Money

Meet Your New Boss: Buying Large Employers Will Enable China To Dominate 1000s Of U.S. Communities

June 6, 2013 by Michael

Are you ready for a future where China will employ millions of American workers and dominate thousands of small communities all over the United States? Such a future would be unimaginable to many Americans, but the truth is that it is already starting to happen. Chinese acquisition of U.S. businesses set a new all-time record last year, and it is on pace to absolutely shatter that record this year. Meanwhile, China is voraciously gobbling up real estate and is establishing economic beachheads all over America. If China continues to build economic power inside the United States, it will eventually become the dominant economic force in thousands of small communities all over the nation. Just think about what the Smithfield Foods acquisition alone will mean. Smithfield Foods is the largest pork producer and processor in the world. It has facilities in 26 U.S. states and it employs tens of thousands of Americans. It directly owns 460 farms and has contracts with approximately 2,100 others. But now a Chinese company has bought it for $4.7 billion, and that means that the Chinese will now be the most important employer in dozens of rural communities all over America. If you don’t think that this is important, you haven’t been paying much attention to what has been going on in the world. Thanks in part to our massively bloated trade deficit with China, the Chinese have trillions of dollars to spend. They are only just starting to exercise their economic muscles.

And it is important to keep in mind that there is often not much of a difference between “the Chinese government” and “Chinese corporations”. In 2011, 43 percent of all profits in China were produced by companies that the Chinese government had a controlling interest in. Americans are accustomed to thinking of “government” and “business” as being separate things, but in China they are often one and the same. Even when there is a separation in ownership, the reality is that no major Chinese corporation is going to go against the authority and guidance of the Chinese government. The relationship between government and business in China is much different than it is in the United States.

Over the past several years, Chinese companies have become increasingly aggressive. Last year a Chinese company spent $2.6 billion to purchase AMC entertainment – one of the largest movie theater chains in the United States. Now that Chinese company controls more movie ticket sales than anyone else in the world. At the time, that was the largest acquisition of a U.S. firm by a Chinese company, but now the Smithfield Foods deal has greatly surpassed that.

But China is not just relying on acquisitions to expand its economic power. The truth is that “economic beachheads” are being established all over America. For example, Golden Dragon Precise Copper Tube Group, Inc. recently broke ground on a $100 million plant in Thomasville, Alabama. I am sure that many of the residents of Thomasville, Alabama will be glad to have jobs, but it will also become yet another community that will now be heavily dependent on communist China.

And guess where else Chinese companies are putting down roots?

Detroit.

Yes, the poster child for the deindustrialization of America is being invaded by the Chinese. The following comes from a recent CNBC article…

Dozens of companies from China are putting down roots in Detroit, part of the country’s steady push into the American auto industry.

Chinese-owned companies are investing in American businesses and new vehicle technology, selling everything from seat belts to shock absorbers in retail stores, and hiring experienced engineers and designers in an effort to soak up the talent and expertise of domestic automakers and their suppliers.

If you recently purchased an “American-made vehicle”, there is a really good chance that it has Chinese parts in it.

In fact, it is becoming harder and harder to get auto parts that are actually made in America by American companies. A lot of those companies are dying off. One example of this is a battery maker that had received $132 million from the federal government that was recently gobbled up by a huge Chinese corporation…

Industry analysts are hard-pressed to put a number on the Chinese suppliers operating in the United States. “We simply don’t know how many there are,” said David Andrea, an official with the Original Equipment Suppliers Association, a trade organization for auto parts makers.

In one of the more prominent deals, the Wanxiang Group bought most of the assets of the battery maker A123 Systems, which filed for bankruptcy last year despite receiving $132 million of $249 million in federal grants to build two factories in Michigan.

Congressional Republicans criticized the deal, saying A123’s technology could support military applications in China. Still, the buyout was approved this year by the Committee on Foreign Investment in the United States, a federal government panel.

China seems particularly interested in acquiring energy resources in the United States. For example, did you know that China is actually mining for coal in the mountains of Tennessee?

Guizhou Gouchuang Energy Holdings Group spent 616 million dollars to acquire Triple H Coal Co. in Jacksboro, Tennessee. At the time, that acquisition really didn’t make much news, but now a group of conservatives in Tennessee is trying to stop the Chinese from blowing up their mountains and taking their coal. The following is from a Wall Street Journal article back in March…

The Tennessee Conservative Union began airing an ad Tuesday that says lawmakers have failed to protect the state’s scenic mountains and are allowing the “Chinese to destroy our mountains and take our coal…the same folks who hold our debt.”

But when it comes to our energy resources, China has been most interested in our oil and natural gas. It is a complete and total mystery why the federal government would allow China to buy up our precious domestic sources of energy, but it is happening. The following is a list of some of the oil and natural gas deals that China has been involved in during the last few years that was compiled by the Wall Street Journal…

Colorado: Cnooc gained a one-third stake in 800,000 acres in northeast Colorado and southeast Wyoming in a $1.27 billion pact with Chesapeake Energy Corp.

Louisiana: Sinopec has a one-third interest in 265,000 acres in the Tuscaloosa Marine Shale after a broader $2.5-billion deal with Devon Energy.

Michigan: Sinopec gained a one-third interest in 350,000 acres in a larger $2.5 billion deal with Devon Energy.

Ohio: Sinopec acquired a one-third stake in Devon Energy’s 235,000 Utica Shale acres in a larger $2.5 billion deal.

Oklahoma: Sinopec has a one-third interest in 215,000 acres in a broader $2.5 billion deal with Devon Energy.

Texas: Cnooc acquired a one-third interest in Chesapeake Energy’s 600,000 acres in the Eagle Ford Shale in a $2.16-billion deal.

Wyoming: Cnooc has a one-third stake in 800,000 acres in northeast Colorado and southeast Wyoming after a $1.27 billion pact with Chesapeake Energy. Sinopec gained a one-third interest in Devon Energy’s 320,000 acres as part of a larger $2.5 billion deal.

Gulf of Mexico: Cnooc Ltd. separately acquired minority stakes in some of Statoil ASA’s leases as well as six of Nexen Inc.’s deep-water wells.

How could we be so stupid?

Sadly, as our politicians endlessly bicker China just continues to aggressively push ahead.

And pretty soon China may want to build entire cities in the United States just like they have been doing in other countries. According to Bloomberg, right now China is actually building a city larger than Manhattan just outside of the capital of Belarus…

China is building an entire city in the forests near the Belarusian capital Minsk to create a manufacturing springboard between the European Union and Russia.

Belarusian President Aleksandr Lukashenko allotted an area 40 percent larger than Manhattan around Minsk’s international airport for the $5 billion development, which will include enough housing to accommodate 155,000 people, according to Chinese and Belarusian officials.

And this is actually already happening on a much smaller scale in this country. For example, as I have written about previously, a Chinese company known as “Sino-Michigan Properties LLC” has purchased 200 acres of land near the little town of Milan, Michigan. Their stated goal is to construct a “China City” that has artificial lakes, a Chinese cultural center and hundreds of housing units for Chinese citizens.

In other cases, large chunks of real estate in the middle of major U.S. cities are being gobbled up by Chinese “investors”. Just check out what a Fortune article from a while back says has been happening in Toledo, Ohio…

In March 2011, Chinese investors paid $2.15 million cash for a restaurant complex on the Maumee River in Toledo, Ohio. Soon they put down another $3.8 million on 69 acres of newly decontaminated land in the city’s Marina District, promising to invest $200 million in a new residential-commercial development. That September, another Chinese firm spent $3 million for an aging hotel across a nearby bridge with a view of the minor league ballpark.

Are you starting to get the picture?

China is on the rise and America is in decline. If you doubt this, just read the following list of facts which comes from one of my previous articles entitled “40 Ways That China Is Beating America“…

#1 As I mentioned above, when you total up all imports and exports of goods, China is now the number one trading nation on the entire planet.

#2 During 2012, we sold about 110 billion dollars worth of stuff to the Chinese, but they sold about 425 billion dollars worth of stuff to us. That was the largest trade deficit that one nation has had with another nation in the history of the world.

#3 Overall, the U.S. has run a trade deficit with China over the past decade that comes to more than 2.3 trillion dollars.

#4 China now has the largest new car market in the entire world.

#5 China has more foreign currency reserves than anyone else on the planet.

#6 China is the number one gold producer in the world.

#7 China is also the number one gold importer in the world.

#8 The uniforms for the U.S. Olympic team were made in China.

