FRAMING THE FINANCIAL CRISIS

During the 1980’s and 90’s, the World Bank and International Monetary Fund made loans contingent upon a nation’s ability to uphold the rule of law.  These financial institutions defined lawless nations as those where financial elites had achieved exemption from the rule of law and created a culture of corruption.

This post contains evidence that US financial elites and their bipartisan cronies have achieved exemption the rule of law.  The resulting culture of corruption is evident to all who’ve been paying attention.  For example, Congress voted to exempt themselves from insider trading laws.

For those who think this post is a leftist attack on Wall Street bankers, you should know that the CEO’s of JP Morgan and Goldman Sachs are registered Democrats.  And based on the information in this post, they’re hardcore socialists.  In fact, insiders have given Goldman Sachs the name “Government Sachs”.

The Congressional Budget Office says it will cost taxpayers 8.6 Trillion to prop up banks after the 2008 financial crisis.  Some politicians say the Community Reinvestment Act (CRA) caused the crisis because it forced banks to make home loans to poor people.  But most of the subprime loans were originated by lenders exempt from the CRA.

It’s important to remember that many Wall Street banks were buying subprime mortgages on the secondary market, not lending to homeowners who could not repay their loans.  No government agency forced Wall Street banks to buy worthless loans, securitize them, leverage them 50 to 1, and sell them around the world with fraudulent Triple A ratings.

Simon Johnson is a former chief economist for the International Monetary Fund and a current member of the CBO council of advisers.  He wrote a book titled “13 Bankers: The Wall Street Takeover and the Next Financial Meltdown”.  During a presentation on CSPAN, Mr. Johnson said the six largest banks have “captured the State” and have power to “extort” money from government.

President of the Kansas City Federal Reserve, Thomas Hoenig, gave a speech on Obama’s finance reform (Dodd-Frank).  He said it didn’t eliminate the threat of future Wall Street bailouts, and Too Big To Fail banks are “inconsistent with the concept of capitalism.”  Mr. Hoenig is calling for the reinstatement of Glass Steagall as a means to break up big banks and reduce the threat of future bailouts.

In 1933, Glass Steagall was enacted to curb bank speculation that caused the 1929 market crash and Great Depression.  However, President Clinton repealed Glass Steagall in 1999.  It only took nine years to repeat the crash of 1929 and Great Recession.

During a Congressional hearing,  Rep. Brad Sherman said Dodd-Frank’s Resolution Authority gives the Executive Branch (Obama) authority to spend Trillions on future Wall Street bailouts, without a Congressional vote.  This eliminates one of our core Constitutional rights, i.e., no taxation without representation.

Presidents Bush and Obama said the 2008 financial crisis was unforseen and could not have been prevented.  They lied.  Phil Angelides was Chairman of the Financial Crisis Inquiry Commission, which concluded the crisis was preventable.  Listen to 7 minutes of Chairman Angelides speech starting at 7min/55sec.  The left blames George Bush for the financial crisis, but the PBS documentary The Warning puts most of the blame on President Bill Clinton.

The Warning  demonstrates that the policies of Clinton and Greenspan laid the foundation for the financial crisis.  And President Bush went along with Greenspan’s elimination of underwriting standards, which created Trillions of dollars of home mortgages, without proof of income, job, or assets.  Oops!  Greenspan admitted his flawed ideology contributed to the crisis, but now the Fed is praised for it’s QE to infinity, which is an ongoing Wall Street bailout.

Also watch CNBC’s House of Cards.  It demonstrates that ratings agencies used fraudulent computer models to give junk securities Triple A ratings.  The models were inherently fraudulent because they were based on the notion that house prices would increase 6% per year, forever.  Historically, this notion is false, so the fraud inherent in the models seems to be intentional. 

President Obama said Wall Street’s actions leading up to the financial crisis were “legal”.  He lied.  William Black was Deputy Director of the Savings and Loan Insurance Corporation during the 1980’s financial crisis.  He helped obtain a 1000 criminal convictions of “elite” bankers.  Mr. Black says public losses from the 2008 financial crisis are “70 times greater” than the Savings and Loan meltdown, but despite compelling evidence demonstrating Wall Street fraud, there have been few criminal prosecutions.

During this radio interview, Black said in 2004, the FBI testified before Congress about an epidemic of mortgage fraud and predicted it would cause a financial crisis.  In 2006, all major lenders were warned that “liars loans” had a 90% incidence of fraud.  But the mortgage industry increased subprime lending to the point that 1 in 3 loans were liars loans when the bubble burst in 2008.  Mr. Black said this constitutes one million cases of fraud per year by the industry.

The interview with Mr. Black includes securities law expert Lynn Stout, who disagreed with Black’s position on the prosecution of bankers.  She wrote an article explaining the role of derivatives in the financial crisis.  It’s fairly short, requires little knowledge of financial markets, and provides important information regarding the prevention of another derivatives related meltdown.

If you watch The Warning, listen to the interview with William Black, read Ms. Stout’s article, and watch this short clip on naked credit default swaps, you’ll have a solid understanding of the financial crisis.  The clip is Michael Greenberger, former director of the Commodity Futures Trading Commission (CFTC).  Greenberger and Stout explain how British common law successfully regulated derivatives for 200 years, and returning to the old regulations may prevent another crisis.

Neil Barofsky was Special Inspector General for TARP, the 700 billion dollar bailout program.  Regarding the nine largest banks, he said “it didn’t matter if they were cooking the books on their balance sheets, Treasury was giving them money anyway, in fact, if they had even larger holes on their balance sheets due to FRAUD, that would’ve been only more reason for Treasury to give them money.”

Mr. Barofsky had spent the prior eight years prosecuting bank fraud, and when he made the statement about Wall Street fraud, he did not qualify it by saying alleged fraud.  And yet, Obama’s Justice Department has not prosecuted a single executive of the nine largest banks.  During debate over TARP, Rep. Marcy Kaptur said “high financial crimes have been committed…these criminals have so much political power, they can shut down the normal legislative process of the highest law making body of this land.”

Rep. Brad Sherman led a bipartisan revolt against the TARP bailout bill because much of the money was going to foreign banks.  During an interview with Larry Kudlow on CNBC, he said “the bank of Shanghai can transfer all of its toxic assets to the Bank of Shanghai in Los Angeles, its subsidiary, which can sell them the next day to the Treasury”.  He continued saying “foreign markets are being told they are getting the money….assets now held in China and London can be sold to U.S. entities on Monday and sold to the Treasury on Tuesday”.

During debate in the House, Sherman said some members were told the U.S. would be placed under martial law if TARP was not passed.  Sounds like extortion to me.  Rep. Paul Ryan was also on Kudlow with Brad Sherman.  It’s interesting that Ryan, a Republican, was for the TARP bailout which allowed government to pick winners and losers rather than the market.  Oops!

The banks Fannie Mae and Freddie Mac were allowed to fail.  They were holding 6.3 TRILLION of toxic assets and liabilities when they collapsed and were dumped on taxpayers in 2008.  The Financial Crisis Inquiry Commission (FCIC) investigated the collapse of Fannie and Freddie.  Commissioner Byron Georgiou said both institutions were “cooking the books”, and lobbyists on both sides of the isle protected the banks while they engaged in illegal activities.

The FCIC concluded: 1) the financial crisis was preventable.  2) Regulators looked the other way rather than take action to prevent the crisis.  3) Big banks took irresponsible risks and taxpayers are stuck with bill.

In order to cover up the cost of toxic assets dumped on taxpayers and Trillions still held by banks, Congress pressured the Financial Accounting Standards Board (FASB) to relax mark to market rules.  These rules were put in place after Enron’s collapse and require large companies to mark balance sheet assets to current market value.  But now, the relaxed rules allow gov’t and banks to falsify the value of toxic assets on their balance sheet.  Small business owners would be charged with fraud for engaging in similar accounting practices.

Desmond Lachman is a former Deputy Director of the International Monetary Fund.  He said, ”if the Federal Reserve balance sheet is marked to market, the Fed would have an enormous negative position”.  Systemic fraud is the new accounting standard for government and Wall Street.

Political leaders say cutting spending is a priority for restoring fiscal soundness.  But if my accountant is cooking the books and embezzling from my business, I can cut  spending to zero and still go bankrupt.  So the first priority is holding Wall Street and bipartisan criminals accountable, then cut spending. 

The Government Accountability Office (GAO) did a partial audit of the Federal Reserve’s response to the financial crisis.  It revealed that 16 TRILLION has been lent at near 0% interest, much of it to foreign banks, meanwhile, the U.S. economy is starved of capital and investment.  The link will get you to Table 8 on page 131 of the GAO report.

The Federal Reserve has a dual mandate: 1) Price stability  2) Full employment.  These mandates apply specifically to the domestic U.S. economy, not the global economy.  But as noted below, the Bank of International Settlements says US banks are one of the largest providers of credit to foreign markets like China.

Investors Business Daily ran an article saying “…despite the commitment of nearly 20 TRILLION in taxpayer funds to prevent another crisis, lending has stalled or shrunk”.  So while bailed out banks are starving the U.S. economy of capital, they’re lending to emerging markets.

The absolute numbers for big foreign banking systems’ exposure to China are as follows:

George Soros was on CNBC and cited data from the Bank of International Settlements (BIS), he said US and EU banks are the largest supplier of credit to emerging markets like China.  So bailed out banks are financing Communist China’s 8% GDP growth while U.S. growth is near zero and the real unemployment rate is 15.1%.

President Obama never mentions the 8.6 Trillion needed to prop up failing banks.  Why?  According to Open Secrets, Wall Street is one of his biggest campaign contributors.  And in return, Wall Street has never had it better, the stock market has nearly tripled in value while economic growth is stagnant.

The Fed’s money printing (QE) policies are driving up the stock market, but it also devalues the dollar so our dollars are worth less, which means we pay more for goods and services.  Economists define this inflation as a tax, so when the Fed purchases 40 Billion per month of toxic mortgage backed securities to prop up Wall Street banks, it’s really a tax.

President Obama and the Fed’s policies have dramatically increased income inequality in America, and the top 1% have never had it better.   So the Democrats alleged desire to reverse this trend demonstrates their grotesque hypocrisy.

President Obama and bipartisan leaders say economic policies are intended to grow the domestic economy.  But it’s not growing.  Is this just another oops moment?  The evidence indicates otherwise.  US policies are designed to subsidize the global economy, a.k.a., globalization.  Why?

