US now Bankrupt

Update March 24, 2009
The FED announced this week that they are going to print a second Trillion Dollars to fund the bankrupt Obamanation. The bankrupt US government is rapidly heading toward runaway inflation. If you are holding dollars, you have very little time left to switch to hard currency, or material such as whiskey, food, or real property.

Original Article March 18, 2009
The news report reads, “WASHINGTON – The Federal Reserve announced Wednesday it will spend up to $300 billion over the next six months to buy long-term government bonds, a new step aimed at lifting the country out of recession by lowering rates on mortgages and other consumer debt.”

What that means is that the US Government is now officially bankrupt. For most of the past century the US Treasury has held a weekly bond auction selling its debts to anyone who would lend them the money. The auction price of bonds translates into the interest rate that must be paid on the money. For several decades the US Government starts by selling enough bonds to pay back the short term bonds that are due this week. Then they sell more bonds to finance new government spending beyond its means. That has worked as long as there were people willing to lend them money, people who believed that they could pay the money back by collecting taxes or selling new bonds. Holders of US Treasury bonds are private investors, international banks, and the governments of several nations like China and Saudi Arabia.

In the past few weeks the Obamanation has spent money far beyond the ability of the US Government to borrow. Investors at the bond auction are not buying the bonds as fast as Obama can print them. Investors, including foreign governments, do not believe that the US can pay back the bonds. So they haven’t been buying bonds, aren’t willing to lend more cash down a rat hole.

The announcement that the Federal Reserve Bank will buy bonds is an announcement that the government can no longer pay back its debts. The FED is the keeper of US money. This announcement means that the FED will “print” money for the US government. By “print” money it means that they will write some really big numbers with a lot of zeros on a checking account of the Department of the Treasury. The “money” just appears out of thin air by the stroke of a keyboard at the FED, but it has grave consequences for the rest of us. They are writing worthless checks from a checking account that has no money.

It is clear evidence that big money investors and other nations no longer believe that the US dollar is sound enough to pay back its debts, and in fact it is not. It means that every dollar you own and have in your account just shrank by a proportional value. It means that the government is desperate. The Titanic has hit an iceberg, its sinking fast, and its watertight bulkheads have not kept it afloat. Run to the lifeboats. Hoard food and trade goods.

The lessons of history

It's getting scary. Obama is talking about “getting past” Constitutional limits, and Biden has warned us that within 6 months they will create a crisis and take action that most Americans will believe is wrong. It sounds more and more like the 1930s rise to power of the German National Socialist Labor Party. Half of Americans are worshiping the future dictator, he is the Messiah, the god incarnate. Some black churches are alrady praying to him. Within 6 months of the election they will create a crisis and overturn the Constitutional limits on his power, declaring Obama as the supreme power in the US, der Furor to use the German term.

An interview -- conducted by Chicago Public Radio in 2001, while Obama was an Illinois state senator and a law professor (lecturer) at the University of Chicago

Obama said, "The Supreme Court never ventured into the issues of redistribution of wealth and sort of basic issues of political and economic justice in this society, and to that extent as radical as people try to characterize the Warren Court, it wasn't that radical."

"It didn't break free from the essential constraints that were placed by the founding fathers in the Constitution, at least as it has been interpreted.

"And the Warren court interpreted it generally in the same way -- that the Constitution is a document of negative liberties, says what the states can't do to you, says what the federal government can't do to you, but it doesn't say what the federal government or state government must do on your behalf, and that hasn't shifted.

"And I think one of the tragedies of the civil rights movement was that the civil rights movement became so court-focused, I think there was a tendency to lose track of the political and organizing activities on the ground that are able to bring about the coalitions of power through which you bring about redistributive change, and in some ways we still suffer from that," Obama said.

Within 6 months of taking office Obama is planning to assume total power in the US, equal to Napoleon, Stalin, Julius Caesar, or Hitlar. Within a year after taking power Obama will begin shifting wealth, confiscating property, sending white men to work camps, and beginning the racial genocide that is at the heart of black radicalism.

You have very little time before the election to stockpile ammunition and hide your arms. Be afraid, be very afriad.

Selling Out and Getting Out – The Obamanation

Wall Street investors are selling out and getting out of the USA in massive numbers. Trillions of dollars of the “smart money” is dumping American stocks and expatriating before the upcoming elections. Investors, those with money to lose, are very scared of the “CHANGE” that the Indonesian Muslim Communist has promised if he gets elected. The DOW is down another 300 points today, already at levels not seen since the 1980s.

Obama intends to “CHANGE” the US in ways that none of the veterans of WW II could have imagined. Our Constitutional limits on government have been largely ignored for most of the past century, but Obama plans to officially abandon it, CHANGE. A free market or a largely free market has been the engine that powers American prosperity. Obama plans to “share the wealth,” which means he intends to replace the free market with a communist economy. The blue gun thugs will love the Obamanation because police state control of our lives will be greatly expanded, but any white man trying to support his family will be in real trouble. Even hard working black men will be in trouble for their votes. One of the first laws to be passed will unionize small businesses, which, in addition to greatly raising their taxes, will drive most of them out of business.

The smart money and the wealthy are expatriating in massive and completely unprecedented numbers. Anyone with good sense and the ability to do so is getting out now -- while they still can.

Of course a communist economy doesn't produce enough wealth to “share the wealth” as the Obamanation expects. You can only rob a rich man once. His wealth soon evaporates into the ever hungry mouths of the lazy welfare queens who expect papa government to support her and her several bastard kids. Much of it disappears in the government bureaucracy and blue gun thugs armies needed to control the people.

