A Nation Governed by its Laws

In this week’s update I want to start with the most troubling development I saw this week, and it isn’t financial. It’s legal.

Two or three years ago I wrote a blog article (sorry, I could not find it) on a ban on public smoking that was working its way through the Colorado legislation. The law, which did pass, made it illegal to smoke in public restaurants, open air stadiums, and about anyplace except your home or a bar. Their premise was to “protect the public from the hazards of second hand smoke.”

Now you need to understand, I have a daughter who is very sensitive to cigarette smoke and has asthma. So this law seemed to be a good thing for my family. I even had a discussion about it with a fellow pastor, who was all for the ban. He was surprised to find that I was 100% against the law. Why, you might ask? It would greatly benefit my family.

The reason is simple. It is about personal liberty and freedom. Smoking is not illegal. Because of that, the government has no right to arbitrarily decide which private business owners cannot allow a legal activity within their business. If the business owner wants to allow smoking in their restaurant, then I have a choice not to go to that restaurant. While this may be inconvenient to me personally, I stand for the rights of that business owner to make his or her own decisions without governmental interference. At the same time, the business owner has to respect my right to choose not to frequent their establishment.  That’s called liberty.

The problem is, “we the people” have lost our way. We want our government to “protect” us from anything and everything, without thought or consideration as to the power such laws hand over to the government. That law, and many like it, have set legal precedent for the government to be able to judge what “we the people” need protected from, and then to put laws in place to enforce that “protection.” It gives the government tremendous power to control our lives. It is laws like this that set precedent for expanding the people’s “protection” to include “hate speech”, “intolerance” and a host of other “societal ills” they deem worthy of legal protection. It is the tool used to marginalize a people group, then demonize them, then finally to outlaw them. Ultimately this path will lead to the complete control of “free” speech in this nation. We have to look beyond the personal benefit a certain law may afford us, and instead look at the liberty it allows – or infringes.  That is why I opposed the smoking ban.

Today we are making the same mistake, and this time, the stakes are just as high. The government has deflected what should be outrage over their theft of trillions of taxpayer’s money which they directed to the bankers, by setting up a straw man of “outrage” over the AIG bonuses. This is the hot topic of discussion around the country. Yes, our government, with the help of the MSM have manipulated “we the people” into demanding that AIG return those bonuses, and have turned a blind eye toward the method we allow the government to use to “get the money back.”

“We the people” are willing to subvert the Constitution in order to take back $200 million in bonuses, while “we the people” allow the theft of trillions of taxpayer money. I guess the sheeple are easily distracted.

The Constitution specifically prohibits the government making “ex post facto” laws, or Bill’s of Attainder.

“No Bill of Attainder or ex post facto Law will be passed.” Article I, Section 9, paragraph 3.

Bill of Attainder, defined as: “a legislative act that singles out an individual or group for punishment without a trial.” And ex post facto Law is one that is passed “after the fact”, or after a legal contract is entered into, yet the new law voids the private contract.

So here we are with AIG having legal contracts to pay $200 million in bonuses that were in effect before they received government bailout money. Yes, it stinks. But which is more important, to honor the Constitution or extract our pound of flesh? Our government is happy to single out this group of people and pass an ex post facto law to punish them. This undermines the Constitution in order to satisfy the people who bit on their straw man, hook, line and sinker. Meanwhile they have set legal precedent that will allow them to punish whomever they feel compelled to punish in whatever manner and timing they choose, not caring about private contract law.

For those of you who have chosen to protect yourself from the destruction of our currency with God’s money (gold and silver), beware. This law, if passed, opens the door for the government to single you out and “ex post facto” tax your profits at 100% because you “hoarded a vital commodity during a time of national crisis.” Don’t think for a minute they can’t do it if this precedent is set.

As a nation we have long forgotten the biblical and Constitutional principles of the unalienable rights given to us by our Creator, and instead have subjected ourselves to the relativistic laws of men. The price we will pay for this ignorance – and if not ignorance, silence – will be tremendous. Unless we prepare to take this nation back in the years to come, no business, legal profit, act of free speech, or any freedom will be safe from government control. And some of you wonder why, in last week’s post I was concerned about the possibility of an armed revolt? What is happening with the side show at AIG is just more fuel added to the fire that burns in the God fearing freedom loving people of this country.

What should you do about it? We’ll, exercise the muscle of calling your elected representative. Support with your money any organization that will challenge these laws (such as the American Center for Law and Justice). But also know, that it is likely the battle on this issue and many others will likely have to be fought in the years to come. The momentum behind this AIG bonus bill is strong, and I will be surprised if it does not pass. Do not loose heart. Be ready to stand and be counted when the time comes.  This time we are entering into will require tremendous patience and wisdom.  Reaction out of anger and emotion will only serve the enemy.  Patience – it’s something we hate to exercise in this country.

While exercising that patience, we need to educate ourselves on the biblical roles of the family, church and state, and how they interact with one another. A few years ago I gave a sermon on biblical jurisdiction. We don’t understand the jurisdictions that the Bible outlines between the family, church and state. Hopefully this will help shed some light on the position I just articulated here.

