Weekday NEWS to Comfort the Disturbed and Disturb the Comfortable.
Mon 12.28.2009
Patriot Radio News Hour Guest host: Mark Call
Back From the Brink (but Watch Your Step) UNLESS you’re Tiger Woods, 2009 has probably been a heck of a lot better than 2008. Last year, most Americans felt as if they had been hit in the head by a 4-iron. Wall Street nearly collapsed. The economy plunged into its deepest recession in decades. As housing prices sank, many homeowners realized that they owed more on their mortgages than their homes were worth. Millions lost their jobs, and even those who didn’t hunkered down, burying their wallets in the backyard. This year — with more than a few bumps along the way — the situation brightened. The stock market surged, and the housing and auto markets appeared to have bottomed out. Demand for certain tech toys like smartphones, which allow people to check e-mail, surf the Web and play games, perked up.
Of Christmas, War and Peace “And this shall be a sign unto you: You shall find the infant wrapped in swaddling clothes, and laid in a manger. “And suddenly there was with the Angel a multitude of the heavenly army, praising God, and saying: Glory to God in the highest and on earth, peace to men of good will.” Here the argument begins. Is it biblical to say, “Peace on earth and good will to men,” which is inclusive but inexact? Or does that dilute and distort the meaning of “Peace on earth to men of good will,” which is restrictive? The former, while ecumenical, seems pacifist. Do we wish good will today to al-Qaida? And is not the chorus singing out peace on earth “to men of good will” at the first Christmas a “heavenly army”?
Fragile U.S. Economy Under Increasing Stress from Escalating Afghanistan War Sherwood Ross writes: If Iraq war spending helped plunge the U.S. economy into its worst slump since the Depression, what does President Obama think his escalation of the Afghan war will do it? Besides forcing taxpayers to cough up fresh billions to enable the Pentagon to chase down a few hundred Taliban fighters, the Afghan war is liable to continue to inflate oil prices---and this means more than the ongoing swindle of motorists at the pump. Higher oil prices also slow the global economy, causing our trading partners to buy fewer Made-in-USA goods, thus reducing demand for our products and leading to layoffs. Spending money on war also siphons billions of dollars from truly productive uses.
South Korea to Build Reactors in Middle East The United Arab Emirates said Sunday that it had chosen a South Korean-led consortium for a $20 billion contract to create the first nuclear power reactors in the Middle East. The Korean consortium beat out a General Electric-Hitachi team and a French consortium that included Électricité de France and Areva. The deal, one of the largest in the energy sector this year, comes amid a resurgence of nuclear power projects and had involved prominent lobbying from officials including the presidents Nicolas Sarkozy of France and Lee Myung-bak of South Korea.
The Economic Crisis Ends 2009, the Political Crisis Begins 2010 First Iceland, then Ireland, now Greece. Much of Europe is mired in inescapable debt and bankrupt nations, the result of crashing banks, bank bailouts, and soaring unemployment. The U.S. and U.K. watch from a distance, knowing their turn is next. The European corporate-elite — like their American counterparts — lavished non-stop praise on the “bold yet necessary” decision to bail out the banks; the economy was supposedly saved from “impending collapse.” But every action has an equal but opposite reaction. Bailing out the banks saved the butts of dozens of European bankers, but now millions of workers are about to experience a thundering kick in the ass.
We're Screwed! ShadowStats.com founder John Williams explains the risk of hyperinflation. Worst-case scenario? Rioting in the streets and devolution to a bartering system. Do you believe everything the government tells you? Economist and statistician John Williams sure doesn't. Williams, who has consulted for individuals and Fortune 500 companies, now uncovers the truth behind the U.S. government's economic numbers on his Web site at ShadowStats.com. Williams says, over the last several decades, the feds have been infusing their data with optimistic biases to make the economy seem far rosier than it really is. His site reruns the numbers using the original methodology. What he found was not good.
