HEADLINES

Thursday, October 7, 2010

Greenspan Says U.S. Deficit Is ‘Scary’ as Debt Climbs

Former Federal Reserve Chairman Alan Greenspan said the fiscal deficit in the U.S. is "scary" and the government needs to reduce entitlement programs.







Sent from my iPhone

Will election workers skew Friday job stats? - m.NYPOST.com

Found this interesting link on the Drudge Report:

Will election workers skew Friday job stats? - m.NYPOST.com

http://m.nypost.com/p/news/business/will_election_workers_skew_friday_MEqqwiA9I8tG6tNF5w42AP

Greenspan Says Fed Asset Purchases May Not Get ‘Money Moving’

Former Federal Reserve Chairman Alan Greenspan said more asset purchases by the central bank may not be enough to get "money moving" in the U.S. economy.







Sent from my iPhone

The ObamaCare Tumble….Obama Can Now Pick & Choose Who Must Play By The Rules

I love it…..the ObamaCare tumble:

As Obama administration officials put into place the first major wave of changes under the health care legislation, they have tried to defuse stiffening resistance — from companies like McDonald's and some insurers — by granting dozens of waivers to maintain even minimal coverage far below the new law's standards.

The waivers have been issued in the last several weeks as part of a broader strategic effort to stave off threats by some health insurers to abandon markets, drop out of the business altogether or refuse to sell certain policies.

Among those that administration officials hoped to mollify with waivers were some big insurers, some smaller employers and McDonald's, which went so far as to warn that the regulations could force it to strip workers of existing coverage.

At a time when the midterm elections are looming and Republicans have been vocal in campaigning against the law, reaction to the rollout has been closely watched.

To date, the administration has given about 30 insurers, employers and union plans, responsible for covering about one million people, one-year waivers on the new rules that phase out annual limits on coverage for limited-benefit plans, also known as "mini-meds." Applicants said their premiums would increase significantly, in some cases doubling or more.

These early exemptions offer the first signs of how the administration may tackle an even more difficult hurdle: the resistance from insurers and others against proposed regulations that will determine how much insurers spend on consumers' health care versus administrative overhead, a major cornerstone of the law.

David Whelan asks the obvious question. If all it takes for these companies to get out from under the ObamaCare monstrosity is to ask…can individuals ask and receive the same kind of generosity from our Socialist leaders?

I kinda doubt it.

Why are these 30 companies getting waivers and not all the others? It seems Obama and pals have found out first hand that this law is just unworkable as is. Just a matter of time before the obvious arbitrariness will be pointed out by the other million companies not getting a waiver.

What a clusterf&%k this Administration has been.








Sent from my iPhone

Scary Rumor: Democrat To Drop Out And Endorse Crist In Florida Senate Race

With more than three weeks left before election day there is still plenty of time for bad things to happen and there is a pretty solid rumor going on in Florida that something bad may indeed happen. According to some reports the Democratic candidate for Senator, Kendrick Meek may soon drop out of the race and throw his weight behind former Republican Independent Charlie Crist.

As of now Republican Marco Rubio has a 15% lead according to the latest Mason-Dixon poll with 42% of the vote, compared with 27% for Crist, and 21% for Meek, and 10% undecided. But according to some reports all of this may be about to change.

Republican leaders in the Sunshine State are fretting that a deal may be in the works to get Democratic nominee Kendrick Meek out of the Florida Senate race in order to boost Charlie Crist's flagging chances of beating Republican Marco Rubio.
This possibility has been discussed often over the past few weeks. And as Meek continued to sink in the polls the rumblings have gotten louder.  There is no way Meek will win, he will probably place third. If Crist could convince Meek to drop out, the supporters of the Democrat would likely move to Crist another liberal, rather than switch to Rubio.
Across the state, groups such as Palm Beach Democrats for Crist and Tampa Democrats for Crist are emerging. Republican fears are further stoked by the almost universal acknowledgment that Mr. Meek has almost no chance to win. Statewide polling has his support in the teens and falling. His money coffers are all but dry. Democrats had hoped that when Mr. Crist abandoned the GOP for an independent run, it would split the Republican vote and propel Mr. Meek into the winner's circle. With four weeks to go, no one believes that now. Mr. Meek, who is African-American, polls strongly only with black voters.
Meanwhile, Mr. Crist is striving to assemble a center-left coalition by winning over Democratic voters. His latest mailing throughout the state was titled "Ten Reasons Democrats Should Vote for Charlie Crist." On issues from health care to taxes, Mr. Crist has moved dramatically to the left.
Crist, the former Republican, has hinted if he won he would be a friend to the Democratic party.

Mr. Crist has also refused to say which party he would caucus with if he wins. His latest nonanswer: "I will caucus with the people." But Mr. Crist has met privately with Senate Majority Leader Harry Reid, adding to GOP paranoia that Democrats may be getting ready to throw the sure loser Mr. Meek over the side. One Republican Party leader tells me he wouldn't be surprised to hear suddenly that "Meek was offered an ambassadorship from Barack Obama." In late September, under pressure from black leaders in Florida, Vice President Biden was sent to stump for the four-term House member, but local Democrats have long doubted the depth of the White House's commitment to the party's candidate.

Now the murmur among Democrats in favor of switching to Mr. Crist is rising again. We'll find out soon, as one GOP county chairman told me, whether Dems finally prefer "to win with Charlie than lose with Meeks."
There are many arguments against this rumor coming into fruition. First of all its much too late to take Meek off the ballot. Early voting in Florida starts 15 days before the election which is ten days from now, so if this was going to happen it would have to occur before then.

Honestly this is still just a rumor, one that really doesn't make sense even if Meek has no chance to win.  A major party candidate for US Senator does not drop out of a campaign less than a month before an election just before he is losing. On the other hand, this has been a very strange campaign season and everything could happen.  Lets hope this is one rumor that fades away unfulfilled.
Please email me at yidwithlid@aol.com to be put onto my mailing list. Feel free to reproduce any article but please link back to http://yidwithlid.blogspot.com







Sent from my iPhone

Hot new idea from New York: Let’s ban sugary drinks for people on food stamps

Great.


Alternate headline: "Poor people to be deprived of one of few remaining simple pleasures." Bloomberg and Paterson planned to announce Thursday that they are seeking permission from the U.S. Department of Agriculture, which administers the nation's food stamp program, to add sugary drinks to the list of prohibited goods for city residents receiving assistance. If [...]

Read this post »








Sent from my iPhone

Where Has All The Money Gone? « Liberty Juice – political news and commentary, current events, and common sense

http://www.libertyjuice.com/2010/10/06/where-has-all-the-money-gone/

White House Defends Health Care Waivers Issued To 30 Companies and Other Groups

Can you tell that it's an election year?

Via The New York Times -

As Obama administration officials put into place the first major wave of changes under the health care legislation, they have tried to defuse stiffening resistance — from companies like McDonald's and some insurers — by granting dozens of waivers to maintain even minimal coverage far below the new law's standards.

