Showing posts with label 2010-Depression-U.S.-government-Debt-economy. Show all posts
Showing posts with label 2010-Depression-U.S.-government-Debt-economy. Show all posts

Saturday, April 10, 2010

Michael Savage asks but where is the rest of the media?

Chronicle Watch.com

March 31, 2010 by Roberto Santiago  

Earth to Media, Earth to Media, Come in Media, We have Terrorist Training who are Muslims in America! PS, they are not Christians they are Islamic's!

Why is it that Michael Savage is alone in asking these questions??

FEDERAL AGENTS RAID CHRISTIAN COMPOUND – – IGNORE ISLAMBERG
MUSLIM GUERRILLA TRAINING IGNORED
ISLAMIC MILITARY COMPOUNDS FLOURISH IN US
by Paul L. Williams, Ph.D.

Federal agents raided a Michigan-based Christian militia after learning that members of the group – – known as the Hutaree – – may have been plotting to kill police officers.
But the same agents have been unwilling to raid Islamberg and other compounds of Jamaat ul-Fuqra where militant Muslims engage in paramilitary training for the great Jihad against Christians and Jews.



These compounds are scattered throughout the United States. Many have been in existence for more than twenty years.

Neighbors have lodged hundreds of complaints to local law enforcement officials about the rat-tat-tat of machine gun fire and the sounds of explosions coming from these sites but no intrepid federal or state agents have been willing to conduct investigations, let alone to make arrests.


This is extraordinary since members of Jamaat ul-Fuqra, the Islamic organization that runs these compounds, have been convicted in US courts of such crimes as homicide, conspiracy to commit murder, firebombing, gun smuggling, grand theft, counterfeiting, and workers’ compensation fraud. Others remain leading suspects in criminal cases throughout the country, including ten unsolved assassinations and seventeen fire-bombings between 1979 and 1990.
No Islamic group, not even al Qaeda, has been responsible for more attacks on American soil.
Islamberg is located on 70 acres of dense forest at the foothills of the Catskill Mountains on the outskirts of Hancock, New York.

The hillside is blighted by rusty trailers that appear to be without power or running water and a number of outhouses. The scent of raw sewage is in the air.


The place is even off limits to the local undertaker who says that he has delivered bodies to the complex but has never been granted entrance. “They come and take the bodies from my hearse. They won’t allow me to get past the sentry post. They say that they want to prepare the bodies for burial. But I never get the bodies back. I don’t know what’s going on there but I don’t think it’s legal.”
 

On the other side of the hill where few dare to go is a tiny village replete with a make-shift learning center (dubbed the “International Quranic Open University”); a trailer converted into a Laundromat; a small, green community center; a small and rather squalid grocery store; a newly constructed majid; over forty clapboard homes; and scores of additional trailers.


It is home to hundreds – – all in Islamic attire, and all African-Americans. Most drive late model SUVs with license plates from Pennsylvania, New Jersey, New York, Ohio, South Carolina, and Tennessee. The locals say that some work as tollbooth operators for the New York State Thruway, while others are employed at a credit card processing center that maintains confidential financial records.

While it buzzing with activity during the week, the place becomes a virtual hive on weekends. The guest includes arrivals from the inner cities of New York, New Jersey, and Pennsylvania and, occasionally, white-robed dignitaries in Ray-Bans from the Middle East.
At the eastern perimeter of the property is a training course was equipped with ropes hanging from tall trees, wooden fences for scaling, a make-shift obstacle course, and a firing range.
The compound also contains vast underground bunkers.


Islamberg is benign as neither a Buddhist monastery nor a Carmelite convent. Nearly every weekend, neighbors hear sounds of gunfire. Some, including a combat veteran of the Vietnam War, have heard the bang of small explosives.

None of the neighbors wished to be identified for fear of “retaliation.” “We don’t even dare to slow down when we drive by,” one resident said. “They own the mountain and they know it and there is nothing we can do about it but move, and we can’t even do that. Who wants to buy a property near that?”

The complex serves to scare the bejeesus out of the local residents. “If you go there, you better wear body armor,” a customer at the Circle E Diner in Hancock said. “They have armed guards and if they shoot you, nobody will find your body.”


At Cousins, a watering hole in nearby Deposit, a barfly, who didn’t wish to be identified, said: “The place is dangerous. You can hear gunfire up there. I can’t understand why the FBI won’t shut it down.”
The photographs that accompany this article were shot by Paul L. Williams and his team of investigators who entered the compound to verify the reality of the threat.

Williams and his team have visited other Jamaat ul-Fuqra sites, including compounds in Red House, Virginia, and Commerce, Georgia.


Paramilitary training with automatic and semi-automatic weapons (including M-14s and AK-47s) takes place at all of these sites.

Many of the Muslim recruits come from the prison system.

After weeks of training in weaponry, hand-to-hand combat, and explosives, select recruits are sent to Pakistan for further training.

NOTE: This posting was hurriedly made after a conversation with our gracious and learned friend Dr. Michael Savage this evening (Tues. March 30, 2010).
Coming Soon” “Jihad in the U.S. Military”
Stay tuned!



