The World Just Got 10x More Dangerous – Cyprus

Can one little nation destroy democracy as we know? Maybe…

For those who do not follow world financial trends.  Europe is in trouble, heck all of Western civilization is in a debt crisis.  But Europe is feeling it more so in their weaker nations.

Cyprus is currently the talk of the town, and were about to receive a German funded bailout. But having bailed out a few nations already, the EU chose to do something different. They wanted Cyprus to help, by implementing a tax on deposits. A 10% tax on deposits over 100,000 Euros. But not to leave joe-average Cryprus resident feeling left out. Those with under a 100,000 Euros would be hit with a 6.75% tax. 

http://finance.yahoo.com/blogs/daily-ticker/why-cyprus-bail-bigger-deal-think-141844402.html

Imagine if your savings or 401K/IRAs suddenly lost 10% of their value to bail out the government.  Needless to say, you’d probably go to your bank and withdraw all your cash.  Cash out your 401K and pay the penalty.  This already is being talked about potentially triggering a run on the banks. [Remember, the entire purpose of the bailouts was to maintain confidence that our money and deposits would be safe in the banks. To prevent a 1930′s style run. This one act could undue all of the confidence in banks.

You really have to wonder what the EU/Germans are thinking.  This could lead to riots, revolutions, etc. Beyond being disgusting. This act heavily penalizes those who were prudent. It reaffirms to those who lived beyond their means, are in debt and have little to no savings that is the best way to live, while those who saved for a rainy day, didn’t give in to the consumption economy, and saved a little nest egg are now going to be robbed to the 1/10th degree.

So will this cause riots, or revolution in Cyprus?  I don’t think so. Maybe riots, but a revolution? How can they?  A quick look on Wikipedia reveals Cyprus’ gun laws.

http://en.wikipedia.org/wiki/Gun_politics#Cyprus

Summary: No handgun ownership, not even 22 caliber.  One may own a shotgun, but is restricted to a single or double-barrel unit. No pump action or semi-auto shotguns allowed.  Even air rifles are regulated.

So in other words, Cyprus’ citizens have no means to defend themselves from the brigandly robber actions of it’s government and the EU.

This is a reminder of just why the 2nd Amendment is so very important. It is truly, ALL that keeps us free. It is what separates the free man from being a mere subject and slave.

 

Published in: on March 18, 2013 at 12:58 pm  Leave a Comment  
Tags: , ,

Debt, it’s not guns…but it’s probably my 2nd biggest issue.

Debt is a cancer…

Do these policies sound familiar?

http://www.investopedia.com/slide-show/5-failed-currencies-why-they-crashed/?utm_campaign=inv-out-forexo-111212&utm_source=out&utm_medium=cpc&utm_content=adg-na_adv-na_mtp-na_adc-con_adf-mix_ptp-cp_geo-us#axzz2MrwMmBJE

“[Chile] dramatically increased social spending to redistribute wealth to the poor….adopted an expansive monetary policy that initially produced economic growth, but also fueled a rise in inflation.”

“Peru embarked on a program of increased public spending in the 1980s without a plan for dealing with the resulting debt. Investment dried up as liberalized trade policies slowed growth and inflation started to rise.”

“[Zimbabwe] As government spending escalated, wage and price controls were implemented that produced massive budget deficits.”

“[Argentina] Rather than reduce spending or institute temporary borrowing to cover the shortfall, the government resorted to printing money. [GDP declined, and money supply continued to expand.]“
“This pressured the German government to print money to pay salaries and the war debt, and hyperinflation set in.”

Published in: on March 7, 2013 at 11:52 am  Leave a Comment  
Tags: , ,

Understanding the Sequestor…

So I was trying to understand what the sequestor really means. So I tried to put it in terms of a household, after a liberal friend decried the evil of the Republicans in pushing for such extreme cuts. So here it is…(barring any mistakes in my quick Excel calculations).  

***

Understanding the Sequestor…

You earn $75,000/year. You’re charging another $25,000 to your credit card, which is already near it’s maximum limit. Current credit card debt is $420,000.  And you’re wife demands you cut $2,235 out of the budget.  And you call her stupid. (We’re not even counting the $1.5 million we owe on the mortgage – borrowed funds from social security, pensions, etc.)
Really, maybe the Republicans are bloody stupid. Because they’re fighting over a mere $2,000 out of a hundred thousand dollar budget.  Why bother?

