Obama Information Czar Cass Sunstein Confronted on Cognitive Infiltration of Conspiracy Groups

Video:  Obama Information (Regulatory) Czar Cass Sunstein Confronted on Cognitive Infiltration of Conspiracy Groups

In a rare public appearance, The Obama Administration's Information Czar Cass Sunstein gave a lecture at the NYU Law School in NYC yesterday, prompting Luke Rudkowski of WeAreChange to attend. Watch as Luke confronts Sunstein multiple times on an academic paper he co-authored back in 2008 entitled "Conspiracy Theories" in which he called for cognitive infiltration of conspiracy groups by the government.

Brave kid to ask Sunstein straight out and repeatedly!!

Sunstein was like a frightened criminal - caught in the act.  He should just slither back to wherever he came from.

Pathological Politics – Predatory Partners and Persecuting Patriots

By: Terresa Monroe-Hamilton - the NoisyRoom

In the notorious tradition of Nixon’s Enemies List, Obama is now openly persecuting patriots at every opportunity. He tries to shame them, taint them, marginalize them and if all that doesn’t work, he sends goons after them and either imprisons them or threatens them with imprisonment. He’s using every agency at his disposal, with a special emphasis on the EPA, FDA, IRS, SEC, ATF and Fish and Wildlife authorities. And he has hired a whole governmental ‘army’ to enforce his dictates and go after his enemies. Welcome to the American Stasi.

We have watched how Obama smears those who would dare to donate to Mitt Romney’s campaign. That should make us want to donate even more, not back down and cower in fear. We all know that Obama is determined to be reelected legally or illegally – he doesn’t care. He just wants to hold on to his power, so he can finish what he started – destroying America with his pathological politics of corruption, greed and evil. If the elections don’t suffice, he’ll invent an emergency to ensure his death grip on the throat of America.

Look at how Gibson Guitars has been treated. They have been raided multiple times, but they can’t defend themselves because in the last three years, this administration won’t say what crime they are charging them with. They are destroying a good and honest company that creates jobs and does business production here in America. Their crime – successful capitalism. Something Obama will not tolerate.

Then there are farmers. The EPA is clamping down on the Amish and others who don’t follow every regulation in an effort to put them out of business and it is working. I hear the stealthy, sly footsteps of Cass Sunstein. Soon, very soon, the government will control all our farmland and food. Then if you step out of line, they’ll just starve you to death. Farming on your own property will be illegal. It’s coming – bet on it. Right now they are seizing farmer’s bank accounts. The FDA is now using the terrorist based “Bank Secrecy Act” as justification to invade, investigate and even confiscate the bank accounts of Americans in the agricultural business.

From The Examiner:

The Bank Secrecy Act that came out of the events of 9/11, which has been expanded during the decade long war on terror, is now being used to criminally attack farmers who choose not to use banks as their sole or primary source for monetary transactions. This is especially relevant after the credit crisis of 2008, where many American[s] began withdrawing money from banks after bank solvency came into question.

This banking law, which allows for the unwarranted confiscation and seizure of funds based solely on perceived impropriety, is one of many new policies created under the Bush and Obama administrations to control the public, and the flow of money in the United States. Beginning in 2013, new capital controls are set to be implemented which will make it extremely difficult to move dollars in and out of the country, and more recently, the Obama administration diverted funds from other departments to hire thousands of IRS agents for the new healthcare system that will also commence in 2013.

Ted Nugent on Regulations

Glenn Beck – We Are All Criminals Now

Now, we turn to Ted Nugent, who has been all over the news as of late. Evidently Obama has had Ted Nugent in his sights for at least two years and probably much longer. Nugent was charged with breaking a law – of which the judge hadn’t even heard – while hunting black bear in Alaska. But you can bet the Feds did and they brought charges hoping to snare Nugent. But that didn’t work out as they intended – Nugent accepted that he ‘unknowingly’ broke the law and the sentence carried the same weight as jaywalking, a misdemeanor offense. They tried to snag him in California and accused him of baiting a deer. A total falsehood and you’d have to be a moron to do it since he was airing the episode on TV. They stormed three of his friends’ homes and then searched a room not covered by the search warrant. They found a set of brass knuckles and told Nugent’s friend they would drop the felony charge if he would help them ‘get’ Nugent. Fortunately Ted has very good friends. But they took all kinds of stuff from their homes.

Now, they have made Nugent slaughter his pigs in Michigan – labeling them as feral. Since when is livestock you keep in a pen ‘feral?’ Obviously they either don’t know or more likely, don’t care what the definition is. They were the wrong color and thus deemed ‘feral’ and Nugent was forced to slaughter them. It’s tempting to draw conclusions about motives related to winning points with the Dearbornistan locals, given that the “reason” for slaughtering the pigs is clearly a pretext; one wonders to oneself, could squeezing pig farmers be calibrated to curry favor with a Muslim community?

He’s also been persecuted for his Oryx in Texas as well. They are harassing him about raising these animals when he brought them back from the brink of extinction. A three legged little one was born and he is not being allowed to put it out of its misery. It will die a slow and painful death. How is that compassion? If he puts it down, it’s a felony.