#9 85 percent of all artificial Christmas trees are made in China.

#10 The new World Trade Center tower is going to include glass that has been imported from China.

#11 The new Martin Luther King memorial on the National Mall was made in China.

#12 One of the reasons it is so hard to export stuff to China is because of their tariffs. According to the New York Times, a Jeep Grand Cherokee that costs $27,490 in the United States costs about $85,000 in China thanks to all the tariffs.

#13 The Chinese economy has grown 7 times faster than the U.S. economy has over the past decade.

#14 The United States has lost a staggering 32 percent of its manufacturing jobs since the year 2000.

#15 The United States has lost an average of 50,000 manufacturing jobs per month since China joined the World Trade Organization in 2001.

#16 Overall, the United States has lost a total of more than 56,000 manufacturing facilities since 2001.

#17 According to the Economic Policy Institute, America is losing half a million jobs to China every single year.

#18 China now produces more than twice as many automobiles as the United States does.

#19 Since the auto industry bailout, approximately 70 percent of all GM vehicles have been built outside the United States.

#20 After being bailed out by U.S. taxpayers, General Motors is currently involved in 11 joint ventures with companies owned by the Chinese government. The price for entering into many of these “joint ventures” was a transfer of “state of the art technology” from General Motors to the communist Chinese.

#21 Back in 1998, the United States had 25 percent of the world’s high-tech export market and China had just 10 percent. Ten years later, the United States had less than 15 percent and China’s share had soared to 20 percent.

#22 The United States has lost more than a quarter of all of its high-tech manufacturing jobs over the past ten years.

#23 China’s number one export to the U.S. is computer equipment, but the number one U.S. export to China is “scrap and trash”.

#24 The U.S. trade deficit with China is now more than 30 times larger than it was back in 1990.

#25 China now consumes more energy than the United States does.

#26 China is now the leading manufacturer of goods in the entire world.

#27 China uses more cement than the rest of the world combined.

#28 China is now the number one producer of wind and solar power on the entire globe.

#29 There are more pigs in China than in the next 43 pork producing nations combined.

#30 Today, China produces nearly twice as much beer as the United States does.

#31 Right now, China is producing more than three times as much coal as the United States does.

#33 China now produces 11 times as much steel as the United States does.

#34 China produces more than 90 percent of the global supply of rare earth elements.

#35 China is now the number one supplier of components that are critical to the operation of U.S. defense systems.

#36 A recent investigation by the U.S. Senate Committee on Armed Services found more than one million counterfeit Chinese parts in the Department of Defense supply chain.

#37 15 years ago, China was 14th in the world in published scientific research articles. But now, China is expected to pass the United States and become number one very shortly.

#38 China now awards more doctoral degrees in engineering each year than the United States does.

#39 The average household debt load in the United States is 136% of average household income. In China, the average household debt load is 17% of average household income.

#40 The Chinese have begun to buy up huge amounts of U.S. real estate. In fact, Chinese citizens purchased one out of every ten homes that were sold in the state of California in 2011.

And what we have seen so far may just be the tip of the iceberg as far as Chinese “investment” in U.S. real estate is concerned. The following is a brief excerpt from a Bloomberg article that was posted just last week…

China is studying the possibility of investing a portion of its $3.4 trillion in foreign-exchange reserves in U.S. real estate, said two people with direct knowledge of the situation.

The State Administration of Foreign Exchange began the study after seeing signs of a recovery in the U.S. property market, said the people, who asked not to be identified as they weren’t authorized to speak publicly about the matter. China may acquire properties, invest in real estate funds or buy stakes in property companies, they said. The safety of the investments will be the top priority, said the people, who didn’t elaborate on a timetable or other details.

So what can we do about all of this?

Unfortunately, not a whole lot. Both major political parties seem to be fully convinced that merging our economy with the economy of communist China is a great idea. I would not expect major changes in our policies regarding China any time soon.

For now, I will just leave you with one piece of advice…

Learn to speak Chinese. You might need it someday.

20 Completely Ridiculous College Courses Being Offered At U.S. Universities

June 10, 2013June 5, 2013 by Michael

Would you like to know what America’s young people are actually learning while they are away at college? It isn’t pretty. Yes, there are some very highly technical fields where students are being taught some very important skills, but for the most part U.S. college students are learning very little that they will actually use out in the real world when they graduate. Some of the college courses listed below are funny, others are truly bizarre, others are just plain outrageous, but all of them are a waste of money. If we are going to continue to have a system where we insist that our young people invest several years of their lives and tens of thousands of dollars getting a “college education”, they might as well be learning some useful skills in the process. This is especially true considering how much student loan debt many of our young people are piling up. Sadly, the truth is that right now college education in the United States is a total joke. I know – I spent eight years in the system. Most college courses are so easy that they could be passed by the family dog, and many of these courses “study” some of the most absurd things imaginable.

Listed below are 20 completely ridiculous college courses being offered at U.S. universities. The description following each course title either comes directly from the official course description or from a news story about the course…

1. “What If Harry Potter Is Real?” (Appalachian State University) – This course will engage students with questions about the very nature of history. Who decides what history is? Who decides how it is used or mis-used? How does this use or misuse affect us? How can the historical imagination inform literature and fantasy? How can fantasy reshape how we look at history? The Harry Potter novels and films are fertile ground for exploring all of these deeper questions. By looking at the actual geography of the novels, real and imagined historical events portrayed in the novels, the reactions of scholars in all the social sciences to the novels, and the world-wide frenzy inspired by them, students will examine issues of race, class, gender, time, place, the uses of space and movement, the role of multiculturalism in history as well as how to read a novel and how to read scholarly essays to get the most out of them.

2. “God, Sex, Chocolate: Desire and the Spiritual Path” (UC San Diego) – Who shapes our desire? Who suffers for it? Do we control our desire or does desire control us? When we yield to desire, do we become more fully ourselves or must we deny it to find an authentic identity beneath? How have religious & philosophical approaches dealt with the problem of desire?

3. “GaGa for Gaga: Sex, Gender, and Identity” (The University Of Virginia) – In Graduate Arts & Sciences student Christa Romanosky’s ongoing ENWR 1510 class, “GaGa for Gaga: Sex, Gender, and Identity,” students analyze how the musician pushes social boundaries with her work. For this introductory course to argumentative essay writing, Romanosky chose the Lady Gaga theme to establish an engaging framework for critical analysis.

4. “Lady Gaga and the Sociology of Fame” (The University Of South Carolina) – Lady Gaga may not have much class but now there is a class on her. The University of South Carolina is offering a class called Lady Gaga and the Sociology of Fame. Mathieu Deflem, the professor teaching the course describes it as aiming to “unravel some of the sociologically relevant dimensions of the fame of Lady Gaga with respect to her music, videos, fashion, and other artistic endeavours.”

5. “Philosophy And Star Trek” (Georgetown) – Star Trek is very philosophical. What better way, then, to learn philosophy, than to watch Star Trek, read philosophy, and hash it all out in class? That’s the plan. This course is basically an introduction to certain topics in metaphysics and epistemology philosophy, centered around major philosophical questions that come up again and again in Star Trek. In conjunction with watching Star Trek, we will read excerpts from the writings of great philosophers, extract key concepts and arguments and then analyze those arguments.

6. “Invented Languages: Klingon and Beyond” (The University Of Texas) – Why would anyone want to learn Klingon?

7. “The Science Of Superheroes” (UC Irvine) – Have you ever wondered if Superman could really bend steel bars? Would a “gamma ray” accident turn you into the Hulk? What is a “spidey-sense”? And just who did think of all these superheroes and their powers? In this seminar, we discuss the science (or lack of science) behind many of the most famous superheroes. Even more amazing, we will discuss what kind of superheroes might be imagined using our current scientific understanding.

8. “Learning From YouTube” (Pitzer College) – About 35 students meet in a classroom but work mostly online, where they view YouTube content and post their comments. Class lessons also are posted and students are encouraged to post videos. One class member, for instance, posted a 1:36-minute video of himself juggling.