Bipartisan and corporate leaders prefer China’s totalitarian model.  Evidence of this can be found in a Wall Street Journal article titled China’s Superior Economic Model.  The article is written by Andy Stern, former President of the Service Employees International Union (SEIU), and the premise of the article was based on comments by Andy Grove, founder and Chairman of Intel.

When Brad Sherman was Chairman of the House Foreign Relations subcommittee on trade, he said US trade with China is “the most unbalanced trade relationship in the history of international trade”, and this “cancerous” trade relationship is driven by “enormous corporate power”.   Mr. Sherman forgot to mention union leaders like Andy Stern who also prefer China’s totalitarian economic model.  Under the guise of free trade, US leaders are transferring American capital, technology and jobs to communist China.

Rep. Sherman also talked about trade deficits resulting from trade with China, and the effect on the U.S. debt.  He said, “you have to have some really bad policies to take the most productive nation in the world with the best workforce, and I mean the United States, and turn it into the greatest debtor nation in history.  And by God, we’ve had bad trade policies that have achieved that objective.”

It’s worth noting that Rep. Sherman used the word “objective” when describing the catastrophic effects of free trade.  Even Warren Buffet said trade deficits are changing America from a shareholder economy to a sharecropper economy, where foreigners own us and we work for them.  Free trade and globalization are an attack on U.S. sovereignty and unalienable rights.  Contact your elected officials and tell them so.

Wall Street and their bipartisans cronies have structured the global economy (globalization) in a way that subsidizes China with U.S. capital and technology.  The decline in growth resulting from free trade and de-industrialization was masked by the subprime bubble.  Given a 2003 warning that Fannie and Freddie posed a systemic risk to financial markets, and the 2004 FBI warning that mortgage fraud would cause a financial crisis, it’s difficult to believe financial and political leaders did not foresee the crisis.

It’s possible the subprime bubble was intentionally created to cover up the economic contraction caused by free trade and outsourcing.  When the bubble burst, average citizens were blamed for living beyond their means, but the structural decline resulting from free trade and de-industrialization wasn’t mentioned.

Some say the electronic trinkets produced in China would be too expensive if manufactured in America.  But virtual slave labor has always existed in foreign countries, and before free trade, America’s economy thrived without exploiting cheap labor abroad.  Many leaders say government should be run more like a business.  Well, multinational corporations spend billions implementing policies that PROTECT their market share and global competitiveness.  They even engage in corporate espionage to gain competitive advantages that US leaders give away via free trade.

Businesses don’t engage in anything remotely resembling free trade.  Why?   Because providing the competition with capital and technology guarantees failure.   Doing so would cause shareholders to demand criminal prosecution of the Board of Directors and top officers, which is what should be done to politicians who have intentionally traded away America’s economic future.   Manufacturing is the engine of economic growth, so outsourcing manufacturing in exchange for cheap trinkets is like the Native Americans selling their sovereignty for beads and blankets.

American history teaches the concept of manifest destiny.  But how many fur traders, homesteaders and gold miners were thinking about manifest destiny when they moved West?   Few if any, they didn’t even know what the phrase meant.  Manifest destiny is the language of ruling class elites, i.e. merchant bankers and industrialists.  They moved common folk across the American West like pawns on a chess board.  Ruling class elites wanted conflict with the Indians so they could call in the cavalry and manifest their destiny.

The new frontiers for today’s ruling class are Communist China and emerging markets.  Free trade is preparing the way for the global cavalry and final phase of manifest destiny.  For all intents and purposes, US financial elites and industrialists have seceded from the Union.  They’ve allied themselves with China’s totalitarian regime and are engaged in economic terrorism against the United States.  Media and politicians support this treasonous alliance and they exploit class and race divisions as part of a divide and conquer agenda.  They want divided Americans to blame each other and fight over the economic crumbs left behind by free trade and the financial crisis.  We’re all Indians now.

During a hearing on Dodd-Frank’s Resolution Authority, Republican Don Manzullo said it’s a safety net for “you guys that screw up on Wall Street”.  Economist Jeffery Miron replied saying the Resolution Authority is a “blank check” for future bailouts, and it will  “institutionalize TARP” for bank holding companies.

Dodd-Frank gives the F.D.I.C. resolution authority.  The FDIC is under the jurisdiction of the executive branch so future bailouts can be made without Congressional approval.  The Constitution states that all spending bills must originate in the House of Representatives, the branch of government most accountable to the people.  So allowing the executive branch to spend Trillions without Congressional approval violates a core Constitutional principle, no taxation without representation.  

The 2014 budget is another example of taxation without representation because bipartisan members of Congress admitted they didn’t read the bill.  If they’re not reading spending bills, they cannot be representing the interests of their constituents, i.e., taxation without representation.  The following text and next paragraph are from an article in USA TODAY:  The nearly 1,600-page spending bill includes all 12 of the individual annual spending bills packaged into a $1.012 trillion “omnibus” spending bill.  The bill will have gone from unveiling to law in just six days, while the normal appropriations process is structured to take months and allow for more lawmaker input.

Rep. Jim McGovern, D-Mass., holding up the thick bill on the House floor, criticized the House for voting on a bill “that nobody has read.”  McGovern cited a concern held by lawmakers in both parties that the details of the omnibus are likely to trickle out after the bill has become law.  ”I’m willing to bet in a week or so we’re going to read an article about something being in the bill that nobody knew about,”.  Jenny Beth Martin, co-founder of the Tea Party Patriots, characterized the bill as a “monstrosity.”  She said ”while Americans suffer the consequences of Obamacare, Congress is trying to rush through another massive bill before reading it,”

The key principle of our founding documents is equality before the law, which means no one is above the law.  But the U.S. is becoming a nation of women and men who can impose their tyrannical aspirations on sovereign citizens.  Criminal elites have created a legal double standard and placed themselves above the law.  This was the fundamental problem facing American colonists before the Revolution.

Thomas Jefferson addressed this problem in the Declaration of Independence, which was a criminal indictment of King George that provided a moral and legal basis for the Revolution.  The founders ended with these words: “And for the support of this Declaration, with a firm reliance on the protection of divine Providence, we mutually pledge to each other our Lives, our Fortunes and our sacred Honor”.

America’s founders understood the price of freedom, and if we are going to preserve the rule of law they fought and died for, we must be willing to commit time and resources to restore the rule of law.  Business Insider reports that Congress has legalized the use of domestic propaganda, which was used to legitimize Germany’s Nazi regime.

This website provides evidence for a criminal indictment of US leaders, however, I’m not advocating for armed rebellion as a remedy.  The Constitution and Bill of Rights are still the law of the land, and the law is on the side of “We the People” who believe in unalienable individual rights.  We need to create a groundswell of support that will force our public prosecutors to take legal action against criminal elites.

Media and politicians cover up the effect of the financial crisis on the national debt.  Check out the post Fraud and the Federal Debt for evidence of the cover up.  Use the evidence compiled in the website, share it with your friends, business associates, local prosecutor, Sheriff, State Attorney General and U.S. Attorney.

Fast and Furious, Guns, and Safe Schools

Alcohol Tobacco and Firearm (ATF) agents testified before Congress about Obama’s Fast and Furious program.  They said 2500 firearms, including AK 47s and 50 caliber sniper rifles, were allowed to “walk” into the hands of known drug cartel members.  One of those weapons was used to murder U.S. Border Patrol agent Brian Terry.

The three ATF whistleblowers were all veteran law enforcement officers.  They said walking guns into the hands of known criminals was something they had never seen before, or after, Fast and Furious.  But has Obama or other gun control advocates expressed  concern about Fast and Furious?  Not that I’m aware of.  Given this blatant double standard, Obama appears to be using the children murdered at Sandy Hook for political gain.

The opening statements of ATF whistleblowers demonstrate Obama’s gross hypocrisy on the issue of gun control.  Agent Forcelli said the Department of Justice and Arizona’s US Attorney approved of Fast and Furious, and “we weren’t giving guns to people who were hunting bear, we were giving guns to people who were killing other humans”.

Contrary to the left’s portrayal of gun dealers, Agent Forcelli said they helped the ATF make a lot of cases, but dealers objected to Fast and Furious because it encouraged the sale of guns to criminals.  ATF agents made it clear that existing laws could have prevented all 2500 weapons from getting into the hands of criminals.  Concerned citizens should email this post to local attorneys, prosecutors, Sheriffs, State Attorneys General and U.S. Attorneys.

The Bismarck Tribune ran an AP article about Mexican citizens who’ve taken up arms to protect themselves against drug cartels.  They’ve done so because their government has been unable to protect them.  In spite of the Mexican government’s ban on citizen ownership of guns, the article said they have “hunting rifles, old pistols, and small bore shotguns”.

Guess what kinds of weapons the drug cartels have?  According the the Fast and Furious hearing, drug cartels have heavy caliber, fully automatic machine guns and sniper rifles.  Organized crime is a growth industry in America and all around the world, so why would U.S. citizens want to put themselves in the same position as these poor Mexican citizens?  

Free societies cannot exist without the right of self defense.  That’s why the States refused to ratify the Constitution without a Bill of Rights that included a second amendment, which established self defense, not hunting, as an unalienable right.  Self defense is the ability to defend oneself, family, and property, independent of government.  There have always been corrupt elites who want to enslave the people and it’s up to citizens to stand up for their rights.

America’s founders acknowledged the persistent threat of tyranny in the Declaration of Independence, which was a criminal indictment of King George III and his cronies.  They said when a government fails to secure the unalienable rights of its citizens “it is the right of the people to alter or abolish it and institute a new government”.  For those who support the second amendment, suicide rates, murder rates, school shootings, etc., are not legitimate reasons to infringe on our unalienable right to bear arms.  This  article demonstrates sound judgement of private citizens holding permits to conceal and carry hand guns.  It says only .0002266% of permit holders have been involved in crimes defined as “mass shootings”.

The education systems of Nazi Germany and the Soviet Union produced great scientists and engineers, but there was no liberty for the individual.  Education can be used to promote tyranny or liberty, so societies based on democratic and republican principles should use schools to frame all knowledge in the context of our founding principles.  And the framers of the U.S. Constitution drew heavily on Judeo-Christian values when drafting America’s founding documents.

In William Federer’s book titled America’s God and Country, he documents references to God in the original charters of the colonies, State Constitutions, and other historical documents.  His work proves that Christian values were an integral part of American government, and they are the moral foundation making limited government possible.  We must restore the framers intent regarding the first amendment, i.e., freedom of religion, not freedom from religion.

