Tuesday, August 2, 2011

Massive rout spells trouble for Wall St...

* S&P 500 turns negative for year

* S&P closes below 200-day moving average

* Global growth fears weigh on stocks

* Dow off 2.2 pct, S&P off 2.6 pct, Nasdaq 2.8 pct

By Edward Krudy

NEW YORK, Aug 2 (Reuters) - The S&P 500 turned negative for the year on Tuesday as the wrangling over the U.S. debt ceiling faded and investors turned their attention to the stalling economy.

The broad-based index fell for a seventh day and crashed through the key 200-day moving average in an ominous sign for markets. The seven days of losses mark the longest losing streak since October 2008.

"It is going to be a long week," said Jim Maguire Jr., a NYSE floor trader at E.H. Smith Jacobs. "The bid is not here in the market."

The selloff accelerated into the close as volume jumped well above average. The fall was broad-based, with four stocks falling for every one rising on the New York Stock Exchange.

The index also broke through its 2-1/2 year uptrend line from its bear market low in March 2009. Thursday was the index's worst day in a year.

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Investors seemed to find little to cheer after the U.S. Senate agreed to a deal to raise the debt ceiling because of the possibility it will not stave off a downgrade of the U.S. government's triple-A rating.

"Investors have made the shift from Washington to what I'm calling economic realities," said Fred Dickson, chief market strategist at The Davidson Cos. in Lake Oswego, Oregon.

Composite volume on the NYSE, the Amex and the Nasdaq reached 9.5 billion shares, well above this year's daily average of around 7.5 billion.

The Dow Jones industrial average .DJI dropped 265.87 points, or 2.19 percent, to 11,866.62. The Standard & Poor's 500 Index .SPX dropped 32.89 points, or 2.56 percent, to 1,254.05. The Nasdaq Composite Index .IXIC dropped 75.37 points, or 2.75 percent, to 2,669.24.

Shortly after the vote, Fitch Ratings said the agreement to raise the U.S. borrowing capacity means the risk of a sovereign default is "extremely low" and commensurate with a AAA rating. But it warned Washington must reduce its debt or face a downgrade.

Industrial and consumer discretionary shares were among hardest hit, with the S&P industrial and discretionary indexes .GSPI .GSPD down more than 3 percent.

A government report showed U.S. consumer spending fell unexpectedly in June for the first decline in nearly two years as incomes barely rose.

On Monday a survey on U.S. factory activity suggested manufacturing stalled in July. The survey followed similarly weak reports from Asia and Europe and came after U.S. growth calculations were sharply cut for the first half of the year.

The government's key monthly jobs report for July is due on Friday and will be closely watched by investors.

European debt problems returned to the forefront after French bank BNP Paribas SA (BNPP.PA) took a $768.3 million write-down linked to Greece's debt woes.

European shares hit their lowest close in 11 months, with selling concentrated on Spain's IBEX .IBEX and Italy's FTSE MIB .FTMIB, which hit a 27-month low.

Drug company Pfizer Inc (PFE.N) reported a second-quarter profit that beat expectations by a penny and affirmed its full-year profit view. Shares of the Dow component fell 4.6 percent to $18.14. (Reporting by Edward Krudy; Editing by Kenneth Barry)
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MOODY'S: 'NEGATIVE'

Moody’s Investors Service and Fitch Ratings affirmed their AAA credit ratings for the U.S. while warning that the ratings could be downgraded if lawmakers fail to enact debt reduction measures and the economy weakens.

The rating outlook is now negative, Moody’s said in a statement yesterday after President Barack Obama signed into law a plan to lift the nation’s borrowing limit and cut spending.

The debt-limit compromise “is a positive step toward reducing the future path of the deficit and the debt levels,” Steven Hess, senior credit officer at Moody’s in New York, said in a telephone interview yesterday. “We do think more needs to be done to ensure a reduction in the debt to GDP ratio, for example, going forward.”

A ratings cut would raise the specter that the wrangling between Obama and Republican lawmakers over spending cuts and taxes will harm American prestige and the global financial system. JPMorgan Chase & Co. estimated that a downgrade would raise the nation’s borrowing costs by $100 billion a year. It could also hurt the rest of the U.S. economy by increasing the cost of mortgages, auto loans and other types of lending tied to the interest rates paid on Treasuries.

“A downgrade is a sign that Congress is failing to address a real fiscal issue,” Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott LLC in Philadelphia, said in an interview before the announcements.

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‘Tough Choices’

A decision on the rating may be made within two years, or “considerably sooner,” according to Moody’s Hess. For Fitch, while the rating may be cut in the medium term, its risks in the near-term “are not high,” David Riley said in an interview.

Fitch expects to complete the ratings review by the end of August. The U.S. must confront “tough choices on tax and spending against a weak economic backdrop if the budget deficit and government debt is to be cut,” Fitch said in a statement.

“Although the agreement is a good first step in adjusting the fiscal challenges that the U.S. faces, it is just a first step,” Riley, Fitch’s London-based head of sovereign ratings, said in a telephone interview yesterday. “Does it mean that the AAA rating is completely secure of the medium term? No.”

The ratio of general government debt, including state and local governments, to gross domestic product is projected to climb to 100 percent in 2012, the most of any country with an AAA ranking, Fitch said in April.

Standard & Poor’s put the U.S. government on notice on April 18 that it risks losing its AAA rating unless lawmakers agree on a plan by 2013 to reduce budget deficits and the national debt. S&P indicated last week that anything less than $4 trillion in cuts would jeopardize the U.S.’s AAA rating.