9. “Arguing with Judge Judy” (UC Berkeley) – TV “Judge” shows have become extremely popular in the last 3-5 years. A fascinating aspect of these shows from a rhetorical point of view is the number of arguments made by the litigants that are utterly illogical, or perversions of standard logic, and yet are used over and over again. For example, when asked “Did you hit the plaintiff?” respondents often say, “If I woulda hit him, he’d be dead!” This reply avoids answering “yes” or “no” by presenting a perverted form of the logical strategy called “a fortiori” argument [“from the stronger”] in Latin. The seminar will be concerned with identifying such apparently popular logical fallacies on “Judge Judy” and “The People’s Court” and discussing why such strategies are so widespread. It is NOT a course about law or “legal reasoning.” Students who are interested in logic, argument, TV, and American popular culture will probably be interested in this course. I emphasize that it is NOT about the application of law or the operations of the court system in general.

10. “Elvis As Anthology” (The University Of Iowa) – The class, “Elvis as Anthology,” focuses on Presley’s relationship to African American history, social change, and aesthetics. It focuses not just on Elvis, but on other artists who inspired him and whom he inspired.

11. “The Feminist Critique Of Christianity” (The University Of Pennsylvania) – An overview of the past decades of feminist scholarship about Christian and post-Christian historians and theologians who offer a feminist perspective on traditional Christian theology and practice. This course is a critical overview of this material, presented with a summary of Christian biblical studies, history and theology, and with a special interest in constructive attempts at creating a spiritual tradition with women’s experience at the center.

12. “Zombies In Popular Media” (Columbia College) – This course explores the history, significance, and representation of the zombie as a figure in horror and fantasy texts. Instruction follows an intense schedule, using critical theory and source media (literature, comics, and films) to spur discussion and exploration of the figure’s many incarnations. Daily assignments focus on reflection and commentary, while final projects foster thoughtful connections between student disciplines and the figure of the zombie.

13. “Far Side Entomology” (Oregon State) – For the last 20 years, a scientist at Oregon State University has used Gary Larson’s cartoons as a teaching tool. The result has been a generation of students learning — and laughing — about insects.

14. “Interrogating Gender: Centuries of Dramatic Cross-Dressing” (Swarthmore) – Do clothes make the man? Or the woman? Do men make better women? Or women better men? Is gender a costume we put on and take off? Are we really all always in drag? Does gender-bending lead to transcendence or chaos? These questions and their ramifications for liminalities of race, nationality and sexuality will be our focus in a course that examines dramatic works from The Bacchae to M. Butterfly.

15. “Oh, Look, a Chicken!” Embracing Distraction as a Way of Knowing (Belmont University) – Students must write papers using their personal research on the five senses. Entsminger reads aloud illustrated books The Simple People and Toby’s Toe to teach lessons about what to value by being alive. Students listen to music while doodling in class. Another project requires students to put themselves in situations where they will be distracted and write a reflection tracking how they got back to their original intent.

16. “The Textual Appeal of Tupac Shakur” (University of Washington) – The UW is not the first college with a class dedicated to Shakur — classes on the rapper have been offered at the University of California Berkeley and Harvard — but it is the first to relate Shakur’s work to literature.

17. “Cyberporn And Society” (State University of New York at Buffalo) – With classwork like this, who needs to play? Undergraduates taking Cyberporn and Society at the State University of New York at Buffalo survey Internet porn sites.

18. “Sport For The Spectator” (The Ohio State University) – Develop an appreciation of sport as a spectacle, social event, recreational pursuit, business, and entertainment. Develop the ability to identify issues that affect the sport and spectator behavior.

19. “Getting Dressed” (Princeton) – Jenna Weissman Joselit looks over the roomful of freshmen in front of her and asks them to perform a warm-up exercise: Chart the major moments of your lives through clothes. “If you pop open your closet, can you recall your lives?” she posits on the first day of the freshman seminar “Getting Dressed.”

20. “How To Watch Television” (Montclair) – This course, open to both broadcasting majors and non-majors, is about analyzing television in the ways and to the extent to which it needs to be understood by its audience. The aim is for students to critically evaluate the role and impact of television in their lives as well as in the life of the culture. The means to achieve this aim is an approach that combines media theory and criticism with media education.

Are you starting to understand why our college graduates can’t function effectively when they graduate and go out into the real world?

All of this would be completely hilarious if not for the fact that we have millions of young people going into enormous amounts of debt to pay to go to these colleges.

In America today, college education has become a giant money making scam. We have a system that absolutely throws money at our young people, but we never warn them about the consequences of all of these loans. The following is an excerpt from an email that one reader sent me recently about the student loan industry…

For example, one woman told me that her and her husband sat down and thought of every possible expense they could when they were applying for parent/student loan for their daughter. When the approval came back, they were approved for 7k more than they asked for…how about ****! Of course at 7%, why not! Funny thing is they kept the 7k, because she’s in wealth management and said she could “easily” get more than 7% in the stock market……awesome! I have another example of a younger friend of mine who graduated law school from Vanderbilt with 210k in student loans. I asked if tuition was that much there. She said kind of, but they kept offering more than the actual tuition, so she took it and used it for a better lifestyle. Now 20% of her income goes to pay those loans, and it’s still not enough to touch one dollar of the principal…so all she is doing is paying interest, and building on principal…like a revers amortizing mortgage. To make it worse, she was able to save 25k, so she is going to buy a house somehow. Having explained to her that the best investment in the world is to pay off a high interest loan, she said I’m tired of waiting to have a life.

In a recent article entitled “The Student Loan Delinquency Rate In The United States Has Hit A Brand New Record High” I detailed how nightmarish our student loan debt bubble is becoming. According to the Federal Reserve, the total amount of student loan debt has risen by 275 percent since 2003, and it just continues to soar.

A college education can be a wonderful thing, but right now we have got a system that is deeply, deeply broken.

So what do you think about our system of higher education?

Please feel free to express your opinion by posting a comment below…

The Student Loan Delinquency Rate In The United States Has Hit A Brand New Record High

May 29, 2013 by Michael

37 million Americans currently have outstanding student loans, and the delinquency rate on those student loans has now reached a level never seen before. According to a new report that was just released by the U.S. Department of Education, 11 percent of all student loans are at least 90 days delinquent. That is a brand new record high, and it is almost double the rate of a decade ago. Total student loan debt exceeds a trillion dollars, and it is now the second largest category of consumer debt after home mortgages. The student loan debt bubble has been growing particularly rapidly in recent years. According to the Federal Reserve, the total amount of student loan debt has risen by 275 percent since 2003. That is a staggering figure. Millions upon millions of young college graduates are entering the “real world” only to discover that they are already financially crippled for decades to come by oppressive student loan debt burdens. Large numbers of young people are even putting off buying homes or getting married simply because of student loan debt.

So why is this happening? Well, a big part of the problem is that the cost of college tuition has gotten wildly out of control. Since 1978, the cost of college tuition has risen even more rapidly then the cost of medical care has. Tuition costs at public universities have risen by 27 percent over the past five years, and there appears to be no end in sight.

We keep encouraging our young people to take out all of the loans that are necessary to pay for college, because a college education is supposedly the “key” to their futures.

But is that really the case?

Sadly, the reality of the matter is that millions of young Americans are graduating from college only to discover that the jobs that they were promised simply do not exist.

In fact, at this point about half of all college graduates are working jobs that do not even require a college degree.

This is leading to mass disillusionment with the system. One survey found that 70% of all college graduates wish that they had spent more time preparing for the “real world” while they were still in college.

And because so many of them cannot get decent jobs, more college graduates then ever are finding that they cannot pay back the huge student loans that they were encouraged to sign up for. The following is from a recent Bloomberg article.

Eleven percent of student loans were seriously delinquent — at least 90 days past due — in the third quarter of 2012, compared with 6 percent in the first quarter of 2003, according to the report by the U.S. Education Department. Almost 30 percent of 20- to 24-year-olds aren’t employed or in school, the study found.

Everyone agrees that we are now dealing with an unprecedented student loan debt bubble, but none of our leaders seem to have any solutions.

The two charts posted below come from a recent Zero Hedge article, and they are very illuminating. The first chart shows how the amount of student loan debt owned by the federal government has absolutely exploded in recent years, and the second chart shows how the percentage of student loan debt that is at least 90 days delinquent has risen to a brand new record high…

How is the economy ever going to recover if an increasingly large percentage of our young college graduates are financially crippled by student loan debt?

And things are about to get even worse.

If Congress takes no action, the interest rate on federal student loans is going to double to 6.8 percent on July 1st. That rate increase would affect more than 7 million students.

And debt burdens just continue to increase in size. In fact, according to one recent study, “70 per cent of the class of 2013 is graduating with college-related debt – averaging $35,200 – including federal, state and private loans, as well as debt owed to family and accumulated through credit cards.”

