Archive Page 2

17
Dec
08

California: The Zombie State

I live in California and try to keep up on the local news.  Interestingly enough, something that somehow has escaped me and seems to be out of the public spotlight is the news of the HUGE losses that calPERS has taken.  For those of you that don’t know, calPERS is California’s largest public pension fund.  The Sacramento Bee reports that Taxpayers eventually could pay as CalPERS loses billions.

Earlier this week, CalPERS warned that its investment losses – 19 percent since the fiscal year began July 1 – could force CalPERS to demand higher contributions from the state, municipalities and other public agencies that rely on the fund for pensions. The warning came in a CalPERS staff report.

And more from the same article:

The state declined to estimate how high its CalPERS bill might climb, but the city of Sacramento could see its costs jump by $8 million to $16 million a year, said City Treasurer Russ Fehr. The increase, if it occurs, would begin in July 2011.

“This is alarming,” he said, noting that the city is already struggling under a deficit. “This is one of the consequences of what’s going on in the world and how it rolls down to local governments.”

In addition to CalPERS losing billions, the second largest public pension fund also had HUGE losses:

The state’s other big pension fund, the California State Teachers’ Retirement System, is also experiencing substantial losses but isn’t yet making predictions about employer contribution rates.

Pension costs can sink a municipality’s budget. They led to a big scandal in San Diego earlier this year and helped force the city of Vallejo to file for bankruptcy.

What they don’t tell you is that these pensions flat out gambled with sacred, hard-earned government employees money!  And what did they gamble in?  Why, the most stable and sound investment there is — real estate!  Michael Shedlock at Global Economic Analysis writes that Calpers To Report Losses of 103% on its Residential Investments.  He quotes the Wall Street Journal article:

At the height of the property bubble, California’s giant pension fund, Calpers, made a fateful decision: It aggressively poured money into real estate. As a result, today it’s one of the biggest owners of undeveloped residential land in America.

And more:

Calpers in recent weeks said it expects to report paper losses of 103% on its residential investments in the fiscal year ended June 30. That’s because Calpers invested not only its own money, but billions of dollars of borrowed money that must be repaid even if the investment fails. In some deals, as much as 80% of the money invested by Calpers was borrowed.

I also read that not only did they “invest” in real estate at the very top of the bubble, they also “invested” heavily in commodities at the top of the commodities bubble!

California is hosed.  Now more and more money will be demanded from cities and municipalities because of the ineptitude of the state government in managing pensions.  In the meantime, California’s state budget is facing record breaking deficits which undoubtedly will cause the government to make severe cuts (meaning firing people) and to raise taxes.  Currently unemployment is over 8.5% and climbing fast!  Of course, this is happening at the same time that billions are being lost in the equity of Californians’ homes.  This is coming after millions of dollars were lost due to the actors strikes and millions more, maybe hundreds of millions more, that were lost due to the  recent wildfires that burned hundres of homes.  How are Californian’s going to deal with this?  Do you think that they are going to work hard, sacrifice and start being frugal?  Hardly.  Another riot, just like the one after the Lakers won the championship, will more likely be the “solution”.  The future isn’t bright for the zombie State…. uh… I mean Golden State.

In my view, it’s time to get out of California, at least out of the major cities, while you still can.  If there is one place that the zombies are coming, it’s California.

12
Dec
08

Joblessness: The Creation of Zombies

It seems you can’t read any news without reading more news of job losses.  Joblessness has hit a 26 year high:

The number of U.S. workers filing new claims for jobless benefits surged to a 26-year high last week, government data showed on Thursday, as employers tightened their belts to help weather what many fear will be a deep, long recession.

A separate report showed the U.S. trade deficit swelled unexpectedly in October as weak economies around the world imported less from the United States.

Analysts said the export pillar that had helped to support the fragile economy earlier in the year was now crumbling and many said the economy appeared headed for an even deeper contraction in the fourth quarter than they had thought.

“The last bastion of the U.S. economy has collapsed. The U.S. economy will contract by 4.5 percent in the current quarter. The ugly recession accompanies us into the next year,” said Harm Bandholz, an economist at UniCredit Markets & Investment Banking in New York.

Initial claims for state unemployment insurance benefits jumped by 58,000 to 573,000, the U.S. Labor Department said.

It was the biggest increase in claims in more than three years and the highest level since November 1982 when the U.S. economy suffered a recession after the Federal Reserve raised interest rates to combat the high inflation of the 1970s.

And the bad news continues in the article:

“We are experiencing the absolute worst of the economic downturn right now,” said T.J. Marta, fixed-income analyst at RBC Capital Markets in New York. “We’re in a period of complete freefall in terms of economic growth.”

The Labor Department said the number of Americans still on the jobless benefit rolls after claiming an initial week of aid jumped by 338,000 to a 26-year high of 4.43 million, the biggest increase in 34 years.

People without jobs who have no hope for finding a new job have more of a tendency to become desperate.  So, how can YOU be spared from becoming a zombie?  First of all, educate yourself about what is really going on in the world.  Second, if you don’t already, do the best work that you can at your job.  Be a great employee.  The more valuable you are to your employer, the less likely you will be to get laid off.  Third, get out of debt and start saving.  Spend less.  As Mish would say, “The future is frugality”.  Prepare yourselves.