Debt-Limit Compromise

An increase in Treasury yields of 50 basis points would reduce U.S. economic growth by about 0.4 percentage points, JPMorgan said in a report, citing Federal Reserve research and data.

Obama signed the debt-limit compromise on the day the Treasury had warned the nation’s borrowing authority would expire, ending a months-long debate that reinforced partisan divisions over federal spending.

The Senate voted 74-26 for the measure, which raises the nation’s debt ceiling until 2013 and threatens automatic spending cuts to enforce $2.4 trillion in spending reductions over the next 10 years. The House passed the plan Aug. 1.

“While the combination of the congressional committee process and automatic triggers provides a mechanism to induce fiscal discipline, this framework is untested,” Moody’s said in the statement. Moody’s said its baseline scenario assumes that fiscal discipline is maintained in 2012.

Debt-to-GDP

“Further measures will likely be required to ensure that the long-run fiscal trajectory remains compatible with a Aaa rating,” Moody’s said. The credit rater expects a stabilization of the federal government’s debt-to-gross domestic product ratio not too far above its projected 2012 level of 73 percent by the middle of the decade, followed by a decline.

Recent downward revisions of economic growth rates and the very low growth rate recorded in the first half of 2011 call into question the strength of potential growth in the next year or two, Moody’s said. Moody’s, which has rated the U.S. Aaa since 1917, put the U.S. under review for a downgrade on July 13 for the first time since 1996.

Still, U.S. bonds and the dollar have signaled increased demand for the assets of the world’s largest economy even as the prospects of losing the AAA rating rose as the debt talks extended to the deadline when the Treasury said it would exhaust its ability to borrow.

Yields Decline

Treasury yields average about 0.70 percentage point less than the rest of the world’s sovereign debt markets, Bank of America Merrill Lynch indexes show. The difference has expanded from 0.15 percentage point in January.

Investors from China to the U.K. are lending money to the U.S. government for a decade at the lowest rates of the year. For many of them, there are few alternatives outside the U.S., no matter what its credit rating.

Treasury 10-year yields fell to as low as 2.60 percent yesterday in New York, the least since November. The dollar represents 60.7 percent of the world’s currency reserves, compared with the 26.6 percent for the euro, which has the next biggest portion, according to the International Monetary Fund in Washington.

“Regardless of the rating, Treasuries are going to be seen as the safe haven,” said Matthew Freund, a senior vice president at USAA Investment Management Co. in San Antonio, where he helps oversee about $50 billion in mutual fund assets. “The U.S. remains one of the strongest, most dynamic economies in the world.”
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Girl, 11, saves baby woodpecker; faces $500 fine from feds...


FREDERICKSBURG, Va. (WUSA) -- Eleven-year-old aspiring veterinarian, Skylar Capo, sprang into action the second she learned that a baby woodpecker in her Dad's backyard was about to be eaten by the family cat.

"I've just always loved animals," said Skylar Capo. "I couldn't stand to watch it be eaten."

Skylar couldn't find the woodpecker's mother, so she brought it to her own mother, Alison Capo, who agreed to take it home.

"She was just going to take care of it for a day or two, make sure it was safe and uninjured, and then she was going to let it go," said Capo.

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But on the drive home, the Capo family stopped at a Lowes in Fredericksburg and they brought the bird inside because of the heat. That's when they were confronted by a fellow shopper who said she worked for the U.S. Fish and Wildlife Service.

"She was really nervous. She was shaking. Then she pulled out a badge," said Capo.

The problem was that the woodpecker is a protected species under the Federal Migratory Bird Act. Therefore, it is illegal to take or transport a baby woodpecker. The Capo family says they had no idea.

"I was a little bit upset because I didn't want my mom to get in trouble," said Skylar.

So as soon as the Capo family returned home, they say they opened the cage, the bird flew away, and they reported it to the U.S. Fish and Wildlife Service.

"They said that's great, that's exactly what we want to see," said Capo. "We thought that we had done everything that we could possibly do."

But roughly two weeks later, that same woman from the U.S. Fish and Wildlife Service showed up at Capo's front door. This time, Capo says the woman was accompanied by a state trooper. Capo refused to accept a citation, but was later mailed a notice to appear in U.S. District Court for unlawfully taking a migratory bird. She's also been slapped with a $535 fine.

"I feel harassed and I feel angry," said Capo.

"Kids should be able to save a baby bird and not end up going home crying because their mom has to pay $535. I just think that's crazy," said Skylar.

If convicted, Capo could face up to a year behind bars.

Virginia State Police just released the following statement:

"We have confirmed that the US Fish and Wildlife agent requested our presence when they served their federal summons. The trooper stood on the porch and said nothing. We had nothing to do with the charge."

The U.S. Fish and Wildlife Service issued this statement at around 12:30 p.m. Tuesday, August 2nd:

"On June 13, a special agent with the U.S. Fish and Wildlife Service observed a woman carrying a cage that contained a woodpecker at a home improvement store in Fredericksburg Virg.

As possession of a bird may potentially violate the federal Migratory Bird Treaty Act, the agent initiated an inquiry to determine whether a potential violation had occurred.

Upon speaking with the subject, later identified as Alison Capo, on June 27, the agent determined that no further action was warranted. A citation that had been previously drafted by the agent was cancelled on June 28.

Unfortunately, the citation was processed unintentionally despite our office's request to cancel the ticket. The Service has contacted Ms. Capo to express our regret. The Service is also sending Ms. Capo a formal letter explain the clerical error and confirming that ticket should never have been issued.