The waivers have been issued in the last several weeks as part of a broader strategic effort to stave off threats by some health insurers to abandon markets, drop out of the business altogether or refuse to sell certain policies.

Among those that administration officials hoped to mollify with waivers were some big insurers, some smaller employers and McDonald's, which went so far as to warn that the regulations could force it to strip workers of existing coverage.

At a time when the midterm elections are looming and Republicans have been vocal in campaigning against the law, reaction to the rollout has been closely watched.

To date, the administration has given about 30 insurers, employers and union plans, responsible for covering about one million people, one-year waivers on the new rules that phase out annual limits on coverage for limited-benefit plans, also known as "mini-meds." Applicants said their premiums would increase significantly, in some cases doubling or more.

These early exemptions offer the first signs of how the administration may tackle an even more difficult hurdle: the resistance from insurers and others against proposed regulations that will determine how much insurers spend on consumers' health care versus administrative overhead, a major cornerstone of the law.

Hmm, sounds like there's trouble in Paradise.  Taking over one-sixth of the economy isn't turning out to be so easy.

David Whelan at Forbes asks the million dollar question:

What Does It Take To Get An ObamaCare Waiver?

Answer: Just ask.

It's hard to forget those rules that were supposed to kick in after health reform passed. One said HMOs would no longer be allowed to sell health plans, like the ones pushed on McDonald's workers, where only a small share of the money spent on premiums goes to doctors, drugs and hospitals.

The industry tried to fight the rules. It also moved activities that HMOs do in-house, like running nurse help lines and "wellness" programs, into the same category as getting surgery. (So a nurse who denies care by saying: "No, you may not go to the ER," is actually a health provider, according to the industry's convoluted maneuverings.)

[...]

Here's a thought: If companies can so easily get waivers to keep selling insurance made illegal by ObamaCare, can individuals apply for waivers to avoid paying the $950 penalty for not buying the right insurance?

You can find a list of the exempted companies and groups here.

The biggest single waiver, for 351,000 people, was for the United Federation of Teachers Welfare Fund, a New York union providing coverage for city teachers.   McDonald's insurance carrier, BCS Insurance, received a waiver to cover 115,000 enrollees.








Sent from my iPhone

MTV Stacks the Deck for Pre-Election Obama Townhall?

MTV Stacks the Deck for Pre-Election Obama Townhall?

U.S. Consumer Borrowing Fell in August on Drop in Credit Cards

http://www.bloomberg.com/news/2010-10-07/u-s-consumer-borrowing-fell-in-august-on-decline-in-credit-card-purchases.html

U.S. Consumer Borrowing Fell in August on Drop in Credit Cards

Oct. 7 (Bloomberg) -- Diane Offereins, president of payment services at Discover Financial Services, talks about the outlook for the credit-card company and the implications of the U.S. Justice Department’s settlement of an antitrust complaint with Visa Inc. and Mastercard Inc. Offereins, speaking with Margaret Brennan on Bloomberg Television’s “InBusiness,” also discusses consumer spending habits. (Source: Bloomberg)
Consumer borrowing declined in August as Americans trimmed credit-card balances, showing consumers remained reluctant to take on more debt as joblessness climbed.
Credit declined by $3.34 billion after falling a revised $4.09 billion in July, more than the previous estimate, according to a Federal Reserve report released today in Washington. Credit-card debt decreased for the 24th consecutive month.
The unemployment rate increased to 9.6 percent in August, the first gain in four months, and economists project a report tomorrow will show it rose again last month. A lack of jobs is restraining consumer spending, which accounts for about 70 percent of the economy.
“People are spending cautiously and getting their debts down,” said Gary Thayer, chief macro strategist at Wells Fargo Advisors in St. Louis. “It’s holding back the economy, but it’s good for the long-run.”
The median forecast of 39 economists surveyed by Bloomberg News forecast a $3.5 billion decline in the measure of credit card debt and non-revolving loans. Estimates ranged from a decrease of $7.5 billion to a $1.8 billion gain.
Stocks held earlier losses after the report. The Standard & Poor’s 500 Index fell 0.2 percent to 1,158.22 at 3:16 p.m. in New York. Treasury securities were little changed.
Fewer Claims
A report from the Labor Department today showed applications for unemployment benefits unexpectedly fell last week to the lowest level in three months, indicating the labor market may be thawing. Jobless claims dropped by 11,000 to 445,000 in the week ended Oct. 2, the fewest since July 10.
Revolving debt, which includes credit cards, fell $4.99 billion in August, according to the Fed’s report. Non-revolving debt, including loans for cars and mobile homes, rose $1.65 billion for the month. The report doesn’t track debt secured by real estate, such as home-equity lines of credit.
Credit-card delinquencies fell in August as major issuers posted improved numbers, according to a Moody’s Investors Service report issued Sept. 27. The top six credit-card issuers, including JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc., all reported lower delinquencies for August in regulatory filings.
Some companies are seeing improvement in spending. Discover Financial Services, the payments processor, posted third-quarter profit that exceeded most estimates. “Discover card spending continued to grow nicely this quarter,” Chief Executive Officer David Nelms said in the statement issued Sept. 20.
The jobless rate increased to 9.7 percent last month as the year-old economic recovery didn’t generate enough jobs to keep up with a growing labor force, according to the median forecast of economists surveyed by Bloomberg before a Labor Department report tomorrow.
To contact the reporter on this story: Vincent Del Giudice in Washington vdelgiudice@bloomberg.net
To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net

MGM's Creditors Voting on Debt Plan

http://online.wsj.com/article/SB10001424052748704696304575538472987889684.html?mod=rss_whats_news_us_business&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+wsj%2Fxml%2Frss%2F3_7014+(WSJ.com%3A+US+Business)&utm_content=Google+Reader

MGM's Creditors Voting on Debt Plan

Movie studio Metro-Goldwyn-Mayer Inc. is in the final stages of preparing a bankruptcy-protection filing, a move that will pare the debt of the iconic studio and place it under the management of the two founders of rival Spyglass Entertainment.
Saddled with more than $4 billion in debt, MGM is trying what's known as a "prepackaged bankruptcy" that it hopes will wend its way through court in a matter of weeks, rather than the months or years that some bankruptcy cases require.
The first step of that process came this week, when the studio presented its restructuring plan to debt holders. ...