I want to make some predictions.  I do this in part because I get an attitude of arrogance and disbelief from many with whom I share my thoughts.  If people are going to mock, at least I will be able to one day say, “I told you so”.  I made some predictions earlier this year in “The Calm Before the Storm“ and “Hurry, Hurry, Sell Your Gold” and they were right on.  I predicted a “Black Christmas”.  I predicted the attitudes of Americans.  I predicted there would be a temporary drop in the price of gold and silver.  At the time I wrote about gold, it was close to $1000/oz.  Silver was somewhere around $17-$18/oz I believe.  Currently, gold is about $800/oz and silver is about $10/oz.  So my first prediction is a dramatic increase in the price of gold and silver.  I’m predicting that it will almost double by sometime in 2010.  To be specific, it will reach at least $1500 with the possibility of being dramatically higher by sometime in 2010.  Silver will at least double but possibly triple it’s value or more in that timeframe.  The DOW will drop under 8000 and maybe closer to 7000 by the end of 2009.  It’s possible it goes even lower.  Joblessness will continue to drop but even more dramatically.  We may see multiple consecutive months of 500,000+ job losses. 

In previous posts I have talked about hyper-inflation.  I never really spoke about a timeframe only that I believed serious inflation will occur.  This is much harder to predict because it rests entirely upon unpredictable governments.  However, I don’t think we see hyper-inflation in the very near term.  We are in such a period of deflation now, with banks unwilling to lend, that even though government spending has shot through the roof, it really hasn’t increased the availability of money and credit which is really what inflation is.  So I see serious inflation coming no sooner than the end of 2009 and maybe as far out as 3 – 5 years+.  However, unless something is done about our huge deficit, now approaching $12 Trillion, and our even greater unfunded liability, estimated by some at over $99 Trillion, there is no way to escape the inevitable destruction that will be caused when the US dollar is eroded in value due to the effects of inflation.

Get ready… NOW!  The zombies will come.

06
Dec
08

Have a zombie Christmas

I was picking a friend up from the airport and she told me a story about how her pregnat sister had been tackled and a package had been ripped out of her hands that was on sale!   Shouldn’t this be a shocking and outrageous story?  Unfortunately, this isn’t even close to the worst that has happened this holiday season.  Check out this article.

In the past four days, America’s retail stores and malls have seen several shootings and the trampling to death of a man caught in a stampede of overeager shoppers.

Most people have probably heard about the story of the man trampled because of greedy, selfish people.  People are becoming more and more zombified.  The article continues:

“People are out of jobs, and they still want to do something for their families for Christmas,” he said.

The pressures facing today’s consumers, he said, might contribute to an uptick in crime and violence at stores.

Lt. Kevin Smith, the commanding officer of the police department’s public information office in Nassau County, N.Y. — where the Wal-Mart temp was trampled to death Friday — said shoppers “are trying to compensate for their lack of income by making sure that they get in and get in first. … The stores are getting a larger volume of people over a short period of time.

If trampling a man isn’t bad enough, listen to what else happened:

“We do feel the economy is a trigger for someone taking an opportunity to commit a crime that they otherwise would not think about,” said Joseph LaRocca, the vice president of loss prevention at the federation.

The federation has also acknowledged the violent incidents that left a disturbing mark this year on the weekend of Black Friday, the kickoff to the holiday shopping season when retailers traditionally are in the black, or turn a profit.

In addition to the Friday morning stampede that led to the Wal-Mart worker’s death, there was a spate of shootings: Two men shot each other to death at a Toys “R” Us store in Palm Desert, Calif., Friday; a pregnant woman was injured in a shooting at an Atlanta mall Saturday and armed robbers killed one man at an Express store in a suburban Miami mall Monday.

To conclude, let me say that my friend commented that she was afraid that if people are acting this way over a Christmas shopping, what would they do if their families were starving?  BINGO!  The zombies are coming.

13
Nov
08

Update from Iceland

Here is an update from a citizen of Iceland.  You can find the full forum here.

“I’ve not written anything about the situation in Iceland for just over a week now. Here is the latest from my perspective as an Icelander.

- The Central Bank lowered interest rates last week from 15,5% to 12%. However, because of agreement with the IMF before the weekend, interest rates were raised to 18% today.
This means companies and individuals, that are already struggling to pay loans, will suffer even more. No new loans at all from anywhere.

- The IMF agreement last week gives us $2.1 billion to prop up our currency. This is not enough, and we’re seeking an extra $4 billion from other countries, the Fed, ECB and Scandinavian CB’s.

- It is estimated that economic contraction will be around 10%.

- It is estimated that 20% of companies will not be able to pay payroll this month. I have a feeling a lot of companies are just “ghost” companies, people still working, but the company is essentially bankrupt.

- Massive layoffs in the construction industry, and the banking sector of course.

- Inflation roared to 15,5% this month, expected to rise.

- Our currency is still worthless and still not traded overseas. Although there was a news today that hinted there was some trade with the ISK, where it was less than half the value that our CB claims.