This misunderstanding was the result of a Service inquiry into possible violations of federal wildlife law. In particular the Service is responsible for the protection of all federally listed migratory birds. The Virginia Department of Game and Inland Fisheries did not participate in the inquiry."
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1,500 murders ordered by leader of Mexican Murder, Inc.

Jose Antonio Acosta Hernandez boasted of ordering the murder of more than1,500 people
by Jim Kouri

Law enforcement officials in Mexico claim that a vicious and ruthless cartel leader they arrested boasted of ordering the murder of more than1,500 people in northern Chihuahua state, a U.S. drug enforcement source tells Law Enforcement Examiner.

The 33-year old gang leader, Jose Antonio Acosta Hernandez, is also suspected of masterminding the 2010 attack on a U.S. diplomat and her spouse in the war-torn city of Ciudad Juarez, not far from the U.S.-Mexican border.

Mexico does not execute even the most prolific killers.

According to U.S. drug enforcement officials, Acosta Hernandez is a key figure in the Juarez drug cartel based in Ciudad Juarez, a city that boasts Mexico's highest murder rate. In 2010 alone, more than 3,000 people were murdered by drug cartel members in that city..

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Acosta Hernandez, a/k/a El Diego, is accused of being the leader Mexico's own version of Murder, Inc., the La Linea gang, whose members function as assassins and enforcers for the Juarez cartel. Part of El Diego's gang is allegedly comprised of police officers.

Murder, Inc. was the name given by reporters to organized crime groups in the 1920s through the 1940s that resulted in hundreds of murders on behalf of the American Mafia and Jewish Mafia groups who together formed the early organized crime groups in New York and elsewhere. The name was a journalistic invention. Murder, Inc. was established after the formation of the commission of the National Crime Syndicate, to which it ultimately answered. Largely headed by former mob enforcers Benjamin "Bugsy" Siegel and Meyer Lansky,

The Juarez cartel controls the main drug smuggling routes from Ciudad Juarez into the United States.

Mexican authorities accused El Diego of being behind a car bomb attack which killed four people in the border city, the first such attack in Mexico's so-called war on drugs.

El Diego is considered so dangerous, that the Mexican government posted a 15 million Mexican pesos ($1,275,000) reward for information leading to his capture.

U.S. federal prosecutors had wanted to try him in the case of the 2010 killing of U.S. diplomat Lesley Enriquez, her husband Arthur Redelfs, and the husband of another consulate staff member, Jorge Alberto Salcedo.

They were shot dead in their car execution-style as they left a social function in Ciudad Juarez. Ms Enriquez, 35, was four months pregnant when she was murdered. The American couple's seven-month-old daughter survived the violent attack. She was discovered by responding police officers in the backseat of the car crying uncontrollably.

Jorge Salcedo was killed in drive-by shooting as he drove away in a separate vehicle from the same event only minutes after the Enriquez killing.

Mexican President Felipe Calderon said that Acosta's capture was "the biggest blow" to organized crime in Ciudad Juarez since he sent 5,000 federal police to the city in April 2010 to attempt to curtail the violence in one of the world's most dangerous cities.

Jim Kouri, CPP, formerly Fifth Vice-President, is currently a Board Member of the National Association of Chiefs of Police, an editor for ConservativeBase.com, and he's a columnist for Examiner.com. In addition, he's a blogger for the Cheyenne, Wyoming Fox News Radio affiliate KGAB (www.kgab.com). Kouri also serves as political advisor for Emmy and Golden Globe winning actor Michael Moriarty.

He's former chief at a New York City housing project in Washington Heights nicknamed "Crack City" by reporters covering the drug war in the 1980s. In addition, he served as director of public safety at a New Jersey university and director of security for several major organizations. He's also served on the National Drug Task Force and trained police and security officers throughout the country. Kouri writes for many police and security magazines including Chief of Police, Police Times, The Narc Officer and others. He's a news writer and columnist for AmericanDaily.Com, MensNewsDaily.Com, MichNews.Com, and he's syndicated by AXcessNews.Com. Kouri appears regularly as on-air commentator for over 100 TV and radio news and talk shows including Fox News Channel, Oprah, McLaughlin Report, CNN Headline News, MTV, etc.
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Anders Behring Breivik and the Tyranny of the Left

By Tim Dunkin
Anders Behring Breivik

Rahm Emanuel, probably one of the most corrupt and disgusting politicians in America in recent years, once remarked that it was always good policy to “never let a good crisis go to waste.” The bald-faced and naked way in which the leftist establishment puts this into practice has rarely been on display more plainly than the response of those on the Left, especially in the media, to the recent mass shooting of 69 children and concurrent bombing of a government building in Norway by homegrown terrorist Anders Behring Breivik. Once it finally became apparent that the shooter was not yet another crazed Islamic wacko, but was instead a blond-haired, blue-eyed exemplar of Scandinavian-ness, the media lost its lethargy and that “deer in the headlights” look and immediately started trying to find ways to spin the story to the Left’s advantage. Especially in the American media, the meme quickly became that Breivik was a “Christian fundamentalist extremist,” that somehow it was a deeply Christian religious conviction that motivated him to commit his terrible crimes.