Biblical Civics 201- The Mountain Church, July 2006

The G20 Meeting

This week I will be watching closely the G20 meeting that is scheduled for Thursday, April 2nd. This meeting will possibly go down in history as another turning point in how this depression and global realignment of power unfolds. Will it be somewhat orderly/peaceful, or will it be violent and chaotic? Right now the number of nations calling for a move to a new world reserve currency is growing. China, Russia and Europe have all joined the bandwagon. Meanwhile the US and UK are resisting. Why? It’s about the money and power of course. For the U.S. to admit defeat and accept a proposal to plan for a new world reserve currency would undermine our already dwindling influence around the world.

Would it be the right thing to do? Of course. Not only is it the right thing to do, it is the only option we have. The only question is – how do we get there?  With or without the cooperation of the U.S.?  Without our cooperation, the markets will do it, and that won’t be pretty. The economic and political dislocations that would create will be enormous.

I believe the ROW (rest of the world) fired a shot across the bow last week when they refused to step up and buy U.K. bonds, causing the first failed auction for the U.K. since the 60’s. At the same time, a U.S. bond auction drew very weak demand, sending a strong signal that the same fate may be in store for the U.S. The message? Cooperate with this transition, or we simply can stop buying your bonds.

A failed U.S. auction would cause instantaneous and widespread economic damage. Interest rates would soar at a time when the Fed/Treasury is planning to push them down via QE (see last week’s post). This would immediately and irreversibly destroy the current monetary policy of the U.S. Our stock markets and bond markets would crash, along with the U.S. dollar.

So, don’t believe for a minute that the ROW isn’t starting to assert itself against the U.S. They are, in increasingly public ways. Despite the rhetoric coming out of Washington, this is putting tremendous pressure on them. That is why Treasury Secretary Geithner floated what I believe was a “trial balloon” this week when he suggested that a global reserve currency made up of IMF SDR’s would possibly be considered. The bond markets reacted instantaneously, as did the dollar and gold. They didn’t like what they heard, and he immediately “clarified” his comments.

The government is finding itself between a very rough rock and an unfriendly hard place. Cooperate with the transition, and the bond markets sell off tomorrow. Don’t cooperate, and they crash in the months ahead as the ROW lets a U.S. Treasury auction fail. What this shows us – and them – is that the U.S. dollar is going to be replaced by a new reserve currency. It is just a matter of time and the path we travel to get there. Plan accordingly.

Dan Norcini (commentator at www.jsmineset.com) had this to say about the U.S. dollar:

“This shift in sentiment away from the Dollar is momentous. It is the rare breed that is able to spot turning points in history while they are indeed occurring. It is generally only after the fact that the majority are able to point a finger at a particular occurrence and state; “history was made here”. Nonetheless, we are getting a ringside seat and observing the events transpire that will alter our way of life here in the United States forever.”

I agree.

Economic Outlook

Two weeks ago, GM’s announcement that they would not need $2 billion for the month of march was one of the planks in Operation Confidence Con that ignited the current stock market rally. This week, the story is different.

GM, Chrysler May Need Additional Aid, Rattner Says

By John Hughes
March 20 (Bloomberg) — General Motors Corp. and Chrysler LLC, which have requested as much as $21.6 billion in additional government aid, may need “considerably” more than that, said Steven Rattner, the Treasury’s chief auto adviser.

“It could be considerably higher, I won’t deny that,” Rattner said, when asked whether U.S. aid sought could rise. Rattner spoke in an interview on Bloomberg Television’s “Political Capital with Al Hunt,” scheduled to air today.

More bad news from the auto industry.

Half of auto suppliers facing bankruptcy
By ED BRAYTON 3/23/09 6:36 AM

Automotive News reports on a new study that concludes that half of all U.S. auto supply companies potentially face bankruptcy in 2009, with devastating results for the American economy:
More than half of the top U.S. auto parts suppliers could file for bankruptcy protection in 2009 with at least one million job losses, according to a study by global consultants A.T. Kearney.

Those suppliers, which ship parts directly to automakers, are pressured from above by production cuts by the automakers and from below by increasingly fragile companies that supply them with components, the study found.

Four major suppliers declared bankruptcy in 2008. The Treasury Department established a $5 billion fund to help auto suppliers last week, but that was far short of the $18.5 billion the industry was seeking.

This is not the kind of news sustainable market rallies are made of, let alone economic recoveries.

More on Operation Confidence Con…

U.S. seizes top credit union clearinghouse

WASHINGTON (Reuters) – Regulators seized the top clearinghouse for U.S. credit unions, citing a critical deterioration in the finances of the provider of services to thousands of retail credit unions.

The National Credit Union Administration (NCUA) took control of U.S. Central Federal Credit Union, a huge wholesale credit union with about $34 billion in assets based in Lenexa, Kansas.

It also seized Western Corporate (WesCorp) Federal Credit Union of San Dimas, California, another corporate credit union with $23 billion in assets.