Michigan Judge Upholds Provisions In ObamaCare

http://gatewaypundit.firstthings.com/2010/10/michigan-judge-upholds-provisions-in-obamacare/


Posted by Lady Liberty on Thursday, October 7, 2010, 5:56 PM

A federal judge in Michigan has upheld the health care legislation that was passed this year, in the first significant challenge to its constitutionality.
Via CBS News -
A federal judge in Michigan has rejected a constitutional attack on President Obama’s health care overhaul, ruling that Congress did not exceed its authority when it passed the landmark legislation requiring people to buy health insurance.
Federal Judge George Caram Steeh rejected claims by the Thomas More Law Center and several Michigan residents, who argued they should not be required to buy into a health plan that could fund abortions. Today’s decision focused on two constitutional issues: whether the law violated the Commerce Clause, because it exceeded Congress’ authority, and whether it amounted to an unconstitutional tax.
Although the decision is the first case to reach the merits on the Commerce Clause, it should go without saying that the issues are far from resolved. It’s like a tropical storm brewing in the ocean that hasn’t quite made it to hurricane status. For one, this case is certain to be appealed, and more importantly, the two major lawsuits — one in Florida and another in Virginia — have yet to be decided. Those lawsuits involve challenges by more than a dozen state attorneys general and governors.
All of the cases are gathering strength to make landfall at One First Street — the Supreme Court.
Still, it is the first case to reach the merits on the Commerce Clause issue, which is one of the more compelling legal arguments against the health care reforms. Under the Commerce Clause, Congress has power to regulate economic activity. These lawsuits argue the Constitution does not give Congress the power to regulate economic inactivity.
The judge rejected those arguments, ruling that Congress had power to pass the law because it had a substantial effect on interstate commerce and was part of a broader regulatory scheme.
The decision (.pdf) is here.
Here is one key passage from his decision on whether Congress had a “rational basis” to conclude that the legislation would affect interstate commerce:
“The health care market is unlike other markets. No one can guarantee his or her health, or ensure that he or she will never participate in the health care market. Indeed, the opposite is nearly always true. The question is how participants in the health care market pay for medical expenses – through insurance, or through an attempt to pay out of pocket with a backstop of uncompensated care funded by third parties.
This phenomenon of cost- shifting is what makes the health care market unique. Far from “inactivity,” by choosing to forgo insurance plaintiffs are making an economic decision to try to pay for health care services later, out of pocket, rather than now through the purchase of insurance,collectively shifting billions of dollars, $43 billion in 2008, onto other market participants….
The plaintiffs have not opted out of the health care services market because, as living, breathing beings, who do not oppose medical services on religious grounds, they cannot opt out of this market. As inseparable and integral members of the health care services market, plaintiffs have made a choice regarding the method of payment for the services they expect to receive. The government makes the apropos analogy of paying by credit card rather than by check. How participants in the health care services market pay for such services has a documented impact on interstate commerce. Obviously, this market reality forms the rational basis for Congressional action designed to reduce the number of uninsureds.”
Federal Judge George Caram Steeh is a Clinton appointee to the Eastern District of Michigan.

Another awesome George W. Bush story you probably have never heard that makes me hate myself for ever saying anything bad about this man.

http://hillbuzz.org/2010/10/07/another-awesome-george-w-bush-story-you-probably-have-never-heard-that-makes-me-hate-myself-for-ever-saying-anything-bad-about-this-man/
On Tuesday, I was in Georgia for a panel discussion on Islamonazism when Michael Medved told the audience about a meeting he and other conservative radio hosts had with President George W. Bush on the last Wednesday he was in the White House.
The President summoned Medved, Hugh Hewitt, and a bunch of others to the Oval Office where he sat them down on the couches, pulled up a chair, looked them all in the eyes and told them “to go easy on the new guy and let him grow into the job because it’s harder than any of you could imagine”.
Bush, the villain…Bush, the terrible…Bush, the demented cowboy riding nightmare through the imaginations of the Left even to this day…summoned conservative radio hosts with great sway and influence to the White House so that he could sit them down and make them promise to go easy on Obama after his inauguration.
Bush told these radio hosts that, for the good of the country, they needed to allow Obama the chance to prove himself.  Though they were conservative and he was a Democrat, Bush told these men that as Americans they needed to root for him to succeed and to give him the chance to grow into the role that he won in the election and to prove he was up to the job and capable of leading the nation.
Bush was the captain of a ship preparing to turn the wheel of state over to his successor, and he actually took steps to make sure Republicans did not initiate a groundless partisan war from Day One, just because this president was from the other side of the aisle.
Bush demanded Obama be given his chance to succeed before criticism was automatically flung at him.
Amazing, isn’t it?
I’ve said it before, and I will keep saying this for the rest of my life, but I’m ashamed I ever joined in with all the name-calling and Bush-bashing Democrats did for 8 years with this kind, decent, patriotic man in the White House.
Almost daily, I come across some new story of just how professionally, generously, and respectfully he always conducted himself — always with such class, love for country, and such genuinely good intentions.
George W. Bush is absolutely nothing like the caricature the media created of him and Democrats gleefully perpetuated.
He did everything he could to guarantee Obama got off on the right foot when he took over on January 20th, 2009.  He went out of his way, in fact, to do this.
I don’t think I need to say how much I doubt Obama will do the same for President Palin once she’s sworn in come 2013…and I know the Left won’t cut her a bit of slack as she takes over and her administration begins.
But, I really am touched and beyond impressed that Bush called those influential voices together and wouldn’t let them leave his presence without them promising to the nation that they would give the new president the benefit of the doubt and cut him slack.
If, just three years ago, you had told me I’d say something like this I would have thought you were insane, but I really believe George W. Bush has become one of the men I most admire in this world.  I can count on one hand all the people I have ever known who would have done what he did with those radio commentators. Two of them are women I admire, and only one of the rest is a politician.
W. really and truly never ceases to amaze me.

The Governments Weight-Loss Program

By Rebekah Rast

As America's debt and unemployment rate continue to climb, so does its weight.

America is quickly becoming the fattest nation in the world. Results from the 2007–2008 National Health and Nutrition Examination Survey (NHANES) indicate that about 34.2 percent of U.S. adults aged 20 years and over are overweight, 33.8 percent are obese and 5.7 percent are extremely obese.

But, as big of a problem as it may be, is it the right of the federal government to step in and begin regulating the diets of Americans?

Michelle Obama thinks that it is, and is busy launching an initiative that starts with America's overweight children.

Partnering even with Walt Disney, Mrs. Obama has pushed her initiative, "Let's Move," with Public Service Announcements, appearing with various Disney stars and even helped some of them plant a garden.

Though Mrs. Obama has recently touted the weight problem amongst school-aged children as her No. 1 priority while she's in the White House, this isn't the first time the issue has been discussed.

Eating a proper diet even became a topic at now Supreme Court Justice Elena Kagan's confirmation hearings.

When Republican Sen. Tom Coburn of Oklahoma asked her during the hearings if the government can pass a law forcing Americans to eat fruits and vegetables, her answer wasn't no.

So what does this mean? Does the government have more up its sleeve than just Mrs. Obama's "Let's Move" initiative?

Some state governments have already taken steps to make its citizens more aware of the fatty, high-calorie foods in restaurants.

In 2008, in California, for example, Gov. Arnold Schwarzenegger signed legislation that made it the first state in the nation to have its restaurant chains with 20 or more locations statewide post calorie information on menus and indoor menu boards for consumers. New York passed similar legislation for restaurant chains, but went a step further and ruled that some cities have to have nutritional information posted directly on the menus. New York has also banned the use of all artificial trans fat in restaurant foods.