This is one reason why there is so much poverty among young adults in America today. As I mentioned in a previous article, families that have a head of household that is under the age of 30 have a poverty rate of 37 percent. For much more on the student loan debt bubble and how it is crippling an entire generation of Americans, please see my recent article entitled “29 Shocking Facts That Prove That College Education In America Is A Giant Money Making Scam“.

And of course delinquency rates remain very high on other forms of debt as well. For example, delinquency rates on home mortgages have typically been around 2 to 3 percent historically. But as you can see from the chart below, the delinquency rate on single-family residential mortgages is currently close to 10 percent…

So are we really having an “economic recovery”?

Of course not.

Things are good for those that have lots of money in the stock market (for now), but for the vast majority of Americans things continue to get worse.

And we continue to forget the lessons that we should have learned from the financial crisis of 2008. Right now, we are seeing a resurgence of cash out financing. But this time, people are leveraging their inflated stock portfolios instead of their home equity. The following is from a CNN report…

The recent run-up in the market, financial advisers say, has led to a resurgence of the type of loan not seen since the end of the housing boom — cash out financing. But this time, though, people aren’t tapping their inflated house for money. These days stock portfolios appear to be the well of choice.

Financial planners say in recent months clients have taken out so-called margin loans to buy real estate, fund small business acquisitions, or to provide gap financing before a traditional loan could be secured from a bank.

“No one wants to be out of the market for 90 days,” says Mark Brown, a financial planner for Brown Tedstron in Denver. “People just don’t want to sell right now.”

We are a nation that is absolutely addicted to debt. We know that it is wrong, but we just can’t help ourselves.

We are like the 900 pound man that recently died. He knew that he was eating himself to death, but he just couldn’t stop.

In the end, we are going to pay a great price for our gluttony. Everyone in the world can see that we are killing the greatest economy that ever existed, but we simply do not have the self-discipline to do anything about it.

The Colorado River, The High Plains Aquifer And The Entire Western Half Of The U.S. Are Rapidly Drying Up

May 23, 2013 by Michael

What is life going to look like as our precious water resources become increasingly strained and the western half of the United States becomes bone dry? Scientists tell us that the 20th century was the wettest century in the western half of the country in 1000 years, and now things appear to be reverting to their normal historical patterns. But we have built teeming cities in the desert such as Phoenix and Las Vegas that support millions of people. Cities all over the Southwest continue to grow even as the Colorado River, Lake Mead and the High Plains Aquifer system run dry. So what are we going to do when there isn’t enough water to irrigate our crops or run through our water systems? Already we are seeing some ominous signs that Dust Bowl conditions are starting to return to the region. In the past couple of years we have seen giant dust storms known as “haboobs” roll through Phoenix, and 6 of the 10 worst years for wildfires ever recorded in the United States have all come since the year 2000. In fact, according to the Los Angeles Times, “the average number of fires larger than 1,000 acres in a year has nearly quadrupled in Arizona and Idaho and has doubled in every other Western state” since the 1970s. But scientists are warning that they expect the western United States to become much drier than it is now. What will the western half of the country look like once that happens?

A recent National Geographic article contained the following chilling statement…

The wet 20th century, the wettest of the past millennium, the century when Americans built an incredible civilization in the desert, is over.

Much of the western half of the country has historically been a desolate wasteland. We were very blessed to enjoy very wet conditions for most of the last century, but now that era appears to be over.

To compensate, we are putting a tremendous burden on our fresh water resources. In particular, the Colorado River is becoming increasingly strained. Without the Colorado River, many of our largest cities simply would not be able to function. The following is from a recent Stratfor article…

The Colorado River provides water for irrigation of roughly 15 percent of the crops in the United States, including vegetables, fruits, cotton, alfalfa and hay. It also provides municipal water supplies for large cities, such as Phoenix, Tucson, Los Angeles, San Diego and Las Vegas, accounting for more than half of the water supply in many of these areas.

In particular, water levels in Lake Mead (which supplies most of the water for Las Vegas) have fallen dramatically over the past decade or so. The following is an excerpt from an article posted on Smithsonian.com…

And boaters still roar across Nevada and Arizona’s Lake Mead, 110 miles long and formed by the Hoover Dam. But at the lake’s edge they can see lines in the rock walls, distinct as bathtub rings, showing the water level far lower than it once was—some 130 feet lower, as it happens, since 2000. Water resource officials say some of the reservoirs fed by the river will never be full again.

Today, Lake Mead supplies approximately 85 percent of the water that Las Vegas uses, and since 1998 the water level in Lake Mead has dropped by about 5.6 trillion gallons.

So what happens if Lake Mead continues to dry up?

Well, the truth is that it would be a major disaster…

Way before people run out of drinking water, something else happens: When Lake Mead falls below 1,050 feet, the Hoover Dam’s turbines shut down – less than four years from now, if the current trend holds – and in Vegas the lights start going out.

Ominously, these water woes are not confined to Las Vegas. Under contracts signed by President Obama in December 2011, Nevada gets only 23.37% of the electricity generated by the Hoover Dam. The other top recipients: Metropolitan Water District of Southern California (28.53%); state of Arizona (18.95%); city of Los Angeles (15.42%); and Southern California Edison (5.54%).

You can always build more power plants, but you can’t build more rivers, and the mighty Colorado carries the lifeblood of the Southwest. It services the water needs of an area the size of France, in which live 40 million people. In its natural state, the river poured 15.7 million acre-feet of water into the Gulf of California each year. Today, twelve years of drought have reduced the flow to about 12 million acre-feet, and human demand siphons off every bit of it; at its mouth, the riverbed is nothing but dust.

Nor is the decline in the water supply important only to the citizens of Las Vegas, Phoenix, and Los Angeles. It’s critical to the whole country. The Colorado is the sole source of water for southeastern California’s Imperial Valley, which has been made into one of the most productive agricultural areas in the US despite receiving an average of three inches of rain per year.

You hardly ever hear about this on the news, but the reality is that this is a slow-motion train wreck happening right in front of our eyes.

Today, the once mighty Colorado River runs dry about 50 miles north of the sea. The following is an excerpt from an excellent article by Jonathan Waterman about what he found when he went to investigate this…

Fifty miles from the sea, 1.5 miles south of the Mexican border, I saw a river evaporate into a scum of phosphates and discarded water bottles. This dirty water sent me home with feet so badly infected that I couldn’t walk for a week. And a delta once renowned for its wildlife and wetlands is now all but part of the surrounding and parched Sonoran Desert. According to Mexican scientists whom I met with, the river has not flowed to the sea since 1998. If the Endangered Species Act had any teeth in Mexico, we might have a chance to save the giant sea bass (totoaba), clams, the Sea of Cortez shrimp fishery that depends upon freshwater returns, and dozens of bird species.

So let this stand as an open invitation to the former Secretary of the Interior and all water buffalos who insist upon telling us that there is no scarcity of water here or in the Mexican Delta. Leave the sprinklered green lawns outside the Aspen conferences, come with me, and I’ll show you a Colorado River running dry from its headwaters to the sea. It is polluted and compromised by industry and agriculture. It is overallocated, drought stricken, and soon to suffer greatly from population growth. If other leaders in our administration continue the whitewash, the scarcity of knowledge and lack of conservation measures will cripple a western civilization built upon water.

Further east, the major problem is the drying up of our underground water resources.

In the state of Kansas today, many farmers that used to be able to pump plenty of water to irrigate their crops are discovering that the water underneath their land is now gone. The following is an excerpt from a recent article in the New York Times…

Vast stretches of Texas farmland lying over the aquifer no longer support irrigation. In west-central Kansas, up to a fifth of the irrigated farmland along a 100-mile swath of the aquifer has already gone dry. In many other places, there no longer is enough water to supply farmers’ peak needs during Kansas’ scorching summers.

And when the groundwater runs out, it is gone for good. Refilling the aquifer would require hundreds, if not thousands, of years of rains.

So what is going to happen to “the breadbasket of the world” as this underground water continues to dry up?

Most Americans have never even heard of the Ogallala Aquifer, but it is one of our most important natural resources. It is one of the largest sources of fresh water on the entire planet, and farmers use water from the Ogallala Aquifer to irrigate more than 15 million acres of crops each year. It covers more than 100,000 square miles and it sits underneath the states of Texas, New Mexico, Oklahoma, Colorado, Kansas, Nebraska, Wyoming and South Dakota.