Stress tests of corporate credit unions had uncovered an “unacceptably high concentration of risk” at these two institutions, the regulator said in a statement.

What is significant about this? Up until last weekend, we had 8 Fridays in a row when bank closures were announced. None on Friday 3/20, in anticipation of the big pump on Monday 3/23 where the euphoria would cause the above news to get lost. (it wasn’t announced until Wed, 3/25)

Remember, pension funds are another huge problem waiting to surface and demand a bailout.

Mike Morgan – PENSION FUND WATCH – When this problem explodes, we will see worldwide “shock and awe.”

Five Public Pension Funds Sue BofA
Five public pension funds are seeking lead status in a class-action suit against Bank of America Corp., alleging that the nation’s largest bank by assets made “untrue statements” in the run-up to its purchase of Merrill Lynch & Co. and did not disclose material information to shareholders. – The Wall Street Journal

This following point, made on Lemetropole Café, is exactly what I have been saying about those who say this problem will be born by future generations of taxpayers. It won’t make it that far! This generation will feel the full force of the past 40 years of rolling forward of our debts.

I want to again make the point that the cost of the government bailouts/giveaways are not going to be born by the US taxpayer. I repeat: There are not enough taxpayers nor are there sufficient numbers of rich people to soak. Rather, these bailout costs are going to be borne by holders of U.S. dollars. Certainly, many dollar holders are U.S. taxpayers as well, but the costs will not be borne by them in their capacity as taxpayers, per se. These costs, as the Chinese are clearly expressing, are going to be borne both here and throughout the world, wherever the $ may be, through U.S. dollar debasement. I think it would be helpful if here in the Cafe we all began properly identifying what this is. These are “Dollar holder bailouts” not “Taxpayer bailouts” and if we regularly use the term correctly here perhaps the message -so friendly for gold – may begin to seep in to the mainstream. There are many Americans who incorrectly think that they have no way of protecting themselves from these bailout costs because they are U.S taxpayers. They would be wrong.

Geopolitics

Pakistan is once again vying with Mexico as to which will be the most serious geopolitical problem that the Unites States will have to deal with in the coming year.

Pakistan ‘perilously close’ to being failed state

NEW DELHI (AFP) — Pakistan is “perilously close” to becoming a failed state and is already “pretty dysfunctional,” a senior Indian government official has said.
Home Minister P. Chidambaram also voiced fears that the rise of the Taliban in neighbouring Pakistan could have a spillover effect on India.

“I do not think it (Pakistan) is a failed state but if it does not arrest the decline, it is perilously close to becoming one,” he said in an interview on India’s CNN-IBN network to be aired late Monday.
“It is pretty dysfunctional today,” Chidambaram said.

Asked if India has a stake in ensuring stable civilian rule in Pakistan, he replied: “Of course a stable civilian democratic government means that we know who we are dealing with and there are checks and balances.”

He added that the rise of the Taliban in Pakistan “will encourage fundamentalists in India to imitate them, and number two the Taliban could become a sponsor of terror in India.”

Mexican Drug Cartel Violence Spills Over, Alarming U.S.

TUCSON — Sgt. David Azuelo stepped gingerly over the specks of blood on the floor, took note of the bullet hole through the bedroom skylight, raised an eyebrow at the lack of furniture in the ranch-style house and turned to his squad of detectives investigating one of the latest home invasions in this southern Arizona city.

A 21-year-old man had been pistol-whipped throughout the house, the gun discharging at one point, as the attackers demanded money, the victim reported. His wife had been bathing their 3-month-old son when the intruders arrived.

“At least they didn’t put the gun in the baby’s mouth like we’ve seen before,” Sergeant Azuelo said. That same afternoon this month, his squad was called to the scene of another home invasion, one involving the abduction of a 14-year-old boy.

This city, an hour’s drive north of the Mexican border, is coping with a wave of drug crime the police suspect is tied to the bloody battles between Mexico’s drug cartels and the efforts to stamp them out.

The economic hardship and horrors of man’s money when it fails. The people in the following article are real.  They are experiencing real suffering due to man’s money gone awry.

From “Another Day, Another Trillion Dollars”

And what’s happening in that heart of financial darkness, Zimbabwe? The Guardian also reports that children are eating rats to survive. For many, only gold is keeping them from starving.

Unfortunately, they don’t have much gold. The Zimbabwe inflation rate is still running around 230 million percent, despite recent reforms (we don’t know what happened after the government took 13 zeros off its currency; maybe it’s putting them back). So, the only reliable money is either foreign currency – or gold. Many people are panning for gold in the few streams where it is present.

What to Do?

Here is something to consider.  Join the 9/12 Project, which is a project designed to get people talking and acting like we need to, and can, take this country back.  Glen Beck is the one behind this, and I wholeheartedly agree with the direction he is taking.  The number of those signed up grew from 250,000 on Thursday, when I signed up, to over 344,000 today.  Get some momentum here and let’s begin to organize.

The 912 Project

Finally,  Oh to have someone in Congress stand up and say this to our President.