Rick Perry challenged the Federal Reserve and the backlash was loud and sustained.  But I wonder how many people even understand the Federal Reserve.  The following article gives an excellent short history.

http://news.goldseek.com/GoldSeek/1095269452.php

The bottom line is that in 1913 near total control of our national banking policy was given over to people we don’t know, we don’t elect,  and who can’t be removed from power.  To make things worse, the fed refuses to disclose to congress what they do and why they do it.  The purpose of the Federal Reserve was to stabilize our banking system.  Apparently only the few, the proud, the cultured banking elite could be trusted with this great responsibility.  But if that is the justification, how does one explain the near total banking collapse that led to the great depression?  How does one explain the near meltdown of the international financial markets in 2008?  If nothing else, we should consider firing the directors of the Federal Reserve for incompetence.

Rick Perry has taken on two issues that were avoided by everyone else.  He is the first major politician to publicly state that he does not believe in global warming.  Everyone else, including George Bush, danced around the issue.  Rick Perry is right on.  The so-called science behind the global warming alarmists will not hold up to scrutiny.  It is not just wrong, it is embarrassingly wrong.  He has now taken on the Federal Reserve.  It is about time.  At a minimum, there needs to be far more oversight of this non-public super-secret society that has such enormous power to regulate our lives.  By calling out the reserves, Perry has shown himself to be exactly the kind of leadership we need.  Let’s see if anyone else rises up to the challenge.

TDM

Rick Perry and Sarah Palin share one thing in common.  They are both very real people.  Virtually everyone who actually knows Sarah Palin describes her the same way:  “she is just the same off TV as she is on TV.”  While the main stream media tries to portray her as naïve and inexperienced with a huge cast of professionals covering up for her inabilities, the opposite is true.  She has very little staff, she makes her own decisions, she writes her own blogs and her husband Todd runs her Television studio.

 Rick Perry is starting to show very similar attributes.  The following article gives a first-hand view of how he campaigns:

http://www.politico.com/news/stories/0811/61366.html

 He has already demonstrated that he is not terribly concerned about playing the political game.  He participated in that national prayer meeting because he thought it was the right thing to do and he didn’t really care if anyone agreed or not.  On several occasions he has said it is time for conservatives to stop apologizing. 

Democrats and Republicans have underestimated this man for years.  There is no doubt that the Republican establishment is not all that thrilled with Rick Perry.  That is why they ran Kay Bailey Hutchison against him in the primary last year.  He won easily.  Then the Democrats were sure they had a good chance of beating him in the general election.  They hated him, so they stupidly assumed everyone else would agree.  He beat Bill White, the former Mayor of Houston, 55 to 42.  It wasn’t even close.

The Republican establishment is firmly convinced that only moderates win elections.  Rick Perry is far from a moderate.  They fear that a truly conservative candidate will alienate the coveted independent vote.  That is why they preferred John McCain to Mike Huckabee and why they will prefer Mitt Romney to Rick Perry.  But this time the RNC is finding out that the Tea Party is for real, it means what it says and it has low tolerance for those who compromise with the extreme left.  The Tea Party is not a political party, it is a grass roots political awakening.  Unless I am missing something, they are going to love Rick Perry.

When George W. Bush first ran for Governor of Texas no one gave him a chance of beating Ann Richards, a Democratic superstar.  I didn’t even know who George W. Bush was, but I happened to be in Texas and saw one of his ads.  He just looked into the camera and said “Texas is not a state, it is a state of mind.”  He defeated her in a landslide because everyone understood what he mean.  At some point Rick Perry is going to say that the Tea Party is not a political party, it is just the loud voice of the American people who are fed up with the political establishment.

This could be the ultimate reality TV show.  At a minimum, it will be fun to watch.

