Dec Hat Trick Letter "Extreme Warnings" (very very good)
EXTREME WARNINGS FOR EXTREME TIMES
◄$$$ THE WORLD HAS A PLETHORA OF POTENTIAL DISASTERS LOOMING. SO MANY ARE ON THE EDGE OF OCCURRENCE, WITH TRIGGERS AVAILABLE IN NUMEROUS ARENAS. WATCH FOR NUMEROUS POWERFUL EVENTS, WHICH MIGHT NOT WAIT FOR THE NEW YEAR. HERE IS MY LIST OF POTENTIAL DISASTERS, NOT PRESENTED AS FORECASTS, BUT RATHER AS A LIST TO BEWARE OF FOR NASTY ERUPTIONS. $$$
This matter cannot wait for a January issue since too important and seeminly imminent. So many risky-filled situations, more than at any time in my entire memories. A plethora of potential disasters looms. The triggers are of many types, some known with events from gradual lost control by architects, some from developed breakdown that hits a threshold, others from decisions by desperate or frustrated nations to take action, others from the great unknown behind the curtains and in the basements. The list is not entirely of my own making, but rather assembled from a starting point from the Business Insider, augmented by a very well connected enlightened contact, with a few others the result of ongoing conversations with key colleagues. They are not listed in any order of likelihood, since they are all very much at risk of occurrence, and integrally interconnected to a frightening degree. Each would heap tremendous damage, disruption, and devastation, if it occurred. One should note that if one or two events occur, then others might occur with domino effect from the chain reaction of chaos and opportunity. The effect on the gold price from the initial events (unclear which two or three come first) would be uncertain, but then followed by a tremendously powerful upsurge in price. See the Business Insider article for other ideas and forecasts (CLICK HERE).
Bear in mind that my August warning of the
>>Saudi Arabian royal family loses it grip over the Islamic Fundamentalists and is replaced. Scores of old royals escape to Spain and Los Angeles, with hundreds of billion$ in assets, dragging up memories of the Shah of Iran and his escape, only the number is greater and the total absconded national wealth is much greater. The Wahabbists make up the font of radical Islam, then in control of the remaining oil fields and new wealth. Disruptions and instability spread across the entire
>>The actual 911 Story comes out, with the full story of US Security Organizations and USMilitary responsibility, including a significant role for a certain key small nation ally. The story hits the
CRITICAL INDIVIDUAL ITEMS
◄$$$ CLIMATE-GATE HAS ERUPTED, JUST ANOTHER FRAUD PERPETRATED BY THE POWERZ, TO SCAM MORE BILLION$ IN THE USUAL WAY WITH GOVERNMENT HELP. THE SO-CALLED CAP & TRADE INITIATIVE IS JUST A SCAM TO INSTITUTE TAXES, TO FAVOR CERTAIN CORPORATIONS, AFTER THE MORTGAGE FRAUD CHAPTER RAN ITS FULL COURSE WITH TARP PAYOFFS. $$$
Rex Murphy speaks about Climategate and its exposed fraud. See his YouTube video (CLICK HERE). Glenn Beck of FoxNews speaks out exposing ClimateGate, the man-made global warming climate scam that is fast becoming an proven conspiracy in partial view. The major media in no way exposes the truth on this story, as only the internet news sources do. See his YouTube video (CLICK HERE). The climate change scandal deepens as a British Broadcast Corp expert claims he was sent leaked emails of a seriously undermines the political movement and its integrity. See his Daily Mail article (CLICK HERE). Some overlap might exist, but Alex Jones paints the billboard in his unique style concerning the same emails that expose the scam. In his words, he says "THE E-MAILS ARE REAL!!!" Some hackers hacked into a United Nations database where the main climate global warming analysts and proponents email each other. They discussed how to suppress the truth that the earth is cooling. Jones regards this to be a major scandal exposing the One World Order plan. See the YouTube video (CLICK HERE). The UK Guardian runs with the same story, and puts its own imprint on it, like a seal of approval toward the legitimacy of the story itself in exposing the fraud. Global warming is rigged too? They wrote, "the damning email that confirms that the entire science of global warming is indeed a scam." See the UK Guardian article (CLICK HERE).