The economy will stop. Food and energy will not be produced and distributed. Bread lines typical of the former Soviet Union will appear in every city. State governments will fail. Already, the most liberal states are in big trouble. California has not been able to pay for all the benefits they have promised their people, yet they continue to make more promises. An Obamanation is likely to fall rapidly into complete economic collapse, and come apart into separate states or groups of states in a manner similar to what happened to the former Soviet Union. Communism, when followed to its inevitable conclusion, leads to starvation, famine, and national collapse.

The only good result of the coming disaster for America is that after the starving times, and after the war, we may be able to rebuild a good nation based on real leadership, without female suffrage, without universal suffrage, without voting by every stupid idiot who wants more and more government support, who wants to "share the wealth" of any man foolish enough to work. Universal suffrage inevitably leads to national collapse by voting some really stupid “share the wealth” robbery of anyone who creates wealth. Only those who own land and have a vested stake in the future of the economy should be allowed to vote. After the collapse of the former United States, those men who survive may be able to rebuild a new nation based on leadership and good sense.

You want “CHANGE” America? You are going to get it if Obama is made President with a Democratic/Communist Congress.

The south of France looks better and better. If you stay, hide your arms, and stock up on ammunition.

Be afraid. Be very afraid.
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Investment Opportunity

The meltdown in the US housing market has caused financial ripples across the globe. The so-called “housing bubble” burst and the fallout is continuing. The bubble began several years ago when the US government (Read Democrats in Congress) passed a law encouraging banks to lend huge sums of money to buyers who had no job and no real prospect of paying back the money. The new lower credit rules were augmented by the FED's low interest rates. Many buyers borrowed money for homes on Adjustable Rate Mortgages, loans with monthly payments that rapidly would become too high for the borrowers.

The other major factor fueling the “housing bubble” was massive and uncontrolled immigration. In 10 years the US government allowed 20 million illegal immigrants to move into the US. Twenty million new residents need something like 10 million housing units. The illegals tended to occupy the lowest priced housing in lower class neighborhoods. They took over 10 million homes and apartments where that hard working Americans had been living. That left 20 million hard working Americans being forced to pay untenable amounts to buy (or rent) homes that they could not afford.

People tend to think of houses as a fixed commodity, but overall houses are just as subject to the economic laws of supply and demand as any other product. A house has a residual value based on the hours of labor, cubic feet of concrete, board feet of lumber, etc. But when the available homes suddenly have 20 million more people wanting homes than there are homes available the price people will pay for a home is driven up and up beyond its residual value.

With the government allowing massive and uncontrolled immigration and concurrently encouraging uncontrolled lending to unqualified home buyers the demand for homes far outstrips the number of available homes. The prices for homes went up far beyond any reasonable or rational price in several parts of the US. Banks that had made loans on these properties, often at 100% of the street bid, were in a massively risky position. Greedy lenders knew that it would crash, but each of them was trying to make a fortune and get out, leaving the financial mess for someone else. It wouldn't last forever. It never does.

By about 2005 several factors were coming together to end the housing bubble. First, the government was finally beginning to respond to citizen demands to finally get control on immigration. Some were being deported. A fence was being built on the southern border. And the oil fueled economy of Mexico was providing jobs at home. Instead of millions of new immigrants demanding millions more housing units every year, the number of immigrants in the US became more stable and even declined in some areas. New housing construction began catching up with the demand for housing space. Sellers had to compete with each other for buyers. People now has an option to buy a less expensive home down the street, and the massive shortage driven inflation in housing prices came to a screeching halt.

Suddenly there was more homes than occupants in areas that has a serious housing shortage just the year before. The massively over inflated prices no longer had buyers taking homes at any price asked. Banks and other lenders found themselves holding paper on houses that were actually worth a lot less than they had loaned on them. About the same time, the FED raised interest rates a few points. Payments on all the Adjustable Rate Mortgages doubled just about overnight. Hundreds of thousands of hard working Americans could not afford to make payments on a $500,000 home at 8% or 10% interest.

So the greedy bankers, or often the banking corporations that the now-wealthy managers had abandoned, were left holding a lot of worthless paper and abandoned over-priced homes. The financial fallout of greed and corruption by bankers and our government will continue for a while. Housing prices will continue to fall until they reach some actual basis related to the cost of construction. The government will try to bail out the remnants of the greedy lenders. The government will not help the millions of hard working Americans who lose their homes. Instead the government will focus on the illegal aliens and low life scum who should never have been able to compete for over priced housing in the first place.

For a wise investor this is an opportunity to buy. The oldest economic theory for making money in housing, or in stocks, is “Buy low and Sell high!” Most people invest high and sell low. Millions of home owners and real estate investors have lost their shirt by buying high and selling low. In a down turn there will be bank repo homes that are liquidated far below their residual value. The over sold condition will drive down prices below residual value for a short time. Now is a good time for investors to buy low in the real estate markets. It is also a time for investors to buy stocks. The financial crisis created by the colapse of greedy bankers has driven down stock prices to a lower than residual value position. A wise investor does not join the herd of losers sellng stocks at a loss. A wise investor starts buying when eveyrone else is selling. Its time to buy.

It is an ill wind that blows no good for anyone. A crash of markets can be profitable if you don't panic. You can make money while others are losing theirs. Buy their panic sales at cheap prices and grow rich.