 TDM

I don’t know if Rick Perry will win the Republican nomination for President of the United States.  I don’t even know if I want Rick Perry to win the Republican nomination for President of the United States.  But I do know that his decision to run for President will have an immediate and profound effect on this election.  The reason is that he is one of the best political speakers since Ronald Reagan.  The man can flat out talk.  He has a way of connecting with an audiennce that is remarkable.  The only other Republican who has this type of communication skill is Sarah Palin.  The difference between the two is that Perry looks and sounds like a President.  Watch the following video of his speech to the Republican Leadership Conference in New Orleans on June 18, 2011:

http://www.texastribune.org/texas-people/rick-perry/video-perrys-speech-in-new-orleans/

There will be an immediate all-out assault on him from the liberal left and from all the other Republican candidates.  There is a reason for that.  This is the most dangerous candidate to come on the political scene in a long time.  He is dangerous because we haven’t seen this kind of pure political ability in a long time.  Perhaps his biggest problem is that he is almost too good to be true.

I believe the people in this country are hungry for leadership.  George W. Bush wasn’t that bad at being President, but he simply could not connect with the American people.  As a result, he withered under the unrelenting assault by the liberal left in the main stream media.  Barack Obama is good at reading a TelePrompter, but he is not in the same league as Rick Perry with regard to speaking ability.  In addition, Perry simply does not back down from his personal values.  He organizated a prayer day in Houston that drew 30,000 people.  The liberal left was horrified that someone would “interject christianity” into a federal election.  I suspect they will be even more horrified to learn that the vast majority of people will like it.

Unless someone digs up some serious dirt on Rick Perry, or another candidate picks it up several notches, he is going to soar to the top of the leader board.  This is the best thing that can happen, but whether he wins or not, the remaining candidates are going to have to really pick up their game or they will be left in the dust.

We haven’t seen a Presidential candidate with this type of speaking skill in a long long time.  Grab your ankles, we’re going for a ride.

TDM

Sometimes a picture is worth far more than a thousand words.  Obama has visited returning casualties from Iraq or Afghanistan only twice.  The first time was on October 30, 2009.  Now he has done it again.  He refused to let the press cover the event, because he didn’t want any pictures.  But the White House photographer “accidentally” took this shot without anyone noticing:

The main stream media is pissed because they didn’t get the chance to post their own adoring photo.  The White House is already getting major pushback, so they released the following statement: 

“The White House routinely releases photos taken by the White House photographers in specific circumstances where it would be inappropriate to include members of the media,” Carney said. “In this case, the White House released the photo, in the interests of transparency, so that the American people could have as much insight as possible into this historic and sobering event.”

Bill Clinton, had more class than this, and it is really hard to under-class Bill Clinton.

TDM

The liberal left decided to take a stand in Wisconsin.  With wide media support they organized massive demonstrations against the Republican Governor for cancelling union contracts.  Many of us remember the pictures of all those teachers, calling in sick, so they could try and shut down Madison.  Additional progressive activists were bused in and the pressure on the Republicans was enormous.  Some even feared for their life.  But they did not flinch.  They stood their ground and they took on the dreaded public sector unions.  Few politicians in this country have shown such courage and determination.

 The liberal left was outraged.  They immediately began a campaign to recall six Republican Senators.  It has been reported that they spent more than 30 million on these elections in an all-out effort.  If they could win three of the six seats, they would regain control of the Senate.

 If the Democrats had won, it would have returned control of the Wisconsin legislature to the Unions.  But they didn’t win.  The importance of this victory cannot be overstated.  The Ed Show on MSNBC ran live election results from what they expected to be a big Democratic victory party.  They really thought they had won and they were gearing up for a celebration.  They were gloating about the assumed victory of Sandra Pasch over Alberta Darling, because that is Paul Ryan territory.  Although Pasch was leading in the early results, Darling ended up winning 54 to 46.  Euphoria morphed into weeping and wailing and gnashing of teeth.

 The days of Democrats automatically winning elections with massive union spending and smear campaigns are gone.  Voter turnout was at record levels, yet it was the conservative Republicans who prevailed.  It was a difficult fight and Republicans lost two Senate seats.  But the liberal left gave it their best shot and they came up short.

 In the past, high turnout almost always meant a Democratic victory.  That is why smart Republicans pray for a snow storm every November.  This election took place in the middle of the summer when a lot of people with jobs are on vacation.  The conventional wisdom was that Democrats would carry the day under these circumstances.  But, there was record turnout and the Democrats still lost. 

