Sunday, April 19, 2009

When Governors Get Upset With The Federal Government


Occasionally, I like to post in its entirety something that someone else has posted. Sometimes because it is exceptional; sometimes because I think it is exceptionally stupid. I believe this to be the former.

Things Break Apart

From the governor of Texas Rick Perry comes this shot across the bow.

"The federal government has become oppressive. I believe it’s become oppressive in its size, its intrusion into the lives of its citizens, and its interference with the affairs of our state. Millions of Texans just like yourselves that are tired of Washington, DC, trying to come down here and tell us how to run Texas. We think it’s time to draw the line in the sand and tell Washington that no longer are we going to accept their oppressive hand in the state of Texas. There is a point in time where you stand up and say, “Enough is enough,” and I think Americans and Texans especially have reached that point…

They’re sending Washington the message. I mean, we’re still part of the union down here in Texas, and our folks would like to keep it that way, but we see some things going on that are peculiar."

Please read that last line with due care.

We have received oceans of abuse here for reporting on the signs of the times, for using words and phrases like ‘civil war’ and ‘secession’ and ‘tyranny’ and ‘rebellion,’ and how these things threaten to visit this nation again. Now a governor has said the same thing. May I predict that he will not be the last to do so?

And as if to point a moral and adorn a tale, along comes a Homeland Security Assessment from Obama’s Department of Homeland Security. It defines something called ‘right wing extremism,’ a term it uses more than 40 times in the document. You are a possible ‘right wing extremist’ if: you like guns, if you are a veteran, if you are pro-life, if you believe in federalism, if you are conservative, if you are opposed to illegal immigration and so on. By the calculation of the Obama regime, Texas is a terrorist state and Governor Perry is a terrorist chieftain. I imagine that Perry will don a bathrobe, wear a keffiyeh and head to some mountain redoubt in Texas and issue recordings of “Death to America!”

Obama cozies up to North Korea and Iran—the real terror threats to this nation—but bares his fangs at American citizens. What that document really does is make a criminal and possible terrorist out of anyone who disagrees with Obama on anything under the sun. Nothing new here. All tyrants have done this.

It is scarcely possible to reason with this regime. All opposition is smeared, investigated, threatened. It matters not whether you are a private citizen or the head of a corporation. This government knows neither decency nor bounds. It plans to subsume unto itself every aspect of the American economy and political system. The Constitution has proved unable to stop this assault on liberty.

We have produced men in the past who knew how to deal with home grown tyrants. Jefferson and Madison in their Kentucky and Virginia Resolutions, and Southern Senator John C. Calhoun, believed that powers of the federal government would tend toward tyranny if left unchecked. They all supported states’ rights as laid out in the Constitution.

"The resolutions declared that the Constitution was a “compact.” That is, it was an agreement among the states. The resolutions claimed the federal government had no right to exercise powers not specifically delegated to it (and thus they advocated Strict Constructionism); should the federal government assume such powers, its acts under them would be void. Thus it was the right of the states to decide as to the constitutionality of such laws passed by Congress."

One of the rights of states is nullification.

"Nullification is a legal theory that a U.S. State has the right to nullify, or invalidate, any federal law which that state has deemed unconstitutional. The theory is based on a view that the sovereign States formed the Union, and as creators of the compact hold final authority regarding the limits of the power of the central government. Under this, the compact theory, the States and not the Federal Bench are the ultimate interpreters of the extent of the national Government’s power. A more extreme assertion of state sovereignty than nullification is the related action of secession, by which a state terminates its political affiliation with the Union."

Jefferson, Madison and Calhoun all asserted this prerogative of the states. Thus they have become, like Governor Perry, more of the Obama regime’s ‘right wing extremists.’

Our nation is lurching toward a Constitutional crisis that will either be resolved peacefully or not. If not, there will be civil war, secession or military intervention—or all three. This regime will not simply return to the Constitution and neither will a majority of Americans surrender their liberty to a rapacious and lawless state.

Something must break. Maybe many things.

You may be a "redneck" if....

Also see:

Wednesday, February 04, 2009

Is New Hampshire Seceding?


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There is always an easy solution to every human problem—neat, plausible, and wrong.
Henry Louis Mencken (1880–1956)
“The Divine Afflatus,” A Mencken Chrestomathy, chapter 25, p. 443 (1949)
... and one could add "not all human problems really are."
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- O. Henry
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Tracking Interest Rates

Tracking Interest Rates


SEARCH BLOG: FEDERAL RESERVE for full versions... or use the Blog Archive pulldown menu.