Unfortunately, today it is being drained dry at a staggering rate. The following are a few statistics about this from one of my previous articles…

1. The Ogallala Aquifer is being drained at a rate of approximately 800 gallons per minute.

2. According to the U.S. Geological Survey, “a volume equivalent to two-thirds of the water in Lake Erie” has been permanently drained from the Ogallala Aquifer since 1940.

3. Decades ago, the Ogallala Aquifer had an average depth of approximately 240 feet, but today the average depth is just 80 feet. In some areas of Texas, the water is gone completely.

So exactly what do we plan to do once the water is gone?

We won’t be able to grow as many crops and we will not be able to support such large cities in the Southwest.

If we have a few more summers of severe drought that are anything like last summer, we are going to be staring a major emergency in the face very rapidly.

If you live in the western half of the country, you might want to start making plans for the future, because our politicians sure are not.

7 Things About The Mainstream Media That They Do Not Want You To Know

May 22, 2013May 20, 2013 by Michael

Have you ever wondered who controls the mainstream media? In America today, we are more “connected” than ever. The average American watches 153 hours of television a month, and we also spend countless hours watching movies, playing video games, listening to music, reading books and surfing the Internet. If someone could control the production of all of that media, that would make them immensely powerful. They would literally be in a position to tell people what to think. Well, what if I told you that there are just six enormous media conglomerates that combine to produce about 90 percent of all the media that Americans consume. Would that alarm you? It should alarm you. The truth is that our attitudes, opinions and beliefs are greatly shaped by what we allow into our minds. After all, they don’t call it “programming” for no reason. Even those of us that realize that we are connected to “the matrix” probably greatly underestimate the tremendous influence that the media has over us. We live at a time when it is absolutely imperative to think for ourselves, but most Americans are being absolutely overwhelmed with information and seem more than content to let others do their thinking for them. Sadly, this is greatly contributing to the downfall of our society.

And of course the mainstream media desperately does not want you to look at “the man behind the curtain”. They just want you to stay plugged into the “programming” that they are feeding you without asking any questions.

Fortunately, a growing minority of Americans are waking up and are starting to reject the mainstream media. An increasing number of people are beginning to recognize that the mainstream media is the mouthpiece of the establishment and that it is promoting the agenda of the establishment.

So why is the mainstream media so bad? The following are 7 things about the mainstream media that they do not want you to know…

#1 The Mainstream Media Has Very Deep Ties To The Establishment

Did you know that the president of CBS and the president of ABC both have brothers that are top officials in the Obama administration?

The big news networks have developed an almost incestuous relationship with the federal government in recent years. But of course the same could be said of the relationship that the media has with the big corporations that own stock in their parent companies and that advertise on their networks.

This is one of the reasons why we very rarely ever see any hard hitting stories on the big networks anymore. The flow of information through the corporate-dominated media is very tightly controlled, and there are a lot of gatekeepers that make sure that the “wrong stories” don’t get put out to the public. As a result, many of the “big stories” that have come out in recent years were originally broken by the alternative media.

#2 The Mainstream Media Gets Things Wrong Very Frequently

Even prominent members of the mainstream media admit that this is the case. For example, during a recent speech at Quinnipiac University CBS anchor Scott Pelley confessed that journalists in the mainstream media “are getting big stories wrong, over and over again”…

“Let me take the first arrow: During our coverage of Newtown, I sat on my set and I reported that Nancy Lanza was a teacher at the school. And that her son had attacked her classroom. It’s a hell of a story, but it was dead wrong. Now, I was the managing editor, I made the decision to go ahead with that and I did, and that’s what I said, and I was absolutely wrong. So let me just take the first arrow here.”

#3 The American Public Does Not Consider The Media To Be Very Trustworthy

Trust in the mainstream media has definitely been slipping. In fact, a Gallup poll taken last year found that distrust of the media had reached an all-time high. According to that poll, 60 percent of Americans “have little or no trust” that the media is reporting the news accurately.

A separate Rasmussen Reports survey found that only 6 percent of all Americans consider the news media to be “very trustworthy”.

Hopefully this trend will accelerate and a lot more people will stop trusting the media blindly.

#4 The Mainstream Media And The Politicians That They Worship Hate The Fact That They Cannot Control Internet News Sites

In the old days, the mainstream media had a virtual monopoly on the news. But these days, anyone with an Internet connection can put up a news site, and this is driving the establishment absolutely bonkers.

For example, Barack Obama is known to have a great dislike for the alternative media. The following is from a recent WND article…

NBC News Political Director Chuck Todd says President Obama was making it “clear” at the White House Correspondents’ Dinner over the weekend how he feels about the rise of Internet news sites like Politico, Buzzfeed and … well, WND.

“He hates it.”

Appearing on “Meet the Press” Sunday morning following Saturday night’s media, politics and celebrity soiree, Todd explained the president’s disdain for independent online news sources was showing during his speech.

“It did seem … I thought his pot shots, joke-wise, and then the serious stuff about the Internet, the rise of the Internet media and social media and all that stuff – he hates it, OK? He hates this part of the media,” Todd said. “He really thinks that the, sort of, the buzzification – this isn’t just about Buzzfeed or Politico and all this stuff – he thinks that sort of coverage of political media has hurt political discourse. He hates it. And I think he was just trying to make that clear last night.”

#5 The Mainstream Media Is Extremely Liberal

When it comes to politics, the mainstream media is far more liberal than the general population is.

For example, one survey found that 41 percent of American voters believe that the average reporter is more liberal than they are, while only 18 percent believe that the average reporter is more conservative than they are.

A very disturbing UCLA study on media bias discovered that the vast majority of media outlets are “left of center”…

Of the 20 major media outlets studied, 18 scored left of center, with CBS’ “Evening News,” The New York Times and the Los Angeles Times ranking second, third and fourth most liberal behind the news pages of The Wall Street Journal.

And even MSNBC has confirmed the liberal bias of the media. According to MSNBC, mainstream journalists are far more likely to donate their own money to Democrats than they are to Republicans…

MSNBC.com identified 143 journalists who made political contributions from 2004 through the start of the 2008 campaign, according to the public records of the Federal Election Commission. Most of the newsroom checkbooks leaned to the left: 125 journalists gave to Democrats and liberal causes. Only 16 gave to Republicans. Two gave to both parties.

#6 Six Mammoth Media Corporations Produce About 90 Percent Of The Media That Americans Consume

As I mentioned at the top of this article, there are six giant media behemoths that control almost all of the media that we consume. These corporate giants own television networks, cable channels, movie studios, newspapers, magazines, publishing houses, video game makers, music labels and even many of our favorite websites.

The media ownership chart posted below originally comes from a previous article that I authored entitled “Who Owns The Media? The 6 Monolithic Corporations That Control Almost Everything We Watch, Hear And Read“, but it has been updated to reflect some of the latest information. The power that these companies have is so vast that it is hard to put into words…

Time Warner

CNN
Home Box Office (HBO)
Time Inc.
Turner Broadcasting System, Inc.
Warner Bros. Entertainment Inc.
CW Network (partial ownership)
TMZ
New Line Cinema
Time Warner Cable
Cinemax
Cartoon Network
TBS
TNT
America Online
MapQuest
Moviefone
Castle Rock
Sports Illustrated
Fortune
Marie Claire
DC Comics
People Magazine

Walt Disney

ABC Television Network
Disney Publishing
ESPN Inc.
Disney Channel
The History Channel
SOAPnet
A&E
Lifetime
Buena Vista Home Entertainment
Buena Vista Theatrical Productions
Buena Vista Records
Disney Records
Hollywood Records
Miramax Films
Touchstone Pictures
Walt Disney Pictures
Pixar Animation Studios
277 Radio Stations
Buena Vista Games
Hyperion Books

Viacom

Paramount Pictures
Paramount Home Entertainment
Black Entertainment Television (BET)
Comedy Central
Country Music Television (CMT)
Logo
MTV
MTV Canada
MTV2
Nick Magazine
Nick at Nite
Nick Jr.
Nickelodeon
Noggin
Spike TV
The Movie Channel
TV Land
VH1