***

Proposed Cuts ($2K): $85 billion
U.S. Revenue ($75K): $2.9 Trillion(1)
U.S. Proposed Budget ($100K): $3.8 trillion(1)
U.S. National Debt (credit card): $16.5 Trillion (2)
U.S. Total Debt Obligations (mortgage): $58 Trillion (2)

NOTE: All figures are rough approximates, but it gives you a ballpark understanding. Yes, what a stupid wife to demand you cut that $2,000.  What a pittance of cuts in reality.

Published in: on February 26, 2013 at 10:05 pm  Leave a Comment  
Tags: ,

Primary Talk: Young chooses old…

Ron Paul repeatedly winning the vote of the younger generations.

http://www.foxnews.com/opinion/2012/01/31/what-is-so-appealing-about-ron-paul-to-young-voters/

Please understand, in no way do I think Ron Paul is the perfect candidate. I have a few issues with his stances, namely, the fact that I am opposed to state rights. I believe individual rights trump both state and Federal and that the point of the two governments is to be in constant opposition to protect the rights of the individual.

That said, the media (& his own party’s) repeated attempts to silence Ron Paul and his message, leads one to be concerned about the system.  Today, CNN casually leaves Ron Paul off the tally listing. I could understand if they simply include Romney and Gingrich. But they included Santorum, who had one win and less delegates than Ron Paul.

But here is the interesting case study. I’ve noticed that election after election that Ron Paul is winning the young vote 29 and under, and a lot of the mid-30′s crowds as well.

What does this say?  Some are finally starting to talk about this trend.

I am of the opinion that Ron Paul is really the 2016 candidate. But he will probably be too old to run at that point.

What do I think is leading to this support?

1. He is the only candidate talking about getting rid of America’s debt. The younger generations understand they’re going to inherit this debt.  Who wants to inherit your parent’s credit card debt. When grandpa says let’s pay it off, I’m with grandpa.

2. He is the only one addressing the issue of the American empire and militarism.  What many criticize him for as “isolationism”, but is in fact merely non-imperial behavior. Ron Paul supports free trade, diplomacy. I think this approach makes greater sense to me. I see how we’ve handled Cuba. 1/2 a century of embargo and zero effect or achievement of goals. I believe the sanctions are the wrong approach. That increasing trade relations would do more to bring down the regime and further change.  We can look to China, which is still no rose garden. But it’s been the introduction to capitalism that has encouraged change, not embargoes.

3. He comes across as not part of the big entrenched government beaucracy. I think this is what a lot liked about Barack Obama as a candidate, they had the hope that he would not be a typical entrenched politician. Many have since become disappointed and disenfranchised with President Obama on these matters.

4. On a number of social issues, Ron Paul’s libertarian approach gains approval of a generation that views the world much differently than it’s predecessors. Most younger people seem to want government out of marriage. Something Ron Paul supports, perhaps for different motivations. But the results are the same.

All of this needs to be noted by the Republican party who is more and more increasingly being seen by the younger voters as an old boys club which is simply concerned about politics and elections, and not the issues. 

I think 2016 and 2020 will have very different platforms to today’s politics. The Republican party has done much to impede Ron Paul. They are failing to grasp that it is not a man, but an ideology. In truth, were the ideology to have a better figurehead than Ron Paul, I believe the primary would already be over. 

Eventually things will change regardless. A nation cannot continue to have $1 trillion deficits without eventually facing the muster.

Published in: on February 1, 2012 at 4:38 pm  Leave a Comment  
Tags: , , , , , ,

Interesting Aspects of the Debt Ceiling War

I agree with the vast majority, that the whole debt ceiling battle is merely a horse and pony show. They will huff, and puff, and raise it just like they always do. However, some rather interesting aspects have shown forth.

The Senate cancels 4th of July recess amongst claims that they shouldn’t go home with such a crisis on their hands. When everyone knows a single week is going to make very little difference on the matter – this is merely a political play to call a bluff – concede or lose your holiday.

http://money.cnn.com/2011/06/30/news/economy/senate_recess/index.htm?cnn=yes

But I find this statement involving the potential use of a “trump” card by the Executive branch to be even more interesting. Furthermore, it potentially has far more reaching consequences. An invocation of the 14th Amendment.

“The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned.”

“Even Geithner, at a Politico breakfast last month, whipped out a copy of the Constitution and read the 14th Amendment aloud. “This is the important thing -’shall not be questioned,’ ” he said.”

http://money.cnn.com/2011/06/30/news/economy/debt_ceiling_constitution/index.htm?source=cnn_bin

The key question will be whether the debts are authorized by law or not.

The part I find =interesting is that they focus on the “shall not be questioned”. If they successfully argue their case and their interpretation of those words and their strength on such an issue. It will be much harder for justices to diminish the 2nd Amendment’s “shall not be infringed” clause.