Thursday, March 03, 2011

The Dollar Is Publicly Trashed

After China's left hook to the jaw last night, the Wall Street Journal finds its place at the party -

Chile and Korea are hardly an anomaly: Fully 85% of foreign-exchange transactions world-wide are trades of other currencies for dollars. What's more, what is true of foreign-exchange transactions is true of other international business. The Organization of Petroleum Exporting Countries sets the price of oil in dollars. The dollar is the currency of denomination of half of all international debt securities. More than 60% of the foreign reserves of central banks and governments are in dollars.

The greenback, in other words, is not just America's currency. It's the world's.

But as astonishing as that is, what may be even more astonishing is this: The dollar's reign is coming to an end.

I believe that over the next 10 years, we're going to see a profound shift toward a world in which several currencies compete for dominance.
 The Real Effect
Long time readers will remember the following from August 5, 2005
Look for an increasing economic slide of the economy in the 2nd half of 2005 that causes the dollar to slide even further against the Euro setting the stage for a Union currency proposed to be called the Amero.
Now we can bicker over details, but the contraction did start happening as indicated, the dollar slid against the Euro and is now in trouble. But just to drive home the point, I present the following evidence -

  1. I believe that the globalists are attempting to strip the American Economy by devaluing the dollar, weakening the American military through multiple prolonged conflicts and the removal of what was outstanding American influence over many countries in order to prepare us for a Global Union.
and in part of a truly prolific post, the following
So what happens next?

 So here we stand, on the edge of the precipice, looking down and debating our future. Suddenly, things are looking pretty bleak. The small brush fires of yesteryear are combining into raging infernos today, threatening our well being. The blood is in the water and other nations are watching. Will we survive?

Wednesday, March 02, 2011

Scott Horton to Obama Butt Out of Libya!

Gun Rights - Do They Exist?

Of course it's not for confiscations. Yet -
The Illinois attorney general says state police must release the name of everyone in the state who is authorized to own a gun.

Illinois state police determine who gets a Firearm Owners Identification card, which allows people to own guns. The police have always kept the list private.

But Attorney General Lisa Madigan's public access counselor released a letter Monday night saying the information should be public.

The Associated Press had requested the list of FOID cardholders but state police said that would violate the privacy of gun owners. The attorney general's office ruled that argument invalid. State police officials have not said whether they will comply with the ruling.

There are Republican-sponsored bills in the Illinois House and Senate that would prohibit disclosure of the information.
The Real Effect
Perhaps Illinois is aware of the 2nd amendment, that guarantees a right to own firearms?
This is generally how liberty erodes, not at the barrel of a gun, but at the end of a pen stroke. Note the slide into tyranny -
  • Introduction of Firearm Owners Identification card - Permits people to have an already permitted item.
  • Illinois state police determine who gets a Firearm Owners Identification card - Control on the right. Of course everyone gets one, until they don't. This shifts the control from the People, to the Authorities.
  • Attorney generals office ruled that argument invalid. (Regarding the FOIA) A bureaucratic office makes one decision that changes everything. Because, you know, they're sooo much smarter then us.
It doesn't take a psychic to see what comes next, once the list is released, some entrepreneurial group will find all the horrors of legally licensed gun-toting individuals. No doubt, there will be some doozies. Then, the clarion call, from a NGO of course, will resound across the land. 'These individuals can no longer be permitted to own guns! Our lives are in danger!' Then the political pressure hits and wham-o, confiscation. Not full confiscation mind-you, we're not that draconian. Yet.

Tuesday, March 01, 2011

Gerald Celente - Oil - Interest Rates - Inflation - Clowns running Washington

Libya - Because What the US Really Needs Is ANOTHER War

Like the exposed fraud that blames everyone else in a futile attempt to cover up his own misdoings -
US Special Forces have reportedly landed in Libya to train anti-Gaddafi rebels as a western-backed coup d’état in the oil-rich nation nears, with British and French “defense advisors” also arriving to set up training bases in the rebel-controlled eastern region of the country.

According to a report in the Pakistan Observer, hundreds of special forces personnel from the US, Britain and France arrived on February 23 and 24 in “American and French warships and small naval boats off Libyan ports of Benghazi and Tobruk.”