An Introspective Look at the Future of America As we close out 2009 and look forward into 2010 and beyond, this has been a year of near financial catastrophe and monumental change, none of which benefited America or ordinary Americans. Late in 2008 and throughout 2009, events have happened in the US which would have been labeled unfathomable just a few short years ago, and yet already these monumental changes are expected to be filed into the memory hole and Americans are expected to believe nothing has changed.
Renegade Economist Christmas Special with Max Keiser
Obamacare sparking 10th Amendment rebellion, action in seven states Looks like the steadily growing list of constitutional, ethical and political outrages that constitute the Harry Reid version of Obamacare is sparking a rebellion in the states, as AP reports South Carolina's attorney general plans to investigate the vote-buying that surrounded the proposal in the Senate majority leader's office. According to AP, South Carolina's Henry McMaster is being joined by the attorneys general of Michigan and Washington state in a suit to determine the constitutionality of the Obamacare proposal. Their initiative was prompted by a request from South Carolina's two senators, Lindsay Graham and Jim DeMint, both Republicans.
“The Last Time That Happened Was During the Great Depression” Until a few years ago, running a U.S. city was pretty easy. You added services when voters asked, you hired more workers (who were likely to vote for you come election time) to provide the services, and you promised lavish retirement benefits to cops and teachers who weren’t going to retire until long after you left office. If tax revenues didn’t cover day-to-day operations, no problem; Washington was sending plenty of aid to make up the difference. No longer. The gap between what a typical city gets from sales and property taxes and what it owes its employees is a now a chasm that even trillions in federal stimulus money can’t fill. So for the first time in most Americans’ memory, cities actually have to live within their means. The result, according to today’s Wall Street Journal, isn’t pretty.
NIB to stop handling cash One of the country's larger banks has told to its customers that it is to stop handling cash in its branches. National Irish Bank says it is moving to a Scandinavian model of "cashless banking" - with an increased reliance on ATMs and debit cards. NIB has told customers that its branches will no longer handle cash withdrawals or lodgements, nightsafe lodgements or foreign exchange cash. They are instead urging customers to use ATMs or get cash back on their laser cards if they need notes. Branches will continue to accept cheques and postal orders.
Gold inches higher in light trade TOKYO, Dec 28 (Reuters) - Gold inched higher on Monday in light trading as many investors stayed to the sidelines after U.S. and European markets were closed late last week for Christmas.
Gold ends above $1,100 as greenback weakens Gold futures on the COMEX Division of the New York Mercantile Exchange returned above 1,100 dollars on Thursday on weak dollar. Silver and platinum both rallied. The most active gold contract for February delivery gained 10.80 U.S. dollars, or 1 percent, to finish at 1,104.80 dollars an ounce. Dollar failed to climb higher despite economic data provided some early-morning support and slowed earlier losses. The U.S. durable goods orders showed healthy growth in business capital expenditures for the month of November, while initial jobless claims data showed that fresh unemployment insurance claims fell to their lowest levels in 15 months.
Gold Recovers as USD Rally Slows Gold prices recovered the past two days as the rally in the USD halted after the release of a disappointing New Home Sales report yesterday. With the greenback under pressure and extremely low levels for Gold, investors have take advantage of the low prices to return investing in Gold. Gold for immediate delivery gained $17.05, or 1.6% to $1,104.60 today.
A PRACTICAL GUIDE TO “GOLD CLAUSES” As most of my readers know, I have long advocated the use of alternative currencies, consisting of silver and gold, in order to return America to constitutional and sound money. There are three means by which such alternative currencies could be introduced into the economy: (i) through an act of Congress; (ii) by State legislation, one State at a time; and (iii) by the private action of individuals. At the present time, option (i) is likely impossible; and option (ii) will require a fair amount of political organizing and “grass-roots” lobbying in suitable “target” States before the first such statute can be enacted. For the time being, then, that leaves option (iii) as the only way to move ahead immediately. Of course, purely private action alone cannot reform even one State’s monetary system.
