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OBAMA’S FOREIGN POLICY IS ABOUT TO GET MUCH WORSE


Outgoing US Defense Secretary Robert Gates is worried about the shape of things to come in US foreign policy. In an interview with Newsweek over the weekend, Gates warned:

"To tell you the truth, that's one of the many reasons it's time for me to retire, because frankly I can't imagine being part of a nation, part of a government... that's being forced to dramatically scale back our engagement with the rest of the world."

What Gates is saying is that he doesn't trust his commander in chief to allocate the resources to preserve America's superpower status. He is saying that he believes that Obama is willing to surrender the US's status as a superpower.

This would be a stunning statement for any defense secretary to make about the policies of a US President. It is especially stunning coming from Gates. Many conservatives hailed Obama's decision to retain Gates as defense secretary as a belated admission that Bush's aggressive counter-terror policies were correct.

These claims ignored the fact that in Bush's last two years in office, with the exception of the surge of troops in Iraq, under the guidance of Gates and then secretary of state Condoleezza Rice, US foreign policy veered very far to the Left. As bad as it has been so far under Obama with Gates, it is now going to get much worse without him.

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FINANCIAL FASCISM


The "Dodd financial reform" bill being considered by the Senate will make it illegal for 99.6 percent of the population to invest in needed new and promising start-up companies.  At the same time, the bill ensures that the 33 largest banks, which control 92 percent of all bank assets, will be required to purchase more federal government debt before giving loans to businesses and individuals.

Quite simply, the government is continuing to practice financial fascism.

The new financial reform bill will make it illegal to invest in a new venture or start-up company for anyone who does not have a liquid net worth of $2.2 million or an annual income of roughly $450,000 if single or $675,000 if married - which rules out all but fewer than 1 percent of the population.

If this passes and is signed into law, Congress and the president will be saying to the American people, "Ninety-nine-plus percent of you are too stupid to know how to invest your own money." They think the rest of us are as irresponsible as they are.

What right do the financial fascists in Washington, who created the world's biggest financial Ponzi schemes (i.e., Social Security and Medicare) and the largest unsustainable debt in history, have to tell more than 99 percent of the rest of us what we can and cannot invest in?

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WHERE IS JOHN GALT?


All readers of Ayn Rand's masterpiece, Atlas Shrugged, know its central question, "Who is John Galt?"

Written over half a century ago, it is clearly the greatest and most influential novel of the 20th century.  Over six million copies have been sold, averaging 77,000 copies per year in the 1980s, 90,000 in the 1990s, 137,000 in the 00s - until recently.

200,000 copies were sold in 2008, and sales so far this year are at triple those of last year.   This is because, according to the Ayn Rand Institute, "there are uncanny similarities between the plot-line of the book and the events of our day."

We discussed these similarities last December in Atlas In America.

Reading Atlas for the first time in 1966 was the single most intellectually thrilling experience of my life.  And yet, there was something that bugged me.  Asking who is John Galt presupposes there is a John Galt.  As I witnessed the cultural destruction of America in the 1960s, I realized the terrible truth that there is no such person.  He is a Platonic invention. 

Today, the fascist nightmare that is destroying America is hideously similar to that described by Rand over fifty years ago.  But if we ask today, not who is John Galt but where is John Galt, the question echoes in the wind with no answer.

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HAS OBAMA DELIBERATELY HARMED ISRAELI COVERT OPS IN IRAN?


One of the secrets about Western trade with enemy states like Iran is that the Western companies trading with them may also wittingly or unwittingly serve as espionage assets for their home country or for other Western countries.

The boycott drive against states like Iran uses a legalistic framework to deal with complex military challenges. And since the nail doesn't exactly fit the hole, it stands to reason that the damage sanctions can do to military or intelligence operations may in certain circumstances outweigh the benefit they bring to diplomatic operations.

Late last month (5/24), the State Department announced that it was sanctioning the shipping company of Israel's richest family, the Ofer Brothers, for reportedly violating US law by trading with Iran.  Ever since, there has been a deluge of news reports alleging that the Ofer Brother's ships were used by the Mossad and perhaps the IDF to infiltrate and exfiltrate agents into and out of Iran. 

There are number of troubling aspects to this story.

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COULD AMERICA BECOME ARGENTINA?


A century ago, if you had told typical citizens of Argentina (which at that time was enjoying the fourth-highest per capita income in the world) that it would decline to become just the 76th richest nation on a per capita basis in 2010, they probably would not have found it believable.

They might have responded, "This could not happen; we are a nation rich in natural resources, with a great climate for agriculture. Our people are well educated and largely descended from European stock. We have property rights, the rule of law and an open free-market economy."

