before the earthquake, warned, "There are no "safe" areas in Haiti. ... Kidnapping, death threats, murders, drug-related shootouts, armed robberies, home break-ins and car-jacking are common in Haiti." The Australian Department of Foreign Affairs and Trade warns its citizens that, "The level of crime in Haiti is very high and the police have little ability to enforce laws. Local authorities often have limited or no capacity to provide assistance, even if you are a victim of a serious crime." Crime anywhere is a prohibitive tax on economic development and the poorest people are its primary victims.

Private property rights are vital to economic growth. The Index of Economic Freedom reports that "Haitian protection of investors and property is severely compromised by weak enforcement, a paucity of updated laws to handle modern commercial practices, and a dysfunctional and resource-poor legal system." That means commercial disputes are settled out of court often through the bribery of public officials; settlements are purchased.

The way out of Haiti's grinding poverty is not rocket science. Ranking countries according to: (1) whether they are more or less free market, (2) per capita income, and (3) ranking in International Amnesty's human rights protection index, we would find that those nations with a larger free market sector tend also to be those with the higher income and greater human rights protections. Haitian President Rene Preval is not enthusiastic about free markets; his heroes are none other than the hemisphere's two brutal communist tyrants: Venezuela's Hugo Chavez and Cuba's Fidel Castro.

Haiti's disaster demands immediate Western assistance but it's only the Haitian people who can relieve themselves of the deeper tragedy of self-inflicted poverty.

Walter E. Williams is a professor of economics at George Mason University. To find out more about Walter E. Williams and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate Web page at www.creators.com.

COPYRIGHT 2010 CREATORS.COM

Beware the Flase Flag

There's are a lot of hand waving going on out there -

From the Mirror -

Two men were stopped boarding US-bound planes at Heathrow days before Britain's terror threat was raised to "severe".
News of the incidents came hours after Home Secretary Alan Johnson lifted the threat level amid fears that al-Qaeda is planning an attack
Anti-terror officials said the past week had seen an "unusually high" number of people on their no-fly list trying to board US-bound planes.

Oh the humanity, we had two individuals on the ever pervasive "no-fly list" try to get on a plane. We're so fortunate that we have these vigilant individuals stopping all the grandmothers terrorists from getting on these planes and ramming them into skyscrapers.

And Obama Osama's got to get in on the act too -

Osama bin Laden's word choice in the latest audio message attributed to him is seen as a "possible indicator" of an upcoming attack by his Al-Qaeda network, a US monitoring group warned Sunday.

IntelCenter, a US group that monitors Islamist websites, also said that manner of the release and the content of the message showed it was "credible" that it was a new release from the Saudi extremist.

Never you mind the fact that the White House can't vouch for the tape's authenticity.

It's nice to know that if someone so much as breaks wind in an airplane, we'll have the ability to stop them before anything happens. Or do we really do that anymore?

The banksters need to cover their tracks, they need a distraction. I wouldn't be surprised to see a building with all sorts of documentation get targeted.

Update: 1:00 PM - Even more saber rattling going on:

Report says Al-Qaeda still aims to use weapons of mass destruction against U.S.

New Bin Laden Image Taken From Spanish Lawmaker

John Stewart on Scott Brown

The Daily Show With Jon Stewart	Mon - Thurs 11p / 10c
Indecision 2010 - The Re-Changening
www.thedailyshow.com
Daily Show Full Episodes Political Humor Health Care Crisis

A Perspective...

Critical - Ron Paul's State of the Republic Address

+

Bears Return!

The bears are back in session as the Dow hemorrhages massively. Let's recap - S&P down Dow down 2.1 % for the day and a massive 5.6% from it's high this week.

Last June I posted the following -

This is not a recession, it is a depression. And a massive one at that. We are not at the bottom, we are on gaining momentum for the next plunge down. If you thought the last drop was bad, this one is going to strike fear into the hearts of men everywhere. The Dow will push through the last market low of 7,392.27, then 6000 and after that 3000.

Things are NOT going to get better, they are going to get significantly worse overall. It may be true that we might see some small respites here and there as investors hope for a resurgence in the market but overall we are in for one serious ride.

The next level of support is in the 10,000 - 10,100 range which should offer a brief rally for psychological reasons. But there are no hard numbers to justify this level of the Dow. Expect to see more resistance around 9,800, 9,500 and 9,100 as it gives up these ill gotten gains.
The market is broke, everyone is just now realizing this. Got gold?

