The GOP Punts - And the road to Greece gets closer and closer

The Debt Can Gets Punted Again

• Congress allows an UNLIMITED increase in the debt until February 7th.
• The budget measure that ended the partial government shutdown allows for a 1% raise for Federal employees in January.
• GOP abandons the Constitution.  Allows the Senate alone to dictate all government spending.
• For TV both parties pretend to focus on Obamacare, but work together behind the scenes to keep other spending programs fully funded and out of the debate.

By Gary;

Both parties have kicked the Socialist spending-debt can down the road yet again.

With the Democrats you get up-front honest Marxism, wealth re-distribution and an unconstitutional centralized 1984 Surveillance State.

My beef is with the Republicans.  I have Blogged from day one that the GOP is effectively a radical New Deal Leftist political movement.  The party has adopted as their own, voted to fund and has protected every Liberal wet-dream spending or police state program ever conceived by FDR or LBJ plus a few the GOP dreamed up on their own.

So we have a nation without an opposition party.

The GOP talks a good game about small Constitutional government, but the party members eagerly latch on to the public teat.  We are already seeing GOP Governors around the nation jumping on the Obamacare train in order to cash those Federal checks.  In 2014 those Republicans will campaign for re-election that they "brought home the bacon" to their districts and states.

The GOP lost the public relations moral high ground in January, 2011.  Except for holding hearings in the House to embarrass the other Big Government faction, the GOP has not fought to cut one single dime.  They voted again and again to protect re-distribution of wealth spending programs and increase the debt limit. 

In a world gone mad, the now capitalist Chinese are condemning U.S. big government spending. A Chinese ratings agency downgraded its US sovereign credit rating Thursday despite Washington's resolution of the debt ceiling deadlock, warning that fundamentals for a potential default remained "unchanged".

Dagong lowered its ratings for US local and foreign currency credit from A to A-, maintaining a negative outlook.

Look out Greece, here we come.

The "Billionaires" of Zimbabwe know full well
about the endless printing of money.

US credit rating under review - What took so long?

"Paper money eventually returns to its

intrinsic value -- zero."
Voltaire

Global credit rating agency Fitch has put the United States’ ‘AAA’ credit rating on “rating watch negative” based on stalled debt ceiling negotiations.

The real question of the day is, "What took so long?"   After all, with the Federal Reserve printing trillions of phony Obama Dollars every year it is not like our currency has any real value. 

"Although Fitch continues to believe that the debt ceiling will be raised soon, the political brinkmanship and reduced financing flexibility could increase the risk of a US default," Fitch wrote in a release Tuesday afternoon. 

The agency said the US Treasury, though it could still make some obliged payments after October 17, may be exposed to “volatile revenue and expenditure flows” based on the impasse in Washington reports RT News.

“The US risks being forced to incur widespread delays of payments to suppliers and employees, as well as social security payments to citizens - all of which would damage the perception of US sovereign creditworthiness and the economy,” Fitch wrote.

Halted talks on raising the debt ceiling risk "undermining confidence in the role of the US dollar as the preeminent global reserve currency, by casting doubt over the full faith and credit of the US,” Fitch went on. “This ‘faith’ is a key reason why the US 'AAA' rating can tolerate a substantially higher level of public debt than other 'AAA' sovereigns.” 

"The announcement reflects the urgency with which Congress should act to remove the threat of default hanging over the economy," a US Treasury spokesperson said. 

In August 2011, credit rating agency Standard & Poor’s downgraded the US credit rating from ‘AAA’ (outstanding) to ‘AA+’ (excellent) amid a similar stalemate in Washington on raising the debt ceiling. 

Call me crazy, but maybe default would be a good thing.  Bankruptcy would be a true shock to the political system that would force real changes in money printing, spending and debt.

