meltdown (8)

Clinton Legacy NOT 'Tangled Web' but Gordian Knot


Clinton Legacy NOT a “Tangled web,” but a Gordian Knot

            As we hear President Elect Trump saying, “I don’t want to hurt the Clinton’s” – implying that his administration will have little or no interest in prosecuting the former Secretary of State for her mass perjuries before the House Oversight Committee and lies before the American Public; her part in the play-for-pay Clinton slush fund/Foundation; and 23 violations of the nation’s Secrets Act . . . with up to 2,100 counts involved – it’s hard not to marvel at the level of corruption this one semi-dynastic family exhibited on the stage of the American body politic.

            Let us, however, like Alexander the Great when facing the challenge of the Gordian Knot (legend said that the person who could undo the taut and complex knot tied by Gordius would rule Asia), let’s us stick to basics.  Alexander quickly slipped his sword from its scabbard and slashed the infamous philosopher’s challenge into thirty limp pieces of 140-year old rope. 

Here is the one great crime that President Bill Clinton committed that no one recognizes.  From the bottom of p.517 and top of p. 518 this short paragraph in WJC’s autobiography My Life, tells America everything we citizens need to know about progressivism (confidence in big ever-expanding government funded by ever-growing taxes to be the be-all and end-all of all potential problems forever, AMEN!  However, since we the citizens are coming to realize that government is the agency with the stick, whip and gun and not the carrot, most of us worship at the church of “Government is NOT the solution, government is the problem” (Ronald Reagan).  Here’s what Slick-Willy Clinton had to say in his book published in 2004:

“One of the most effective things we did was to reform the regulations governing financial institutions under the 1977 Community Reinvestment Act (CRA’77).  The law required federally insured lenders to make an extra effort to give loans to low- and modest-income borrowers, but before 1993 it had never had much impact.  After the changes we made, between 1993 and 2000 (sic:  January 2001 = 8 years in office), banks would offer more than $800 billion in home mortgage, small-business, and community development loans to borrowers covered by the law, a staggering figure that amounted to well over 90 percent of all the loans made in the 23- (sic: 24-) year history of the Community Reinvestment Act.”


                It’s truly a shocking thing that virtually no one in America understands what you just read.  Bill Clinton is not just confessing about creating the Great Fiscal Meltdown of 2007 – present; oh no, he is actually bragging about it.  He assumes that the reader of his autobiography will be too stupid to check out the full impact of the facts he’s given and will instead merely assume that Bill Clinton’s intentions were good and that’s all that matters.  There’s probably a 100-page expose on progressivism that could help explain it all, but let’s keep things simple, let’s slash our way through the Gordian Knot.

                These are the facts:

1)      The American mortgage-loan industry was not broken in January, 1977, when progressive President Jimmy Carter assumed office with a great majority of progressive Democrats and a few progressive Republicans joining him.  America had the highest private home ownership rate in the world by far (62-65%) depending upon the economy; and most telling of all the Suspect Loan Rate was a miniscule 0.24%.  The progressives who had just seen a great success in using the Cloward-Piven strategy to more than double the nation’s welfare rolls between 1969 and 1973 and send the economy and the stock market into a monster tailspin using something they called the NWRO (National Welfare Rights Organization) to create a crisis that bankrupted New York City and almost bankrupted New York State and every big city and big-city state in the country.

2)      They quickly realized that CRA’77 was a bit more challenging and set up Arkansas, Bill Clinton’s state as a test case with the Arkansas Community Organization for Reform Now (A.C.O.R.N.) under NWRO veteran Wade Rathke at the helm.  Arkansas was chosen because Hillary Clinton was a well-known Saul Alinsky disciple who’d written her college thesis praising the self-described “neo-Marxist” and his radical work in the inner cities.  Alinsky, author of 1946’s Reveille for Radicals and 1971’s Rules for Radicals had tried to turn his Chicago organization over to her before he died in 1971.  Hillary was also the wife of an up-and-coming young attractive Arkansas Lieutenant Governor William Jefferson Clinton.  With A.C.O.R.N.’s help he would become governor of Arkansas and stay in that role for 12 of the 14 years following the elections of 1978.

3)      By 1987 with A.C.O.R.N. only active in one state, Arkansas, the American Suspect Loan Rate had more than doubled to 0.51%.  CRA’77 loans could be had for as little as 3% down!  A.C.O.R.N. now changed its name to the Association of Community Organizations for Reform Now and went active in all 50 states.  The push to get totally unqualified loan applicants into expensive new homes was fully underway . . . .

4)      Bill Clinton made three expansions of CRA’77 in the first four year term:  by presidential executive order in 1993; and twice by passing legislation both times in 1995.  By 1997, A.C.O.R.N.’s hard work (Community Organizer Barack Obama, by the way, was an A.C.O.R.N. attorney shaking down banks in Chicago) was starting to pay off . . . the nation’s Suspect Loan Rate now stood at 14.1%  (almost one in every seven home loans was so unsound it was virtually guaranteed to go into foreclosure).  CRA’77 loans were available to virtually any unqualified applicant who wanted one, who was able to fork over 2% as a down payment.

5)      During the height of the Monica Lewinsky scandal in 1998, Bill Clinton took time off to pass his fourth expansion of CRA’77.  This steroid-version expansion of CRA’77 forced loan companies to grant home loans to people without jobs; people with the most horrific credit ratings; people whose only “income” was food stamps; felons; tourists; and even illegal immigrants to receive loans for $225,000 – $480,000 homes. And it seemed that everyone buying a home was seeing its appraised value jumping skyward.  The Construction Industry Bubble and Sub-Prime Lending Bubble were dominating the news.  All these loans were being offered at 3% and lower down payments and many were executed with 0% down payment.

6)      Meanwhile in Texas, new Governor George W. Bush was passing a state law requiring a minimum down payment of 20%.  Later when he became president he struggled for over five years to pass a law repealing all of CRA’77.  Texas and Utah were the only states during the following dozen years that kept producing jobs and balanced budgets.  Everyone else was in the red.