Scott Brown Wins a Senate Seat, Another Big Government Face

According to On the Issues:
Positives include -

• No new regulation of the financial markets. (Jan 2010)
• 15 percent across the board tax cut. (Jan 2010)
• Permanently eliminate the estate tax. (Jan 2010)
• Voted NO on municipal meals tax, in addition to state tax. (Jun 2003)
• Voted NO on raising income tax to 5.95% to offset deficit. (Apr 2003)
• Supported $200K reduction to blind job program. (Jul 2003)
• Opposed $900K for disability & mentoring aid. (Jul 2003)
• Voted NO on earmark for women's substance abuse program. (Feb 2004)
• Opposed federal school breakfast supplement. (Jul 2003)
• Voted NO on 3-year moratorium on charter schools. (May 2003)
• Vouchers for public, private, or religious schools. (Nov 2002) - As long as the Feds stay out.
• Opposes cap-and-trade system, but renewables OK. (Jan 2010)
• Campaign disclosure but no donation limits. (Nov 2002)
• Voted NO on Constitutional call for universal health care. (Jul 2004)

Here are some issues I view a problematic

• MA already has health bill; don't impose new federal bill. (Nov 2009)
• Ensure access to basic health care, including state funding. (Nov 2002)
• Supports enhanced interrogation techniques. (Jan 2010)
• No constitutional rights for enemy combatants. (Jan 2010)
• Culture of patriotism; vigorous homeland defense. (Sep 2009)
• Supports 30,000 more troops in Afghanistan. (Jan 2010)
• Terrorists are not gone from Afghanistan. (Jan 2010)
• Finish the job in Afghanistan: keep Taliban and al-Qaeda out. (Nov 2009
• Concealed carry ok; but licenses & background checks ok too. (Nov 2002)
• Promote increased use of alternative fuel technology. (Nov 2002)
• Voted YES on defining marriage as one man and one woman. (Feb 2004) - This is not a Federal issue.
• No cap on bankers' salaries. (Sep 2009) (For those who take at others expense, you have to pay the piper)
• Abortions should always be legally available. (Nov 2002)
• Support legalized abortion, but not partial-birth abortion. (Jan 2010)

In a victory speech, Brown said the seat belongs to no one but the state's voters.

"This is the people's seat," Brown said to a cheering crowd.

Yes, yes it is Mr. Brown. And you would do well to remember that fact in the future.

The Real Effect

Fool me once, shame on you.

In 1994, Republicans surged into power with the Contract With America amid promises of shrinking the size of government, promoting lower taxes, greater entrepreneurial activity, tort reform and welfare reform. While one can quibble that this was achieved to a degree, the overall net effect during this time was the exact opposite. Government largess grew exponentially, myriads of wars were started, Federal departments were created and liberty was slashed to a nub. Towards the end of 2008, all that remained were entitled carcasses of what was in effect "dead" politicians.

Just like the ring of power, Republicans seized the power and then the power seized them. This is why we the Democrats were able to route the Republicans in 2008 amid "Hope and Change".

Now in 2010 we have individuals that are at best, moderates, clothing themselves in liberty dress in an attempt to garner votes. And we think this is going to change anything? Hardly.
The new Tea Party, 9/12, Turner, Hannity, Limbaugh, Petraeus, Palin, Beck, O'Reilly and Brown; these individuals are all Benedict Arnolds to the cause of liberty and will sell you down the river if the right situation arises.

Webster Griffin Tarpley opines -

...Massachusetts voters settled for second best in the form of cultural populism as represented by the Republican Scott Brown, whose main claim to fame was that he drove a truck with 200,000 miles on it. That is the demagogic essence of cultural populism, the only kind of populism of which Republicans and reactionaries in general are capable.
The boiling rage of the American electorate is directed against the two-party consensus which has made possible the transfer of between $25 and $30 trillion of US government money — Treasury, Federal Reserve, Federal Deposit Insurance Corporation, etc. — in the form of the TARP or bailout, while the official rate of unemployment and underemployment approaches 18%.

Brown is a show pony and more precisely he's what the people think they want, not what they need. The Republicans will not relinquish the ring of power, they will embrace it and lose their integrity in the process.

Fool me twice, shame on me.


UPDATE - Well, that didn't take long.

Ron Paul "WE NEED TO TAKE OUT THE CIA"

Ron Paul: Use Geithner to Impeach Obama

December deficit nearly doubles

By Blake Ellis, contributing writerJanuary 13, 2010: 2:33 PM ET

NEW YORK (CNNMoney.com) -- The U.S. government posted a deficit of $91.9 billion in December, nearly double the shortfall of a year earlier and marking the government's 15th straight month in the red, the Treasury Department reported Wednesday.

The shortfall brings the total deficit for the first quarter of fiscal year 2010 to $388.5 billion, up from $332 billion during the same period last year.

It was the second consecutive December the government spent more than it took in. In December 2008, the deficit was $51.8 billion.

While December's deficit was less than the $120.3 billion in November, that's no reason to celebrate. The government typically rings up a surplus in December as year-end bonuses boost high individual withholding and as companies make quarterly income tax payments.