Someone high up would not allow Nugent to attend a SEAL’s funeral when it was the hero’s final wish. His concerts have been cancelled in several cases as well. The Feds interviewed him over comments he made at an NRA conference recently. He was cleared, but I guess free speech is no longer very ‘free’ in this country. Nugent is a good man – a patriotic man. That’s a lot more than you can say about Obama and his thugs.

This isn’t just about Ted Nugent folks – it’s about each and every one of us. They are coming after the bloggers, the patriots, small businesses, you name it. There is no way we can avoid violating one of these bogus laws. It’s only a matter of time. Obama doesn’t care about the Constitution – it means nothing to him. They are coming and we had better stand together, or we will all hang separately as patriots. The way Nugent is being treated is absolutely disgraceful.

From Kim Strassel at the Wall Street Journal:

He’s targeted insurers, oil firms and Wall Street—letting it be known that those who oppose his policies might face political or legislative retribution. He lectured the Supreme Court for giving companies more free speech and (falsely) accused the Chamber of Commerce of using foreign money to bankroll U.S. elections. The White House even ginned up an executive order (yet to be released) to require companies to list political donations as a condition of bidding for government contracts. Companies could bid but lose out for donating to Republicans. Or they could quit donating to the GOP—Mr. Obama’s real aim.

We all know of Obama’s Enemies List, but do you know who his predatory partners are? Along with Communists and radicals, he has a special fondness for the Muslim Brotherhood. In fact, he has opened the front door of the White House and has told them to make themselves at home. These are the evil asshats who support and fund Hamas. These are Islamic terrorists of the ilk that carried out 9-11 and Obama embraces them while persecuting American patriots.

Rumors of War III

Obama is not even subtle about it. They have removed all references to radical Islam in federal publications. They allow Shariah Law to be carried out on American soil. Obama’s best friend is the Prime Minister of Turkey who gives him advice on his daughters. You see, it doesn’t matter whether Obama is a Muslim or not, his father was. Obama has Islamic street cred. It even gives him a basis for using Taqiyya against Americans. Obama is actively and aggressively promoting Islam around the planet and especially here at home. The only thing that matches his love of Islam, is his hatred of Israel.

If one is known by who his friends and enemies are, then Obama’s predatory partners and the patriots he persecutes are screaming volumes at us. It’s clear that his campaign of pathological politics and communism is on a set of tracks that leads somewhere we dare not go.

Jobs? Obama? Impeach Him!

By Alan Caruba

America is dying a death by a thousand cuts in the form of hidden and explicit taxation, the insane generation of new regulations, and the resulting massive unemployment. Obama just selected a new economic advisor who is known to favor a value-added tax that would drive up the cost of everything you purchase.

It’s not like solutions to our economic disaster are not known. They are and the Obama administration will not implement them. They do know what they are doing and it is deliberate.

On September 7, in the guise of a jobs speech Obama will offer massive new spending programs. The money for them would have to be borrowed. The interest on that borrowing would sink the nation further into debt.

In the August 31 edition of The Wall Street Journal, an editorial revealed that, when Speaker John Boehner asked the White House to disclose any “major” federal rules in the works with estimated economic costs of $1 billion or more, he was informed that the Obama regulatory agenda for 2011 contains 219 proposed such new regulatory initiatives.

In 2010 the administration had 191 proposed regulatory initiatives in the works which combined with those proposed in 2011 add up to a total of 410. By contrast the first two years of the Bush administration rulemaking accounted for only 103 new, major regulations.

Of seven pending major rules estimated to cost more than $1 billion one includes the Environmental Protection Agency’s ozone regulations, estimated to cost $90 billion if Congress does not step in and put a stop to it. The EPA is trying to eliminate one tenth of all the utilities that provide the electricity the nation needs to function.
The Competitive Enterprise Institute’s experts on regulation have concluded that the present cost of federal regulation to businesses that must comply with them is $1.75 trillion annually.

If you visit USA Action News.com, you will find an issues section devoted to the Cloward-Piven strategy named after two socialist academics who spelled out just what it would take to economically destroy the nation. It is being implemented by the Obama administration.

Posted by Alan Caruba on August 31, 2011 at 3:21pm

Posted at TPN

Team Obama Regulates Goat Herders' Workplaces… Morons?

What is the term, stupid is as stupid gets, or is it… No matter, stupid is stupid and that is U.S. government.

Nanny State government at its worst.

I can't believe ANYONE would be stupid enough to create this kind of mess!

Team Obama Regulates Goat Herders' Workplaces

by Audrey Hudson - 08/24/2011

The Obama administration is setting new workplace regulations to assist foreign workers who fill goat herding positions in the U.S. including employee-paid cell phones and comfy beds.

These new special procedures issued by the Labor Department must be followed by employers who want to hire temporary agricultural foreign workers to perform sheep herding or goat herding activities. It describes strict rules for sleeping quarters, lighting, food storage, bathing, laundry, cooking and new rules for the counters where food is prepared.

“A separate sleeping unit shall be provided for each person, except in a family arrangement,” says the rules signed by Jane Oates, assistant secretary for employment and training administration at the Labor Department.

“Such a unit shall include a comfortable bed, cot or bunk, with a clean mattress,” the rules state.

