Wednesday, December 13, 2006

Gotta love Charley Reese




Jefferson Davis, one of America's greatest statesmen, said that a question settled by violence would inevitably arise again, though at a different time and in a different form.
And so it has. Lovers and sycophants of the great empire on the Potomac must be feeling uneasy that at least some Americans are again questioning the efficacy of a gargantuan central government.
Perhaps the recent shift of control of Congress to the Democrats has made them nervous, though God knows there are precious few Jeffersonian Democrats in the modern Democratic Party.
And what, you might well ask, is a Jeffersonian Democrat? He's a person who hasn't forgotten that the sovereign states created the federal government, not the reverse, as some today seem to assume. He believes that what the Constitution created was a republic of sovereign states, and that the carefully limited powers assigned to the federal government were all the powers it had, in peace or in war. He believes the Constitution is a binding contract, not a rubbery document that can mean anything a judge or a politician says it means. He believes in a system of checks and balances. In short, he believes in the Declaration of Independence.
That document, you might recall, says that the only purpose of government is to protect rights already granted by God, and that when a government fails to protect those rights and begins to abuse them, the people have the right to alter or overthrow it. "Sounds communistic to me," grumbles old Jack Jingoist. "That guy Jefferson must have been some kind of a pinko."
Why else would Lord Acton, the great British philosopher of liberty, have written to Robert E. Lee, America's greatest soldier, that, "I grieve more for what was lost at Appomattox than I rejoice at what was gained at Waterloo." Lord Acton saw clearly what many American professors of history do not – that the defeat of the South was the end of America's experiment in liberty and self-government and a conscious choice to emulate the central governments of Europe.


Leviathan, Big Brother or whatever you want to call it will come to an end of its own design. The devices which are used to construct a gargantuan government that saps the freedom and spirit of its people for any reason sows the seeds of its own destruction.

It's just a shame the people have to endure its tyranny while waiting for the inevitable collapse.

And so it begins.

The Dollar is Falling. The Dollar is Falling.
By Jerome R. Corsi© 2006 WorldNetDaily.com
Two analysts who have reconstructed money supply data after the Fed stopped publishing it argue a coming dollar collapse will set the stage for creating the amero as a North American currency to replace the dollar.
The reconstructed M3 data – the broadest measure of money – published on econometrician Gary Kuever's website,
NowAndFutures.com, shows M3 increased at a rate of 11 percent in May, compared to 9 percent when the Federal Reserve quit publishing M3 data earlier this year.
Asked why the Fed decided to stop publishing M3 data, Kuever told WND, "The Fed probably wants to hide how much liquidity is being pumped into the market, and I expect the trend to keep pumping liquidity into the market will continue, especially since the economy is slowing down."
Why is this important?
"The trend line in my M3-plus-debt chart is staggering," Kuever said. "There has been a straight, long-term trend line of M3-plus-credit increasing since 2000. Long-term, we are creating inflation and the dollar has lost almost 98 percent of its value in the past 100 years."
Kuever, a retired investor, is concerned that with growing budget and trade deficits "the dollar could collapse."
"Especially if the Fed cannot increase rates, because we have already entered a recession," he said.
Bob Chapman, who issued a reconstructed M3 estimate to the 100,000 subscribers to his newsletter, "The International Forecaster", agrees.
"The world is awash in money and credit," Chapman told WND. "My numbers show M3 increasing at about a 10-percent rate right now."
Chapman believes the U.S. economy entered a recession in February. In his newsletter of Dec. 9 he predicted the Fed would hold interest rates at 5.25 percent.
"The Fed is in a very tough spot here," Chapman wrote, "If they raise rates, the real estate market will collapse, and if they lower rates, the dollar will collapse."
Meeting yesterday, the Federal Reserve Open Market Committee voted, as Chapman had predicted, to hold the overnight lending rates between banks steady at 5.25 percent. This was the fourth straight meeting the Fed had voted not to change rates. In its rate announcement, the Fed affirmed the economy had slowed.
Almost immediately after the announcement of the Fed's decision, the dollar weakened to a new 20-month low against the euro, with currency markets reportedly pricing in the expectation the Fed will be forced to lower rates next year to bolster the economy. Following the announcement by the Fed, the U.S. Dollar Index, or USDX, also dropped, with the dollar going below 83.
A dollar collapse is imminent, Chapman declared.
"Technicians studying the USDX think there is a support level for the dollar at 75, but I don't think so."
How low could the dollar go?
"If the dollar breaks through 78.33 on the USDX," Chapman answered, "my guess is the dollar will go through a 35-percent correction, which would put it at 55."
"The key in how low the dollar goes is the interest rates," Chapman told WND. "In January, the Fed is going to have to make a decision which way to go. If Fed rates go up, the dollar will hold in the 78.33 range, but the stock market and the economy will tank. If next year the Fed lowers rates to keep the economy from crashing, the bottom will fall out of the dollar, and I see it going as low as 55. Once the dollar hits bottom, it will take the stock market and the economy right with it anyway. The Fed is in a box they can't get out of."
How severe will the coming dollar collapse be?
"People in the U.S. are going to be hit hard," Chapman warned. "In the severe recession we are entering now, Bush will argue that we have to form a North American Union to compete with the Euro."
"Creating the amero," Chapman explained, "will be presented to the American public as the administration's solution for dollar recovery. In the process of creating the amero, the Bush administration just abandons the dollar."
It is an immutable truth that all fiat currencies fail sooner or later. Ours is only going to take about 93 years to live out its (useful to those who created and benefit from it) life.
And then the Amero will come to save us all.
It's never a good sign when your nightmares become a reality.
Three cheers for what's left of American sovereignty.