Peter Schiff on Goldseekradio.com
Gold and Silver Forecast Update What a month for gold and silver as they peaked and crashed by over 10% this month. But instead of being disappointed, I think this is the perfect fodder and stage for the next super fast bull rally. In fact the next move will be among the powerful and sustainable rallies in 7 year bull run of Gold as it will suck in even the most conservative of funds as Gold takes out levels like $1200, $1300 as if they were fig leaves.
Gold The Greatest Currency Trade of the Millennium Even though gold has been in a correction during these last few months, it is important to step back and see how it has out-performed every other currency since this decade, century, and millennium began. I first recommended gold and gold stocks back in February 2002 because the trend I saw of currencies cheapening themselves against their trading partners. You can call this "competitive devaluation." This had not been seen since the Great Depression, and to me, even back then, was a signal that the world economy was heading into tough times. Since about 2001, whenever any currency rises too much, the local manufacturers or farmers – or anyone who lives by exporting – start to scream about it. Their local governments respond by doing all they can to lower the value of that currency, having it fall in value and thus making exports cheaper, all this in the hope that the domestic economy will become better.
Sparkling period for gold is driven by global fears House prices, shares and cash savings have struggled with recession and low interest rates this year, but one asset has enjoyed a golden period. Earlier this month the price of gold hit an all-time high of $1,226.56 (£766) an ounce, up 41% this year and more than four times higher than a decade ago - a sparkling return against most other lacklustre investments.
Gold untraded Dec 25 but platinum and silver inch up With some eastern markets open on Dec 25, silver and platinum prices edged up in light trading, but gold was untraded that day. Gold was untraded on Friday with many players away for the Christmas holidays, while silver and platinum prices inched up. Spot gold was untraded at 0040 GMT. The New York notional close was $1,104.45 per ounce. Spot gold fell to a 7-week low of $1,074.10 an ounce on Tuesday. It has since recovered by about 3 percent. Platinum and palladium prices surged on Thursday after a British firm moved a step closer to launching the first U.S. exchange-traded funds on the precious metals used for cleaning auto emissions.
ETFs, physical investments drive gold market Six geese a laying. Five, Gooollden Riiinnngs." Every year, PNC bank calculates the cost of buying the 12 Days of Christmas. This year's cost: $87,403. Unsurprisingly, labor is the biggest component of that, what with all the pipers piping, lords a-leaping, ladies dancing and maids a-milking. Obscure livestock is also pricey (who knew swans a-swimming cost $750 a pop?). But the only commodity component of that $87,403 - the golden rings - is responsible for the biggest percentage gain in the Christmas index, with PNC estimating manufactured gold to have risen 43 percent since this time last year.
Beijingers in gold rush at year end Gold jewelry sales jumped more than 30 percent over the weekend in Beijing, as bargain shoppers swarmed the city's major jewelry stores on year-end promotions. In a collective sales campaign after international gold prices fell, stores including Caibai, Gongmei and China Gold reduced the pure gold's price by as much as 9 yuan per gram, with more Christmas-themed jewelry designs for shoppers to choose from.
Gold brings a smile to the world's central bankers here is little to beat the lure of gold, as many recipients of a lavish Christmas gift will confirm, but it is not only seasonal impetus that has put a new shine on the precious metal — for the first time in 21 years the world’s central banks have been net buyers. World Gold Council (WGC) data reveals that amid growing concern over the weakness of the dollar, about $28 billion of bullion was bought by central banks this year, based on an average price of $978 an ounce. The biggest buyers have been the emerging economies of China, Russia and India, but smaller countries such as the Philippines, Kazakhstan, Sri Lanka and Mexico have also been shifting their reserves into gold.
Central banks keen to stock up on gold The European Central Bank (ECB) decision to downsize its annual gold sale in 2009 to 155 tonnes is expected to further boost yellow metal prices in 2010. The ECB has sold 400- 500 tonnes annually the last 10 years. Of late, there is a tendency among central banks of many countries to hold a major portion of their reserves in gold. The emergence of new net buyers is expected to add strength to the bullish trend in the metal. China had acquired 450 tonnes, India 200 tonnes and Russia 120 tonnes from the International Monetary Fund this year.