Diane Katz, a research fellow in regulatory policy at The Heritage Foundation, unearthed the policy in the "Federal Register​," the massive daily journal of proposed regulations that Washington bureaucrats publish every day.

Under the Obama Administration, the nanny state has imposed 75 new major regulations with annual costs of $38 billion.
“This captures what is wrong with government,” Katz said. “I could not have made this up.”

With unemployment holding steady at 9% and government regulations adding more burden to small businesses, such as those run by ranching families, Katz said, bureaucrats aren’t helping.

“Instead of remedying the problem, the regulations make it that much harder,” Katz insisted. “We may need a whole set of regulations just to define what a comfortable bed is. I imagine it’s not straw."

The new lighting standards say that in areas where it is not feasible to provide electrical service such as tents or mobile trailers, lanterns must be provided. “Kerosene wick lights meet the definition of lantern,” the regulations say.

“When workers or their families are permitted or required to cook in their individual unit, a space shall be provided with adequate lighting and ventilation.”

“Wall surfaces next to all food preparation and cooking areas shall be of nonabsorbent, easy-to-clean material. Wall surfaces next to cooking areas shall be of fire-resistant material,” the regulations say.

“It makes you wonder,” Katz said, “how they ever did this before the government got involved?”

“Who knew we needed all of this federal help for herding goats?” Katz quipped.

---

Audrey Hudson, an award-winning investigative journalist, is a Congressional Correspondent for HUMAN EVENTS. A native of Kentucky, Mrs. Hudson has worked inside the Beltway for nearly two decades -- on Capitol Hill as a Senate and House spokeswoman, and most recently at The Washington Times covering Congress, Homeland Security, and the Supreme Court.

But Wait… Could this be related?:

Well over a year ago I sent Neil Cavuto at Fox News/Fox Business an e-mail asking him and his staff to do a background check on all our United States Representatives and Senators to see how many had a background or at least an education in economics/business. A couple of minutes ago I saw the following report on the Fox News website. As I highly suspected, very few would even know how to operate a curb side lemonade stand. This report was late in coming but maybe Neil remembered my e-mail.

Study: 80 Percent of Lawmakers Lack Academic Background in Business, Economics

Published August 25, 2011

AP The Capitol Dome is seen on Capitol Hill in Washington July 28.

Congress might want to find some consultants as it tries anew to tackle the country's deep deficits. A report from the Employment Policies Institute finds that only one in five members of Congress has an academic background in business or economics.

The organization looked at lawmakers' college degrees and found that most of them -- 55.5 percent -- majored in either a government-related field or "humanities." Just over 8 percent majored in economics, while almost 14 percent studied business or accounting.

The numbers raise questions about their ability to tackle tough economic challenges when they return from break early next month. The Obama administration, as well as lawmakers touring their districts, are clamoring for a new approach to the jobs crisis. Meanwhile, a congressional "supercommittee" is set to get to work finding $1.5 trillion in deficit reduction over the next decade.

But that supercommittee may have the same education deficit as the rest of Congress. Just four of the 12 members on that committee have an academic background in economics or finance -- Rep. Jeb Hensarling, R-Texas; Rep. Dave Camp, R-Mich.; Rep. Xavier Becerra, D-Calif.; and Sen. Max Baucus, D-Mont.

Others earned professional experience in the field. Sen. Pat Toomey, R-Pa., was an investment banker. Sen. Rob Portman, R-Ohio, was a lawyer who ran his own practice before being appointed U.S. trade representative and later becoming head of the White House budget office under the George W. Bush administration.

Aside from Portman, six others were attorneys in their private lives -- Sen. Jon Kyl, R-Ariz.; Sen. John Kerry, D-Mass. (although his real occupation is marrying rich liberal progressive women whose money he can use); Rep. Chris Van Hollen, D-Md.; Baucus; Becerra; and Camp.

Two other committee members, Rep. James Clyburn, D-S.C., and Sen. Patty Murray, D-Wash., were educators. Rep. Fred Upton, R-Mich., was a congressional aide.

EPI's Defeat the Debt project released the study on lawmakers' academic background.

"This research suggests that our elected representatives may want to dust off their Econ 101 textbook (if they have one) before trying to tackle the weighty questions about the impact of taxes, spending and debt on our economy and the labor market," the group wrote.

So we have a bunch of ignorant uneducated imbeciles who have been on the public dole all their lives and who probably can’t even balance their own check books or control their family finances while doing a horrible job running our country. And we have an imbecile in chief who also doesn’t have a clue about running our country. Absolutely Pathetic!!! No wonder we are where we are now. IT IS TIME FOR CHANGE and I’m not talking about what Obama envisions. WB

STUDY: Congress Filled with Morons

Posted on Tuesday, July 26th, 2011 - By Frank Lake

CAMBRIDGE, MA – A groundbreaking study has determined that 83% of the members of Congress are certified morons!

The Kennedy School of Government did a longitudinal study over the last 30 years that looked at the average IQ of members of Congress – the Senate & House of Representatives.

The study found that, despite the many advanced degrees from prestigious universities, and despite the fact that many in Congress are millionaires, the average IQ of U.S. Representatives is 71. The average IQ of U.S. Senators, is surprisingly, even lower at 68. (The fact that they are millionaires or children of millionaires and elites, to be more accurate, has given them access to Ivy League schools and degrees that really didn’t deserve or earn and the fact that they know the right people and can be manipulated makes them the perfects candidates for people who want to control and change America… the world!)

