International Forecaster Weekly

Neocon Perspecives On The Constitution

Neocon perspecives on the constitution... Whirlpool goes down the drain... Hillary going to the right... shocking savings stats... why gold?... and more!

Bob Chapman | December 18, 2005

George and the neocons believe our Constitution is little more than a piece of toilet paper, as they plunge toward total fascist government in America. Our Attorney General, Alberto Gonzales, has said the Constitution is an outdated document. Once this cabal gets their extensions on the Patriot Acts, we’ll be presented with Patriot Act III to further suppress our freedoms. Our Constitution is a living document that our president swears to uphold and defend – you wouldn’t think so. The Constitution and the Bill of Rights protect us from our President and Congress. We do not need Patriot Acts to protect us from anything, much less phony terrorism. George and the neocons are undermining our freedom and they must be stopped.

Most Americans carry cell phones, but most are unaware that government agencies can track their movements through signals emanating from the handset. In the last four months, three federal judges have denied prosecutors the right to get cellphone tracking information from wireless companies without first showing probable cause to believe that a crime has been committed. This is the same standard applied to requests for search warrants. Companies that manufacture these devices are marketing services that turn phones into even more precise global positioning devices for driving or allowing parents to track the where abouts of their children through the handsets. Permitting surreptitious conversion of a cellphone into a tracking device without probable cause is in violation of the Fourth Amendment, especially when a phone is monitored in the home or other place where privacy is expected. Prosecutors have unsuccessfully argued that expanded police powers under the USA Patriot Act allow them a standard lower than probable cause. The pursuance of the ability of government to track people by cellphone and to intercept conversations on the cellphone is in violation of our rights, but government will continue to seek the power to execute these actions whether we like it or not. They do not represent us – they represent their own interests.

Hillary Clinton is moving to the right – for political purposes of course. She signed on as a co-sponsor of the Flag Protection Act, which makes it illegal to desecrate the American Flag. This way she can have it both ways. She gets to be pro-flag and anti-constitutional ban at the same time. Moderate Democrats can embrace this as a lesser of two evils.

Our citizens have a savings rate of minus 1.5%. Less than 20% of US workers have a pension plan and Social Security replaces less than 40% of pre-retirement income. Savings are more important than ever for Americans, yet their savings are at record lows. Thirty-seven percent of households do not own a retirement savings account of any kind. For those who had accounts the median value was $27,000. For workers between 55-64, it was $55,000 in 2001. Only 11% have savings in excess of $250,000. Perhaps now that property prices are falling, Americans will start saving or at least get out of their credit card debt.

Last quarter household, government and non-financial corporate debt expanded 9.1%, up from 8.1% in the second quarter, and at a y-t-d rate of 8.3%. The last time debt accumulation was this high was in 1986, at 11.9%. 2005 debt growth is running ahead of 2004’s 8.7%, which was the strongest percentage debt expansion since 1988. Household mortgage debt grew 14% in the quarter, the highest expansion since 1988. Government debt overall increased 12.6%, the highest since 1985. Federal government borrowings expanded 5.1%. This is a credit bubble. Net annual credit growth from 2002’s third quarter to 2005’s was almost double, up 86%.

Gold is the antithesis of Wall Street, banking and government, and that is why they so desperately worked to suppress gold’s price. The protracted program to sell gold and to have producers such as Barrick hedge to sell future production earlier began in earnest in 1993. They were somewhat successful for 12 years. Its effect was enhanced in recent years by leasing gold. This gold, although sold into the market to suppress prices, still was held on the banks’ books as still being in the vaults, when in fact, it wasn’t. Now some of these central bank lenders want their gold back and that is part of the reason gold is on its present tare. Bankers and Wall Street know gold is an early warning system of trouble ahead, so they attempted to suppress the price to lull the unwary into a false sense of comfort and security. In reality it was a lie, by a bunch of crooks that lie about most everything. Millions of citizens have been cheated because of their duplicity. Now most all of their gold has been leased or sold and their disabling of our early warning system is close to an end.

We have been denigrated for 46 years for having advocated the truth and sound money. Yes, there is a conspiracy and there are elitists who attempt to run our world and these are the same people who have deliberately put us into the fix we are in today. It didn’t happen by coincidence, because coincidence doesn’t exist. We are going to now reap the financial whirlwind, so you had better have gold and silver assets or your financial future will not exist.

Whirlpool is laying off 730 workers and shipping their jobs to Mexico, where workers make $2.00 an hour.

The rising cost of home building materials is putting pressure on builders to choose between earnings, lower profits and charging less for new homes. Unless forced to we don’t see builders cutting prices, which means less home will be sold. You can soon expect a drop in interest only and adjustable rate mortgages. Nationwide they have been running at about 33% of the mortgage market. That is about to change very soon. As interest rates rise 30-year fixed rate mortgages will get more and more of the originations. Homeowners who took out ARMS in the last few years are just now seeing their payments start to rise, as interest rates go up and their loans fixed-rate period end. Many refinanced at 3.9%, now the offering is 6.9% just two years later. As refinancing comes due many will slide eventually into bankruptcy.