Gold, dollar and euro: A love triangle into 2010 This post is a guest contribution by Dian Chu*, market analyst, trader and author of the Economic Forecasts and Opinions blog. Gold hit a 7-week low on Dec. 22 from recent optimistic data of the U.S. economy. For example, U.S. existing housing sales jumped more than expected, and GDP grew at a 2.2% rate in the third quarter, the fastest pace in two years, amid a larger-than-expected downward revision. The upbeat news lifted the dollar and pushed yellow metal prices to below the $1,100 benchmark.
2009 witnessed change in sentiment towards gold Gold: Prices continued to stay under pressure last week because of a firming dollar. The market dropped below the psychological $1,100 an ounce even as less-committed investor exited. However, speculative longs are still holding considerably large positions on the bourses. While investor interest remains the key to the gold market, in the short-term, currency will play a crucial role. A firming dollar is sure to pressure prices down.
Bullion & Business Weekend Report - Dec. 26 Gold and silver prices moved narrowly in both New York and London during the holiday-shortened week. Platinum, however, soared following news that the SEC approved a proposed rule change to list and trade ETF Securities Platinum and Palladium Trusts. In other markets, crude oil pushed above $78 a barrel for the first time in three weeks while US stocks ended at new 2009 highs. Major European indexes enjoyed weekly gains as well.
Silver Showing Positive Bullish Developments Last week's update was too bearish - especially as there have been a number of positive developments this week not only in both silver and gold but also with respect to major elements having an important bearing on Precious Metal prices. In the Gold Market update we have seen how gold appears to have bottomed and to now be in position to advance again. The action in silver last week was similar, as we can see on its 6-month chart, with it recovering late in the week following an exact contact with the lower boundary of a channel that began to form last September. At the time of this contact a V bottom formed, as with gold, a sign that it had hit a low. Following this positive action and the improvement late in the week it is now in position to advance back towards the top of this channel, a move which would result in appreciable gains from the current level. Various indicators such as the MACD are oversold, providing the leeway for such an advance.
Does dollar’s rally impact the bull market for gold It as become clear that the media and many institutional analysts are going to keep talking the Dollar up despite the lack of fundamental reasons, writes Julian Phillips of the Gold Forecaster. We feel that you will benefit most from a look at what lies ahead for the Dollar and its fundamentals and what could take it higher, if it does rise.
Welcome to the gold party craze: A new day pawning Sometimes when Amber Watson-Tardiff comes across a single cuff-link or a massive tangle of chains in her jewelry box, it occurs to her that it might be time for a gold party. Like many people who are looking for an extra way to make some cash, Watson-Tardiff is skipping the pawn shop and opting instead to sip champagne cocktails with her friends while an appraiser announces just how much her unwanted bling will bring her in unexpected riches. With the price of gold hovering around $1,100 an ounce, the take can be pretty lucrative.
2010 likely to be more testing for hedge funds Hedge funds making big bets on currencies, commodities and equities are favoured by fund selectors in what is likely to be a more testing 2010 after a bumper year for hedge fund returns, it is claimed. While 2009 was characterised by buying riskier assets rebounding from last year's depressed prices, managers believe that 2010 will not see such large price rises. Many fund managers think countries will emerge from the global downturn at different speeds. The UK, for example, was still in recession in the third quarter while some trading partners had begun growing in the second quarter meaning loose monetary policies may be tightened at different times.
Do we need a new reserve currency? A new global currency should replace the US dollar as the international reserve currency, as the long-term deterioration of America's economy and the greenback is fuelling a "currency-regime crisis", says Martin Wolf, associate editor and chief economics commentator of the Financial Times. Wolf, who has honorary doctorates from three universities, bases his argument in part on the Triffin dilemma, an economic paradox named after economist Robert Triffin. The paradox shows that the US dollar's role as a global reserve currency leads to a conflict between US national monetary policy and global monetary policy. It also points to fundamental imbalances in the balance of payments, particularly in the US current account.
