Friday, July 3, 2015

Sovereign Bond Market Caca

Greece and the Cemetery for your Wealth by Larry Edelson, July 1, 2015, Money and Markets
The Greek default is merely the opening act of the worst sovereign-debt crisis in history. By the  time it comes to its conclusion, roughly five years from now, the crisis will  have enveloped — and destroyed — the Western world governments of Europe, Japan  and the United States.
Government (sovereign) bond markets will be destroyed. So much so  that in the June issue of my Real Wealth  Report, I told my subscribers that  ...
Over the next few years I expect government bonds to easily lose as much as 50 percent of their value, and possibly much more. No amount of yield they could possibly offer will save you. Not even if you live to 200 years old.
Owning any sovereign debt of Europe, Japan, or the United States, I said, would be akin to creating a cemetery for your wealth.
From Greece, the crisis will spread to the other heavily indebted countries of Europe and the European Union.
Take Italy, for instance, which owes 32 percent more than its  economy produces in a year. Portugal, 30 percent more. Cyprus, 8 percent more.  France, indebted to the tune of 98 percent of its GDP. Ireland, 110 percent.
And those figures don't even include "unofficial" debts and IOUs, which are multiples higher.
As Europe starts to go down the drain, the crisis will then spread to Japan, where government debt is a whopping 230 percent of the country's GDP.
And once it becomes obvious that Japan too will eventually default, Washington will no longer be spared.
The most indebted government in the history of civilization, Washington, is in debt to the tune of more than $200 TRILLION — more than ELEVEN times the entire output of our economy.
Let me give you a little more insight on the sovereign debt crisis that's now starting. Also from my June Real Wealth Report, the big question I pose — and answer — is this  ...
Where Will the Massive Capital That Flees Government Bonds Go?
The frightened trillions that will stampede out of government bond markets has to go somewhere. So let's trace it out logically. Will the capital that flees government bonds in Europe, Japan and the United States go to ...In the long run, conditions are bullish for U.S. stocks.
A. Cash under the mattress? Some of it, yes. But certainly not the bulk. Savvy investors always want to put their money to work somewhere for some yield and potential gains — even in the worst of times.
B. The stock market? Yes, a major portion of it will be invested in the U.S. stock market. We've already seen it impact the stock market. It's the chief reason the major indices are so firm.
It does not preclude a selloff in stocks, which I still fully expect. Especially as jitters over a looming Fed rate hike continues.
But in the longer run, the implosion of government bond markets is going to be extremely bullish for the U.S. stock market.
The U.S. stock markets are the last bastion of capitalism, and the deepest liquid market on the planet.
C. Real estate? Absolutely. Don't fall for any claims that rising interest rates — as a result of falling bond prices — will kill the real estate market again. It won't. It will largely have the opposite impact, driving real estate prices higher!
How so? It's simple: As the cost of mortgage money begins to rise, pent up demand for property will come pouring out of the woodwork. After all, if rates are going to rise, then you're far better off buying now rather than later.
Naturally, different locations in the U.S. and around the world  will fare differently. And you want to buy real estate based on location.
But to think that real estate will implode as interest rates start  to rise and the sovereign bond markets implode is simply dead wrong. Real estate, as a tangible asset, is going to do just fine, opening up all kinds of new opportunities for you.
D. Foreign stock markets? Over the next few years you will see Asia's markets double and even triple, offering incredible opportunities, largely due to a wholesale exodus of capital out of Western government bond markets.
E. Natural resources? Although deflation still has the upper  hand on a macroeconomic basis, and will for some time, mark my words ...
In the not-too-distant  future, capital will become so frightened over the collapse of the Western  world's government bond markets — and the inevitable bankruptcy of Europe,  Japan and the U.S. — that ...
Natural resources, gold,  silver, oil, coal, copper, nickel, food, timber, water, platinum, palladium,  and more ... will once again, explode higher.
Not because of inflation. But because the world's largest governments will be going down the tubes. It's coming, and it's not far off.
All governments at all levels must freeze hiring and begin to reduce their spending to bring their debt levels down. This should prompt a wholesale abandonment of UN Agenda 21 implementation, carbon tax and all the government cash this monster eats.
Norb Leahy, Dunwoody GA Tea Party Leader