- I must note that there are no shortages (yet) of food, fuel and medicine, or much else I’ve noticed. But if current situation continues then we could see some shortages, but not of necessities. However, because of rationing of foreign currency other importers are not able to import new supply of e.g. clothes, industry material etc. I expect many companies not being able to continue their operations because of import restrictions.

- The sovereign state has not yet defaulted on any loans, despite statements in the foreign media. It requires a lot of help to get back on it’s feet, and seems to be getting it soon.

- A lot of families are “stuck” in their homes, cannot sell, cannot move, cannot buy. The mortgage debt is around 10-40% higher then the value of their homes. Home value is expected to drop significantly in the coming months.

- The government owns all the banks, and indirectly owns all the media, and all the debt of the people. With taxes and debt payment the people are in a state of servitude to the government. Not many realize this.

- Some conspiracy theories are on the icelandic forums that the government is censoring the media, directing them to mitigate the news. They own all the media after all!

- Many are considering strategies out of this, e.g. husband and wife divorcing and allowing one of them to default on the debt and go bankrupt, while the other one keeps a clean slate. Some are thinking about fleeing to another country.

- The government has been able to offer a temporary freeze on payments on mortgages, 4-6 months. The depression is expected to last at least 1 year, maybe 2 years.

- There are some protests, but they seem to be minor. There is general calm, but still anxiety, frustration, over the situation. I expect things to get a lot worse when people lose their jobs and have nothing better to do than to protest.

I think the coming friday/monday is the big reveal moment, e.g. who pays the payroll and who doesn’t. Just then we’ll realize how serious the situation is. I expect thousands to lose their jobs.

How does once a free-market capitalist system, with the highest standard of living in the world, the most freedom of the press in the world, the happiest people in the world and least corrupt people in the world turn into a Orwellian fantasy almost overnight is beyond me.”

My thoughts: This is coming straight from a citizen of Iceland and so we know we aren’t getting any media spin.  His last statement is maybe the most poignant:

“How does once a free-market capitalist system, with the highest standard of living in the world, the most freedom of the press in the world, the happiest people in the world and least corrupt people in the world turn into a Orwellian fantasy almost overnight is beyond me.”
The answer to that statement is that he never lived in a free-market capitalist system.  He only thought he did.  Ignorance is bliss while it lasts.  The bottom line is that Iceland’s prosperity was a sham created by a huge expansion of money and credit, just like the prosperity of our economy in the last few years.  Centralized economic planning, currency manipulation, government involvement all by the central bank are what caused this.  The central bank and the government, controlled by just a few people, destroyed an entire nation’s economy.  And what does the government propose to do to fix the government?  Should they finally resolve to keep their destructive hands out of it?  NO!  They grab more power by nationalizing everything!  His point about servitude couldn’t be more true!  They all do live in servitude to their government because they are all in debt and the government owns all debt.  And now, even the Iceland central bank and government are at the mercy of the IMF, World Bank, and other more powerful foreign central banks like the ECB and Federal Reserve.  Was this by accident?
 
There isn’t any major country that doesn’t “manage” it’s economy by using a central bank.  Central banks create money by creating debt.  Money is debt, plain and simple.  It will blow your mind to think about this but if we all paid off all of our loans and there was no national debt, there would hardly be any money.  And yet, when new money (debt) gets created, interest needs to be paid on it which creates an endless cycle of needing ever more debt to satisfy the never ending interest.  Our monetary policy from the ground up, slowly but surely can only cause greater and greater servitude.  Iceland is the perfect example.  Do you think we, in the U.S., are any different?  Only in size and scope. 
 
The bigger they are, the harder they fall… The zombies are coming.
30
Oct
08

Social Programs and Doing Good

My brother forwarded me an article which reports of the coming crisis caused by our government’s unfunded social security and medicare liabilities.  

The U.S. Government Accountability Office (GAO), noting that the federal balance sheet does not reflect the government’s huge unfunded promises in our nation’s social-insurance programs, estimated last year that the unfunded obligations for Medicare and Social Security alone totaled almost $41 trillion. That sum, equivalent to $352,000 per U.S. household, is the present-value shortfall between the growing cost of entitlements and the dedicated revenues intended to pay for them over the next 75 years.

I’m glad to see stories from the media that recognize that there is a huge problem on the horizon.  However, the solution the article presents is pretty much the same sort as one that most politicians who got us into this mess would offer:

These problems are not beyond our ability to master them. Social Security can be made sustainable and secure with some modest changes over time in retirement benefits, the retirement age, and the tax structure, as Republicans and Democrats did in the early 1980s.

HAHA!  Modest changes?!  Hmm… maybe the government can fix this huge problem that they have created?!  Ya right!  When are people going to realize that the government IS the problem and cannot be used as a solution.  This problem will never be resolved as long as people think that even some socialism is acceptable.  The very idea of Social Security (SS) and Medicare (MC) being allowed to exist needs to be wiped out as a feasible solution for society’s problems because it’s not.  Politicians will continue to promise something for “nothing” in order to get elected and re-elected.  History has time and time again proven that socialism is always a downwards spiral starting with something that seems very good and benign and ending in the destruction of freedom, tyranny and increased poverty.  Nothing pisses me off more than someone who wants to force other people to do good!