The woman who invented Credit Default Swap contracts supposedly is one of the key architects of Carbon Derivatives movement, the new scam after the last scam. These contracts appear to be at the very
◄$$$ THE CAP & TRADE ACT WILL SOON AFFECT ALL
If people believe they will not be affected by this horrible imposition by Big Govt, think again. Their heavy hand reaches toward houses owned by citizens by means of compliance for its energy equipment. The USCongress awaits passage by the Senate after the House approved HR 2454, otherwise called the Cap & Trade Act. It contains unbelievable hidden taxes and meddlesome strictures! Beginning one year after enactment of the American Clean Energy & Security Act of 2009, a home cannot be sold unless it is retro-fitted to comply with the energy and water efficiency standards described within this Act. The bill calls for the largest tax increase ever experienced. The Congressional Budget Office estimates that in just a few years the average cost to every family of four will be $6800 to retrofit the home toward efficient level compliance, without exclusions. Included are tax refunds for the lower classes, even if they pay no taxes. One year from now, people will NOT be able to sell their houses, unless major upgrades are made to the homes, even pre-fabricated homes (mobile homes). Essentially, sale of a home requires the certification of the Environmental Protection Agency administrator. That sounds like another Czar sitting on the US Politburo. People who cannot see the creeping Communism in the
To obtain certification, the home must be assessed by the USGovt, then given a list of modifications so as to meet energy efficiency requirements. The home must then have installed the modifications under the retrofit provisions of the Cap & Trade Act. Then the home must be measured for its energy efficiency, and display a Label bearing its efficiency rating. In order to sell the home, the rating must be above a certain level determined by the EPA. The EPA administrator is authorized to raise the standards every year, even above the automatic energy efficiency increases built into the Act. It contains annual required increases in energy efficiency for private and commercial residences and buildings. Within five years, 90% of all residential homes in the
The story grows more bizarre. The rising standards will be really hard and costly to meet in a few years. The Act allows the USGovt to give sizeable grants to comply with the retrofit program requirements if the homes already meet certain energy efficiency levels. But the States can set additional requirements on who qualifies to receive the grants. However, the grant requirements are expected to impose a limit of $50k annual income and a limit of $125k home value. See the USGovt Tracking website article (CLICK HERE). Now that is Change You Can Believe In, courtesy of the Obamanation Admin. This entire lunatic imposition is reason enough for States to exert their Tenth Amendment rights and secede from the
◄$$$ QUIETLY A STORM IS BUILDING IN THE SOUTHERN STATE OF GEORGIA, ONE THAT MIGHT BE MORE EFFECTIVE THAN ANY TENTH AMENDMENT RESPONSE TO RESTORE STATE SOVEREIGN POWER. THE MOVEMENT IS DIRECTED AT RESTORING USAGE OF GOLD AS MONEY, AND SUPPLANTING THE CORRUPTED USDOLLAR. THE STATE BANKING LOBBY HAS BEEN WEAKENED BY THE HORRIBLE SKEIN OF FAILED BANKS. $$$
The following is based upon communication with Aaron Krowne in