The deficit remained high in the first three months of the fiscal year because while spending was down by $3.6 billion from the same period last year, tax revenue fell even more, dropping by $59.7 billion as individual income and payroll taxes declined.

Interest paid on the debt in December was $104.6 billion -- 34% of federal outlays for the month.

"No surprises, the government obviously continues to run a very large deficit," said Gus Faucher, director of macro economics at Moody's Economy.com. "But that's necessary as a response to the recession and the financial crisis."

The Treasury estimates the annual deficit will climb to $1.502 trillion for the full fiscal year 2010, up from $1.42 trillion in 2009.

Debt ceiling: For the long term, many economists are less concerned about monthly and annual deficits, focusing instead on the enormous accumulation of national debt and its rapid upward trend.

"We want to have a big deficit now because that's helping to stimulate the economy, said Faucher. "The concern is about the longer run."

That's especially true after Congress raised the debt ceiling again. The new limit for the amount of debt the Treasury is allowed to have, passed in the last days of 2009, was set at $12.394 trillion, up $290 billion from the previous level of $12.104 trillion. Depending on the state of the economy, this should provide the government relief until mid-February.

As of Monday, the country's total public debt was $12.285 trillion, $109 billion below the debt limit.

Maine may seize cottages to cover Medicaid

AUGUSTA — Maine's budget proposal would allow jointly owned camps or summer cottages to be seized to help reimburse the state for Medicaid expenses.

Many Maine families have owned and maintained camps or summer cottages through joint tenancy deeds, which permit them to keep the property within their families.

But as Maine Public Radio reports, the state would get the power to seize those properties in some cases. Health and Human Services Commissioner Brenda Harvey says the change would allow the state to be reimbursed for its costs if one of the property owners uses Medicaid funding to pay for long-term care.

Under present law, those properties can't count as an asset toward their expenses.

HOT: S & P Downgrades California

S&P has downgraded State of California debt to A- from A.

This will make raising money for the state significantly more expensive, and is likely to force some funds that can only hold A paper or better to sell California debt.

US Defaulting on Chinese Debt?

US to Lose It's AAA Rating?

Because I have called and you refused,
I have stretched out my hand and no one regarded,
Because you disdained all my counsel,
And would have none of my rebuke,
I also will laugh at your calamity;
I will mock when your terror comes,
When your terror comes like a storm,
And your destruction comes like a whirlwind,
When distress and anguish come upon you.
“ Then they will call on me, but I will not answer;
They will seek me diligently, but they will not find me.
Because they hated knowledge
And did not choose the fear of the LORD,

Proverbs 1:24-29

From the Telegraph -

Fitch Ratings has issued the starkest warning to date that the US will lose its AAA credit rating unless acts to bring the budget deficit under control, citing a spiral in debt service costs and dependence on foreign lenders.
Fitch expects the combined state and federal debt to reach 94pc of GDP next year, up from 57pc at the end of 2007. Federal interest costs will reach 13pc of revenues, meaning that an eighth of all taxes will go to service debt. Most fiscal experts view this level as dangerously close to the point of no return for debt dynamics.

Ever wonder how things got to this point? From Bloomberg -

“Dec. 16 (Bloomberg) — Goldman Sachs Group Inc., which got $10 billion and debt guarantees from the U.S. government in October, expects to pay $14 million in taxes worldwide for 2008 compared with $6 billion in 2007.

The company’s effective income tax rate dropped to 1 percent from 34.1 percent, New York-based Goldman Sachs said today in a statement. The firm reported a $2.3 billion profit for the year after paying $10.9 billion in employee compensation and benefits.

Goldman Sachs, which today reported its first quarterly loss since going public in 1999, lowered its rate with more tax credits as a percentage of earnings and because of “changes in geographic earnings mix,” the company said.

The rate decline looks “a little extreme,” said Robert Willens, president and chief executive officer of tax and accounting advisory firm Robert Willens LLC.”

Now compare this with Ed Brown's reported tax dodging sentence of 37 years and ask yourself who the real criminals are?

401Ks Targeted?

Wha, wha, whaaaaa? From Bloomberg -

The U.S. Treasury and Labor Departments will ask for public comment as soon as next week on ways to promote the conversion of 401(k) savings and Individual Retirement Accounts into annuities or other steady payment streams, according to Assistant Labor Secretary Phyllis C. Borzi and Deputy Assistant Treasury Secretary Mark Iwry, who are spearheading the effort.

Senator Herb Kohl, chairman of the Senate Special Committee on Aging, proposed legislation on Dec. 16 to require fund companies to do more to ensure 401(k) options are appropriate for workers. The Wisconsin Democrat cited reports that target- date funds designed for people retiring in 2010 invested in high-yield, high-risk corporate bonds.

