Tribe.net. Local Connections Paul http://alt-money.tribe.net/thread/f61704c1-15d2-4d5b-bd7a-7b883f1c0a1c#ea60d7db-f0b1-443a-b044-b585b77a243e 2009-03-08T15:53:01Z 2009-03-08T15:53:01Z

I'm glad you're optimistic about the current financial situation. Me? I always say, these reports empower me, because I become much more likely to be better prepared. If nothing else being prepared mentally can make a big difference, and if you choose to take action, the downside is very minor, while the upside can be of major consequence-- even a life saver. Adversity always provides opportunity. So when I read the reports, I think about what I might do, and where a good place might be. Here's another eye opening report: The Groundwork Has Already Been Laid for Martial Law http://www.rutherford.org/articles_db/commentary.asp?record_id=581 During his two terms in office, George W. Bush stepped outside the boundaries of the Constitution and assembled an amazing toolbox of powers that greatly increased the authority of the Executive branch and the reach of the federal government. Bush expanded presidential power to, among other things, allow government agents to secretly open the private mail of American citizens; authorize government agents to secretly, and illegally, listen in on the phone calls of American citizens and read our e-mails; assume control of the federal government following a "catastrophic event"; and declare martial law. Thus, the groundwork was laid for an imperial presidency and a potentially totalitarian government--a state of affairs that has not ended with Barack Obama's ascension to the Oval Office, despite hopes to the contrary that President Obama would fully restore the balance between government and its citizens to a pre-Bush status quo. As Charlie Savage reports in the New York Times, "Signs suggest that the administration's changes may turn out to be less sweeping than many had hoped or feared--prompting growing worry among civil liberties groups and a sense of vindication among supporters of Bush-era policies." The fact is that the problem is bigger than Obama or any individual who occupies the White House. Indeed, once the government assumes expansive powers and crosses certain constitutional lines, it's almost impossible to pull back. Just consider some of the lines that have already been crossed. The local police have, in many regards, already evolved into de facto extensions of the military. Dressed like Darth Vader look-alikes, the police have opted for the SWAT-team dress formally adopted by the federal agencies. Congressional legislation allows the U.S. military, by way of the Pentagon, to train civilian police. The Pentagon has also provided local police with military equipment such as M-16 rifles, bayonets, boats, vehicles, surveillance equipment, chemical suits and flak jackets, among other items. Thus, they are armed to the teeth. We already have a federal police force comprised of Secret Service agents who are authorized to "carry firearms; make arrests without a warrant for any offense against the United States committed in their presence." A recent incident demonstrates the increased and immediate involvement of federal agents in local matters with the assistance of local police. Chip Harrison, a construction worker in Oklahoma, was pulled over by local police because of an anti-Obama sign proclaiming "Abort Obama, not the unborn" in his pickup truck window. The sign was confiscated by local police, and Harrison was informed that the sign could be considered a threat to the president. The local police contacted the Secret Service, who, within a matter of hours, came to Harrison's home and investigated the matter. So much for the freedom of expression. According to the Army Times, we now have at least 20,000 U.S. military troops deployed within our borders to "help with civil unrest and crowd control or to deal with potentially horrific scenarios such as massive poisoning and chaos in response to a chemical, biological, radiological, nuclear or high-yield explosive, or CBRNE, attack." I am not alone in believing that we are just one incident--be it a terrorist attack, a major financial blowout or a widespread natural disaster--away from martial law being declared in this country. And once that happens, the Constitution and Bill of Rights will be suspended and what government officials believe and do, no matter how arbitrary, will