We enter the year of the all-conquering US dollar. As the global security system unravels - with echoes of 1914 - the premium on the world's safe-haven currency must rise.

As the Fed turns off the spigot of dollar liquidity, it will starve the world's dysfunctional economy of $1 trillion a year of stimulus. This will occur through the quantity of money effect, hitting in a series of hammer blows, regardless of whether interest rates remain at zero.

It is hard to imagine a strategic and economic setting more conducive to a blistering dollar rally, a process that will pick up speed as yields on 10-year US Treasuries break through 3% (as of today, 01/02, it is at 2.992).

We’re going to enter a brave new world in 2014. The democracies are on the back foot. It is no longer Francis Fukuyama's "End of History," but history returning in tooth and claw. So with that caveat let me try to make sense of global economic forces.

The annual rite of new year predictions is never easy. It is nigh impossible in the midst of a global regime change with so many political bombs primed to go off at any moment. But here we go.

Aren't you dizzy?  This week's events are like a ride on Full Throttle, the world's fastest-tallest roller coaster that just opened (6/22) at Six Flags Magic Mountain north of LA.

Might as well start with the Treason Vote in the Senate yesterday (6/27).  The 2,000 page Amnesty Bill - S744 - passed 68-32.  Here's the roll call.  All 54 Dems-Yes, 32 Pubs-No.  The 14 Pubs voting Yes: Alexander-TN, Ayotte-NH, Cheisa-NJ, Collins-ME, Corker-TN, Flake-AZ, Graham-SC, Hatch-UT, Heller-NV, Hoeven-ND, Kirk-IL, McCain-AZ, Murkowski-AK, Rubio-FL.

14 reasons why the Republican Party as ruled by its Establishment Elite has to be demolished, as in going the way of the Whigs.

Supposedly, the bill is DOA in the House.  The fate of our country seems now dependent on the word of John Boehner.

So -- ready to get on Full Throttle and ride through the week?

Nassau, The Bahamas. For at least the last 2,500 years, from the time of the Athenian republic, fragile islands of freedom have been under attack. Unfortunately, nothing has changed, except now some of the aggressor states cloak themselves in the mantle of compassionate democratic countries.

Rather than using arrows or bullets, the new weapons of the aggressor states are financial sanctions, including restrictions on corresponding banking relationships. It all sounds so civilized, proper and benign, but in reality, it serves to destroy incomes and property both in those jurisdictions under attack and many of those in the attacking states.

And the greatest destroyer, the greatest oppressor of financial and economic freedom in the world today is America under Barack Obama.

For all of my life, America has stood for freedom in the world. Until now. Ever since Obama’s rise to power, America’s “Freedom Agenda” – the promotion of and support for expanding freedom and democracy – has been squelched.

Supporting, for example, the Green Revolution in Iran in 2009, and the protesters in Ukraine today would have been no-brainers if the Obama administration had the slightest inclination to cultivate US allies and the cause of freedom more generally.

Both the Iranian democracy activists then and the Ukrainian protesters today demonstrated through their actions that they do not seek the mere overthrow of unrepresentative, repressive governments. They seek freedom, and are willing to work for it.

The situation in Iraq, and in Ukraine – as well as in Iran, Egypt, Tunisia, Libya, Yemen, Afghanistan and beyond – makes clear that Obama has killed America’s freedom agenda. And that isn’t all.

Obama doesn’t simply neglect democratic forces in favor of authoritarian regimes. In country after country, under his leadership the US sides with anti-American forces of authoritarianism against pro-American forces. Why?

Tweet, tweet!  As of yesterday (6/20), thanks to Miko, TTP is on Twitter: @2thepointnews.  Or click on the Twitter icon in the right side bar.  Now you can tweet your favorite quotes from or link to any TTP article to any of your followers.  Tweet and Retweet away!

There is so much to Tweet about this week.  Marco Rubio morphing into Charlie Crist.  Zero stepping deep in two cowpies. Sarah Palin is back!  Dems defeating their precious trillion dollar Food Stamp bill.  Dems crying over their prospects all the way to 2022.  Technology protecting us from the Surveillance State.  The EPA failing to fault fracking.  And there's more.

We'll end with a story appropriate to today:  June 21^st, the Summer Solstice (in the northern hemisphere).  No, it's not about flower-bewreathed New Agers communing with the Druids at Stonehenge.  It's about one of the most extraordinary geniuses in history you may have never heard of.

What do you do if the facts don't support your beliefs? If you are honest, you will rethink what you previously believed. If you are a Keynesian economist, though, like New York Times columnist Paul Krugman, you make silly assertions.

In his Jan. 31 column, Mr. Krugman said he wants to see "some example, somewhere, of austerity policies that succeeded."

If you are a Keynesian school economist like Mr. Krugman, you define "austerity" as a reduction in government spending as a percentage of gross domestic product (GDP). If you are a classical Austrian school economist, you view a reduction of government spending not as austerity, but a growth-enhancing policy.

Mr. Krugman seems to have forgotten that the government share of GDP dropped after Reagan was able to get most of his policies through the Democrat-controlled Congress (which Mr. Krugman would define as austerity). The economy boomed and employment soared. Likewise, when government spending was reduced as a share of GDP during the Clinton administration and the Republican Congress, the economy and employment boomed.