News Corporation

Dow Jones & Company, Inc.
Fox Television Stations
The New York Post
TV Guide
Fox Searchlight Pictures
Beliefnet
Fox Business Network
Fox Kids Europe
Fox News Channel
Fox Sports Net
Fox Television Network
FX
My Network TV
MySpace
News Limited News
Phoenix InfoNews Channel
Phoenix Movies Channel
Sky PerfecTV
Speed Channel
STAR TV India
STAR TV Taiwan
STAR World
Times Higher Education Supplement Magazine
Times Literary Supplement Magazine
Times of London
20th Century Fox Home Entertainment
20th Century Fox International
20th Century Fox Studios
20th Century Fox Television
BSkyB
The Wall Street Journal
Fox Broadcasting Company
Fox Interactive Media
FOXTEL
HarperCollins Publishers
The National Geographic Channel
National Rugby League
News Interactive
News Outdoor
Radio Veronica
ReganBooks
Sky Italia
Sky Radio Denmark
Sky Radio Germany
Sky Radio Netherlands
STAR
Zondervan

CBS Corporation

CBS News
CBS Sports
CBS Television Network
CNET
Showtime
TV.com
CBS Radio Inc. (130 stations)
CBS Consumer Products
CBS Outdoor
CW Network (50% ownership)
Infinity Broadcasting
Simon & Schuster (Pocket Books, Scribner)
Westwood One Radio Network

Comcast

NBC
Bravo
CNBC
NBC News
MSNBC
NBC Sports
NBC Television Network
Oxygen
SciFi Magazine
Syfy (Sci Fi Channel)
Telemundo
USA Network
Weather Channel
Focus Features
NBC Universal Television Distribution
NBC Universal Television Studio
Paxson Communications (partial ownership)
Hulu
Universal Parks & Resorts
Universal Pictures
Universal Studio Home Video

#7 The American People Are Absolutely Addicted To The Mainstream Media

In a previous article about the media, I noted that the average American watches 153 hours of television a month.

When you allow that much information to be downloaded into your brain, it is going to have a dramatic impact on how you think.

Americans are more “connected” than they ever have been before. This is especially true of our kids. They are constantly on one sort of electronic device or another. The following is a brief excerpt from a recent article by Daniel Taylor…

According to a 2010 LA Times report, young people spend on average 53 hours a week watching TV, playing video games, and sitting at the computer.

Facebook users spend about 15 hours a month on the social networking site.

People are walking – and driving – blindly while texting, sometimes walking into fountains and even falling off cliffs.

If that Los Angeles Times report is true, that means that our young people are spending more than 200 hours a month connected to the media.

But we are only awake for about 480 hours a month.

When it comes to influencing the American people, nobody has more power than the big media companies do.

And until we can break this sick addiction to the mainstream media and get people to start thinking for themselves, we will never see widespread changes in our society. As long as people are being “programmed” by the mainstream media, they will continue to express the opinions, attitudes and beliefs that have been downloaded into their minds.

Please share this article with as many people as you can. It is crucial that we wake as many people up as possible while we still can.

An Even Bigger Scandal: Why Are IRS Audits Being Used To Punish Obama’s Political Enemies?

May 15, 2013 by Michael

Is it right for Barack Obama to use IRS audits to punish his political enemies? As crazy as that sounds, there is a mounting body of evidence that indicates that this is actually happening. And if this can be proven, it is a much, much larger scandal than the IRS giving “extra scrutiny” to the applications of conservative non-profit groups. Let me be clear – if Barack Obama has been using IRS audits to punish his political enemies, that is an impeachable offense. Of all of the other scandals that are out there right now, this is the one that could actually bring down the presidency of Barack Obama. That is how serious this is. As you will read about below, there is a huge amount of circumstantial evidence that political enemies of Barack Obama have been singled out for IRS audits. We need to find out who initiated these audits. Whether you are a Republican, a Democrat or an Independent, this kind of abuse of government power should sicken and horrify you. If it can be proven that Barack Obama has been using IRS audits to attack his enemies, every single U.S. citizen should be calling for him to resign. This is something that is beyond politics – this is a direct threat to the very integrity of our system.

The recent revelation that the IRS has been specifically targeting patriot groups and Tea Party organizations for “extra scrutiny” has opened up the floodgates. In recent days, a large number of highly respected people have come forward claiming that they were the subject of IRS audits that were politically motivated.

For example, Larry Conners, a respected local news anchor at KMOV Channel 4 in St. Louis, Missouri says that he was hit with an IRS audit almost immediately after he conducted an interview with Barack Obama in April 2012…

Shortly after I did my April 2012 interview with President Obama, my wife, friends and some viewers suggested that I might need to watch out for the IRS.

I don’t accept “conspiracy theories”, but I do know that almost immediately after the interview, the IRS started hammering me.

At the time, I dismissed the “co-incidence”, but now, I have concerns … after revelations about the IRS targeting various groups and their members.

Originally, the IRS apologized for red-flagging conservative groups and their members if they had “Tea Party” or “patriot” in their name.

Today, there are allegations that the IRS focused on various groups and/or individuals questioning or criticizing government spending, taxes, debt or how the government is run … any involved in limiting/expanding government, educating on the constitution and bill of rights, or social economic reform/movement.

In that April 2012 interview, I questioned President Obama on several topics: the Buffet Rule, his public remarks about the Supreme Court before the ruling on the Affordable Care Act. I also asked why he wasn’t doing more to help Sen. Claire McCaskill who at that time was expected to lose. The Obama interview caught fire and got wide-spread attention because I questioned his spending.

I said some viewers expressed concern, saying they think he’s “out of touch” because of his personal and family trips in the midst of our economic crisis.

The President’s face clearly showed his anger; afterwards, his staff which had been so polite … suddenly went cold.

That’s to be expected, and I can deal with that just as I did with President George H. Bush’s staff when he didn’t like my questions.

Journalistic integrity is of the utmost importance to me. My job is to ask the hard questions, because I believe viewers have a right to be well-informed. I cannot and will not promote anyone’s agenda – political or otherwise – at the expense of the reporting the truth.

What I don’t like to even consider … is that because of the Obama interview … the IRS put a target on me.

Can I prove it? At this time, no.

But it is a fact that since that April 2012 interview … the IRS has been pressuring me.

Reverend Franklin Graham, the son of Reverend Billy Graham, recently wrote a letter to Barack Obama claiming that the Billy Graham Evangelistic Association and Samaritan’s Purse were both hit with IRS audits very shortly after they ran full-page ads supporting North Carolina’s Marriage amendment. In fact, both organizations were notified about the audits on the same day. The following is from a recent article posted on redstate.com…

The man known as America’s pastor was among those targeted by the Internal Revenue Service after the Billy Graham Evangelistic Association ran newspaper advertisements promoting traditional marriage and biblical values.

“I am bringing this to your attention because I believe that someone in the Administration was targeting and attempting to intimidate us,” wrote Franklin Graham in a letter to President Obama. “This is morally wrong and unethical – indeed some would call it ‘un-American.’”

Graham is president of the Billy Graham Evangelistic Association as well as the international charity Samaritan’s Purse. Both organizations received word of audits on the same day – not long after they ran full –page ads supporting North Carolina’s Marriage amendment.

The ads encouraged voters to “cast our ballots for candidates who base their decisions on biblical principles and support the nation of Israel.”

The ad concluded with the words, “Vote for biblical values this November 6, and pray with me (Billy Graham) that America will remain one nation under God.”

Graham said on Sept. 6, 2012 they received notification that the IRS would audit their taxes.

“In light of what the IRS admitted to on Friday, May 10, 2013, and subsequent revelations from other sources, I do not believe that the IRS audit of our two organizations last year is a coincidence – or justifiable,” Graham wrote.

You can find a full copy of Franklin Graham’s letter to Barack Obama right here.

The Blaze is reporting on another example of this phenomenon. A respected Catholic professor that had written things critical of the Obama administration was hit with an IRS audit that she believes was politically motivated…

On Wednesday, Dr. Anne Hendershott, a devout Catholic and a noted sociologist, professor and author, exclusively told The Blaze that she believes she may have been one of the IRS’s targets.

According to Hendershott, the IRS audited her in 2010 and demanded to know who was paying her and “what their politics were.”

It all started with a phone call she received at her home in May of that year — a call during which Hendershott was told she would be audited. A letter that followed on May 19, 2010 solidified the IRS’s request to meet her in person two months later in July.

Unfortunately, these are not just isolated incidents. In fact, attorney Cleta Mitchell recently told Newsmax that she has seen a systematic pattern of politically motivated IRS harassment that only began once Barack Obama entered the White House…

In the case of one such client, she and her family subsequently became targets for audits to their personal and business tax returns, and were even visited by three different government agencies. She also knows of other groups who had surprise visits from the FBI after they applied for IRS status.