The Constitutional Tender Act in
The USGovt announced last week that 37.2 million Americans are currently receiving food stamps! That equates to 12% of the population in the
What follows comes from a contact who has taken the
"I have been following the
US Military planes were the ones spreading the clouds, flown by
See the following articles for personal research or casual reading about this horror, not at all of natural origin. My view is that
The strict translation is a warning from
Planned is a Turkish head of state visit to WashingtonDC, which Al Safir inquired about. To which, Edogan said, "It would not be strange to bring up
◄$$$ MURDER COVERUP DEMANDS AN INVESTIGATION IN
Dr David Kelly was found dead in the woods near his Oxfordshire home after he went out for a walk. His wrist had been slashed. The incident occurred in 2003, days after he was exposed as the source of a controversial BBC story on the
CORRUPT WARS WITHOUT END
◄$$$ THE AFGHAN WAR IS BEING RECOGNIZED IN THE MAINSTREAM FRINGE AS A WAR CENTERED UPON NARCOTICS, A WAR CONDUCTED BY THE U.S. SECURITY ORGANIZATION, BUT WITHOUT ANY PRESS FOLLOWUP COVERAGE OF THAT PRINCIPAL ASPECT. COSTS ARE SHARED WITH USGOVT, PROFITS KEPT BY SYNDICATE. ALLIES ARE AWARE OF THE AMERICAN ROLE, EVEN THE ABUSE OF THEIR LANDS IN SHIPPING ROUTES. THIS IS A GRAND BADGE OF SHAME, THAT IN MY VIEW PAINTS THE UNITED STATES AS A ROGUE NATION. $$$
The cat was let out of the bag on this story, hardly new, by Harpers Weekly recently. Almost nowhere in the mainnstream
"If you are looking for the chief kingpin in the
An article in the current issue of Harpers Weekly magazine explores the inner workings of the drug infested
The alliance was forged by American forces during the
My comments follow. A connection exists between the Afghan War and the Iraqi War. Drug money from large transactions are directed through the Bank of Baghdad in
◄$$$ THE UZBEK AMBASSADOR FROM
Craig Murray is the former
There is a sense in which
◄$$$ ETHICAL BREAKDOWN IN THE UNITED STATES IS REACHING EPIDEMIC PROPORTIONS. FINANCIAL FRAUD IN
At a forum that addressed businessmen in
◄$$$ OSAMA BIN LADEN HAS BEEN DEAD SINCE DECEMBER 2001, SO SAY USMILITARY VETERANS. A SHAM OF FRAUD, DECEIT, BETRAYAL, AND TREASON PERVADES THE NATION. THIS ACCOUNT IS COMPREHENSIVE AND AS EXTREMELY CRITICAL AS IT IS SURPRISING. COULD THE USMILITARY BE IN THE EARLY PHASE OF DEEP DIVISION? $$$
First a preface. My personal source shared his theory that Osama has been dead since in summer 2005. Ahmad was a business colleague of mine, a database software expert from
What follows is entirely from veteran USMilitary service men, who are unhappy about the entire war. Let them tell the story, as editor and commentator. They headline the story as declaring years of deceit, whereby key leaders have long known Osama Bin Laden to be dead, widely understood. Furthermore in General McChrystal's report, and in Obama's speech to justify troop buildups, Osama is never mentioned. The men call the 'Hunt for Bin Laden' a national shame. My label is a Scarlet Letter of Shame. The author calls the lies and the extravaganza in war an exercise in treason, calling for justice and prosecutions. They point out the great harm done to
Veterans Today Senior Editor Gordon Duff is a Marine combat veteran and regular contributor on political and social issues. His story follows. See the Veterans Today article (CLICK HERE).