 Wisconsin destroyed the myth of the all-powerful liberal left voter coalition.  Obama, Pelosi and Reid have reminded people of why it is a mistake to put liberals in positions of power.  In every democracy where liberals have gained complete political power, they have mucked things up to a fare-thee-well and desperate citizens vote conservatives back into office.  Every time it happens, liberals stand there slack jawed in astonishment because they always think they are right and they disregard any factual evidence to the contrary.

 On Wisconsin.  Smile and say “cheese.”

TDM

In February of 1860 Cassius M. Clay was scheduled to speak in Hartford, Connecticut.  Five “Republican” dry goods clerks decided spontaneously to meet him at the train station and give him an escort.  They borrowed some whale oil torches, made some black capes to protect themselves from the dripping torches, and marched through Hartford with the Senator trailing behind wondering what happened. 

With a few days the organization had grown to about fifty members and they began marching silently, in unison, carrying torches and wearing black oil cloth capes and military hats.  Somewhere along the way they picked up the name “Wide-Awakes.”  By summer time there were similar bands all across the country.  They turned out to be one of the most effective grassroots political organizations this country has ever seen.  By November of 1860, there were several hundred thousand young men who had joined and they helped elect Abraham Lincoln President of the United States. 

The stock market may rebound, slightly, today, but the long term trend is down.  The real news is not the down grade by Standard & Poor’s.  What really matters is that a high percentage of American citizens agree.  Along with the rest of the world, the American people have lost faith in their government.  The American people have downgraded the American government.

We are on the verge of a revolution.  A clash is inevitable.  In Europe we are already witnessing what happens when governments run out of money and start to cut entitlements.  The demonstrations are becoming increasingly violent.  We got a taste of this in Wisconsin with the wide spread demonstrations designed to intimidate the government in to giving unions what they want.  We have been lucky that so far the demonstrations in the United States have been peaceful.  However, when one watches the fires in London, it is wise to be concerned.

In 1860 a grass roots organization rose up spontaneously to change the world.  This was not a political party.  There were no real leaders.  This was merely a vehicle by which concerned citizens found a way to send a message to their government.  The Wide-Awakes marched in silence, but they spoke with a loud voice.  They would no longer tolerate a government that compromised with slavery, something they considered to be evil.

The Tea Party movement has a lot of similarity with the Wide-Awakes.  Both are spontaneous grass roots organizations that grew exponentially, not because of great leadership, but because of the strength of their cause.  The Tea Party is already winning the war that really matters.  The latest polls show that a vast majority of Americans favor a balanced budget.  If the Tea Party sticks to its original principles and avoids becoming just another political organization, it has the potential to change the world.  Determined men and women, marching silently in unison with great determination, are an irresistible force.  When someone in the main stream media in 1860 watched the Wide-Awakes march through town he understood what really mattered.  Quiet men, he said, are dangerous men. 

TDM

The Obama administration spent 60% of the increase in the debt ceiling in one day. 

In case you have the slightest doubt over how bad this is, read the following:

Bank of NY Mellon [BK  24.06    -0.59  (-2.39%)   ] announced it will start charging “large depositors” to hold cash due to a sudden increase in dollar deposits prompted by fears among its customers.

That’s right; the Bank of NY Mellon has so many people depositing dollars that it is going to start charging people for holding their deposits.  When people are choosing investment options that guarantee a loss, because they believe a small loss is better than a big loss, it doesn’t get any worse than that.  Frankly they would get a better return putting it under their mattress.

The stock market dropped over 500 points yesterday.   Today could be better, it could be worse.  Ultimately, a crash is evitable.  The White House is gloating over a job report showing the creation of 117,000 new jobs.  However, it turns out those are primarily government jobs and the private sector lost 38,000 jobs.  In addition, even if it was true, it would not be enough to reduce the unemployment rate. 

This may get worse.  In a typical recession stocks lose 33% of value.  Some people are predicting a decline even higher than that.  We aren’t even close to those numbers yet.