Gulf nations may opt first for dollar in currency union Four Gulf nations entering the Middle East's first monetary union pact are expected to peg their single currency to the US dollar in the first phase of the historic project but might opt for a basket later, according to analysts. Saudi Arabia, Kuwait, Qatar and Bahrain, members of the six-nation Gulf Co-operation Council (GCC), have kept the world guessing on what type of currency they would adopt for their monetary union, which was ratified by their heads of state at their annual summit in Kuwait in mid-December.
What Will the New World Reserve Currency Regime Be? The deterioration of the dollar reserve currency regime is obvious. As we have forecast, the world will look to some variation of the IMF's Special Drawing Rights as an eventual replacement for the US dollar. Therefore, the recomposition of the SDR next year will become a lightning rod for the global stresses created by an increasingly unstable and impractical system of global trade.
Concerns grow over sovereign debt risk Sovereign debt risk is emerging as an important concern for senior bankers, risk consultants and auditors following financial woes in Dubai and Greece. After two years of worrying about mortgage and corporate risk, attention is now shifting to managing the risk of country defaults and bankruptcies of heavily indebted regional governments and city administrations, say bankers. Bankers at some large institutions are discussing whether they need to make provisions for sovereign risks in the same way they now set aside reserves to cover losses from corporate or emerging market risks.
Wen dismisses currency pressure Wen Jiabao, China’s premier, has said Beijing would not give in to foreign demands for its currency to strengthen, taking an increasingly defiant tone amid mounting international pressure. In an interview published by the Xinhua news agency on Sunday, Mr Wen said some of the demands for China to let its currency appreciate were an effort to contain the country’s development. “We will not yield to any pressure of any form forcing us to appreciate. As I have told my foreign friends, on one hand, you are asking for the renminbi to appreciate, and on the other hand, you are taking all kinds of protectionist measures,” he said.
A Way to Share in a Nation’s Growth It's Time For Governments To Issue Stock Instead Of Just Borrowing CORPORATIONS raise money by issuing both debt and equity, the latter giving investors an implicit share in future profits. Governments should do something like this, too, and not just rely on debt. Borrowing a concept from corporate finance, governments could sell a new type of security that commits them to paying shares in national “profit,” as measured by gross domestic product.
US treasury bonds a Ponzi scheme waiting to crash It is really no secret that US treasuries have become the biggest Ponzi scheme in global financial history. In a Ponzi scheme new buyers’ money is used to pay out redemptions until the new buyers dry up and the whole thing crashes. For US treasuries the buyers are now waning. The most recent evidence points to the Fed as the main buyer of these bonds last year, with the Chinese second in line and then the banks.
Treasury Yield Curve Steepens to Record on Debt Demand Concern Treasuries fell, with the difference in yields between 2- and 10-year notes widening to a record amount, as investors bet the U.S. recovery will fuel inflation and reduce demand at the government’s debt auctions. The 10-year note’s yield climbed to the highest level in four months as reports showed increases in sales of existing homes and orders for durable goods. The U.S. will sell a record- tying $118 billion of 2-, 5- and 7-year notes next week.
What Iceberg? Just Glide to the Next Boardroom YOU might think that board members overseeing businesses that cratered in the credit crisis would be disqualified from serving as directors at other public companies. You would, however, be wrong. Directors who were supposedly minding the store as disaster struck at companies like Countrywide Financial, Washington Mutual or Fannie Mae have not all been banished from other boardrooms. In many cases, directors just seem to skate away from company woes that occurred on their watch.
The Yield Curve Is Signaling Bigger Growth What’s a yield curve, and why is it so important? Well, the curve itself measures Treasury interest rates, by maturity, from 91-day T-bills all the way out to 30-year bonds. It’s the difference between the long rates and the short rates that tells a key story about the future of the economy. When the curve is wide and upward sloping, as it is today, it tells us that the economic future is good. When the curve is upside down, or inverted, with short rates above long rates, it tells us that something is amiss — such as a credit crunch and a recession.
