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Daily Digest - Jan 17

Friday, January 16, 2009, 9:26 PM
  • Paulson Predicts Banks Are Done For, Shares Drop 
  • Stimulus may bolster dairy industry 
  • Famine USA---7 million dead (1930s Depression) 
  • Clear channel plans revamp
  • Hertz to cut more than 4,000 jobs 
  • Layoff Watch: 11,000 From GE (GE)? 
  • Circuit City to liquidate remaining US stores (34,000 Employees) 
  • Astonishing Worker Layoff Count Today 
  • Rescue of U.S. banks hints at nationalization 
  • Calif. tax refunds to be delayed starting Feb. 1
  • Stimulus plan repeals big tax break for banks 
  • Report: Over 8 in 10 corporations have tax havens 
  • Harsh turn of fortunes for 2 huge U.S. banks  
  • Citigroup Splits Into Two After Losing $8.3 Billion 
  • Paulson, Bair Raise ‘Aggregator Bank' for Toxic Debt  
  • Foreclosure Heat Map
  • 2009 Bank Failure #1: National Bank of Commerce, Berkeley, IL 
  • Umpqua Bank Acquires the Insured Deposits of Bank of Clark County, Vancouver, WA (Failure #2, 2009) 
  • Can You Help?

Economy

 

Paulson Predicts Banks Are Done For, Shares Drop 

It has begun to dawn on investors. The news about Bank of America (BAC) and Citigroup's (C) fourth quarter earnings is the beginning of the end of the private enterprise banking system in America. It may return in a few years, but not until the government decides it can sell the stakes it is accumulating as part of the financial bailout. 

Henry Paulson today said that most of the second half of the TARP, the next $350 billion, is going to have to be sent to banks. If only half of that sum goes into the system to keep financial firms from failing, it will overwhelm their current market capitalizations. The government will own a large portion of the equity in the nation's largest banks, whether that was it intention or not. What Barney Frank wants to do with TARP cash may become irrelevant.

Shareholders in banks are starting to catch on to their dilution problem. The stocks in BAC, JPMorgan (JPM), and Wells Fargo (WFC) are all down between 7% and 10%. The common stock of these companies is headed to the same place the shares of Fannie Mae (FNM), Freddie Mac(FRE), and AIG (AIG) ended up.

Stimulus may bolster dairy industry 

WASHINGTON - A stimulus package may be a lifeline for the nation's economy, but it could be a death sentence for a lot of cows. 

Lawmakers are looking for ways to use the forthcoming stimulus bill to help dairy farmers, and the number one priority is to dampen milk supplies and prop up prices. Translation: reduce the nation's dairy herd.

Exactly how Congress will accomplish that remains uncertain. An initial effort to use stimulus money to pay farmers to retire cows failed when House Appropriations Committee Chairman Rep. David R. Obey, D-Wis., objected on the grounds that it violated a promise not to include earmarks in the bill, said Rep. Collin C. Peterson, D-Minn., chairman of the House Agriculture Committee.

Taking milk cows out of production as a way to control milk prices is a controversial approach. The federal government tried that in the 1980s through the whole herd buyout program, and while the policy worked for a time, milk production eventually bounced back and farmers were once again grappling with low milk prices.

The buyout also sent beef prices crashing, as slaughtered cows entered the meat supply.

 

Famine USA---7 million dead (1930s Depression) 

Another online scandal has been gathering pace recently. Wikipedia, the free encyclopedia, deleted an article by a Russian researcher, who wrote about the USA's losses in the Great Depression of Indignant bloggers began to actively distribute the article on the Russian part of a popular blog service known as Livejournal. The above-mentioned article triggered a heated debate. 

The researcher touched upon quite a hot topic in the article - the estimation of the number of victims of the Great Depression in the USA. The material presented in the article apparently made Wikipedia's moderators delete the piece from the database of the online encyclopedia.

