What Could Possibly Go Wrong

The New Deal Origins of Fannie Mae and the Government-Housing Complex

"Fannie Mae is a classic crony capitalist progeny of the New Deal that began life in 1938, quite innocently, as still another ad hoc New Deal program to boost the depression-weakened housing market. It grew into something quite different: a monster that deeply deformed and corrupted the nation’s entire financial system seventy years later. The policy aim of Fannie Mae was 'forcing water to flow uphill' in the residential mortgage market so that low-rate thirty-year home mortgages became available to wage-earning households of modest means. Such mortgages did not then exist for a good reason: they were not economic." Continue reading →

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This failure rate will shock you

"There’s always a new elite showering themselves with unchecked dictatorial powers– from control of the money supply to control of the military. For example, four men control over 70% of the world’s money supply in our modern central banking system. They have the power to conjure unlimited quantities of currency out of thin air in their sole discretion. Meanwhile, the 'richest' countries in the world (US, Europe, Japan, etc.) are so deeply in debt that they have to borrow money just to pay interest on the money they’ve already borrowed. This isn’t rocket science. Predicting the end of this system is not attention-seeking sensationalism; it’s just common sense." Continue reading →

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Few Dare Discuss Social Security and the Decline in Full-Time Employment

"If the global economy slides into recession in the years ahead, as seems increasingly likely, full-time employment in the U.S. could slip to 100 million while the number of beneficiaries continues to soar by 10+ million a decade. All the official projections assume steady, strong increases in payroll taxes and full-time employment; the system's deficits will explode higher if full-time employment sags while the number of beneficiaries increases from 57 million to 70 million and then on to 80 and 90 million. Anyone who cares about the viability of Social Security had better wake up to the widening divergence of full-time employment and SSA beneficiaries." Continue reading →

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British warships arrive in Gibraltar amid tension with Spain

"British warships arrived in Gibraltar on Monday for scheduled exercises amid tensions with Spain over fishing around the British Mediterranean enclave. Although British, Spanish and Gibraltarian authorities have said the navy’s arrival at the British overseas territory is long-scheduled, some in Spain see it as provocative. Spain claims the territory, population just 30,000, which it ceded to Britain by treaty 300 years ago. In Monday’s German Sueddeutsche Zeitung, Gibraltar Chief Minister Fabian Picardo accused the Spanish government of creating conflict to distract attention from corruption allegations against the ruling People’s Party." Continue reading →

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Social Security and Medicare: Twin Disasters Loved by All Age Groups

"The Social Security system, like the Medicare system, is beloved of younger workers, because they think they're going to get a free lunch from the government when they're older, and this enables them to spend less money now for their retirement years. They love it. They figure somebody else is going to pay for their retirement, and they think they're going to dig deep into somebody else's wallet. This is a Ponzi scheme. But Ponzi schemes are incredibly popular with people. Think of Bernie Madoff. People loved to get in. They begged to get in. Madoff realized early that it was this insatiable desire for outsiders to get in that was his sustaining factor." Continue reading →

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Interest-Rate Market Going Berserk

"It seems the more bond yields surge, the more the bond fund managers say it’s not a 'real' crisis because 'inflation is still anemic.' These are the same guys who are bleeding assets, losing you money, and who have utterly failed to foresee the carnage of the past few months. Bond yields are not rising solely because of higher inflation, the traditional cause of rising rates. Instead, it’s all about the flow of hot money! Too much hot money piled into the bond market over the past four and a half years, encouraged by reckless Fed policy. And now the same investors who dog-piled into bonds to piggyback on the Fed’s policy are getting crushed." Continue reading →

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Fukushima scientists brace for riskiest nuclear fuel clean-up yet

"The operation, to remove 400 tons of highly irradiated spent fuel beneath the plant’s damaged Reactor No. 4, could set off a catastrophe greater than any we have ever seen, independent experts warn. An operation of this scale, says plant operator Tokyo Electric Power Company, has never been attempted before. An uncontrolled leak of nuclear fuel could cause more radiation than the March 2011 disaster or the 1986 Chernobyl catastrophe. Here’s what needs to be done: more than 1,300 used fuel rod assemblies, packing radiation 14,000 times the equivalent of the Hiroshima nuclear bomb, need to carefully be removed from their cooling pool." Continue reading →

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Fordlandia: Henry Ford’s Amazon Dystopia

"In 1927, the American industrialist Henry Ford began building a private city—Fordlandia—in the depths of the Brazilian Amazon forest. His company had won title to nearly 2.5 million acres of land—over 3,800 square miles—for a planned rubber plantation and company town. Ford spent over $20 million (about $300 million in today’s dollars) putting in roads, water and power systems, rail lines, factories, offices, medical facilities, homes, schools, and stores. Thousands of workers and their families flocked to Fordlandia. Soon, however, waves of rioting, looting, and burning roiled the city. Ford abandoned his namesake in 1945, leaving it to rot in the jungle." Continue reading →

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A Powerful Legal Tool, and Its Potential for Abuse: Material Witness Orders

"The orders are meant to help prosecutors compel testimony from problematic witnesses in criminal cases. But the orders are supposed to be used only in extraordinary circumstances, often when prosecutors fear a potential witness might flee instead of testifying. Controversy arose around federal prosecutors’ deployment of material witness orders after 9/11, when it came to light that they had used the warrants to detain large numbers of people to provide information about terror cases. But the use of these orders at the state-level remains largely unexamined." Continue reading →

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Four suspected Egyptian militants killed in first confirmed Israeli drone strike

"Although reports of Israeli drone use over Sinai have surfaced in the past, this is the first to come with official acknowledgement. In a statement on its website, the jihadist Ansar Beit al-Maqdis group confirmed that its militants had been the target of the Friday strike. It listed the name of four fighters who had been killed. Security officials said that the attack had taken place with the consent of the Egyptian authorities, Reuters and the Associated Press reported. If true, this level of cooperation would be a departure from that experienced under the rule of President Mohamed Morsi, ousted during a military takeover last month." Continue reading →

Continue ReadingFour suspected Egyptian militants killed in first confirmed Israeli drone strike