An ongoing war of words has characterized the frustration among borrowers and lenders. Those seeking funds frequently complain that "Banks aren't lending". They're right. Lenders complain that regulators have tied their hands by imposing much stricter lending standards. They're right, too. Unfortunately, this has led to a stalemate, which is precluding economic growth.
Marko's Take? The problem is the lending market is BI-LATERAL. The solution is to remove onerous restrictions on banks AND stop bailing them out! Let shareholders assume the risk. Let management assume the risk. Get Washington OUT!
Paul Volcker, backed by President Obama, recently proposed an excellent partial solution to this isssue: prohibit banks from money-making activities, such as running proprietary trading desks and sponsoring in-house hedge funds. In so doing, banks will have no option but to make money by LENDING!
Bankers responding to the January 2010 "Federal Reserve Senior Loan Officer Opinion Survey on Bank Lending Practices" indicated that residential loan standards are still contracting. In addition, consumer demand for mortgage loans continues to decline.
Demand for businesses and households across all major categories of loans weakened over the past 3 months. Of the survey's respondents, 25% reported a decrease in inquiries about new or increased credit as opposed to 13% that saw an increase.
A substantial number of the respondents reported that credit card limits had been decreased and that fewer new cards were issued.
The decrease in lending, whatever the reason, is impacting bank earnings. SunTrust, an Atlanta-based institution said its fourth quarter interest income, the revenue from lending, FELL 2% from the third quarter and 18% from a year earlier. However, profits from lending increased as a result because SunTrust has to pay less interest on deposits.
BB&T had fewer loan losses, so its earnings rose 5% to $1.5 billion, as the result of its purchase of failed Colonial Bank last fall. The bank's loan book rose 7% to $109.7 billion, but without the acquisition the portfolio would have shrunk.
While higher profits are welcome, it's better to generate revenue from core lending growth than from lower-loss provisions.
Without a dramatic turnaround in the lending activity of banks, the economy cannot grow. Unfortunately, with the economic recovery now appearing to sputter, this is a most worrisome sign that the Double-Dip is square ahead.
Marko's Take
Tuesday, February 2, 2010
Monday, February 1, 2010
A Technical Review Of Gold And Silver
"Technical", as it pertains to the analysis of a market, differs from "fundamental". The former refers to indicators like ratios, graphs and charts. To some people it's entirely akin to voodoo. It is typically employed as a tool of timing. The latter takes into account factors such as supply and demand and tends to be more tangible. Some investors completely avoid technical analysis, while others RELY on it completely. One of my favorite technical analysts is Clive Maund (http://www.clivemaund.com/).
.
This analyst thinks BOTH have value, however I'll focus only on technical analysis.
Often, the beginning spot for technical analysis is whether a market is "overbought" or "oversold". Either refers to an extreme level of virtually uninterrupted movement in a particular direction. For example, on a short-term basis, the precious metals market is clearly oversold. While that improves the odds of a reversal, it is nothing more than a necessary condition, but hardly sufficient. Markets can remain oversold or overbought for extended periods of time.
So, lets do some Marko's "Take-nichal" analysis and see where the chips fall.
The ratio of the "Gold Bugs Index" (HUI) to the price of Gold is a great place to begin. Historically, this ratio has traded between 0.4 and 0.6. In a healthy market, individual miners will outperform Gold itself and the ratio will tend to increase. In November 2008, the HUI/Gold ratio traded near its all-time record low of 0.2 and subsequently climbed to 0.45 in September 2009. In mid-January 2010, the ratio began to plunge and now stands at 0.346. This is NOT indicative of a healthy market.
Next is the ratio of Gold to Silver (GSR). In a healthy market, Silver will tend to perform better than Gold and the resulting ratio will fall. The GSR spiked at about 90 in November 2008 and trended lower until September 2009, when it bottomed at 57.5. Recently, it has spiked higher and now sits at 66.6 (Is Satan watching?). Again, this is NOT indicative of a healthy market!
We can also review the ratio of the S & P 500 to the price of Gold. In a healthy market, we would expect the price of Gold to outperform stocks. The most recent peak in this ratio occurred in September 2008, at about 1.65, which FELL to 0.75 in March 2009. Subsequently, the ratio has climbed to 1.1 in August, 2009, but has trended mostly sideways since then. Its current reading is 0.99, but looks like it may break lower, also. At best, this ratio is NEUTRAL, but on the cusp of going NEGATIVE.