But here is the really good news.  This crash has been coming for a long time.  The government has been trying to “manage” the economy by smoothing out the curves.  Instead, they just made things worse.  A financial crisis in the United States is not a unique event.  That has happened many times before in our history.  It just didn’t happen in our life time.  A lot of people are ignorant of events that took place before color television.  If they didn’t see it, it didn’t really happen.  The worst crash in U.S. history did not take place in 1929.  There were several crashes that were far worse.  The crash in 1920 was worse.  The difference was that in 1920 the federal government did not intervene and instead just adjusted by cutting spending.  The economy recovered in less than a year, resulting in the roaring twenties.   

In 1929 a progressive President, Herbert Hoover, tried to “manage” the crash.  Then FDR came in and doubled down with the “New Deal.”  The result was the great depression that only ended with the start of World War II.

We have to experience a crash.  It is inevitable.  The economy has no hope of recovering without it.  Only a real crash causes enough pain to force people to make the difficult choices and change behavior.  Addicts do not begin recovery until they reach rock bottom.  But the good news is that once this happens, real recovery is just around the corner.  Remember; the deeper the crash the stronger the recovery.

A lot of people fear Obama is destroying this country.  He isn’t.  Instead, he may have inadvertently saved us all.  He did not destroy our economy by himself.  We have been on the path to destruction for years.  Obama, in his total ineptitude, may have done us a big favor.  He pushed us over the brink, into the crash that was coming anyway, and ironically his incompetence may be the best catalyst for the real change that was needed.  It is always darkest just before dawn.  We are headed for a big crash.  That could be the best thing to happen.  There will be joy in the morning.

TDM

The victory over the liberal left with the debt ceiling debate is far more significant than most people realize.  It is important to understand that this is merely the continuation of what is happening all over Europe.  Following is an article from the UK Telegraph:

http://blogs.telegraph.co.uk/news/tobyyoung/100099357/the-real-story-of-the-us-debt-deal-is-not-the-triumph-of-the-tea-party-but-the-death-of-the-socialist-left/

Our media has not been reporting the truth about the fate of socialism in Europe.  In country after country socialism has led to financial meltdown and disaster.  The following quote describes what has happened all over Europe:

Labour was punished by the British electorate last year, polling its lowest share of the vote since 1983, but not as severely as the Social Democrats were by the Swedes, polling their lowest share of the vote since universal suffrage was introduced in 1921…

The same picture emerges wherever you look. In the European election in June, 2009, the Left took a hammering. In Germany, the Social Democrats polled just 20 per cent of the vote, their worst result since the Second World War. In France, the Socialist Party only mustered 16.5 per cent, its lowest share of the vote in a European election since 1994. In Italy, the Democrats polled 26.1 per cent, seven percentage points less than they received at the last Italian election. As David Miliband pointed out in a recent lecture: “Left parties are losing elections more comprehensively than ever before. They are fragmenting at just the time the Right is uniting. I don’t believe this is some kind of accident.”

Socialism has never been successful anywhere it was tried.  The results are always the same.  At some point they run out of money.  Margaret Thatcher said it best:

 “The problem with Socialism is that eventually you run out of other people’s money.”

 In a totalitarian state socialism can survive for a long time.  The people are miserable, but they can’t do anything about it.  Cuba is the classic example of that.  But in a democracy, socialism always fails and ultimately socialists are voted out of power.  Ironically Europe was able to survive socialism for a long time because the United States was the economic engine of the world.  But the U.S. elected a socialist government in 2006 when Nancy Pelosi took over as Speaker of the House and Harry Reid took over as Majority Leader in the Senate.  When Barack Obama was elected President of the United States in 2008, socialists controlled all three branches of government.  The only difference between the U.S. and Europe is that socialism brought down this economy far faster than anyone predicted.  Perhaps that is because the U.S. is the economic engine of the world.  While we bailed out socialist failures all over the world, there was no one available to bail us out.  Those of us who understand the history of socialism knew it would be bad, but not this soon, and not this bad! 

I now believe that the economic decline in the United States, directly rooted in our slide toward socialism, has ironically proved to be the catalyst to defeat socialism all over the world.  There is a world- wide political tsunami sweeping socialists out of office.  It has already reached our shores and no one should underestimate its strength.