Anybody remotely familiar with Breivik’s own words and writings knows that this was pretty far from the truth. In point of fact, Breivik was a secularist, perhaps nominally “religious” in the way that many people in societies with state religions are, but one who nevertheless professed to be influenced by the secular worldview, and who didn’t really take religion seriously. Indeed, from his writings, it is openly seen that Breivik was a staunch Darwinist, disbelieved the Bible, believed in “survival of the fittest” eugenicism, and was pro-homosexual. Hardly a paladin of fundamentalist Christianity. While Breivik did say that he wanted Europe to be a “Christian society,” it is quite obvious that he intended this to be a sort of bland “cultural Christianity” only – the kind that has the form, has the buildings and the robes and the fancy gravestones, and where everybody goes to church once a year, but otherwise is emasculated. Elsewhere, he stated that he thought Christians “should have no say in making scientific or governmental policy.” So while the European press (largely) steered clear of the “Breivik was a Christian fundamentalist” storyline, not so with the American press, for whom the term “right-winger” is pretty much synonymous with the stereotype of the Bible-toting Tea Partier which has so psychologically traumatized those in the American Left by beating them so many times in so many elections.

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Nevertheless, despite his lack of actual Christian fundamentalism, Breivik is admittedly still a creature of the Right, to some degree at least. What primarily drove this man’s politics was his sense of powerlessness over the massive Islamic immigration into his native Norway, and the profound (and detrimental) social changes being caused by this immigration. Breivik saw his country, his native land, as being overrun by barbarians who were intent, not on assimilating and becoming good Norwegians, but on turning Norway into a frigid outpost of Somalia.

One has to admit, I think, that he has a valid point, though (obviously) his method of expression was completely reprehensible, shooting a bunch of children crosses more moral event horizons than I care to count. After all, Norway, as well most other European countries, is being objectively and adversely affected by the influx of Islamic immigrants from North Africa, the Middle East, and South Asia. Remember France, where there were weeks of rioting, car-b-ques, and other related violence by Muslim immigrants who have turned many of Paris’ suburbs into no-go zones for non-Muslims (even the police and firefighters). In England, we see “shari’a zones” where Islamic law is, unofficially at least, in force. Who can forget about Pym Fortuyn in Holland, murdered in the street by an Islamic jihadist for the crime of exercising free speech? And of course, in Sweden they have the rape jihad, where Muslim males travel in packs and sexually assault native Swedish women who are outside without being veiled. And so on.

And people wonder why Europeans are growing less keen on their Muslim “guests” with each passing year.

Frankly, I was not surprised that a violent event like the shooting and bombing by Breivik took place. In fact, I’ve thought for years that something like it would happen, somewhere in Europe, sooner or later. I certainly didn’t and don’t want violent attacks like that to take place, but it has seemed almost inevitable that something would blow, sooner or later.

Why?

It has to do with the particularly insidious nature of the Left and its efforts at cementing total control over everything it touches.

We have to understand an undeniable truth about the Left, which is that it seeks total, complete, unchallenged control over every aspect of society. In that sense, the Left is a true totalitarian philosophy, since it seeks to control society in toto. Leftists will use every tool at their disposal – the media, government agencies, the schools, whatever – to neutralize, discredit, and destroy any and all opponents. That’s the essence of the Cloward-Piven strategy – isolate, demonize, and destroy. The Left is not interested in “competing in the marketplace of ideas.” The Left wants to send the stormtroopers in to close down the marketplace, arrest all the participants, and send them to the gulags.

They are this way everywhere they go. I remember over a decade ago, I became involved in what was called a “micronation,” named Cyberia. Basically, Cyberia was a political simulation, sort of a wannabe World of Warcraft for political nerds. You had a map of the country, it was divided into several provinces, each province elected its own Governor, the nation as a whole elected a legislature and a President, there was a Supreme Court, etc. etc. Cyberia operated under a constitution that served as a framework for the operation of the simulation. There were various forums in which citizens would debate politics, various bills before the legislature, the latest political scandals, and so forth.

Well, the thing about Cyberia was that it had been founded by a small cadre of left-wing college students. Naturally enough, the constitution for Cyberia included a “right” to pretty much everything – abortion, health care, housing, and whatnot. I think the idea that this initial cadre had was that they were going to run their simulation only with other leftists being involved, so that the boat never got rocked, and they could all pat themselves on the back for how well their socialism was working in the simulation – after all, when you can simply post on a forum that the government has taken in enough money to pay for all the social programs and whatnot you’ve said you have without the economy being hurt, you can convince yourself that your model is working. This all worked out well for them until somebody, at some point, apparently got the idea to start recruiting outside the circle of friends of the initial cadre. That’s when horrid things like “ideological diversity” started happening (I joined about this time). Suddenly you had conservative people joining. You had religious people showing up. You had small government types becoming citizens. And all these people started doing things like, you know, voting and running for office. Even worse, they read the constitution, and started trying to use the legislative process to edit out all of the junk like constitutional rights to abortion and free health care. In other words, the conservatives were doing what the simulation, ostensibly at least, was designed for.

The leftists fought it tooth and nail every step of the way – incidentally doing all the same things that they do in real life. They tried to get people banned, their citizenship taken away. They would use their judges to rule bill and laws unconstitutional – even constitutional amendments (which, theoretically, can never be “unconstitutional”). They would invent all kinds of “scandals” to try to use to destroy the reputations of conservatives and get them removed from office, and would use all kinds of other heavy-handed tactics to basically try to remove any conservatives they could from positions of power in the simulation, often using the power of the President (who was one of the founding leftists) in ways that were unethical, and even “questionably” legal by the rules of their own simulation. Nevertheless, it eventually worked out that despite all this, a solidly conservative Christian was elected President, and the leftists went so berserk that the simulation basically fell apart after that. Cyberia, incidentally, still exists, but for about the past eight years or so has consisted of a small cadre of eight or nine left-wingers who refuse to allow anyone to join unless they pass long and grueling ideological tests. One supposes that they’re happy that way.