The researcher, Boris Borisov, in his article titled "The American Famine" estimated the victims of the financial crisis in the US at over seven million people. The researcher also directly compared the US events of 1932-1933 with Holodomor, or Famine, in the USSR during 1932-1933.

In the article, Borisov used the official data of the US Census Bureau. Having revised the number of the US population, birth and date rates, immigration and emigration, the researcher came to conclusion that the United States lost over seven million people during the famine of 1932-1933.

"According to the US statistics, the US lost not less than 8 million 553 thousand people from 1931 to 1940. Afterwards, population growth indices change twice instantly exactly between 1930-1931: the indices drop and stay on the same level for ten years. There can no explanation to this phenomenon found in the extensive text of the report by the US Department of Commerce "Statistical Abstract of the United States," the author wrote.

The researcher points out the movement of population at this point: "A lot more people left the country than arrived during the 1930s - the difference is estimated at 93,309 people, whereas 2.960,782 people arrived in the country a decade earlier. Well, let's correct the number of total demographic losses in the USA during the 1930s by 3,054 people."

Analyzing the period of the Great Depression in the USA, the author notes a remarkable similarity with events taking place in the USSR during the 1930s. He even introduced a new term for the USA - defarming - an analogue to dispossession of wealthy farmers in the Soviet Union. "Few people know about five million American farmers (about a million families) whom banks ousted from them lands because of debts. The US government did not provide them with land, work, social aid, pension - nothing," the article says.

"Every sixth American farmer was affected by famine. People were forced to leave their homes and go to nowhere without any money and any property. They found themselves in the middle of nowhere enveloped in massive unemployment, famine and gangsterism." 

CLEAR CHANNEL PLANS REVAMP

The new owners of radio giant Clear Channel Communications will next week begin implementing a massive restructuring plan that seeks to cut $400 million in costs at the company, The Post has learned.

According to three sources with knowledge of the plan, the restructuring will include layoffs across the company's radio, outdoor advertising and international divisions as well as cuts to programming budgets and consolidation of back-office operations.

A precise headcount for the layoffs could not be obtained. Clear Channel has about 30,000 employees worldwide.

Hertz to cut more than 4,000 jobs 

DETROIT (Reuters) - Hertz Global Holdings Inc said on Friday that it would cut more than 4,000 jobs in a worldwide restructuring through the first quarter due to falling demand, and the car rental company's shares fell nearly 9 percent. 

Hertz expects annualized savings of $150 million to $170 million in 2009 from the job cuts, it said. It expects to take a fourth-quarter charge of $20 million to $25 million for the cuts.

The cuts are in the car and equipment rental businesses as well as in corporate and support areas in all regions focused on positions that do not have direct contact with customers, Hertz said in a statement.

Hertz will have cut its workforce by 32 percent since August 2006 with the latest round of reductions, it said. 

Layoff Watch: 11,000 From GE (GE)? 

According to Bloomberg, GE (GE) may layoff as many as 11,000 people at its financial unit. 

"General Electric Co.'s finance arm may cut 7,500 to 11,000 jobs, or at least 10 percent of its workforce, because of the global financial slump." 


Circuit City to liquidate remaining US stores (30,000 Employees)
 

Bankrupt Circuit City Stores Inc., the nation's second-biggest consumer electronics retailer, said Friday it failed to find a buyer and will liquidate its 567 U.S. stores. The closures could send another 30,000 people into the ranks of the unemployed.

"This is the only possible path for our company," James A. Marcum, acting chief executive, said in a statement. "We are extremely disappointed by this outcome." 

The company had been seeking a buyer or a deal to refinance its debt, but the hobbled credit market and consumer worries proved insurmountable.

The liquidation of Circuit City is the latest fallout from the worst holiday shopping season in four decases. People have slashed their spending since the financial meltdown in September as they worry about their job security and declining retirement funds.

"Regrettably for the more than 30,000 employees of Circuit City and our loyal customers, we were unable to reach an agreement with our creditors and lenders," Marcum said. 

