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CHINA’S TRIPLE-D NIGHTMARE OF DEFLATION, DEVALUATION AND DEFAULT


China is at mounting risk of a financial crisis this year as growth sputters and deflationary pressures trigger a wave of defaults.

This is the warning issued by Bank of America Merrill Lynch. The US lender is telling clients that a confluence of forces is threatening to chill the speculative mania on the Shanghai stock exchange and to expose the underlying fragility of China's $26 trillion edifice of debt.

"A credit crunch is highly probable," says the investment bank in a clients-only report entitled "Focus on the Triple D: Deflation, Devaluation, and Default," written by David Cui, Tracy Tian and Katherine Tai.  Mr. Cui, Head of China Equity Strategy at BofA Merrill Lynch, is the No. 1 ranked China strategist by Institutional Investor magazine.

They say the country's highly-leveraged companies cannot safely withstand President Xi Jinping's drive to stamp out moral hazard and wean the country off excess credit, warning that the mix of slower growth and excess debt "could prove lethal for the financial system."

Analysts from other financial institutions agree.

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HALF-FULL REPORT 10/03/14


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This picture of Teddy Roosevelt is a family heirloom. The reason is that the man standing in front of TR is the Chief of the Secret Service Presidential Bodyguard -  my grandfather Lucien C. Wheeler. For 20 years (1902-1922), Lucien guarded the lives of four presidents: TR, Taft, Wilson, and Harding.

I have such fond memories of Papa as a young boy.  He spoke with reverence about the Secret Service and its sacred duty to guard the President.  I can only imagine the contempt and disgust he would feel over what Zero has done to it.  I know what he would say:  "The fish rots from the head."

In the wake of a trio of scandals, Julia Pierson had to resign as Secret Service Director on Wednesday (10/01).  And just how did the press learn of these scandals such as a felon with a gun being in an elevator with Zero?  They were leaked by Secret Service agents themselves disgusted by Julia's incompetence and considered her "a joke from Day One."

Secret Service leaks embarrassing Zero are just the start of what promises to be an endless succession.  This was made clear by Piers Morgan of all people (remember him?), who explained how Zero "committed professional suicide" last Sunday (9/28) on 60 Minutes...

Two more gifts came out of Zero's big mouth this week.  Yesterday (10/02) at Northwestern University, he uttered what the WaPo's Chris Cillizza reports were "28 Words Democrats Wish Obama Really Didn't Say." ...

Here's a trio of Good News rulings for the week... followed by the HFR Hero of the Week.  We have five candidates...

And here's why Abbott and Costello make the HFR think of Ted Cruz.

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HOW TO PROTECT AMERICA AND HAVE ISLAM BE A RELIGION OF PEACE


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President Obama's White House statement on Aug. 28 was clear on two things: "ISIS must be defeated" and "we don't have a strategy yet."

With this in mind, let me offer a modest proposal that requires no military escalation, no additional defense spending, and no sacrifice of the American troops in the Middle East.

The president has already recognized the beheading of an American journalist as a terrorist attack on the United States and is said to be considering all options to protect Americans from the ISIS threat reaching the U.S. So let's take him at his own word and propose that his list of "all options" should begin with:

(1) An end to political correctness, and

(2) A moratorium on pandering to immigrant groups in order to win elections for the Democrats.

Let's call them Option One and Option Two. Like it or not, they must be in place before the president can even begin to think about protecting our borders and profiling terrorists at the airports in order to prevent any of the 3,000 members of ISIS who have U.S. or European passports from slipping into America, where they know they have an extensive and well-funded support base.

Which brings us to Option Three: Extinguish their support base inside the U.S.  There's an easy way to do it.

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THE WORLD’S BEST GOVERNMENT


Geneva. Switzerland is not perfect, but as countries go, it is hard to find one that is much better.

The more people know about Switzerland, the higher regard they tend to have for it. By almost any measure of human accomplishment, and particularly in creating a most successful country governance model, the Swiss are clearly No. 1 in the world.