“We are in danger of being overwhelmed with irredeemable paper,
mere paper, representing not gold nor silver; no sir, representing
nothing but broken promises, bad faith, bankrupt corporations, 
 cheated creditors and a ruined people.”
Daniel Webster
Congressman, U.S. Senator
Federalist Party

.
Denial is not just a river in Egypt
Both the U.S. and world are living a fantasy that the dollar has any real value.  To bottom line it, the dollar is only paper and it is losing value by the day through endless money printing.  At some point the bubble will burst and no one will want to buy our debt.

The Next Economic Bubble is Coming - It is Time to Enlarge Your Bunker

The Next Economic Bubble will Burst

• Our weak economy is held together with printing press money and artificially low Federal Reserve created interest rates.
• The new real estate and stock market bubbles will burst just as all bubble have burst throughout history. 

American investment broker, businessman, author and financial commentator Peter Schiff warns us that we are in worse shape now economically than we were just before the 2008 financial crisis, which we still have yet to recover from.

“I think the U.S. has been in a depression or a recession for the entirety of the Obama presidency,” Schiff said. “I think there’s going to be a depression, but I don’t think it’s going to be global.”

“When the dollar collapses and when the rest of the world stops wasting their resources, propping up our economy, buying our debt, selling us products that we can’t pay for, I think you’re going to have a global economic boom outside of the United States,” reports Infowars News.

“I just hope that one day we’re smart enough to jump in on it by adopting free market principles.”

“I hope we can reclaim our former glory,” he continued. “But to do that’s we’re going to have to reclaim the values that we have abandoned and those are the ones that our Founding Fathers wrote into our Constitution, not the ones that we’re following now.”

Peter Schiff Warns of Economic Collapse and Martial law  

A must see video. 

Take the time to see it and get ready to dig your bunker even deeper.

Get ready for the next collapse.
Economist Peter Schiff says the dollar will collapse "when the rest of the world stops wasting their resources, propping up our economy, buying our debt, selling us products that we can’t pay for."

COMMUNISM - Calif. city to seize private property

“From each according to his abilities, to

each according to his needs.”
― Karl Marx

The People's Republic of California  -  Marxist California Democrats are on the march looking to seize the money, the private property, of banks and private individual lenders and re-distribute that wealth to voter home owners.  Emphasis on the VOTER part please.

When you rob Peter and give the money to Paul, you will always get Paul's vote.

The Leftist Democrat city of Richmond, California, said on Tuesday it will use its power of eminent domain to seize private property mortgage loans to keep its residents in their homes, becoming the first U.S. municipality to adopt such an approach.

The northern California city sent notice to the holders of more than 620 underwater home mortgages in the city, asking them to sell the loans to the city. It would buy the mortgages for 80 percent of the fair value of the homes, write them down and help the homeowners refinance their mortgages.

In the event the owners of the loans would not cooperate, the city would seize the loans using eminent domain, Mayor Gayle McLaughlin said in the Virginia Gazette.

"Residents here in Richmond have been suffering for years thanks to the housing crisis Wall Street created and which Wall Street refuses to fix," said McLaughlin in a statement.

Numerous groups, including the National Association of Realtors, the American Bankers Association, and the Securities Industry and Financial Markets Association, have already voiced fierce opposition to using the threat of eminent domain to buy mortgages.

"It is very, very discouraging to see a municipality begin the process," Timothy Cameron, managing director and head of SIFMA's Asset Management Group, said in an interview. "What this does is destroys the contractual rights of investors along with their trust and confidence in the capital markets. I wouldn't be surprised if a lawsuit is filed by investors, quite frankly."

Eminent domain is normally used by cities to force the sale of homes if they obstruct the construction of a project deemed beneficial to the wider community, such as a road or bridge.
.
Richmond is working with San Francisco-based Mortgage Resolution Partners, a private investment firm that has been pitching the plan to U.S. cities and municipalities for more than a year. MRP, raising money from private sources, would work with the city to obtain the financing to buy the distressed mortgages and restructure them. MRP would receive a fee for every troubled loan it restructured under the plan