Astonishing Worker Layoff Count Today

Looking at the headlines at WSJ.com, the majority are about large companies that cut workers today. Circuit City is liquidating, which could put 30,000 people out of work. AMD (AMD) is cutting 1,100. Pfize (PFE) is letting 2,400 salesmen go. 

Hertz (HTZ) is firing 4,000 people and Wellpoint (WLP) laying off 1,500. All that on one web page.

Dark day.

Rescue of U.S. banks hints at nationalization 

Last fall, as Federal Reserve and Treasury Department officials rode to the rescue of one financial institution after another, they took great pains to avoid doing anything that smacked of nationalizing banks. 

They may no longer have that luxury. With two of the nation's largest banks buckling under yet another round of huge losses, the incoming administration of Barack Obama and the Federal Reserve are suddenly dealing with banks that are "too big to fail" and yet unable to function as the sinking economy erodes their capital.

Particularly in the case of Citigroup, the losses have become so large that they make it almost mathematically impossible for the government to inject enough capital without taking a majority stake or at least squeezing out existing shareholders.

And the new ground rules laid down by Obama's top economic advisers for the second half of the $700 billion bailout fund, as explained in a letter submitted to Congress on Thursday, call for the government to play an increasing role in the major activities of the banks, from the dividends they pay to shareholders to the amount they can pay executives.

"We are down a path that this country has not seen since Andrew Jackson shut down the Second National Bank of the United States," said Gerard Cassidy, a banking analyst at RBC Capital Markets. "We are going to go back to a time when the government controlled the banking system." 


Calif. tax refunds to be delayed starting Feb. 1 

SACRAMENTO, Calif. (AP) - California's controller says he will begin a 30-day delay on tax refunds and other payments starting Feb. 1 because the state is running out of money. 

Controller John Chiang said Friday he must delay $3.7 billion in payments next month because lawmakers have failed to address California's growing deficit.

With a $41.6 billion shortfall over the next year-and-a-half, the state is on the brink of issuing IOUs.
Chiang says his office must continue education and debt payments but will defer money for tax refunds, student aid, social services and mental health programs.

A severe drop in revenue has left the state's main bank account depleted. The state had been relying on borrowing from special funds and Wall Street investors; those options are no longer available. 

Stimulus plan repeals big tax break for banks 

WASHINGTON (AP) - House Democrats' version of the $825 billion recession rescue package would end billions of dollars in tax breaks the Bush administration quietly gave to banks last fall.
Already almost exclusive beneficiaries of a $700 billion Wall Street bailout, banks are largely left out of the House stimulus package that President-elect Barack Obama wants passed quickly through Congress. Those getting financial bailout money wouldn't even be eligible for one of the main business tax breaks aimed at priming the economic pump. 

Homebuilders, manufacturers, retailers and low-income families share the bulk of the $275 billion in proposed new tax cuts.

House leaders moved this week to repeal the tax break for banks even as the Senate voted to help many of those same institutions by releasing the second $350 billion of the widely unpopular Wall Street bailout. Many lawmakers are unhappy with the results after the Bush administration spent the first $350 billion, making them wary of helping banks in the stimulus package.

To address the financial industry meltdown, the Treasury Department last fall issued a new tax rule to make it more attractive for healthy banks to buy troubled ones hit hard by the mortgage crisis. It allowed healthy banks to avoid billions of dollars in taxes by offsetting their profits with the losses of the banks they acquire.
Before, the merged bank could write off only a limited amount of the losses. Removing much of the restrictions enabled the acquiring banks to make huge reductions in their tax liabilities. 

Report: Over 8 in 10 corporations have tax havens 

WASHINGTON (AP) - Eighty-three of the nation's 100 largest corporations, including Citigroup, Bank of America and News Corp. (NWSA), had subsidiaries in offshore tax havens in 2007, and some of the companies received federal bailout funding, a government watchdog said Friday. 