 I’ve thought about this a lot.  I think that the federal government should get 100% out of providing a government social security pension to everybody along with a government provided health care and prescription drug benefit to seniors.  This is nothing short of confiscating, by force, the money from one group of individuals and giving it to another.  It’s legalized plunder.  It’s stealing.  It’s a violation of the worst kind on our property rights.  It’s a crime and it needs to stop.  The founding fathers revolted over much less. 

Let me qualify my statement about government confiscation by saying that I do not think that the nature of taxes alone is plunder; only when they are taken from one group of individuals and used to directly benefit another is it theft.  In other words, the redistribution of wealth or providing individual benefits at the expense of another is theft.  The government doesn’t legally or morally hold this power.  The fact that they do it is a form of tyranny. 

Regarding pensions and healthcare for seniors, I don’t believe getting the government out of this business can happen with just one piece of legislation.  First, we need to reform the influence that businesses have on politics otherwise change would never happen.  I believe this could simply be solved by not allowing business to lobby at all.  Period.  The current reasoning that allows business to lobby government is that it has been claimed that its a matter of free speech.  However, businesses are not individuals and do not have have individual rights.  For example, a business could never invoke the 5th amendment to protect itself in court.  Why are they afforded the human right of “free speech”?  The idea that businesses, because of their huge $$money$$ advantage, have an overwhelming voice in government over individuals is inherently unfair anyway.  Cut off lobbying by businesses – a simple solution. 

After taking care of the corrupting influence of corporate money in government, we might have a chance at restoring our republic to the ideals our founding fathers established; namely, removing all social programs.  When doing this, I don’t believe it would be right to yank the rug out from seniors who were promised something that unfortunately took theft to provide.  Here is my proposal.  If you are 50 and over, you can choose to continue to get the promised SS and MC benefits for the rest of your life and continue to pay into the system.  Or you can choose to not get any benefits.  If you choose to forego SS and MC, you get ALL the money back that the government has stolen from you over the course of your life relative to SS and MC.  Whether this money comes in a lump check or over the next few years, is a matter of implementation.   

Since we would be restoring our republic, and would be discontinuing SS and MC, those individuals under 50 would not be able to choose to receive stolen money in the form of MC and SS.  However, just like those who chose to forego benefits, they would get all the money back that they had paid into SS and MC and would be responsible for their own healthcare and retirement as our founding fathers intended.  We need to give sovereignty back to individuals and families. 

This is a simple and workable plan.  Doing this, along with removing all other social programs, would save the government tens of trillions of dollars even if initially it would seem to be costly.  Most importantly, it restores freedom back to whom it belongs — individuals and families.  It would also be very beneficial for our economy as people would be able to use their own money to make wise investment choices instead of letting government bureacracy waste it.  In addition, it would be a boon to society in general by encouraging people to look for ways to give and receive charity instead of fostering the mentality that the government needs to take care of poor and old people.  I’ll say it again, nothing pisses me off more than someone who wants to force other people to do good!

20
Oct
08

What happened in Iceland?

When comparing an economy of one country to another, its never an “apples to apples” comparison.  Nevertheless, in order to prepare for what is to come, we need to look back in history to find something with comparable value to know what to expect when the zombies come.  For this reason, everybody should be paying close attention to what is happening in Iceland right now.  I believe that what they are going through should be viewed as somewhat of a pre-cursor to what will happen here. 

I just finished reading this good article.  Here is an excerpt:

The real tragedy in the crisis is the impact on Icelandic households; they are seeing payments on loans increased by up to 50%, and inflation which may reach 30% or more this year, with salaries frozen and mass layoffs.

What is the lesson here?  Icelandic individuals are going through hell because of centralized economic planning through a central bank.  It is the enemy to financial freedom and prosperity.  We should despise central banks for what they are - creations of international bankers to steal wealth from those that produce it. 

Luckily for Iceland, there may be some long-term hope:

Fortunately, the long run macroeconomic potential is good.

Iceland has plenty of untapped natural resources and a well educated workforce.

The long run economic outlook is therefore favourable.

Can we say that we have a well educated workforce and plenty of untapped natural resources?  We may end up being much worse off than Iceland!  The zombies are coming.

I did a quick Google search.  It appears some more good reading can be found at:

http://business.timesonline.co.uk/tol/business/economics/article4925940.ece

http://www.thetakeaway.org/stories/2008/oct/16/icelands-economy-becomes-a-casuality-in-the-global-financial-downturn-as-allies/

One more thing.  I’ve done some research into what happened in Argentina a few years back.  That’s a history worth studying if you want to be able to know what to expect.

22
Jun
08

Marriage should be defined as being between a man and a woman. Part I

Part I.  Rights and Marriage

Some scary things are happening in our society.  So far the point of my blog has been to bring these things to light to motivate people to prepare for them.  In this spirit, I share a section from “The Family: A Proclamation to the World” by the First Presidency and Council of the Twelve Apostles of The Church of Jesus Christ of Latter-day Saints:

We warn that individuals who violate covenants of chastity, who abuse spouse or offspring, or who fail to fulfill family responsibilities will one day stand accountable before God. Further, we warn that the disintegration of the family will bring upon individuals, communities, and nations the calamities foretold by ancient and modern prophets.