Puerto Rico Drowning in Debt

US will not help, by Alice Greene, July 2, 2015
An announcement Monday confirmed that the US will not be bailing out Puerto Rico. The island country faces a $72 billion debt due Wednesday, July 1st.  Puerto Rican Governor Alejandro Garcia Padilla admits to The New York Times: “The debt is not payable.” 
To put things into perspective, $72 billion is nearly 100% of the island nation’s annual economic output. “This is not politics, this is math,” says Padilla. The Governor hopes to restructure the debt under the US bankruptcy code as it faces running out of cash. 
According to Padilla, the goal would be to negotiate with bondholders, hopefully postponing the payments long enough for Puerto Rico to create jobs and accelerate its economy. 
But the situation is complicated. Default isn’t an option because according to US law, states cannot declare bankruptcy (only cities). Puerto Rico is classified as “commonwealth" - neither state nor city - making it unclear how this problem is to be solved. 
According to Josh Earnest, White House press secretary, the administration is hoping Congress will approve a bankruptcy “mechanism” under Chapter 9 that would allow Puerto Rico’s public corporations to declare bankruptcy. He also admitted: “There’s no one in the administration that’s contemplating a federal bailout of Puerto Rico.” 
A recent analysis shows that this US quasi-colony has seen virtually zero economic growth since the closure of Section 936 in 1996 pushed most US corporations off the island. 
On top of that, the North American Free Trade Agreement eliminated the island’s advantage as a Latin American country with free, easy access to US markets. Add the combination of rising oil prices, removal of tax preferences from manufacturers, a housing price bust, and the 2009 mainland recession in the US and you get a 14% unemployment rate with over 30,000 citizens fleeing the island every year. 
And it’s not just Puerto Rico suffering. The municipal bonds making up the debt went into nearly 2/3 of all the pensions and retirement plans in the US. These plans are at risk of losing billions. 
Throughout this string of bad luck, Puerto Rico’s shocking lack of responsibility led to decades of overspending and borrowing. If Congress were to pass a law allowing Puerto Rico to declare bankruptcy – similar to what happened with Detroit in 2013 – the country could start to restructure the debt. The stakes are simply too high for us to turn our backs now.   
Prior to 1996, IRS Section 936 provided Tax Credits to corporations operating in Puerto Rico. In 1996, these tax credits were removed from this section. Corporations left to cut costs and citizens left to find employment.
The Puerto Rican government should have then frozen hiring and established a decreasing budget plan. They did not do enough to avoid this debt.  Instead they continued to overspend by a total of $72 billion while their GDP declined.
Norb Leahy, Dunwoody GA Tea Party Leader

Greek Food Shortage

There is no money, so Greek grocery stores are not ordering more truckloads of food to restock their shelves. Greek food imports are sitting on the dock. There is no money, so all other Greek businesses are not ordering more truckloads of anything to restock their warehouses. 