Switzerland is a small, landlocked nation without much in the way of natural resources. It has managed to stay out of wars for two centuries and developed a long-term multilingual and multireligious democracy without strife. There is a rule of law with competent and unbiased judges and strong protections for private property.

Switzerland also ranks higher than average among the OECD countries (the 35 most-developed economies in the world) in levels of education and student test scores, and has lower levels of air and water pollution.

Civil liberties are strongly protected, including freedom of speech, religion, press, assembly and even the right to own guns. It does not get much better than this.

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THE MANCHURIAN CONSPIRACY


The greatest conspiracy in world history is being carried out by the real-life "Manchurian Candidate": President Barack Hussein Obama.

My definition of a "Manchurian Candidate" is a person who hates everything America stands for and whose goal is to win the presidency for the express purpose of destroying the greatest nation, the greatest economic system, and the greatest middle class in world history. That, my friends, describes Obama. I'm not basing it on rumors or innuendo. I'm basing it on the facts.

I know liberals hate facts, but bear with me. So here are a few, which I lay out more fully in my new book, The Murder of the Middle Class:

For the first time in American history more businesses are closing each day than they are starting.

More Americans now receive entitlements than work full-time.

There are now 70 percent more Americans collecting entitlement checks than working in the private sector (148 million "takers" vs. 86 million "makers").

The average full-time male employee now earns less (adjusted for inflation) than he did forty years ago.

Twenty percent of U.S. families don't have a single member who is employed.

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CALIFORNIA IN EUROPE

cali-in-europeWe'll have to deal with the deluge of dictatorship Zero and his minions are inflicting upon us in the HFR tomorrow.  Today, we have to take a break and get outta this place.  How about to one of the world's most pleasant places, Europe's California?

Especially since we're going to have a TTP Retreat there in March.  More about that later.

Both my wife, Rebel, and I grew up in California, so we know it when we see it - and we recognized it right away in Portugal.  The weather, the plants, the ocean, the sunsets in the ocean, the coast - which is more beautiful than Italy's (okay, except for Amalfi), way more friendly than France's (surprise), and far less known and populated than Spain's.

Then of course, there's the great wine and great food.

Also of course, there are differences.  California, as anyone who grew up there knows, no longer exists - it is Mexifornia, as Victor Davis Hansen terms it, with a Hispanic vise-grip on the government in Sacramento welcoming an illegal alien flood.  The European corollary is Eurabia - the flood of Moslems demographically destroying so many countries like France, where half the schoolchildren in many major cities today are Moslem.

But not in Portugal.  The Moslem population is miniscule.  Make that invisible.  You never see a mosque, you never see a woman in a burka.  The Portuguese are Christian Europeans.  They kicked Moslem invaders from Africa out of their country 764 years ago (in 1249) and are happy to keep it that way.

California's history is as recent as Portugal's is ancient.  People have been living there before they were people.

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TWO AMERICAN HEROS NAMED ARMSTRONG


The memory of exactly where I was remains vividly clear.  On July 20, 1969, in the home of Leeds and Linda Davis in Honolulu, Hawaii, I sat transfixed in front of a television with a group of friends - several of whom are TTPers today - and watched the single greatest achievement in mankind's history as it was happening:  Neil Armstrong stepping foot on the moon.  

We all realized we were witnessing an unmatched heroic triumph, but we didn't realize at the time just how heroic.  As the Eagle Lunar Lander was on approach to land at a spot NASA dubbed Tranquility Base, its computer malfunctioned, the fuel gauge was flashing red-empty, and the designated landing area was riddled with boulders.  The Eagle Lander was about to crash.

Armstrong took the controls away from the computer, and smoothly flew the Lander himself to a boulder-free spot, gently set it down on the surface of the moon, and calmly reported to NASA Control and all humanity:  "Houston, Tranquility Base here - the Eagle has landed."   

This great man passed away last Saturday (8/25) at age 82.  A Congressman who I talked to observed, "One thousand years from now, the single most remembered name from our times will be Neil Armstrong."

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THE O-MAN: THOSE 398 WORDS THAT WENT VIRAL


Last June, I wrote O=Zero, offering an O=Zero bumpersticker (there's also an O=Zero T-shirt).  Somebody, I haven't the foggiest idea who, excerpted 398 words from the article and emailed all his (or her) friends, who proceeded to do the same with their friends.