"Conservative commentator, former Marine Colonel Bob Pappas has been saying for years that bin Laden died at Tora Bora and that Senator Kerry's claim that bin Laden escaped with Bush help was a lie. Now we know that Pappas was correct. The embarrassment of having Secretary of State Clinton talk about bin Laden in
In 66 pages, General Stanley McChrystal never mentions Osama bin Laden. Everything is 'Mullah Omar' now. In his talk at
What kind of man was Osama bin Laden? This one time American ally against
This is on the public record, public in every free country except ours. We instead showed films made by paid actors, made up to look somewhat similar to bin Laden, actors who contradicted bin Ladens very public statements, actors pretending to be bin Laden long after bin Laden's death. These were done to help justify spending, repressive laws, torture, and simple thievery. For years, we attacked the government of
How does the death of bin Laden and the defeat and dismemberment of Al Qaeda impact the intelligence assessments, partially based on, not only bin Laden but Al Qaeda activity in Iraq that not only never happened but was now known to have been unable to happen? How many Pentagon Pundits, the retired officers who sold their honor to send us to war for what is now known to be domestic political dirty tricks and not national security, are culpable in these crimes? I do not always agree with Colonel Pappas on things. I believe his politics overrule his judgment at times. However, we totally agree on bin Laden, but simply disagree with what it means. To me lying and sending men to their deaths based on lies is treason. Falsifying military intelligence and spending billions on unnecessary military operations for political reasons is an abomination. Consider this, giving billions in contracts to GOP friends who fill campaign coffers, and doing so based on falsified intelligence is insane. This was done for years. We spent eight years chasing a dead man, spending billions, sending FBI agents, the CIA, Navy Seals, Marine Force Recon, Special Forces, many to their deaths, as part of a political campaign to justify running America into debt, enriching a pack of political cronies and war profiteers and to puff up a pack of Pentagon peacocks and their Whitehouse draft dodging bosses.
Every time Bush, Cheney, and Rumsfeld stood before troops and talked about hunting down the dead bin Laden, it was a dishonor. Lying to men and women who put their lives on the line is not a joke. Who is going to answer to the families of those who died for the politics and profit tied to the Hunt for Bin Laden?" WOW!!!
US FACES THIRD WORLD PROSPECTS
◄$$$ THE UNITED STATES INCREASINGLY RESEMBLES THIRD WORLD. THE VIEWPOINT HAS BEGUN TO SPREAD. THE TELL-TALE SIGNS ARE GROWING WORSE AND MORE OBVIOUS. $$$
Ximena Ortiz is a former executive editor of The National Interest and bureau chief for the Associated Press & Dow Jones in
"A militaristic and corrupt
As in so many collapsed countries, an increasingly large portion of American wealth goes toward debt. Infrastructure sags. Only industries favored by the government thrive. The middle class shrinks as it is squeezed to fund programs that keep the wealthy comfortable and the poor from rioting. The only difference is that the
◄$$$ MY TRACKING OF THIRD WORLD PROSPECTS HAS BEEN DILIGENT. IT HAS SPANNED AT LEAST THREE YEARS IN TIME. TRAGICALLY, MY LIST OF TRAITS GROWS EACH YEAR. MY DEEP SADNESS GROWS ALSO, AS THE NATIONAL TRAGEDY CONTINUES TO UNFOLD. $$$
Here are my signature traits listed for the
FDIC INSOLVENT CONDITION
◄$$$ MORE BANKS SHUT DOWN AFTER THE THANKSGIVING
The Buckhead Community Bank (
The overall total loss to the FDIC was $2.6 billion. The Wall Street Journal has chronicled the AmTrust extended demise, including how politicians in Cleveland and WashingtonDC interceded with regulators to grant the thrift more time, which increased the ultimate cost to the FDIC. This is a common theme in the last year, one not fully examined by the analysts. The FDIC drags the process out, hoping for recovery, since fully drained of DIFunds. For whatever reason in delay, the FDIC cost of bank closures is much greater than if responsibly shut down at a much earlier time. For a complete list of failed banks in the year 2009, see the ProPublica tally (CLICK HERE). See the full story in the ProPublica article (CLICK HERE).