Norb Leahy, Dunwoody GA Tea Party Leader

Gay End Game

The radical homosexual Left’s “Big Fish”
7/2/15, Grassfire
In Grassfire's previous message, we identified the radical Left's next targets in their relentless battle for gay rights. But today, we have information about an even bigger "fish" that Progressives have in their sights.
In the great American epic novel "Moby Dick," Captain Ahab is obsessed with killing the massive white whale. His hatred and compulsion blinds him to all else. The radical, homosexual Left have a "white whale" of their own in their sights: the tax-exempt status of churches, ministries and other religious organizations.
The mainstream media wasted no time jumping into the fight in support of the LGBTQ agenda. Our previous message told you about a Saturday story in The New York Times. On Sunday, followed suit, posting an article entitled "Now's the Time to End Tax Exemptions for Religious
Institutions." Here's an excerpt:
Rather than try to rescue tax-exempt status for organizations that dissent from settled public policy on matters of race or sexuality, we need to take a more radical step. It's time to abolish, or greatly diminish, their tax-exempt statuses.
The author, Mark Oppenheimer, argues that Friday's same-sex marriage ruling "makes it clearer than ever that the government shouldn't be subsidizing religion and non-profits." While he accurately questions the Internal Revenue Service's responsibility of deciding what's a religion, Oppenheimer also states that tax-exemptions have "entangled church and state in the worst way."
Grassfire disagrees. That status frees churches and ministries from the government -- morally, financially and philosophically -- and must be protected!
Same-Sex Marriage Is Not The "End Game"
Americans must understand that legitimizing same-sex marriage is not the "end game" for the homosexual Left. They want to force Americans to accept and endorse their ENTIRE agenda. Any person or organization who
disagrees with them on any level risks punishment, ridicule and censorship. Now, that the LGBTQ community has the Supreme Court on their side, what's to stop them from attacking and ostracizing people of faith who reject same-sex unions and support natural marriage instead?
Some conservatives and people of faith have pointed to a section on the second-to-last page of Justice Anthony Kennedy's 28-page opinion for a sliver of hope. He wrote:
Finally, it must be emphasized that religions, and those who adhere to religious doctrines, may continue to advocate with utmost, sincere conviction that, by divine precepts, same-sex marriage should not be condoned. The First Amendment ensures that religious organizations and persons are given proper protection as they seek to teach the principles that are so fulfilling and so central to their lives and faiths, and to their own deep aspirations to continue the family structure they have long revered.
But that hope only exists if we can trust the Supreme Court to actually uphold the Constitution, rather than bend the founding document to the justices' own wills and purposes. That's what Justices Kennedy, Ginsburg, Breyer, Sotomayor and Kagan have done in redefining marriage. By brute will of judicial tyranny, those five have shifted the moral, legal and cultural "center" of our civilization in the most dangerous
and damaging High Court ruling since Roe v. Wade legalized abortion. What Happens Next?
Christian bakers, florists, photographers and others have already faced fines, penalties and lawsuits for refusing to participate in same-sex weddings. Last week's ruling will surely make things worse for any person of faith who refuses to accept this "new normal." How long before pastors, churches and ministries are punished or refusing to perform, endorse or support same-sex marriages? What happens when religious institutions speak about homosexuality as the sin the Bible says it is?
This fight is far from over! If you still believe that marriage is and should only be defined as the union of ONE MAN and ONE WOMAN, then Grassfire is calling you to political and cultural "arms." If you are concerned that you religious freedom is at risk due to this unconstitutional "creation" by the Supreme Court, Grassfire is challenging you to take a stand.
We must do what true patriots did after the infamous Dred Scott decision upheld the evil institution of slavery. We can formally REJECT the Supreme Court decision and DEFEND NATURAL MARRIAGE. So, that's what we're asking you to do.
The Supreme Court has once again overstepped its intended purpose by legislating its morality from the bench! Those five justices have NO AUTHORITY to define or redefine marriage
Grassfire believes that "an unjust law is no law at all" (St.
Augustine, A.D. 354-430). We also stand with Thomas Jefferson who wrote: "If a law is unjust, a man is not only right to disobey it, he is obligated to do so."
REJECT The Supreme Court And Stand For "Natural Marriage" < U=591180&CID=201366&RID=43940297>
Source: Grassfire