U.S. rate hikes in 2010? Plausible, but not a given Wall Street's raging bulls may be getting ahead of themselves. From the first inklings of U.S. economic growth after the deepest recession since the 1930s, some investors have extrapolated a robust expansion that will force the U.S. Federal Reserve to raise interest rates in the second half of next year. Their reasoning, based on the notion that companies overreacted to last year's epic financial meltdown by cutting staff and production too sharply, has some merit.
Senate OKs rise in debt limit to $12.4 trillion The Senate voted Thursday to raise the ceiling on the government debt to $12.4 trillion, a massive increase over the current limit and a political problem that President Obama has promised to address next year.
Schumer Urges Wall Street Banks to ‘Get That Money Out There’ New York Senator Charles Schumer warned Wall Street firms to “live up to your responsibilities” and increase lending, particularly to small businesses, while showing restraint on executives’ bonuses. “Get that money out there,” Schumer said in an interview Dec. 23 on Bloomberg Television’s “Political Capital with Al Hunt,” airing this weekend. Banks should make sure the bonuses aren’t “excessive” and are based on merit, Schumer said. The position of firms such as Goldman Sachs Group Inc. that they didn’t need the government’s help to survive “is just false,” he said.
Here's The Secret Reason We Eliminated The Bailout Caps On Fannie And Freddie On Christmas Eve, when the news was assured of getting no coverage whatsoever, The White House announced that it had eliminated the maximum bailout cap for Fannie Mae (FNM) and Freddie (FRE). As some observers have pointed out, all the move really did was formalize what everyone has figured for decades, that the two zombie GSEs were truly organs of the federal government, and that their debts would be backed up ad infinitum. So, why the move, and why then?
U.S. Move to Cover Fannie, Freddie Losses Stirs Controversy The Obama administration's decision to cover an unlimited amount of losses at the mortgage-finance giants Fannie Mae and Freddie Mac over the next three years stirred controversy over the holiday. The Treasury announced Thursday it was removing the caps that limited the amount of available capital to the companies to $200 billion each. Unlimited access to bailout funds through 2012 was "necessary for preserving the continued strength and stability of the mortgage market," the Treasury said. Fannie and Freddie purchase or guarantee most U.S. home mortgages and have run up huge losses stemming from the worst wave of defaults since the 1930s.
Commercial Real Estate Holders Decide to Walk Away: The Continuing Double Standard from the Banking Industry. Debt Ceiling Raised to $12.4 Trillion Making Room for more Bailouts. There will be many new financial stories in 2010 but one that is certainly to garner much attention is the implosion of the commercial real estate market. A $3.5 trillion market that has taken it on the chin alongside the residential real estate market. The commercial real estate debacle usually follows a similar pattern. Residential real estate pulls back followed by commercial real estate. But in this massive decade long real estate bubble commercial real estate debt ballooned into uncharted territory. The bust is going to be deep and has no parallel in history just like the housing bubble bursting. Yet the U.S. Treasury and Federal Reserve have already had backroom talks about coming out with a “Plan C” to bailout this segment of the American economy.
Bailed Out Freddie Mac Says Mortgages Will Be More Expensive Showing once again that the path to living in a greener and more energy efficient world is fraught with difficult choices and unexpected consequences, the New York Times tells the story of rare-earth mining in China. Many green technologies rely on one or more of the seventeen rare-earth elements that come almost entirely from China. The mines are dangerous and wreak environmental havoc on the surrounding area, even as they yield “miracle ingredients” without which some green products couldn’t exist. What’s worse, the Chinese mining industry is controlled by gangs, the paper reports. However, it was a Chinese government ministry that threatened this year to stop all export of raw materials and require Western countries to buy finished products. That plan was quickly shouted down, but by no means are the issues around rare-earth mining resolved. One executive whose company buys rare-earths said about the mining practices, “we can’t [save the world] and leave a product that is glowing in the dark somewhere else, killing people.”
