Fatherland Security is well on the way to eliminating our
freedom. They want a Civilian Defense Force working thru
Neighborhood Watch Programs to profile citizens in their areas.
They’ll collect information such as name, address, DOB, medical
history, firearms ownership, religious affiliation, political party
and organization memberships. The AmeriCorp program will
become half political and half domestic Peace Corp. All
participants of course will be issued brown shirts. The funding for
all this and the Civilian Defense Force is $20 billion. The Freedom
Corp will be incorporated into the Neighborhood Watch
Association. Freedom Corp will be the surviving entity. Freedom
Corp reports to the Civilian Defense Corp, which reports to the
dreaded FEMA on a state level and other state emergency
agencies and law enforcement. The CDC will have paramilitary
powers for disaster cleanup, terrorist attack and to collect
dissidents. CDC will report to the Office of Fatherland Security.
Of course everyone will wear brown shirts. 80% of Americans
think this is just great. We advise all who disagree to go under
cover. Don’t make waves or argue. Just don’t let the Gestapo
know you have weapons or gold and silver. People like us will
keep you informed until we are sent to a concentration camp or
murdered. After that you are on your own. Set up single cell units
for protection. This type of cadre is tough to break into.
Leadership will string the cells together. Anyone who seems to be
an independent thinker will be shipped to an interment camp for
chemical rehabilitation. These potential enemies of the state will
be handled by a secret Internal Security unit structured along the
lines of the Gestapo and the KGB. The NSA & FBI will be used
for data collection and research. The FBI will be used to make
anyone’s life miserable who disagrees. The IRS will strike terror
into anyone who challenges the new world order. Banks will cut
off credit to contain dissidents.
The NSA, our old stomping ground is in for a five-fold increase in
its domestic surveillance satellite system, boasting phone
interception from two to 12 million calls simultaneously. There
will only be $3 billion allocated for sky marshals. As you can see
almost all the funds will be used for intelligence and
counterintelligence against American citizens. It is believed Posse
Commitatus will be voided and the government will implement
full militarization of domestic law enforcement. At this point the
government will attempt to confiscate all weapons. It is expected
that 150,000 National Guard troops will be committed
permanently to militarization of domestic law enforcement.
Foreign troops will be brought in to augment US troops to quell
domestic dissent and large uprisings. NATO AWACS’ planes will
be part of any containment program. These conditions will be
brought about by a deliberately planned financial collapse, which
has already begun. Terrorism is a cover to implement all these
policies. We have been hammering on this for years, but no one
wanted to listen. This is a game being played by the elitists to
control the world. We are the only armed free nation left and we
have to be destroyed. Get prepared to live on your knees or
become a dissident.
Criticism of the accounting practices of American companies has
caused selling of US corporate bonds to buy emerging-market
sovereign bonds, which we believe is a mistake. This debt is about
$500 billion of which, 75% is from Latin America. The switch has
reduced spreads 16% since the beginning of the year versus 3%
in high-grade US corporate debt versus US Treasuries. Sovereign
debt spreads have narrowed to 4.8% above US Treasuries from
5.73% in early January and US corporate debt spreads have
increased to 1.67% from 1.62%. Supposedly the risk of
emerging-market debt has dropped. We don’t think so. Buyers
are following the herd and being politically correct and they will
pay for their errors. The switch has produced an annualized gain
of 29% in foreign paper versus a negative 0.36% in US
corporates. Those among the buying favorites are Brazil, Ecuador
and Panama all junk and Poland, Czech Republic and Mexico.
Columbia’s bonds spread is up to 4.52% from 4.11% versus US
Treasuries due to warfare. You never chase a yield.
The coalition of corruption is at it again. Labor and democrats
and business and republicans have voted in the house to allow 11
million illegal aliens to obtain visas here and stay here
permanently. 92 of 123 Republicans opposed and 182 of 195
Democrats were for giving the bill a two-thirds majority.