The Government Accountability Office released a report that said Bank of America Inc., Citigroup Inc. (C) and Morgan Stanley (MS) all had more than 100 units in countries that maintain low or no taxes. The three financial institutions were included in the $700 billion financial bailout approved by Congress.

Insurance giant American International Group Inc. (AIG), which has received about $150 billion in bailout money, had 18 subsidiaries. JPMorgan Chase & Co. (JPM) had 50 units and Wells Fargo & Co. (WFC) had 18; both financial institutions received government bailout money.

Sens. Carl Levin, D-Mich., and Byron Dorgan, D-N.D., who requested the report, have pushed for tougher laws to fight offshore tax havens around the globe. Levin, who leads the Senate Permanent Subcommittee on Investigations, has estimated abusive tax havens and offshore accounts cost the U.S. government at least $100 billion a year in lost taxes. 

Harsh turn of fortunes for 2 huge U.S. banks  

Citigroup capped a devastating 2008 by announcing Friday that it would split into two entities and that it had posted a $8.29 billion loss for the fourth quarter. 

Citigroup's rival, Bank of America, posted a more modest loss of $1.79 billion during the same period, just hours after receiving a new infusion of government support that could end up costing more than $100 billion.

But underlining the depth of the problems that have emerged from Bank of America's acquisition of Merrill Lynch, Merrill had a net loss of $15.31 billion, or $9.62 a share, in the fourth quarter, "driven by severe capital markets dislocations," before the acquisition was completed, Bank of America said. Merrill's results for the fourth quarter were not a part of Bank of America's. The merger of the two banks closed on Jan. 1.

Even as Bank of America was coping with the challenge of absorbing Merrill, Citigroup was announcing the latest steps in dismantling its own financial supermarket. Citigroup confirmed that it would divide, for management purposes, into two separate businesses - Citicorp and Citi Holdings. Citicorp will focus on international banking, while Citi Holdings will comprise the brokerage, asset management and consumer finance businesses. 

Citigroup Splits Into Two After Losing $8.3 Billion 

Citigroup, scrambling to survive losses triggered by the credit crunch, unveiled plans to split in two and shed troubled assets, and reported a quarterly loss of $8.29 billion. 

The banking giant also said it expected more departures from its embattled board, which is losing former Treasury Secretary Robert Rubin as a director later this year.

Still, the bank's shares [C 3.50 -0.33 (-8.62%) ] rose, in part because investors hoped the plan to separate its most troubled assets into a new company would help revive the company.

"It's one of the first steps toward some positive news and the end of this nightmare," said Michael Holland, founder of Holland & Co in New York, which manages more than $4 billion of investment. 

Paulson, Bair Raise ‘Aggregator Bank' for Toxic Debt  

Jan. 16 (Bloomberg) -- The heads of the U.S. Treasury and Federal Deposit Insurance Corp. gave further momentum to the idea of a new government-backed bank to remove toxic assets from lenders' balance sheets. 

"A lot of work has been done on an aggregator bank" and other ways of using the $700 billion financial-rescue fund "to let it go further when it comes to dealing with illiquid assets," Treasury Secretary Henry Paulson told reporters today in Washington. FDIC Chairman Sheila Bair praised the idea in an interview on CNBC, saying it might have "some merit."

Today's remarks come days before President-elect Barack Obama takes office, and signal a readiness among regulators to undertake what's likely to be the most radical effort yet to unfreeze lending. Fed Chairman Ben S. Bernanke earlier this week urged a "comprehensive plan" to address illiquid assets, floating the idea of a "bad bank."

Investors continue to question banks' viability even after officials committed the first $350 billion from the Troubled Asset Relief Program and after a doubling in the Fed's balance sheet to $2.1 trillion. Bank of America Corp. today required a further $20 billion injection of taxpayer funds and government backing for a $118 billion pool of bad assets.

‘Barrier' to Investments. 