7)      In mid-July 2005, G.W. Bush passed a too-little, too-late watered-down version of his effort to repeal CRA’77.  Much of the law is still on the books today . . . but that’s all he could get done.

8)      In 2007, the nation and the world (mortgage entities with perhaps 22,000 loans “bundled” together had been popular investments for some 29+ years now . . . after all, who doesn’t pay their mortgage?) this time, however, the investors were buying dog-crap paper wrapped in cat-crap paper.  There was no value in any of them.  Why?  Because the nation’s Suspect Loan Rates had reached 34.2%.  More than 1 in every three home loans was logically-doomed to end in foreclosure making virtually all the bonds worthless.  Iceland went bankrupt; Italy, Greece, Ireland, Spain, Portugal and Hungary were teetering on the brink.  In America, $5 million was lost during the stock market drop; 39.6% of all home value was lost putting even most long-term owners “upside-down” on their mortgages.  In a 2010 speech Treasury Secretary Tim Geithner who served under both President G.W. Bush and President Obama credited Bush’s passage of an anti-CRA’77 Act back in 2005 as “saving the nation” from even worse consequences.  Nevertheless 8.4 million jobs were lost and immense misery was endured around the globe.

So logically, for his part in Arkansas’s A.C.O.R.N. corruption; and in the nation’s A.C.O.R.N. collapse; and especially for his 1998 Steroid-Version Expansion of CRA’77:  Bill Clinton deserves even more “credit” than the 90% he claims in his autobiography, a full 99.5% of the credit/blame for creating the 2007 Great Fiscal Meltdown of the world’s economies.


Ya’all live long, strong and ornery,


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          One of the most common and frustrating complaints of fiscal-conservatives and Constitutional-conservatives is watching what a terribly inadequate job so-called conservative leaders do in articulating the nature of the mess in Washington and in putting the standard of truth forth against the never-ending progressive lies and distortions.  Recently, a nearby (Westminster, CO) weekly ran a letter to the editor dissing Mitt Romney and supporting Barack Obama in the form of a godawful parable about country life and muddy roads.  Here's the letter I wrote in response and expect to appear in the Westminster Window this Feb. 15th.


    Letter-to-editor writer Rich Stewart’s quaint (1/26) story imitated the approach of a Nazarene parablist (circa 33 A.D.) while attempting to discredit Republican presidential candidate Mitt Romney.  I am NOT a Romney supporter but totally DISrespect near-totalitarian big-government-deluded social-engineer Barack Obama. 

    A parable’s power lies in telling a simple story with universal application easy for ordinary folks to hear.  Mr. Stewart’s story missed the standard of simple-profundity badly because his parable lacked an underlying true analogy. 


              “Once a preacher named Obama drove a Deeeconomy SUV. Obama blamed the previous preacher because Deeeconomy was in the ditch all the time.  One day, however, we saw him deliberately drive into the ditch.  Then his principle supporter, Progreh Sivdemocrat got several thousand bags full of $100 bills and using them as kitty litter hoped to change things by providing traction for the preacher’s SUV.  Progreh Sivdemocrat’s big tractor got stuck and it took five hours, several other tractors, and a passel of farmers with hip boots, shovels and planks to free everyone.  Meanwhile the money flowed downriver and was eventually used by a blind friend of Preacher Obama as kindling for his fireplace."


    Translation:  in 1977, President Carter and his progressive congress passed CRA’77 aiming to give a private home to everyone, whether they could afford it or not.  Progressive president Clinton and ACORN helped expand CRA’77 four times (three times legislatively) so that 1977’s 0.24% suspect home loan rate expanded to 2007’s devastating 34.2% suspect loans many at 0% down payment to people without jobs or credit whose only “income” was food stamps  -- even to illegal aliens.  By the way, in fairness: one of the “stuck tractors” belonged to George H. W. Bush who won 45 of his 46 vetoes but did not veto the first expansion of CRA’77 in 1992.


    One more thing:  in 1930 it took a total of 57 seconds worth of work for the average American to pay off all his local, state and federal income taxes.  Today that average American works 99 days before he's free of income taxation; which doesn't include a host of other taxes including 7+% for state sales tax and huge gasoline taxes as well.


Ya'all live long, strong and ornery,


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This is from Personal Liberty;


Moe, Larry And Curly Bernanke

June 20, 2011 by Bob Livingston

Moe, Larry And Curly Bernanke
Federal Reserve Chairman Ben Bernanke said he wanted inflation. He got his wish. Now the question is: Is it getting out of hand?

In the 1940 short film “A Plumbing We Will Go,” The Three Stooges pose as plumbers trying to stop a leaky pipe in a large home while a party is going on.

Since they know nothing about plumbing, it isn’t long before the boys have connected the water pipes to a conduit and water is pouring out everywhere. Of course, the party is ruined and the house is wrecked.

Federal Reserve Chairman Ben Bernanke is Moe, Larry and Curly all rolled into one, and his efforts to stop the leaky economy have been as successful as the boys’ efforts were in fixing the dripping pipe. Bernanke’s latest effort of quantitative easing — known as QE2 — is running out, and the bubble he created is deflating faster than one of the Stooges’ helium-filled cakes.

Last week, a Chinese ratings house accused the United States of defaulting on its massive debt by allowing the dollar to weaken against other currencies — eroding the wealth of its creditors, the biggest of which is China.

China holds $1.145 trillion of U.S. Treasury securities. That is down from its peak of $1.175 trillion in October, according to a story by the AFP news service.

China, the No. 1 holder of U.S. debt, is now a seller of U.S. Treasuries. Japan, the second largest holder of U.S. Treasuries, may soon be a seller as well. It needs money to repair infrastructure following this year’s earthquake and tsunami.

The stock market was down six weeks in a row before last week, when it finally finished a week on an up note. According to The Economic Collapse blog, that hasn’t happened since the dotcom bubble burst in May 2001.

