I just received this press release from Erich Deagostino, president of the newly formed Ulster County Young Republicans:
The Ulster county Young Republicans have successfully organized. A meeting was held on April 17 where bylaws where accepted and officers were elected. This marks the beginning to a new era for Ulster County Republicans, as we begin work to expand our party while simultaneously bringing in new energy and fresh perspectives. A Second meeting was held on May 15 where goals and events will be proposed.
The Ulster county Young Republican club will serve as a forum to help Young Republicans train to run for office, campaign, and help senior Republicans understand the ideas and perceptions of today’s youth and young adults. While giving students with conservative views a place of refuge from the corruption of our (single payer) education system.
The Ulster County Young Republicans will encourage young people in Ulster County to become involved in the political process by, assisting on campaigns, debating the issues that affect our community, giving of themselves to help move our community forward, involving themselves in our community to ensure good government, and helping to communicate the perspectives of the young to senior republicans. The Ulster County Young Republicans will not be a passive organization that looks in comfortable areas to grow. Instead, we will work proactively to target those often overlooked by the Republican Party and with each success set a documented example of how to expand the Republican Party in liberal regions of the nation and acting as a foot fold for national conservative organizations seeking to make progress in our region.
Friday, May 21, 2010
EU Can Learn from South Carolina
Ron Holland has another excellent blog on the Lew Rockwell site. Holland starts by noting:
"The state of South Carolina has been an independent republic and nation twice in history, first in March of 1776 and again in December of 1860. History here certainly shows how it is far easier to get into a political union than to get out again. In South Carolina, we have found that once in a voluntary union, the open door slams shut as political and monetary elites who benefit from this arrangement seldom give up their power to tax, inflate the currency, protect special interest monopoly rights and engage in mercantilism without fighting to retain their distant dictatorial controls."
Holland notes that just as the Civil War forced the South to be subjugated to the whims of the Federal Reserve Bank that was established 50 years later, so the European elite aims to force all of Europe to be subject to coercive, centralized banks and failed government institutions.
The solution to today's economic failures is DECENTRALIZATION, not centralization. Holland posts several wonderful quotes from Benjamin Franklin and Walter Williams. As he points out, the best run country in Europe, Switzerland, is a small country that itself is decentralized. Why aren't the Europeans emulating them instead of the failed federal government of the USA?
"The state of South Carolina has been an independent republic and nation twice in history, first in March of 1776 and again in December of 1860. History here certainly shows how it is far easier to get into a political union than to get out again. In South Carolina, we have found that once in a voluntary union, the open door slams shut as political and monetary elites who benefit from this arrangement seldom give up their power to tax, inflate the currency, protect special interest monopoly rights and engage in mercantilism without fighting to retain their distant dictatorial controls."
Holland notes that just as the Civil War forced the South to be subjugated to the whims of the Federal Reserve Bank that was established 50 years later, so the European elite aims to force all of Europe to be subject to coercive, centralized banks and failed government institutions.
The solution to today's economic failures is DECENTRALIZATION, not centralization. Holland posts several wonderful quotes from Benjamin Franklin and Walter Williams. As he points out, the best run country in Europe, Switzerland, is a small country that itself is decentralized. Why aren't the Europeans emulating them instead of the failed federal government of the USA?
Money Matters: Wall Street in Turmoil
Several pundits had been predicting a correction in the market averages and they seem to have been right. According to Morgan Stanley Smith Barney the Dow fell a hefty 376.36 points today and the S&P 500 fell an equally hefty 43. 46. After some more decline the market could well recover, and if you want to time this correction there still might be some life left in the post-2008 Fed bank credit expansion rally. Recall that the Fed tripled its bank credit on reserve with the nation's commercial banks in 2008. It is unclear how far the potential liquidity will expand the stock market or how inflationary it will ultimately be. I would be wary of playing the short term market decline and getting in in a big way, although a small bet should the Dow hit 9500 and stay there for a few days might be interesting.
The fact is that interest rates are now zero, and the Fed has no further slack to stimulate the markets. If it does, there could be a serious reaction from China and other overseas bond holders, who are seeing the value of their dollar-denominated assets decimated.