The federal government followed suit and passed a federal-menu labeling law within ObamaCare. This new law will affect restaurants with 20 or more locations by forcing them to put nutritional information for menu items on the menus themselves, menu boards and even drive-thrus. This law also requires vending machine owners to comply by the same rules.

In April 2010, the Food and Drug Administration (FDA) announced a plan to begin limiting the amount of salt allowed in processed foods. Though it does not know what the reduced sodium levels will be, the FDA hopes to implement the plan over a 10-year span.

There is no denying that today's American diet has a penchant towards salt, but is it the role of the federal government to limit the intake?

"Not only does the federal government not have the Constitutional authority to regulate its citizens' diets, how could it?" asks Bill Wilson, president of Americans for Limited Government (ALG). "The big-government policies of this Administration have failed. What would make the American people think that the government's handling of their diets would be any different?"

Yet, the White House is still trying. Following the pleas of Mrs. Obama, the Senate passed the Child Nutrition bill — a good start for her "Let's Move" initiative. This bill would provide $4.5 billion to school lunch and other federal child-nutrition programs.

An Associated Press article on the subject stated that schools wouldn't do away with popular foods, like hamburgers, but would make them healthier — higher-quality meat and a whole wheat bun perhaps. Also, vending machines would be stocked with less candy and sugar-filled drinks.

The House has yet to pass the bill. Mrs. Obama hopes it might come up for a discussion during a lame-duck session in November.

It seems this Congress and Administration has forgotten that eating at McDonald's is a choice. Whether the calories are posted on the menus or not, if someone is craving a double cheeseburger, they are probably going to get one. You don't go to a fast food restaurant expecting a healthy meal.

The more the government intrudes on the lives of Americans, the less freedom its people have.
Yes, America has a weight problem, but it's not the federal government's job to fix it.

Rebekah Rast is a contributing editor to Americans for Limited Government (ALG) News Bureau.









Sent from my iPhone

The Futility of Printing Money

By Bill Wilson

With sideways economic growth and persistently high unemployment, the Federal Reserve and other Keynesian economists have been obsessed with 1930's-style "deflation." Since the end of 2008, and in the wake of the financial crisis, the nation's central bank has been engaged in so-called "quantitative easing" (QE) to allegedly prevent a second Great Depression.

In lay terms, the Fed has been printing money and injecting it into the financial system and government coffers.

First, the Fed reduced the federal funds rate to near-zero in December 2008, where it has kept it ever since. Then, it announced it would purchase some $1.25 trillion in mortgage-backed securities (MBS) plus $175 billion of Fannie Mae and Freddie Mac debt. It also said it would buy $300 billion of U.S. treasuries.

Where did they get the money? They printed it. That was in March 2009. Keeping its word, the Fed went ahead and made the purchases, raising its share of treasuries from $474 billion to $776 billion by the end of March 2010. Still not satisfied, however, in August of this year, it announced that it would then be selling its MBS holdings, and then use the money to buy yet more treasuries.

Now, the central bank owns over $808 billion in treasuries. And it still has over $1.086 trillion of MBS in its portfolio left to sell. Since the middle of August, the Fed has been buying about $4.35 billion of treasuries a week, a pace that will add another $226 billion to the Fed's share of the national debt, bringing it up to over $1 trillion by August 2011.

That would be more than either China or Japan hold, and make the Fed the top holder of the national debt in the whole world.

It is in this context that there is now widespread advocacy for the Fed to once again step in and buy even more treasuries. How much more? Nobody knows for certain, but it has already been dubbed "QE2," and Wall Street is all but certain it will happen. Investor's Business Daily speculates that it could be as much as another $1 trillion.

Why might the Fed do this?

The Fed says that "measures of underlying inflation are currently at levels somewhat below those the Committee judges most consistent, over the longer run, with its mandate to promote maximum employment and price stability." This represents a strong signal they may actually be preparing to go through with it. The Fed says it "is prepared to provide additional accommodation if needed to support the economic recovery".

Inflation is too low, they say, and unemployment too high. Some more monopoly money should do the trick, they say.

But we're the ones who will pay. Apparently, $85 for a barrel of oil and $1,300 for an ounce of gold is not high enough for the central bankers. As noted by Investor's Business Daily, since March 2009, "gold has surged 46 percent and oil is up even more, by 73 percent." Who knows what 2011 will hold?

Ostensibly, the justification for printing more money is to help the economy. But what if that was not the real reason? What if "QE2" was just a front, an excuse for the Fed to buy the national debt?

According to Strategas Research Partners' Jason Desena Trennert: "$5.2 trillion of U.S debt comes due in the next three years..." In addition, the White House Office of Management and Budget projects that in the next three fiscal years, the national debt will grow by $3.6 trillion to $17.453 trillion.

That means in the next three years, the Treasury will have to sell $8.8 trillion more treasuries: $5.2 trillion to roll over the existing debt, and another $3.6 trillion for budget deficits and interest owed on the debt. That means each year it will have to sell $2.93 trillion of more debt.

So, what if the reason for "QE2" had nothing to do with helping the economy? According to Bloomberg News, IHS Global Insight, Moody's Analytics, and Macroeconomic Advisors say it won't help that much anyway. "The firms estimate that the unemployment rate will remain around 9 percent or higher next year whether the Fed buys $500 billion or $2 trillion of U.S. Treasuries in a second round of unconventional stimulus," Bloomberg reports.

It will only add 0.1 percent to growth and do nothing to create jobs. Therefore, what if the real reason to print the money was because the Treasury didn't think it could sell that much debt without the Fed helping? Fiscal Year 2010 was already a record year for expanding the debt, when the Treasury sold $2.3 trillion worth of treasuries.

What if the Fed is buying the national debt because we're broke? Because principal on the debt can no longer be paid on the debt by simply rolling it over? Because the only way to pay the principal due is to simply pull a Weimar Republic and print it?

Assuming the actual demand for treasuries remains consistent from 2010, there will be about a $630 billion shortfall to pay the debt every year for the next three years. With China slowly declining its share of the national debt, the only way to pay the bills will either be for the Treasury to find new buyers, or for the Federal Reserve to print another $630 billion every year (or conversely speed up its sales of the MBS).

The Treasury had better hope it can either find new buyers of the debt, or that Congress balances the budget next year. The alternative is that the Fed will run up its share of the debt to $1.6 trillion in 2011, more than $2 trillion in 2012, and perhaps as much as $3 trillion in 2013.

That's assuming there would not be a terrible, horrible, no good, very bad impact on the demand for those treasuries on account of us papering over the debt. Who will want to be paid back with monopoly money? Will foreign owners of the debt even accept payment in dollars any more?

France and Britain ultimately rejected the Weimar Republic's attempts to pay its war debts with printed money after World War I. The result was hyperinflation in Germany and double-digit unemployment, which eventually spread throughout the continent and helped cause the first Great Depression.