The article states that the report was confirmed by a Libyan diplomat in the region, who said that “The three Western states have landed their special forces troops in Cyrinacia and are now setting up their bases and training centres,” in a bid to bolster rebel forces resisting Gaddafi’s militia in the surrounding region.

“The Western forces are reportedly preparing to set-up training bases for local militias set-up by the rebel forces for an effective control of the oil-rich region and counter any push by pro-Qaddafi forces from Tripoli,” states the report.
The Real Effect
Training bases? Oh yeah, that won't devolve into a "peacekeeping" mission complete with lucrative oil contracts to uh, compensate us for our generosity. Of course there are scores of problems with this mentality invasion:
  1. We absolutely cannot afford this.
  2. This is none of our business.
  3. This will most likely turn into a catalyst for a world war. (Think Muslim vs. Christian)
  4. The Libyans are doing just fine taking care of this war themselves.
  5. Aren't we in enough wars already? Afghanistan, Iraq, Pakistan, Yemen, etc...
As if this wasn't enough, we get the usual policy hacks spitting out their support for Empire Building, liberty in Libya. They include the usual PNAC bunch, the same group that gave us 911 -
  • Paul Wolfowitz
  • Elliott Abrams
  • Marc Thiessen
  • Peter Wehner
  • John Hannah
  • William Kristol
  • Robert Kagan
  • Dan Senor
  • Eric Edelman
Yes gentlemen, how's about we secure our border?

The truth of the matter is that this is the same old Ordo ab Chao policy that created most of the messes that we are in today and will create new ones for future interventions. Of course the IMF will need a piece too, to help with the rebuilding and all.

Now, imagine for a second that Iran invaded New Hampshire because they were struggling to be free. Would the rest of the United States stand for a foreign invasion by a religion that is hostile to our own? Further, why should the Arabs tolerate our presence there?

One last point, with Rahm Emmanuel now in charge of Chicago, I fear that a false flag will be staged there to justify an all out Christian jihad coming into 2012. Of course time will tell on that one.

The pieces are all connected, you just have to look long enough to find them all.

Friday, February 25, 2011

Nullification Is Making Some Waves

Montana shows the States what to do...

Their state would be a place where officials can ignore U.S. laws, force FBI agents to get a sheriff's OK before arresting anyone, ban abortions, limit sex education in schools and create armed citizen militias.

It's the tea party world. But not everyone is buying their vision.

Some residents, Democratic Gov. Brian Schweitzer and even some Republican lawmakers say the bills are making Montana into a laughingstock. And, they say, the push to nullify federal laws could be dangerous.
"We are the United States of America," said Schweitzer. "This talk of nullifying is pretty toxic talk. That led to the Civil War."
The Real Effect
This is a debate that has raged fiercely since the beginning of this union. Are we a nation or a Republic? Are we Federal or State? Note Schweitzer's statement above, note the term "United" specifically. We are the united States of America not the United States. One is a Republic, one is a corporation. One is free, one is slave. The concepts are mutually exclusive and not compatible.

In practice we are the abomination, a Federally managed, bought and paid for, socialistic nation. In law, we are the Republic of the united States, a dream that not only dared to exist, but succeeded in actually securing men's rights. So began our country with these words -
We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. — That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, — That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government...
This is the lawful premise behind nullification. It states to the government, we have the inherit right to fire you. You are our employee, not our master. We make the rules. If you violate this, we will overturn it. And if you try to cling to your position, we can forcibly remove you. That is what the situation in Montana is about. The people that live there, setting into place their own government based not in D.C., but in Montana where it rightly belongs.

Thursday, February 24, 2011

TSA Harassing and Searching a 9 Year Old AFTER Train Trip

Wisconsin, Watch Yourselves. There Are Sharks Among the Badgers

People have a natural proclivity towards rationalization and complacency, constantly looking not for the moral way through a problem, but whatever is easiest. It is to this end that I wrote the following -
Keep your eyes open folks and get to the bottom of every story. These are the times in which the world's "rules" are rewritten by the victors of the upcoming war. And if you think the insanity stops there, well, you better rethink your position.
To be sure, there are far larger fish that can be fried then some of the issues that are currently being discussed in this bill. For instance - the Comprehensive Annual Financial Reports. The Governor is crying poverty and to this I say - take a principled stand and open up the books. Let's see exactly what Wisconsin has in way of property. I bet we could find some money in there to either appropriate or cut! It is this double set of books which continually blinds us to the true nature of fiscal status in this great state.