“We spent one hour a month with each member of Congress over the last thirty years. We gave them a number of IQ tests – including math problems, verbal problems and analytic reasoning problems. The results were consistent year-in-year out. Members of Congress are morons,” said Professor Thomas Turley of Harvard.

So what is a moron? A moron is a person whose IQ is less than 70 on a consistent basis.

The lowest IQs typically were the leaders of the two-parties.

In response to the study, Senator Harry Reid said, “Is that bacon?”

John Boehner said, “We will not back down and we will not give an inch and we will kill the cows when they come home. Hand me a tissue.”

Nancy Pelosi said that she would have to read the study before she could make a comment on it. But, before reading it, she said that she thought it was “stupid.” People who do studies at Harvard are stupid. It’s just stupid to do studies about morons. Who funded this?”

Nancy Pelosi approved the funding of The Moron Study back in 2009.

83% is a large number of morons, but is it the same percentage in the general population?

“Only 7% of normal citizens are certified morons,” said John Murtaugh, the leader of the Harvard Study. “Except in Hollywood. The rate there is close to 49%, but that’s still nowhere near the level we find in Congress.”

So, why do Americans keep electing morons? And why do we keep following them?

“Morons have one common strength: the ability to dupe intelligent people.”

Many are suggesting that potential candidates be given an IQ test BEFORE they are allowed to run for Congress… or any other elected office!!

But that idea was shot down by Congress.

Morons! - Any questions??

Debt-End Tour

An In-depth Analysis of Obama’s Economic “Debt-End Tour” 2011

Our “Comrade Commander in Chief” Obama on his Economic Rural Tour, consistently calls for the American people to contact their government representatives “because the government has not broken down, but our political system has.” He believes that our political system is the responsible culprit for all our economic problems.

Could it be that Big Government is what is wrong with our economic problem and NOT our political system?  Having a republic that values the United States Constitution should not be a problem...  The big problem is that our president, his advisors, and his close associates refuse to respect and listen to our Constitutional political process.

Obama has been endorsed by the Communist Party ¹.  The goal of the Communist Party is the enslavement of all people for the “common good”.  The end game for the Communists is to change the United States into a socialist nation much like Cuba, Venezuela, and China. 

During one of the closing remarks given after a break out session, Secretary of Agriculture Tom Vilsack, former Governor of Iowa, introduced the crowd to Obama.

Vilsak said that the president is someone in whom he has great trust.  Vilsack noted that a good leader is someone in whom people have confidence.  Obama, likewise, praised Vilsack and it wasn’t too long before Obama made this statement:  “We need to fix our politics.”

How can he, as a president of a free country and how can citizens of a free country, blame the very process that guards our freedoms?  The political process, albeit somewhat flawed, is the only process in the world that provides government representation “of the people, by the people and for the people”.  Indeed, Obama said many times throughout his tour that there was not anyone in any other country who would not want to come to America.

There is a bill---The Start Up Visa Bill ³, authored by Senators John Kerry (D-MA) and Richard Lugar (R-IN), which will boost even more foreigners to our shores. “It will allow an immigrant entrepreneur to receive a two year visa if he or she can show that a qualified U.S. investor is willing to invest in the immigrant’s startup venture.” 

How would Obama change our political system?  He already has changed the climate of our political system by….cozying up to the SEIU and other unions that encourage thuggery and corruption ⁴.  For example, Obama is linked to the corrupt organization of Acorn and his support for the New Black Panther Party is demonstrated by advising our Department of Justice Attorney General Eric Holder, to not prosecute the blatant threats made at voting booths in Pennsylvania.

In June, the President signed an Executive Order establishing the White House Rural Council. ⁵   The Council is tasked with "focusing on increasing rural access to capital, spurring agricultural innovation, expanding digital and physical infrastructure in rural areas, and creating economic opportunities through conservation and outdoor recreation."  It was these areas that Obama focused, steering away from disclosing anything upsetting to rural Americans.

Traveling in two buses, one black and the other red, valued at $1.1 million each, purchased by the Secret Service from Provost, a Canadian manufacturer. Obama finally re-connected with his 2007 farm goals that were used as part of his platform while running for the Senate seat in Iowa. ⁶

In 2009, the current administration kicked off the original Rural Tour.⁷   Interest in rural America has now been expanded to include Obama's Executive Order 13575 ⁸ and the White House Rural Council.

The two buses used in this year's tour have drawn much interest and ridicule.  When one considers the following information, it is easy to understand why eyebrows have been raised. Certain political parties or positions ⁹ have become associated with different colors at different times. One writer called the red and black buses "Gog and Magog". ¹⁰

Town Hall Atkinson, Illinois 12:45 PM

The Wyffels Company, which manufactures genetically modified (GMO) seeds for Monsanto was the host.

In a warehouse owned by Wyffels Hybrids, amid genetically modified (GMO) corn seed sacks piled high to the ceiling, people were fanning themselves anxiously awaiting the president.  Obama, opening with the following statement said, “When I travel I am absolutely confident and the reason I am confident is because of the American people.  There is not a country on earth that would change places with us.” 