Healthcare Cost Spiral

It started in 1900 with socialist demands that workers’ hospital bills be paid for them by the company.  During World War II, the US government imposed wage controls and told everybody to work themselves to death for the war effort.  Companies, flush with freshly printed government cash decided to offer health insurance to workers.  The Congress made this benefit non-taxable and our fate was sealed.  We would no longer be responsible for ourselves.  But healthcare was still under the control of the Churches and Charities, so, healthcare costs remained low…until the 1960s.  There were propaganda campaigns reminding us to not hurt ourselves, but no mandates….until the 1960s.
For the poor, counties had public clinics and physicians had charity practices…until the 1960s.
In the 1960s we got Medicare, then Medicaid and healthcare costs began to rise.  In the 1970s the Churches and Charities sold most of their hospitals and costs really skyrocketed. Expensive equipment became available and medical specialization became the path forward.
In the 1980s, socialists complained about the county clinics and declared that hospitals had to admit indigent patients for treatment and costs went into the stratosphere.
Then came an uninterrupted barrage of Laws enacted to protect us from ourselves and lawsuits to close down anything that was fun.
We were no longer free to harm ourselves and pay for it.  Now we had a truck-load of “partners” who were paying for our healthcare and they wanted to micromanage us. 
The primary beneficiaries of this debacle were the medical device manufacturers and big pharmaceutical companies and malpractice lawyers and all the parasites who follow this caravan.  Their products would not have found a buyer had this not been a 3rd party payer scam.
There have been no cures or useful drugs produced since the 1950s. US drinking water was chlorinated in 1908 and penicillin was discovered in 1928. Polio vaccine was developed in 1955.
In the end, in the 1960s, we got hurt more than helped by this “healthcare transformation”.  Socialists are ecstatic, but the US government is broke.
I started my career in the 1960s and always viewed my employee-paid portion of my company health insurance more as my contribution to medical science.
Our Freedom and self-reliance eroded and our costs went up every time government caved-in to socialist Bills.   
We will be much better off if we can get government out of the healthcare business and give it to the free market to fix.
Norb Leahy, Dunwoody GA Tea Party Leader

Bad Supreme Court Decision on Obamacare

The Supreme Court’s Horrifying Decision Regarding Obamacare
No longer does the Supreme Court really to protect the people.
In their most recent ruling on the Affordable Healthcare Act, 6 justices voted against 3 to allow Obamacare to survive yet again.
This means millions of Americans will be given the opportunity to receive taxpayer supported health insurance at the expense of millions more.
The problem here is how the Supreme Court went out of their way to redefine the law.
Breitbat writes:
The majority acknowledged that the word “State” was, at best, “ambiguous.” And it rejected the idea that an executive agency, in this case the Internal Revenue Service, could decide the meaning of that term.
Rewriting the law is evidently meant for the courts, not the administration–or Congress.
The majority–led, again, by Chief Justice John Roberts, who infamously interpreted a “penalty” as a tax to uphold Obamacare’s constitutionality in 2012–held that the “context” of the word “State” mattered more than the “most natural reading.”
And the context was that Obamacare had to be saved from itself. After all, Congress could not have meant to pass a bad, self-defeating policy, could it?
The dissent, by Justice Antonin Scalia, was blistering.
“Words no longer have meaning if an Exchange that is not established by a State is ‘established by the State,'” he wrote.
“Under all the usual rules of interpretation, in short, the Government should lose this case. But normal rules of interpretation seem always to yield to the overriding principle of the present Court: The Affordable Care Act must be saved.”
If a law was badly formulated, that was not the Court’s problem, he argued. It was up to Congress to rescue the subsidies for Obamacare, not the Justices. And if people did not like it, tough: that was why the Justices were meant to serve life terms. They were meant to be above politics.
Instead, Scalia noted, the Court had adopted a particular political bent.
He concluded:
We should start calling this law SCOTUScare.
Perhaps the Patient Protection and Affordable Care Act will attain the enduring status of the Social Security Act or the Taft-Hartley Act; perhaps not. But this Court’s two decisions on the Act will surely be remembered through the years….And the cases will publish forever the discouraging truth that the Supreme Court of the United States favors some laws over others, and is prepared to do whatever it takes to uphold and assist its favorites.
It looks like if anything most of congress as well as the Supreme Court are firmly in the executives’ pocket.
Rarely does the Supreme Court rule agains the President, and if they do it’s generally on something relatively small and insignificant.
Do you think the legislation has a chance of being repealed if a Republican wins in 2016? Or will the GOP allow it to continue forward?

