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STUPID IS AS STUPID DOES
By Geoff Metcalf
March 4, 2009
NewsWithViews.com
"You do not examine legislation in the light of the benefits it will convey if properly administered, but in the light of the wrongs it would do and the harms it would cause if improperly administered." -- President Lyndon B. Johnson
Albert Einstein once defined “Insanity” as “doing the same thing over and over again and expecting different results.” That is precisely what the power crazed; myopic congressional democrats continue to do in reaction to their angst over the second amendment and the constitutionally reaffirmed God given inalienable right.
They ought to know better. Overwhelmingly, the American people have rejected the gun grabber’s pleas to disarm all except the government. Americans (even those who do not own guns) recognize that if government ever bans guns, only bad guys and a small contingent of police types, will have guns.
Among the gaggle of single issue voters (abortion, immigration, property rights, taxes, oil, military defense, etc.) guns and the Second Amendment advocates have been, and remain, the 800 pound gorilla.
Many of the single issue groups organize and make noise and/or videos, however, gun owners/supporters (more than any others), do way more than just make noise. They vote, and they get others to vote…and vote big.
An entire bumper sticker industry exists for pro-second amendment types. Thomas Jefferson, James Madison, Thomas Paine, James Monroe, Samuel Adams and Patrick Henry all trumpeted the refrain, "No free man shall ever be debarred the use of arms."
Jefferson quoted Cesare Beccaria’s 1767 words, "Laws that forbid the carrying of arms. . . disarm only those who are neither inclined nor determined to commit crimes. . . Such laws make things worse for the assaulted and better for the assailants; they serve rather to encourage than to prevent homicides, for an unarmed man may be attacked with greater confidence than an armed man."
However, once again, an elitist band of sycophant liberals seems intent on compelling you to accept the gospel according to them. Notwithstanding the huge statistical data of empirical evidence offered (see Dr. John Lott's blogspot) to refute their quest they seek to return to the well.
Only a myopic fool incapable of learning form past scars would presume to package something as insidious as H.R. 45, Blair Holt's Firearm Licensing and Record of Sale Act of 2009. Sponsored by Illinois Democrat Rep. Bobby Rush this omnibus gun grab seeks to “bring gun ownership in America to an end.”
Buried in the minutiae of H.R. 45 is the Brady crowd’s erotic dream:
• a national database of current firearm owners
• psychiatric testing
• fingerprint requirements
• specific requirements and restrictions
o on gun use
o and storage,
• and a whole lot more.
"It takes semi-automatic firearms and handguns – the guns people use for personal self-defense," Gun Owners of America’s spokesman said, "and sets up a licensure system, that is, the government would have to give you permission to own a gun.
The government can therefore also deny that permission, and it would mean an anti-gun administration could use it to effectively ban most guns from private ownership.
The key and tragic flaw of this plan is the conversion of a “Right” into a “Privilege.” If liberal Harvard law Professor Dr. Laurence Tribe’s recognition of the second amendment as an “individual right” were insufficient, the United States Supreme Court has finally acknowledged that fact.
Not to put too fine a point on it, but even the Second Amendment and the Bill of Rights doesn’t “give” us ANYthing. The Bill of Rights merely recognizes God given inalienable rights. Rights that no one (least of all Congress) can either give OR take.
Despite H.R. 45 having remained dormant in the House Judiciary Committee since it was introduced, it remains like a rotting piece of fruit just waiting for the next gun scare or school yard shooting.
H.R. 45 is a do over of 2007's H.R. 2666, which contained much of the same language and was co-sponsored by 15 other representatives including Barack Obama's current chief of staff, Rahm Emmanuel. H.R. 2666 was also assigned to the House Judiciary committee, where no action was taken. H.R. 45 currently has no co-sponsors and is likewise assigned to the House Judiciary committee.
Calvin Coolidge once observed, "It is much more important to kill bad bills than to pass good ones." H.R. 45 screams to be killed. In the Federalist, Number 46, it notes, the Constitution preserves "the advantage of being armed which Americans possess over the people of almost every other nation. . . (where) the governments are afraid to trust the people with arms."
Pundits are clamouring to explain why we're stuck in another financial mess, writes Leon Gettler.
The Return of Depression Economics
By Paul Krugman
Penguin Press, $26.95
The Two Trillion Dollar Meltdown
By Charles R. Morris
Black Inc, $27.95
Bad Money
By Kevin Phillips
Scribe, $32.95
The Great Depression Ahead
By Harry S. Dent Jr
Schwartz Media, $29.95
In his darkest and most scathing novel, The Way We Live Now, Anthony Trollope looked at 19th-century London captured by financial speculators and a swindle based on a crooked railroad stock.
It's easy to compare the amount of money invested in Trollope's fictitious railway to subprime mortgages, credit default swaps and collateralised debt obligations and the way loans in recent years were bundled up and sold to the market so that the money received came from other investors rather than profits, much like a Ponzi scheme.