Meanwhile, China is the primary beneficiary of these developments. Every year, it takes the trade deficit and converts it into treasuries and earns a modest return. But it is also using the money to stockpile gold, buy real assets like ports in Greece and factories in Brazil, modernize its navy and other armed forces, and build real infrastructure in its mainland.

In short, the American people are paying the Chinese an exorbitant tax, with which they are buying the world. They are sucking us dry. This is equivalent of Dutch traders buying Manhattan for beads, blankets, and seashells, except this time it is cheap furniture, plastic toys, and electronics we really don't need.

This is worse than the Great Depression.

Bill Wilson is the President of Americans for Limited Government.









Sent from my iPhone

Typical: Congress passed bank bailout bill without voting on it, Obama to issue pocket veto after ge

They thought this bill would just get signed and nobody would know about it. The bill is HR 3808: Interstate Recognition of Notarizations Act of 2009, which would have the effect of bailing out banks from following due process in foreclosing one's home. But here's the most infuriating thing: Congress never voted on it. From Gov Track, check out this bit of unconstitutional chicanery:
What the heck? Is it not a constitutional requirement that a roll call be kept for passing legislation? Especially major legislation like this one? The light was shown on this today, and the cockroaches scattered.  Once this was made public, it was leaked that Obama would issue a pocket veto out of fear that news of another bank bailout would lead to more losses for Democrats next month. From Zero Hedge: Obama To Veto H.R. 3808
As we expected, and suggested last night, Obama would not enact H.R. 3808 for fear of the populist fallout that would follow. Indeed, Dow Jones has just confirmed that Obama will "Pocket Veto" the notarization bill, eliminating the last possible roadblock for a tsunami of legal action against mortgage servicers.
From Dow Jones:
President Barack Obama won't sign into law an overlooked piece of legislation that critics say would make it easier for banks and others to process foreclosure proceedings without human signatures, a person familiar with the matter said.

Obama hasn't yet issued a veto during his presidency. In this instance, he will send the bill back to Congress using a process known as a "pocket veto."
Michelle Malkin has the scoop on how the bill was passed: What the hell: How stealth banking bailout reached Obama's desk
Both the left and right sides of the blogosphere are buzzing about a bipartisan TARP-style banking bailout bill that somehow reached President Obama's desk in the legislative rush before Congress adjourned for the midterm election break.
The sordid episode underscores everything I've spotlighted about the culture of corruption over the last two years — sabotage of the deliberative process, circumventing of rules, backroom deals, and contempt for the will of the people.
Yes, the Vampire Congress strikes again.
The bill is HR3808, the "Interstate Recognition of Notarizations Act of 2010," which requires courts to accept as valid notarized letters made out of state, making it harder to challenge the authenticity of foreclosure and other legal documents. Here's the legislative history of the bill.
Reuters lays out the basic story:
A bill that homeowners advocates warn will make it more difficult to challenge improper foreclosure attempts by big mortgage processors is awaiting President Barack Obama's signature after it quietly zoomed through the Senate last week.
The bill, passed without public debate in a way that even surprised its main sponsor, Republican Representative Robert Aderholt, requires courts to accept as valid document notarizations made out of state, making it harder to challenge the authenticity of foreclosure and other legal documents.
The timing raised eyebrows, coming during a rising furor over improper affidavits and other filings in foreclosure actions by large mortgage processors such as GMAC, JPMorgan and Bank of America…The legislation could protect bank and mortgage processors from liability for false or improperly prepared documents.
And now, the dirty details of the legislative legerdemain that paved the bill's path to Obama's desk:
After languishing for months in the Senate Judiciary Committee, the bill passed the Senate with lightning speed and with hardly any public awareness of the bill's existence on September 27, the day before the Senate recessed for midterm election campaign.
The bill's approval involved invocation of a special procedure. Democratic Senator Robert Casey, shepherding last-minute legislation on behalf of the Senate leadership, had the bill taken away from the Senate Judiciary committee, which hadn't acted on it.
The full Senate then immediately passed the bill without debate, by unanimous consent.
No debates.
No amendments.
No roll call votes.
It's the Chicago way...







Sent from my iPhone

The Fraudulent Obama Stimulus Report

The Washington Post reported last Friday: The massive economic stimulus package President Obama pushed through Congress last year is coming in on time and under budget - and with strikingly...







Sent from my iPhone

At a Rally, Obama Tries to Fire Up the Democratic Base - NYTimes.com

http://www.nytimes.com/2010/10/08/us/politics/08campaign.html?ref=politics<br><div style="color:rgb(60%,60%,60%)">Sent with <a

Beef Industry: U.S. May Need ‘Strategic Hamburger Reserve’ after Obama EPA Implements New Regulations | CNSnews.com

Beef Industry: U.S. May Need ‘Strategic Hamburger Reserve’ after Obama EPA Implements New Regulations | CNSnews.com

FED SPENDING JUMPS 9% FOR YEAR...

http://www.washingtontimes.com/news/2010/oct/7/deficit-hits-almost-13-trillion-fiscal-2010/<br><div style="color:rgb(60%,60%,60%)">Sent with <a

First is was Obama then Islam and now the ACLU defeats the "will of the people" but that will change

First is was Obama then Islam and now the ACLU defeats the "will of the people" but that will change when the "will of the people" speak Nov 2nd


ACLU Demands Small Town Remove Christian Flag
redwhitebluenews.com
RWB News: Ummm, hello--Ground Zero Mosque??????????? This is a small, obscure town in North Carolina. I wonder if they would've objected had the flag been muslim?







Sent from my iPhone

Film Promises to Take a ‘Controversial New Look at Government Spending’

While America's current state of affairs seems to be playing out like a metaphorical boxing match between the ideas of Ronald Reagan and Barack Obama, one new film is bringing the metaphor to life.  Literally.

The clash of these ideological titans and their clashing views on how best to save America's economy is the crux of a new film called "I Want Your Money." In the movie, filmmaker Ray Griggs explains the country's out-of-control spending, growing government and recent economic woes — a few very serious subjects.  But don't think it's all doom and gloom — Griggs inserts some satirical moments to lighten the mood, including one former president who lusts after the women around him:

While the film condemns the big-government spending habits of Democrats, it doesn't let Republicans off the hook for their past government spending.  The film includes commentary and analysis from a variety of conservatives, including former House Speaker Newt Gingrich, Rep. Thaddeus McCotter, former Arkansas Gov. Mike Huckabee, John Stossel, Stephen Moore, Ken Blackwell and Steve Forbes.

Filmmaker Ray Griggs has said he used animation in "I Want Your Money" because he wanted to educate young people about the deficit.  The film will land in theaters later this month, presenting moviegoers with a choice between the "two paths" the U.S. can take — Obama's or Reagan's.

