OTTAWA (ca.news) - "North American markets roiled and the Canadian dollar tumbled Monday in the wake of the sale of New York investment bank Bear Stearns for a fraction of its former value, with some economists tentatively drawing comparison to the 1929 stock market crash.

      The volatility began overseas after the U.S. Federal Reserve held an emergency meeting on Sunday and cut its key rate by one-quarter of a point and said it was willing to back-stop institutions with urgent loans.

      In Canada, banking stocks took it on the chin as concerns spread about their level of exposure to the U.S. subprime fiasco, with the sector dropping 2.8 per cent in early afternoon trading, and the Canadian Imperial Bank of Commerce (TSX: CM.TO) stock tumbled nearly five per cent.

      CIBC is the Canadian bank that has been hit hardest by the credit crunch in the United States, with writedowns nearing $3 billion.

      Overall, the TSX dropped tumbled by more than 400 points at one point Monday, and the Canadian dollar was down almost 1 1/2 cents US. Both recovered somewhat to close down 300.7 points and 1.33 cents US, respectively.

      Finance Department spokesman David Gamble released a statement noting that Canada is not immune to global instability but assuring that its "banks and other financial institutions are sound and well capitalized."

      The Fed's Sunday surprise was both directed at controlling the aftershock of Bear Stearns and to forestall a run on Lehman Brothers, another troubled investment bank whose shares slid Monday on rumours it might be the next to face a liquidity crisis. Lehman said its cash position was strong.

      "The threat of contagion and wholesale breakdown on a scale of 1929 is real," said University of Maryland business professor Peter Morici.

      "The real questions are - which of the big banks will be next to fail? How many more banks will fail? Will the whole system turn to panic if Citigroup (another troubled bank) unwinds?"

      Harvard economist Martin Feldstein said the U.S. economy could suffer the worst recession since the Second World War..."

      WASHINGTON (AP) - "Americans have a right to own guns, Supreme Court justices declared Tuesday in a historic and lively debate that could lead to the most significant interpretation of the Second Amendment since its ratification two centuries ago.

      Governments have a right to regulate those firearms, a majority of justices seemed to agree. But there was less apparent agreement on the case they were arguing: whether Washington's ban on handguns goes too far.

      The justices dug deeply into arguments on one of the Constitution's most hotly debated provisions as demonstrators shouted slogans outside. Guns are an American right, argued one side. "Guns kill," responded the other.

      Inside the court, at the end of a session extended long past the normal one hour, a majority of justices appeared ready to say that Americans have a "right to keep and bear arms" that goes beyond the amendment's reference to service in a militia.

      Several justices were openly skeptical that the District of Columbia's 32-year-old handgun ban, perhaps the strictest in the nation, could survive under that reading of the Constitution.

      "What is reasonable about a total ban on possession?" Chief Justice John Roberts asked.

      Walter Dellinger, representing the district, replied that Washington residents could own rifles and shotguns and could use them for protection at home.

      "What is reasonable about a total ban on possession is that it's a ban only on the possession of one kind of weapon, of handguns, that's considered especially dangerous," Dellinger said.

      Justice Stephen Breyer appeared reluctant to second-guess local officials.

      Is it "unreasonable for a city with a very high crime rate ... to say no handguns here?" Breyer asked.

      Alan Gura, representing a Washington resident who challenged ban, said, "It's unreasonable and it fails any standard of review."

      The court has not conclusively interpreted the Second Amendment since its ratification in 1791. The amendment reads: "A well regulated militia, being necessary to the security of a free state, the right of the people to keep and bear arms, shall not be infringed."

      The basic issue for the justices is whether the amendment protects an individual's right to own guns no matter what, or whether that right is somehow tied to service in a state militia..."

      Baltimore — (TFN) "This week, as the financial sector began to give way under the unbearable weight of bad mortgage debt, the Federal Reserve stepped in to save the day.  At least that’s what it says in the script.

      In a surprise move, the Federal Reserve announced its intention to swap $200 billion of treasury debt for $200 billion of potentially worthless mortgage-backed securities. The Fed may have been partially spurred to take the step as a result of the rapid collapse of Carlyle Capital Corp., a publicly traded private equity firm that is a subsidiary of the Oil-Producers-Buying-Spree Carlyle Group.

      The Dutch firm could not meet margin calls on its depreciating collateral of AAA-rated mortgaged-backed securities guaranteed by Fannie Mae and Freddie Mac. On Friday, the Fed then took the unusual step of providing emergency “non-recourse” funding to Bear-Stearns-Troubles Nov-07 Bear Stearns, collateralized by that firm’s similarly worthless mortgage debt. Apparently the Fed now stands willing to assume any mortgage-related risk that no other private entity would touch.