So what does this all have to do with Anders Behring Breivik and the totalitarian Left? A lot, actually. See, the behavior that we saw with the Left in Cyberia was nothing unusual. They were merely leftists being leftists. In the real world, the Left acts the same way. They pull down. They slander. They destroy. They use “speech codes” and “political correctness” to limit the bounds of “acceptable” discourse. They will punish students who ask the wrong questions in class or say the wrong things on campus by lowering their grades and sanctioning them in phony judicial hearings. They use their control over the MSM to caricature dissenting viewpoints, and selectively filter for their viewers only the things they want them to see. When they can, they use the police powers of the State to punish those who dissent against them. In short, leftists habitually use any and every means at their disposal to suppress and destroy any dissent to their program.

In Europe and other western countries, it’s even worse than it is here in the USA. Basically, in many European countries, it is illegal to vocalize the wrong position on a number of hot-button issues, such as homosexuality and Muslim immigration. You can be punished for saying the wrong things. Just look at Geert Wilders, a Dutch MP who has vocally opposed the destruction of his nation by inassimilable Muslim immigrants who are radically altering Holland’s open and tolerant society. He was just brought up in the dock, put on trial for his speech. What about the pro-lifers in Austria who are being prosecuted for being vocally pro-life? In Canada, pastors and others have been brought up for punishment before that nation’s “Human Rights” Commission for opposing homosexuality. Indeed, it’s illegal in Canada to cite certain Bible verses that condemn that practice. In several European countries, political parties that oppose Muslim immigration have been banned when they became too popular and threatened to become influential. And so on. Further, as with the USA, the nearly uniformly left-wing media systematically work to delegitimize all dissent against the leftist party line, taking away yet another outlet for free discourse.

It is unsurprising that, eventually, people placed into such a situation will eventually begin to crack. When you claim (as western nations generally would) that you are a free society with things like free speech, don’t be surprised if your citizens take you seriously. Don’t be surprised, also, if a certain number of them grow increasingly agitated when your government and media consistently controvert those claims at every opportunity. While the USA, however socialistic we may have become, still has outlets for our citizens to speak freely and to feel that they can peacefully and effectively work for changes in our government and its policies, the European doesn’t really have that any longer. Not when the ruling government can arrest them for saying the wrong thing, or ban their political parties outright for having the wrong platform, and there’s nothing they can do to redress it. Americans don’t generally understand just how far much of Europe has gone down the road to socialism, not just economically, but also socially and politically. In many places in Europe, you really do only have the “freedom” that the government says you can have.

In such a situation – especially one as emotionally charged as seeing the very fabric of your nation ripped apart and changed by a tidal wave of hostile, arrogant foreigners – someone like an Anders Behrens Breivik is entirely predictable. The Left, by clamping down on all modes of dissent and by trying to socially and politically isolate anyone who would rock the boat, has effectively shut out the European from doing anything more than choosing between two heads of the same socialistic system, one often labeled “Socialist,” the other labeled something like “Christian Democrat” or “Conservative,” but which operates on the same basic premises as the Socialist Party, if only maybe a little less rabidly. True dissent is forbidden, isolated, and destroyed. So those who feel they are being destroyed lash out in the only way that they feel is left to them.

Hence, the Left is really, ultimately, responsible for creating the conditions that led to Breivik’s massacring of 69 children at Utoya Island and 8 government officials in Oslo. The Left is simply too efficient at what it does, which is isolate, ridicule, and destroy. Last week, the Norwegian Prime Minister (a Socialist) lamely proclaimed that Norway was going to “become more democratic” in response to this tragedy. While I’m pretty sure he doesn’t have greater openness about controversial issues in mind, if Norway were to actually become a freer and more open society in the realm of free speech and toleration for dissent, if they were to actually allow their people to have a sense of true participation in the sense of going beyond letting them vote for the Socialist and the semi-Socialist, they would avoid things like Breivik’s terrorism in the future. If opposition to massive Muslim immigration, to pick a random issue of contention, was something that was “on the table” for discussion in European countries; if it was a topic that Europeans could feel free to discuss, debate, to disagree about without being prosecuted and treated like racist Neanderthals who should be shunned by polite society, maybe Norway (and, potentially and unfortunately, other European countries where this sort of thing is all too likely to happen again no matter how much gun control and surveillance exists) wouldn’t make themselves into a pressure cooker for their own people. Human freedom is always preferable to slavery and suppression.
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City in Bankruptcy Asks to Void Union Contracts Crushing Finances

Mike Shedlock

At long last ‘Dire’ Situation Forces Rhode Island City of Central Falls Into Bankruptcy

Central Falls, Rhode Island’s poorest city, filed for Chapter 9 bankruptcy protection as it struggles to meet its pension obligations.

The petition was filed today after state officials failed to persuade unionized police, firefighter and municipal retirees to accept voluntary benefit concessions, according to a statement from Robert Flanders, a judge appointed to oversee the city’s finances. Flanders said he asked the court to reject existing collective-bargaining agreements with the unions.

Central Falls, a city of about 18,000 located about 6 miles (9.7 kilometers) north of Providence, is the fifth municipal entity to file for bankruptcy this year, compared with six in all of 2010, according to data compiled by Bloomberg. The filing followed last week’s move by lawmakers in Jefferson County, Alabama, to postpone a vote on proceeding with what would be the biggest U.S. municipal bankruptcy.

The Central Falls pension plan was expected to run out of assets by October without additional funding or significant concessions from both current employees and retirees, according to a June 17 report from Moody’s Investors Service.