After the film, viewers learn from Griggs that the national debt increased by $182 million during the 92-minute show.  Watch the trailer:








Sent from my iPhone

The Federal Budget Deficit for 2010—Nearly $1.3 Trillion

The federal government's fiscal year 2010 has come to a close, and CBO estimates, in its latest Monthly Budget Review, that the federal budget deficit for the year was slightly less than $1.3 trillion, $125 billion less than the shortfall recorded in 2009. Relative to the size of the economy, the 2010 deficit was the second-highest shortfall—and 2009 the highest—since 1945. The 2010 deficit was equal to 8.9 percent of gross domestic product (GDP), CBO estimates, down from 10.0 percent in 2009 (based on the most current estimate of GDP). CBO's deficit estimate is based on data from the Daily Treasury Statements and CBO's projections; the Treasury Department will report the actual deficit for fiscal year 2010 later this month.

The estimated deficit is about $50 billion less than CBO projected in its August Budget and Economic Outlook. Outlays turned out to be lower and revenues higher than CBO anticipated.

Outlays

Outlays ended the year about 2 percent below those in 2009, CBO estimates. That decline resulted primarily from a net reduction in outlays for three items related to the financial crisis: the costs of the TARP ($262 billion lower than in 2009), payments to Fannie Mae and Freddie Mac ($51 billion lower), and federal deposit insurance ($55 billion lower). Excluding those three programs, spending rose by about 9 percent in 2010, somewhat faster than in recent years.

Payments for unemployment benefits rose by 34 percent in 2010 because of high unemployment and increased benefits provided by various laws, including the American Recovery and Reinvestment Act (ARRA). Other ARRA provisions led to double-digit growth in spending for a number of programs—particularly the State Fiscal Stabilization Fund, refundable tax credits, and certain education programs. In contrast, defense spending grew more slowly than in recent years, increasing by about 5 percent in 2010 after rising by an average of 8 percent annually from 2005 through 2009. Medicare and Social Security outlays rose by about 5 percent this year, somewhat less than in most recent years. The 9 percent increase in Medicaid outlays partly reflects a temporary increase in the federal share of Medicaid assistance authorized in ARRA; excluding ARRA-related expenditures, Medicaid outlays rose by about 6 percent.

Receipts

CBO estimates that total receipts rose by 3 percent in 2010, following declines in each of the prior two years. Growth in receipts of corporate income taxes and remittances from the Federal Reserve more than offset reduced collections of individual income and payroll taxes in 2010.

Corporate income tax receipts rose by $53 billion (or 39 percent) in 2010; improved economic conditions and the expiration of legislation that allowed taxpayers to take higher depreciation charges in 2009 has resulted in higher taxable profits in 2010. Receipts from the Federal Reserve increased by $42 billion this year, to more than double the amount received in 2009. The central bank's increased profits resulted from an enlarged portfolio and a shift to riskier and thus higher-yielding investments in support of the housing market and the broader economy.

Those increases were partially offset by a drop in the total of individual income and payroll taxes, which were about $43 billion (or 2 percent) less than those receipts in 2009. That result occurred primarily because withheld income and payroll taxes declined by about $13 billion (or 1 percent), and nonwithheld receipts fell by about $35 billion (or 10 percent). In both instances, the declines occurred early in the fiscal year and were largely attributable to lower collections of tax liabilities incurred in 2009. Collections of income and payroll taxes in the past five months are 4 percent above the amounts collected during the same period in 2009.

The Monthly Budget Review was prepared by Elizabeth Cove Delisle and Daniel Hoople of CBO's Budget Analysis Division, and by Barbara Edwards and Joshua Shakin of our Tax Analysis Division.
 








Sent from my iPhone

Three Horrifying Facts About the US Debt “Situation”

1. The US Fed is now the second largest owner of US Treasuries. 2. "There are only about $550 billion of Treasuries outstanding with a remaining maturity of greater than 10 years." 3. The US will Default on its Debt….either that or experience hyperinflation.

Phoenix Capital Research on 10/07/2010 at Zero Hedge

EXCERPTS:

That's right, this week we overtook Japan, leaving China as the only country with greater ownership of US Debt. And we're printing money to buy it.

So we're talking about TRILLIONS of old debt coming due in the next decade. The below chart depicting the debt coming due between 2009 and 2039 comes courtesy of the US Treasury itself.

So default is in the cards. Either that or hyperinflation (which occurs when investors flee a currency). Either of these will be massively US Dollar negative and horrible for the quality of life in the US. But they're our only options, so get ready.

FULL STORY

DEBT CLOCK

RELATED STORIES:

Obama and Ben Bernanke Have Us Facing the Abyss

Congressman pledges to 'debunk the myth' that we're in debt

Fed Officials Mull Inflation as a Fix

The Psychopathology of Government and its Agents

A Post-Obamanomics Growth Plan: Start By Slashing Taxes, Spending

Obama's real tax agenda – its not your money

A fair warning of where we are headed

Illinois Deficit Forecast Grows as Financial Ills Deepen, Comptroller Says

The Feds' Disease: Spending! (Part 1)

IMF Warns Western Economies Mired in 'Near Depression'

With Obama taxes are about ideology not economics

Understanding the roots of Obama's rage

The Fed's Counterfeiting Efforts

U.S. Economy "Close to a Destructive Tipping Point,"

November's choice: socialism or capitalism

Building the next subprime crisis

Eat Drink and be Bankrupt

Any parrot can say print money, print money

Why CEOs can't stand Obama








Sent from my iPhone

Interviews with Obama voters reveal how he got elected (Videos)

RWB News: At first I thought it was a fluke or a fraud.  The American people could not possibly be that gullible, that uninformed, nor that Socialist.  So, the question became:  How did this happen?  Woe is America, the answer is here.  Misinformed voters who took the media's word for it.

How Obama Got Elected… Interviews With Obama Voters

Click here to view the embedded video.

Trailer for "Media Malpractice… How Obama Got Elected and Palin Was Targeted"

Click here to view the embedded video.

For more information, visit HowObamaGotElected.com

swenbwr







Sent from my iPhone

Obama tells audience there will be “hand to hand combat” if republicans win; then blames Bush again

RWB News: The great "uniter" is at it again with his masterful use of words to "energize" his base before elections. Lets see how the base is getting "energized". Earlier Obama told members of the Black Caucus "We must guard the change". After that we had a few more people getting beat up at political rally's by thugs. We have a DOJ whistleblower saying the administration plans on massive voter fraud, a massive investigation on voter fraud in Houston happening right now and the Obama administration is also being investigated for using confidential taxpayer information in an effort to attack a political opponent. Sounds like they were already "energized" enough.

Now the President of "change" tells Michael Baisden's syndicated radio show that if Republicans take over it will mean "hand to hand combat" to keep the policies we democrats enacted. Really?? If the "will of the people" vote out the democrats, it's because of your policies……Just like you and the liberals said when you were voted in. Only now many people are seeing how radical you are and they didn't vote for that.

Obama also made a direct appeal to African Americans about the importance of the November vote using the same old line  "Everybody in the barbershops, the beauty shops, and at work — everybody's got to understand: This is a huge election," He must have a lot of supporters that love barber and beauty shops.