Teach Kids about Freedom

The Last Rebels: 25 Things We Did as Kids That Would Get Someone Arrested Today, by Daisy Luther The Organic Prepper June 17, 2015
With all of the ridiculous new regulations, coddling, and societal mores that seem to be the norm these days, it’s a miracle those of us over 30 survived our childhoods.
Here’s the problem with all of this babying: it creates a society of weenies.
There won’t be more more rebels because this generation has been frightened into submission and apathy through a deliberately orchestrated culture of fear. No one will have faced adventure and lived to greatly embroider the story
Kids are brainwashed – yes, brainwashed – into believing that the mere thought of a gun means you’re a psychotic killer waiting for a place to rampage.
They are terrified to do anything when they aren’t wrapped up with helmets, knee pads, wrist guards, and other protective gear.
Parents can’t let them go out and be independent or they’re charged with neglect and the children are taken away.
Woe betide any teen who uses a tool like a pocket knife, or heck, even a table knife to cut meat.
Lighting their own fire? Good grief, those parents must either not care of their child is disfigured by 3rd-degree burns over 90% of his body or they’re purposely nurturing a little arsonist.
Heaven forbid that a child describe another child as “black” or, for that matter, refer to others as girls or boys. No actual descriptors can be used for the fear of “offending” that person, and “offending” someone is incredibly high on the hierarchy of Things Never To Do.
“Free range parenting” is all but illegal and childhood is a completely different experience these days.
All of this babying creates incompetent, fearful adults.
Our children have been enveloped in this softly padded culture of fear, and it’s creating a society of people who are fearful, out of shape, overly cautious, and painfully politically correct.  They are incredibly incompetent when they go out on their own because they’ve never actually done anything on their own.
When my oldest daughter came home after her first semester away at college, she told me how grateful she was to be an independent person. She described the scene in the dorm.  “I had to show a bunch of them how to do laundry and they didn’t even know how to make a box of Kraft Macaroni and Cheese,” she said.  Apparently they were in awe of her ability to cook actual food that did not originate in a pouch or box, her skills at changing a tire, her knack for making coffee using a French press instead of a coffee maker, and her ease at operating a washing machine and clothes dryer.  She says that even though she thought I was being mean at the time I began making her do things for herself, she’s now glad that she possesses those skills.  Hers was also the room that had everything needed to solve everyday problems: basic tools, first aid supplies, OTC medicine, and home remedies.
I was truly surprised when my daughter told me about the lack of life skills her friends have.  I always thought maybe I was secretly lazy and that was the basis on my insistence that my girls be able to fend for themselves, but it honestly prepares them for life far better than if I was a hands-on mom that did absolutely everything for them.  They need to realize that clothing does not get worn and then neatly reappear on a hanger in the closet, ready to be worn again. They need to understand that meals do not magically appear on the table, created by singing appliances a la Beauty and the Beast.
If the country is populated by a bunch of people who can’t even cook a box of macaroni and cheese when their stoves function at optimum efficiency, how on earth will they sustain themselves when they have to not only acquire their food, but must use off-grid methods to prepare it? How can someone who requires an instruction manual to operate a digital thermostat hope to keep warm when their home environment it controlled by wood they have collected and fires they have lit with it?  How can someone who is afraid of getting dirty plant a garden and shovel manure?
Did you do any of these things and live to tell the tale?