Frank Bailey, a U.S. bankruptcy judge in Massachusetts, will oversee the bankruptcy for the city, according to a court filing.
Police and Firefighters Asked to Accept 50% Pension Haircuts

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On July 23, 2011 I reported Central Falls Gives Ballots to Police and Firefighters Asking for 50% Pension Reductions or Risk Losing Everything in Bankruptcy Court

In a scene that is going to play out in scores of cities across the nation, unions are going to come to grips with the fact that pensions are not sacrosanct. Please consider Rhode Island city asks retirees to cut their pensions

Simple Rule

What cannot be paid won't. Taxpayers have had enough. Central Falls is a small and troubled city, but this same scene is going to eventually hit Pittsburgh, Oakland, Houston, Detroit, San Francisco, Los Angeles, Chicago, and most likely every major city in the country.

Benefits are untenable. The sooner something is done, the better off everyone will be.

Things That Must Change
  1. Defined benefit pension plans for government workers must end
  2. Davis-Bacon and prevailing wage laws that drive up costs of Federal projects and clobber city and municipal governments must come to an end
  3. National right-to-work laws must be enacted
  4. Collective bargaining of public unions must end
  5. Existing pension benefits must be renegotiated
Unions will not like any of those but they are all going to happen.

I am disappointed that Rand Paul and others in the Senate did not take up points 2 through 4 in the budget negotiations. Small tax hikes in return for those items would have been well worth it.
Vallejo Precedent: Union Contracts Can Be Voided

Central Falls retirees said no, and now it is up to the courts. Please recall there is already precedent in Vallejo, California for union agreements to be tossed out in bankruptcy.

Flashback March 17, 2009: Judge Rules Vallejo Can Void Union Contracts
In a groundbreaking ruling as well as a rare victory for common sense and the overall good of taxpayers, Bankruptcy Judge Rules Calif. City Can Void Union Contracts.
The Central Falls' police and fire fighters are taking a big chance. There is no realistic alternative to massive cutbacks in those pension agreements. Raising taxes would drive out homeowners and businesses and that is the last thing Central Falls needs.

Expect this type of action to hit major cities within the next few years. The sooner the better because public union pension contracts are untenable.

Mike "Mish" Shedlock
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Can Islam Be Reformed?

Dennis Prager

The question is in no way meant to be provocative, let alone insulting. But the world, including vast numbers of Muslims, needs this question answered.

After having studied Arabic at college and lectured on comparative religion for decades, and having devoted years to writing my upcoming book comparing American values with leftist and Islamist values, I have become convinced of two things regarding Islam: It must be reformed, and it can be reformed.

Both suppositions are highly controversial. Few believing Muslims think that Islam needs to be reformed; the suggestion would strike most religious Muslims as absurd, if not insulting and ultimately blasphemous. And it would strike many non-Muslim critics of Islam as naive. As Lord Cromer, British consul-general in Egypt from 1883 to 1907, put it in a quote known to all Western students of Islam, "Islam reformed is Islam no longer."

Let's deal first with the question of whether Islam needs reforming.

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The case for it is compelling. Here are a few reasons:

-- Majority-Muslim and Islam-based countries are not, and have not been, free societies. According to the 2010 Freedom House "Freedom in the World" survey, of the world's 47 Muslim-majority countries, only two are free, 18 are partly free, and 27 are not free. There is no honest explanation for this nearly total absence of liberty in Muslim countries that does not reflect in some way on Islam.

-- Muslim treatment of Jews and Christians in places like medieval Spain was morally far superior to the treatment of non-Christians by European Christians during the same period. But in the modern period, nowhere that Islam has controlled has afforded non-Muslims anywhere near the equality that non-Christians have taken for granted in the Christian world.

-- There was a burst of intellectual and scientific creativity in the Muslim world for a few hundred years, but then the opponents of reason came to dominate Islam, and with it came a loss of scientific and intellectual curiosity.

How could it have been otherwise? The dominant Muslim view was that the natural world had no laws. Everything that occurred did so solely because Allah willed it. If an arrow hit its target, it was not because of the archer's ability or wind patterns or laws of physics; it was because Allah willed it.

According to a United Nations report written by Arab scholars, the Arab world's lack of interest in the non-Arab and non-Muslim worlds is so great that in any given year comparatively tiny Greece translates more books into Greek than all the Arab countries combined translate into Arabic.

-- Regarding women, one cannot name a culture or religion in which the status of women is as low as it is in many Muslim societies. Moreover, the status of women has actually declined in many Muslim societies in the present generation. For example, the veil is more common in Egypt today than it was a hundred years ago.

-- In nearly every Muslim country in which non-Muslims live (usually Christians) -- from Nigeria to Egypt to Iraq -- they suffer persecution.

-- A very small percentage of Muslims are terrorists. But nearly every international terrorist is Muslim. And according to every poll I have seen, at least 70 million of the world's more than a billion Muslims support Islamist actions and theology.

-- Every state that calls itself an Islamic Republic and rules according to Islamic law is a totalitarian state, and it is usually a bloodthirsty one. Saudi Arabia is an example of the first; Taliban Afghanistan, Islamist Iran and Islamist Sudan are examples of both.

So, yes, Islam needs to be reformed. This is no insult to Muslims. Judaism and Christianity have undergone major changes. And needed to.

Can Islam be reformed? I do not agree with Lord Cromer. I believe it can.

What is necessary is that Muslim reformers:


1. Honestly acknowledge the Muslim moral record -- i.e. the lack of liberty in Muslim nations, the killing of large numbers of non-Muslims, the low status of women, etc. This does not necessitate rejecting the Quran or Islam.