He has that right!  So why, day after day, after day…it’s been three days in row, do we hear him say, “There is something wrong with our politics.”

Obama gave incorrect statistics:

Obama, in defense of his administration said, “Two million private sector jobs have been created." But according to Steve McCann's article in the American Thinker: ¹¹

”The reality is 2.5 million jobs in the private sector were eliminated since Obama assumed office.

It is painfully obvious, even to those without access to the BLS reports, that average Americans instinctively know by their own experiences that there has been no job creation in the private sector since Obama became President; yet he so casually and easily can throw out a lie to further his ambitions.”

Obama “moved on”, as in www.moveon.org, explaining his plan for economic recovery.

Obama’s Plan:

1. Pushing for a payroll tax cut, Obama said that it was something we could do right now, but that “politics is holding us back”. 

Everyone but Obama knows that Social Security is in trouble, yet he decreases our payroll tax so that LESS is going into the Social Security fund?  This is just one more reason that Obama is the wrong man for the job; nearly everything he does is destructive to the people of this country.  For the last year, Obama's tax cuts have meant that an employee is contributing only 4.2% of their wages to the Social Security fund (FICA).  Whereas before, the standard contribution was 6.2% for both the employee and the employer.  The employer still contributes 6.2%.  Since the Social Security fund is already in trouble, it doesn't make any sense to cut the fund even more.  In essence, what is being done is that Big Government is "borrowing from the Social Security fund".  Borrowing money from the SS fund doesn't affect our credit rating with Standard and Poor's, because it is like borrowing from ourselves.  THIS MONEY DOES NOT HAVE TO BE PAID BACK INTO THE SS FUND. 

In addition, the average tax cut might give each family $1,000.  Divided by 12 months, is only $100 per month.  Most families would use that money to pay down on their credit card debts."  But Obama, in essence, is borrowing that $100 from the pockets of future Social Security funds, thus endangering an already nearly insolvent ¹² government program.

Embed this video ¹³

ELABORATE WELFARE HOUSING PROJECT

http://www.youtube.com/watch?v=fu6ok5ykyuQ&feature=share

2. Building of future infrastructure for roads, bridges, and schools, would get construction workers and contractors back to work. “Since interest rates are low, we could finance these investments.”

With whose money?  China has said, “Enough, no more lending to the U.S.!”  ¹⁴

3. Passing trade bills that encourage more U.S. goods sold to foreign

countries.

How has NAFTA worked out for us? The North Atlantic Free Trade Agreement was pushed and shoved down the throats of Canadian, United States and Mexican citizens under the guise of creating “wealth and prosperity”, when in reality it built plants in foreign countries and closed manufacturing plants across Canada and the United States resulting in the loss of millions of jobs. 

Another result of NAFTA is the continued dissolving of our sovereign boundaries.  In the following video, a Canadian citizen, in down to earth terms, explains the horror that NAFTA has inflicted on the people of Canada and the United States.  "NAFTA A Dirty Lie"¹⁵

3. Providing money to finance entrepreneurs helping them to market their ideas and make money, rounded out his proposal.  Again, he added, “The only thing holding us back is our politics”.

Being curious, and looking into this “bill” that he mentioned in passing aimed at helping entrepreneurs, I discovered:

S.565 -- StartUp Visa Act of 2011 ¹⁶ (Introduced in Senate - IS)

To establish an employment-based immigrant visa for alien entrepreneurs who have received significant capital from investors to establish a business in the United States:

You’re kidding me, right?  Help immigrant entrepreneurs and not U.S. citizen entrepreneurs?  I am sure that the crowd would have reacted very differently had they known that their tax money was yet again destined to help foreigners instead of current United States citizens. 

He explained the reason for the S & P downgrade was because the political system couldn’t seem to make a good decision.  Again, blaming our political process rather than the problem of Big Government run-away deficit spending!

5. Continuing student loan programs

6. Investing in basic agricultural research

He rounded out his opening remarks by saying, “We need to have shared sacrifice and balance the budget in a balanced way.”  He referred again to Warren Buffet remarking that millionaires were coddled under our present tax code.  If money from all the millionaires and billionaires were taken and applied to our deficit, it would only cover a small percent of our deficit.  Obama's theory that the rich don't pay their "fair share" is incorrect!  Look for yourself at the U.S. Federal Tax Code found on page 98 of the official document.  The chart <Link> shows that the rich pay 35% of their income toward federal taxes.

Here is an excellent video from Bill Whittle ¹⁷ that spells out just how much money it will take to keep the country going each day even after taking away all the money from the millionaires and billionaires.  And then what are we going to use for capital?