I believe that the breakdown of the family is the root cause for many of the terrible problems that we see in society today.  If it’s not the root cause, it’s likely a contributing factor.  And even if it’s not the reason or a contributing reason to the cause of a particular problem, the breakdown of the family makes it more difficult for society to deal with these problems.  Because the family is the fundamental unit of society, I strongly believe that marriage should be defined as being between a man and a woman.

I’ve been meaning to formulate my thoughts into a blog regarding this subject for some time now.  To start, I would like to mention that I believe that the government is limited to what it can do based upon what is has the authority to do.  This may sound like a no-brainer but how often do we think about whether the government is overstepping it’s bounds when we ask it do something for us.  Just because something may be considered to be good by some people, doesn’t mean the government has the authority to do it.  To illustrate my point, let’s use an example at an individual level.  Let’s say there is a poor, starving man.  Nobody would argue that it is good for him to eat.  But does he have the right to steal in order to eat?  No.  The man from whom the food was stolen can seek a justifiable redress for the actions of the hungry man.  In the same respect, we may feel that we would like the government to intervene in some manner to do good.  But it can only do so if it has the proper authority to do it.  Since the government is limited to do what it has the just power to do, I’ll dedicate the first part of this blog to focus on the rights of individuals and the powers of governments that relate to the definition of marriage.

1- The government DOES have the authority to define marriage.

A common argument I hear is: “What business is it of the government to decide who can and who can’t be married?”  The answer is that the definition of the institution of marriage is fundamentally NOT a private matter.  It requires that society treat the individuals being married as a unified entity.  To become a unified entity is THE VERY PURPOSE OF MARRIAGE.  If individuals want this special status from the rest of society, justice demands for society to be involved in the definition of it.

An example of how a married couple — a unified entity – receives special status relates to property rights.  If a married couple buys a car, it is owned by both of them.  In this example, let’s say that the married couple decided to end it’s marriage.  Who would decide which person gets the car after the marriage is over?  The court system of our government.  Even if the government somehow, someway were able to dissolve itself from defining and licencsing marriages and grant this power unto organizations such as religious bodies (which by so doing, it is still passively being involved in the process), it could not dissolve itself from the process of ending a marriage.  In the case of the car, who would decide who gets it when the marraige ended?  Certainly the organizations couldn’t; it’s not their place!  And even if they were given special power by the government to perform cases of divorce, ultimately if someone was unhappy with the settlement, the appeal for justice would have to go to the supreme law of the land — the government.  The establishment of justice is one of the very reasons we have created government.  

So, defining the manner in which property rights are established, maintained and dissolved relative to the institution of marriage IS precisely the government’s business.  And property rights aren’t the only special status that one receives when getting married.  Others include:  legal, social, and economic stability; the formation of a family unit; procreation and the education and nurturing of children; legitimizing sexual relations; public declaration of love; or to obtain citizenship

Lincoln stated in the Gettysburg address that the government is of the people, by the people, and for the people.  You cannot disconnect the government from our society.  And marriage, because of it’s very purpose and definition, requires that society give it special status, you cannot disconnect the definition of marriage from society.  Hence you cannot remove the power from the government to decide upon the definition of marriage.  It is inherently unfair for the choice to be taken away from people to decide what their own marriage means, and also to whom they are required to give a special status.

2- Individuals do not have an inalienable right to marry someone of the same gender.

If it is necessary for the government to be the entity that decides how marriage is defined, can it arbitrarily allow some to be married and others not?  Of course not.  Government is instituted to allow individual liberty by protecting the inalienable rights of ALL of it’s citizens.   In the Declaration of Independence, Thomas Jeffersion shows that the very foundation of our country was based upon this idea:

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

One of the inalienable rights that Jefferson stated was “the pursuit of Happiness”.  Doesn’t that seem to make the definition of marriage unfair discrimation towards gays?  At first glance, it might seem so but in reality, it isn’t.  I use the term ”unfair discrimination” because I feel that the word discrimination by itself is not always properly used or understood.  Here it is defined:

1 a: the act of discriminating b: the process by which two stimuli differing in some aspect are responded to differently

2: the quality or power of finely distinguishing

3 a: the act, practice, or an instance of discriminating categorically rather than individually b: prejudiced or prejudicial outlook, action, or treatment

So we discriminate everyday in all of our judgments — when we decide which fruit to buy at the grocery store, which way to go to work if traffic is bad, which person to hire for a job, etc.  In this case, is the government being prejudiced or unfairly discriminating against gays?  No, here’s why.  In the case of marriage, discrimination isn’t being done based upon sexual orientation.  It is being done based upon whether two individuals of the same gender can be married.  Keep in mind, it’s also being done based upon how many people are allowed to be part of the same unified institution of marriage (i.e. polygomy) and also based upon age.  Homosexuals are being afforded the same opportunity that everybody else in society is — the right to marry one person of the opposite gender who is of legal age.