The false euphoria created by QE2, which propped up Bernanke’s Wall Street buddies by driving money into the market, has worn off. Investors realize this, and they are looking for new places to put their money.

Meanwhile, once again, John and Jane American are watching their meager retirement funds dry up. Unemployment is up (the true unemployment rate, which includes discouraged workers, is 22.3 percent, according to the National Inflation Association), manufacturing and consumer confidence are down and one in seven Americans is on food stamps. Millions of Americans receive some sort of government assistance.

The price of everything is increasing. According to NIA: “90% of sporting goods manufacturers have seen their input costs rise substantially this year and 41% of them have already announced major price increases for athletic apparel, footwear, and sports equipment. As the 8,000 toy manufacturers in China are forced to raise the wages they pay their employees, Toys R’ Us is now beginning to see major wholesale price increases for their products, which they will have to pass on to U.S. consumers. Hasbro recently raised prices on all of their products by 6% to 7%. Mattel recently imposed an across the board high single digit price increase after reporting a 33% decline in quarterly profits (despite sales surging by 8%) due to skyrocketing raw material costs.”

May sales reflected what consumers thought of the rising prices. Retail sales fell for the first time in 11 months. The drop in sales hit autos, electronics, appliances, furniture, groceries, sports retailers and department stores.

Bernanke said he wanted inflation. He got his wish. Now the question is: Is it getting out of hand?


Go here to read the rest of the article;