Kelly Shackelford is president and CEO of First Liberty Institute, the largest legal firm in the nation dedicated exclusively to protecting religious freedom for all Americans.  But nearly all attacks on religious liberty are against Christians.

Dr. Charles Stanley had Kelly speak to his congregation.  He gave the people insight into his work by laying out the cases he took on over a two week period.  It was amazing, and Kelly received a standing ovation for his hopeful message.  You won’t find a more informative and encouraging presentation, please watch it.

The principles codified in the Constitution and Bill of Rights did not fall out of the sky in 1789. The framers of the Constitution were students of history.  They drew upon 2500 years of Western tradition beginning with ancient Greek democracy, the Roman Republic, the English Magna Carta, and Enlightenment.  Most had read books by Plutarch, Cicero, Montesquieu’s “Spirit of Laws”, John Locke’s “Second Treatise on Government”, and Adam Smith’s books “The Wealth of Nations” and “The Theory of Moral Sentiment”.

Legitimate representative government depends on the informed consent of the governed, so the Constitution and Bill of Rights should be taught K-12.  Schools should use interactive video games to teach children about the Constitution, Bill of Rights, and the need to preserve second amendment rights as a bulwark against tyranny.

High school seniors should be able to write about, and articulate the ideas expressed in books written by Montesquieu, Locke and Adam Smith.  This would produce High School graduates prepared to utilize the public’s investment in higher education.  And high school graduates would be far more informed than most of the people currently holding political office.  If we had such a well informed citizenry, I don’t think we’d be experiencing the current problems with education and tyrannical government.

The video game and entertainment industries target children with products exhibiting the most irresponsible, immoral use of guns imaginable.  So in fifth and sixth grades, incorporate interactive gun safety training into video games as an antidote to the barrage of gratuitous media violence.  Interactive video games can simulate any situation and teach the proper response to home invasions and school shootings.  Do this in conjunction with martial arts training that teaches discipline and restraint with regard to the use of force.

In order to limit school massacres, have marksmenship training in high school and involve top student marksmen (seniors) in a conceal-carry gun program with teachers.  Students and teachers with conceal-carry permits should train with law enforcement and prepare a planned response to a school shooting.

Some say school sports build character and benefit society.  To some degree that’s true, but in spite the huge public investment is sports, our society continues to decay.  Money from traditional sports programs should be used to finance the aforementioned programs, including martial arts.  For those who think seniors are too young to be involved in a conceal-carry program, let’s remember that students could be in Afghanistan shortly after graduation. 

Implementing these educational programs would create a population trained in self defense and grounded in natural law and Constitutional rights.  They would also deter most individuals who might consider shooting children in schools.  It’s also preferable to the NRA proposal, i.e. police in every school, as this only leads us further down the road to a police state.

Bringing a child into this world is an inherently risky proposition, we need to accept this fact and teach our children to be self reliant.  That’s why Native Americans sent young boys, on their own, into the wilderness as a rite of passage to adulthood.

Framing education in the context of Constitutional principles will require taking control of local school boards, and that will require community organizing, which has been given a bad name by the left.  But the left’s commitment to community organizing is why they’ve been successful, so those who want a return to limited Constitutional government must do the same.

The founders ended the Declaration of Independence with these words: “And for the support of this Declaration, with a firm reliance on the protection of divine Providence, we mutually pledge to each other our Lives, our Fortunes and our sacred Honor”.  They understood the price of freedom, and if we are going to preserve the Republic they fought and died for, we must commit time and resources to restoring limited Constitutional government. 

The term “assault weapon” is misleading because it simply refers to the cosmetic appearance of a weapon.  In other words, you can put the body of Corvette on a Prius, but it doesn’t change the performance of the vehicle.  The focus on assault weapons is a backdoor attempt to eventually ban all semi-automatic weapons.  Regarding high capacity clips, if a couple of armed individuals break into someone’s home, the homeowner will need a semi-automatic weapon and a very large clip to defend his/her family and property.

The Sandy Hook shooter stole weapons from his mother, so no amount of background checks would’ve saved the children he murdered.  And only 2% of people killed by guns are killed by “assault weapons”.  More people are killed by bats and clubs.  Obesity probably kills more people than guns, so should we ban the forks and spoons that deliver those evil food bullets to the body?  Unfortunately, gun control advocates don’t seem to care about facts or rational arguments.  Instead, they hide their tyrannical agenda behind safety issues, and “protecting the children”, while chipping away at individual liberties.

When President Obama accepted his Nobel Peace Prize, he said his first responsibility was to “protect the American people”.  President Bush used this same phrase to justify the Patriot Act, Homeland Security, and indefinite detention of U.S. citizens without due process.  And President Obama has doubled down on policies that eviscerate the Bill of Rights.  The oath of office says a President’s first responsibility is to uphold, protect, and defend the Constitution against all enemies, foreign and domestic, not the American people.

The world was just as dangerous when our founders created this oath, so why didn’t they write an oath that focused on protecting the people instead of the Constitution?  It’s because the “protect the people” argument can be used to endlessly chip away at the Bill of Rights until we live in a virtual dictatorship.  And that’s exactly what despotic bipartisan leaders are doing, meanwhile, they’ve partnered with China’s communist regime and turn a blind eye to the global network of Islamic extremism funded by Saudi Arabia.

Democrats tend to use environmental, gun control, and healthcare issues to chip away at individual liberties.  Republicans use national security to advance tyrannical policies.  They’re like tag team wrestlers, so no matter which party is in power, they can always find an issue to justify their incremental march toward despotism.  That’s why K-12 Constitutional curriculum should emphasize the States refusal to ratify the Constitution without a Bill of Rights.

Specifically the tenth amendment which states: “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.”  For more possible solutions based of America’s founding principles, check out the post, The Boston Tea Party, It Wasn’t Just About Taxes.

Another interesting source is the book Godonomics, which illustrates the Biblical principles behind private property rights and market economies based on moral principles.

THERE IS HOPE FOR AMERICA: Share this with Christian friends and leaders

In the following short video, President Reagan encourages Americans with the following words:

“Let us begin an era of national renewal.  Let us renew our determination, our courage, and our strength, and let us renew our faith and our hope.  It is time to realize that we are too great a nation to limit ourselves to small dreams.  We will again be an exemplar of freedom, and a beacon of hope for those who do not have freedom.  We are a nation under God and I believe God intended us to be free.”

There is hope for America if we put first things first.  So if you’re not sure of your salvation, stop reading and listen to Dr. Charles Stanley explain what it means to be saved by grace through faith in Jesus Christ.  Because as Christ said, we can do nothing without him.

John 15:5 I (Jesus) am the vine, ye are the branches: He that abideth in me, and I in him, the same bringeth forth much fruit: for without me ye can do nothing.  But once we abide in Christ, the Holy Spirit can work through us to produce good works.  Ephesians 2:10 For we are his (God’s) workmanship, created in Christ Jesus unto good works, which God hath before ordained that we should walk in them.

When writing to Timothy, the apostle Paul said praying for those in authority should be a priority.  1Timothy 2:1-6  I exhort that, first of all, supplications, prayers, intercessions, and giving of thanks, be made for all men; 2 For kings, and for all that are in authority; that we may lead a quiet and peaceable life in all godliness and honesty. 3 For this is good and acceptable in the sight of God our Saviour; 4 Who will have all men to be saved, and to come unto the knowledge of the truth. 5 For there is one God, and one mediator between God and men, the man Christ Jesus; 6 Who gave himself a ransom for all, to be testified in due time.

Isaiah said the government shall be on Christ’s shoulder.  Isaiah 9:6  For unto us a child is born, unto us a son is given: and the government shall be upon his shoulder: and his name shall be called Wonderful, Counsellor, The mighty God, The everlasting Father, The Prince of Peace.  The apostle Paul said the church is Christ’s body on earth, which means Christ’s shoulder is already on earth.

Colossians 1:18 And he (Christ) is the head of the body, the church…  Matthew 28:18  And Jesus came and spake unto them, saying, All power is given unto me in heaven and in earth.  The Body of Christ is on earth, and Christ has all power in heaven and earth, so why don’t Bible believing Christians control America’s government?

Jesus Christ said his kingdom was not of this world, but Romans 13 says God has ordained the rulers of this world to be a force for good.  And God ordained America as a government of, by, and for the people, i.e., we the people are the rulers and we elect public servants to represent our interests.

As a Constitutional Republic, our government makes decisions based on the consent of U.S. citizens.  And because America is a nation ruled by the consent of the governed, it’s our God ordained duty NOT to consent when our government sanctions evil.  Proverbs 1:10 My son, if sinners entice thee, consent thou not.  

Many Christian leaders say government is not the solution and changing peoples hearts with the Gospel will change America.  This is true, but if a neighbor is beating his wife and children, should we allow him to continue abusing his family because government (law enforcement) is not the solution?

In other words, if a neighbor’s wife comes to our door, battered by her husband, asking us to call the police, do we send her home to tell her husband about Jesus because government is not the solution?  The apostle Paul said we are created to do good works.  Working to uphold Godly standards in government could only be a good work.  James 4:17 Therefore to him that knoweth to do good, and doeth it not, to him it is sin.

Most of the sexual content and profanity on television today was illegal in the 1950’s.  Why was it illegal?  Because the filth on television today is a major cause of the corruption of our nation, especially children.  All things are possible with God, so I believe Christians can restore the moral standards of the past.  It’s about living up to the standards Jesus taught in the good Samaritan parable.  For example, many of our neighbors do not carefully monitor what their children watch.  So by making the filth on television illegal, we are effectively watching out for our neighbor’s children.

When addressing corruption in society, Christian media tends to focus on the gay agenda, which is understandable because there is an attempt to redefine the family.  But the Bible focuses more on heterosexual sin, i.e. any sex outside of marriage between a man and a woman.  Jesus raised the standard to include looking lustfully upon others.

Ancient Israel and Judah were ruled by kings for hundreds of years.  During that time, both nations prospered when obedient to God and both suffered when they disobeyed God.  During times of disobedience, God placed most of the responsibility on corrupt leaders, i.e., kings, princes and priests.  Proverbs 29:2  When the righteous are in authority, the people rejoice: but when the wicked beareth rule, the people mourn.  God told Isaiah that Israel’s leaders caused the people to err.  Isaiah 9:16 For the leaders of this people cause them to err; and they that are led of them are destroyed.