On a side note, this issue would be even more confusing if it really were about the right of gays to get married to another gay person of the same gender.  How do you define homosexuality?  Is it somebody who feels attracted to someone of the same gender?  Would if that person doesn’t pursue those attractions, doesn’t consider themselves gay and/or has attractions towards the opposite gender?  Is homosexuality defined as someone who has had gay sexual relations?  Would if someone considers themselves gay even if they haven’t had gay sex?  The questions could go on but the bottom line is that the definition of homosexuality is very ambiguous.  And if it were really about discriminating against gays, then a gay person could just claim they weren’t gay and marry someone of the same gender.  I know that may sound silly but it demostrates a very valid point — there is no discrimination against gays when defining marriage as between a man and a woman.

In any case, getting back to the point about the government protecting the right of it’s citizens, if the government does have the power to define marriage, but it doesn’t have the right to unfairly discriminate, is the act of defining marriage as being between a man and a woman unfairly discriminatory?  There are certain inalienable rights.  In addition, the Bill of Rights of the Constitution of the United States of America has established that there are certain rights upon which the federal or state governments shall not infringe.  Each state also has it’s own form of constitution and bill of rights which prohibit that particular state from infringing upon certain rights.  So all of these rights — inalienable rights, those found in the Bill of Rights, and those in each individual state – comprise a list of those upon which governments shall not infringe.  Is the right for one person to marry another of the same gender found in the Bill of Rights?  No.  As far as I know, this right is not found in any state constitution or state bill of rights either.  So unless it is a fundamental right, it is legal for the government to make laws prohibiting it.  So that leads us to the question, is it a fundamental right?  A fundamental right is one that is inherent to being a human being.  These rights are not granted to us by our government, they are naturally possessed by us because we are human beings.  In the U.S. Declaration of Independence, Jefferson states that these rights have been endowed upon us by our creator.  There isn’t an exhaustive, specific and authoritative list of every single fundamental right that humans possess but by their very nature they are rights that everybody can possess at the same time allowing for liberty and justice.  Therefore, there are very few rights that are truly fundamental.  Examples of fundamental rights are the right of life, self-defense and property ownership.  We can all own things without infringing upon anybody else or requiring some form of servitude from others.  We can all live while allowing for liberty and justice to exist.  Conversely, what some consider a “right” such as free healthcare cannot be an inherent/inalienable/fundamental right.  In order for people to have “free” healthcare, others would need to provide for them.  Without getting into a long-winded philosophy upon government, I’ll just succinctly state again, that marriage by its very definition, when living in a society, requires a consensus by the public because it requires each individual to treat those involved with a special status.

3- Is the prohibition of same-gender marriage unfair discrimination based upon gender?

I read a blog yesterday that claimed that the California Supreme Court was justified in redefining marriage by declaring the state law unconstitutional that defined it as being between a man and a woman.  The justification behind declaring that law unconstitutional was that it unfairly discriminated based upon gender.  This notion is absolutely ridiculous.  Can a woman get married?  Yes.  Can a man get married?  Yes.  Where is the unfair discrimination?  To say that it’s unfair discrimination based upon gender if a woman cannot marry another woman or if a man cannot marry another man is like saying that a man has a right to be examined by an OB-GYN for cervical cancer or that a woman has the right to use a man’s bathroom.  It’s ridiculous to think that the traditional and inherent definition of marriage, which defines marriage as being between men and women, is unfairly discriminating against a certain gender.  Both men and women enjoy the same, equal rights with regard to the traditional definition of marriage.

4- The government is infringing upon the rights the majority by imposing upon it the will of the minority.

In California, a panel of 7 judges in a 4 - 3 decision, recently overturned the will of millions of Californians who had previously voted in a 60% majority in 2000 to define marriage as being between a man and a woman.  This was a case of judicial activism and not a case of protecting the rights of the minority.  This is evidenced by the flimsy arguments found starting from the the very beginning of the written opinion of Chief Justice Ronald George.  In it he states:

Accordingly, the legal issue we must resolve is not whether it would be constitutionally permissible under the California Constitution for the state to limit marriage only to opposite-sex couples while denying same-sex couples any opportunity to enter into an official relationship with all or virtually all of the same substantive attributes, but rather whether our state Constitution prohibits the state from establishing a statutory scheme in which both opposite-sex and same-sex couples are granted the right to enter into an officially recognized family relationship that affords all of the significant legal rights and obligations traditionally associated under state law with the institution of marriage, but under which the union of an opposite-sex couple is officially designated a “marriage” whereas the union of a same-sex couple is officially designated a “domestic partnership.” The question we must address is whether, under these circumstances, the failure to designate the official relationship of same-sex couples as marriage violates the California Constitution.

So basically, he is saying that it’s not unconstitutional to define marriage as between a man and a woman but it is unconstitutional to define a union between a same-gender couple as a domestic partnership and one between an opposite-gender couple as a marriage.  What?!  So if domestic partnerships didn’t exist, or in other words, if same-gender couples had not been afforded the privileges granted by creating domestic partnerships, then there would be no discrimination?  That logic is absurd!  The bottom line is that 4 judges let their personal opinions override the opinion of over 4 million Californians.  There is no justice in that decision.
5- Marriage between a man and a woman protects chilrens’ rights.