When this happens exponentially, and the email ends up in umpteen gazillion inboxes so that people tell you "this is the fourth time I've been sent this!", it is said to "go viral."

An example of how viral is that a columnist for Townhall, Doug Giles wrote a column about it .  He starts by saying:

A buddy of mine in Texas sent a friend of his, an Obama backer, a devastating article written by Dr. Jack Wheeler in which he spotlights in 398 words the fact that Barack, in reality, is much different from the fabricated Jesus image the Dim-o-crats would have us worship.

Yes, in just a few keystrokes Wheeler deftly dismembered the notion spun by the scribes of Obama that he is the fresh breeze blowing in our land and reveals, instead, that Barack is a typical uberliberal slim shady politician who simply blows.
The funny thing is, he continues on about Obambi but never quotes a single one of my "398 words"!  So I thought that, just in case you've had your inbox turned off lately or are one of the rare folk who haven't been sent this, you'd like to see all 398.

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THE BLUE DOG HOPE


White House spokesman Tony Snow and Homeland Security Secretary Michael Chertoff both were at a meeting I attended this week, attempting to allay fear and anger over the immigration reform bill. 

I have to tell you they were very persuasive.  I am convinced they are both honest, that they are genuinely trying to solve a seemingly intractable problem with good patriotic intentions, that they believe this bill is an unprecedented ("Underline that word three times," said Tony) commitment to secure our southern border, to effect employer enforcement, and replace chain migration with a merit system.

Chertoff and Snow are two decent men arguing from principle and integrity.  Both are smart - Chertoff is very smart.  And both are, with innocent naiveté, being taken to the Destruction of America Cleaners by Teddy Kennedy.

You can't make a deal with the devil.  You'll always get screwed, no matter how many amendments and marvelous provisions you stick into the deal. 

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THE SHAME OF CONDI, CAUGHT IN BED WITH THE MULLAHS


Secretary of State Condoleezza Rice, whose tenure at Foggy Bottom began with such energy and fine language about support for freedom in the Middle East, is begging the Iranian foreign minister to come to a "future of Iraq" conference in Egypt next week. She told the Financial Times that it would be a "missed opportunity" if Minister Mottaki didn't show up.

In the same interview, she denied ever thinking about regime change in Iran. Our Iran policy, according to the secretary, is to "have a change in regime behavior." Some day she will perhaps explain how any rational person can believe this cast of characters capable of changing behavior that has been constant for 28 years.

We are back to the days when Madeleine Albright went to international meetings hoping to get a one-on-one with an Iranian minister so she could apologize for past American sins and get on with the glorious business of striking a grand bargain with the mullahs.

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PROGRAMMERS GET THEIR OWN SEARCH ENGINE

Developers can use Google and other search engines to find source code, but it's not easy.

A Silicon Valley startup claims to have come up with a better alternative -- a search engine for source code and code-related information.

The tool, known as Krugle, is designed to deliver easy access to source code and other highly relevant technical information in a single, convenient, clean, easy-to-use interface, according to the company. Krugle works by crawling, parsing, and indexing code found in open source repositories and code that exists in archives, mailing lists, blogs, and Web pages.

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FIFTH COLUMN DISTORTION


In his speech at the Naval Academy Wednesday outlining U.S. strategy in Iraq, President Bush paid tribute to Marine Corporal Jeffrey Starr, killed in a fire fight in Ar Ramadi April 30th. He was 22, on his third tour in Iraq.

A letter to his girlfriend was found on Starr's laptop computer:

"If you're reading this, then I've died in Iraq," Cpl. Starr wrote. "I don't regret going. Everybody dies but a few get to do it for something as important as freedom. It may seem confusing why we're in Iraq; it's not to me. I'm here helping these people so they can live the way we live, not to have to worry about tyrants or vicious dictators. Others have died for my freedom; now this is my mark."