To the 'right', stop being used, Yes we need to control spending, but where are you guys on the atrocities that are being committed in the name of the state like the aforementioned CAFR. Your blind indifference to welfare recipients above anyone that makes $50,000 a year is stunning. The banks are robbing the people not only blind, but dancing on their corpses as well.

To the 'left', quit acting like tools. You are also being used.  This is the people's hard earned money that you're gleefully flushing down the toilet with your half-baked ideas and insatiable mantras. You are not bankrupting the elite, thanks in part to the 'right', you are destroying your fellow citizens. And you seem incapable of dealing with one simple question, How do you pay for all of this?!?

According to reports , Governor Walker has prepared the National Guard.

We can ask ourselves, why would he do this? To the extent that we examine protest violence the answer that question I present the following video of a teacher melee in Oaxaca, Mexico.


To claim that Walker would be talking to the Guard in an attempt to 'incite' the crowds is sheer absurdity. Surely last year's European riots are not lost on the Governor . One only needs to review the report of protesters showing up at his personal home to realize that this is probably a prudent move. After all, if prison guards failed to show to work and the inmates escaped, who would we blame?

The unresolved question at this point is what will the governor do with the Guard. For that, we cannot know until such a time as he actually deploys them. Sure, they can be used to repress freedom, and as far as I can see, this is not the case at this point.

To the teachers that claim this is about the children I call an unequivocal shenanigans. True, there are those that do work outside of their normal duties. So what? Most of us now do such things on a regular basis. You are an employee. You were hired to provide a service to the taxpayer, namely to educate the children. A task you are failing in miserably. It is a natural consequence to this.

As a matter of fact, it is the opposition which has now refused to participate in the legislative process to which they submitted their resumes.

Good for them I say, to take such a principled stand surely is a sign of outstanding character. And with baited breath we all await your resignations. Along with the teachers that lied and called in sick.

Tuesday, February 22, 2011

1 in 4 Counties Dying Off

What, population and births matter?!? -
Hit by an aging population and a poor economy, a near-record number of U.S. counties are experiencing more deaths than births in their communities, a phenomenon demographers call "natural decrease." Years in the making, the problem is spreading amid a prolonged job slump and a push by Republicans in Congress to downsize government and federal spending. 
In all, roughly 760 of the nation's 3,142 counties are fading away, stretching from industrial areas near Pittsburgh and Cleveland to the vineyards outside San Francisco to the rural areas of east Texas and the Great Plains. Once-booming housing areas, such as retirement communities in Florida, have not been immune. West Virginia was the first to experience natural decrease statewide over the last decade, with Maine, Pennsylvania and Vermont close to following suit, according to the latest census figures. As a nation, the U.S. population grew by just 9.7 percent since 2000, the lowest decennial rate since the Great Depression.
The Real Effect 
I find it very entertaining talking to those who would decry those like the Duggars of the world as being "selfish". When viewed at a micro level, many of these individuals lead lives of sacrifice, personal responsibility and teach their children to do the same. True, there are some mooches in the system, but when you really start parsing the numbers even the mooches are taking far less then some of the bureaucrats are pilfering from us.

Even more revealing is the short sighted nature of these individuals and absolute inability to use a calculator to comprehend where the "wealth redistribution" and "great society" programs will end. heaven forbid someone actually looks inside of where the bulk of the "green movement" will land the human race as a whole. Dead.

One only needs to look at Japan's economy over the last 20 years to get a real good idea of what's in store for the United States. Especially if you remove the immigrant population from the numbers.
Behold, children are a heritage from the Lord, the fruit of the womb a reward. Like arrows in the hand of a warrior are the children of one's youth. Blessed is the man who fills his quiver with them! He shall not be put to shame when he speaks with his enemies in the gate.
Psalm 127:3-5 ESV

Monday, February 21, 2011

Wisconsin Union Protest: Myth vs. Fact

2011 Predictions - Off to a Strong Start

We are off to a strong start with our 2011 predictions here at The Real Effect -

Commodities -
Actual Inflation is rampant and MASSIVE (+10-20%)
So far commodities have been on an absolute tear and might outgain 20%.
Oil becomes a political issue again It will easily top $100 a barrel and probably aim for $150 again. 