A political philospher, named Joel Skousen, that I highly regard wrote the following:

 

The only justification the State has in regulating and enforcing marriage laws is because there are potential children as offspring (which are too young to defend their individual sovereignty) whose rights need protecting up to the age of legal maturity.

And he also writes:

There is no Right to demand that a homosexual union or any other contractual union of one, two or even three individuals be recognized by the State as a marriage because homosexuals can’t create children with same sex partners. Their civil union doesn’t come under the same class as man/women marriage with a child offspring. Neither is there a “right” for anyone to force private companies to grant partner benefits at all–though governments have created anti-discrimination laws to invalidate the right of private companies and private citizens to make discriminatory choices. When people lose the freedom to associate or not associate for whatever personal reasons, a significant fundamental right is lost.

One of the reasons gays are pushing so hard to get the states to let them adopt children is to allow them to claim legitimacy through children’s rights. But merely taking on children through foster care, adoption or artificial insemination still doesn’t qualify as a marriage because it is properly dealt with under the law governing single parents. The fact that this single parent is living with another gay person doesn’t legally impinge on the state’s sole interest in protecting the child–except in the negative sense, because of the potential of harmful example, indoctrination and/or abuse. This is the same concern states courts have in not giving custody of children to unwed partners or single women living in adulterous relationships. It is destabilizing and morally degrading for children.

As eluded to before, the government is instituted to protect individual rights and this includes children.  We are sovereign individuals.   However, childrens’ sovereignty is held by their parents until they reach the legal age.  So it is necessary for the government to be involved in the institution of marriage to establish and protect the rights of children.

In summary, society justly holds authority to define marriage and to ordain unto government the power to define it.  Individuals don’t have the inherent right to marry someone of the same gender and government is not unfairly discriminating or infringing upon anybody by maintaining the traditional definition of marriage.  On the contrary, the courts unfairly discriminated against the majority by forcing a minority opinion upon it.

Since this blog enry was focused on establishing the rights of individuals in society and the powers of government relative to defining marriage.  I hope to have a second part to this that will discuss why it is good for marriage to be defined as between a man and a woman.

11
Jun
08

Central banks actions after Bilderberg meeting

A good friend of mine, Sal Celik, sent me a story that I would like to post here.  I’m indebted to him for pointing me in the direction of the truth.  He is has spent countless hours in research, studying thousands of articles and books regarding our economy, the government, and history in general.  I deem him as a very reliable source.  I hope to continue to post thoughts of his on this blog.  Rather than summarize his email, with his permission I’m going to put it here word for word:

I have been following the Bilderberg meetings from this past week. Following are some developments that have been coming out via the main stream media.  [Click here for article]  Please take time to read my story below. (You don’t have to read the article; it is there for reference and in the case you are interested).

Excerpt of article:  << “Banks and investment banks whose health is crucial to the global financial system should operate under a unified regulatory framework with “appropriate requirements for capital and liquidity”, according to Timothy Geithner, president of the Federal Reserve Bank of New York.

 Writing in Monday’s Financial Times, Mr Geithner, a key US policymaker throughout the credit crisis and one of the main architects of the rescue of Bear Stearns, says that the US Federal Reserve should play a “central role” in the new regulatory framework, working closely with supervisors in the US and round the world.” >>

Every time I hear Geithner talk I get scared. This guy wants to run the world, and not for the good of humanity, in my opinion.

 Who is Timothy Geithner?

He worked for KISSINGER and Associates in Washington, D.C. for three years and then joined the International Affairs division of the Treasury Department in 1988.

In 1999, he was promoted to Under Secretary of the Treasury for International Affairs and served under Treasury Secretaries Robert RUBIN and Lawrence SUMMERS.

In 2001, he left the Treasury to join the COUNCIL on FOREIGN RELATIONS as a Senior Fellow in the International Economics department. He then worked for the INTERNATIONAL MONETARY FUND as the director of the Policy Development and Review Department until moving to the Fed in 2003. In 2006 he became a member of the influential Washington-based financial advisory body, the GROUP of THIRTY.

Geithner cited a March plan by Treasury Secretary Henry Paulson as providing a “sweeping consolidation and realignment of responsibilities.”

They don’t even try to hide what they are doing anymore. We are a stones throw away from a command economy – and we all know how well that works in practice.

Now we are seeing the fruits of the bankers labor with their intentional low interest rate policy. The New World Order will take a giant step closer to being with this planned financial crash.

“”Today Americans would be outraged if U.N. troops entered Los Angeles to restore order; tomorrow they will be grateful! This is especially true if they were told there was an outside threat from beyond whether real or promulgated, that threatened our very existence. It is then that all peoples of the world will pledge with world leaders to deliver them from this evil. The one thing every man fears is the unknown. When presented with this scenario, individual rights will be willingly relinquished for the guarantee of their well being granted to them by their world government.” 

- Henry Kissinger in an address to the Bilderberger meeting at Evian, France, May 21, 1992.

 More problem, reaction, solution………..

 Sal Celik

 

 

08
May
08

The calm before the storm.