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“That’s right, in Texas they have part-time citizen lawmakers rather than a lot of professional politicians clogging up the scene all year round every single year.”
“. . . Texas dodged almost the full-brunt of the sub-prime lending crisis.” 
Texas Grows 38% of Nation’s New BLS Jobs;
            Like the silly unemployment numbers used by the Bureau of Labor Statistics (BLS) measuring new job growth across the nation by BLS nonsense is a lesson in frustration. Nevertheless, according to BLS statistics since the financial meltdown ended (officially we’ve been recovering since June 2009) one state (Texas) has dominated the new job generation picture. 38% of all new jobs in the nation were created in Texas. So it took entire rest of the country 49 states and Washington, D.C. taken altogether to create the 62% of our new jobs that Texas didn’t create. 
If instead of BLS statistics we use the far more accurate and straightforward non-farm payroll employment, Texas accounts for 45% of all new job creation.    Texas, North Dakota, Alaska and Washinton, D.C. are the only areas to show a net job growth since the beginning of the meltdown. The District of Columbia, of course, benefitted from the huge growth in government size created by the Obama administration’s stimulus and regulation and new agencies (one law alone, Obamacare, created 384 brand new federal government agencies) programs. 
Texas created roughly 72,000 more jobs, 266,000 in total) than the next two successful states (New York and Pennsylvania) put together and roughly 1,000 fewer jobs than the sum total of the other forty-seven states combined. This should come as no surprise since Texas is easily the most business friendly  free market state in the union. These kind of figures are one reason that Texas Governor Rick Perry (though so far he’s UNannounced, is considered an important and necessary candidate in the Republican presidential polling). 
Overall, eighteen states have lost jobs since the Obama-recovery began in June, 2009; California alone has lost 11,400 jobs. Thanks to Obama’s growth of government D.C. payrolls have increased 18,000 jobs since the meltdown began in mid 2007 compared to Texas’ 30,800 new jobs over the same period all the while the Lone Star State was eliminating government jobs and trial lawyer jobs (it’s harder for them to find work in Texas now due to new tort regulations that protect business and doctors from nuisance suits).
Besides the new tort laws, Texas has no state income tax. Its regulatory conditions are contained and flexible. It is fiscally responsible and government is small. Its right-to-work law doesn't impose unions on businesses or employees. It is always wide-open to global trade and competition. The words “government interference” are seldom heard in Texas where the state legislatute meets for roughly one-half year and then takes off the next eighteen months . . . that’s right, in Texas they have part-time citizen lawmakers rather than a lot of professional politicians clogging up the scene all year round, every single year.
Perhaps the single healthiest pro-jobs condition in Texas is the state rule in place since 1998, that limits mortgage borrowing to 80% of the appraised value of the home. Like a large minimum down payment, this reduces problems associated with over-leveraging and means Texas wasn't hurt nearly as badly by the housing crash as other states.   So Texas dodged almost the full-brunt of the sub-prime lending crisis. Think about these five facts (the next five paragraphs) . . .
In 1975 before the Carter administration created the Community Reinvestment Act of 1977 (CRA ’77) the questionable loan rate in the country was 0.24% of all home mortgages offered at 3% down payment or less (Texas, now, you’ll remember is requiring 20% minimum). The nation was largely operating as a free market in the home mortgage industry.
By 1985 with ACORN operating mainly only in one medium-sized state, Arkansas, (ACORN in those days stood for Arkansas Community Organizations For Reform Now) forcing mortgage lenders there to make knowingly bad loans in accord with CRA ’77 . . . the suspect loan rate more than doubled to 0.51%. ACORN was, of course, the driving force also for putting Bill Clinton into the governor’s mansion in Little Rock for 12 of the next 14 years and into the Oval Office after that. Except for Arkansas, the nation was still operating as a free market with regard to home mortgages.
After three legislative expansions in Washington (one by G.H.W. Bush; two by Clinton), a huge regulatory expansion of CRA ’77 by Clinton in 1993, and ACORN being expanded across the whole nation: the suspect loan rate jumped to 14.1% in 1995. ACORN was very busy, including a Chicago-area ACORN attorney named Barack Obama who was shaking down banks to make ever more bad loans and even to get ACORN donations from them. ACORN now had it’s present meaning of Associations of Community Organizations for Reform Now and operated in all fifty states. The free market in home mortgages is wiped out.
About the same time as Bill Clinton was paying off his friends at ACORN for their support in 1998, by passing the steroid version of CRA ’77 expansion . . . Texas, with George W. Bush as governor, is wisely passing a 1998 law requiring a minimum of 20% down payment on all home mortgage loans. With ACORN’s push, Clinton’s law allows 0% down payments from people without jobs whose only “income” is food stamps. Even illegal aliens are now being put into $440,000 homes by ACORN with less effort than they needed a decade earlier to put better-qualified (but still UNqualified) loan seekers into $110,000 homes. By 2005, the suspect home rate is 34% across the nation. A large percentage of these new loan recipients are getting NO-Down payment loans.
The G.W. Bush administration first tries in January, 2005 to pass a law repealing CRA ’77 but Democrats block it. Finally thirty months later after nineteen speeches on the subject and other direct appeals to Congress, Bush and a bi-partisan group pass a weakened version of Bush’s 2005 bill into law in July, 2007. It helps immensely to save the housing market from utter collapse, but is way too little, way too late to stem the tide of nasty side effects and the financial meltdown begins within three months. The fifteen year long government-created housing bubble is ended.
Let’s sum this up: why has Texas prospered during this great downturn and mediocre “recovery?” Texas has, in a phrase, stuck to real core American values when the rest of the nation was throwing the U.S. Constitution out with the “wash water” and engaging in the wildest unjustified financial hokus-pokus imaginable. Let us learn our lesson from Texas’ wisdom. As the former “Lone Star State,” Texas is the only state with the legal-power to secede from the Union at will . . . we need about forty-nine other states to follow her lead and to uphold the 10th Amendment of the Bill of Rights . . . if the UNITED States is to prove worth saving.
Ya’ll live long, strong and ornery,
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Greenspan, Bernanke
Meltdown Problems
The leaders of the United States Federal Reserve banking system have trotted out the enormous chutzpah required to actually sue the leading German bank for doing a tiny part of what our Federal Reserve allowed and even encouraged here in this country. Putting the matter into the simplest terms, the Fed would like Deutsche Bank to repay a few Billion dollars because they claim that the FED lost money when DB didn’t pay enough attention to whether people receiving home loans in Germany actually had jobs or not.
 We say “chutzpah” (what the British call “cheek”) in describing our Fed Banking because meanwhile, here in the United States the Fed completely ignored for over thirty years far worse banking practices which nearly brought about the complete collapse of the American financial system and that today threatens to give the country stagflation and eventually run-away inflation.  Fed Chief Alan “Don’t-you-dare-tie-me-to-the-meltdown” Greenspan even went so far as to lead the cheerleading for the tricky straw that broke the camel’s back: unregulated derivative investment. To be specific, the Federal Reserve under Alan Greenspan and Ben Bernanke has for years given a wink and a nod to and ignored the impact of . . . .
A)   The Jimmy Carter 1977 Community Reinvestment Act (CRA ’77) and five expansions of it (four by Clinton; one by Bush, Sr.) between 1992 and 1998 that created the sub-prime lending crisis by forcing banks and mortgage companies to knowingly make very ill-advised home loans.