Last minute update... Three banks failed Friday night, bringing the annual national tally to 133. This weekend toll took an additional $252.1 million bite out of the Deposit Insurance Fund. The seizures were not concentrated, and no more to
◄$$$ THE F.D.I.C. MIGHT BE PHASED OUT BEFORE LONG, DEFUNCT AND BROKEN, ACCORDING TO CHAPMAN SOURCES. AN INTRIGUING AND DEVIOUS PLOY MIGHT BE IN THE OFFING. THE F.D.I.C. MIGHT SHUT DOWN, LEAVING MANY BANKS EXPOSED ON DEPOSITS. MONEY MARKET FUNDS HAVE BEEN LEFT EXPOSED SINCE SEPTEMBER. THEY MIGHT BE THEN COMPELLED TO SWITCH DEPOSITOR FUNDS INTO USTREASURY BONDS SINCE NO LONGER INSURED. THE BANKS WOULD NOT WISH TO OPERATE WITH EXPOSURE. IT IS A COMMUNIST PLAN THAT FITS WITH MY BANK CONSOLIDATION PLAN. THE VALUE OF SMALLER DISTRESSED BANKS IS FAST APPROACHING ZERO. $$$
Bob Chapman wrote: "We believe the Fed will opt for letting the system run into hyper-inflation. The FDIC not only is $8.2 billion in the hole, but they have secretly borrowed an additional $80 billion from the Treasury. We have also been told that the FDIC is lying about the banks in trouble. The number in eminent danger are not 552, but a massive 2035. The cost of bailing these banks out would be $800 billion to $1 trillion. That means 2500 could be closed in year 2010. Now get this, the FDIC is going to be collapsed before the end of 2010, which means no more deposit insurance. This follows the 9/18/2009 end of government guarantees on money market funds. Both will force deposits into US government bonds and agency bonds in an attempt to save the system. This will strip small and medium sized banks and force them into shutting down or being absorbed. This means you have to get your money out of banks, especially Certificates of Deposit. We repeat get your cash values out of life insurance policies and annuities... Major and semi-major banks are being told to obtain secure storage for new currency dollars. They expect official devaluation by the end of the year. We expect three old dollars to be traded for one new dollar. The alternative is gold and silver coins and shares." These comments come from Bob Chapman of the Intl Forecaster, who posted an article on Market Oracle (CLICK HERE).
The smothered coverage in failed and failing banks is certain to push FDIC losses higher at a time when its insurance fund to shield depositors is in deficit territory for the second time in its history. Kevin Petrasic is a lawyer at Paul,
◄$$$ CHAPMAN IS ONTO SOMETHING REAL AND POWERFUL. MY PERCEPTIONS ON THE REQUIRED FORCEFUL USGOVT IMPOSITIONS TO MAINTAIN THE USTREASURY BUBBLE GO FURTHER. MY FORECAST IS THAT A PLAN WILL BE HATCHED TO COPY THE
What follows is my added interpretation. My forecast calls for numerous required forceful measures imposed to sustain the USTreasury bubble along the lines of Chapman but much further. The Federal Deposit Insurance Corp is underwater in the billion$. It cannot access its $500 billion line of credit with the USDept Treasury, because of the federal deficit limit. Obama and Congress are playing 'chicken' (as one subscriber puts it) with the USGovt budget deficit as they try to pass their Health Care Reform Bill. My view is that the Chapman story might be true, since it fits with so many stress factors. The big banks want to eliminate competition. They permit the other banks to suffer the consequences of the marketplace without benefit of USGovt aid, as a full embargo as Wall Street takes all the aid. The smaller banks, many of which are not all that small, still operate with loan portfolios and depository assets. The biggest banks already have the majority of their reserves in US Federal Reserve accounts, earning interest in the form of USTreasury Bonds. This is the ignored hint on the future plan. If smaller banks are required to switch from CDs to USTBonds, then the game is over and the Bank Consolidation Plan has been completed, but with a twist. The USFed and USDept Treasury would control the entire