The Real Effect
No, way! Who could have seen that coming?!? -

The long and short is they are bleeding the real assets out of the United States and passing them into foreign control. Make no mistake, they will bleed this country dry. Savings, checkings, 401K, gold, assets, they want it all and will not stop until they get it.

Israeli warplanes violate Lebanese airspace, fire at areas near borders

Military and Security 1/7/2010 6:25:00 PM

BEIRUT, Jan 7 (KUNA) - Israeli military aircraft flew over Lebanese airspace and fired at areas near the southern borders between Israel and Lebanon, a Lebanese security source said on Thursday.
The aircraft flew for more than an hour over the northern part of the occupied Syrian Golan Heights, Shebaa Farms, and south of Mount Hermon, sources said, adding that two other planes flew over Bint Jbeil village and circled over more than one town.
On the other hand, the Lebanese army and the United Nations Interim Force in Southern Lebanon (UNIFIL) implemented joint patrols on the Lebanese borders along the Blue Line from the farms and Naqoura for five days in response to the Israeli actions. (end) ok.hs KUNA 071825 Jan 10NNNN

Economic Redux

Zero Hedge brings up that the US was close to a technical default -

On December 24, the Senate passed a vote by a razor thin margin (with not a vote to spare) to raise the Federal debt ceiling from $12,104 billion to $12,394 billion. The actual debt ceiling increase took effect on December 28. And as the chart below shows, the Treasury’s cash flow projections were spot on: 3 days later, and the debt subject to limit surged to $12,254, a jump of over $200 billion in 2 days, and a whopping $150 billion over the old debt ceiling.

Three days is all the buffer the administration’s reckless spending spree has afforded this country to avoid bankruptcy. Had one more Democratic vote dissented from the stopgap measure, the US would now be in technical default.

From the Wall Street Journal, bankruptcies rage -

Overall, personal bankruptcy filings hit 1.41 million last year, up 32% from 2008, according to the National Bankruptcy Research Center ...

American Thinker reports the following -

There are only three possibilities with respect to meeting 2010 funding needs:

* The Fed continues its QE beyond their planned cessation in March 2010.
* The Fed raises interest rates to levels that would attract the capital necessary to fund government operations via conventional credit markets.
* No Fed action is taken. That would cause the government to default on some of its obligations.

Treasuries are sliding -

Treasuries were the worst performing sovereign debt market in 2009 as the U.S. sold $2.1 trillion of notes and bonds to fund extraordinary efforts to bolster the economy and financial markets. Investors in U.S. debt lost 3.5 percent on average through Dec. 30, according to Bank of America Merrill Lynch indexes, the biggest annual slide since at least 1978.

States can't squeeze blood from a rock -

New US census data show that state and local government tax revenue continued their year-long plunge in the third quarter, falling by 7 percent from the same period last year. In response, governments are cutting spending on social programs, infrastructure and education, and are laying off or cutting the wages of government workers.

From the San Francisco Chronicle:

California's political leaders, who are facing the daunting challenge of closing an estimated $20.7 billion budget deficit this year, are looking to Washington for help. Just don't call it a bailout.
Senate President Pro Tem Darrell Steinberg, D-Sacramento, said he plans to head to the nation's capital "early and often" seeking federal assistance. Gov. Arnold Schwarzenegger already has put the federal government on notice that he wants billions he says the state is owed.
Steinberg said he wants a "dynamic partnership" between the federal government and the states, led by California, to spend money for infrastructure.
"No one is looking for a bailout. We're looking for an investment," he said, adding that the state needs to "fight" for more money.
"It's in the national interest because California is an economic engine, and if we continue to be bogged down in deficits that are largely the result of the recession, then the country is going to have a hard time recovering," he said.
California already has received just over $8 billion in federal stimulus dollars that helped the state close the budget deficit last year. On Friday, Schwarzenegger will release his initial budget proposal for the next fiscal year, and the Legislative Analyst's Office already has called on state leaders to "aggressively seek new federal assistance" to help close the projected deficit.

The Real Effect

Several things merit mention.

1. Notice the "to big to fail" mentality?
2. They already spent $8 billion in stimulus.
3. They are now looking at $21 billion gap?

Alright, let's do the math $21 billion is biiiiiiiger than $8 billion so the problem is getting...(better, better, better!)...
WORSE!

States are addicted to spending (Sugar, sugar, SUGAR!!!), citizens are addicted to handouts, corporations are addicted to bailouts.

How can we, as a nation (I say it even though I despise collectivist thinking) begin to compete when we embrace a national policy of "Non-responsibility". Did the past communist failures of the 20th century, which arguably claimed more live than the bulk of any other tragedy, not matter to anyone? Have we learned nothing? Have our forefathers died in absolute vain?!?

Yet it is these same individuals who will quickly foist the American flag upon the petard of their ignorance and claim that if we fail to act, we are sentencing the Republic to certain demise.

No sir, you ensured that death by your reckless actions years ago.