Everyone gets green cards. This is a blatant attempt to buy
Mexican votes of course. Section 245(i), which we wrote about last
week, has been passed by the House. In America it pays to be a
criminal and it is a slap in the face for all those who have been
waiting for years to enter America legally. Our government is a
disgrace.
In spite of the Enron debacle an early warning system does not
exist and the regulatory and risk management systems in place
today are creating additional risk. Common standards and
market-based risk management encourage the herd mentality that
characterizes investment flows and increases the correlation
between events that spread instability through financial markets.
In the last two years hunt for yield has seen oceans of money flow
out of government bonds and into corporate bonds leaving the
Treasury and the financial system at the mercy of fickle foreign
investors. There are $3 trillion US Treasuries and $3.8 trillion in
corporate bonds outstanding. Presently corporate debt is being
issued at twice the rate of US government debt and a good part of
it is in the junk category. This will lead to liquidity black holes,
where the market appears liquid when you buy and becomes
illiquid when you want to sell. Liquidity and turnover are not
always synonymous. Liquidity is not about size, but about
diversity. This is part of what we call the liquidity trap. Our
regulatory systems are woefully inadequate at addressing the
distortions in financial markets. The system is pointed toward the
individual rather than the whole market. A two-pronged
approach is needed, without centralized control, or the system will
break down from time to time. There is also the interdependence
of markets and their participants. Conflict can create excessive
risk. Regulation must address contra-cyclical measures and
address the inherent contradictions between short-term risk
management and long-term investment objectives and allow a
greater role for counter-intuitive investors such as hedge funds.
Shorts, or investors that go against the flow, help to increase the
liquidity process and should not be regulated out of existence. We
need better regulation. The corporate world and the banking and
brokerage industries cannot be trusted to police themselves.
Just after George W. Bush flexed his nuclear muscles he deployed
his financial muscle by telling the EU and Japan to reflate their
economies (print fiat paper) or there would be further strains in
international trade relations. Items next on the agenda are
agriculture and semi-conductors. This is coercion and extortion
for the wrong reason, reinflation, but we love it because it cripples
free trade and puts in trade levies. Those taxes relieve us of
having to pay more taxes. Duties on imported foreign goods are
taxes. It is essentially financial-trade warfare. The administration
is saying shut up or we’ll really lower the boom on you. The EU
has asked for $2 billion in immediate compensation for steel curbs
in the form of lower barriers to other imports. Washington says,
take it to WTC, which they know won’t have a resolution for
three years; they are so tied up in bureaucracy and cronyism. A
socialist monstrosity. Rejected, the EU must decide if they’ll
escalate the dispute by retaliating against US exports. Let’s hope
they do. It will expedite the end of free trade and bring our
industry home again. We expect failure and a road back to tariffs,
but it won’t happen overnight.
JP Morgan will scale back some of its credit commitments to
highly rated clients. They say it is perception, we say they have
some serious problems, particularly in gold derivatives. They
want to start by capping credit lines. They know and fear
illiquidity and economic problems are on the way and they want
to limit exposure even to the best in corporate America. Does it get
any plainer than that? We are in a liquidity trap. This eventually
will have a bad effect on corporate operations and expansion,
which means no GDP growth. Big trouble is on the way.
First it’s the "axis of evil." Then its when in doubt nuke em. That
is how George W. Strangelove Bush sees it from Napoleonic
headquarters. We recently discovered we have a secret shadow
government, and now we find we have secret plans to nuke those
we consider a threat. The idea in no-win police actions is to lose
no troops. In order to do that you bomb the designated enemy
into submission. When that doesn’t work, and the American voter
won’t accept casualties, you just nuke them. Deterrent is one thing
but using nuclear weapons is another. They should only be used
as a last resort, not in some police action. An action that’s a cover
under the name of terrorism to suppress the American populace.
Our president is way off base and we know why. The question is
when are the American people going to catch on, or will they?
Insurance companies, fast on the trigger to protect their legal
bookmaking operation, are raising rates for professional liability
coverage. Rates are being raised as much as 70% and some are
being sent non-renewal notices. |