The other factor satisfied by a switch of bank deposits to USTreasurys is the sustenance of the USTreasury bubble itself. The voracious appetites of bubbles must be fed, as assets are drawn like to a grand Black Hole in finance. USTBonds are hungry for funds, desperate for funds. The USDept Treasury has worked diligently to maintain the USTreasury bubble, by ordering all big bank TARP recipients to refrain from lending, and instead invest in USTBonds held in the USFed accounts earning interest. These funds are not aiding the USEconomy. Perhaps nothing can. In time, this mammoth USGovt sponsored bubble will require pure outright monetization in full open view. But until then, it will target savings, including pension funds. The USGovt will move to drain the savings from the entire
USTREASURY DEFAULT & DOWNGRADES
◄$$$ USTREASURY DEFAULT COULD OR SHOULD OCCUR, ACCORDING TO THE GREENSPAN-GUIDOTTI RULE. A LITTLE CITED GUIDELINE HAS BEEN RESURRECTED SUDDENLY AS RELEVANT. THE ISSUE IS RESERVES FORMALLY HELD BY THE USGOVT, WHICH ARE IN REALITY LOADED WITH EXAGGERATION. THE USGOVT HAS PRACTICALLY ZERO GOLD RESERVES IN REALITY. PORTER STANSBERRY WOULD NOT BE SURPRISED TO SEE A GOLD PRICE OF $10 THOUSAND PER OUNCE BY YEAR 2012, AS A CONSEQUENCE OF THE POTENTIAL USTREASURY DEFAULT COMES CENTER STAGE. $$$
The world of central bankers puts some significance on the Greenspan-Guidotti Rule, used as a theoretical basis for government debt default. It has been dusted off and put squarely on the center of conference tables. Experience of its application in the past has been with
Creditors are awakening to the prospect of never being repaid, let alone with interest. Funding costs soar when the alarm bells finally go off. The party is suddenly over, and bankruptcy remains as the lone option. That is bankruptcy for a nation. When governments go bankrupt, the credit market calls it a 'Default.' Currency analysts and traders determined have worked to accurately forecast when a country would default. Two well-known economists Alan Greenspan and Pablo Guidotti published the formula in a 1999 academic paper that remained a relative secret until recently. The formula is called the Greenspan-Guidotti rule.
The rule states: To avoid a default, countries should maintain hard currency reserves equal to at least 100% of their short-term foreign debt maturities. The world's largest money-management firm, PIMCO, explains the rule this way: "The minimum benchmark of reserves equal to at least 100% of short-term external debt is known as the Greenspan-Guidotti rule. Greenspan-Guidotti is perhaps the single concept of reserve adequacy that has the most adherents and empirical support." It is widely accepted in a textbook sense.
The principle behind the rule can be simply stated. If unable to pay off all foreign debts in the next 12 months, a nation stands as a terrible credit risk. Speculators proceed to target bonds and currency for the nation, forcing a run, thus rendering impossible the refinance of debt in rollover. A default is then assured. For the USGovt, according to the Greenspan-Guidotti criterion, a guaranteed default is highlighted. Next examine the tangible reserves held by the United States Govt. Like most official statistics, they contain a large dose of fiction to conceal the reality of extreme vulnerability and pilferage.
The USGovt holds gold, crude oil, and foreign currency in reserve. It claims 8133.5 metric tonnes of gold, which would rank it as the world's largest holder if true. But it is a total lie. At current values, the gold reserves would be worth in the neighborhood of $300 billion. The US Strategic Petroleum Reserve is indeed real, and shows a current total of 725 million barrels of crude oil. At current values, that is worth around $58 billion. Lastly, the USGovt holds $136 billion in foreign currency reserves, according to the IMF. In total the USGovt is in possession of $490 to $500 billion of reserves. The total in reserves pales by comparison to short-term foreign debt.