Extreme measures

      That the Fed would take such extreme measures, which would have been considered unthinkable even a few months ago, followed a few notable media events that may have affected their thinking. On Monday, Wall-Street-Layoffs Wall Street was rocked by an article in Barron’s that suggested that government-sponsored lenders Fannie Mae and Freddie Mac lacked sufficient capital to cover the likely losses on the $5 trillion in mortgages they insure (a position that I have taken for years) and raised the possibility of either bankruptcy or a Massive-Bailout-Planned-for-Banks government bailout. On CNBC the next day, Paul McCulley, the managing director at Pimco, the world’s largest bond fund, publicly called for the Fed to use it balance sheet and its printing press to buy mortgages.

      According to the Fed, its new plan does not amount to buying mortgages but simply accepting them as collateral for 28-day loans. However, will the Fed really return these ticking time bombs to their true owners in 28 days, inciting the very collapse its actions were originally designed to postpone? Why does the Fed believe that the mortgages will be marketable next month; or the month after that? Nor can we believe that such “loans” will be restricted to only $200 billion.

      Bear Stearns and Carlyle are certainly not alone in massive exposure to bad debt. Given the unprecedented leverage that many of the biggest financial firms used to play in this market, there will be many more failures to come. Does the Fed stand ready to bail out all comers? Based on this course of action, the Fed, or more precisely, American citizens, will end up with trillions, not billions, of such securities on its books.

      The problem with these mortgages (other than the borrowers lacking any means or desire to repay them) is that the underlying collateral is worth a fraction of the face amount. With recent foreclosure recovery rates amounting to less than 50 cents on the dollar, it is no wonder that no one wants them. The Moody-Ratings-Fiasco Sep-07 real estate bubble allowed borrowers to leverage themselves to the hilt using inflated home values as collateral. Now that the bubble has burst, mortgage balances far exceed current property values. It is a trillion dollar time bomb that no one can possible defuse.

Frying pan and fire

      Paper dollars are technically Federal Reserve Notes, which means they are liabilities of the Fed. When it puts newly minted notes into circulation it does so by buying assets, usually U.S. treasuries, which it then holds on its balance sheet to offset that liability. By swapping treasuries for mortgages, the Fed effectively alters the compilation of its balance sheet and the backing of its notes. 

      However, backing paper money with mortgages is nothing new. The French tried it in the late 18th Century, and it lead to hyperinflation. Assignats, which were first issued in 1790 to help finance the French revolution, were backed by mortgages on confiscated church properties.

      Although the stolen underlying collateral did have some value, the revolutionaries saw no reason to limit how many Assignats were printed, which resulted in massive depreciation. Within three years, price controls were introduced and failure to accept Assignats, initially an offence subject to six years in prison, was made a capital crime. By 1799 the currency was completely worthless.

      If even the threat of death could not prop up the Assignat, does anyone believe that the currency could have been saved if Robespierre had forcefully mouthed a “strong Assignat policy” as President Bush is now doing with the dollar? Rather than repeating the mistakes of history we should learn from them. Our own failed experiment with the Continental currency as well as the Great Depression should prove conclusively that it is Austrian, and not French, economics we should be following..."

By Greg Evensen

March 15, 2008

NewsWithViews.com

      "For thirty years, I have been writing, speaking, imploring, and begging others to make rational, concrete plans for a time in life that would offer no quarter, give no mercy, and that would in a word be--catastrophic. We are coming face to face with that moment. You have so little time left to do anything that will give you a fighting chance. What are you doing?

      National Guard units are training and preparing for urban combat. The United States has just reached an agreement with Canada’s armed forces to come in to this country and assume combat roles should they be needed in American cities and towns. The Federal Reserve’s last ditch effort to stem the “blood loss” in the sub-prime and other currency markets has failed. The dollar has been abandoned for Euros. The stock market can’t find its ass with both hands and a Chinese made, Wal-Mart sold ass finder. Israel has demanded that all of the financial aid it receives from Washington (that’s us) be paid for in Euros. The ultimate irony and slap in the face. Oil, dairy, wheat, wheat products, gold, silver, copper prices, the list goes on and on, are racing for the stratosphere with no end in sight. An implosion has begun and it has no known method of stopping or reversing until critical mass is reached. It will be followed by an explosion in the economy and the political realm unseen since the founding of this nation.