B)   The activities of ACORN in browbeating and shaking down mortgage lenders and banks to accelerate the evils of CRA ’77 and the sub-prime lending crisis.
C)   The shift in mortgage banking from 1975 when one in every four hundred-four loans was “suspect” (administered at 3% down payment or less); to 1985 when one in every one hundred-ninety-six such loans was suspect; to 1995 when one in just seven loans was suspect; to 2005 when worse than one in three such loans (34%) was highly suspect, granted often without any down payment at all.
D) The final Clinton steroid version expansion of CRA legislation in 1998 which made it easier for ACORN to get unqualified loan-seekers into $450,000 homes in 1999 than it had been to get such people into $110,000 to $120,000 homes a decade earlier.
E)   The final ACORN assault on the nation’s home mortgage industry by abusing the CRA laws to get houses for people . . . .
1)     Without jobs
2)    Without good credit ratings
3)    Without rental histories
4)    With only food stamps to list as “income”
5)    Enrolled in other welfare programs
       6)    and even for Illegal aliens 
F. Fed Chief Alan Greenspan heartily approved the onslaught of derivative investments saying they “held the key to eliminating financial downturns in the future.” Of course, it was derivatives of lumped-together junk mortgages that proved to be the final nail in the financial melt-down coffin which collapsed so many large financial institutes . . . you’re a great man, Alan, a truly great man.
G.    Once retired from his post as Fed Chief, Greenspan worked as a special consultant to . . . wait for it . . . Deutsche Bank . . . that’s right . . . .
H.     In a speech in February, 2004, Greenspan suggested that more home-seekers should take out ARMs (Adjustable Rate Mortgages) after he’d deliberately held the nation’s interest rates artificially low for a decade . . . in effect, sabotaging the individual lenders almost as much as the CRA laws were sabotaging the nation
I.           According to Wikipedia,  in referring to the part Greenspan played in allowing the financial-meltdown, Matt Taibbi called Greenspan a vain "classic con man" and a undistinguished economist who, through political savvy, "flattered and bullshitted his way up the Matterhorn of American power and then, once he got to the top, feverishly jacked himself off to the attention of Wall Street for 20 consecutive years." Taibbi said Greenspan had "established himself as an infallible oracle, and a lot of it had to do with his ability to seduce key media figures, sometimes literally." Taibbi reported a Wall Street term called the "Greenspan put" which "meant that every time the banks blew up a speculative bubble, they could go back to the Fed and borrow money at zero or one or two percent, and then start the game all over", thereby making it "almost impossible" for the banks to lose money. The chapter Taibbi dedicated to Greenspan in his book Griftopia bore the title The Biggest A__hole in the Universe.
J.  Even now as the nation seeks to fight its way back to prosperity, present Fed Chief Ben Bernanke is inflating the currency and denying at every juncture that he’s doing so. The rising price of gas and food is 95% Bumbling Ben’s fault and only 5% due to other extraneous factors.
In fairness to Greenspan it must be said that for the first ten years of CRA ’77 legislation he was not the Fed Chief, Paul Volcker was. In fairness to Volcker, none-zero-nada-zip-not one of the five CRA ’77 expansions to come was law when Volcker was in office . . . and ACORN in those days was largely confined to Clinton’s Arkansas (It began life in 1977, as the “Arkansas Community Organizations for Reform Now”) so the percent of suspect loans in the entire country only doubled in the first decade vs. multiplying by 28-fold under Greenspan. Greenspan never once notified the nation of the immense danger from this cancerous assault upon the nation’s mortgage system or reminded progressive lawmakers of the harm they were doing. Ronald Reagan deserves huge censure for putting a man of such monumental incompetence into such a power seat.
Credit Default Swaps and other derivatives were praised on several occasions by Greenspan as valuable instruments that would make severe financial downturns impossible. In March, 1999, he said, “ . . . I am quite confident that market participants will continue to increase their reliance on derivatives to unbundle risks and thereby enhance the process of wealth creation.” In another speech he opined that “derivatives have increased the standard of living globally.” How could such an idiot get any job in the financial industry? Just about any asinine investment works in a wide-open bull market; the key to understanding dangers is to see what happens in a severe downturn when everybody wants to sell and get out all at once.
The ultimate Greenspan lunacy was uttered in 2004 when he summed up the value of derivatives for protecting the financial markets: “Not only have individual financial institutions become less vulnerable to shocks from underlying risk factors, but also the financial system as a whole has become more resilient.”
So now our FED has the ironic gall to criticize and bring suit against a German bank for a sin perhaps 1/10,000 the size of our own failings which brought the entire world to the brink of financial cataclysm. Good job, Bernanke, good job.
Ya’all live long, strong and ornery,
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Japan Moves 8’; Earth 10”; Reactors Deteriorate;
Nuclear-Waste Cataclysm Awaits???
            Murphy’s Law and recently revealed Japanese nuclear-incompetence may be setting the world up for an absolute disaster. First the background: The entire nation of Japan and all its islands moved a full eight feet closer to the United States; and the entire earth was shifted ten inches on its axis (and rotational speed slowed slightly) by the recent 8.9 mega-quake striking the sea floor near northeast Japan. The ensuing tsunami (tidal wave) was, naturally enough, worse than anyone prepared for . . . in other words an unimaginable amount of power struck the Japanese and unimaginably devastating consequences are now happening.
            Unimaginable to you and me is not the same as "unforeseeable" in the world of engineering, or shouldn’t be. However, the up-to-now competent Japanese engineering community seems to have blundered badly in one respect that might soon come to haunt them and many of us: nuclear waste storage. Incredibly enough, reports say that the Japanese have been storing the radioactive waste on site – get this – in rooms above the reactor containment areas. It doesn’t take a genius to see that this sort of idiocy could instantaneously turn the worst-case scenario into a mega-disaster for the ages. 
Murphy ’s Law (“Anything that can go wrong, will go wrong at the worst possible time, in the worst possible way!”) is now in play. The densely-populated Japanese islands hold fifty-five reactors. Many of them have been idiotically clumped together (economical in many ways, but dangerous to the nth degree) so unfortunately, threats to one reactor’s core could conceivably threaten the whole group and even make normal human operation of the nearby ones impossible. 
Three of those reactors (two at the Fukushima site) have now been assigned to the scrap heap as emergency sea water cooling has been introduced into them destroying all future value as power generators. Granted moving a monstrously huge island eight feet eastward is hard to predict . . . but, clumping reactors in close proximity and storing highly dangerous nuclear waste above the reactors themselves; these are the sorts of acts that can win a whole truckload of Darwin Awards (given to those who find ultra-ignorant ways to wipe themselves out of reproducing and affecting the gene pool) for a people whose intelligence and engineering savvy had been famous worldwide up to recently.
Rajjpuut would suggest that whole volumes will soon be written about the errors of judgment attached to Japan’s nuclear industry. What to do about the waste now? OUCH!  Moving it away from the threatened reactors seems very wise, but remember they’ve had over 300 aftershocks; more than 120 of those aftershocks have been of greater magnitude than the quake that demolished parts of New Zealand last week; more than 150 of these aftershocks have been greater than 6.0 reading – do you want trucks of nuclear waste travelling around the flattened landscape waiting for one more 6.3 Richter Scale tremor to destroy the trucks and release their deadly cargo everywhere?   OUCH!
