Archives for: May 2007
Federal Deficit Exceeds $3.5 Trillion Per Year
Many of you are reading this blog because you already know the financial catastrophe awaiting the federal government and those dependent upon it. However, for those of you who've not been exposed to the truth yet, here's the reality:
What's the real Federal Defici?
Simply put, the federal government is flat bankrupt and the world's central banks are beginning to figure that out. It is not a matter of IF America will experience hyperinflation, but WHEN. China and the United Arab Emirates are just two examples of countries whose central banks are now diversifying their reserves away from U.S. Treasuries ("dollars"). The only thing preventing total collapse is that if these nations were to quickly liquidate their treasuries they would shoot themselves in the foot by devaluing their very own reserves: the treasury bonds themselves. Consequently they're attempting to get value out of their treasuries before the "run on the banks" begins. Make no mistake that with the world awash in dollars and with Washington continuing $3.5+ trillion annual deficits that "run" IS COMING! If you think it can't happen then consider two things: 1) history is replete with fiat currencies that have ended in disastrous hyperinflation (and I can't think of one successful fiat currency); and 2) our Federal Reserve Notes (FRNs) have only been off the gold standard completely since 1971 - a result at that time of international distrust of our spending habits and financial condition, which have only worsened for the federal government over the past 36 years - only 36 years of a 100% fiat currency, so understand that the dollars in your wallet are terribly unproven and are not the dollars of our fathers, grandfathers and all those Americans who preceded us. We're in a terribly dangerous "experiment" that ended badly with "Continentals" in the 18th Century, just as badly with 19th Century Confederate paper money in the CSA, and would have been even uglier with "Greenbacks" had Congress not eventually kept its promise to redeem them with specie.
To put the federal deficit in perspective consider that the total annual revenue of the federal government is currently $2.7 trillion. Therefore, federal spending amounts to more than $6.2 trillion (when accrued liabilities are added in) creating a deficit of more than $3.5 trillion. This is proportionate to a family whose income is $50,000/year, but whose expenditures are $114,800. At such rates of spending, how long would it take creditors to deny the extension of credit to such a family? How long until that family declares bankruptcy and defaults on its debt? Not long at all of course. The difference with the federal government is that it can run the "printing presses" rather than declare bankruptcy thereby fulfilling payment of its debt obligations with now worthless paper - hey, they owed you 100,000 FRNs, they "printed" them, and you got them, what's your complaint? The complaint is the hyperinflation caused by the "presses" running nonstop now means your 100,000 FRNs won't buy a latte at Starbucks!
Indeed, fiat currencies know only one end: financial ruin. Our currency is only 36 years in the making and financial ruin is still to come; just as certain as the sun rising in the east, the federal government will collapse under its own weight and the dollar will come crashing down as everyone holding treasuries attempts to liquidate sending their value plummeting to worthlessness. There are solutions for the financially astute, but for liability sake as a professional financial advisor I can't list them here. Contact me if you'd like to discuss them further. I'm not saying run for the hills... yet. The Fed has medicated the disease of a fiat currency for nearly four decades and may continue to do so a while longer. However, with the baby boom demographic turning 60 for the first time last year, the federal government is faced with keeping Social Security and Medicare promises for the largest wave of retirees EVER in the history of those programs. And the Boomer generation lasts for 15 years! So the federal government is at the end of its rope. Now more than ever is the time to vigilantly prepare for the absolutely certain financial collapse of the United States federal government.
Federal Deficit Exceeds $3.5 Trillion Per Year
Many of you are reading this blog because you already know the financial catastrophe awaiting the federal government and those dependent upon it. However, for those of you who've not been exposed to the truth yet, here's the reality:
What's the real Federal Deficit?