Like America’s leaders today, ancient Israel’s leaders used government to decree evil.  Isaiah 10:1-2 Woe unto them that decree unrighteous decrees, and that write grievousness which they have prescribed; 2 To turn aside the needy from judgment, and to take away the right from the poor of my people, that widows may be their prey, and that they may rob the fatherless!

Under the guise of social justice, bipartisan leaders implement laws designed to bankrupt America morally and financially.  Business and political leaders commit crimes with impunity.  If they are not held accountable, the people will bear the consequences of their leaders crimes.

Criminals are running America’s government, so if citizens do not hold them accountable under the law, evil reigns supreme.  In a letter to Timothy, the apostle Paul said the law is to be used on the lawless.

1 Timothy 1:9-10 Knowing this, that the law is not made for a righteous man, but for the lawless and disobedient, for the ungodly and for sinners, for unholy and profane, for murderers of fathers and murderers of mothers, for manslayers, 10 For whoremongers, for them that defile themselves with mankind, for menstealers, for liars, for perjured persons

Jesus said we should love our enemies, so when our enemies are criminals, enforcing the law is an act of love because one purpose of the law is to bring people to repentance and Christ.

Instead of holding corrupt leaders accountable, many Christian leaders cite 2 Chronicles 7:14 If my people, which are called by my name, shall humble themselves, and pray, and seek my face, and turn from their wicked ways; then will I hear from heaven, and will forgive their sin, and will heal their land.  But if someone is robbing people in the neighborhood, do Christians blame themselves or demand the perpetrator be incarcerated?

Christians must be humble and repentant before God, but they should not assume responsibility for crimes they have not committed.  When Elijah believed he was the only godly man left in Israel, God said there were 7000 who had not bowed their knee to Baal.  So in a corrupt nation, God does not include the faithful among transgressors. 

Before applying 2 Chronicles 7:14 to America, we must consider the biblical context.  The verse was spoken by God to King Solomon, and the key words are “my people” and “their land”.  Long before Solomon became king, God commanded the Israelites to possess the land by driving out the ungodly inhabitants.  And it did not become “their land” until God’s commandments, statutes, and judgments were imposed via government.

When God says “my people”, he’s referring to faithful believers.  So God does not consider supporters of abortion, gay marriage, and forcing God out of the public square, as “my people”.  Romans 9:6-8 …For they are not all Israel, which are of Israel:  7 Neither, because they are the seed of Abraham, are they all children: but, In Isaac shall thy seed be called. 8 That is, they which are the children of the flesh, these are not the children of God…

America is not a theocracy so we do not drive ungodly people out of the land, but we must place God fearing men and women in positions of authority and govern based on the Biblical principles America was founded upon.  This can done peacefully and lawfully when the love of God for all people is the driving force in our hearts.

In William Federer’s book titled America’s God and Country, he documents references to God in the original charters of the colonies, State Constitutions, and other historical documents.  His work proves that Christian values were an integral part of American government, and they are the moral foundation making limited government possible.  We must restore the framers intent regarding the first amendment, i.e., freedom of religion, not freedom from religion.

When Moses set up the first tribal government over Israel, his father in law Jethro gave him this advice. Exodus 18:21 Moreover thou shalt provide out of all the people able men, such as fear God, men of truth, hating covetousness; and place such over them, to be rulers of thousands, and rulers of hundreds, rulers of fifties, and rulers of tens.

The Bible says God raises up, and takes down kings.  But it also says men raise up kings apart from God.  Hosea 8:4 They have set up kings, but not by me (God): they have made princes, and I knew it not: of their silver and their gold have they made them idols, that they may be cut off.

In my opinion, the leadership of both political parties are covetous liars who do not fear God.  And they raise up virtual kings, but not by God.  We can raise up leaders according to God’s will.

Kelly_Shackelford

Kelly Shackelford

Kelly Shackelford is president and CEO of First Liberty Institute, the largest legal firm in the nation dedicated exclusively to protecting religious freedom for all Americans.  But nearly all attacks on religious liberty are against Christians.  Go to their website and click on “resources” for info on legal cases.  The Institute provides free services for clients and works with top law firms whose attorneys “fight for the opportunity to donate their time” to religious liberty cases.

Kelly Shackelford is first and foremost, an outspoken Christian.  In the video below, he said his work is about standing up for Jesus Christ, and winning does not require a majority of people, winning requires a committed minority willing to stand up for Jesus Christ.  Kelly said they win over 90% of their cases because they operate on principles like those in Joshua 1:9 Have not I commanded thee? Be strong and of a good courage; be not afraid, neither be thou dismayed: for the LORD thy God is with thee where ever you go.

Dr. Charles Stanley had Kelly speak to his congregation.  He gave the people insight into his work by laying out the cases he took on over a two week period.  It was amazing, and Kelly received a standing ovation for his hopeful message.  You won’t find a more informative and encouraging presentation, please watch it.

Joni Lamb also interviewed Kelly who said, “the only reason we will lose religious liberty in this country is if we don’t stand for them”.  Following Christ’s example as a humble servant speaking truth in love is the key to restoring America to a virtuous Republic.

Romans 13:10-14 Love worketh no ill to his neighbour: therefore love is the fulfilling of the law. 11 And that, knowing the time, that now it is high time to awake out of sleep: for now is our salvation nearer than when we believed. 12 The night is far spent, the day is at hand: let us therefore cast off the works of darkness, and let us put on the armour of light. 13 Let us walk honestly, as in the day; not in rioting and drunkenness, not in chambering and wantonness, not in strife and envying.  14 But put ye on the Lord Jesus Christ, and make not provision for the flesh, to fulfil the lusts thereof.

There are humble Christians speaking truth in love while working to abolish abortion.  Reverend Frank Pavone is a Catholic priest and President of the National Pro-Life Religious Council.  The website promoting his book Abolishing Abortion states, “The battle against abortion not only can be won, but it must be won.  The soul of our nation depends on it.”

Rev. Pavone was a guest on the “Herman and Sharron” show.  Herman and Sharron Bailey are Protestants working to abolish abortion, and their interview with Rev. Pavone is a great example of Christian unity.  The website and interview provide valuable facts and exemplify the Christ like attitude that will restore America to a virtuous Republic.

With regard to restoring Godly standards in government, American Christians have been told prayer is enough, but prayer without faith, and faith without works, is dead.

Driving the ungodly out of power may seem an impossible task, but God loves doing the impossible through his people because He gets all the glory.  Mark 9:23 Jesus said unto him, If thou canst believe, all things are possible to him that believeth.  Jesus was talking about our authority to cast out demons, so we certainly have authority to remove corrupt officials from office.  When God’s people lead, the leaders will follow.

Many Christian leaders call attention to the moral decay causing America’s decline.  But many also talk as if America’s decline is inevitable. They sound like the ten spies (Numbers 13&14) that convinced the Israelites they could not drive God’s enemies out of the promised land.  God regarded the Israelites fear and unbelief as rebellion against his will.  As a result, God condemned the unbelievers to death and forty years of wandering in the wilderness.

Is that what Christian leaders want for American Christians, i.e., die in the wilderness because we didn’t believe God would help us hold corrupt leaders accountable?  God did not tell Joshua to pray and hope the heathens would leave the promised land.  The Lord told Joshua to combine his faith with action and drive the enemies out of the land.

Likewise, Ezra and Nehemiah didn’t pray and then sit around waiting for someone to rebuild the temple and walls of Jerusalem.   Nehemiah gave up his comfortable position in the king’s palace and went back to Jerusalem to serve his God and kinsmen.  Ezra also took action and helped restore God’s law in Jerusalem’s government and society while rebuilding the temple.

Listen to this sermon titled “There is hope for America”.  It’s a fourth of July special by Pastor Michael Youssef.  He uses Nehemiah’s example of prayer and action as a template for the American church. Pastor Youssef’s sermon demonstrates how faithful Christians can change America.  Let’s encourage each other by sharing this kind of positive message instead of predicting America’s inevitable decline.  There is a worldly definition of positive, but Christians are positive because we are children of the God who created heaven and earth.

Christians are literally the body of Christ on earth, and as such, we must combine prayer and faith with action.  We send our men and women to fight and die for freedom in foreign countries, so the least we can do is stand up for Christian values and freedom here at home.  To do anything less makes a mockery of the sacrifice made by our troops.  James 5:16 …The effectual fervent prayer of a righteous man availeth much.  James 2:20 But wilt thou know, O vain man, that faith without works is dead?

Furthermore, it’s a tiny minority that’s pushing abortion, God out of the public square, the gay agenda, and paganism a.k.a. environmentalism.  Take California for example, a majority of citizens voted to make gay marriage ILLEGAL, but a single judge overturned the will of the people.  And yet, Christian leaders talk about America as if it’s Sodom and Gomorrah, which God destroyed because he could not find ten righteous men. There are millions of Bible believing Christians in America who are the righteousness of God in Christ Jesus.

If Christians follow the examples of Joshua, Nehemiah and Ezra, we can restore godly government in America.  But Christian leaders must stop promoting unbelief in God’s ability to help us turn America back to God.  They must encourage Christians to pray and act on their faith, i.e., pray and stand up for what’s right.  All around the world, the economy and government of the United States are being used to lure people into hell.  Millions, perhaps billions of souls are at risk if we ignore our responsibility to stand up for Christian values in our government.

By the Providence of God, America is a nation ruled by the consent of its citizens.  So NOT consenting to the corruption of America is our duty as citizens.  The Body of Christ must do five things: 1) Repent of unbelief  2) Pray  3) Have faith in God and act on that faith  4) Organize and vote because less evil is better than more evil  5) Starting at the local level, place Bible believing men and women in positions of authority.  Romans 8:31 What shall we then say to these things? If God be for us, who can be against us?

Jesus Christ came as a servant and said the greatest in the Kingdom of God would be a servant of all.  Being a servant includes public service that promotes Christian values in government.  America was founded upon Biblical principles and we prospered because those principles were applied in government.  If millions of godly servants donate time and money, we can reapply Biblical principles in government and restore America to a virtuous Republic.  Praise God!

There are many things we can do.  Educate ourselves, families, and friends.  Get involved in your local school board or county government.  Start a non-profit dedicated to promoting Christian values in public and private life.  Support organizations like Obama Zone, which defends local communities from Obama’s attempt to control zoning law.  Or Get Liberty, which works for limited government.  Whatever you do, lead by example, use your God given creativity, and never give up.