Finally, it makes sense to review the ratio of Gold to the Dollar index. In a healthy market, Gold will perform BETTER than that suggested by the direction of the Dollar. It is well-established that Gold and the Dollar behave inversely, however, movements in the Dollar can be dominant or merely a factor in the direction of Gold. From November 2008 through December 2009, Gold advanced MORE than the amount suggested by the decline in the Dollar, which is very bullish. Since then, the opposite has been true and threatens to deteriorate further. Therefore, at best, this ratio is still NEUTRAL but also on the cusp of going NEGATIVE.
Marko's Take? "Danger Will Robinson"! It is always best to avoid what professionals call "trying to catch a falling knife". Eventually, the Gold market will stabilize and provide a terrific opportunity, however, it appears very premature to load the boat.
I remain just as convinced, especially in light of the re-appointment of "Helicopter Ben", that Gold and Gold miners will be the go-to investment of 2010. So, only a little patience is needed. Nevertheless, why incur a loss, even if temporary, if it can be avoided?
If you think someone has belted me with a Gold Bar and I'm seeing stars, you know what to do: TAKE ME ON!
Marko's Take
.
This analyst thinks BOTH have value, however I'll focus only on technical analysis.
Often, the beginning spot for technical analysis is whether a market is "overbought" or "oversold". Either refers to an extreme level of virtually uninterrupted movement in a particular direction. For example, on a short-term basis, the precious metals market is clearly oversold. While that improves the odds of a reversal, it is nothing more than a necessary condition, but hardly sufficient. Markets can remain oversold or overbought for extended periods of time.
So, lets do some Marko's "Take-nichal" analysis and see where the chips fall.
The ratio of the "Gold Bugs Index" (HUI) to the price of Gold is a great place to begin. Historically, this ratio has traded between 0.4 and 0.6. In a healthy market, individual miners will outperform Gold itself and the ratio will tend to increase. In November 2008, the HUI/Gold ratio traded near its all-time record low of 0.2 and subsequently climbed to 0.45 in September 2009. In mid-January 2010, the ratio began to plunge and now stands at 0.346. This is NOT indicative of a healthy market.
Next is the ratio of Gold to Silver (GSR). In a healthy market, Silver will tend to perform better than Gold and the resulting ratio will fall. The GSR spiked at about 90 in November 2008 and trended lower until September 2009, when it bottomed at 57.5. Recently, it has spiked higher and now sits at 66.6 (Is Satan watching?). Again, this is NOT indicative of a healthy market!
We can also review the ratio of the S & P 500 to the price of Gold. In a healthy market, we would expect the price of Gold to outperform stocks. The most recent peak in this ratio occurred in September 2008, at about 1.65, which FELL to 0.75 in March 2009. Subsequently, the ratio has climbed to 1.1 in August, 2009, but has trended mostly sideways since then. Its current reading is 0.99, but looks like it may break lower, also. At best, this ratio is NEUTRAL, but on the cusp of going NEGATIVE.
Finally, it makes sense to review the ratio of Gold to the Dollar index. In a healthy market, Gold will perform BETTER than that suggested by the direction of the Dollar. It is well-established that Gold and the Dollar behave inversely, however, movements in the Dollar can be dominant or merely a factor in the direction of Gold. From November 2008 through December 2009, Gold advanced MORE than the amount suggested by the decline in the Dollar, which is very bullish. Since then, the opposite has been true and threatens to deteriorate further. Therefore, at best, this ratio is still NEUTRAL but also on the cusp of going NEGATIVE.
Marko's Take? "Danger Will Robinson"! It is always best to avoid what professionals call "trying to catch a falling knife". Eventually, the Gold market will stabilize and provide a terrific opportunity, however, it appears very premature to load the boat.
I remain just as convinced, especially in light of the re-appointment of "Helicopter Ben", that Gold and Gold miners will be the go-to investment of 2010. So, only a little patience is needed. Nevertheless, why incur a loss, even if temporary, if it can be avoided?