become law. Our methods of communication are already being monitored--and, in some instances, shut down, abetted by the telecommunications giants, which act as extensions of the government. Thus, not only does the government have the ability to open and read our mail, it can also listen in on our phone calls and jam our cell phone calls. As the Washington Post reports, federal authorities already have the ability to jam cell phones and other wireless devices. Unbeknownst to the nearly two million people who attended the Obama Inauguration festivities, federal authorities jammed cell phone signals at specific locations. Such disruptions simply appear to be a dropped call or lost signal. Of course, such jamming could be conducted on a more extensive basis nationwide. This would prevent citizens from being able to communicate with one another or make appeals to their government representatives. Although jamming is technically illegal for state and local agencies, Sen. Joe Lieberman (I-Conn.) plans to introduce legislation to allow local police to "selectively" jam cell phones. We already live in a surveillance state. There was a time when people could flee when the government got out of control. Now, with our every movement monitored by cameras on sidewalks, streets, ATMs, and in shops, offices, schools and parks, there truly is nowhere to hide. Moreover, equipped with high-powered satellites and massive databases, the government can track us using our cell phones, cars, credit cards, driver's licenses and passports. For those who have been paying attention, such as former war correspondent Chris Hedges in his Truthdig article, "Bad News From America's Top Spy," it's clear that the groundwork for a seamless transition into martial law under a totalitarian state of government has been laid. And local law enforcement, which has already been serving as a de facto military force, will be the key to maintaining martial law under a police state. Given the interconnectedness of our federal, state and local agencies, you can be sure that all of this will happen quickly. All that is needed is another threat to national security--a so-called "catastrophic event." Under the Bush administration, the danger was terrorism. Under the Obama administration, the economy is being posed as the greatest threat to national security. This danger was made clear in a U.S. Army War College report issued last fall. As Hedges reports, "The military must be prepared, the document warned, for a 'violent, strategic dislocation inside the United States,' which could be provoked by 'unforeseen economic collapse,' 'purposeful domestic resistance,' 'pervasive public health emergencies' or 'loss of functioning political and legal order.' The 'widespread civil violence,' the document said, 'would force the defense establishment to reorient priorities in extremis to defend basic domestic order and human security.'" What does all this mean for you and me, the average citizen? When and if martial law is declared, freedom, as we have known it, will be obsolete. And don't expect much in the way of warning or help from the corporate media. As the war in Iraq showed, they are all too willing to be co-opted by the military for the sake of access and ratings. And there will be many Americans who won't know what's happening. They'll be too busy watching the latest entertainment spectacle and trying to guess the next American Idol. Thankfully, we have not yet reached the point of no hope. But it must be acknowledged that the average American simply does not have the ability to withstand a totalitarian government. Right now, all we can do is sound the alarm. Become educated. Form local citizens groups in your community. Educate your neighbors on their rights and inform them about the grave possibilities we face in the event of a government-declared emergency. Keep in almost near-constant contact with your representatives in Congress and voice your discontent. Most of all, stay informed and exercise your right to redress your grievances with the government while you still can. As abolitionist Wendell Phillips once proclaimed, "Eternal vigilance is the price of liberty--power is ever stealing from the many to the few.... The hand entrusted with power becomes ... the necessary enemy of the people. Only by continual oversight can the democrat in office be prevented from hardening into a despot."