Obama also needed to get the "blame Bush" defense in when he said " most of the job losses his administration gets blamed for occurred before "any of my economic plans were put into place," and that the country is still "experiencing the hangover from the misguided policies" of the last decade."


As reported byThe LA Times

A Republican majority in Congress would mean "hand-to-hand combat" on Capitol Hill for the next two years, threatening policies Democrats have enacted to stabilize the economy, President Obama warned Wednesday.

Speaking on Michael Baisden's syndicated radio show, Obama also made a direct appeal to African Americans about the importance of the November vote, even though he's not on the ballot himself.

"The reason we won [in 2008] is because young people, African Americans, Latinos — people who traditionally don't vote in high numbers — voted in record numbers. We've got to have that same kind of turnout in this election," he said. "If we think that we can just vote one time, then we have a nice party at Obama's inauguration, and then we can kind of sit back and suddenly everything's going to change – that's just not how it works."

Obama called into Baisden's show, syndicated to 71 radio stations in 21 states, as part of his effort to rally core Democratic constituencies with less than four weeks before the election. Although his campaign itinerary is limited by sagging approval ratings in key states, Obama is making a more-targeted effort focused on supportive venues like Baisden's show.

"Everybody in the barbershops, the beauty shops, and at work — everybody's got to understand: This is a huge election," he said. "If we turn out in strong numbers, then we will do fine. If we do not, if we are depressed and decide, well, you know, Barack's not running right now, so I'm just going to stay home, then I'm going to have my hands full up here on Capitol Hill."

Days before the release of a key jobs report, Obama said most of the job losses his administration gets blamed for occurred before "any of my economic plans were put into place," and that the country is still "experiencing the hangover from the misguided policies" of the last decade.

Read more: http://www.latimes.com/news/politics/la-pn-obama-base-20101008,0,2599766,print.story

swenbwr







Sent from my iPhone

Figures. Democrats Reward Another Voting Bloc – Send Stimulus Checks to Dead People

Whoever said the Obama-Pelosi Stimulus Bill was just a massive kickback to their supporters was correct.

Democrats even sent Stimulus checks to dead people.
The Washington Wire reported:

The Social Security Administration sent about 89,000 stimulus payments of $250 each to dead and incarcerated people — but almost half of them were returned, a new inspector-general's report has found.

The agency was charged with distributing the one-time payments, worth about $13 billion in total, as part of the economic-stimulus package passed in February 2009. Most of the payments were made in May 2009.

The inspector general found that about 72,000 payments were sent by electronic-transfer and as checks to people who would have qualified to receive them — had they still been alive. The report said that of these payments, about 55,000 were sent because the recipients had died recently, and the Social Security Administration had not been informed of their deaths by states, families or funeral homes at the time the payments were sent. The remaining 17,000 of the mistaken payments were attributed to the SSA failing to properly process death records that it did have.

Another 17,000 payments went to recipients who were in prison at the time the payment was made in May 2009. However, not all of those payments were necessarily against the letter of the law. While lawmakers intended to prevent payments to people in prison, the law included only a provision prohibiting payments to people incarcerated in the three months before the plan was passed — from November 2008 through January 2009.

No wonder two-thirds of Americans believe the Stimulus was a waste.








Sent from my iPhone

Joe Biden Insults Wisconsin Supporters: “You’re the Dullest Crowd I’ve Ever Spoken To”

Joe Biden's mouth strikes again.

Joe Biden told a group of Democratic supporters today, "You're the dullest crowd I've ever spoken to."
The Hill reported:

Vice President Joe Biden got a laugh from his audience at a Wisconsin fundraising event Thursday when he tried to rile the crowd about the economic collapse of 2008.

"We want to reward people who manufacture things in the United States, in Wisconsin, not to take them overseas to China and to other countries!" he said to a silent room at the event for Democratic gubernatorial nominee Tom Barrett, according to a White House pool report.

He continued, saying, "You're the dullest audience I've ever spoken to," at which point he got applause and laughs. "Do you realize how many jobs Wisconsin lost? It's staggering!"








Sent from my iPhone

Muslim Brotherhood Declares War on America; Will America Notice?

By Barry Rubin

This is one of those obscure Middle East events of the utmost significance that is ignored by the Western mass media, especially because they happen in Arabic, not English; by Western governments, because they don't fit their policies; and by experts, because they don't mesh with their preconceptions.

This explicit formulation of a revolutionary program makes it a game-changer. It should be read by every Western decisionmaker and have a direct effect on policy because this development may affect people's lives in every Western country.

OK, cnough of a build-up? Well, it isn't exaggerated. So don't think the next sentence is an anticlimax. Here we go: The leader of the Muslim Brotherhood has endorsed anti-American Jihad and pretty much every element in the al-Qaida ideology book. Since the Brotherhood is the main opposition force in Egypt and Jordan as well as the most powerful group, both politically and religiously, in the Muslim communities of Europe and North America this is pretty serious stuff.

By the way, no one can argue that he merely represents old, tired policies of the distant past because Badi was just elected a few months ago. His position reflects current thinking.

Does that mean the Egyptian, Jordanian, and all the camouflaged Muslim Brotherhood fronts in Europe and North America are going to launch terrorism as one of their affiliates, Hamas, has long done? No.

But it does mean that something awaited for decades has happened: the Muslim Brotherhood is ready to move from the era of propaganda and base-building to one of revolutionary action. At least, its hundreds of thousands of followers are being given that signal. Some of them will engage in terrorist violence as individuals or forming splinter groups; others will redouble their efforts to seize control of their countries and turn them into safe areas for terrorists and instruments for war on the West.

When the extreme and arguably marginal British Muslim cleric Anjem Choudary says that Islam will conquer the West and raise its flag over the White House, that can be treated as wild rhetoric. His remark is getting lots of attention because he said it in English in an interview with CNN. Who cares what he says?

But when the leader of the Muslim Brotherhood says the same thing in Arabic, that's a program for action, a call to arms for hundreds of thousands of people, and a national security threat to every Western country.

The Brotherhood is the group that often dominates Muslim communities in the West and runs mosques. Its cadre control front groups that are often recognized by Western democratic governments and media as authoritative. Government officials in many countries meet with these groups, ask them to be advisers for counter-terrorist strategies and national policies, and even fund them.

President Barack Obama speaks about a conflict limited solely to al-Qaida. And if one is talking about the current military battle in Afghanistan, Iraq, and Yemen that point makes sense. Yet there is a far bigger and wider battle going on in which revolutionary Islamists seek to overthrow their own rulers and wage long-term, full-scale struggle against the West. If it doesn't involve violence right now it will when they get strong enough or gain power.

More than three years ago, I warned about this development, in a detailed analysis explaining, "The banner of the Islamist revolution in the Middle East today has largely passed to groups sponsored by or derived from the Muslim Brotherhood." I pointed out the differences—especially of tactical importance—between the Brotherhood groups and al-Qaida or Hizballah, but also discussed the similarities. This exposure so upset the Brotherhood that it put a detailed response on its official website to deny my analysis.