Or compare Trollope's aristocrats clamouring to join the railroad's board, not knowing anything about the business but keen to profit from the soaring stock, to the way consumers in the recent boom were using their homes as ATMs, borrowing against their house and taking advice to buy shares with other people's money. Or the way banks and hedge funds seeking bigger returns ended up adding trillions of dollars to the public debt by investing in risky securities. Trollope's work is indeed a picture of the way we live now.
It's not as if we didn't have danger signals. Charles Morris, a former banker, makes the point that events such as the 1987 stock market crash and the collapse of the Long Term Capital Management hedge fund in 1998 were practice runs. All reflected the shift to deregulation, the agency problem where companies, their employees and contractors could act against the interests of shareholders, and the mistaken belief that markets could be reduced to mathematical formulas. "All three of those trends ... flowed together to create the great credit bubble of the 2000s."
Adding to the problem was the way former Federal Reserve boss Alan Greenspan slashed interest rates whenever there was trouble.
As a result, Morris says, a lot of the so-called prosperity was like a Potemkin village - fake because it was based on massive consumer borrowing on bubble-priced assets. Once upon a time, a simple credit arrangement, such as a mortgage or credit card, was a matter between the borrower and lender. But it was taken over by Wall Street bankers who tied the loans together, "securitised" them and sold them to investors with the securities sliced up with different levels of risk.
If you wanted the biggest return, you went for more risk. Starved for returns, investors resorted to the old trick: borrow money, buy the riskiest shares and magnify your returns. That was cheap with low-interest rates and made worse by banks and hedge funds embracing little understood derivatives, ensuring the collapse spread right through the global system.
The tragedy is that this meltdown is likely to continue for many years. Harry Dent, an economist and forecaster, warns that if we thought 2008 was scary, it was just the beginning. He reckons that 2010 to 2012 will see the worst economic and banking crisis since the 1930s. Real estate will also collapse.
Basing his forecasts on economic trends, and history, Dent says there may be a recovery in the second half of 2009, but it will be short-lived and will fall apart because of inflationary pressures, interest rates and a commodity bubble.
That's when the worst of the depression will hit, continuing on and off until mid-to-late 2012. Where would be a safe place for money? Dent says cash, money markets and, on a lag, the highest quality government and corporate bonds. There will be a rally, probably from mid 2012 to mid 2017 and then a less severe downturn until about 2020, or possibly 2023.
As if that's not bad enough, he warns of the next dramatic terrorist attack or seismic geopolitical event between late 2009 and mid-2010, perhaps brought on by oil prices that he warns are likely to go to above $US180 if there is a significant recovery in 2009 coming from all the stimulus packages being introduced around the world. The next boom will happen from 2023 to 2036, if we live that long.
Kevin Phillips, a former senior strategist for Richard Nixon's 1968 campaign, cannot see the Obama Administration reining in the buccaneers. In the 2008 election, the Democrats and Obama himself were funded by financial services firms including hedge funds.
Phillips also looks at the inability of all sides in politics to come up with a policy on energy and oil, even though the future of the US energy supply, the value of the dollar and global warming are converging on the interplay of oil and US currency flows. America is vulnerable to peak oil, which will weaken the US dollar even further.
Phillips makes four predictions: Asia will dominate the global economy by 2030; China is the best bet to be the dominant power in Asia; a city with a large Chinese population, and not necessarily in China, will become Asia's leading financial centre; and the premier currency in Asia will have a leading reserve function to sit alongside the US dollar and euro by 2030.
Like Dent, Paul Krugman tracks economic meltdowns over the ages. History, as Mark Twain said, doesn't repeat itself but it rhymes. Perhaps with that in mind, Krugman looks at the implosion of the Japanese economy 20 years ago, Asia's crash and the crises in Latin America in the 1990s, and Russia's troubled economy. He also casts his eye over other meltdowns such as the Panic of 1907 and of course the Great Depression, which "was brought to an end by a massive deficit-financed public works program known as World War II".
The truth is people have not learned from the past, and Krugman says we are now seeing a replay, writ large. "I'm tempted to say that the crisis is like nothing we've ever seen before. But it might be more accurate to say that it's like everything we've seen before, all at once ..."
To get out of this, we need huge spending to stimulate demand. And he says the US Government may well need to nationalise banks, reprivatising them when it is safe to do so.
Much of the problem comes from the massive growth of, and dependency of markets on, the financial services sector, which in the US accounted for 41 per cent of all profits in 2007. The irresponsibility of this sector ran in parallel with that of regulators around the world who adopted a hands-off attitude.
Blame much of it on the power of banks. Phillips reminds us of how the British colonial secretary, Joseph Chamberlain, chastised bankers in 1904: "Granted that you are the clearing house of the world, but are you entirely beyond anxiety as to the permanence of your great position? ... Banking is not the creator of our prosperity, but is the creation of it. It is not the cause of our wealth, but it is the consequence of our wealth."