Before taking questions, he said: “I want to enlist you to send a message to Congress to stop engaging in rhetoric rather than getting things done and stop worrying about the next election.”…

Who’s worrying about the next election?  To me, this remark resembles the old saying where the pot is calling the kettle black.  His entire three-day trip has cost the taxpayer millions of dollars. This tour has been labeled as a 2012 election campaign trip for Obama. Even Jon Stewart is calling Obama's bus tour a campaign event.  Watch the video for some laughs! ¹⁸

Question and Answer Time

The next 30 minutes was devoted to answering questions that were a little more challenging than the previous days.  The first questioner was a corn and soybean farmer who said:  “Mother Nature has really challenged us lately …please do not challenge us with new rules and regulations.”  Obama reassured him, “Don’t always believe what you hear.  The folks in Washington write some of these articles and the lobbyists will send out information saying, ‘Look what’s going down the pike!  Just call the USDA directly”

A reporter from "Politico" attempted to call the USDA as Obama had suggested.  The reporter attempted for two days to get an answer for a question.  After being on the phone continuously for those two days, the reporter received a generic email from the USDA.  The email did not answer the specific question. ¹⁹

If the USDA and the Department of Agriculture had not received over 1700 calls and contacts from interested parties, farmers would have been required by the Secretary of the Department of Transportation, Ray LaHood appointed by Obama, to qualify for a Commercial Drivers License (CDL).  Yes, the same licenses that are required by drivers of 18-wheelers! 

Second Question

Remarking about the slowing of the economy after the S & P downgrade, a local real estate owner asked what was Obama’s plan for “getting the country out from where we are”.  Obama said that the banking industry was at fault for getting us into the housing bubble and that banks need to have slightly tighter lending regulations than they have now.

Obama is advocating MORE banking regulations. The Federal Government is actually paying banks now to NOT give housing loans. ²⁰

“The Federal Reserve is quietly continuing with one of the many outrageous bank-bailout programs it initiated during the financial crisis--the one in which it pays big banks interest on their excess reserves.” 

Third Question 

Concerned with Simpson-Bowles tax hike plan and the Super Committee, a man who works at the local arsenal, asked how the president would balance the budget.

Obama responded that we should have a “balanced approach” that would include cutting defense spending, modifications to Social Security and Medicare, in addition to raising added revenues. 

(Hope the arsenal plant where the questioner works is not shut down because of those proposed “defense cuts”.) 

Obama said that the deficit was caused by giving tax cuts in 2000, getting involved in two wars that we didn’t have the money to pay for and giving a prescription drug program to seniors.

Note, he made no mention that the skyrocketing deficit was caused by his failed $2.5 trillion Stimulus Bill.  Looking at the chart published by the Congressional Budget Office, the true 10-year cost of the stimulus bill is $2.527 trillion in spending with another $744 billion cost in debt servicing. Total bill for the Generational Theft Act: $3.27 trillion. ²¹ At this time, there are rumors of a Stimulus 2. 

Fourth Question

When asked, “What can Congress do to help provide more jobs?”, Obama replied,  “Things we can do WITHOUT Congress include my creation of a Jobs Council.   The Department of Defense has started a new program.  It is like a reverse boot camp, which trains returning veterans for jobs.  We are looking at changing certifications and regulations. We are studying rules to see if they are cost effective.”

According to an article from ABC News, Obama To Announce New Steps To Get Veterans Back To Work ²²

The president will advocate for a “Returning Heroes Tax Credit,” which would offer participating companies a $2,400 tax credit for hiring short-term unemployed veterans. The White House would also offer additional incentives of $4,800 to companies hiring service members who have faced unemployment for six months or longer.

“This is not a tax credit that we believe necessarily has to be continued indefinitely, but we believe that with the significant number of veterans entering the workforce at a time of significant long-term unemployment as our nation is recovering from the worst recession since the Great Depression, that this is both appropriate and fair and something the American people will strongly support,” the official said. 

However, according to Army Times ²³, injured troops are in limbo for discharge because the new bureaucratic delays hinder evaluations.

“A typical service member’s case is handled off between the Defense Department and the VA nine times during the new integrated process.  It typically starts about a year after a service member is injured, after it’s clear that remaining on duty isn’t possible, with a goal of 295 days to complete after that initial year.  But the average completion time after the initial year is more than 400 days, leaving the service member in limbo for more than two years.” 

If Obama’s new jobs program for vets is handled anywhere near these present steps for certification, our hearts should really be touched by the service that they have given to our country.

Fifth Question

A young man, noting that some Republicans have signed a pledge against no new revenue, asked what Obama’s feelings were about pledge signing. Obama submitted that we could raise taxes without seeing harm to the middle class.  He also offered a suggestion of closing up tax loopholes and again offered up Warren Buffet’s quote about the rich people being “coddled” with the capital gains tax.

Obama’s main error in his statement ²⁴ was, “The richer you are the lower your tax rate.”  This statement has previously been proven wrong because the tax chart on page 98 of the 1040 Tax Code shows incomes above $373,650.00 are taxed at 35%; whereas, nearly one-half of our population pays 0% tax.    Tax credits are actually beneficial because they place more money into the system and stimulate the economy.

Obama said, “Every day I take an oath; my pledge is that every day I am looking out for the American people.”

I guess he is NOT using Wikipedia’s definition of American people:  “The people of the United States, U.S. Americans, or simply Americans or American people, are citizens of the United States.”, because he has made sure billions of our tax dollars have been given to foreign countries ²⁵ and even terrorists ²⁶.  A few days ago, it was reported that our government mistakenly gave $360 million to the Taliban and other terrorist organizations. 