2. Eschew incorporating Sharia into state law and oppose the establishment of any Islamic theocracy (which is not, in any event, Quran-based, according to moderate Muslims).


3. Publicly and unambiguously condemn all violence in the name of Islam, including violence against Israel.


4. Express a deep appreciation of the moral record of America, including its superb treatment of both its Muslim citizens and Muslim immigrants, along with a complete rejection of the Islamist notion that America is hostile to Muslims.


5. Fully accept the existence of Israel as a Jewish state, and distance themselves from the Muslim/Arab obsession with Israel.

At this very moment, there are Muslim reformers who believe and express all five of these propositions.

Examples include University of Delaware Professor Muqtedar Khan, who runs www.ijtihad.com: "American Muslims really have no reason to feel they are victims of anything ... ." The Muslim American community is thriving, proof of "America's benevolence and tolerance of Islam."

Another is Ahmed al-Rahim, a professor of religious studies at the University of Virginia: "The most important message is that we condemn all kinds of hate speech, including anti-Semitism and anti-Americanism, and that we come out as boldly as possible against violence committed by Muslims in Iraq, in Israel ... . "

Regarding the Muslim obsession with Israel, Khan has written: "It is time the leaders of the American Muslim community woke up and realized that ... Islam is not about defeating Jews or conquering Jerusalem. It is about mercy, about virtue, about sacrifice and about duty. Above all, it is the pursuit of moral perfection."

Zainab Al-Suwaij, a refugee from Saddam Hussein's Iraq and executive director of the moderate American Islamic Congress, publicly declared that America "has given Iraqis the most precious gift any nation has ever given another -- the gift of democracy and the freedom to determine its own future."

And Dr. Zuhdi Jasser, a physician in Arizona whose parents fled Syria in the 1960s, is the founder and chairman of the board of the moderate American Islamic Forum for Democracy (AIFD). A believing and practicing Muslim, Jasser advocates American values, promotes a Quran-based life to be practiced by the individual Muslim and never imposed by the state. He is courageous in confronting the Islamist Muslim groups that the mainstream media in the Western world have promoted to appear as the spokesmen for Western Muslims.

As Jasser says of organizations such as CAIR and other so-called Muslim civil rights organizations, "There was more concern with hate crimes against Muslims, which I think were relatively low; there was more focus on that than actually looking at the violence and the hate speech that has been committed in the name of Islam."

Islam is too important to deny its need to reform. And it is too important to deny its ability to ever reform.

And if it does reform, Muslims who have embraced America and American values will lead the way.
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7 Examples Of Liberal Unfairness

John Hawkins

If one child complains that he didn't get as much food as his brother because his frankfurter was cut into four pieces, while his brother's hot dog was cut into five pieces, we laugh. What we often don't realize is that the definitions of "fairness" that adults use are often every bit as arbitrary as those of children. This is why politicians are so in love with the word "fairness." Using that word justifies their attempt to swoop in, ignore merit, overrule the market, and take something from one group of people to give it to another group of people who are more likely to vote for them. So next time someone starts talking about "fairness," put your hand over your wallet, put on your thinking cap, and consider that what liberals define as "fairness" could look extremely "unfair" if you're open minded enough to take a look at it from another perspective.

1) Affirmative Action's only "fair?" The idea here is that we're going to discriminate against white Americans who have not done anything wrong in order to help black Americans who may not have been discriminated against so that we can make up for past discrimination against black Americans. That begs the question: Do we flip this around at some point and start deliberately discriminating against black Americans again to make up for the government's discrimination against white Americans? It may sound outrageous, but that ridiculous idea would be every bit as "fair" as Affirmative Action.

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2) Making losers pay for legal costs would be "unfair" to the little guy! Because liberals get a lot of money from trial lawyers, they oppose a "loser pays" rule for lawsuits. They justify this by saying that system would be "unfair" to the people suing. Why, what if they couldn't afford to sue because their opponents’ legal fees would be too high? Of course, that's a really backward way to look at it. After all, how fair is it for someone to have to spend countless hours of their time and tens of thousands of dollars defending themselves from a meritless lawsuit without compensation? Surely, if it's "fair" for the plaintiffs to get money if they win, then it should be "fair" for the defendants to at least have their expenses covered if they triumph.

3) The rich aren't paying their "fair" share. It's easy to take shots at rich people. There usually aren't enough of them to swing an election with their votes, nobody really feels sorry for people who have a lot of money, and as often as not, they give contributions to both parties as "protection money." But here's a thought: How can the rich not be paying their "fair share" when the top 10% of Americans pay 69.9% of the money we take in from the income tax while 47 percent of Americans don't even pay a single dollar a year? Arguing that people -- who probably pay for all the services they'll get from the government in an entire lifetime over any given month -- aren't paying their "fair share" while so many people pay nothing at all, seems more than a bit....."unfair."

4) Cutting spending would be "unfair!" Any time you try to cut something from the budget, there are aliens in other galaxies who can undoubtedly hear the screams from space. We get rants about cruelty, Tea Party "terrorists," pushing old people off cliffs, balancing the budget on the backs of the less fortunate -- it goes on and on. However, there's no such thing as "free" government money. So, what we're actually doing is selling our children into debt slavery so that liberal politicians can borrow more money to buy votes today. What could be crueler or more "unfair" than a child who's born starting his life more than $176,000 in debt before he's ever opened his eyes for the first time?