I usually find that my inspiration for writing comes from the news of indicators of hard times that most people don’t seem to be recognizing or even paying attention to.  Usually I reference articles and give my thoughts on them.  Over the last few days though, I just see more of the same indicators coming from the news media.  I haven’t read anything lately that shocked me.  I still feel like I had to write something today.  I still continue to get a very serious feeling that we are in for some trouble.  Having said that, I don’t believe we are in for it yet.  I think we might see a recession start anywhere from 3 to 9 months from now.  Even though I already believe we are in a recession, I think the majority of people will actually start to personally notice it within that timeframe.  They will feel it because of higher prices, more lost jobs, continuing home equity loss and foreclosures, etc.  I think by the time December rolls around, we will see the first of many black Christmases. 

Now, even though we will start to sink into this recession, for the most part, I don’t think the average American will be hurt too badly or will panic at first.  However, I personally think that after continuing to hear gloomy news about the economy of the world’s only super power, and as the dollar continues to fall against all other major currencies, foreign central banks, foreign businesses, and international organizations will finally have had enough and they will try to divest themselves of the U.S. dollar.  (We are already starting to see some of this.)  For example, eventually the Chinese government will quit suppressing it’s currency.  Other OPEC nations will unpeg the U.S. dollar from oil except for maybe Saudi Arabia.  (In other words, they will start selling oil in Euros or Yuan.)  All of this will expose the dollar for what it is — a very seriously dilluted currency brought about by our government’s spending policies and the Federal Reserve’s monetary policy.  Combine this with the already precarious situation that we are in of not having any household savings, a significantly decreased ability to produce, and worst of all, the breakdown of the family and our overall moral decline… it all leaves no doubt in my mind that we are in for some very serious times ahead.  In other words, the zombies will come.

It’s impossible to predict if this is in 9 months, 2 years, 5 years or even 10.  I read a quote of somebody who had lived through the collapse of a currency and he said it was unbelievable how fast it happened, it was like lighting.  The Great Depression destroyed the as much wealth that had been created in the previous 70 years in 3 years worth of time!  Can something like this be stopped?  Yes!  I hope it will be.  However, I don’t think our nation has the political will to bring about the changes necessary to prevent it.  I believe that we will not have years of solid economic surplus for quite some time.  So what should we do?  WAKE UP PEOPLE!!! Stop caring about American Idol and start searching for the truth.  Protect yourself.  Now is the time.  Even if you have virtually no money, you can prepare yourself mentally, spiritually, physically and financially for what will come.  Start saving more and more and stocking up on food little by little.  If I’m wrong what have you lost?  If I’m right… well, as Peter Venkmen said in Ghostbusters:  “If I’m wrong, nothing happens! We go to jail – peacefully, quietly. We’ll enjoy it! But *if I’m right*, and we *can* stop this thing… Lenny, you will have saved the lives of millions of registered voters.”

Okay that last quote made no sense.  But the bottom line is:  now is the time to prepare, we are in the calm before the storm.

30
Apr
08

Hurry, hurry!! Sell your gold!

As you’ve probably noticed, most of my blog titles are facetious.  This one is no exception.  According to various articles I’ve read today, investors are selling gold due to expectations that the Federal Reserve will drop rates and then leave them be in hopes that a 2% interest will curb inflation.  One of them states the following:

Analysts blame the slide on profit-taking after the run-up, weak demand for jewelry and a sense among investors that the worst of the credit crisis may have passed, which would diminish gold’s allure as a safe-haven metal.

Wow!  Where to start?! 

Number one, weak demand on jewelry is caused, at least in part, by consumers not having money.  Why don’t they have any money?  Hmm… could it be that we are in a recession?  No, our government denies that.  That can’t be true.  Could it be that Americans will have lost over 6 trillion dollars on the value of their homes by the end of this year with no end in sight to dropping values?  To keep that in perspective, that’s about as much money as the entire economy of China, the second biggest economy in the world, makes in a year that just went down the drain.  In other words, imagine all the wealth that a billion people created just disappeared!  The worst part about losing 6 trillion dollars is that we are also losing our ability as a nation to earn it back!  Our economy has been driven by spending not wealth creation.  And how are we getting this money to spend?  We borrow!  From whom?  Not from other Americans… from foreigners.  What is the non-elected, non-government agency – the Federal Reserve – doing to prevent this?  They encourage more borrowing by cutting interest rates!  Oh, I almost forgot… our government does have an answer to the problem.  Spend more money!!! “Free” healthcare anyone? 

Number two, there is “a sense among investors that the worst of the credit crisis may have passed“?  Are you kidding me?!  The entire reason that these articles are being written is because the Federal Reserve is cutting interest rates.  Why?  Because of the credit crisis!  Oh, but apparently they aren’t going to continue to lower them for some time to come.  Well, if the entity that got us into this mess thinks that it’s current policies will get us out we better believe them.  How can a we revive our economy if we don’t have the money to spend anymore?  I have an idea!  If they encourage us to borrow more by lowering interest rates, maybe that will solve the problem!

Let me conclude by saying that you should always follow investor sentiment.  After all, investors were right about the technology stocks in the late 1990’s and the they were also right about the housing prices in early 2006.  I sure wish I would’ve bought a home in June 2006.  So sell your gold and silver.  After the coming brief drop in short term gold and silver prices I’m buying more along with some more ammo and food storage.  The zombies are coming.