Our government sends hundreds of billions of taxpayer dollars to other countries every year and we’ve been happy to help when we’re doing well at home. Do you consider these spending items to be “essential?”

Sixth Question

“What training offers the best prospective job opportunities in the future?”  Obama’s response was, “The days are over for getting a job just because you work hard…the world is shrinking. Products from Addison end up in China…  We can do more to encourage math, science, engineering and technical skills.  Having a foreign language skill is important too.”

Seventh Question

An eleven-year-old boy asked what could be done to keep his grandfather’s ethanol plant running.  Obama emphasized that Sec. Of Agriculture Vilsack is a strong supporter of biofuels and that the government wants to find diversity in products that can be used for fuel.  Wanting to make biofuels out of things that are not in the food chain will require an investment in research.  He gave the example that one-third of Brazil’s fleet operates on biofuels.

But using biofuels ²⁷ has not been without consequence to the rich rain forests that have been cut down in order to grow biofuels and growing some of the biofuels have been identified as adding to more CO² emissions because of the fertilizer used.

Eighth Question

A young man who had promised his grandmother that he would be a lobbyist for senior citizens asked when Social Security would get a cost of living (COLA) increase.  Obama replied that it is likely that a COLA increase will happen soon.  He added,  “Social Security is NOT in a crisis”.

Two weeks ago, who would have believed that Social Security was solvent after Obama threatened to not send out the Social Security checks for lack of money!  He added, “We tried to pass a $250 supplement, but Congress wouldn’t pass it.”

Ninth Question

A young woman working for Community Services, concerned about budget cuts from programs that “help people keep their head above water” such as low income housing programs and heating assistance, asked why these programs were being cut.  She added that the formulas for calculating the funds did not take into consideration the total number of unemployed.  One of Obama’s responses included news of a future program where companies would get subsidies for hiring people.

The president will advocate for a “Returning Heroes Tax Credit,” which would offer participating companies a $2,400 tax credit for hiring short-term unemployed veterans. The White House would also offer additional incentives of $4,800 to companies hiring service members who have faced unemployment for six months or longer.

What if those people needing help with heating fuel and housing costs are not veterans?

He concluded by saying that if we pull together using American know-how and ingenuity, we will be stronger and that he needs their voices to be heard in Congress.

Town Hall Alpha, Illinois August 17

With a green John Deere tractor, hay bales and the U.S. flag being the outdoor

stage focal points, the audience waited for over an hour in the sun and heat for Obama to begin his speech.  Basically, he said the same thing that he said in all the other rural towns.  He spoke of how bad it was two-and-a-half years ago when he first became president.  Again, he made a reference to the false statistic that the private sector had created over two million jobs.  He blamed the Japanese Tsunami, debt crisis in Europe and trouble in the Middle East for our economic problems. 

His standard line came through again:  “There is a lot wrong with our politics and that is what we have to fix.  The debt debacle was a self-inflicted wound.  Six months ago, if we could have come together on a bi-partisan basis we wouldn’t have had a problem.”

If Congress had raised the debt ceiling, giving Obama an unlimited charge card, every man, woman and child living in America would owe much more than the ever increasing figure ²⁸ $47,011.12. You might want to check that link again to see if that figure has increased.  I think the increase is almost a thousand dollars a day because it was $46,000+ yesterday!

He spoke briefly about modifications that he would like to have made to Social Security and Medicare and ended by saying:  “I am here to enlist you to send a message to Congress that we are tired of the games and posturing.  Think about the next generation instead of the next election.”

It would be nice if he took his own words to heart.

The question and answer session was brief.  Questions included a woman concerned about losing the family farm because of estate taxes.  Obama said, “We should be thinking about what is ‘“fair’.  Some people can afford to give more than others and there is nothing Socialist about paying your fair share.”  Hmmmmm……….wonder why

he used that “S” word? 

Another farmer voiced concern about increasing government regulations.  Obama countered that before every regulation is passed it goes through intensive discussion and that he should just call the USDA. 

The farmer is correct in voicing his concern about increased governmental agriculture regulations.  New demands are coming from the EPA to regulate DIRT.  "If there's ever been rural America, that's what rural America is," said Nebraska hog farmer Danny Kluthe. "You know? It's dirt out here, and with dirt you've got dust."

The Environmental Protection Agency is looking to tighten standards for the amount of harmful particles in the air, facing opposition from U.S. farming groups ²⁹ who call it an unrealistic attempt to regulate dust.

A woman working for the tourism council asked if he would elaborate on his and Michelle’s philosophy of eating properly.  Obama praised Michelle for the great job she had done with nutrition and exercise. He mentioned how Wal-Mart, Farmers’ Markets, and the Child Nutrition Act utilize more vegetables and produce.

The last questioner, a girl of 13 whose step-dad is a sheriff, asked what could be done to better equip and train our law enforcement officers.  Obama said that although the violent crime rate is down, the crime rate against law enforcement officers is going up. “The problem is criminals have gotten better weapons.  We need to have improved tracing of weapons. I am a big believer in the Second Amendment and hunting. Keeping guns out of the hands of criminals is something we need to do.”