Homeownership in U.S. May Decrease, New York Fed Study Finds The rate of home ownership in the U.S. may fall in coming years as households rebuild equity wiped out by the worst slump since the Great Depression, according to a study by economists at the Federal Reserve Bank of New York. “The official home ownership rate will likely experience significant downward pressure in the coming years,” Andrew Haughwout, Richard Peach and Joseph Tracy wrote in a paper posted on the bank’s Web site. Owners whose mortgages are larger than the properties are worth “very likely will convert officially to renters,” assuming prices don’t climb in the next several years, they said.
Retailers Shift Focus to Post-Holiday Deals to Lure Buyers Post-Christmas Discounts With Sales Forecast to Decline 1% U.S. retailers extended discounts on computers, toys and clothes beyond Christmas to lure consumers who held out for lower prices and have gift cards to redeem. Toys “R” Us Inc. shoppers who buy a Nintendo Wii video game can buy a second game for half price. Target Corp. offered a set of six wine glasses for $8.98, down from $17.99 and reduced the price of a cotton-blend argyle women’s sweater to $17.50 from $25.
Gift Cards Are Retailers' Last Chance for a Happy Holiday The books are closed on the holiday shopping season, and researchers from ComScore to the National Retail Federation are adding up the final numbers, which will probably start to trickle out this week. Based on the figures through last weekend, sales in bricks-and-mortar stores might be up 1% from last year -- or down 1%. E-commerce sales, on the other hand, appear to have been higher by as much as 4%. But the online numbers may not be much comfort to the big store chains because cyber sales account for only a small fraction of their total revenue.
Frequently Asked Questions about ObamaCare Moon bats who voted for Barack Obama are obviously delighted that the U.S. Senate passed ObamaCare on the morn of Christmas Eve. However, many are confused and do not realize that the House and Senate must reconcile any differences before a final bill can be sent to the president. Others are not misinformed as to the effective dates and coverage terms. The following list of Frequently Asked Questions (FAQs) is provided as a public service to help the DNC provide answers to anxious voters…
Pelosi Asked Where Constitution Grants Congress Authority to Mandate Purchase of Health Insurance
House backers of public insurance option may yield Some House supporters of public health insurance plan seem resigned to giving it up in talks Two House Democrats who favor a government insurance plan, a central element of health care legislation passed in their chamber, acknowledged Sunday it might have to be sacrificed as negotiators work out a final agreement with the Senate. Rep. James Clyburn of South Carolina, the No. 3 Democrat in the House and one who had appealed to President Barack Obama not to yield on the public plan, set out conditions for yielding himself. Asked during rounds on the Sunday news shows whether he could vote for a final bill that does not embrace a public plan, Clyburn said: "Yes, sir, I can."
It's Not Socialism. It's Communism. If you felt a frisson of fear on news that the Senate had passed Obamacare the day before Christmas, then you now know what it was and is like to live in a dictatorship. The voice of the People was ignored in a demonstration of raw political power. There was a time when Americans took Communism seriously. It challenged us in the form of the Soviet Union and we witnessed its takeover of China. In Europe, uprisings against Soviet rule were crushed in East Germany in 1953, Hungary in 1956, Czechoslovakia in 1968, and Poland in the 1980s gave proof that only oppression can sustain this failed economic and political system. President Reagan gave voice to it when he called the Soviet Union an “evil empire.”
Everyone's Defaulting, Why Don't You? Strategic defaults—the phenomenon of people who could continue to make payments on the mortgages on their homes deciding to walk away from their obligations—are rising. According to the Wall Street Journal, strategic defaults are likely to exceed 1 million in 2009. This is making some worry about the very future of capitalism. Georgetown University business ethics professor George Brenkert told the Journal that borrowers who can afford to stay current are morally required to do so, and that were Americans to conclude they could just walk away from obligations, it would be disastrous. Mortgage Bankers Association CEO John Courson wondered about "the message they will send to their family and their kids and their friends?" Blogger Megan McArdle expressed disdain for people who chose to indulge themselves on consumer goods and services while not keeping current with their mortgages.