If you think someone has belted me with a Gold Bar and I'm seeing stars, you know what to do: TAKE ME ON!
Marko's Take
Sunday, January 31, 2010
Banking Failures Continue Unabated
On Friday another 6 banks were seized by the Federal Depository Insurance Corporation (FDIC). This brings the 2010 total to 15, following the 140 banks seized last year.
The largest bank seized Friday was Los Angeles-based First Regional Bank, with nearly $2.2 billion in assets and $1.9 billion in deposits. The expected loss to be incurred by the FDIC is $825 million.
The other banks seized included First National Bank of Georgia; Community Bank and Trust of Cornelia, Georgia; Florida Community Bank of Immokalee, Florida; Marshall Bank of Hallock, Minnesota; and American Marine Bank of Bainbridge Island, Washington.
In total, the combined assets of the six banks were $5.5 billion, while deposits totalled $4.9 billion.
The two Georgia banks bring that state's total to 27 since the beginning of 2008, placing it first among failed banks.
Each bank was taken over. First Citizens Bank & Trust of Raleigh, North Carolina, will assume the balance sheet of First Regional Bank; Community & Southern Bank, also based in Carrollton, Georgia, agreed to assume the deposits and assets of First National Bank of Georgia; SCBT, a national bank based in Orangeburg, South Carolina, will take-over the balance sheet of Community Bank and Trust; United Valley Bank, based in Cavalier, North Dakota, will absorb Marshall Bank; Miami-based Premier American Bank will assume the balance sheet of Florida Community Bank; and Columbia State Bank of Tacoma, Washington, will take American Marine Bank.
The banking crisis will continue to deteriorate, especially as the next dip of the depression takes hold. Marko's Take? It will take AT LEAST one and maybe more BIG Banks with it. Could you imagine the implication if, say, Bank of America or Citicorp failed?
In his State of the Union address, President Obama said he would initiate a $30 billion program to provide money to community banks at low rates, if they boost lending to small businesses.
Like what you see? Hate it? TAKE ME ON!
Marko's Take
The largest bank seized Friday was Los Angeles-based First Regional Bank, with nearly $2.2 billion in assets and $1.9 billion in deposits. The expected loss to be incurred by the FDIC is $825 million.
The other banks seized included First National Bank of Georgia; Community Bank and Trust of Cornelia, Georgia; Florida Community Bank of Immokalee, Florida; Marshall Bank of Hallock, Minnesota; and American Marine Bank of Bainbridge Island, Washington.
In total, the combined assets of the six banks were $5.5 billion, while deposits totalled $4.9 billion.
The two Georgia banks bring that state's total to 27 since the beginning of 2008, placing it first among failed banks.
Each bank was taken over. First Citizens Bank & Trust of Raleigh, North Carolina, will assume the balance sheet of First Regional Bank; Community & Southern Bank, also based in Carrollton, Georgia, agreed to assume the deposits and assets of First National Bank of Georgia; SCBT, a national bank based in Orangeburg, South Carolina, will take-over the balance sheet of Community Bank and Trust; United Valley Bank, based in Cavalier, North Dakota, will absorb Marshall Bank; Miami-based Premier American Bank will assume the balance sheet of Florida Community Bank; and Columbia State Bank of Tacoma, Washington, will take American Marine Bank.
The banking crisis will continue to deteriorate, especially as the next dip of the depression takes hold. Marko's Take? It will take AT LEAST one and maybe more BIG Banks with it. Could you imagine the implication if, say, Bank of America or Citicorp failed?
In his State of the Union address, President Obama said he would initiate a $30 billion program to provide money to community banks at low rates, if they boost lending to small businesses.
Like what you see? Hate it? TAKE ME ON!
Marko's Take
Saturday, January 30, 2010
GDP Grows By 5.7%: Has The Recovery Finally Taken Hold?
On Friday, the Bureau of Economic Analysis (BEA) gave its initial guesstimate of 4th quarter Gross Domestic Product (GDP) of 5.7% - a number much higher than most analysts had expected. At first, this number appears to be pretty solid and follows a downwardly revised 2.2% figure for the third quarter.