Mitchell said she doesn’t believe the president or the White House was uninvolved in the IRS activities, as the administration has claimed.

“I’ve thought for some time that this is politically motivated and that’s the reason it was happening. And, as I said, I’ve been doing this for more than 20 years and I’ve never seen anything like this until 2009, 2010. And the only thing that changed was we had a different administration,” she said.

There are some that have been trying to bring awareness to these politically motivated audits for quite some time. One of these individuals is a former classmate of Obama’s named Wayne Allyn Root…

“I feel like a million bucks. I feel absolutely vindicated. I knew this was going on,” Wayne Allyn Root told WND.

Root, the Libertarian Party vice-presidential candidate in 2008 who has claimed Obama was strangely unknown to him and his fellow Columbia University classmates, recounted his story to WND last October of becoming the target of unusual audits, beginning in January 2011, despite a “spotless” 30-year tax record.

He charged in October that the order to audit him came from Obama himself, and he is even more convinced now.

“I believe this is not rogue agents, who would be risking their pension and careers,” he said.

In October, Root said the order to audit him “must have come from the highest levels of government.”

“Obama is using the power of the IRS and other government agencies to punish his political opposition and intimidate and silence his critics,” Root charged at the time.

In that same article, a number of other examples of this phenomenon were cited…

Last year, billionaire Frank VanderSloot became the target of investigations by both the IRS and the Labor Department after he gave $1 million to a super PAC that supported Republican presidential nominee Mitt Romney. The GOP’s biggest donor, Las Vegas casino magnate Sheldon Adelson, said a federal criminal investigation into his company’s business practices was politically motivated. Another casino giant, Steve Wynn, also has been investigated.

This week, Root has received many emails from people who identify as conservative and believe the IRS has been harassing them for political reasons.

What happened to businessman Frank VanderSloot is particularly noteworthy. The following is from an article that Rob Bluey authored last year…

On April 20, President Obama’s campaign named VanderSloot to the first presidential “enemies list” since the Nixon era. Eight private citizens were singled out for their donations to Romney. They committed no crimes, sought no attention, and yet they became the subject of Obama’s scorn.

VanderSloot is now facing persecution from the federal government. Kimberly Strassel reveals in The Wall Street Journal that two federal agencies — the Internal Revenue Service and Labor Department — both launched investigations of VanderSloot after his name appeared on Obama’s enemies list.

No matter what you think of Obama’s politics, shouldn’t we all be deeply alarmed that he has an “enemies list”?

With each passing day, the similarities between Barack Obama and Richard Nixon become more glaring.

And Obama has even joked about sending the IRS after people that he does not like. When Obama found out that he was not going to be receiving an honorary doctorate from Arizona State University, he made the following statement…

“President [Michael] Crowe and the Board of Regents will soon learn all about being audited by the IRS.”

The IRS is not supposed to be used as a weapon, and the White House is not allowed to use information gathered by the IRS for political gain either. But apparently last year someone at the IRS was leaking tax information to someone within the Obama campaign. The following is from a recent article by Matt K. Lewis…

A little over a year ago, I reported that, ”It is likely that someone at the Internal Revenue Service illegally leaked confidential donor information showing a contribution from Mitt Romney’s political action committee to the National Organization for Marriage, says the group.”

Now — on the heels of news the IRS’s apology for having targeted conservative groups — NOM is renewing their demand that the Internal Revenue Service reveal the identity of the people responsible.

“There is little question that one or more employees at the IRS stole our confidential tax return and leaked it to our political enemies, in violation of federal law,” said NOM’s president Brian Brow, in a prepared statement. “The only questions are who did it, and whether there was any knowledge or coordination between people in the White House, the Obama reelection campaign and the Human Rights Campaign. We and the American people deserve answers.”

The IRS has been doing all sorts of things that they should not be doing. They are a rogue agency that is completely out of control.

In fact, one new lawsuit alleges that the IRS stole the health records of approximately 10 million Americans…

The Internal Revenue Service is now facing a class action lawsuit over allegations that it improperly accessed and stole the health records of some 10 million Americans, including medical records of all California state judges.

According to a report by Courthousenews.com, an unnamed HIPAA-covered entity in California is suing the IRS, alleging that some 60 million medical records from 10 million patients were stolen by 15 IRS agents. The personal health information seized on March 11, 2011, included psychological counseling, gynecological counseling, sexual/drug treatment and other medical treatment data. “This is an action involving the corruption and abuse of power by several Internal Revenue Service agents,” the complaint reads. “No search warrant authorized the seizure of these records; no subpoena authorized the seizure of these records; none of the 10,000,000 Americans were under any kind of known criminal or civil investigation and their medical records had no relevance whatsoever to the IRS search. IT personnel at the scene, a HIPPA facility warning on the building and the IT portion of the searched premises, and the company executives each warned the IRS agents of these privileged records,” it continued.

And guess what?

The IRS is going to be the primary government agency in charge of implementing Obamacare.

Will we soon see the IRS use health information to attack the political enemies of the man or woman sitting in the White House?

Unfortunately, thanks to new “Big Brother” technology that the IRS has been implementing, pretty soon there will be very little about us that the IRS does not know. The following is from a recent article by Richard Satran of U.S. News & World Report…

Consumers are already familiar with Internet “cookies” that track their movements and send them targeted ads that follow them to different websites. The IRS has brought in private industry experts to employ similar digital tracking—but with the added advantage of access to Social Security numbers, health records, credit card transactions and many other privileged forms of information that marketers don’t see.

“Private industry would be envious if they knew what our models are,” boasted Dean Silverman, the agency’s high-tech top gun who heads a group recruited from the private sector to update the IRS, in a comment reported in trade publications.

So what is the IRS going to do with all of this information?

Well, the following are just a few of the things that they have already said that they plan to do with it…

• Charting and analyzing social media such as Facebook

• Targeting audits by matching tax filings to social media or electronic payments

• Tracking individual Internet addresses and emailing patterns

• Sorting data in 32,000 categories of metadata and 1 million unique “attributes”

• Machine learning across “neural” networks

• Statistical and agent-based modeling

• Relationship analysis based on Social Security numbers and other personal identifiers

So are you alarmed by all of this?

You should be.

As I discussed in my previous article entitled “100 Years Old And Still Killing Us: America Was Much Better Off Before The Income Tax“, Congress should close the doors of the IRS and throw away the key. It is a deeply, deeply corrupt government agency that has gotten wildly out of control.

After what you have just read above, is there anyone out there that would disagree with me?

An Interview With Barack Obama About The IRS Scandal, AP Phone Records And Benghazi

May 14, 2013May 14, 2013 by Michael

Does Barack Obama have any idea what is going on in the government that he is supposedly running? Scandals are erupting all around him, and he supposedly was not aware that any wrongdoing had taken place in any of those instances. It is almost as if every major government agency has gone rogue and Obama has no idea what the heck they are doing. According to Obama, he often doesn’t learn what those under his authority are up to until he sits down and turns on the news. Should we believe him when he claims ignorance over and over again, or is Obama just trying to protect himself? Whether you are a Republican, a Democrat or an Independent, the revelations that have come out in recent days about the IRS, the seizure of AP phone records and Benghazi should be very alarming to you. Taken together, these scandals paint a picture of a federal government that has become drunk with power, and no matter where you may fall on the political spectrum that is something that nobody should want.

Posted below is a fictional interview that I have created between an anonymous reporter and Barack Obama about the IRS scandal, the seizure of AP phone records, Benghazi and other sensitive topics. Yes, this interview is a bit absurd, but so is the notion that Barack Obama is completely ignorant about so many important things that are going on inside his own government…

REPORTER: “President Obama, the IRS has publicly admitted that they were specifically targeting patriot groups and Tea Party organizations for ‘extra scrutiny’. When did you first learn about this?”

REPORTER: “But how is that possible? We have now learned that the targeting of patriots and Tea Party groups began as early as March 2010. The head of the IRS tax-exempt organizations division was informed about this targeting in June 2011, the chief counsel for the IRS knew about this targeting by August 2011, the deputy commissioner for services and enforcement knew about this targeting by March 2012, and IRS Commissioner Steven T. Miller knew about this targeting by May 2012. Throughout this period of time, the IRS repeatedly lied to Congress when they were specifically asked about the targeting of conservative groups. Are you claiming that nobody from your administration ever had any contact with anyone from the IRS about this?”

