When Bank of America announced that it was moving its derivatives-laden portfolio at its subsidiary Merrill Lynch over to its bank holding company, it said it was merely responding to pressure from some of its partners to take advantage of the holding company’s higher credit rating. It would also reduce the need for the bank to post an additional $3.3 billion in collateral because of the recent downgrade it suffered at the hands of Moody’s last month. But the real reason, according to Bloomberg, is that the FDIC insures the bank but not Merrill Lynch, and in the event of a failure in its derivatives holdings, the FDIC, courtesy of the U.S. taxpayer, would pay off depositors who suffered losses. Bloomberg notes, "Derivatives are financial instruments used to hedge risks or for speculation. They’re derived from stocks, bonds, loans, currencies and commodities, or linked to specific events such as changes in the weather or interest rates." But since the early 1990s banks have more and more moved to the “speculation” part of the equation, generating an estimated $35 billion in trading profits annually.
The Occupy Wall Street demonstrators are continuing their march toward globalism as they have now endorsed a global tax system, to be instituted and monitored by a new global government. With the G20 summit set to take place November 3 in France, the directors of the Wall Street protests are now setting their sights on the implementation of the “Robin Hood tax” on all transactions involving shares, bonds, and derivatives, and possibly other items as well.
China has the world's second-largest economy and grew at more than 10 percent last year, yet Congress continues to dole out foreign aid to a country that holds more than one trillion dollars of U.S. government debt. Although long overdue, two U.S. lawmakers are speaking out against this seemingly illogical notion, as they pose the question: Why should the United States continue to shovel out taxpayers’ dollars to a communist nation that holds more than one trillion dollars of U.S. debt and competes in the same economic spheres? "Why in the world would we be borrowing money and then turn[ing] around and giving it back to the countries that we’re borrowing it from?" asked Sen. Tom Coburn (R-Okla.). "If they have enough of a surplus to loan us money, they have enough of a surplus to take care of their own needs." Sen. Jim Webb (D-Va.) echoed his Republican colleague, telling Fox News, "Hey, in the crisis that we’re in right now, should we really be continuing to send American taxpayer dollars over to China for these purposes?" U.S. foreign aid to the People’s Republic of China (PRC) is siphoned off in the form of bilateral and multilateral developmental assistance and aid to individual recipients. Some of the aid exits to the PRC in the form of social and economic development assistance through the United Nations.
Faced with widespread criticism of his once-vaunted “9-9-9” tax scheme, former pizza maker Herman Cain has changed a few ingredients. 9-9-9, readers will recall, was an attempt to simplify America’s Byzantine tax system by replacing the current system of graduated income and corporate taxes with three flat taxes, all assessed at 9 percent: a personal income tax, a corporate income tax, and a national sales tax. Social Security and Medicare taxes would be eliminated, and a bewildering array of deductions and schedules would be abolished. Today’s misnamed “progressive” tax system would be replaced by a simple, straightforward levy that would allegedly reduce both the time and expense of paying taxes for both individuals and corporations. Such a system — especially in comparison with rival Rick Perry’s newly-announced 20 percent flat tax, might seem like a beleaguered taxpaying public’s deliverance. But others have done the math and concluded that, for many Americans, Cain’s new tax would constitute a tax increase. The Tax Policy Center, a non-partisan Washington think tank, claims that, far from relieving the tax burden on America’s middle class, Cain’s scheme would raise taxes on roughly 80 percent of American families.
David Galland’s article for the Daily Reckoning painted a picture of imminent collapse of America’s monetary system, which was followed four days later by Clive Maund’s possible scenario of bank failures following on the heels of a eurozone collapse. Mamta Badkar raised the specter of hyperinflation in his Business Insider article by reviewing the “10 Worst Hyper-Inflation Horror-Stories of the Past Century,” reflecting interest in whether, or how, the economic disaster of hyperinflation would affect the United States. According to Badkar, the runaway inflation of Germany in the early 1920s is one of the worst cases in history, where, at its nadir, the monthly inflation rate reached 29,500 percent in October 1923. In post-World War II Greece, inflation peaked at 20.9 percent a month in October 1944, while in July 1946, inflation in Hungary hit 207 percent daily. In China, following the Second World War, inflation reached 2,178 percent in May 1949, equivalent to a daily rate of 11 percent. In the mid-1970s, Chile suffered from an inflation rate of 746 percent annually, while Argentina’s inflation rate in 1989 hit 12,000 percent. Bolivia’s inflation between May and August 1985 hit 60,000 percent on an annual basis. Nicaragua’s inflation rate in 1987 exceeded 30,000 percent; Yugoslavia’s daily rate of inflation reached 64.6 percent between 1989 and 1994; and in perhaps the most famous hyperinflation of all time, the purchasing power of Zimbabwean dollars was virtually obliterated, with inflation reaching 416 quintillion percent annually.