The first problem is that this preliminary estimate is nothing more than a guess and is subject to at least two more revisions before the figure becomes finalized. Of the 5.7% number reported, a full 3.4% was the result of inventory shrinkage, as companies pulled more goods off their shelves. In so doing, there was NO positive effect on employment, which continues to remain at unacceptably high levels.
While the fourth quarter figure is robust, GDP still remains nearly 2% BELOW the peak reached in early 2008.
The largest contributor to growth was consumer spending, which grew at 2% but was down from 2.8% in the prior quarter, when sales were boosted by the "cash for clunkers" program.
One sign from the GDP report of improved confidence at companies was an annualized 13.3% increase in spending on equipment and software—the biggest gain in nearly four years. In the past, rises in capital spending have tended to signal an increased willingness to hire.
Marko's Take? The fourth quarter will mark the end of the "recovery" and a more severe contraction will begin to gain steam. Without an increase in employment, no economic upturn of any duration can possibly be sustained. Unfortunately, the oncoming "second dip" is likely to be far WORSE than the first one.
Other ongoing economic problems include restrictions in credit availability and percolating inflation - which will undoubtedly begin to accelerate shortly.
Have a great weekend. Disagree? Agree? TAKE ME ON!
Marko's Take
The first problem is that this preliminary estimate is nothing more than a guess and is subject to at least two more revisions before the figure becomes finalized. Of the 5.7% number reported, a full 3.4% was the result of inventory shrinkage, as companies pulled more goods off their shelves. In so doing, there was NO positive effect on employment, which continues to remain at unacceptably high levels.
While the fourth quarter figure is robust, GDP still remains nearly 2% BELOW the peak reached in early 2008.
The largest contributor to growth was consumer spending, which grew at 2% but was down from 2.8% in the prior quarter, when sales were boosted by the "cash for clunkers" program.
One sign from the GDP report of improved confidence at companies was an annualized 13.3% increase in spending on equipment and software—the biggest gain in nearly four years. In the past, rises in capital spending have tended to signal an increased willingness to hire.
Marko's Take? The fourth quarter will mark the end of the "recovery" and a more severe contraction will begin to gain steam. Without an increase in employment, no economic upturn of any duration can possibly be sustained. Unfortunately, the oncoming "second dip" is likely to be far WORSE than the first one.
Other ongoing economic problems include restrictions in credit availability and percolating inflation - which will undoubtedly begin to accelerate shortly.
Have a great weekend. Disagree? Agree? TAKE ME ON!
Marko's Take
Friday, January 29, 2010
Markets Trading Strategy Update: What To Do Now
Nothing! For the moment, the case I laid out is playing out very close to the scenario I've forseen with a couple of exceptions.
Gold is trading this morning at BELOW $1080. My hunch is that it will visit the vicinity of $1000, so I continue to recommend that investors stay as light as possible in this sector. I believe we are a few weeks away before a decent buying zone, so, for the moment, stay put. In fact, once gold miners DO fully reflect a lower Gold price, there will come a time to back up the truck, load up on selected junior mining shares and watch the fireworks unfold.
The re-nomination of Ben Bernanke, in my opinion is all the evidence we need that 2010 will turn out to be one helluva great year for Gold investors. Stay patient.
Another certainty with "Helicopter Ben's " re-appointment, is that interest rates will remain low, stupidly low.
Yesterday, Congress approved an increase in the National Debt ceiling to more than $14 TRILLION! This means that a 1% increase in interest rates across the board will increase the budget deficit by $140 Billion per year! Yup, more low rates and ANOTHER Bubble!
But, this can't go into effect until Mr. Obama recovers from his injury sustained during his "State Of the Union Address" in which he patted himself on the back so many times that the rumor is he dislocated his shoulder and is unable to sign new legislation (http://markostake.blogspot.com/2010/01/obamas-state-of-onion-address-more-you.html).
As far as the overall market goes, I continue to maintain that it is in territory that is both rarified and subject to great risk. It reminds me of Wile E. Coyote, after having stepped off the cliff, hovering in mid-air before he realizes that it's a long way down.
What makes me so suspicious about the stock market is the fact that even decent earnings have been met with a yawn. This tells me that the "good news" is fully factored in. Currently, the market is merely digesting the sudden plunge of last week - a process I expect to be very short lived. I, therefore, re-iterate, the trading postures I recommended last week (http://markostake.blogspot.com/2010/01/preparing-for-coming-waterfall.html).