TDM

The deal is almost done.  McConnell, Reid, Boehner and Obama are on board.  The only thing certain is that Obama has taken an enormous hit.  It became increasing clear that Obama was out of the loop and the people who deserve the credit/blame for this legislation are McConnell and Reid.  The President’s speech in announcing the deal was beyond pathetic.  He couldn’t resist moaning about the need for tax increases on the wealthy when everyone else had moved on to spending cuts. 

This deal is not even the down payment on a sound fiscal policy.  That is not possible while Obama is President of the United States and Democrats control the Senate.  It will take ten years to have any real impact and we will be insolvent long before then.  But the pendulum has stopped swinging toward “tax and spend” and is beginning to swing toward cut, cap and balance.  I think the best way to describe this situation is to quote Winston Churchill after the battle of El Alamein:

Now, this is not the end. It is not even the beginning to the end. But it is, perhaps, the end of the beginning

Churchill was pointing out that defeating Rommel at El Alamein did not end World War II, but it did demonstrate that the allies were ready, willing and able to fight back.  Prior to El Alamein, Hitler had an unbroken chain of victories.  After El Alamein, the allies were the ones on the offensive.

On March 18, 2010, about 16 months ago, Democrats were gloating about all their achievements and Nancy Pelosi was swaggering across the mall carrying an oversize gavel to celebrate their great victory in passing Obamacare.  Major legislation was being passed with no republican input and no republican votes.  The Democrats had super majorities in the House and the Senate and had the most liberal President in our history.

Today, Nancy Pelosi is rarely mentioned and Obama is spending most of his time trying to explain why this disastrous mess is not his fault.  There are many more battles to be fought and we are far from achieving final victory, but the movement toward socialism has been stopped and the momentum is swinging the other way.

The Tea Party has reason to be proud.  This historic change was only possible because of a grass roots movement of individuals who stood up against the establishment and said enough is enough.  When one considers all those RINOs that were defeated in the Republican primaries and the massive victory in the House last fall, keep in mind that no one predicted any of this before the Tea Party exploded on the national stage.  It is the end of the beginning, and while that is a far cry from total victory, it is a very good thing.

TDM

The Obama administration is praying for panic.  Obama made up an arbitrary deadline to try and pressure Republicans into passing irresponsible legislation.  There was no real deadline, other than in the deluded mind of Obama.  The United States is not at risk of defaulting on its debt any time soon.  There is plenty of revenue available to pay that.  There is also no risk of defaulting on social security, Medicare and/or veterans benefits.  There is also enough money to do that and more. 

While the main stream media, including people like Bill O’Reilly, bought this artificial disaster date hook, line and sinker, the real experts didn’t.  It is becoming more and more obvious that the rating agencies and the investment community are far more concerned about the size of our debt, than the size of our debt ceiling. 

The problem isn’t that the U.S. isn’t borrowing enough; the problem is we have borrowed too much already.  I now believe that August 2^nd will come and go and the rating agencies and the investment community will adopt a wait and see attitude.  It will soon become apparent that Obama’s doomsday prediction has the same credibility as the preacher who predicted the end of the world. 

I may be surprised, but I don’t expect to see any legislation passed before the August 2 deadline.  While Boehner, McConnell, Reid and Obama might be willing to cut a deal, Boehner is facing a near revolt from the Tea Party caucus.  He can cut any deal he wants, but that does not mean he can get the House to agree.  They are not in the compromising mood.  

Obama is likely to wake up Tuesday morning to discover that the only people experiencing panic are those in his own administration.  He has limited options.  He could just ignore congress and raise the debt limit himself, but unless there is a legitimate worldwide financial meltdown, that would be an act of political suicide.  In spite of his rhetoric, he can’t arbitrarily stop paying our debt.  He certainly can’t try and solve the problem by stopping social security checks, Medicare checks or Veterans checks.  Odds are he will try to solve the problem by printing more money, by selling some assets and ultimately by shutting parts of the government down.  He could shut down the EPA, the Commerce Department, Housing & Urban Development, the Department of the Interior, and the Department of Education and it would be weeks if not months before anyone noticed.  He needs to be very careful, because he held accountable for his decisions. 

Ironically, Obama and the Democrats are panicking over the lack of panic.  I don’t know how this will work out, but I do know who is praying for panic.

 TDM