REPORTER: That is what the IRS was claiming at first. But now the Washington Post is reporting that “IRS officials at the agency’s Washington headquarters sent queries to conservative groups asking about their donors and other aspects of their operations, while officials in the El Monte and Laguna Niguel offices in California sent similar questionnaires to tea-party-affiliated groups.” That would seem to indicate that this was being coordinated on a nationwide level by someone at the IRS. Would you care to comment on that?

REPORTER: But you were just commenting on it. Don’t you think that the American people deserve the truth about this?

REPORTER: Okay, let’s switch gears. Did you know that the Justice Department was spying on AP reporters just months before the 2012 election? Did you know that two months of cellular, office and home telephone records were secretly obtained without any explanation last April and May?

REPORTER: The Associated Press is now the enemy? Without a free and independent media, what would keep us from descending into tyranny?

REPORTER: But shouldn’t we be alarmed when government agencies target specific groups of people for their political beliefs? Breitbart is reporting that the EPA “has routinely charged conservative and watchdog groups fees that the agency has waived for the mainstream media and ‘green’ groups”. Do you know anything about this?

REPORTER: I understand that these are tougher questions than you normally get from the media. But I think that the American people deserve some answers. For example, would you like to discuss Benghazi?

REPORTER: Very funny Mr. President. What about the Fast and Furious scandal? Would you be willing to talk about that?

REPORTER: Are there any difficult subjects that you would be willing to discuss? I have questions here about the Secret Service prostitution scandal, Solyndra, the new NSA spy center out in Utah, government ammunition stockpiling, the NDAA, drone strikes, Jeremiah Wright, Tony Rezko and Bill Ayers. Would you be willing to answer any of those questions?

America’s Roads Have Been Turned Into A Revenue Generating Surveillance Grid

May 9, 2013 by Michael

What do speed traps, parking tickets, toll roads, speed cameras and red light cameras all have in common? They are all major revenue sources for state and local governments. All over America today there are state and local governments that are drowning in debt. Many have chosen to use “traffic enforcement” as a way to raise desperately needed revenue. According to the National Motorist Association, issuing speeding tickets raises somewhere between 4.5 billion and 6 billion dollars in the United States each year. And the average price of a speeding ticket just keeps going up. Today, the national average is about $150, but in many jurisdictions it is far higher. For example, more than 16 million traffic tickets are issued in the state of California each year, and the average fine is approximately $250. If you are wealthy that may not be much of a problem, but if you are a family that is barely scraping by every month that can be a major financial setback. Meanwhile, America’s roads are also being systematically transformed into a surveillance grid. The number of cameras watching our roads is absolutely exploding, and automated license plate readers are capturing hundreds of millions of data points on all of us. As you drive down the highway, a police vehicle coming up behind you can instantly read your license plate and pull up a whole host of information about you. This happened to me a few years ago. I had pulled on to a very crowded highway in Virginia and within less than a minute a cop car had scanned me and was pulling me over because one of my stickers had expired. But these automated license plate readers are being used for far more than just traffic enforcement now. For example, officials in Washington D.C. are now using automated license plate readers to track the movements of every single vehicle that enters the city. They know when you enter Washington, and they know when you leave. So where is all of this headed? Do we really want to live in a “Big Brother” society where the government constantly tracks all of our movements?

Back in the old days, the highways of America were great examples to the rest of the world of the tremendous liberties and freedoms that we enjoyed. Americans loved to hop into their vehicles and take a drive. But now government is sucking all of the fun out of driving. The control freak bureaucrats that dominate our political system have figured out that giant piles of money can be raised by turning our roads into revenue raising tools.

At this point things have gotten so bad that even some police officers are admitting what is going on. Just check out what a few of them told Car and Driver…

The president of a state police union isn’t pretending it doesn’t happen. James Tignanelli, president of the Police Officers Association of Michigan union, says, “When elected officials say, ‘We need more money,’ they can’t look to the department of public works to raise revenues, so where do they find it? Police departments.

“A lot of police chiefs will tell you the goal is to have nobody speeding through their community, but heaven forbid if it should actually happen—they’d be out of money,” Tignanelli says.

Police Chief Michael Reaves of Utica, Michigan, says the role of law enforcement has changed over the years. “When I first started in this job 30 years ago, police work was never about revenue enhancement, but if you’re a chief now, you have to look at whether your department produces revenues,” he says. “That’s just the reality nowadays.”

And as the economy has gone downhill, many jurisdictions have massively jacked up traffic fines. According to the Los Angeles Times, various traffic fines in the Los Angeles area are far higher than they once were…

If you’re caught running a red light in Los Angeles, be prepared to shell out $446, up from $271 eight years ago. Make a rolling right turn at a stoplight and the ticket comes to $381 — more than double what it cost in 2008.

And of course the cost to the driver does not end with the ticket. Your car insurance will likely go up as well. In fact, one study found that a driver that just gets one speeding ticket will pay an additional 20 percent for car insurance for the next three to six years.

That can add up to a lot of money.

But politicians just keep wanting to find a way to issue even more tickets. One of the hottest trends all over the country is to automate the issuing of traffic tickets by installing cameras. According to USA Today, this has become a huge growth industry…

Sales of the cameras have nearly quadrupled since companies moved to digital and wireless technology in the mid-2000s. The number of local contracts for cameras was up to 689 last year, from 155 in 2005, according to industry data complied by market leader American Traffic Solutions (ATS).

And these automated traffic cameras can raise an enormous amount of cash. Just check out what has been happening in Washington D.C.…

The speeding and traffic light cameras have become more lucrative as their number in the District has increased. Combined, they issued tickets valued at $24.4 million in 2007. That figure more than doubled by 2010, to $50.9 million, and it reached $84.9 million in the last fiscal year.

But as annoying as those traffic cameras are, automated license plate readers are perhaps even more insidious.

The amount of data that these automated license plate readers are capturing is astounding. The following is from a recent article by the Electronic Frontier Foundation…

Photographing a single license plate one time on a public city street may not seem problematic, but when that data is put into a database, combined with other scans of that same plate on other city streets, and stored forever, it can become very revealing. Information about your location over time can show not only where you live and work, but your political and religious beliefs, your social and sexual habits, your visits to the doctor, and your associations with others. And, according to recent research reported in Nature, it’s possible to identify 95% of individuals with as few as four randomly selected geospatial datapoints (location + time), making location data the ultimate biometric identifier.

Our license plates have essentially become “our papers” which the government can read whenever it would like without even asking for our permission.

According to L.A. Weekly, local police agencies in the L.A. area have captured more than 160 million data points on private citizens using these automated license plate readers…

L.A. Weekly has learned that more than two dozen law enforcement agencies in Los Angeles County are using hundreds of these “automatic license plate recognition” devices (LPRs) — units about the size of a paperback book, usually mounted atop police cruisers — to devour data on every car that catches their electronic eye.

The L.A. County Sheriff’s Department and the Los Angeles Police Department are two of the biggest gatherers of automatic license plate recognition information. Local police agencies have logged more than 160 million data points — a massive database of the movements of millions of drivers in Southern California.

Each data point represents a car and its exact whereabouts at a given time. Police have already conducted, on average, some 22 scans for every one of the 7,014,131 vehicles registered in L.A. County.

As the use of these devices becomes more widespread and they become even more sophisticated, eventually the government will know where almost all of us are and what almost all of us are doing at all times.

The following is a brief except from a Washington Post article that detailed how automated license plate readers are now being used to create a “dragnet” that will track the movements of all vehicles from the time that they enter Washington D.C. to the time that they leave…

More than 250 cameras in the District and its suburbs scan license plates in real time, helping police pinpoint stolen cars and fleeing killers. But the program quietly has expanded beyond what anyone had imagined even a few years ago.

With virtually no public debate, police agencies have begun storing the information from the cameras, building databases that document the travels of millions of vehicles.

Nowhere is that more prevalent than in the District, which has more than one plate-reader per square mile, the highest concentration in the nation. Police in the Washington suburbs have dozens of them as well, and local agencies plan to add many more in coming months, creating a comprehensive dragnet that will include all the approaches into the District.

This is just the beginning.

For now, as long as you carefully obey all traffic laws and you don’t work in a major city like Washington D.C., the changes that are happening probably do not affect you too much.

But the key is to see where all of this is going. Our roads are slowly but surely being transformed into a revenue generating control grid. And this is just yet another example of how government feels the need to constantly watch, monitor, track and regulate everything that we do.

Does anyone else feel like the life is slowly being choked out of our society, or am I alone?

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