Fortunately, as the result of this week's lull, it isn't too late to get prepared, and even take advantage of the misery set to befall stock market investors.
I'll make today's blog a short one. Hope you have a great weekend!
Disagree? TAKE ME ON!
Marko's Take
Gold is trading this morning at BELOW $1080. My hunch is that it will visit the vicinity of $1000, so I continue to recommend that investors stay as light as possible in this sector. I believe we are a few weeks away before a decent buying zone, so, for the moment, stay put. In fact, once gold miners DO fully reflect a lower Gold price, there will come a time to back up the truck, load up on selected junior mining shares and watch the fireworks unfold.
The re-nomination of Ben Bernanke, in my opinion is all the evidence we need that 2010 will turn out to be one helluva great year for Gold investors. Stay patient.
Another certainty with "Helicopter Ben's " re-appointment, is that interest rates will remain low, stupidly low.
Yesterday, Congress approved an increase in the National Debt ceiling to more than $14 TRILLION! This means that a 1% increase in interest rates across the board will increase the budget deficit by $140 Billion per year! Yup, more low rates and ANOTHER Bubble!
But, this can't go into effect until Mr. Obama recovers from his injury sustained during his "State Of the Union Address" in which he patted himself on the back so many times that the rumor is he dislocated his shoulder and is unable to sign new legislation (http://markostake.blogspot.com/2010/01/obamas-state-of-onion-address-more-you.html).
As far as the overall market goes, I continue to maintain that it is in territory that is both rarified and subject to great risk. It reminds me of Wile E. Coyote, after having stepped off the cliff, hovering in mid-air before he realizes that it's a long way down.
What makes me so suspicious about the stock market is the fact that even decent earnings have been met with a yawn. This tells me that the "good news" is fully factored in. Currently, the market is merely digesting the sudden plunge of last week - a process I expect to be very short lived. I, therefore, re-iterate, the trading postures I recommended last week (http://markostake.blogspot.com/2010/01/preparing-for-coming-waterfall.html).
Fortunately, as the result of this week's lull, it isn't too late to get prepared, and even take advantage of the misery set to befall stock market investors.
I'll make today's blog a short one. Hope you have a great weekend!
Disagree? TAKE ME ON!
Marko's Take
Thursday, January 28, 2010
Obama's State Of The Onion Address: The More You Peel It, The More It Makes You Cry
President Obama must have an awefully sore shoulder this morning. He patted himself on the back so hard and so many times, it's a wonder he wasn't rushed to the hospital with a dislocated shoulder!
Here's a perfect example why "professional" politicians are so clueless. They BELIEVE that government creates jobs! Never actually having had jobs themselves, they don't really understand how the economy works. Yes, they write checks to someone who in turn employs someone. But for every check they write, someone ELSE has to pay for that check and becomes LESS able to employ someone. Hmm. The math. That stupid math that just keeps getting in the way.
It's amazing that a President can claim that he's "created" so many millions of jobs while at the same time ignoring the fact that real unemployment is at all time highs. Again, that silly math just keeps getting in the way. But DON'T pay attention to the man behind the curtain!
Fortunately, the President DID make a few decent suggestions such as encouraging nuclear power. He also recommended tax breaks for companies investing in capital equipment and raising payrolls. That's good stuff.
But is he serious about giving the already "Dead on Arrival" Obamacare another try? I guess he must really want to work with Republicans, because if that bill is pushed more, he will cost many Democrats their beloved jobs. And this from a man who claims to have created jobs!
In listening to the address, it amazes me how so many words can contain so little meaning. "We will do this". "We will do that". Ok, so why haven't you done this or that already? Oh that's right, you had to blame everything on your predecessor. As we know, the ridiculous stimulous bills, TARP, bailout of General Motors and Chrysler were all Bush's fault. So is the ongoing war in Afghanistan. So is the out-of-control budget deficit. All Bush's fault. Well before we get too hard on the President, let's rememeber he just got into office - a YEAR ago!