Yet now here is the Brotherhood's new supreme guide, Muhammad Badi giving a sermon entitled, "How Islam Confronts the Oppression and Tyranny," translated by MEMRI. Incidentally, everything Badi says is in tune with the stances and holy books of normative Islam. It is not the only possible interpretation but it is a completely legitimate interpretation. Every Muslim knows, even if he disagrees with the Brotherhood's position, that this isn't heresy or hijacking or misunderstanding.

Finally, this is the group that many in the West, some in high positions, are urging to be engaged as a negotiating partner because it is supposedly moderate.

What does he say?

--Arab and Muslim regimes are betraying their people by failing to confront the Muslim's real enemies, not only Israel but also the United States. Waging jihad against both of these infidels is a commandment of Allah that cannot be disregarded. Governments have no right to stop their people from fighting the United States. "They are disregarding Allah's commandment to wage jihad for His sake with [their] money and [their] lives, so that Allah's word will reign supreme" over all non-Muslims.

--All Muslims are required by their religion to fight: "They crucially need to understand that the improvement and change that the [Muslim] nation seeks can only be attained through jihad and sacrifice and by raising a jihadi generation that pursues death just as the enemies pursue life." Notice that jihad here is not interpreted as so often happens by liars, apologists, and the merely ignorant in the West as spiritual striving. The clear meaning is one of armed struggle.

--The United States is immoral, doomed to collapse, and "experiencing the beginning of its end and is heading towards its demise."

--Palestinians should back Hamas in overthrowing the Palestinian Authority in the West Bank and unite in waging war on Israel.

Incidentally, what Melanie Philips has written on this issue fits perfectly here:

--Rational calculations of the kind applied by the West to its adversaries, mirror-imaging, assuming that Muslims won't act in a revolutionary and even suicidal manner want a better future for their children, etc., do not apply to the Islamist movement:

"Allah said: 'The hosts will all be routed and will turn and flee [Koran 54:45].' This verse is a promise to the believers that they shall defeat their enemies, and [that the enemies] shall withdraw. The Companions of the Prophet received this Koranic promise in Mecca, when they were weak... and a little more than nine years [later], Allah fulfilled his promise in the Battle of Badr....Can we compare that to what happened in Gaza?....Allah is the best of schemers, and that though Him you shall triumph. Islam is capable of confronting oppression and tyranny, and that the outcome of the confrontation has been predetermined by Allah."

This says: It doesn't matter how long the battle goes on, how many die, how much destruction is unleashed, how low your living standards fall, how unfavorable the odds appear to be, none of that is important or should deter you.

In the real world, of course, the Islamists are unlikely to win over the long run of, say, 50 or100 years. But those views do mean that these 50 or 100 years are going to be filled with instability and bloodshed.

Equally, Badi's claims do not mean all Muslims must agree, much less actively take up arms. They can have a different interpretation, simply disregard the arguments, and be too intimidated or materialistic or opportunistic to agree or to act. Yet hundreds of thousands will do so and millions will cheer them on. And by the same token, neither the radical nor the passive will assist in moving toward more moderation or peace or compromise.

Well, will the problem go away if people in the West condemn "Islamophobia" or make concessions or apologize or produce a just peace? No.

His words provide some important points for people in the West to consider:

"Resistance is the only solution…. The United States cannot impose an agreement upon the Palestinians, despite all the means and power at its disposal. [Today] it is withdrawing from Iraq, defeated and wounded, and it is also on the verge of withdrawing from Afghanistan. [All] its warplanes, missiles and modern military technology were defeated by the will of the peoples, as long as [these peoples] insisted on resistance – and the wars of Lebanon and Gaza, which were not so long ago, [are proof of this]."

First, the more the likelihood that U.S. policy might obtains a peace agreement between Israel and the Palestinians, the more anti-American violent activity will be sparked among the Islamists and their very large base of support, the more Iran and Syria will sponsor terrorism. Desirable as peace or even progress toward peace might be, the West should have no illusions about those things providing regional stability, and they will produce more instability.

Second, U.S. actions of apology, concessions, and withdrawals—whether or not any of the specific steps are useful or desirable—they are interpreted by the Islamists and by many in the Middle East as signs of weakness which should spark further aggression and violence. There are hundreds of examples of this reaction every month. Here's a leading moderate Saudi journalist explaining how many Iraqis and other Arabs are viewing the U.S. withdrawal from Iraq means that it is turning the country over to Iran. Wrong but an accurate show of that very common Middle East way of thinking.

Indeed, this last factor explains the Brotherhood's timing. Note that he says nothing about fighting Egypt's government, which won't hesitate to throw the Brotherhood leaders into prison and even to torture them. Still, the coming leadership transition in Egypt, with the death or retirement of President Husni Mubarak, seems to offer opportunities.

The new harder line coincides with the Brotherhood's announcement that it will run candidates in the November elections, another sign of its confidence and increased militancy. The Brotherhood is not a legal group but the government lets members run in other parties. Its candidates won about 20 percent of the vote in the last elections, especially impressive given the regime's repressive measures. If the Brotherhood intends to defy Egyptian law now there will be confrontations, mass arrests, and perhaps violence.

Most important of all, however, Badi and many others sense weakness on the part of the West, especially the U.S. leaders, and victory for the Islamists.

Even former British Prime Minister Tony Blair is warning about such things. Blair comes from the British Labour Party. Many conservatives understand these issues. But the West can never respond successfully without a broader consensus about the nature of the threat and the need for a strong response. Where are Blair's counterparts in the left-of-center forces in North America, the kind of people who played such a critical role in confronting and defeating the previous wave of anti-democratic extremism, Communism?

This new hardline signals

1. Increased internal conflict in Egypt, the start of a decade-long struggle for power in the Arabic-speaking world's most important country.
2. The likelihood that more Brotherhood supporters in the West will turn to violence and fund-raising for terrorism.
3. The true nature of the radical indoctrination--preparing people for future extremism and terrorism--in the mosques and groups they control.
4. A probable upturn in anti-American terrorist attacks in the Middle East and Europe.

In August 1996, al-Qaida declared war on America, the West, Christians and Jews. Nobody important paid much attention to this. Almost exactly five years later, September 11 forced them to notice. Let it be said that in September 2010 the Muslim Brotherhood, a group with one hundred times more activists than al-Qaida, issued its declaration of war. What remains is the history of the future.


Please email me at yidwithlid@aol.com to be put onto my mailing list. Feel free to reproduce any article but please link back to http://yidwithlid.blogspot.com







Sent from my iPhone

Heritage Foundation

DrudgeFeed.com - Drudge Report RSS feed

RedState

Right Wing News

RenewAmerica

Hot Air » Top Picks

Conservative Outpost

Conservative Examiner

Michelle Malkin

Big Government

Big Journalism

Big Hollywood

Pajamas Media