Foreclosure Heat Map

2009 Bank Failure #1: National Bank of Commerce, Berkeley, IL 

National Bank of Commerce, Berkeley, Illinois, was closed today by the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Republic Bank of Chicago, Oak Brook, Illinois, to assume all of the deposits of National Bank of Commerce. 

Umpqua Bank Acquires the Insured Deposits of Bank of Clark County, Vancouver, WA (Failure #2, 2009) 

Bank of Clark County, Vancouver, Washington, was closed today by the Washington Department of Financial Institutions, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. 

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19 Comments

Mike Pilat's picture
Mike Pilat
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Re: Daily Digest - Jan 17

One other item that I found interesting and entertaining was a new Gerald Celente interview with Chris Puplava of Financial Sense. See here: http://fsn.s3.amazonaws.com/fsn2009-0117-2a.mp3

Celente is a very divergent thinker and a self-described "political atheist," which appeals to me. Here, he discusses "change," Obama, Bush, guns, collapse, food, energy, and Revolution. Celente's basic thesis has been: When people lose everything, they lose IT." Enjoy.

Mike

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joemanc
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Re: Daily Digest - Jan 17

Very good article about renewable energy in both Germany and in Quebec and new projects on the drawing board. What are ulta-capacitors? They are mentioned as well, possibly running transit buses, instead of batteries.

This quote in the article probably sums up the situation in the U.S.:

Quote:

In other words, we have the technology to move toward a life without oil. What we don't appear to have is the political will.

http://www.montrealgazette.com/Technology/there+life+after/1188444/story...

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pinecarr
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Re: Daily Digest - Jan 17

Davos, I love the "Can you help" YouTube clip!  Too funny!

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Davos
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Re: Daily Digest - Jan 17

Hello PineCarr:

Yeah, a client and friend passed that along to me. Just $3,600.00 a day, makes me want to write a check.

Wait to you see the videos on the 18th, take care 

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Matt Holbert
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Re: Daily Digest - Jan 17

Mike- Thanks for the Financial Sense link.  Interesting and entertaining perspective by Celente.  It made me feel better about the upcoming times.  Hopefully, we will get back to a time when we actually have to produce rather than shove paper around our desks.  I just read about a large real estate group that is defaulting on a $175 million dollar loan while at the same time raising $900 million in new money to invest.  If there is any justice in the system, this type of thing will come to a halt.  Eventually, as Celente says, Main Street will say enough is enough.

A. M.'s picture
A. M.
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Re: Daily Digest - Jan 17

Hey Mike,
I hate to ask, but can you paraphrase what he says on those topics for those of us with less than ideal connections?

Celente is definately an interesting mind, and I'm curious what his thoughts are. How do they compare to your own?

Cheers!

Aaron

Mike Pilat's picture
Mike Pilat
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Re: Daily Digest - Jan 17

Hi Aaron,

    As you know, Gerald Celente is a trends forecaster who speaks in fairly broad terms, but his forecast has been largely on target so far and even in the recent past history. Certainly what he is saying makes sense to me. I'll attempt to summarize, anyone else who's heard it, please chip in!

-Thesis: When people lose everything they have, they just flat out lose it

-There will be a Revolution in America and it will be initiated by tax revolts. As tax revenue is reduced, the gov will try to raise tax rates and people will react strongly against this.

-Obama, Bush, Pelosi, etc. etc. are largely irrelevant and can do absolutely nothing to help most people with their everyday lives

-Quality is going to rule again. Wal-Mart and McDonald's are the newest bubbles.

-Sharp clothing will be back in style. The thug gangsta look is out.

-This will be known as the Greatest Depression. Our situation is greatly aggravated by energy, the lack of farming and production, and especially by the amount of mind altering drugs that people are on. This will tend to limit the amount of cooperation that we see.

-Bush Gardens will come to mean small scale urban or suburban farming as people start to take care of themselves more and more

-Relocalization will make a huge comeback as small stores replace the big box ones.

-The internet helped bring us out of a recession by increasing our productive capacity. Energy will be what is required to get us out of this depression.