Paul 2009-03-08T15:53:01Z B http://alt-money.tribe.net/thread/f61704c1-15d2-4d5b-bd7a-7b883f1c0a1c#ae2df8a5-a102-4e9b-8207-7defa274a5e7 2009-03-08T02:00:21Z 2009-03-08T02:00:21Z

All of this sounds too good to be true. It will be the only way to clear the decks so to speak of the current financial system and completely transform it to one that is sustainable. My preference is one without any fractional reserve banking and based on social credit. Let the government nationalize the fed and start issuing money the way it was intended to be. Without making the banking money interests more money. It can be turned around quickly if radical change is made. Otherwise there will be the lost decade or more of suffering while the financial system tries to put itself back the way it was.

B 2009-03-08T02:00:21Z Paul http://alt-money.tribe.net/thread/f61704c1-15d2-4d5b-bd7a-7b883f1c0a1c#3a1092e7-1aae-499c-a5e3-0ab2f97f1676 2009-03-07T18:43:19Z 2009-03-07T18:43:19Z

http://www.321gold.com/editorials/denninger/denninger030909.html Just so you have a short list of what's at stake if Washington DC doesn't change policy here and now (which means before the collapse in equities comes, which couldstart as soon as today, if the indicators I watch have any validity at all. For what its worth, those indicators are painting a picture of the Apocalypse that I simply can't believe, and they're showing it as an imminent event - like perhaps today imminent.) * All pension funds, private and public, are done. If you are receiving one, you won't be. If you think you will in the future, you won't be. PBGC will fail as well. Pension funds will be forced to start eating their "seed corn" within the next 12 months and once that begins there is no way to recover. . * All annuities will be defaulted to the state insurance protection (if any) on them. The state insurance funds will be bankrupted and unable to be replenished. Essentially, all annuities are toast. Expect zero, be ecstatic if you do better. All insurance companies with material exposure to these obligations will go bankrupt, without exception. Some of these firms are dangerously close to this happening right here and now; the rest will die within the next 6-12 months. If you have other insured interests with these firms, be prepared to pay a LOT more with a new company that can't earn anything off investments, and if you have a claim in process at the time it happens, it won't get paid. The probability of you getting "boned" on any transaction with an insurance company is extremely high - I rate this risk in excess of 90%. . * The FDIC will be unable to cover bank failure obligations. They will attempt to do more of what they're doing now (raising insurance rates and doing special assessments) but will fail; the current path has no chance of success. Congress will backstop them (because they must lest shotguns come out) with disastrous results. In short, FDIC backstops will take precedence even over Social Security and Medicare. . * Government debt costs will ramp. This warning has already been issued and is being ignored by President Obama. When (not if) it happens debt-based Federal Funding will disappear. This leads to... . * Tax receipts are cratering and will continue to. I expect total tax receipts to fall to under $1 trillion within the next 12 months. Combined with the impossibility of continued debt issue (rollover will only remain possible at the short duration Treasury has committed to over the last ten years if they cease new issue) a 66% cut in the Federal Budget will become necessary. This will require a complete repudiation of Social Security, Medicare and Medicaid, a 50% cut in the military budget and a 50% across-the-board cut in all other federal programs. That will likely get close. . * Tax-deferred accounts will be seized to fund rollovers of Treasury debt at essentially zero coupon (interest). If you have a 401k, or what's left of it, or an IRA, consider it locked up in Treasuries; it's not yours any more. Count on this happening - it is essentially a certainty. . * Any firm with debt outstanding is currently presumed dead as the street presumption is that they have lied in some way. Expect at least 20% of the S&P 500 to fail within 12 months as a consequence of the complete and total lockup of all credit markets which The Fed will be unable to unlock or backstop. This will in turn lead to... . * The unemployed will have 5-10 million in direct layoffs added within the next 12 months. Collateral damage (suppliers, customers, etc) will add at least another 5-10 million workers to that, perhaps double that many. U-3 (official unemployment rate) will go beyond 15%, U-6 (broad form) will reach 30%. . * Civil unrest will break out before the end of the year. The Military and Guard will be called up to try to stop it. They won't be able to. Big cities are at risk of becoming a free-fire death zone. If you live in one, figure out how you can get out and live somewhere else if you detect signs that yours is starting to go "feral" - witness New Orleans after Katrina for how fast, and how bad, it can get. The good news is that this process will clear The Bezzle out of the system. The bad news is that you won't have a job, pension, annuity, Social Security, Medicare, Medicaid and, quite possibly, your life. It really is that bleak folks, and it all goes back to Washington DC being unwilling to lock up the crooks, putting the market in the role it has always played - that of truth-finder, no matter how destructive that process is. Only immediate action from Washington DC, taking the market's place, can stop this, and as I get ready to hit "send" I see the market rolling over again, now down more than 3% and flashing "crash imminent" warnings. You may be reading this too late for it to matter. Mar 5, 2009 Karl Denninger

Paul 2009-03-07T18:43:19Z