Obama urges review of terror watch-list President Barack Obama on Sunday ordered an urgent review of how US authorities use terrorist watch-lists to foil attacks on US targets after a Nigerian tried to destroy a transatlantic passenger aircraft with an explosive device he smuggled on board. Umar Farouk Abdulmutallab, 23, undergoing treatment for burns sustained in Friday’s abortive attempt on a flight from Amsterdam to Detroit, figured on a US database of people with suspected terrorist connections but had not been added to a 4,000-name no-fly list. He has been charged with trying to blow up the airliner as it was coming in to land.
Spy chiefs struggle to counter threat The revelation that a 23-year-old Nigerian accused of trying to blow up an aircraft in the US was placed on a watchlist and yet still was able to board a flight to the US is a stark reminder of the challenge facing intelligence agencies in combating terrorism. In recent years, intelligence chiefs in the US and Britain had appeared increasingly confident they had a better grip on the Islamist terrorist threat – and a far better oversight than they did a decade ago of potential jihadist attackers. Yet the case of Umar Farouk Abdulmutallab is a reminder of how easily potential terrorists can still slip under the radar.
Northwest Bomb Plot Planned by al Qaeda in Yemen Officials Say Bomb Materials Sewn Into Suspect's Underwear by Top Terror Bomb Maker The plot to blow up an American passenger jet over Detroit was organized and launched by al Qaeda leaders in Yemen who apparently sewed bomb materials into the suspect's underwear before sending him on his mission, federal authorities tell ABC News. Investigators say the suspect had more than 80 grams of PETN, a compound related to nitro-glycerin used by the military. The so-called shoe bomber, Richard Reid, had only about 50 grams kin his failed attempt in 2001 to blow up a U.S.-bound jet. Yesterday's bomb failed because the detonator may have been too small or was not in "proper contact" with the explosive material, investigators told ABC News.
Wealthy, quiet, unassuming: the Christmas Day bomb suspect The inside story of the privileged student who embraced al-Qa'ida and tried to blow a transatlantic jet out of the sky - and the lessons for us all With his wealth, privilege and education at one of Britain's leading universities, Abdul Farouk Abdulmutallab had the world at his feet – able to choose from a range of futures in which to make his mark on the world. Instead, the son of one of Nigeria's most important figures opted to make his impact in a very different way – by detonating 80g of explosives sewn into his underpants, and trying to destroy a passenger jet as it came in to land at Detroit Airport on Christmas Day.
25 Brits in jet bomb plots COPS fear that 25 British-born Muslims are plotting to bomb Western airliners. The fanatics, in five groups, are now training at secret terror camps in Yemen. It was there London-educated Umar Abdulmutallab, 23, prepared for his Christmas Day bid to blow up a US jet. The British extremists in Yemen are in their early 20s and from Bradford, Luton and Leytonstone, East London. They are due to return to the UK early in 2010 and will then await internet instructions from al-Qaeda on when to strike. A Scotland Yard source said: "The great fear is Abdulmutallab is the first of many ready to attack planes and kill tens of thousands.
BREAKING NEWS! Iran WAR LOOMING!
Iraqi and Iranian forces stand off in oil well row Iraqi and Iranian forces are dug in on either side of a disputed inactive oil well in the sensitive border area, with Iraqis vowing to fight if necessary to fend off another occupation of the well by Iranian soldiers. Iraqi troops say they will defend the well, where Iranian troops raised a flag for several days this month. It is unclear how many troops are involved in the stand-off, but as many as 30 lightly armed Iraqi troops usually occupy border outposts in sensitive areas, and up to 10 in other areas. Some 11 Iranian soldiers are stationed near the disputed well.
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