The Australian and Canadian dollars and a number of other currencies continue to fall. Chuck Butler of Everbank, which markets foreign currency denominated CDs, has an explanation. Writing on Kitco Butler writes that there have been rumors of China's economy crashing. A China crash would hurt commodity exporters like Australia and Canada. Thus, commodities may decline along with various currencies. This could well be a significant buying opportunity, say if gold falls below $900.
The current situation is a kind of self-contradiction The Fed has been printing, expanding the supply, of dollars. Yet demand has exceeded supply because of a "flight to safety." But the demand is short term, or else it relies on the assumption that Congress, the Fed and the President are reliable when it comes to economic self discipline. If you believe that then you feel comfortable with cash as a long term holding, but I don't. Nevertheless, for the short term the markets are keeping me in dollars. I am currently about 70% in dollars. My other asset holdings, stocks (14%), commodities (10%) and currency (6%), have all been falling this week.
Butler argues that rumors of a China crash have come and gone before, so the currency declines might be good plays as well. It is certainly nice to have a large share of cash right now, but I would not be optimistic about the future of the US dollar. Butler puts it well:
"Speaking of deficits... I was thinking last night that I've been blind to something that I should have seen a long time ago, since I talk about both of them all the time! The National Debt in the U.S. is nearing $13 Trillion dollars... But... It's really $19 Trillion... Where did the $6 Trillion come from? Ahhh, grasshopper, it even too me this long to figure this one out... You see... The debts of Fannie and Freddie total over $6 Trillion... And since these two were nationalized their debts are our debts now... And just because the Gov't doesn't count their debts with ours, from now on, I will...
"How are we ever going to pay back $19 Trillion? (Oh and that's not counting the unfunded liabilities of Social Sec., Medicare, and Medicaid) Higher taxes? That won't work folks... Gov't spending cuts? That would help, but going forward with all the baby boomers like me nearing retirement, the unfunded liabilities become "funded" and those alone will be more than tax receipts and spending cuts can cover!"
If there is a sizable market decline and then some stabilization, I'm going to move money into the markets. I don't think the final crash with capitulation that will end the secular bear market is near.
The fact is that interest rates are now zero, and the Fed has no further slack to stimulate the markets. If it does, there could be a serious reaction from China and other overseas bond holders, who are seeing the value of their dollar-denominated assets decimated.
The Australian and Canadian dollars and a number of other currencies continue to fall. Chuck Butler of Everbank, which markets foreign currency denominated CDs, has an explanation. Writing on Kitco Butler writes that there have been rumors of China's economy crashing. A China crash would hurt commodity exporters like Australia and Canada. Thus, commodities may decline along with various currencies. This could well be a significant buying opportunity, say if gold falls below $900.
The current situation is a kind of self-contradiction The Fed has been printing, expanding the supply, of dollars. Yet demand has exceeded supply because of a "flight to safety." But the demand is short term, or else it relies on the assumption that Congress, the Fed and the President are reliable when it comes to economic self discipline. If you believe that then you feel comfortable with cash as a long term holding, but I don't. Nevertheless, for the short term the markets are keeping me in dollars. I am currently about 70% in dollars. My other asset holdings, stocks (14%), commodities (10%) and currency (6%), have all been falling this week.
Butler argues that rumors of a China crash have come and gone before, so the currency declines might be good plays as well. It is certainly nice to have a large share of cash right now, but I would not be optimistic about the future of the US dollar. Butler puts it well:
"Speaking of deficits... I was thinking last night that I've been blind to something that I should have seen a long time ago, since I talk about both of them all the time! The National Debt in the U.S. is nearing $13 Trillion dollars... But... It's really $19 Trillion... Where did the $6 Trillion come from? Ahhh, grasshopper, it even too me this long to figure this one out... You see... The debts of Fannie and Freddie total over $6 Trillion... And since these two were nationalized their debts are our debts now... And just because the Gov't doesn't count their debts with ours, from now on, I will...
"How are we ever going to pay back $19 Trillion? (Oh and that's not counting the unfunded liabilities of Social Sec., Medicare, and Medicaid) Higher taxes? That won't work folks... Gov't spending cuts? That would help, but going forward with all the baby boomers like me nearing retirement, the unfunded liabilities become "funded" and those alone will be more than tax receipts and spending cuts can cover!"
If there is a sizable market decline and then some stabilization, I'm going to move money into the markets. I don't think the final crash with capitulation that will end the secular bear market is near.
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