            Since multiple meltdowns (multiple meltdowns!!!) are now a distinct possibility on top of everything else that's attacked the island; we recommend the American management experts Kepner-Tregoe be invited in to help the Japanese deal with this unmitigated mess (a K-T technical phrase describing a conflagration and confluence of intertwined problems) ASAP. Pray for Japan.
Ya’ll live long, strong and ornery,
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“The survival-value of human intelligence has never been proved.” Michael Crichton late-great science-fiction novelist speaking to us from his first great novel, The Andromeda Strain
                “Human beings can be made to believe anything and to advocate dangerous actions, so long as the supposed authority behind the ideas is SCIENCE.” Rajjpuut’s thematic extraction from Crichton’s last novel State of Fear
To Err is Too Damn Human
The word “Chernobyl” comes immediately to mind. The situation in Japan has deteriorated markedly in the last fifteen hours. The so-called “perfect storm” has hit. 1. An 8.9 magnitude earthquake (3,000 times more powerful than the one that hit New Zealand recently) struck from the ocean floor near northeast Japan. 2. A huge tsunami generated by the earthquake struck the region. 3. The combination of seawater and the original earthquake and 136 aftershocks each greater than  6.0 on the Richter Scale destroyed the viability at least one nuclear power plant at the Fukushima site powering Tokyo turning it into a serious ecological threat. 4. Several mechanical back-up systems wisely created to prevent “the perfect storm” have so utterly and miserably failed that they might as well have taken on a mind of their own and deliberately sabotaged the whole endeavor 5. It appears that initial planning and particularly site location for at least some of the fifty-five Japanese plants was less than circumspect and for the Fukushima nuclear plants (more than one are located there – tell me it ain’t so, Lord!) was downright criminal. 6. It is very, very likely that human error after the initial earthquake also played a part in the ongoing disaster.
Short of a magic-bullet solution, this mess is on course to deteriorate far worse and far more rapidly than most of us can imagine. Japan is a densely-populated nation and an island. Japan is the site of routine and powerful earthquake activity on the “Pacific Rim of fire.” Japan has suffered a horrific 8.9 magnitude earthquake and 136 severe aftershocks most of them rivaling the power of the earthquake that hit New Zealand. If normal “protocols” following a major earthquake occur, Japan can expect Mother Nature to send them a string of tremors lasting at least the next five weeks . . . each of them with the potential to make the Fukushima situation categorically WORSE. Think of the British Petroleum disaster one year ago. Now multiply the potential ill-effects by half a trillion . . . it’s not just a mess. It’s the ultimate mess (note:  the term “mess” is an exacting term first applied to human activity in a meaningful and scientific way by Americans Charles Kepner and Benjamin Tregoe and their Kepner-Tregoe Management Systems program beginning in the late 50’s and early 60’s, more on this later).  Perhaps two of the worst effects in the long run from this situation will be adding weaponry to the environmental saboteurs’; and Jihadist saboteurs’ arsenals . . . any doubt where they’ll tend to aim their attacks now? Let’s try to put this disaster into perspective . . . .
We’ve all seen techno-thriller movies with the now common theme of “technology-run-amuck.” It wasn’t always so.  The idea itself was so powerful that Hollywood itself couldn’t even hope to handle it adequately. For example, they took one of the greatest novels of all time, Frankenstein, and made such a farce out of it in numerous variations for sixty years, that when finally an honest rendition of the novel was produced they had to name it “Mary Shelley’s” Frankenstein to let people know this was the real McCoy exactly as the great novelist wrote it and not some hangover from the Hollywood 1940’s. They even had to get Robert De Niro to play the part of Adam, Victor Frankenstein’s misbegotten creation to lend authenticity to the project.
The single greatest pioneer of this genre of sci-fi, late great sci-fi writer Michael Crichton wrote many extremely popular books and was part of several truly great movies as well. Two of his greatest endeavors were found near the beginning of his rise to fame and near the end of his days: The Andromeda Strain and the lesser known but seriously provocative State of Fear. The two novels present alternating views of human reality, neither one of them very flattering. In the Andromeda Strain Crichton ventures the idea that the survival value of intelligence has never been adequately documented and thus we often become our own worst enemies. The message in State of Fear is even more pointed and poignant . . . human beings can be made to believe anything and to do any dangerous things, so long as the authority behind the lies is “science.” One is reminded of the so-called science of “eugenics” operating as a founding principle within Nazism. The Nazis actually made serious long-term trips to the Himalayas to “investigate Aryan roots.”
Crichton’s suggesting in State of Fear that in the name of the supposedly good (e.g. “environmentalism”) reacting to perceived techno-threats, we are also capable of tremendously stupid actions with the potential to create enormous dangers** to ourselves.   Taken together the message from the two books is easily underestimated: To err is human; and human arrogance makes all problems exponentially worse. This is the story of the third hit in Japan: the nuclear disaster following the earthquake, the tsunami, the 136 aftershocks and everything else that went wrong. As a tenet from Messers Kepner and Tregoe which has so often been validated puts it: “the most important management activity is potential problem analysis (PPA) and follow-up prevention; the most important question in PPA is “What could go wrong?”
When you find the answer to the question “What could go wrong?” is “Absolutely everything!” You know somebody didn’t ask the vital question seriously enough in the first place. Let us break down this “mess” into its component disasters:
1.       Should a nuclear reactor ever be built in an earthquake zone, “What could go wrong?”
2.     Should a nuclear reactor ever be built near enough to the coastline that a tsunami could conceivably hit it, “What could go wrong?”
3.     Should two or three or more nuclear reactors ever be built within fifty miles of one another? If multiple reactors are built within very close proximity, “What could go wrong if one reactor has a severe lack of coolant accident?   Could things be made exponentially worse by the presence of a second reactor so near?”
4.     Even if a nuclear reactor’s redundant safety systems survive a severe earthquake, “What could go wrong if a tsunami hits?”
5.    Even if a nuclear reactor’s redundant safety systems survive a severe earthquake and a tsunami, “What could go wrong if a string of aftershocks more than 6.0 on the Richter Scale hit?”
6.     Even if a nuclear reactor’s redundant safety systems survive a severe earthquake and a tsunami, and a string of aftershocks more than 6.0 on the Richter Scale, “What could go wrong if back-up power systems fail?
7.     Even if a nuclear reactor’s redundant safety systems survive a severe earthquake and a tsunami and a string of aftershocks more than 6.0 on the Richter Scale and a failure of backup power systems to employ,  “What if the core still cannot be cooled and what if even heroic human endeavors fail to return the core to safe levels?”
Such is the anatomy of a mess: a confluent congregation of problems each of which by itself might not amount to an insurmountable problem, but which in their overwhelming negative synergy can prove disastrous.  Let’s add the final questions . . . .
8.    What if human operator or human management error is added to the other problems?”
9.     What if human slowness in the face of conflicting evaluations is added to the other problems?
10.What if danger to human operators and/or managers makes even trained proper responses impossible?
11.  What if the universe decided to make an example of us on this one?
You get the picture . . . the road to hell can indeed be paved with the very best of intentions, but a certain amount of stupidity makes the devil’s work go ever so much smoother.
Ya’all live long, strong and ornery,