In spite of many signs we are in the end times, now is not the time to be passive.  Believing it’s futile to stand up for Christian values in government is contrary to Biblical principles.  For example, in Isaiah chapter 6, the prophet hears the Lord saying  8 Whom shall I send, and who will go for us? Then said I, Here am I; send me. 9 And he said, Go, and tell this people, Hear ye indeed, but understand not; and see ye indeed, but perceive not.

God told Isaiah to call the nation of Israel to repentance.  But God also said the people would not listen and the land would become “utterly desolate”.  So why did God send Isaiah on a mission that seemed destined to fail?  God said a remnant would return to the land, and His promises would be fulfilled through the remnant.  We may experience short term failure, but long term, it’s never futile to stand up for godly values in government.

God expects us to act on our faith, even if things look hopeless and everyone seems to be against us.  Ezekiel 22:30  And I sought for a man among them, that should make up the hedge, and stand in the gap before me for the land, that I should not destroy it…   God was looking for one person to stand in the gap for Israel.  We don’t need overwhelming numbers to turn America around, we need to believe in the God that created the heavens and the earth.  God often uses seemingly impossible situations to demonstrate his power.

Zerubbabel faced great opposition when trying to rebuild the temple, so God sent an angel to remind them that true power is spiritual, which is contrary to the world’s understanding of power.  Zechariah 4:  …This is the word of the LORD unto Zerubbabel, saying, Not by might, nor by power, but by my spirit, saith the LORD of hosts.  The Bible predicts global corruption but we can take a stand on God’s Word and say, not on our watch.  All things are possible with God, and with his help, America will again be a light in a dark world.

IS GOD JUDGING AMERICA?

2 Corinthians 5:19  …God was in Christ, reconciling the world unto himself, not imputing their trespasses unto them; and hath committed unto us the word of reconciliation.  Many Christian leaders say God is judging America, but that contradicts the previous verse.  Through Christ, God is reconciling the world unto himself, including America.  And God is not imputing sin unto the world, including America.

The book of Revelation describes a time in the future when God will judge all people and nations.  But God is not yet imputing sin unto nations or individuals, so we must not speak legalistic curses (condemnation) over them.  John 3:16 For God so loved the world… God chastens those he loves, but that’s very different from God judging sin and pouring out his wrath.

Jesus said he did not come to judge but to save: John 12:47-48 And if any man hear my words, and believe not, I judge him not: for I came not to judge the world, but to save the world. 48 He that rejecteth me, and receiveth not my words, hath one that judgeth him: the word that I have spoken, the same shall judge him in the last day.

The apostle Paul said we should judge nothing before the time, until the Lord comes. 1 Corinthians 4:3-5 But with me it is a very small thing that I should be judged of you, or of man’s judgment: yea, I judge not mine own self. 4 For I know nothing by myself; yet am I not hereby justified: but he that judgeth me is the Lord. 5 Therefore judge nothing before the time, until the Lord come, who both will bring to light the hidden things of darkness, and will make manifest the counsels of the hearts: and then shall every man have praise of God.

When God judges the world, the Bible says great tribulation will come upon all nations, including Israel.  Revelation 18:1-4 And after these things I saw another angel come down from heaven, having great power; and the earth was lightened with his glory. 2 And he cried mightily with a strong voice, saying, Babylon the great is fallen, is fallen, and is become the habitation of devils, and the hold of every foul spirit, and a cage of every unclean and hateful bird.

3 For ALL NATIONS have drunk of the wine of the wrath of her fornication, and the kings of the earth have committed fornication with her, and the merchants of the earth are waxed rich through the abundance of her delicacies. 4 And I heard another voice from heaven, saying, Come out of her, my people, that ye be not partakers of her sins, and that ye receive not of her plagues.

Many Christians link America’s success or failure to it’s relationship with Israel, as if blind support for Israel will cause God to bless America.  They cite Genesis 12:3 And I will bless them that bless thee, and curse him that curseth thee…  This was part of God’s promise to Abraham, whose seed God used to bless all the world through Jesus Christ.

But using Genesis 12:3 to curse anyone that does not blindly support Israel, is a perversion of God’s Word.  In the Bible, Israel repeatedly went against God’s will, and those who supported Israel during those times, were against God.  And the prophets who did not support Israel’s rebellion, were speaking for God.

Matthew 23:34 [Jesus said] Wherefore, behold, I send unto you [Israel] prophets, and wise men, and scribes: and some of them ye shall kill and crucify; and some of them shall ye scourge in your synagogues, and persecute them from city to city: 37 O Jerusalem, Jerusalem, thou that killest the prophets, and stonest them which are sent unto thee, how often would I have gathered thy children together, even as a hen gathereth her chickens under her wings, and ye would not!

Ruth Graham is the wife of evangelist Billy Graham.  While reading a section of her husband’s book describing the downward spiral of America’s morality, Ruth exclaimed, “if God doesn’t punish America, He’ll have to apologize to Sodom and Gomorrah”.  Even though Americans give millions of dollars a year to their ministry, the Grahams seem to believe America is as bad or worse than Sodom and Gomorrah, and deserves similar punishment .

The Graham’s attitude toward America was very different from Abraham’s when the LORD told him Sodom and Gomorrah would be destroyed.  In spite of the total depravity of those cities, Abraham pled with God to have mercy on them.  As a result , God said he would not destroy them if He could find ten righteous men living in the two cities.  Apparently, Billy and Ruth Graham did not know ten American Christians who, by grace through faith, are righteous before God in Christ.

Billy and Ruth made the same mistake as James and John when they asked Jesus to destroy a Samaritan village.  Luke 9:51-56 And it came to pass, when the time was come that he (Jesus) should be received up, he stedfastly set his face to go to Jerusalem, 52 And sent messengers before his face: and they went, and entered into a village of the Samaritans, to make ready for him. 53 And they did not receive him, because his face was as though he would go to Jerusalem.

54 And when his disciples James and John saw this, they said, Lord, wilt thou that we command fire to come down from heaven, and consume them, even as Elias did? 55 But he turned, and rebuked them, and said, Ye know not what manner of spirit ye are of. 56 For the Son of man is not come to destroy men’s lives, but to save them. And they went to another village.  So even Christ’s own disciples mistakenly entered into judgement contrary to God’s will, and yet, like Billy and Ruth Graham, God used them to do great things.  Praise God!

Like Abraham who pleaded with God to have mercy on Sodom and Gomorrah, Moses and the apostle Paul made similar pleas for Israel.  After the Israelites made a golden calf and worshiped it, God was going to destroy them.  But Moses pleaded with God to forgive them and even asked God to remove him from the book of life if He didn’t spare Israel.  Exodus 32:32 Yet now, if thou wilt, forgive their sin–; and if not, blot me, I pray thee, out of thy book which thou hast written.

The apostle Paul said he would choose to be accursed if it would result in Israel’s salvation.  Romans 9:1-4 I say the truth in Christ, I lie not, my conscience also bearing me witness in the Holy Ghost, 2 That I have great heaviness and continual sorrow in my heart. 3 For I could wish that myself were accursed from Christ for my brethren, my kinsmen according to the flesh: 4 Who are Israelites; to whom pertaineth the adoption, and the glory, and the covenants, and the giving of the law, and the service of God, and the promises;  Given the examples set by Jesus, Abraham, Moses and Paul, why are Christian leaders are so quick to condemn America and the church?

TBN’s “Praise the Lord” recently featured four prominent teachers of Bible prophecy, all of whom speak curses over America and the church.  They say God is judging America for its sins and predict an imminent collapse.  But one does not have to be a prophet to know that evil forces are trying to destroy America from within.  In some cases, it seems like prophecy experts use fatalistic predictions of judgement to prevent Christians from holding corrupt leaders accountable.  Matthew 24:4,11 And Jesus answered and said unto them, Take heed that no man deceive you. 11 And many false prophets shall rise, and shall deceive many.

Rabbi Jonathan Cahn was one of the prophecy experts featured on TBN.  His new book allegedly unlocks the mystery of Shemitah, and uses the Shemitah to predict God’s imminent judgement of America.  But before jumping on  Cahn’s curse America bandwagon, listen to Dr. Baruch Korman’s teaching on the Shemitah.

Dr. Korman is a Jewish believer in Jesus Christ and a Hebrew scholar.  He addresses the “sensational” and misleading use of the Shemitah for predicting judgement.  Dr. Korman cites scripture that says the misuse of Shemitah is “demonic”.  Please watch the following video so you’re not deceived by false teachers.  You can find many Biblically accurate teachings at Dr. Korman’s website: Love Israel.org

2 Peter 2:1-3 But there were false prophets also among the people, even as there shall be false teachers among you, who privily shall bring in damnable heresies, even denying the Lord that bought them, and bring upon themselves swift destruction. 2 And many shall follow their pernicious ways; by reason of whom the way of truth shall be evil spoken of. 3 And through covetousness shall they with feigned words make merchandise of you…  Christ saw the people as sheep in need of a good shepherd.  Unfortunately, today’s false teachers see people as sheep they can lead to the slaughter, for a price. 

Those who say the church is under the curse of the law are perverting the gospel.  Galatians 3:11 But that no man is justified by the law in the sight of God, it is evident: for the just shall live by faith. 12 And the law is not of faith: but the man that doeth them shall live in them. 13 Christ hath redeemed us from the curse of the law, being made a curse for us: for it is written, Cursed is every one that hangeth on a tree: 14 That the blessing of Abraham might come on the Gentiles through Jesus Christ; that we might receive the promise of the Spirit through faith.

The following Declaration is being promoted by Andrew Wommack Ministries.  Andrew is placing full page ads in major newspapers and asking Christians to sign the declaration as a first step toward re-establishing America’s foundation on Godly principles.  You can sign the declaration at Dependence on God.

DECLARATION OF DEPENDENCE
UPON GOD AND HIS HOLY BIBLE
 

We hold these truths to be self-evident, that all men are created equal and endowed by their Creator with certain unalienable rights. Since our Creator gave us these rights, we declare that no government has the right to take them away. Among these rights is the right to exercise our Christian beliefs as put forth in God’s Holy Bible.

We therefore declare that God grants life at conception and no one has the right to take that life unless it is a direct threat to the life of the mother.