While campaigning, President Obama promised to "unify". HUH? How many bills are being voted strictly along party lines like Obamacare? In fact, President Obama is probably the most polarizing figure in history. And that's saying something after Bill and Hillary Clinton, George Bush and Newt Gingrich.
Seriously, if you want to waste a perfectly good hour and a half and yet learn nothing other than the art of obfuscation, listen to last night's address. Lot's of jobs created or saved, yet none destroyed. Lot's of money spent with all kinds of real results, like the grocery store check-out clerk in Pittsburgh who would have lost her job without the bailout funds. Never mind the real people who join the unemployment rolls week after week. Lot's of applause by other politicians whose sole purpose is to get face time on camera and keep their jobs.
Thankfully, the speech finally ended and we can go on to the "people's business" like spending more money we don't have - all while providing "8 million middle-class Americans with tax cuts"! Don't pay attention to the main behind the curtain!
I hope everyone writes Mr. Obama a "get well" card this morning. First, in sympathy to his dislocated shoulder and second to express sympathies for his delusions of grandeur. As he told us, the state of America is not only JUST FINE but he has more hope than ever. Didn't someone I know write a book about the AUDACITY of HOPE?
Another State of the Union Adress and another hour of empty rhetoric. While the President may not walk the walk, at least he talked the talk, and talked the talk, and talked the talk...
The truly sad aspect of the State of the Union address is that it gave the President an honest opportunity to acknowledge where things stand and propose SOLUTIONS - not to take credit for accomplishments that haven't actually been made.
Tomorrow, we'll go back to the markets and review our "Take" after a heavy news week.
Marko's Take
Here's a perfect example why "professional" politicians are so clueless. They BELIEVE that government creates jobs! Never actually having had jobs themselves, they don't really understand how the economy works. Yes, they write checks to someone who in turn employs someone. But for every check they write, someone ELSE has to pay for that check and becomes LESS able to employ someone. Hmm. The math. That stupid math that just keeps getting in the way.
It's amazing that a President can claim that he's "created" so many millions of jobs while at the same time ignoring the fact that real unemployment is at all time highs. Again, that silly math just keeps getting in the way. But DON'T pay attention to the man behind the curtain!
Fortunately, the President DID make a few decent suggestions such as encouraging nuclear power. He also recommended tax breaks for companies investing in capital equipment and raising payrolls. That's good stuff.
But is he serious about giving the already "Dead on Arrival" Obamacare another try? I guess he must really want to work with Republicans, because if that bill is pushed more, he will cost many Democrats their beloved jobs. And this from a man who claims to have created jobs!
In listening to the address, it amazes me how so many words can contain so little meaning. "We will do this". "We will do that". Ok, so why haven't you done this or that already? Oh that's right, you had to blame everything on your predecessor. As we know, the ridiculous stimulous bills, TARP, bailout of General Motors and Chrysler were all Bush's fault. So is the ongoing war in Afghanistan. So is the out-of-control budget deficit. All Bush's fault. Well before we get too hard on the President, let's rememeber he just got into office - a YEAR ago!
While campaigning, President Obama promised to "unify". HUH? How many bills are being voted strictly along party lines like Obamacare? In fact, President Obama is probably the most polarizing figure in history. And that's saying something after Bill and Hillary Clinton, George Bush and Newt Gingrich.
Seriously, if you want to waste a perfectly good hour and a half and yet learn nothing other than the art of obfuscation, listen to last night's address. Lot's of jobs created or saved, yet none destroyed. Lot's of money spent with all kinds of real results, like the grocery store check-out clerk in Pittsburgh who would have lost her job without the bailout funds. Never mind the real people who join the unemployment rolls week after week. Lot's of applause by other politicians whose sole purpose is to get face time on camera and keep their jobs.
Thankfully, the speech finally ended and we can go on to the "people's business" like spending more money we don't have - all while providing "8 million middle-class Americans with tax cuts"! Don't pay attention to the main behind the curtain!
I hope everyone writes Mr. Obama a "get well" card this morning. First, in sympathy to his dislocated shoulder and second to express sympathies for his delusions of grandeur. As he told us, the state of America is not only JUST FINE but he has more hope than ever. Didn't someone I know write a book about the AUDACITY of HOPE?