With oil building support for the last 3 months I was worried I was going to be late to the party on this one, however after officially breaking out just after the 1st of the year, some of the annualized gains so far are looking as high as 60%! In some ways, it seems to be driven by nothing but politics.

Silver
Silver becomes especially difficult to physically source as the Comex cracks and demand goes up. (Perhaps hitting $40 in Q1, then cooling down until winter)
Again, this commodity is on an TEAR, hitting $34 on Monday with an absolute crush on the silver shorts.
Food becomes more expensive, shortages continue.
THE story behind the Egyptian riots has been food, driven in part by the speculators.

  • State governments stagger
    • Deficits swell as many budgets were predicated upon the "summer of recovery" which turns out to be less of a recovery and more of a flat-line.
Wisconsin leads the way as it becomes obvious that "Houston, we have a problem." I could continue, but I believe that this will suffice for the time being.

Looking forward, it will become critical that each issue is parsed ad nauseum as the devil will continue to prowl in the details. If we do not do our due diligence, all we accomplish is to trade one tyranny for another.

For instance, in the current Wisconsin situation, ignorance not only abounds, it seems to be the rule. Taking the sides into consideration in general:
  • "Pro-Teacher" side -
    • Cannot explain "collective bargaining" to anyone
    • Feel that it is a "right", not a legislative grant.
    • Believe that the current bill is dealing specifically with teachers, which it is not. It is dealing with state workers.
    • Cannot grasp the concept of cost or what the tax base is doing to the employment picture.
  • "Pro-Cut" side -
    • Refuses to look at corporate welfare as just that.
    • Is ignoring malfeasance and crime on the part of bankers and executives.
    • Believes in just as much "big government" as the other side. (The number of individuals that I have heard support "Drug testing welfare recipients (The poor)" is stunning.)
  • "Pro-Liberty" side, the issue that neither side is really considering
    • Comprehensive Annual Financial Reports vs. Budget
    • The cause of Liberty - REPEALING MOST TAXES, excessive "policing" (Most revenue generation), "Licensing", strip searches at airports, Wars, a sound monetary policy, ya know things that affect ALL of us.
In short, we have a lot of work to do.

Friday, February 18, 2011

Mother of 3 Arrested for Taking Pictures of Tourist Attraction at Airport

A mother of three is "Gitmoed" -
Nancy Genovese stopped her car on the side of the road across the street from the airport in an area that is open and accessible to the public, and crossed over the road to the airport entryway that is also open and accessible to the public to take a picture of the helicopter display. While still in her car, she took a picture of the decorative helicopter shell with the intention of posting it on her personal “Support Our Troops” web page.

As Nancy Genovese was preparing to drive away, she was stopped and approached by Robert Iberger, a lieutenant with the Southampton Town Police. Lieutenant Iberger demanded to know why she was taking photographs. Nancy showed the lieutenant her camera, but Lieutenant Iberger grabbed her camera and handled it “without care”. In an attempt to prevent the lieutenant from damaging the camera, Nancy removed her memory card, which Lieutenant Iberger confiscated. To date, Nancy’s memory card still has not been returned to her.
During the remainder of the six hours that Nancy Genovese was forcibly detained on the side of the road, she was taunted, verbally harangued, threatened, belittled, abused, humiliated and harassed by members of the Suffolk County Sheriff’s Office. For example, Deputy Carlock repeatedly referred to Nancy as “a right winger” and “tea bagger”, and threatened that they were going to arrest her for terrorism to make an example of her to other “tea baggers” and “right wingers”.

 Her story goes on to include - Interrogation by Federal and local officials, arrest, injury, forced drugging, harassment and other such surreal moments. Well worth the read.

The Real Effect
This is exactly what the war on terror is and is going to become. (See Patriot Act sec 802) For those that think a Police State is necessary to secure freedom, look at what happens! Who will protect you from the protectors when they abuse their power?!? And  exactly what is so difficult about securing a proper warrant!? Are you arguing that this "menace to society" would have gone wild?? If so, why grant this person bail!?!

No! The far greater threat to our liberty and safety comes not from some obscure religious sect in another country, but from our very own brethren who sell us to Pharaoh so that they can have a cush job with retirement benefits.