Marriage was instituted by God between one man and one woman. The Lord gave only this family unit the responsibility to have children and raise them in the fear of the Lord.

We therefore respectfully reserve the right to refuse any mandate by the government that forces us to fund or support abortion. We also oppose same sex-marriage, polygamy, bestiality, and all other forms of sexual behavior prohibited by Holy Scripture.

We proclaim that Jesus has provided the cure for all sin and therefore reach out to the sinner in love, but do not embrace the sin, knowing its destructive nature.

Therefore, we, the undersigned– not only as Christians but also believing we have the constitutional right as Americans to follow these time honored Christian beliefs– commit to conducting our churches, ministries, businesses, and personal lives in accordance with our Christian faith and choose to obey God rather than man. (The end) Go to Dependence on God and sign this declaration of dependence on God and His Holy Bible.

This post began with encouraging words from President Ronald Reagan. Today, we do not have a God fearing leader like Reagan to inspire us, so now we must make his words our own, renew our hope and faith in God, and once again make America a light in a dark world.

“Let us begin an era of national renewal.  Let us renew our determination, our courage, and our strength, and let us renew our faith and our hope.  It is time to realize that we are too great a nation to limit ourselves to small dreams.  We will again be an exemplar of freedom, and a beacon of hope for those who do not have freedom.  We are a nation under God and I believe God intended us to be free.”

Ephesians 1:2-3 Grace be to you, and peace, from God our Father, and from the Lord Jesus Christ.  3 Blessed be the God and Father of our Lord Jesus Christ, who hath blessed us with all spiritual blessings in heavenly places in Christ.

Did CNN say Obama is a dictator and his policies are ruining America?

Fareed Zakaria has a show on CNN called “GPS”, and each week he does a segment called “What in the world?”.  On November 17,  2013, this segment was about “How to ruin an economy”.  Fareed went through the following checklist of policies that will ruin a nation’s economy:

  • Nationalize businesses
  • Create hyperinflation
  • Induce a currency crisis
  • Subsidize, subsidize, subsidize
  • Create a dictatorship

The segment was actually about Venezuelan president Hugo Chavez and his successor.  But the parallels with Obama’s policies are undeniable and it’s possible CNN was using the segment as subtle criticism of Obama’s failing policies.  In the past, the socialist policies of Hugo Chavez were held in high regard by CNN and other left leaning networks.  So on the surface, this criticism of Venezuelan socialism seems like an ideological shift, but it’s just another example of media hypocrisy.

Regarding Obama the dictator, it’s a historical fact that dictatorial regimes can only take power when there’s support from financial elites.  Propagandists on the left say big government is good and big business is bad.  Propagandists on the right say the opposite, i.e., big business is good and big government is bad.  But history proves that dictatorial regimes are almost always the result of a public-private partnership involving big government and big business.

The 2014 budget is an example of the same tyranny faced by pre-revolutionary colonists, i.e., taxation without representation.  The following text and next paragraph are from an article in USA TODAY:  The nearly 1,600-page spending bill includes all 12 of the individual annual spending bills packaged into a $1.012 trillion “omnibus” spending bill.  The bill will have gone from unveiling to law in just six days, while the normal appropriations process is structured to take months and allow for more lawmaker input.

Rep. Jim McGovern, D-Mass., holding up the thick bill on the House floor, criticized the House for voting on a bill “that nobody has read.”  McGovern cited a concern held by lawmakers in both parties that the details of the omnibus are likely to trickle out after the bill has become law.  ”I’m willing to bet in a week or so we’re going to read an article about something being in the bill that nobody knew about,”.  Jenny Beth Martin, co-founder of the Tea Party Patriots, characterized the bill as a “monstrosity.”  She said ”while Americans suffer the consequences of Obamacare, Congress is trying to rush through another massive bill before reading it,”

If representatives aren’t reading spending bills, there’s no way they can be representing the interests of their constituents, which means there is no representation for taxation.

FRAUD AND THE FEDERAL DEBT

Most media and politicians seem to have trouble distinguishing between Federal budget deficits and the national debt.  But I suspect it’s just another attempt to confuse the public.  Budget deficits are the annual amount that government spending exceeds income.  And America’s national debt is the total of all Federal budget deficits.

When George Bush took office in 2001 the national debt was 5.7 Trillion (treasurydirect.gov).  By the end of his second term the debt was 10.7 Trillion.  Five years into Obama’s Presidency, the debt was approaching 17 Trillion.  It took over 210 years to accrue a 5.7 Trillion debt and only twelve years to triple the debt.  So what has caused the national debt to triple in 12 years?  The Congressional Budget Office (CBO) says it will cost taxpayers $8.6 Trillion to prop up big banks after the financial crisis. 

One of the most powerful positions in Congress is Chairman of the House Financial Services Committee.  This position was held by Democrat Barney Frank until 2010 when Republican Jeb Hensarling became Chairman.  During a House debate over the $700 billion bank bailout (TARP), Jeb said the budget deficit rose 800% to 1.2 Trillion, and taxpayers are on the hook for 8 Trillion due to the financial crisis.  The Congressional Budget Office (CBO) says it will cost taxpayers $8.6 Trillion to prop up big banks after the financial crisis. 

The Federal Budget went over the fiscal cliff in 2008 because of the financial crisis and resulting “Great Recession”.  Simon Johnson is a member of the CBO council of advisers, an MIT professor, and former chief economist for the International Monetary Fund.  In the clips below from a Senate hearing, Johnson says budget deficits and debt are driven by a drop in government revenue due to the recession.  Budget Chairman Kent Conrad and ranking Republican Judd Gregg did not disagree with Johnson’s analysis of the numbers, only his solutions.

Johnson cites J P Morgan CEO Jamie Dimon and former Treasury Secretary Hank Paulson who say they expect another financial crisis in “3 to 7 years”.  Based on their prediction, Johnson said another crash of “Too Big To Fail” banks represents a short term budget liability equal to 40% of GDP (5.6 TRILLION), and CBO rules require this be scored in the budget.  Ranking Republican Judd Gregg  replied, “we don’t score a lot of things around here”, i.e., we’re cooking the books.

Not scoring items in the budget, i.e., keeping items off the books, includes some very big numbers.  When Fannie and Freddie collapsed, their 6.3 Trillion of toxic assets and liabilities were dumped on taxpayers, but they are off budget.  This article by the Heritage Foundation explains the off budget funding of both wars, which includes 60 billion dollars of waste, fraud, and abuse.  Finally, Trillions of dollars of trade deficits have resulted in the selling off of America to foreign governments like Communist China. 

In response to exploding Federal deficits and debt, the Simpson Bowles Commission and Super Committee were formed to address the fiscal crisis.  They both failed so the Budget Control Act was adopted which allowed Bush tax cuts to expire and implemented spending cuts (sequestration) on January 1, 2013.

Taxes will increase and entitlements will eventually be slashed to deal with the after effects of the Wall Street meltdown(s).  But the media narrative never frames the fiscal cliff in a factual context, i.e., exploding deficits and debt are primarily due to the financial crisis and resulting Great Recession, not entitlements and tax policy.

The so called conservative media says welfare programs and tax policy are the driving force behind America’s financial woes.  I do believe there’s a seditious attempt to create a socialist culture of dependence, but the facts indicate that this is a top down agenda, not grass roots.

The costs of unemployment compensation, food stamps etc., are substantial, but welfare for the financial elite is an existential threat to our economy and Constitutional rights.  For example, Obama wants Trillions for future bank bailouts, without Congressional approval.  And yet, “conservative” media says big business needs a tax cut.  But Republican tax guru Grover Norquist said, “corporations don’t pay taxes, they collect them from you and me…”.

In order to cover up the cost of toxic assets dumped on taxpayers and Trillions still held by banks, Congress pressured the Financial Accounting Standards Board to relax mark to market rules.  These rules require large companies to mark balance sheet assets to current market value.  But now, the relaxed rules allow government and banks to falsify the value of toxic assets on their balance sheet.  Small business owners would be charged with fraud for engaging is similar accounting practices.

Desmond Lachman is a former Deputy Director of the International Monetary Fund.  During testimony before Congress, he said “if the Federal Reserve balance sheet is marked to market, the Fed would have an enormous negative position”.  Systemic fraud is the new accounting standard for government and Wall Street.

Political leaders say cutting spending is a priority for restoring fiscal soundness.  But if my accountant is cooking the books and embezzling from my business, I can cut spending to zero and still go bankrupt.  And that’s what will happen to America if accounting rules promoting fraud are the standard.

The President of the Kansas City Federal Reserve said Too Big To Fail companies “have the availability of different rules” …. “The United States has been the most successful economy in history…because for the most part over it’s history, it has been bound by the rules of capitalism, which does in fact reward success, but also compels participants in the market to play by open rules…and [participants] are compelled to fail when they make poor decisions”.  This keeps markets efficient and creates winners based on merit, not privilege. 

                       THE FINANCIAL CRISIS AND US DEBT

Some people say the Community Reinvestment Act (CRA) caused the subprime bubble because it forced banks to make loans to people who couldn’t repay them.  But the CRA was enacted in 1977 and had little to do with the 2008 financial crisis.  Most of the subprime loans were originated by lenders exempt from the CRA and regulated by the Federal Reserve.  And FED Chairman Alan Greenspan had virtually eliminated underwriting standards for mortgage brokers.

Thanks mostly to Greenspan, when the bubble burst, one in three mortgages required no proof of income or assets.  As stated by Republican Don Manzullo in the previous link, the Fed could’ve prevented the crisis because it had authority to reduce risk by setting reasonable underwriting standards.  But it did not, so in response to the financial crisis, the new Consumer Financial Protection Bureau (CFPB) was created by Obama’s Finance Reform (Dodd-Frank).

This brings to mind Rahm Emanuel, President Obama’s former chief of staff.  He said we should never let a serious crisis go to waste because it allows us to do things we could not do before.

So the financial crisis was used to create the CFPB, which is under the authority of the Fed, which did not use it’s authority to prevent the last crisis. OOPS!  The CFPB is supposed to protect consumers via new banking regulations.  But during a House hearing, Republicans blasted Raj Date, the acting Director of the CFPB, which is just another redundant, unaccountable agency.

Raj said the CFPB would make regulation more efficient.  But Republican Mike Grimm said “more government is often the problem”, and if you think its going to be more efficient, “you should probably be medicated”.  After asking Raj about the role of mortgage fraud in the financial crisis, Grimm said existing laws could have prevented the crisis, but there was a “big lack of enforcement”.