Another State of the Union Adress and another hour of empty rhetoric. While the President may not walk the walk, at least he talked the talk, and talked the talk, and talked the talk...
The truly sad aspect of the State of the Union address is that it gave the President an honest opportunity to acknowledge where things stand and propose SOLUTIONS - not to take credit for accomplishments that haven't actually been made.
Tomorrow, we'll go back to the markets and review our "Take" after a heavy news week.
Marko's Take
Wednesday, January 27, 2010
The State Of The Union
Ladies and Gentlemen:
It is with deep regret and sadness that I must report that the State Of The Union is ABYSMAL.
It is with great hope, audacious or not, and resolute determination that I lay out the agenda necessary to reverse our cascading prospects and return the United States to its rightful place in the world community.
It is with boldness that we face the future - which, while most dark now, is BRIGHTER than the past.
It is with perserverance that we will implement the changes needed, no matter how drastic, to assure that this nation DOES NOT pass the point of no return.
Towards that end, I am prepared to take the following steps:
1. Eliminate the ability of the Federal Reserve to influence either monetary policy or any freely traded market - either by actions it takes or through its proxies in the financial community. I would prefer an outright abolishment, but the privately held nature of the FED makes this impossible without infringing on legal property rights.
2 Eliminate the Internal Revenue Service and ask Congress to dramatically simplify the personal tax structure to a form of flat tax.
3. Eliminate the Department of Homeland Security and reverse the nation's plunge into "police state" status. All future intelligence should be carried out by the entities already in place such as the Federal Bureau of Investigation and the Central Intelligence Agency.
4. Revoke the Patriot Acts and restore civil liberties to Americans that were ILLEGALLY subject to barbaric acts under the misguided premise of our own protection.
5 Restore faith and confidence in the nation's currency by returning to the Gold Standard. And, if necessary, order an immediate audit of Ft. Knox and all other significant depositaries of Gold.
6. Order Congress to develop an emergency plan to achieve energy self reliance. I expect Congress to immediately remove all roadblocks to the development of nuclear energy, natural gas and alternative fuels such as solar and wind power. Furthermore, I will oppose any attempt to re-instate any form of windfall profits tax.
7. Seek the elimination of both the House and Senate Ethics Committees. Instead, ethics within the noble chambers of Congress, should be reviewed by a specially convened committee of promininet citizens with no current or past ties to Congress.
8. Pass legislation giving existing and future member of Congress NO SPECIAL TREATMENT. Beginning in 2010, all new members of either chamber will be automatically enrolled in the Social Security System and Medicare. If they choose to opt out, and prefer their own plans, these will not be provided at tax-payer expense. Furthermore, all members of Congress will be expected to make the very same payroll contributions that Americans are currently subject to. All EXISTING members will accrue NO ADDITIONAL benefits and will be expected to make the identical contributions to these programs that you, the American people have been forced to make your entire lives.
9. Hold ALL members of Congress accountable to the same standards that they would be subject to as employees of IBM, Proctor and Gamble, or any other respected corporation. Members of Congress are NOT ROYALTY. They work for you, the American People. Should any member of Congress commit an act or offense which would subject them to termination by a reputable firm, than they shall be as subject to termination, expulsion, or suspension as YOUR employees.
10. Begin the reversal of America's role, unwanted by the majority of the world community, as global policeman. I intend to address the U.N. shortly to further delineate the change of policy. However, I've always been partial to Teddy Roosevelt's credo of "speaking softly and carrying a big stick".
11. Finally, and perhaps most importantly, I will take whatever steps necessary to restore the rights granted to ALL Americans under the Constitution and its ammendments. If necessary, I will "stack the courts".
The Constitution is the greatest document written by an American and single most important document in our history, yet years of judicial interference have destroyed this great document. If necessary, I will call for a NEW Constitutional Convention, have the original document with its ammendments re-drawn and re-ratified.
If these steps are taken....and Ladies and Gentlemen, they WILL be taken, we will begin the healing process that this country so desperately needs. I ask from you just one thing... Patience and grass roots support. If your candidate for 2010 does not ascribe to the steps outlined above, I ask you to create a groundswell of support and make your voices heard at the ballot box.