** For example, the banning of DDT has unnecessarily killed roughly 78 million people (just from malaria, not to mention five other serious widespread insect-borne tropical diseases) since 1972 based upon the pseudo-scientific book Silent Spring by Rachel Carson. The 1972 level of 40,000 malaria deaths annually worldwide has now deteriorated to 2.1 million deaths annually. The pseudo-science of global warning by reverting the entire globe to energy use reminiscent of the early 1800’s would result in death by starvation, etc. of perhaps two-thirds of present humanity within two or three years if the most “ambitious” anti-global warming solutions were employed. Some solutions are much more dangerous than the problems (if the problems even actually exist). Crichton’s State of Fear is the perfect vessel for understanding the political biases rampant among people who use the environmental movement as a vehicle for personal empowerment, wealth and CONTROL.



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George Bush saw Obama, Clinton, ACORN, and other progressives deliberately pushing the car (the economy) toward a 500-foot cliff (utter financial disaster) dived into the front seat, grabbed the steering wheel and slammed on the brakes creating a controlled skid that put the vehicle into the nearest friendly-looking ditch.

“President G.W. Bush warned congress at least 20 times about the problem after January, 2005, when his administration made their first attempt to undo the evils of CRA legislation, especially the last three expansions by Clinton (1995 twice and 1998’s steroid version), but were defeated by the progressives. Finally thirty months later in July of 2007 a much weaker, watered down bill was passed by bi-partisan vote. It would prove far too little, far too late and the meltdown began soon afterward. However, it was sufficient help to the economy that Treasury Secretary Geithner in August, 2010, credited Bush with preventing a truly deep recession and preventing home prices from plummeting dangerously.” Rajjpuut

100% True and Verifiable,

Yet No One Wants to Hear It

Those of you who've heard a little bit of mythology have almost surely run into Cassandra. She was the daughter of King Priam of Troy and sister of Hector and Paris. Supposedly she slept overnight in the Temple of Apollo and the snakes therein licked her ears so clean she could "hear the future." Because her clairvoyance might quite likely interfere with destiny, Apollo cursed her with being unbelieved. For example, she foresaw the defeat of Troy, her brother Hector's body being brought back within Troy's Walls and who warned of the danger's of the Trojan Horse . . . but, of course, no one would believe her ever, about anything. Ouch!!!

Rajjpuut is beginning to know exactly how that unlucky lady felt. In November of 2003, James Stack of started running a chart that he would continue to run for an unheard of length of time -- almost five full years. The gist of the chart (Housing Industry Bubble) was that not only were housing prices artificially high, but that mortgage industry stocks and virtually all stocks associated housing in any way (construction, home improvement, etc.) were in a huge bubble (1400% of their 1995 values) which was sure to collapse AND that something called the "sub-prime lending crisis" as well as derivative investments based upon that crisis were threatening to undermine the very foundation of our nation's economy. The story involved covers over 44 years and is NOT, like Cassandra's tales from the future . . . but rather from the past and all easily verifiable, yet like Cassandra . . . Rajjpuut finds no audience that listens . . . .

In seeking to understand that situation, Rajjpuut uncovered all these truths, even more than Glenn Beck has shown within this chronology (though Beck's overall understanding of the nature of "progressivism" far outstrips Rajjpuut's) and he began writing about them to anyone and everyone roughly six years ago. It's all true, all verifiable and it amounts to tying together two of the greatest acts of treason in America's history with each other and the two most corrupt presidents in our history, our two ACORN presidents, with each other and with the "Founding Destroyers" of our country, Saul Alinsky and his two greatest disciples: Richard Cloward and Frances Piven . . . .

It’s well known and documentable that . . . the American housing loan industry was the finest in the world before progressive legislators got involved. Our sparkling 64% private ownership of homes was the envy of the planet. Sub-prime lending (that is lending to people who probably can’t afford their mortgage and will default on their loan unless they win the lottery) was unheard of. Banks that failed just failed in those days and the government only stepped in on those rare occasions when something went very wrong in order to protect the depositors. Only 1 in every 404 home loans was made at less than 3% down payment in 1975, almost always to distinguished veteran officers from our military who were going to college and working part time. More than any other single person, Bill Clinton changed all that.

It’s NOT well-known that Bill Clinton was the first ACORN president, but he was. ACORN (originally “Arkansas Community Organizations for Reform Now”) was the brainchild of Wade Rathke created in Arkansas in 1977 to take advantage of Jimmy Carter’s Community Reinvestment Act of 1977 (CRA ’77). Much later when ACORN proved itself successful in Arkansas it was expanded across the whole nation, the “A” in ACORN stopped meaning “Arkansas” and came to mean “Association of.” Bill Clinton obviously was a political comer (elected Arkansas lieutenant governor in 1976 at the age of 30), but his politicking was made much easier with the backing of ACORN over the next 18 years. ACORN helped Clinton win the governor’s mansion in Arkansas 12 of the next 14 years as well as two terms as president of the United States. It happened this way . . . .

Wade Rathke, was a George Wiley lieutenant sent to establish a National Welfare Rights Organization (NWRO) branch in the state of Arkansas. NWRO had been created by Wiley and Richard Cloward and Frances Piven in NYC to test out the Cloward-Piven Strategy (published in a 1966 article in The Nation magazine, The Weight of the Poor: a Strategy to End Poverty) and they planned to sufficiently overload the nation’s welfare system so that Congress would have to create a GNI (guaranteed national income) Law and abolish American poverty on the spot.

It didn’t work, but using Alinsky tactics (Saul Alinsky was a self-described “neo-Marxist” community organizer who had authored Reveille for Radicals and later Rules for Radicals) but by putting 8.2 million presumably unqualified new recipients on the welfare rolls, they did bankrupt New York City and almost bankrupt New York State. The federal government stepped in to bail out NYC in 1975. Despite their failure to get GNI and abolish poverty, Wiley, Piven and Cloward bragged publicly and in writing about their ‘great accomplishment.’ They told their eager followers that voter registration and housing were the next areas to test. Not surprisingly, ACORN today is known for voter registration fraud and exploiting and abusing the nation’s housing legislation . . . .