Simply put, the federal government is flat bankrupt and the world's central banks are beginning to figure that out. It is not a matter of IF America will experience hyperinflation, but WHEN. China and the United Arab Emirates are just two examples of countries whose central banks are now diversifying their reserves away from U.S. Treasuries ("dollars"). The only thing preventing total collapse is that if these nations were to quickly liquidate their treasuries they would shoot themselves in the foot by devaluing their very own reserves: the treasury bonds themselves. Consequently they're attempting to get value out of their treasuries before the "run on the banks" begins. Make no mistake that with the world awash in dollars and with Washington continuing $3.5+ trillion annual deficits that "run" IS COMING! If you think it can't happen then consider two things: 1) history is replete with fiat currencies that have ended in disastrous hyperinflation (and I can't think of one successful fiat currency); and 2) our Federal Reserve Notes (FRNs) have only been off the gold standard completely since 1971 - a result at that time of international distrust of our spending habits and financial condition, which have only worsened for the federal government over the past 36 years - only 36 years of a 100% fiat currency, so understand that the dollars in your wallet are terribly unproven and are not the dollars of our fathers, grandfathers and all those Americans who preceded us. We're in a terribly dangerous "experiment" that ended badly with "Continentals" in the 18th Century, just as badly with 19th Century Confederate paper money in the CSA, and would have been even uglier with "Greenbacks" had Congress not eventually kept its promise to redeem them with specie.
To put the federal deficit in perspective consider that the total annual revenue of the federal government is currently $2.7 trillion. Therefore, federal spending amounts to more than $6.2 trillion (when accrued liabilities are added in) creating a deficit of more than $3.5 trillion. This is proportionate to a family whose income is $50,000/year, but whose expenditures are $114,800. At such rates of spending, how long would it take creditors to deny the extension of credit to such a family? How long until that family declares bankruptcy and defaults on its debt? Not long at all of course. The difference with the federal government is that it can run the "printing presses" rather than declare bankruptcy thereby fulfilling payment of its debt obligations with now worthless paper - hey, they owed you 100,000 FRNs, they "printed" them, and you got them, what's your complaint? The complaint is the hyperinflation caused by the "presses" running nonstop now means your 100,000 FRNs won't buy a latte at Starbucks!
Indeed, fiat currencies know only one end: financial ruin. Our currency is only 36 years in the making and financial ruin is still to come; just as certain as the sun rising in the east, the federal government will collapse under its own weight and the dollar will come crashing down as everyone holding treasuries attempts to liquidate sending their value plummeting to worthlessness. There are solutions for the financially astute, but for liability sake as a professional financial adviser I can't list them here. Contact me if you'd like to discuss them further. I'm not saying run for the hills... yet. The Fed has medicated the disease of a fiat currency for nearly four decades and may continue to do so a while longer. However, with the baby boom demographic turning 60 for the first time last year, the federal government is faced with keeping Social Security and Medicare promises for the largest wave of retirees EVER in the history of those programs. And the Boomer generation lasts for 15 years! So the federal government is at the end of its rope. Now more than ever is the time to vigilantly prepare for the absolutely certain financial collapse of the United States federal government.
Prediction for Tonight's GOP Debate: Greed and Stupidity
A field of 10 candidates will vie for the Republican presidential nomination in a debate tonight... wait, which year is this? Is it 2008 already? It should be glaringly apparent to Americans that something is TERRIBLY wrong with our political system if the fruits of public service are so valuable as to drive competitors to spend hundreds of millions of dollars on campaigns for TWO YEARS. Why do they do this? It's simple: billion dollar government contracts, benefits and protections are at stake. You don't have to be a professional financial advisor such as myself to discern that investing $100 million for billion dollar returns is extremely prudent. And when one considers that the vast majority of the $2.7 trillion in annual federal expenditures (not to mention the additional $3 trillion in annual accrued liabilities) are flagrant violations of the constitutional limitations upon federal power, then we should be angry enough to join Christian Exodus, concentrate our efforts in South Carolina, and see to it that no such federal intrusions are allowed within our jurisdictions.