5) Minimum wage laws make sure people get a "fair" wage. If you're making the minimum wage right now, it's entirely possible that the law benefits you by insuring that you get paid a higher wage than you otherwise would. Liberals would call this "fairness." But, how about all the people with low skills who either aren't worth the minimum wage or who could be hired for jobs that don't merit the minimum wage? It's all well and good to say that a job's not worth someone's time if it doesn't pay the minimum wage, but there are probably a lot of unemployed Americans who'd be grateful to make $7 an hour while they look for a better job. What's "fair" to those people about putting a law in place that prevents willing businesses from hiring willing workers who desperately need the money?

6) Not allowing illegal aliens to become American citizens is "unfair!" If we allow people who sneak across the border or overstay their VISA to become American citizens, then doesn't that make legal immigrants look like complete idiots? There are people who spent years in their home countries, paying thousands of dollars, and filling out endless paperwork while liberals want to give people who broke the law the gift of American citizenship? What's the message to people who became citizens the right way supposed to be other than, "You are a moron for following the rules?" How can it be anything other than grossly "unfair" to legal immigrants to give illegals a break? Additionally, how about all the American workers, including legal immigrants, who have less money to bring home in their paychecks each week or no jobs at all because illegal aliens who pay no car insurance, health insurance, or taxes can afford to do the job at a cheaper price and drive down wages? How "fair" is it to hurt American citizens to help people who didn't even come to this country legally?

7) Wal-Mart isn't "fair" to its employees. Liberals generally don't like big corporations and they especially don't like Wal-Mart because it's an enormous company that has successfully fought off unionization. This leads to cries that Wal-Mart's "unfair" because it doesn’t pay its employees enough or allow its employees to buy fancy health care plans. Of course, if Wal-Mart could be perfectly honest, its response would probably be, “We don't force our employees to work for us and if they decide they’re unhappy, they can always go somewhere else.” That being said, there's another group of people who aren't being "fairly" treated by the liberal push to unionize Wal-Mart – Wal-Mart customers. Wal-Mart employs more than 2.1 million people in America, but roughly 82% of American households shop at Wal-Mart each year. If Wal-Mart is forced to pay its employees more, then you're taking money out of the pockets of everyone who shops there to pay for it. Why should a dirt-poor widow with four kids who buys her groceries at Wal-Mart be forced to pay more money than she would otherwise to subsidize union salaries? That seems more than a little "unfair."
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There is the Real World, and There is Washington

By Doug Patton

Imagine receiving your monthly bills — gas, water, electric, cable TV, cell phone, insurance, even your home mortgage — and tossing them all into a drawer unopened. Then, as the shut-off notices start rolling in, picture yourself reaching for the plastic in your wallet to pay them on credit.

When you run out of credit, you call the credit card company to demand an increase in your limit. The customer service representative politely but firmly explains that this will not be possible because they have already raised your credit limit several times in the last few years. Furthermore, because you are barely paying your minimum payments, and because your credit rating has been downgraded, they will be raising your interest rate — substantially.

Your next call is to your banker, who informs you that you cannot borrow more money against your home because it was already mortgaged at 125 percent of its value before the bottom dropped out of the housing market, leaving you upside down on the loan. In fact, the bank is initiating foreclosure against you because you haven’t been making your payments on time.

You are now so desperate for cash, you contact a friend who knows a guy who knows another guy who just might be able to float you a loan. The only drawback is that this guy will send another guy to break your kneecaps if you don’t pay him.

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You acquiesce to this unworkable arrangement, only to find yourself faced with a deadline you know will put you in a wheelchair. Frantic, you buy a gun and use it to start robbing rich people in broad daylight. This supplies you with all the funds you need to pay off your loan, and everyone lives happily ever after.

That is the world in which Barack Obama and the Congressional “leadership” reside. Living inside the Washington bubble means they can go on television with a straight face and explain to the American people that because we are now able to borrow trillions more in unrepayable funds, from people who do not have our best interests at heart, everything is going to be okay.

Earlier this year, House Budget Committee Chairman Paul Ryan put forth a reasonable budget that actually would have started us on a path to fiscal sanity. House Republicans passed it and sent it to the Senate, where Democrats, as they have done at least since the days of their hero, FDR, immediately began to demagogue it. Their friends in the media demonized the plan, calling it “radical.” Senate Republicans ran away from it.

Then the Republican-controlled House (with a handful of brave Democrats) passed "Cut, Cap and Balance," which would have done exactly what its name implies: cut the deficit, cap the spending and require that a Balanced Budget Amendment be sent to the states for ratification.

Contrary to the shrill, dismissive rhetoric coming out of the White House and the Democrat congressional leadership, this bill also would have increased the debt ceiling by the $2.7 trillion Obama was demanding. But more importantly, it would have signaled to the world that the United States of America was finally getting serious about its finances.

The American people overwhelmingly favored Cut, Cap and Balance. According to a poll conducted by CNN (not exactly a bastion of conservatism), 66 percent of Americans supported it. Had House and Senate Republicans remained united behind that bill — and that bill only — Barack Obama and the Democrats would have been left with a choice: either pass it into law or justify their fiscally irresponsible behavior to the voters, as they tried to do last November when they had to defend Obamacare, which received not a single GOP vote.

There is the real world, and then there is Washington. Most Americans live in the real world where bills have to be paid. But Congress and the president prefer living in a dream world where Louie the Loan Shark keeps giving them money and they keep robbing future generations to pay for their excesses.
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© 2011 by Doug Patton
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Doug Patton describes himself as a recovering political speechwriter who agrees with himself much more often than not. Now working as a freelance writer, his weekly columns of sage political analysis are published the world over by legions of discerning bloggers, courageous webmasters and open-minded newspaper editors.
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