Next consider the short-term debt. According to the USDept Treasury, $2 trillion worth of debt will mature in the next 12 months. Long gone are the days of funding the national debt internally from savings and pension funds. Since 1985, the
The printing pre$$ is the logical alternative to finance the USGovt debt, in pure
A recent New York Times article repeated the same warnings about short-term debt versus reserves held by the USGovt. However, the author happened not to mention the Greenspan-Guidotti Rule, the secret of international speculators. The dynamics of the rule dictate a severe currency crisis within the next two years. The gold price will rise sharply during this anticipated crisis, one reason for its rise, and a main reason never cited by those who pretend to understand the gold market. For certain, the numbers have never been so large and dangerous. Porter Stansberry for one would not be surprised at all to see gold at $10,000 an ounce by 2012. See the Kitco article (CLICK HERE).
Now for a dose of reality. The USGovt has a big hidden problem. The
◄$$$ THE ECONOMIST WARNS OF A BROADER CONCERN OF GOVT DEBT ACROSS THE WORLD. THEY CALL IT THE NEXT BIG PROBLEM. KEEP FOCUS ON
The Economist magazine calls
At issue is the nature of the Dubai World debt. It was not technically backed by any government guarantee, but it was widely regarded as such by investors, who made scant distinction between the Dubai Govt and a company wholly owned by sheiks in power. The repudiation made by
◄$$$ THE LIST OF POTENTIAL GOVERNMENT DEBT DEFAULT CANDIDATES IS LONG AND SPANS THE GLOBE. THE PROCESS HAS ALREADY STARTED, WITH THE GOVERNMENTS OF
The ranking is largely irrelevant since they are all interconnected like so many dominoes. A strong banker contact provided a ranking as an exercise, shared for our benefit. He listed the candidates for government debt default as 1) Dubai, 2) Ukraine, 3) United States, 4) Baltic States, 5) Eastern Europe, 6) United Kingdom, 7) PIGS nations with Greece first, 8) France, 9) Rest of the UAE, Kuwait, Qatar, Saudi Arabia, 10) the Stans of East Asia, 11) Argentina, 12) Mexico, 13) Most European Union countries (except Germany, Benelux, Austria, Finland). THINK DOMINOES, WITH THE UNITED STATES PROVIDING THE LOUDEST BANG, EVEN FROM THE THREAT PROSPECT.
The most important government debt default is by far the
◄$$$ MOODY DENIES A DEBT DOWNGRADE FOR THE UNITED STATES OR
A public announcement of default risk denial is a confirmation of heightened risk, or else why make it? Moodys Investor Service all but declared a debt downgrade for the
Next for their bizarre definitions at Moodys. One should recall less bizarre definitions for Wall Street firms over a year ago. Curiously, the
Dissent from a corner ruled by reality comes. Mark Schofield is head of interest rate strategy in
The cost of protecting
◄$$$ THE USGOVT HAS BEGUN THE PROCESS TO RAISE ITS DEBT LIMIT BY $1.8 TRILLION. THE DECISION HAS BEEN DELAYED FOR MONTHS. THE AMOUNT IS NOT ENOUGH TO AVOID A SIMILAR DECISION TO RAISE THE LIMIT IN LESS THAN TWO YEARS. OF COURSE, THE MILITARY BUDGET REMAINS SACRED, SINCE THAT IS A WING OF THE SYNDICATE IN CONTROL OF THE NATION. $$$
In a bold yearend tactical maneuver with some political risk, Democrats are prepared to raise the federal debt ceiling by $1.8 trillion before January, and thus avoid facing the issue again before 2010 elections. The amount is double what had been planned last spring in a budget resolution for the 2010 fiscal year. Look for unusual budget resolutions like the Gramm-Rudman deficit reduction bill 25 years ago. With concessions come demands. A bipartisan task force is already being assembled to generate votes in the next Congress toward deficit reduction steps now shunned by lawmakers. Its 18-member task force might possess immense leverage to force change if they can organize. My personal view is that the power of the economic recession will sidetrack any fiscal prudence from such a panel.
The eventual bill that approves a federal limit increase will also provide for the sacred military budget, the pending $636.4 billion Pentagon appropriations bill that includes $128.3 in contingency funds for military operations in