While I did make my children wear bicycle helmets and never took them on the highway in the back of a pick-up, many of the things on this list were not just allowed, they were encouraged. Before someone pipes up with outrage (because they’re *cough* offended) I’m not suggesting that you throw caution to the wind and let your kids attempt to hang-glide off the roof with a sheet attached to a kite frame. (I’ve got a scar proving that makeshift hang-gliding is, in fact, a terrible idea). Common sense evolves, and I obviously don’t recommend that you purposely put your children in unsafe situations with a high risk of injury.
But, let them be kids. Let them explore and take reasonable risks. Let them learn to live life without fear.
Raise your hand if you survived a childhood in the 60s, 70s, and 80s that included one or more of the following, frowned-upon activities (raise both hands if you bear a scar proving your daredevil participation in these dare-devilish events):
  1. Riding in the back of an open pick-up truck with a bunch of other kids
  2. Leaving the house after breakfast and not returning until the streetlights came on, at which point, you raced home, ASAP so you didn’t get in trouble
  3. Eating peanut butter and jelly sandwiches in the school cafeteria
  4. Riding your bike without a helmet
  5. Riding your bike with a buddy on the handlebars, and neither of you wearing helmets
  6. Drinking water from the hose in the yard
  7. Swimming in creeks, rivers, ponds, and lakes (or what they now call *cough* “wild swimming“)
  8. Climbing trees (One park cut the lower branches from a tree on the playground in case some stalwart child dared to climb them)
  9. Having snowball fights (and accidentally hitting someone you shouldn’t)
  10. Sledding without enough protective equipment to play a game in the NFL
  11. Carrying a pocket knife to school (or having a fishing tackle box with sharp things on school property)
  12. Camping
  13. Throwing rocks at snakes in the river
  14. Playing politically incorrect games like Cowboys and Indians
  15. Playing Cops and Robbers with *gasp* toy guns
  16. Pretending to shoot each other with sticks we imagined were guns
  17. Shooting an actual gun or a bow (with *gasp* sharp arrows) at a can on a log, accompanied by our parents who gave us pointers to improve our aim. Heck, there was even a marksmanship club at my high school
  18. Saying the words “gun” or “bang” or “pow pow” (there actually a freakin ’CODE about “playing with invisible guns”)
  19. Working for your pocket money well before your teen years
  20. Taking that money to the store and buying as much penny candy as you could afford, then eating it in one sitting
  21. Eating pop rocks candy and drinking soda, just to prove we were exempt from that urban legend that said our stomachs would explode
  22. Getting so dirty that your mom washed you off with the hose in the yard before letting you come into the house to have a shower
  23. Writing lines for being a jerk at school, either on the board or on paper
  24. Playing “dangerous” games like dodgeball, kickball, tag, whiffle ball, and red rover (The Health Department of New York issued a warning about the “significant risk of injury” from these games)
  25. Walking to school alone
Come on, be honest.  Tell us what crazy stuff you did as a child.
Teach your children to be independent this summer.
We didn’t get trophies just for showing up. We were forced, yes, forced – to do actual work and no one called protective services. And we gained something from all of this.
Our independence.
Do you really think that children who are terrified by someone pointing his finger and saying “bang” are going to lead the revolution against tyranny? No, they will cower in their tiny apartments, hoping that if they behave well enough, they’ll continue to be fed.
Do you think our ancestors who fought in the revolutionary war were afraid to climb a tree or get dirty?
Those of us who grew up this way (and who raise our children to be fearless) are the resistance against a coddled, helmeted, non-offending society that aims for a dependent populace. In a country that was built on rugged self-reliance, we are now the minority.
Nurture the rebellion this summer. Boot them outside Get your kids away from their TVs, laptops, and video games. Get sweaty and dirty. Do things that makes the wind blow through your hair. Go off in search of the best climbing tree you can find. Shoot guns. Learn to use a bow and arrow. Play outside all day long and catch fireflies after dark. Do things that the coddled world considers too dangerous and watch your children blossom.
Teach your kids what freedom feels like.