Friday, February 20, 2009

Change we can believe in?

It's February and the market is down almost 25% since Obama was elected. The major financials have lost over 30% of their remaining value since Obama announced his non-plan to "save" the banks two weeks ago. We've got people like Rick Santelli on CNBC Thursday doing a major league rant about government subsidizing 'bad behavior' and calling for a "Chicago Tea Party". Meanwhile GM seems to have written off Saab and thrown it to the wolves/creditors. And today's market is just barely above its 2002 low of 7286. That's before adjusting for inflation. The volume of wealth that is being destroyed around us is monumental and we are not going to be able to pay for everything we think we deserve much longer. In fact, at the pace we're destroying wealth, the United States will be a very backward nation in a few more years.

At the same time, Russia has bought over 90 tonnes of gold so far in the last 2 years and now gold has breached $1000 per ounce again on fears that the only way out of this mess is all of the major governments performing hyperinflation (a suggestion actually made by a Japanese parliament member).

In California they finally have a budget with about $15 billion in spending cuts, $14 billion in tax increases, and $11 billion in bonds (borrowing... IF they can find anyone willing to loan them money at a rate they can afford to pay back). In practical terms for California this means 1 in 5 California Public Workers to be Fired.

Meanwhile unemployment increased again, giving us 4.99 million unemployed, as the government is quick to point out. But the news media aren't buying the decimal point spin baloney - Nearly 5 million are getting unemployment benefits. But that unemployment safety net has big holes in it these days with lots of people falling through the cracks. How many are really unemployed? No one really knows but the BLS does take a stab at a guess in table A-12, line item U-6 of their monthly report. The current guess is 13.9% of the economy, almost double the "official" unemployment figure.

The Big Three in Detroit are still in trouble. GM Bankruptcy Prospects Still Loom and Chrysler is begging or more government handouts while they remove every other lightbulb in their offices and cut the thermostat 4 degrees to try to save a few more pennies. I don't think that's going to save them.

Finally, Texas has joined the club of states telling Washington to shove it.

"WHEREAS, Today, in 2009, the states are demonstrably treated as agents of the federal government; and

WHEREAS, Many federal laws are directly in violation of the Tenth Amendment to the Constitution of the United States; and

WHEREAS, The Tenth Amendment assures that we, the people of the United States of America and each sovereign state in the Union of States, now have, and have always had, rights the federal government may not usurp; and

WHEREAS, Section 4, Article IV, of the Constitution says, "The United States shall guarantee to every State in this Union a Republican Form of Government," and the Ninth Amendment states that "The enumeration in the Constitution, of certain rights, shall not be construed to deny or disparage others retained by the people"; and

WHEREAS, The United States Supreme Court has ruled in New York v. United States, 112 S. Ct. 2408 (1992), that congress may not simply commandeer the legislative and regulatory processes of the states; and

WHEREAS, A number of proposals from previous administrations and some now pending from the present administration and from congress may further violate the Constitution of the United States; now, therefore, be it

RESOLVED, That the 81st Legislature of the State of Texas hereby claim sovereignty under the Tenth Amendment to the Constitution of the United States over all powers not otherwise enumerated and granted to the federal government by the Constitution of the United States; and, be it further

RESOLVED, That this serve as notice and demand to the federal government, as our agent, to cease and desist, effective immediately, mandates that are beyond the scope of these constitutionally delegated powers; and, be it further

RESOLVED, That all compulsory federal legislation that directs states to comply under threat of civil or criminal penalties or sanctions or that requires states to pass legislation or lose federal funding be prohibited or repealed; and, be it further

RESOLVED, That the Texas secretary of state forward official copies of this resolution to the president of the United States, to the speaker of the house of representatives and the president of the senate of the United States Congress, and to all the members of the Texas delegation to the congress with the request that this resolution be officially entered in the Congressional Record as a memorial to the Congress of the United States of America."


Pass the ammunition, boys. This may get interesting.

1 comment:

fallout11 said...

Orlov predicted that as things fell apart the center (fedgov) would be unable to hold, and that large regions would break off and form their own 'nations', just as occurred with both the Roman Empire and the Soviet Union. Sure looks like we're heading that way.