In a mammoth article in October taking note of the 2,000th U.S. death in Iraq, the New York Times mentioned Cpl. Starr and his letter, but didn't quote the passages above.  All the Times quoted from his letter was: "'I kind of predicted this,' Corporal Starr wrote of his own death. 'A third time just seemed like I'm pushing my chances.'"

The Times' omissions and distortions -- which are more the rule than the exception in news coverage of Iraq -- explain why so many Americans think we're losing a war we're plainly winning.


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ON DEATH AND CANCER


If we could prevent or cure all cancer, what would we die of?

The new year has begun with a war of words over whether cancer is mostly bad luck, as suggested by a new study from Johns Hopkins School of Medicine, and over whether it's a good way to die, compared with the alternatives, as suggested by Dr Richard Smith, a former editor of the British Medical Journal (BMJ).

Cancer is now the leading cause of death in Britain even though it is ever more survivable, with roughly half of people who contract it living long enough to die of something else. But what else? Often another cancer.  Cancer's growing dominance of the mortality tables is not because it's getting worse but because we are avoiding other causes of death and living longer.

It is worth remembering that some scientists and anti-pesticide enviros in the 1960s were convinced that by now lifespans would be much shorter because of cancer caused by pesticides and other chemicals in the environment.

In the 1950s Wilhelm Hueper - a director of the US National Cancer Institute and mentor to Rachel Carson, the environmentalist author of Silent Spring - was so concerned that pesticides were causing cancer that he thought the theory that lung cancer was caused by smoking was a plot by the chemical industry to divert attention from its own culpability: "Cigarette smoking is not a major factor in the causation of lung cancer," he insisted.

In fact it turns out that pollution causes very little cancer and cigarettes cause a lot. But aside from smoking, most cancers are indeed bad luck.

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HALF-FULL REPORT 09/26/14


Obviously, the HFR's glass is more than half-full this week with the announcement yesterday (9/25) that the racist scumbag running the Department of Injustice is quitting.

The disgusting tearful hypocrisy of his goodbye to Zero aside, this is an event to be savored.  Here's a sample of the Congressional goodbyes to the most corrupt, criminal, and law-destroying AG our country has ever had the misfortune to endure...

Yet there is more to celebrate than his resignation - it's the timing.  There's lots of speculation on why he chose this moment, but the bottom line is he announced it a scant 40 days before the election...

Let's squelch the latest nightmare rumor on Holder - that Zero plans to nominate him for the next Supreme Court vacancy.  There's as much chance of that as Hillary being able to fly to the moon on her broomstick...

We're taking a break here for an important public service announcement.  The headlines regarding the Ebola epidemic in West Africa are becoming ever more dire.  That of Forbes yesterday (9/25) was: "Ebola - It's Far, Far Worse Than You Thought."

TTPers asked our Forum's resident genius, Skye, what could be done.  Here is his response.  Our suggestion is that you copy and paste it into an email sent to your Congressman, Senator, and any friend who is a health professional.  Who knows how many lives you could save by doing so...

How many times have you been subjected to flashing website ads blaring about the "coming collapse of the dollar"?  Two of the best conservative economic minds put the kibosh on this blather Saturday...

On Wednesday (9/24), Zero gave a speech at the UN.  The link is to the full text.  It was roundly ridiculed and denounced by many conservative pundits.  But believe it or not, there was a lot in it that is praiseworthy...

We close with a tribute to one of the world's most admirable women...

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IN PRAISE OF TAX HAVENS


Jersey, Channel Islands.  Americans know of the state of New Jersey, but few know that it was named after the island of Jersey, which is located in the English Channel about 14 miles off the coast of France.

This small island, about two-thirds the size of Washington, D.C. with only 100,000 people, is today home to one of the world's largest financial centers.

Jersey has a higher per-capita income than America, and roughly twice the per-capita income of Britain and France. The globe is dotted with relatively small, prosperous places that have become rich without the benefit of natural resources.

What have they -- Jersey and the island next door, Guernsey, along with Bermuda, Cayman, Singapore, Hong Kong, and even larger places like Switzerland --  done right, leaving many of their larger and more richly endowed neighbors plodding along in their economic dust?

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