-The middle east and the war situation could easily spark the next acute energy crisis.

 

As for my own opinions, I have to say I generally agree. There could be political actions that disrupt these predictions, but the path we're on now seems to lead in the directions suggested by Celente. Any other thoughts on this?

Mike

 

A. M.'s picture
A. M.
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Re: Daily Digest - Jan 17

Mike,

Thanks brother - much appreciated.

I believe there are elements of truth to each of these points, but perhaps in more of a gray scale.

For example, the "thug" look may lose its appeal for less "obtrusive" clothing. Being "made" before you hit your mark isn't a good way to stay in the thieving/robbery business.

I think McDonalds and Wal-Mart collapsing would create a void that would be filled by local retailers and artisans. This would be *great* for the local market. Hopefully, Casinos will be hot on the heels of Wal-Mart when it takes plunge. However, the net result of Wal-Mart dying might be a very upset China.

Can you picture Europe buying the junk China exports? Something will have to fill their economic void, or they'll be in worse than we are.

I agree with him strongly about Politicians being irrelavant. My main concern is that Laws are going to quickly become "un-enforceable" as well. Our system of justice relies on a "correctional" mentality, instead of a "punishment" mentality. Crimes will reshape how community justice is dispensed, and areas that are notoriously "soft" - see Berkley, CA - will be in for a very hard lesson in Darwinism.

One thing that specifically interests me is Taxation and seizure of assets. This will be the "fulcrum" on which "revolution" rests, in my opinion. We fought a war over Taxation without representation before, and I personally do not feel represented beyond my County Reps.

I am optimistic that this is a natural cycle, and ultimately a more intelligent, less juvenille and wiser human race will emerge.

Cheers! (and thanks again!)

Aaron

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dickey45
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Re: Daily Digest - Jan 17

Yeah, that's a great summary Mike.  I explained to my husband the idea of the "Bush" gardens.  Living near Butchart gardens I wasn't sure what it meant (they sound a little alike).  Funny....

We're trying to rebuild our house.  The city wants us to pay them $8000 so that they won't take almost 1/4 of our lot for their use in greenspace and wider sidewalk.  I suggested that we wait a couple years until there are so few city employees that you could practically build a house without a permit.  Seriously.  The only downside is that there won't be any building materials and folks to help with parts of the building.  Oh, and our money would be worthless...

Mike Pilat's picture
Mike Pilat
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Re: Daily Digest - Jan 17

Aaron and dickey: I strongly agree on the points about assets, taxes, and city enforcement.

During a depressionary time like now, I think people could find that productive land is the most signficant asset they have. When they have to pay increasing property tax (in my mind one of the most unjust of our entire unjust tax system) simply to give an income to bureaucrats, eventually, the people will say enough is enough.

I think Obama is taking a potentially dangerous risk by increasing government size at a time like this. If he really doesn't continue to play the public really well, people will start asking why they should pay tax on anything when they've become increasingly marginalized. And forget about money altogether for a second. Let's talk about the "real" economy. Government is and always will be a load on the real economy, because the government pretty much doesn't produce anything. So regardless of what happens with paper dollars, bigger government means a harder life for everyone else (yes, even the government workers). If and when people begin to make this connection, I believe that is when the tax revolt starts.

Mike

A. M.'s picture
A. M.
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Re: Daily Digest - Jan 17

Mike,

I'm curious - considering there is an ongoing discussion on this in the General Questions section - What is Celente's take on Guns?

I think that may be a strong point of contention in the near future.

Mike Pilat's picture
Mike Pilat
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Re: Daily Digest - Jan 17

Aaron: I should have mentioned.

Celente has already talked about and acknowledged the "gun rush." He has acknowledged that crime is going to rise dramatically and people will have to take care of themselves. He once mocked Bush, Pelosi, Obama, etc. when he heard they were going to "take care of him." His response was that when a crazed crystal meth addict breaks into his home, he's going to rely on his 12 gauge and his blackbelt in martial arts to defend himself. George Bush and Barack Obama aren't going to be there to protect him then.