The Inspector General for TARP said fraud by the nine largest banks led to the TARP bailout.  During an open House session in 2004, the FBI warned Congress about a pandemic of mortgage fraud.  In this radio interview, William Black begins with the FBI warning and lays out compelling evidence of Wall Street fraud.  Mr. Black helped obtain 1000 criminal convictions of “elite” bankers after the 1980’s Savings and Loan meltdown.

Republican Sean Duffy grilled Raj about the role of small banks in the financial crisis.  Duffy said his small banks and credit unions had nothing to do with the crisis, but they are bearing the brunt of costly new regulations.  Duffy said the original intent of finance reform was to “see what went wrong on Wall Street”,  but main street is penalized while Wall Street is bailed out.  Duffy compared the CFPB to a dictatorship with no accountability.

Republican Don Manzullo told Raj, “I find it quite frightening that you made the statement that there are tens of thousands of products to be examined to see if they should be regulated”.  Then Don talked about the “stupid” regulations he encountered as a practicing attorney closing real estate deals.  He told Raj… but now we’re adding more and more regulations… “This doesn’t work Mr. Date…trying to set up a new bureau to do the job that the federal government could’ve done before”. 

Wall Street banks use regulation to extract Trillions from taxpayers without Congressional approval.  So the Too Big To Fail banks are expanding and buying up the competition while community banks struggle with the compliance costs of new CFPB regulations.  This is the result of regulatory capture.

Another example of the fraudulent media narrative is the collapse of Fannie Mae and Freddie Mac (F&F).  When investigating their collapse, the Financial Crisis Inquiry Commission (FCIC) discovered evidence of bipartisan fraud.  But you didn’t hear about it in the news.

When F&F collapsed, taxpayers were forced to assume their 6.3 TRILLION of toxic assets and liabilities, which are off the Federal budget.  F&F were Government Sponsored Entities (GSE’s) until they collapsed in 2008 and were dumped on taxpayers.  Prior to their collapse, the Office of Federal Housing Enterprise Oversight (OFHEO), had limited authority to regulate F&F.

James Lockhart and Armando Falcon were former Directors of OFHEO.   While testifying before the FCIC, James Lockhart said the 1.5 Trillion taxpayer investment in GSE’s “may never be worth anything”.  Mr. Lockhart said “there was no debt discipline for these two companies, people didn’t care if they couldn’t put out a financial statement for five years, people didn’t care if they were starting to lose money”.

The evidence demonstrates that bipartisan leaders worked together to cover up Fannie and Freddie’s systemic risk.  FCIC Commissioner Byron Georgiou said both companies were cooking the books.  Then he addressed the issue of bipartisan lobbyists who blocked oversight while Fannie and Freddie engaged in illegal accounting practices.

Georgiou said “this was an equal opportunity bipartisan lobbying push over the years when Fannie and Freddie were engaging in this practice…there were well connected people who were either former legislators, or former staffers, and others from both parties, who were retained by these institutions to lobby”. This was “a particularly egregious lobbying abuse”.

Fannie and Freddie’s mission was supposed to be affordable housing, which was the justification for their GSE status.  But when asked why F&F didn’t take steps to reduce risk, Mr. Lockhart said “the Boards were much more focused on profitability, they felt that was their fiduciary responsibility to shareholders, the mission was a distant, not even second”.

In the same clip, Commissioner Thomas replied, “my assumption is there was virtually no discussion about taxpayers rather than shareholders”.  Lockhart laughed and Thomas said “you don’t have to answer that”.  Thomas then cites a Barron’s article saying F&F are insolvent and will be bailed out, followed by an e-mail from Treasury undersecretary Steele saying “it’s way above my pay grade to double the U.S. debt in one fell swoop”.

In 2003, Armando Falcon released a report characterizing F&F as a “systemic risk” to financial markets.  A few days before the report was released, Falcon received a call from Fannie Mae CEO Franklin Raines.  According to Falcon, Raines “threatened to bring down me and the agency” if the risk report was released.

Then, an official from Treasury called Falcon and said F&F lobbyists were pressuring other agencies to prevent the report’s release.  Finally, on the day the report was released, the Bush White House fired Falcon and media focused on his firing while giving “scant coverage” to the systemic risk report.  Falcon said this was “the result intended by those who engineered the timing of the announcement of my replacement”.

Who engineered the timing of the announcement?  It was the Bush White House who fired Falcon and refused to delay the announcement when Falcon asked them to do so.  And national media used the firing to cover up the 2003 risk report.  Think about it.  On April 9, 2010, Falcon testified under oath that Fannie Mae’s CEO threatened him, and the Bush White House carried out those threats.  In this clip, Mr. Falcon recounts the cover up of F&F’s systemic risk and the events leading up to his forced resignation 

Fannie and Freddie held 6.3 Trillion of toxic assets and liabilities when they collapsed in 2008, and for the preceding five years, bipartisan leaders in Congress, the Bush administration, and media, covered up the risk to taxpayers.  There’s only one reason why this was not a nationwide, front page story, i.e., left, right and center media colluded to cover up the crime.  And President Obama’s cover up of this crime makes him an accomplice.

Most of the previous information has been covered up by politicians and media, so it’s important to remember what the financial crisis did to the U.S. economy.  Phil Angelides was Chairman of the Financial Crisis Inquiry Commission (FCIC). His comments below are from a 2011 speech, they start at 7min/55sec and end at 15:00.

“Nearly 26 million Americans are out of work, cannot find full time work, or have quit looking for work.  Eleven TRILLION dollars of household wealth and retirement savings has been wiped away, vanished like some day trade gone bad…

The public stewards (government regulators) of our financial system failed us, the CEO’s of financial institutions drove their companies over the cliff and our economy with it…

The greatest tragedy coming out of this crisis would be to accept the idea that no one could’ve seen this crisis coming and thus, nothing could’ve been done.  If we accept this notion, I guarantee you, it will happen again”.

Presidents Bush and Obama have both said the financial crisis was unforeseen and could not have been prevented.  But the FCIC concluded otherwise, and yet, not one media story calls attention to the presidential cover up.

The left says Bush is entirely responsible for the financial crisis, and curiously, the right doesn’t point out President Clinton’s role, which is exposed by the PBS documentary The Warning.  It’s about former Commodity Futures Trading Commission (CFTC) director Brooksley Born.  The CFTC had authority to regulate derivatives and Born tried convincing President Clinton to reign in the 250 Trillion “dark” market.  But Fed Chairman Greenspan and Clinton’s economic advisers “shut her down and shut her up”.

Ms. Born predicted the derivatives market would blow up the economy, hence the  documentary’s name “The Warning”.   Instead of heeding Born’s warning, President Clinton and his cronies decided to repeal financial regulations that had kept Wall Street speculation in check since the Great Depression. 

Clinton’s deregulation of financial markets laid the groundwork for the subprime bubble, and President Bush let Wall Street run wild under the guise of creating more jobs and housing.  The Warning exposes bipartisan leaders who are ideologically opposed to regulating Wall Street financial fraud.

Dodd-Frank did not eliminate Too Big To Fail (TBTF) banks, so they’re effectively GSE’s backstopped by taxpayers.  This is demonstrated by Moody’s rating of Bank of America debt, which is rated five notches above what it would be without government support.  In addition to the explicit taxpayer subsidies for TBTF, Treasury is using Fannie and Freddie as a backdoor bailout for Wall Street.  President Obama, who allegedly opposes Wall Street fat cats, says nothing about the government backstop for America’s largest “private sector” banks.

It’s also important to remember that nobody forced Wall Street to BUY worthless subprime loans, securitize them, leverage them 50 to1, put fraudulent Triple A ratings on them, and sell them around the world.  In fact, the FBI testified before Congress in 2004 and warned that mortgage fraud would cause a financial crisis.  In 2006, mortgage industry experts warned all major lenders that “liars loans” had a “90% incidence of fraud”.

But the industry increased the number of liars loans to the point that 1 in 3 mortgages was a liars loan when the bubble burst.  That’s why Neil Barofsky, Inspector General for TARP, said fraud by the nine largest banks caused the need for the TARP bailout.  William Black helped obtain 1000 criminal convictions of “elite” bankers after the 1980’s Savings and Loan meltdown.  In this radio interview, Mr. Black starts with the 2004 FBI warning and lays out compelling evidence of Wall Street fraud, which has not been prosecuted by Obama’s Department of Justice.

Bottom line, bipartisan leaders were complicit in Wall Street fraud and irresponsible risk taking that drove the economy and budget over the cliff.  There’s no economic growth on the horizon that will make up for decreased government revenue due to the financial crisis, and we cannot tax our way out of Trillion dollar deficits.

In order to finance the exploding debt, Obama’s Treasury Secretary wants Congress to eliminate the debt ceiling.   In addition to removing the debt ceiling, the executive branch wants authority to spend Trillions on future Wall Street bailouts, without approval from Congress.  This will be accomplished via Dodd-Frank’s Resolution Authority, the part of the bill that institutionalizes TARP and gives Wall Street a blank check.

Simon Johnson wrote a book titled “13 Bankers, The Wall Street Takeover and the Next Financial Crisis”.  During a Book TV presentation, Mr. Johnson said the six largest banks have “captured the State” and have power to “extort” money from taxpayers.  Edward Kane is a senior research fellow at the F.D.I.C., he says the financial crisis and Dodd-Frank are examples of regulatory capture.

What does regulatory capture mean?  It means multinational corporations, which by definition are loyal to no country, have subverted representative government.  They have enough resources to hire the best accountants, lawyers and lobbyists money can buy, and use them to take over the lawmaking process in Congress.  That’s why Obama’s Department of Justice does not prosecute Wall Street CEO’s and their bipartisan partners in crime, let alone implement regulations that represent the interests of American citizens.

The Fed’s loose monetary policy, i.e., toxic asset purchases and 0% money for bailed out institutions, is another hit to the U.S. economy as it drives up  commodity prices and incentivizes irresponsible risk taking.  KC Fed President Tom Hoenig posed the following question:  What resource has ever been efficiently allocated when the price is zero?   He was referring to the Fed’s near 0% rate on capital.

Like Simon Johnson, Mr. Hoenig also recognizes the budgetary threat posed by Too Big To Fail banks.  He says Dodd-Frank widened the Federal safety net to include high risk gambling activities of large banks.  Hoenig proposed reinstating the Glass Steagall Act, which was enacted in 1933 as a response to the 1929 market crash.