Even more telling about the state of America than the rampant greed represented by presidential campaigns is the tone politicians necessarily take with the American people. They condescend to the level of stupidity of the American populace. Consider this quote from Mitt Romney on The Tonight Show:
"And so, for me, the message is all about making America stronger: strengthening our military, strengthening our economy and making sure we have strong families. Because in my opinion, the best work that's being done for the future of America is the work that's going on within the four walls of the American home. So, strength!"
OOOOHHHH YAY - STRENGTH! That is the level of intellect that the American people possess. We now need to boil campaigns down to stupid, meaningless, one-word slogans like "strength"? Who among us is NOT for American strength in some way shape or form? That means NOTHING! We hear this same malarkey EVERY campaign season - meaningless drivel about making America better with absolutely no game plan for actually doing so. And by the way, just how might we ask does a president strengthen FAMILIES? Oh for crying out loud! That's the job of churches, friends, charities, private foundations, and dare I say - FAMILIES themselves! Such a novel concept, yet in our cradle-to-the-grave nanny state called the USA we expect politicians to campaign for president on a plank of strengthening families. If you're sensing my frustration and anger, you aint seen nothing yet! Just wait until we discuss whether ANY provision of the U.S. Constitution provides the president with ANY power whatsoever to meddle with the economy or families! That's what upsets me the most about presidential campaigns - no discussion ever occurs about whether the candidates have any lawful authority to fulfill their socialist promises!
I provide the above rant to once again demonstrate that Christian Constitutionalists (paleo-conservatives) in America live among a very apathetic, ignorant and stupid people incapable of any more complex political thought than "strengthen America." Therefore, because the American people are the problem the only solution at our disposal is to change the makeup of the electorate, and hence Christian Exodus to the rescue.
OK, that's enough ranting for now. I'll end this column on a positive note. Praise God that Congressmen Ron Paul and Tom Tancredo will be in tonight's debate. I encourage every one of you to contact your family and friends and watch in the hope that some truth from these statesmen might squeeze into the debate between the load of manure from Romney and the brainless ramblings of Giuliani. You can watch the debate on MSNBC or online at http://www.politico.com/ at 8:00pm Eastern.
Christians in bull's-eye in new 'hate crimes' plan
I should be amazed by the following article for two reasons, but I'm not. First, I should be shocked that liberals have come so far as to have religious speech and beliefs on the verge of being outlawed, but come on, what do we expect from the American people today? If this attempt fails, it will be revived incessantly until it eventually succeeds. Second, I should be shocked that no discussion whatsoever from conservatives involves the fact that this legislation is completely illegal. It flagrantly violates our freedoms of religion and speech protected by the 1st Amendment. The battle against this legislation need not include all the gory details of what it will lead to; rather our defense need only be that the legislation is patently illegal and we will not obey it and we will defend ourselves from it by exercising the 2nd Amendment. That's my position! But alas, conservative Christians are so ignorant of the U.S. Constitution and American civics that they actually believe such legislation could become viable law. Let me be clear: it is NOT law no matter whether it's passed and whether federal liars, I mean judges, uphold it. It is unequivocally illegal and should be disobeyed and resisted even to the point of self-defense.
Moreover, this perfectly demonstrates why Christian Exodus is so necessary. We must concentrate our efforts locally to put men in office who will not allow illegal legislation to be enforced within their jurisdictions. That is the ONLY longterm solution to this problem, because as I've already said this legislation will eventually be passed, and it will eventually be upheld by federal tyrants, uh again judges, and it will eventually be enforced by a U.S. Department of Justice.
The PROBLEM is the American People
The PROBLEM is the American People and Virginia Tech illustrates this fact.
Thomas Fleming reviews the foolishness surrounding the media frenzy over the Virginia Tech massacre and exposes the complete idiocy of the American people in this fantastic article:
I have always stated that the root problem in America is not the federal government or politicians or the schools or the media. While those are terrible problems, they only result from the root problem: the American people are humanists and socialists with no moral compass.