I think this pretty much summarizes it. He repeatedly has mentioned the mentality of the people and the drugs that they are on now as an aggravating factor to civil unrest and crime.

Hope this helps.

Mike

A. M.'s picture
A. M.
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Re: Daily Digest - Jan 17

Indeed, interesting mindset.

Individualism and intellectualism rarely meet. Always great to hear.

I agree with him, and more than a few guys I know have rushed out to buy "black rifles". We'll see how that effects the overall picture, and how crime is dealt with before much longer I suppose.

Thanks again brother.

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Re: Daily Digest - Jan 17

Aaron & Mike -

Following up on Celente's take on tax revolt, civil unrest etc, and given your written positions on the matters of 2nd Amendment and monetary issues, I also highly recommend reading (or catching some of the videos) from Dr. Edwin Vieira, PhD, J.D.

Dr. Vieira is a 4-degreed Harvard-trained constitutional lawyer, having tried 4 cases before the U.S. Supreme Court (winning 3).

Like Celente, he presents a vision of the future which is both disturbing and enlightening.  However, I think somwhat beyond Celente's (and others) @presentation only", he also has nominated what he believes are constititutional solutions to the myriad of difficulties which the United States is currently, and will further need to contend with in the future.

He is also as close to an expert as can likely be, on the US Constitution's history and position WRT to

a) Monetary Issues

b) 2nd Amendment Issues

His website is here:

http://edwinvieira.com/

Many of his short articles, updated with about 1 per week or so, are here:

http://www.newswithviews.com/Vieira/edwinA.htm

He was one of the primary speaker's at the recent "Boston Tea Party 08" (along with Dr Ron Paul & others), and you can catch much of his commentary from that rally on YouTube.

He has long predicted the continuing growth in the power of the Federal Reserve, the collapse of fiat-currency, and the like, including the possible outcomes from a collapsing monetary system when combined with an overarching and monolithic federal government.

His short articles (well....short.for a Harvard JD) on Constitional money & the constitutional dollar (from his site) are a terrific read.

From his writings, he creates a strong conceptual and legal linkage, between monetary policy, and the need for the United States to consider the true Consitutional meaning and application of the 2nd Amendment.  

He has published numerous articles on both issues.

Along the lines of the above topic on Celente's predection of civil unrest, revolt, etc, Dr Vieira has also published a book, entitled "Constitutional Homeland Security", wherein he suggests that the "federal" organization of Homeland Security is NOT what the 2nd Amendment referred to as "an organized militia" (and indeed, will result in the opposite of what the reason  the 2nd Amendment is in the Constitution - i.e. an organized militia is necessary for the security of a free state...).  

He goes on to describe why the 2nd Amendment is the only of the Bill of Right Amendments (the First 10 to the USC), which specifically and explictly stated why it was included in the US Constitution.

He is part of a movement, which is looking to build, in cooperation from the local, to the county, to the State levels of both law enforcement and citizenry, a peaceful but significant re-birth of what the Founding Fathers envisioned as a "citizen militia", built upon what the 2nd Amendment was truly referring to.

A short recap of his position on this issue can be found in the 3-part articles he wrote recently here (Part 1 with links):

http://www.newswithviews.com/Vieira/edwin187.htm

There is a movement along the writings of his articles and books, as per above (uniting local law enforcement and citizenry, as opposed to federalization imposed on citizenry), referred to as the same terms used during the era of the American Revolution - i.e., the "Committees of Safety".   Their link is here:

http://www.committeesofsafety.org/

Ultimately, the future of America will require nothing less than a solid (Constitutional) basis for our monetary system, and a solid citizenry in protection of their own divine rights and liberties.

I highly recommend a visit to Dr Vieira's positoins.