Rick Boyer and his wife Marilyn are pioneer homeschoolers. Since 1980, they have educated their 14 children at home, having started when homeschooling was still illegal in Virginia. As a pioneer in the home education movement, Rick has written several books on the homeschool experience and has been a much-in-demand speaker at many homeschool conventions all across America. As devout Christians, Rick and his wife believe that Scripture provides a powerful model for the upbringing of children that, when followed, produces wise, proactive young Christian adults who are capable of achieving great works for the glory of God. Rick also believes that God created the homeschool movement for a purpose: to raise up a new generation of young Americans who will “take back the land.” Mike Farris, the founder of the Home School Legal Defense Association and Patrick Henry College, called these new young homeschooled adults the “Joshua Generation,” because they are being called to do what Joshua in the Bible was called to do after the liberation of the Israelites from Egyptian slavery and the death of Moses: to take back the land of Canaan from the heathen, land that God had given to the Israelites. His mission was to lead the Israelites in battle to retrieve the land. The situation is almost similar in America, which was founded by Christians and which grew and prospered as a Christian nation until the middle of the 20th century when the secular humanists, today’s heathens, took it over. The result is a nation in decline, awash in sin and pornography, with public schools destroying the minds and souls of millions of American children.
Just as young people were headed to universities across the nation and the K-12 back-to-school season was percolating in parents’ minds, a front-page Washington Times’ headline disclosed on August 17: “Scores show students aren’t ready for college — 75% may need remedial classes.” A statistic like 75 percent gets people’s attention. Worse, the Times article quoted an education advocacy group’s finding that “80 percent of college students taking remedial classes [in 2008] had a high school GPA of 3.0 or better.” So apparently, even when students score well, they don’t know much. How is that even possible?
The Metropolitan Transit Authority of New York, a state agency which controls the New York City Transit Authority, has run the city's subways since 1965. (The two privately owned systems, the Brooklyn-Manhattan Transit Corporation [BMT] and the Interborough Rapid Transit Company [IRT] were bought by the city in 1940.) The mass of New Yorkers simply cannot get around their city without subways, and government owns the subways. The MTA is facing a budgetary crisis, and its director, Jay Walder, left several months ago after a $10-billion capital shortfall was revealed. How is the MTA going to handle this financial problem? The “amenities” offered to its customers are already scant. There are only 129 public restrooms for the 468 stations. Rats have become an extremely pressing problem in some MTA stations. Now New York is considering removing all trash cans from some of the subway platforms as a cost-saving measure. This plan is already being tested at the Main Street Station on Number 7 line in Flushing, Queens, and at the Eighth Street N and R stations in Manhattan. If it succeeds, then it may be expanded to other stations. The no-bin experiment is being justified on the grounds that the MTA has more trash that it can handle. Crews remove 8,500 trash bags from MTA stations each day.
Despite numerous problems in the prosecution’s case, Border Patrol agent Jesus "Chito" Diaz was sentenced to two years in federal prison for convictions stemming from his supposedly rough treatment of an illegal immigrant caught smuggling drugs. Critics and family members berated the decision — especially because of the legal precedent it establishes. It could have been much worse, however. And the battle is not over yet. “Well I can't say the sentence was good because this entire case is an injustice,” agent Diaz’ wife, Diana, who still works for the Border Patrol, told The New American. “It could have been worse, so I am glad that it is almost time for him to come home. Although the fight to clear his name has just begun, doing it together is much easier.” Diaz was prosecuted by the Obama administration on charges of “civil rights” violations and allegedly lying to investigators. The Mexican government also filed an official complaint, claiming that the agent had pulled on the handcuffs of a young drug smuggler apprehended near the border.
The Obama campaign announced Monday that former lobbyist and veteran Democratic attorney Broderick Johnson will serve as senior adviser to the President’s 2012 reelection team. Before founding a communications company this spring, Johnson worked for the powerhouse lobbying firm Bryan Cave LLP, where he represented a number of high-profile clients, including FedEx, Comcast, Microsoft, and TransCanada, the Calgary-based energy company planning to build the controversial 1,700-mile Keystone XL pipeline which would transport Canadian crude oil from Alberta, Canada, to the Texas Gulf Coast. Johnson has some experience in campaign politics, as he was "closely involved" in past Democratic presidential bids, and in 2008, he "served as an informal advisor to the Obama presidential campaign," according to his communications firm’s website. "I accept this opportunity to join the senior staff of the Obama-Biden 2012 campaign with great pride and a strong sense of duty," Johnson said in a statement. "We must reelect the President in order to build an economy that rewards hard work and restores economic security for the middle class and that provides an opportunity to families working hard to rise above poverty." "Broderick joins the campaign with the insight of many years of experience in public service and on campaigns, including the 2008 campaign," applauded Jim Messina, campaign manager for Obama’s reelection team. "Broderick will be an invaluable advisor to the campaign as well as our representative at key events around the country."