Consequently the only solution is to change the make up of the people. And that is precisely our objective at Christian Exodus. We are concentrating Christian constitutionalists in the small State of South Carolina to alter the make up of the citizenry in a positive fashion. If you're in agreement, then join us at www.ChristianExodus.org.
A Call to Action for Congressman Ron Paul
If you’ve read my columns for any length of time, you know that I believe the problem with America to be the American people themselves. Collectively we are a humanist, materialist, socialist and fascist people, and this is the very reason for projects like Christian Exodus and the Free State Project which at their core aim to change the make up of a people: South Carolinians and Hampsters respectively. (That’s just a little joke; I’m not sure how to refer to the people of New Hampshire ) Well, Dr. Ron Paul’s experience in the GOP debate on Tuesday demonstrates just how far the American people have fallen from any respectability or honest analysis.
I believe Lew Rockwell quite accurately described the degradation of the American people in this portion of his recent column:
“Ron is such a wonderful person that I'm sorry that he had to be the one to tell the truth. One could sense in the debate that he was making an enormous sacrifice here. After Guiliani spoke, the red-state fascists in the audience all started whooping up the bloodlust that the politicians have been encouraging for the last six years – a mindless display of Nazi-like nationalism that would cause the founding fathers to shudder with fear of what we've become. These people are frantic about terrorism and extremism abroad, but they need to take a good hard look in the mirror.” (emphasis added; read the entire column here)
Let me be clear that I am NOT one who suggests that everything America does or has done is evil, but I’m also not one to suggest that all we do is with pure motive either. In fact, I know human nature, and Scripture is clear that money and power corrupt and rule the lives of men. Only a fool would believe that American leaders are somehow immune to these lusts. There are a great number of reasons why we station troops and meddle in the affairs of 134 different nations, and every one of them is driven by the selfishness of some particular special interest in Washington . It cannot be argued that individual Americans receive benefits from our policing the globe commensurate with the level of tax dollars spent on the policing. No, those profiting from these government expenditures are corporate and military interests with huge lobbies in Washington and a stranglehold on control of the GOP establishment.
Ron Paul is a man who will not bow to this long standing practice of government action at the behest of corporations, and for that he must be punished and silenced by the GOP establishment. He is a man of the people, not a man who’ll toe the corporate line. He is a man who’ll analyze facts and think independently rather than follow the mindless groupthink of fools, and as a result the chairman of the Michigan GOP, Saul Anuzis, is now seeking to have Dr. Paul barred from future debates. We must not let that happen as Ron Paul is a warrior for constitutionally limited government in Washington and the debates provide a national forum for the promotion of our paleo-conservative views. So please contact Mr. Anuzis at the following:
Michigan Republican Party
Secchia-Weiser Michigan Republican Center
520 Seymour St.
Lansing , MI 48933
Phone: 517-487-5413 or FAX at 517-487-0090.
OR email at http://www.migop.org/contact_us.asp
Now why is this important if Christian Exodus is not focused on national politics, but rather on South Carolina ? Let me be clear that even if Ron Paul was to become president, America would not be put on a road toward reform. He’d be relegated to 4 years of vetoes and then be put out of office, because again, the majority of the American people do NOT desire constitutionally limited government. They will not tolerate the elimination of their government subsidies and socialist programs. Therefore, Ron Paul’s candidacy is important to us for one reason alone: he promotes the philosophies of the American Founders and Christian constitutionalists. Ron Paul’s ability to get our message to millions of people will help thousands of folks find Christian Exodus and other paleo-conservative organizations. Simply put, his candidacy will increase the number of constitutionalists in America and some of them will find Christian Exodus – the only strategy that can lead to the reestablishment of constitutionally limited government anywhere in the union.
So please do your part to keep Congressman Paul in the debates by contacting the Michigan GOP. Instruct them to cease persecuting Ron Paul. He is a warrior for our beliefs with a national podium, and we need him there as long as possible.