      The ultimate tragedy is, this was preventable. It could have been slowed or reversed at any time if a courageous and morally upright Congress had revealed the root causes for the disaster. If the socialist “generals” in Congress had been defeated or at least their programs thrown out at the time of their introduction, billions would have been saved. If the truth and our first president, General George Washington’s advice had been followed, every conflict since WWII would have been avoided. During the past 60 years, 120,000 American soldiers would have survived, 500,000 would have been physically uninjured, and two trillion in direct costs and the rehabilitation money grants to former enemies would have been saved.

      The size of the federal government would be less than half of what it is today, the budget of the US government would be about 500 billion as opposed to two and one half trillion on a yearly basis and we would most likely be at relative peace. Lack of foolish and unnecessary regulations, taxes, and frivolous lawsuits, would have allowed an explosion of small businesses to thrive. The lack of a Federal Reserve System would have allowed the United States to remain a creditor nation based on assets rather than suffering under a crushing debt imposed by the feds dictatorial control over the people’s treasury. There are so many reasons why we could have avoided all of this. Thousands of perfectly good reasons IF employed by thousands of honest, moral, representatives who simply could have done the citizen’s business the way God and sound governmental practices demanded ---would have, should have, and could have made the critical difference.

      Instead, we saw year after year, decade after decade, and now century after century of greed, bring ultimate ruin to this marvelous nation called America. Although we did not want it, we have allowed it to happen. It resolves nothing and does not buy us a way out, but we must accept our responsibility for this debacle and now prepare for what is coming.

      Friends, you must begin NOW if you have not done so, to protect yourselves and your family from this pending---as the disaster movies call it---“extinction level event” for our former way of life. If you hesitate, you will be caught in the maelstrom that is the next six months to five years of life in the US. Pick your poison. If you like global warming and believe that is going to do you in, well then, build a refrigerated secure basement. If you like the Planet X scenario, then prepare for 800 mph winds and basically a “pole shift” that will leave nothing at all. If you live in a nuclear target city, or worse yet (worse??) yes, in a sanctuary city, then get out and get out quickly. Here is what you must do.

      Consider geography carefully. I don’t care where you live now, choose your “Ride & Hide” (ride it out and hide from the enemy—you pick ‘em) location with great wisdom. Coasts are bad, arid regions are bad, rural northern and mountainous regions are the best. Why? Fewer people mean fewer morons to deal with. Weather considerations, wild game availability, timber resources, fresh water, tillable soil, survival off the utility grid is doable, herding small numbers of livestock is possible, also grazing horses can be kept. Being at least 50 miles from the nearest interstate or major highway is preferable, the same with commercial airports and nuke plants. Holing up with really close friends or family is the ultimate best so that expenses, work loads and practical skills are shared to your best advantage. Be ready to leave your city home with only one or two hours alert time. You may not even have that. Practice getting home, loading, and leaving at least once. Notify only those in your group that would be affected. Tell no one else what you are doing. Keep your gas tank full and an extra 5-10 gallons.

      Securing the land with a rugged structure(s) and reinforced underground shelter can be expensive, however; it is an absolute. Stocking that domicile with stores of enduring foods, food components (flour, raw sugar, yeast, salt, etc.) medicines or natural remedies (apple vinegar, honey, olive leaf extract, etc.) an electric generator and at least 500 gallons of diesel, 100 gallons of kerosene for lamps, tools-------you know the drill. There are many sites available to assist you in stockpiling long term necessities right at NWV.

      You will be happy to know that your government in Washington has assisted these efforts to protect your family from ANY kind of disaster by making it a felony to harbor many items (as listed in the Patriot Act II). You know, be wise, be prepared, but if you go more than a week’s worth, we’ll put you in one of 800 non-existent Halliburton model “stay for a while, we’ll leave the lights on ” Washington style long term family “vacation” detention campsites built with illegal or prison labor, right here in the good old US of A.

      Moving your money freely will become even more difficult as banks begin to restrict the amounts that can be transferred from savings accounts and other short-term investment vehicles under their immediate control. Using personal checks outside of your own community will become increasingly difficult, soon. Bank drafts or money orders will do for a while, but many real estate, large business or supply companies will require that you jump over difficult hurdles so that they are not left to chase you down for payment.

      Securing advance amounts of medical supplies, especially prescriptions and antibiotics (Tami flu, Amoxicillin, Keflexin, etc.) will be very difficult as most insurance companies will only reimburse for 30 days or less. If you have any serious dental issues, (abscessed teeth), surgeries, glasses or other necessary medical needs, get them done, now.