Mike Pilat's picture
Mike Pilat
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Re: Daily Digest - Jan 17

GDon: Thanks so much for all of the info. It should be very enlightening to hear what he has to say. I will get on top of it right now!

Back later.

Mike

Mike Pilat's picture
Mike Pilat
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Re: Daily Digest - Jan 17

GDon: I've actually already seen Freedom to Fascism and read a few of his articles. He's right on target, I believe, and I really wish more people would see it this way.

I wouldn't have too much trouble trusting a community militia, but I just about can't trust the Federal Police at all. As far as the unity and "common experience" that Barack is trying to promote - I can say I agree somewhat in the problem. But I strongly disagree in the "solution." Taking young people to serve the national police is going to amount to an all out indoctrination process. The degree of brainwashing could be dramatic. But having everyone take a stake in the defense of their local community would build interdependence and at least create a truly "common experience" for a smaller group of people. Its goals are more easily realized too - it's not terribly hard to have a common experience in a smaller community, but attempting to bring that experience to a national level in a country as diverse as our own is going to prove very difficult.

Thanks for posting about Vieira, he's a wise man and I wish more would listen.

Mike

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GDon
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Joined: Apr 2 2008
Posts: 86
Re: Daily Digest - Jan 17

Mike -

I agree - a "national" police, under the control of some centralized Federal authority is an absolutely horrible idea.   As it stands, the Federal branch of government has already rolled right over he Constitution in all directions.

People under their own local control, in effect to actually prevent a national state of martial law (under Homeland Security, etc) - now that is a diametrically opposed solution, in keeping with "securing a free state", and free individuals.

As for Obama's "national service" - I see this as amoral conscription, where the state owns the individual - a very scary premise. 

Further, placed in it's proper perspective, there are 2 ways to insure that American citizens are proper Serfs:

a) Take their property (already a tax rate near 50%), OR,

b) If further tax revenues are not possible without some level of rebellion and resistance, then simply make them work directly "for" Government-driven activities and mandates, under the control of some bureaucracy.

America's monetary schema is nearly broke.  However, we can be certain that those benefiting from the fractional-reserve fiat system will always put their financial benefit ahead of the survival of America as a sovereign nation, and/or the well-being of it's citizenry.

Therefore, foreign debt will be paid first (albiet with devalued FRNs), to sustain the FRN/$USD as much and as long as possible, even if it means that government programs are ultimately funded by direct American serfdom through conscription for public work   - and this follows directly into Obama's "national service" plan.

The Politburo coulnd't have planned it any better.

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Mike Pilat
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Joined: Sep 8 2008
Posts: 929
Re: Daily Digest - Jan 17

Yes, we are pretty far along the "Road to Serfdom." The amount of euphoria surrounding this election and all of the "hope hype" that we're seeing is somewhat reminiscent of the type of impassioned mass movements that got us the likes of Lenin and Hitler.

I've heard the audio recording of an Obama interview in which he unequivocally states "the Constitution is fundamentally flawed." That right there eliminates the audacity of hope as far as I am concerned. 

Obama has frequently said "I don't know if we'll fix it all in my first term." Wonderful, so he's already eyeing a second round.

But let us rejoice! His inauguration is going to be well over THREE times as costly as GWB's. Just look, he's already begun an inaugural stimulus: http://news.yahoo.com/s/ynews/ynews_pl204

Mike 

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Kurosawa
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Joined: Jul 2 2008
Posts: 43
Re: Daily Digest - Jan 17
Mike Pilat wrote:

One other item that I found interesting and entertaining was a new Gerald Celente interview with Chris Puplava of Financial Sense. See here: http://fsn.s3.amazonaws.com/fsn2009-0117-2a.mp3

Celente is a very divergent thinker and a self-described "political atheist," which appeals to me. Here, he discusses "change," Obama, Bush, guns, collapse, food, energy, and Revolution. Celente's basic thesis has been: When people lose everything, they lose IT." Enjoy.

Mike

I love Celente thanks for the post. 

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