Glass Steagall removed high risk investment bank activities from the Federal safety net (F.D.I.C.), but President Clinton repealed it in 1999.  It took only 9 years to repeat the crash of 1929.  Click here and listen to Mr. Hoenigs comments on TBTF banks.  If fiscal and monetary policy had focused on limiting home foreclosures and growing the Main Street economy, increased demand and economic growth would be reducing the deficit.

Congressional budget negotiations have nothing to do with getting deficits and debt under control.  The 2014 Federal budget is a prime example.  The following text and next paragraph are from an article in USA TODAY:  The nearly 1,600-page spending bill includes all 12 of the individual annual spending bills packaged into a $1.012 trillion “omnibus” spending bill.  The bill will have gone from unveiling to law in just six days, while the normal appropriations process is structured to take months and allow for more lawmaker input.

Rep. Jim McGovern, D-Mass., holding up the thick bill on the House floor, criticized the House for voting on a bill “that nobody has read.”  McGovern cited a concern held by lawmakers in both parties that the details of the omnibus are likely to trickle out after the bill has become law.  “I’m willing to bet in a week or so we’re going to read an article about something being in the bill that nobody knew about,”.  Jenny Beth Martin, co-founder of the Tea Party Patriots, characterized the bill as a “monstrosity.”  She said “while Americans suffer the consequences of Obamacare, Congress is trying to rush through another massive bill before reading it,”

If members of Congress aren’t reading bills, they certainly aren’t writing them.  So who is writing legislation?  In the case of Obamacare, Dr. Howard Dean said the insurance industry and Democrat staffers wrote the bill (listen to the video in the link).  Congress not reading or writing legislation is the MO of Wall Street regulatory capture.

Even Republican tax guru Grover Norquist said, “corporations don’t pay taxes, they collect them from you and me…”.  Grover says corporations pass tax liabilities onto consumers by raising the price of their products.  But he doesn’t mention that small businesses, which may be corporations, bear the full cost of regulation and taxation because they have limited ability to shift costs to consumers.   For possible solutions to regulatory capture, check out the post on the Boston Tea Party.

This highlights the fiscal problem, i.e., large multinationals receive government subsidies while evading tax and regulatory costs.  And yet, bipartisan leaders want to lower tax rates for multinationals while raising taxes on small businesses and middle class individuals.  No politicians have done more to enrich Wall Street criminals and rob the middle class than Presidents Bush and Obama.

The stock market has nearly tripled in value under Obama while U.S. economic growth is stagnant.  Why?  Obama and the Fed have given Wall Street everything they want, including near zero percent money and immunity from criminal prosecution.  An interesting source is the book Godonomics, which illustrates the Biblical principles behind private property rights and market economies based on moral principles.

                            TRADE DEFICITS AND THE US DEBT

The fraud that led to the subprime bubble and Great Recession is only half the story behind America’s debt crisis.  Pat Mulloy is a member of the US-China Economic and Security Review Commission. He said trade deficits with China will change America from a “shareholder economy to a sharecropper economy”,  where China owns large chunks of our economy and we work for them.

In the same clip,  Mulloy said the U.S. has run 3 Trillion in trade deficits with China since they were given Most Favored Nation (MFN) status, and it’s “interesting”, China has 3 Trillion in foreign currency reserves.  He’s clearly suggesting that U.S. trade deficits contribute to China’s strong cash position.  Conversely, trade deficits increase U.S. debt and make America dependent on China for financing the debt.  

In the Wall Street Journal article China’s Superior Economic Modelformer SEIU President Andy Stern and Intel CEO Andy Grove favor China’s totalitarian economic model.  Which means they support China’s use of virtual slave labor, and imprisonment of those who dare speak about democratic reforms.  And yet, Obama tells students and union members they’re competing with China.  How can students and unions compete with slavery without first becoming slaves?

While U.S. workers and small businesses compete with China, US multinationals have formed  partnerships with Chinese State Owned Enterprises.  Hmmm?  Partners do NOT compete, they work together to achieve common goals.  Their goal is a command-control, low wage service economy in America, and global dominance for China’s totalitarian regime.

The origins of treasonous free trade policies can be traced back to Wall Street.  Charlie Rose interviewed Jim O’Neill, Chairman of Goldman Sachs asset management, who takes credit for creating the emerging markets, a.k.a. BRIC (Brazil, Russia, India, China).  About 29:45 into the interview, Rose mentioned the shift  of wealth and power to China and asked Jim what it means for America, a country “used to being on top”.  O’Neill said, “I’d like to hear Obama say, how do we adjust, before he says how do we compete”.

Then O’Neill referred to Obama’s former economic adviser Larry Summers saying, “he understands [China’s] relative advantage in international trade.”  The idea that America is competing with China is ludicrous.  Outsourcing and free trade in the NFL would be comparable to trading a team’s franchise player for the competition’s water boy.  Free trade is designed to pick winners and losers in the global economy and Goldman Sachs, a.k.a. Government Sachs, has picked America to lose.

The Federal Reserve has pumped TRILLIONS of dollars into the economy, and yet, U.S. economic growth is stagnant.  Why?  During an appearance on CNBC, George Soros cites data from the Bank of International Settlements (BIS), which says US and EU banks are the largest supplier of credit to emerging markets.  So bailed out banks are financing China’s 8% growth while U.S. growth is stagnant.

April 22, 2010, Rush Limbaugh cited an Investors Business Daily article saying “…despite the commitment of nearly 20 TRILLION in taxpayer funds to prevent another crisis, lending has stalled or shrunk.”  So US bank lending to communist China has grown while lending in the U.S. has stalled or shrunk.

The absolute numbers for big foreign banking systems’ exposure to China are as follows:

 Some say the electronic trinkets produced in China would be too expensive if manufactured in America.  But virtual slave labor has always existed in foreign countries, and before free trade, America’s economy thrived without exploiting cheap labor abroad.  Many leaders say government should be run more like a business.  Well, multinational corporations spend billions implementing policies that PROTECT their market share and global competitiveness.  They even engage in corporate espionage to gain competitive advantages that US leaders give away via free trade.

Businesses don’t engage in anything remotely resembling free trade.  Why?   Because providing the competition with capital and technology guarantees failure.   Doing so would cause shareholders to demand criminal prosecution of the Board of Directors and top officers, which is what should be done to politicians who have intentionally traded away America’s economic future.   Manufacturing is the engine of economic growth, so outsourcing manufacturing in exchange for cheap trinkets is like the Native Americans selling their sovereignty for beads and blankets.

American history teaches the concept of manifest destiny.  But how many fur traders, homesteaders and gold miners were thinking about manifest destiny when they moved West?   Few if any, they didn’t even know what the phrase meant.  Manifest destiny is the language of ruling class elites, i.e. merchant bankers and industrialists.  They moved common folk across the American West like pawns on a chess board.  Ruling class elites wanted conflict with the Indians so they could call in the cavalry and manifest their destiny.

The new frontiers for today’s ruling class are Communist China and emerging markets.  Free trade is preparing the way for the global cavalry and final phase of manifest destiny.  For all intents and purposes, US financial elites and industrialists have seceded from the Union.  They’ve allied themselves with China’s totalitarian regime and are engaged in economic terrorism against the United States.

Media and politicians support this treasonous alliance and they exploit class and race divisions as part of a divide and conquer agenda.  They want divided Americans to blame each other and fight over the economic crumbs left behind by free trade and the financial crisis.  We’re all Indians now.

Bipartisan leaders said free trade would transition America to a “low wage service economy”, a.k.a., de-industrialization.  Since the beginning of the Industrial Revolution, industrialized nations have dominated the global economy because manufacturing is the engine of growth.

Case in point, after WWII the German economy was literally a pile of rubble.  But seventy years later, in spite of high labor costs,  Germany has the strongest economy in the West.  Why?  They protect their manufacturing base.  Don’t buy the lie that America cannot do the same because, transitioning from the world’s largest manufacturer and exporter to a low wage service economy is by definition, a radical economic decline.

Wall Street and their bipartisans cronies have structured the global economy (globalization) in a way that subsidizes China with U.S. capital and technology.  The decline in growth resulting from free trade and de-industrialization was masked by the subprime bubble.  In my opinion, the subprime bubble was intentionally created to cover up the economic contraction caused by free trade and outsourcing.  When the bubble burst, average citizens were blamed for living beyond their means and the structural decline resulting from free trade wasn’t even mentioned.

                                      WAR AND THE US DEBT

CNBC reported that Chinese State owned companies are currently mining a trillion dollars of mineral reserves in Afghanistan.  The guest said Afghanistan is the “Saudi Arabia of lithium”.  Lithium is used in batteries for electric cars and battery storage for wind and solar farms.  So Afghanistan is the first war for “green” energy and U.S. blood and treasure are subsidizing Communist China’s totalitarian regime.

Green energy is a subsidy for China because lithium batteries and solar panels are produced by Chinese manufacturers. After the Iraq war, most of Iraq’s oil is going to China. The objective is to subsidize emerging markets led by China’s totalitarian regime.  This will create a neo-feudalistic world where China is the new home of the Global Military Industrial Complex (GMIC).

The US/China partnership allows the respective governments to play both sides of global conflicts, thereby providing guaranteed profits for the GMIC.  Iran, North Korea and Syria are prime examples.  The US government classifies North Korea and Iran as state sponsors of terrorism.  But the CSPAN clips below demonstrate that China supplies Iran with chemical, ballistic and nuclear weapons, and allows trans-shipments of weapons from North Korea to Iran, which then supplies Syria and Hezbollah.

US leaders condemn the actions of Iran, Syria and North Korea, all client states of China, while turning a blind eye to the fact that they could not be a threat to the West without Chinese support.  Link1, Link2, Link3, LInk4, Link5  Compelling evidence of bipartisan treason can be found in these posts on Saudi funding of terrorism and China’s totalitarian regime.

Real solutions for the debt crisis begin with enforcing the rule of law as described in William Black’s radio interview.  Then, follow Tom Hoenig’s advice and reinstate Glass Steagall, thus removing Wall Street’s high risk gambling losses from the Federal safety net.  Next, begin dismantling free trade agreements and replacing them with protectionist policies that have a two hundred year track record of successfully growing the U.S. economy.  For more detail, check out my pdf “Knowledge is Power” and the sections on financial markets and solutions.