February 3, 2006
Go back to 1999-2000 and see what the Fed did. They are following the same pattern for 2005-06. If it ain't broke, the Fed will fix it... and good!
August 29, 2006 The Federal Reserve always acts on old information... and is the only cause of U.S. recessions.
December 5, 2006 Last spring I wrote about what I saw to be a sharp downturn in the economy in the "rustbelt" states, particularly Michigan.
March 28, 2007
The Federal Reserve sees no need to cut interest rates in the light of adverse recent economic data, Ben Bernanke said on Wednesday.
The Fed chairman said ”to date, the incoming data have supported the view that the current stance of policy is likely to foster sustainable economic growth and a gradual ebbing in core inflation”.

July 21, 2007 My guess is that if there is an interest rate change, a cut is more likely than an increase. The key variables to be watching at this point are real estate prices and the inventory of unsold homes.
August 11, 2007 I suspect that within 6 months the Federal Reserve will be forced to lower interest rates before housing becomes a black hole.
September 11, 2007 It only means that the overall process has flaws guaranteeing it will be slow in responding to changes in the economy... and tend to over-react as a result.
September 18, 2007 I think a 4% rate is really what is needed to turn the economy back on the right course. The rate may not get there, but more cuts will be needed with employment rates down and foreclosure rates up.
October 25, 2007 How long will it be before I will be able to write: "The Federal Reserve lowered its lending rate to 4% in response to the collapse of the U.S. housing market and massive numbers of foreclosures that threaten the banking and mortgage sectors."
"Should the elevated turbulence persist, it would increase the possibility of further tightening in financial conditions for households and businesses," he said.

"Uncertainties about the economic outlook are unusually high right now," he said. "These uncertainties require flexible and pragmatic policymaking -- nimble is the adjective I used a few weeks ago."

December 11, 2007 Somehow the Fed misses the obvious.
[Image from:]
December 13, 2007 [from The Christian Science Monitor]
"The odds of a recession are now above 50 percent," says Mark Zandi, chief economist at Moody's "We are right on the edge of a recession in part because of the Fed's reluctance to reduce interest rates more aggressively." [see my comments of September 11]
January 7, 2008 The real problem now is that consumers can't rescue the economy and manufacturing, which is already weakening, will continue to weaken. We've gutted the forces that could avoid a downturn. The question is not whether there will be a recession, but can it be dampened sufficiently so that it is very short.
January 11, 2008 This is death by a thousand cuts.
January 13, 2008 [N.Y. Times]
“The question is not whether we will have a recession, but how deep and prolonged it will be,” said David Rosenberg, the chief North American economist at Merrill Lynch. “Even if the Fed’s moves are going to work, it will not show up until the later part of 2008 or 2009.
January 17, 2008 A few days ago, Anna Schwartz, nonagenarian economist, implicated the Federal Reserve as the cause of the present lending crisis [from the Telegraph - UK]:
The high priestess of US monetarism - a revered figure at the Fed - says the central bank is itself the chief cause of the credit bubble, and now seems stunned as the consequences of its own actions engulf the financial system. "The new group at the Fed is not equal to the problem that faces it," she says, daring to utter a thought that fellow critics mostly utter sotto voce.
January 22, 2008 The cut has become infected and a limb is in danger. Ben Bernanke is panicking and the Fed has its emergency triage team cutting rates... this time by 3/4%. ...

What should the Federal Reserve do now? Step back... and don't be so anxious to raise rates at the first sign of economic improvement.
Individuals and businesses need stability in their financial cost structures so that they can plan effectively and keep their ships afloat. Wildly fluctuating rates... regardless of what the absolute levels are... create problems. Either too much spending or too much fear. It's just not that difficult to comprehend. Why has it been so difficult for the Fed?

About Me

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Michigan, United States
Air Force (SAC) captain 1968-72. Retired after 35 years of business and logistical planning, including running a small business. Two sons with advanced degrees; one with a business and pre-law degree. Beautiful wife who has put up with me for 4 decades. Education: B.A. (Sociology major; minors in philosopy, English literature, and German) M.S. Operations Management (like a mixture of an MBA with logistical planning)