So Wade Rathke (who would later create the nation’s and the world’s largest union SEIU) created ACORN in Arkansas to carry out voter registration and housing “activities” of a highly questionable nature. ACORN during Clinton’s first run for governor in Arkansas registered roughly 24,000 persons to vote and then threw away all the paper work for would-be Republican registrants. Clinton won, of course. They were less successful in getting CRA ’77 housing loans. But thanks to their efforts (mostly in Arkansas), the percentage of home loans made at 3% down payment or less around the nation more than doubled from 0.24% in 1975 to 0.51% in 1985 . . . but it was a “drop in the bucket.” From 1977 to 1993 only about $100 Billion in CRA ’77 loans were even issued to questionable borrowers. This was nothing like bankrupting NYC . . . .

However, because of success in registering Democrats, ACORN was successfully expanding across the nation and was sufficiently strong to put William Jefferson Clinton into the Oval Office in November, 1992. Things changed overnight for ACORN and for CRA ’77. The process had not been very active or very successful during the ‘70s or ‘80s, because banks only had to demonstrate to CRA regulators a “reaching out to the inner city.” As a result, only about 100 billion dollars was loaned to questionable borrowers. In the two great ACORN concern areas, Clinton did ACORN proud. He created the motor voter act (“a 12-lane highway leading to voter fraud” according to critics) in 1993 and brought in Richard Cloward and Frances Piven to stand directly behind him during the White House signing ceremonies. Clinton moved next on housing . . . first by Presidential edict in 1993. He put teeth into CRA regs by using the regulatory process itself to more or less make law, skipping Congress altogether. From now on inner city dwellers were to become preferred home loan recipients, mortgage traditions and their poverty be damned. Clinton went outside the CRA regs and also ordered HUD to set quotas for "Affirmative Action Lending" through Fannie Mae and Freddie Mac. A new pressure fell upon the banking industry to make loans that banks would otherwise have rejected as “financially absurd.”

Subprime lending was virtually unknown before the multiple changes made by Clinton. The system was no longer recognizable as “free market.” Then it snowballed with more regulatory change and then two expansions of CRA law in 1995, the Clinton administration forced banks to loan more than a trillion dollars in high risk loans accepting as “income” items like welfare checks, unemployment checks, seasonal income, occasional part time work and other questionable sources of “qualified income.” By the end of 1995, 14% of all home loans were conducted with less than 3% down payments, many of them with no down payment at all.

With ACORN in the streets embarrassing and badgering and shaking down lenders (Barack Obama, an ACORN lawyer in Chicago, was reportedly one of the best at not only securing loans and future loan promises but also at getting large ACORN donations from the lenders he was shaking down!) and with officious federal regulators promoting and pushing and applauding bad loans not only with “the stick” of CRA and HUD but also using Fannie Mae and Freddie Mac as “carrots” due to their nature as implicitly guaranteed by the federal government. Millions of loans were made, often at breakneck pace in the normally snail-action world of mortgages.

In 1998, Clinton’s steroid-expansion of CRA law was passed. It was a nightmare. Now “food stamps” were regarded as income. Now ACORN found that they didn’t need high-powered extorters like Barack Obama, anyone with an eighth grade education could secure a loan for an ACORN client . . . and they found that it was now just as easy to get a poor person into a $450,000 home as it had been to buy a $120,000 home ten years earlier.

President G.W. Bush warned congress at least 20 times about the problem after January, 2005, when his administration made their first attempt to undo the evils of CRA legislation, especially the last three expansions by Clinton (1995 twice and 1998’s steroid version), but were defeated by the progressives. Finally thirty months later in July of 2007 a much weaker, watered down bill was passed by bi-partisan vote. It would prove far too little, far too late and the meltdown began soon afterward. However, it was sufficient help to the economy that Treasury Secretary in August, 2010, credited Bush with preventing a truly deep recession and preventing home prices from plummeting dangerously. And ACORN, even as they got loans for illegal aliens and people without even a rental history, they were getting paid to market CRA loans and made millions as a result.

All of this corruption enforced by strong-armed government agencies put millions of people into homes they simply could not afford. This caused an artificial feeling of financial prosperity for everyone and trillions of dollars were going into bad investments including derivatives based upon these horrific loans. Now, 90% of these laws are still on the books while the tax payer must pay for millions of past risky loans and are forced to bail out the irresponsible banks, insurance companies, automobile companies and Wall Street. Until we totally remove the government’s power to coerce, bribe, reward and bail out irrational and unfree decisions in the UNFREE MARKET, more of the same is always possible. The free market was working fine, so fine it took thirty years of deliberate abuse for the unfree market to bring America to its knees. Too much government? Yep! Blame it mostly on William Jefferson Clinton.

You did remember that the system originally wasn’t broken, right? You did remember that the progressives set out to manufacture a crisis a la Cloward-Piven Strategy and Alinsky Tactics that would “overload the system?” You have heard Barack Obama talking about somebody else driving the car in the ditch and now wanting the keys back, haven’t you? Are you going to ignore the evidence and head back to your sitcom? How about thinking this over . . . ?

George Bush saw Obama, Clinton, ACORN, and other progressives deliberately pushing the car (the economy) toward a 500-foot cliff (utter financial disaster) dived into the front seat, grabbed the steering wheel and slammed on the brakes creating a controlled skid that put the vehicle into the nearest friendly-looking ditch.

So Monica, Paula and Jennifer weren’t the only ones, were they? Slick Willy also had his nasty way with you and with all the American public . . . and remember that George W. Bush was only barely successful in his efforts to fight the evils of CRA laws . . . so that today 90% of the same laws that contributed to the fiasco and empowered ACORN are still on the books waiting to do us in once more. Every bit as dangerous as the new welfare laws threatening to overload the food stamp program; as dangerous as Obamacare; and as dangerous as progressivism itself are the CRA laws still on the books . . . .

You've read it all, you have it in your power to fact-check every item of the story . . . this is a story all America needs to know, don't you agree?

Ya’all live long, strong and ornery,


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