But the fact is, Argentina has been going downhill for eight decades, and it now has one of worst sovereign credit ratings in the entire world - on a par with Pakistan and lower than Bangladesh. Argentina, despite its natural resources and human capital, has managed to throw it all away.

Argentina did not become relatively poor because of having been involved in destructive conflicts. It became poor because it has had a series of both democratically elected leaders and non-elected dictators who never missed an opportunity to make the wrong economic decisions.

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ZERO IS LESS THAN ZERO


On a beautiful sunny day in 2004, the villagers of Banda Aceh in Sumatra were peacefully minding their own business when out of nowhere a tsunami washed them away:

 tsunami_banda_acheh.jpg
 
Substitute the Before photo with America today.  The After photo is what America is going to look like in the wake of Zero.

If you think this is hyperbolic then you haven't come to grips with the consequences of hyper-inflation.  If you did, you be like what the Banda Aceh folks would have been if they'd had any warning:  in panicked flight to higher ground.

And here's the kicker:  with hyper-inflation comes hyper-fascism.  The worse our economy becomes, the more our freedoms will be taken away.

Folks - this is being done on purpose.  If it were all due to sheer stupidity or incompetence on Zero's part, you would expect, as "Skye" observes on the Forum, coin-flip outcomes with at least some of them correct. 

But when all actions are taken to disincentivize wealth creation and expand government control, to destroy the worth of the dollar and not increase it, then the damage is malicious and purposeful.

So here is what is really going on:  the President of the United States is making a conscious concerted effort to replace capitalism with fascism. And not just in the United States but world-wide.

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CANADA IS OPEN FOR BUSINESS


Serving as an active Member of Parliament in Canada, and Chairman of both the Parliament's Standing Committees on Foreign Affairs & International Development, and  on International Trade, I have had the unique opportunity to participate firsthand in the changes that our Conservative Government has implemented since taking power.

These changes have made our country more competitive on the commercial scene and more attractive for investors.  But we intend to do more.

Since the Conservatives first came to office in 2006, we have cut taxes and removed barriers that have previously served to not only stifle business development, but to actually drive it away.  

We did this as a minority government, governing with a coalition of parties as we did not have an absolute majority of seats.  That changed with last month's elections on May 2, when Conservatives won 167 out of the 308 seats in Parliament.  This frees us to cut taxes and remove stifling barriers more than ever.

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PREDATORY WEALTH DESTRUCTION


The U.S. and most other governments of the world are issuing debt at such a rapid rate and at such high levels, with no real plans to reverse such behavior, that it is almost a certainty they will not pay back what they owe.

An insightful European banker suggested to me over breakfast a couple of weeks ago that the European political class would use selective expropriation, rather than inflation, to avoid paying back all of the debt.

The way this would be done would be that the political leaders would announce they would only pay back those bonds with full interest that were held by labor unions and other "politically correct" interest groups but not the bonds held by "greedy bankers" and rich people. Maturities would be extended and promised interest rates lowered - effectively reducing the value of the bonds.

My initial reaction was that, yes, such a selective expropriation might work in Europe, but not in the United States. As I thought more about it, however, looked at what was happening, and heard President Obama's rhetoric attacking "greedy" bankers and insurance companies, I began to think that not only was my European friend right about Europe, but his scenario was equally valid here.

Look at the evidence.

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THE EVIL OF ZERO


Is Zero a fascist dedicated to destroying the life savings of Americans, or is he criminally incompetent?

The answer is yes.

So let me tell you about Gao Xiqing (gow shee-ching).  He's one of the smartest Chinese you'll ever meet (and that's saying something).  Graduate of Duke law school, worked at a major Wall Street law firm, returned to his native China to direct the CIC, China Investment Corp., the Chicoms' trillion dollar sovereign wealth fund.

In other words, he's the guy who owns $700 billion of US Treasurys, the guy who Zero is depending on to keep buying.  Should he not show up at the next Treasury auction, the dollar disintegrates the next day.

A friend of mine has gotten to know him (don't ask me how).  "Gao is super-smooth, sophisticated, speaks English as good as you or me, and knows America inside and out," he says.  "He can talk the language of high finance and international capitalism as good as anyone - yet he is a hard core Chinese Communist who regards America as China's enemy.  He despises Obama as the epitome of American weakness."

Gao also thinks that gold is going to $5,000 an ounce and that the dollar's goose is cooked.

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NO VOTING RIGHTS FOR ILLEGAL ALIENS – EVER!