We CAN return the country to a prosperous nation. We CAN return America to the land of opportunity.
We WILL return the country to a prosperous nation. We WILL return America to the land of opportunity.
Ladies and Gentlemen, I wish you goodnight and HOPE without AUDACITY.
Marko's Take
It is with deep regret and sadness that I must report that the State Of The Union is ABYSMAL.
It is with great hope, audacious or not, and resolute determination that I lay out the agenda necessary to reverse our cascading prospects and return the United States to its rightful place in the world community.
It is with boldness that we face the future - which, while most dark now, is BRIGHTER than the past.
It is with perserverance that we will implement the changes needed, no matter how drastic, to assure that this nation DOES NOT pass the point of no return.
Towards that end, I am prepared to take the following steps:
1. Eliminate the ability of the Federal Reserve to influence either monetary policy or any freely traded market - either by actions it takes or through its proxies in the financial community. I would prefer an outright abolishment, but the privately held nature of the FED makes this impossible without infringing on legal property rights.
2 Eliminate the Internal Revenue Service and ask Congress to dramatically simplify the personal tax structure to a form of flat tax.
3. Eliminate the Department of Homeland Security and reverse the nation's plunge into "police state" status. All future intelligence should be carried out by the entities already in place such as the Federal Bureau of Investigation and the Central Intelligence Agency.
4. Revoke the Patriot Acts and restore civil liberties to Americans that were ILLEGALLY subject to barbaric acts under the misguided premise of our own protection.
5 Restore faith and confidence in the nation's currency by returning to the Gold Standard. And, if necessary, order an immediate audit of Ft. Knox and all other significant depositaries of Gold.
6. Order Congress to develop an emergency plan to achieve energy self reliance. I expect Congress to immediately remove all roadblocks to the development of nuclear energy, natural gas and alternative fuels such as solar and wind power. Furthermore, I will oppose any attempt to re-instate any form of windfall profits tax.
7. Seek the elimination of both the House and Senate Ethics Committees. Instead, ethics within the noble chambers of Congress, should be reviewed by a specially convened committee of promininet citizens with no current or past ties to Congress.
8. Pass legislation giving existing and future member of Congress NO SPECIAL TREATMENT. Beginning in 2010, all new members of either chamber will be automatically enrolled in the Social Security System and Medicare. If they choose to opt out, and prefer their own plans, these will not be provided at tax-payer expense. Furthermore, all members of Congress will be expected to make the very same payroll contributions that Americans are currently subject to. All EXISTING members will accrue NO ADDITIONAL benefits and will be expected to make the identical contributions to these programs that you, the American people have been forced to make your entire lives.
9. Hold ALL members of Congress accountable to the same standards that they would be subject to as employees of IBM, Proctor and Gamble, or any other respected corporation. Members of Congress are NOT ROYALTY. They work for you, the American People. Should any member of Congress commit an act or offense which would subject them to termination by a reputable firm, than they shall be as subject to termination, expulsion, or suspension as YOUR employees.
10. Begin the reversal of America's role, unwanted by the majority of the world community, as global policeman. I intend to address the U.N. shortly to further delineate the change of policy. However, I've always been partial to Teddy Roosevelt's credo of "speaking softly and carrying a big stick".
11. Finally, and perhaps most importantly, I will take whatever steps necessary to restore the rights granted to ALL Americans under the Constitution and its ammendments. If necessary, I will "stack the courts".
The Constitution is the greatest document written by an American and single most important document in our history, yet years of judicial interference have destroyed this great document. If necessary, I will call for a NEW Constitutional Convention, have the original document with its ammendments re-drawn and re-ratified.
If these steps are taken....and Ladies and Gentlemen, they WILL be taken, we will begin the healing process that this country so desperately needs. I ask from you just one thing... Patience and grass roots support. If your candidate for 2010 does not ascribe to the steps outlined above, I ask you to create a groundswell of support and make your voices heard at the ballot box.
We CAN return the country to a prosperous nation. We CAN return America to the land of opportunity.
We WILL return the country to a prosperous nation. We WILL return America to the land of opportunity.
Ladies and Gentlemen, I wish you goodnight and HOPE without AUDACITY.
Marko's Take
Subscribe to:
Posts (Atom)