Wednesday, February 16, 2011

Ron Paul: Congress Won't Stop Spending until the Dollar Fails

Israel Getting Awfully Twitchy

It's like they're expecting war or something...
Two Iranian warships planned to sail through the Suez canal en route to Syria on Wednesday, Israel said, calling it a "provocation" by the Islamic Republic.

The Iranian naval contingent described by Foreign Minister Avigdor Lieberman would pose no significant military threat to Israel but could spell the closest-ever encounter by the forces of the two old foes, who are geographically distant.

And they're checking out Lebanon again -
Israel ratcheted up its activities close to the Blue Line Monday, violating Lebanese airspace, according to reports from the south.

Reports also suggested Israel was bolstering its border patrols in the region from which two of its soldiers were abducted by Hezbollah in 2006, sparking the devastating month-long war which followed.

“Israeli war drones have been flying over Nabatiyeh, Iqlim Al-Toufah and Khiyam, all in south Lebanon, since 11 a.m. Monday,” the National News Agency reported.

A spokesperson for the United Nations Interim Force in Lebanon told The Daily Star that UNIFIL “had not reported any violation” of Lebanese territory by Israeli patrols in recent weeks.
The Real Effect
Trust but verify must be the preferred method of operation in this day and age. There is far too much propaganda flying around in all directions to make snap judgments.

Regarding Israel, yes the warships are close. What would Israel have Iran do? Sail around Africa? Using a global transit route is not an act of provocation anymore than Israel's use of the route would be. Silly me, thinking that people would be reasonable about this.

It would seem that the truth of the matter is that the hyper-nationalists in Israel are like the kid in the back seat of the car screaming about their side of the seat. Funny, those kids are always smacking the other kid as soon as Mom's eyes are turned away...

Tuesday, February 15, 2011

What Drives Americans to Protest?

Wisconsin National Guard Preps For Worker Unrest After Governor Unveils Emergency Budget

Trouble in Badgerland -
Wisconsin Gov. Scott Walker, a Republican, unveiled an emergency budget proposal Friday to deal with the state's growing budget woes. Wisconsin has a $137 million deficit this year, and faces a projected $2.9 billion budget shortfall for 2012 and 2013.

Under Walker's plan, public employees would lose all of their collective bargain rights, except a limited negotiation of wages. State workers would also have to contribute more to their pension and health care benefit plans.

Unions erupted in outrage as they learned about Walker's proposal. The Governor told Milwaukee Public Radio that he has briefed the Wisconsin National Guard to prepare them for any worker unrest today.
The Real Effect
Ah, emotions are running high so people are freaking out. Let's take this piece by piece shall we?
What do we know so far?
  • Taxes in Wisconsin are ASTRONOMICALLY high and under the previous administrations, they kept going up. This is not disputable, as to do so would indicate that you think no level of taxation is too high. Property taxes are atrocious, fuel taxes are abysmal, etc, etc...
  • Services rendered versus prices paid is abysmal. Simply put, we, as taxpayers are not getting what we are paying for.
  • The solution to these issues is NOT more taxation, it is less.
  • THE largest contributor to these costs are public employee costs, specifically pensions.
  • Many of these pension deals are sweetheart kickback deals. Some individuals went to PRISON for these deals.
  • Public sector employees have shown an absolute disdain for private sector's ability to pay. They view the public as a turnip to be squeezed. (Case and point is the Racine Public School District)
  • Cold-hard math dictates that this pace of economic spending CANNOT continue.
It is in this environment that we find ourselves today. The public is DEMANDING less taxation. So where do we find ourselves in light of this article?
  • Walker is dealing with both issues. (Over-taxation and public sector demands)
  • Because some public sector pay is too high, it is going to get cut. (God forbid that the unions should have to pay into their health care or pensions.)
  • No one ever likes getting a pay cut, no matter how much they make. The unions WILL protest and might get violent.
  • Walker appears to be preparing for that eventuality. He has not set up checkpoints, he is not firing on people and hasn't even mobilized the guard. Until he starts abusing the power, I reserve judgment on how he is going to use the guard.
At this point, I do not have an opinion on the union losing its collective bargaining rights. Perhaps I will flesh that out later. Also, it wouldn't hurt to review CAFR records either.

Long and short of the article is that in my opinion, the public unions are screaming foul about a situation which does not rise to the level of protests especially when viewed in light of how the unions have been treating the taxpayers these last 50 years. 

Friday, February 11, 2011