No one who broke our laws to enter this country should ever decide who becomes our president, a member of Congress, a governor or mayor, or a member of the local school board. This is the non-negotiable “die line” those who love our country must defend: We cannot permit a huge criminal voting block to determine our future.

And every person who entered this country without our government’s formal permission is a criminal. Period.

Democrat Party operatives embed their public arguments for amnesty for eleven-million illegals in terms of human dignity and decency.  The reality?  Democrat Party support for amnesty for illegals comes down to one word: “Votes.”  For Dems, it's all about a permanent electoral majority - not human dignity.

The Dems would love to do to Hispanics what they've done to African-Americans: Destroy their strong family values, addict them to government programs, discourage them from pursuing good educations and liberating careers -- then herd them to polling stations to vote for Democrats anointed by party commissars.

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MORALITY AND THE IRS


It is, of course, true that no one loves the tax collector and that taxes are the price we pay for a civil society. But, as with anything else, there are proper and improper taxes and tax collection procedures and methods.

According to news accounts, attacks and threats against IRS personnel are rising, and unfortunately, this trend is likely to continue until there is a fundamental change in our tax laws and collection methods.

People who do not have access to the media and cannot afford expensive tax lawyers sometimes reach such a level of frustration with the IRS that they resort to violent or irrational behavior. IRS officials and workers will say the tax code is not their fault - it is the fault of Congress - and they are only doing their jobs.

It is unambiguously true that the tax code and IRS are creatures of Congress, with all of its self-dealing, corruption, ignorance and incompetence. But this also is true: as was made explicit at the Nuremberg trials, those who carry out orders that they know to be wrong or should know to be wrong are not absolved of personal responsibility.

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THE TRAP OF LIZZIE WEBBER

 
Many years ago when I was running a cinnamon business in South Viet Nam, I flew from Saigon to Jesselton in British North Borneo (now it's Kota Kinabalu in Sabah, Malaysia).  Out the window I saw all these gorgeous tropical island paradises sprinkled over the ocean.  I asked the captain what they were. 

"The Spratlys," he said.  I pointed to one jewel in particular.  Checking his map, he answered, "Lizzie Webber."

lizzie_webber.jpg

"Yeah, she's beautiful all right - but don't ever go sailing down there," he warned.  "She's a trap, just like all the Spratlys."

Now today, thanks to President Zero, America is caught in the trap of Lizzie Webber.

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HOW DANGEROUS IS MR. OBAMA TO ISRAEL?


As I noted on Judge Jeanine Pirro's show this weekend, I reject President Obama's idea that Israel must cede back its territories to the 1967 line.  

Will we now be in the habit of telling our allies what their borders should be? Should Prime Minister Netanyahu suggest we return to our 1845 borders before the annexation of the southwest of the United States during the Mexican-American War? Should we give back parts of Texas, New Mexico, and California?

But the problem is even deeper. In both his State Department speech last Thursday (5/19) and his speech Sunday (5/22) at AIPAC, President Obama made some seemingly specific comments about the Palestinian state that he wants to see created.  He either misspoke or he has even more dangerous plans for our friends in Israel than he is publicly admitting.

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AMERICA SHOULD BE MORE LIKE SWITZERLAND


Zurich, Switzerland.  Economists, political scientists, reporters and pundits spend too much of their time looking at dysfunctional societies and trying to explain why there are poverty, joblessness and hopelessness. In many ways, Haiti is easy to explain - no rule of law and 200 years of corrupt and incompetent governments. Switzerland is the polar opposite.

It has almost no corruption and has the rule of law with honest, competent judges and government administrators. The question should be, "What can we learn from the Switzerlands of the world about how to do things right" rather than, "What is wrong with the Haitis of the world?"

Switzerland manages to run a smaller government as a share of gross domestic product than the United States and most other countries while providing a higher level of service, security, prosperity and freedom. How does it do that?

Both the United States and Switzerland are federal republics. If one reads the Federalist Papers and the oworks of the American Founding Fathers, it is clear they envisioned a nation that operates much more like Switzerland than one with the large central government the U.S. now has.

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THE OBAMA-PROOF PORTFOLIO


In the wake of Zero's election last November (the DOW was above 9,000 on 11/04), TTP predicted the DOW was headed to below 7,000 (The Word That Can Save America, 11/21).  Wait ‘till you see where we think it's headed now (see below).

By now, it should be clear to anyone with a desire for self-preservation that Zero's economic policies are indistinguishable from those skillfully designed to destroy the American economy on purpose.

Thus the urgent need for strategies to preserve one's savings and assets under attack by Zero's malicious economic masochism.  We all need to develop an "Obama-Proof Portfolio."

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