      Consider transferring available 401K, IRA accounts, or other liquid plans into gold or silver before their availability or price are literally beyond reach. A penalty for withdrawal is not desirable, but highly preferable to empty or inaccessible accounts next month or whenever.

      Have GPS chips removed from your newer vehicles, laptops if possible, and prepare to leave your cell phones in the lake 100 miles from your retreat. Leave your ID chipped pets at the humane society and any animals you raise for food consumption must be newly born and chip free (many good patriots are telling the state and federal USDA to, well, you know, but that won’t last much longer as most states are going into compliance regardless of what the law says, the constitution says, common sense says or what God himself says. The same is true with the REAL ID. That card is also becoming, state by state, the final nail in the coffin of personal liberty. Consider it the mark of the beast (I don’t know if it is, but it could be). The personal ID chip is without a doubt that mark, I personally believe. I will not UNDER ANY CICUMSTANCES take that chip, no matter what it ultimately costs me. That is why, among many reasons listed here, common sense and the urgency that is coming at you like the freight train from Hell, you must complete your personal retreat plans, NOW.

      Are you getting the picture dear friends? Laugh at me if you will. Marginalize me and others who are begging you to make this effort while you can, but hear this: IF YOU ARE CAUGHT IN A CITY OR WITHOUT THE MOST BASIC OF NEEDS, YOU WILL NOT SURVIVE A CRISES.

      That is the absolute truth and the absolute facts of life. You will be among the first victims of the event or its immediate aftermath. Roving gangs of real pirates and sadistic tormentors will only seal your fate in a most cruel fashion.

      Ask yourself this single question. What do you have now that is so worth keeping (suburb mortgaged home, SUV, boat, hockey equipment, a JOB that is killing you, etc.) over your life and that of your family? Is your morning cup of Starbucks worth this effort? For God’s sake, WAKE UP!! If you haven’t really cared who or what the Federal Reserve is, well, don’t worry about it now. Just get your money out and do something with it while you can. If you haven’t followed the presidential debates, then don’t watch them now, either. Decide for yourself what you are going to do for your family and this nation by becoming independent and “free” in spite of this and the world government’s absolute determination to rule you completely and forever. Can you let go of football and beer long enough to answer that single question? I’m ready, some of you are ready, many of you are not. If you refuse to get ready, then I bid you farewell. You were never my fellow countryman to begin with. God help you.

      Your last consideration must be in terms of self-defense. This will draw the ire of many morons who were just waiting for this. To you, I say, don’t ever buy a gun. You would only eventually supply a criminal with one more weapon. To everyone else, think shotgun, first. A 12 gauge, 20 inch rifled barrel chambered for 3” shells. Buy at least 1000 rounds of OO Buckshot for defense, 1000 rounds of slugs for large game, and 1000 rounds of #6 shot for small game and birds. These are all round good loads for most situations. Professional hunters may argue a bit, but I tell you from experience hunting and in law enforcement, this will do it. The make of the weapon is your choice, but I would stick with Remington or Mossberg as my first pick. There are others, check with a reputable sporting store to assist you. A Ruger .22 rifle and a 1000 rounds will do for quieter small game. A .308 and 500 rounds will do for long range whatever you need to do shooting—if you get my drift.

      A Ruger Mini-14 rancher model chambering .223 with several 20 or 30 round clips and 1000 rounds will be good for when you are outnumbered, and a .45 Government model Kimber or Springfield Armory pistol with 10, 10 round clips and 1000 rounds will do you well. That’s roughly $4500 worth of weaponry. Cheap in defense of all that you have. A good four wheeled vehicle of any kind for off road use rounds you out. I’m pretty good at spending your money, hmm? Forget the vacation that would have cost you that anyway. Forget the new $50,000 truck that you just couldn’t live without. You will LIVE if you use that money wisely. You have just weeks or a few months—MAYBE—to be positioned for any possibility. Natural or manmade. If I am wrong, sell it in a couple of years to someone who still sees the need and you’ll be free to be at risk again.

      This is the article that many of you have been pleading with me to write for over six months. I did not want to present it prematurely and yet it’s anybody’s guess as to when it will be too late. There is a risk for the writer of such messages. The risk is that many will still ignore it, stick their heads in a little deeper or laugh nervously as they dismiss the content with, “he’s a typical right-wing worrier, this just can’t happen.” Well, I pray to God Almighty you are right and I am wrong. But then again, no matter what happens, I’m ready, my family and I have a good chance………………..are you ready, do you have any chance at all?"