Related Reading:

Friday, January 1, 2010

2010 Will Be Worse

By Monty Pelerin

The year 2010 is likely to be the pivotal year where pundits stop referring to the recession and begin openly talking about a depression.

Our economic problem is rather simple to describe: There is too much debt relative to income and/or wealth. Below is a single graph that depicts the condition of our economy. It shows total debt of the U.S. as a percentage of GDP from 1870 forward. The debt figure includes all private and public debt. It does not include liabilities associated with unfunded government mandates like Social Security and Medicare. (Note: according to the U.S. trustees of these funds, the present value of the liabilities is about $106 trillion. Including them would boost the ratio below to nearly 1,000%.)

The amount of debt relative to GDP is staggering from a historical perspective. Several points are worth making about the graph:

* The long-term "norm" for the ratio appears to be around 150%. The red lines band the "norm" at 130% and 170%, respectively.
* Other than the two boom periods that commenced in the 1920s and the 1980s, the ratio never exceeded the upper band.
* Each cross resulted in enormous credit-driven booms. The first ended in the Great Depression. The second will produce a similar if not bigger bust (we are merely at the beginning of this event).
* The credit expansion that led to the Great Depression was not nearly as overextended as the current expansion.
* Peak credit occurred after the Depression began. Government spending and the shrinkage in GDP continued to drive the ratio up early in the Depression.
* Since this graph was published, today's ratio has grown to near 380%, about double the level when the U.S. entered the Depression.
* While it appears as though current private borrowing may have peaked, funding enormous government deficits continues to drive the ratio up, as does GDP shrinkage.

No economic theory rationalizes a proper "norm," yet intuitively, we know that such a number exists. Debt must not exceed some percentage of income, or else it cannot be serviced. Equivalent conceptual ratios for individuals and businesses have been used by the banking industry as lending criteria for more than a century. For various reasons, banks neglected these guidelines over the past couple of decades, contributing greatly to the credit bubble.

The government has decided that the cure for too much debt is more debt. This solution cannot work, especially when credit is already so overextended. Income and wealth cannot support present debt levels. Credit will adjust back to the mean, regardless of what the government attempts. Whether this is via orderly payment or via default, the reduction in debt is inevitable.

Ludwig von Mises addressed the limits of credit in The Theory of Money and Credit, originally published in 1912. As he expressed in later work:

There is no means of avoiding the final collapse of a boom brought about by credit [debt] expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit [debt] expansion, or later as a final and total catastrophe of the currency system involved.


In 2009, it was not possible to finance U.S. capital requirements through conventional markets. Only via the Fed's explicit (and surreptitious) Quantitative Easing was the government able to fund its 2009 deficits. Discussing 2009, Zerohedge stated:

There was a huge credit and liquidity crunch, and then there was Quantitative Easing. The last is the Fed's equivalent of band-aiding a zombied and ponzied corpse, better known as the US economy. It worked for a while, but now the zombie is about to go back into critical, followed by comatose, and lastly, undead (and 401(k)-depleting) condition.


Zerohedge estimated that demand (financing) for U.S. fixed-income securities must increase elevenfold in order to fund capital needs in 2010. Continued shrinkage in foreign participation in U.S. fixed-income markets makes that increase impossible.

There are only three possibilities with respect to meeting 2010 funding needs:

* The Fed continues its QE beyond their planned cessation in March 2010.
* The Fed raises interest rates to levels that would attract the capital necessary to fund government operations via conventional credit markets.
* No Fed action is taken. That would cause the government to default on some of its obligations.

None of these alternatives is attractive. The unpalatable choices arise from prior Fed and governmental policies. To avoid recessions over the past fifty years, the government abused and then finally exhausted all reasonable options. After years of mismanagement, the government is in a quandary of its own making from which there is no escape.

All alternatives will be very painful, and none offer the possibility of a traditional recovery. No matter what alternative is chosen, the country cannot avoid a depression. At this point, "do no further harm" should guide policy.

Of the three alternatives, what is best economically is worst politically. This natural conflict between good economics and good politics is not unusual. Economically, the country would be harmed least by implementing alternative 2. From a political standpoint, alternatives 2 and 3 are probably unacceptable. Thus, it is likely that alternative 1 will be tried (again!). It is precisely the continual overuse of this alternative that has led to the current sad state.

Alternative 1 cannot work. It will not avoid a depression. Worse, it will likely result in hyperinflation. Thus, we likely end up with the worst of all worlds. With hyperinflation, money will cease to be a medium of exchange. Markets will cease to work, except on a barter basis. The middle class will be wiped out. Their savings will become worthless along with the dollar. The end will be as Mises warned so many years ago.

The possibility of losing our form of government is a real risk under any of the alternatives. So is civil unrest and strife. All are probably more likely under alternative 1 because of the corrosive effects of high inflation combined with a depression.

Beware the turn of the calendar. Things are going to get interesting, and probably very quickly.

Monty Pelerin blogs at economicnoise.com.