According to what I am reading, Obama is also a big fan of gun control, just ask any member of the National Rifle Association and they will tell you that Obama, Attorney General Eric Holder and Secretary of State Hillary Clinton are chomping at their bits trying to enact more gun confiscation ³⁰…errrrrrr…I meant gun legislation.  Twelve Democratic senators have joined 45 Republicans in a fast growing movement to halt progress on an Obama-backed United Nations effort that could bring international gun control into the United States and slap America’s gun owners with severe restrictions. 

As predicted, his closing remarks were that government is NOT the problem.

He said, “Government is the policemen, men and women serving us in Iraq, people who work for FEMA, our astronauts, food inspectors, so don’t buy into this problem that government is the problem, we have a problem because we didn’t HAVE government looking over the shoulders of banks who were taking crazy risks.”

So According to this last statement made by Obama, banks need more regulation too!

Of course, he would criticize our political system because he is not readily getting his hidden agenda railroaded through as easily as he would like.  That is, except for his list of 92 Executive orders signed thus far in his 30 months as president which is at least 3 Executive Orders per month.  The last being Executive Order 13583 - Establishing a Coordinated Government-wide Initiative to Promote Diversity and Inclusion in the Federal Workforce. ³¹

This Executive Order has conveniently circumvented Congress, has given amnesty to 300,000 illegal aliens awaiting deportation ³², plus giving them access to U.S. tax identification numbers and access to work permits. 

Talk about making a fast get-away, Obama signed the order the night before leaving for his August Martha’s Vineyard vacation.  You remember the one that “all presidents take in August.” 

Charles Krauthammer discussing the president's Martha's Vineyard vacation ³³ said,  “Choosing an exclusive enclave like the Vineyard after spending three days on the road railing against the rich and the wealthy and the millionaires and the billionaires and the corporate jet owners who vacation exactly in the same place and then spending 10 days in their company speaks of a kind of dissonance or hypocrisy."

Dear Comrade Obama:

It isn't that our political system is wrong.  The problem is that your politics don't fit with real Americans who would like to see a United States flag or the Presidential insignia on your bus....after all, you were not on a "campaign".

  We would like to see a real love of country.  We would like you to stop giving our money to terrorists. We would like you to start abiding by our government's rules that are written in the United States Constitution.  We would like you to stop doing things behind our backs.

The amnesty that you gave to illegal aliens in your recent Executive Order was written in defiance of our LAWS.    The health care bill that you rammed down our throats was another knife in the back to our country.

We would like you to respect our laws and our Constitution

Obviously, if Obama has his way we are looking at more Big Government regulation and more Big Government spending.  All I have to say after listening to his speeches for the last three days is “Thank God for the American Political Process!”

Hmmm… There are those colors again~

References

¹ Obama has been endorsed by the Communist Party

http://www.obamabiden12.com/obama-biden-2012/obama-endorsed-by-communist-party-usa-sam-webb-chairman.html

² Communist Party Endorses Obama For 2012

http://nation.foxnews.com/president-obama/2011/08/04/communist-party-endorses-obama-2012

² Communist Party USA Endorses Obama, Democrats in 2012

http://www.examiner.com/political-buzz-in-fayetteville/communist-party-usa-endorses-obama-democrats-2012

³ The Start up Bill

http://www.entrepreneurship.org/en/Blogs/Policy-Forum-Blog/2011/March/Startup-Visa-Act-of-2011.aspx

⁴ Following are three links showing violent union tactics:

SEIU Mob Attacks Shopping Mall Security Guards in San Francisco

http://mrctv.org/blog/seiu-mob-attacks-shopping-mall-security-guards-san-francisco

SEIU Men Acquitted of Beating Black Tea Partier During Town Hall Protest

http://weaselzippers.us/2011/07/12/seiu-men-acquitted-of-beating-black-tea-partier-during-town-hall-protest/

Richard Devlin and more evidence of Union Thuggary

http://nwrepublican.blogspot.com/2011/06/richard-devlin-and-more-evidence-of.html

⁵ Executive Order - Establishment of the White House Rural Council (#13575)
http://www.whitehouse.gov/the-press-office/2011/06/09/executive-order-establishment-white-house-rural-council

⁶ Politics, Farmers And Change: The End Of Rural America

http://www.huffingtonpost.com/dave-murphy/family-farms_b_929955.html

⁷ Rural Tour

http://www.whitehouse.gov/the-press-office/president-obama-announces-rural-tour-with-cabinet-secretaries-and-administration-of

⁸ Executive Order 13575
http://en.wikisource.org/wiki/Executive_Order_13575

⁹ Anarchist Symbolism

http://en.wikipedia.org/wiki/Anarchist_symbolism

¹⁰ What are Gog and Magog?
http://www.gotquestions.org/Gog-Magog.html

¹¹ Obama's Iowa speech lie

http://www.americanthinker.com/blog/2011/08/obamas_iowa_speech_lie.html

¹² Social Security disability on verge of insolvency
http://news.yahoo.com/social-security-disability-verge-insolvency-090119318.html

¹³ELABORATE WELFARE HOUSING PROJECT

http://www.youtube.com/watch?v=fu6ok5ykyuQ&feature=share

¹⁴As China Says No More Stimulus, Obama Comes Begging For More.... While Promising Even MORE Cuts In The Unknown Future
http://www.zerohedge.com/news/china-says-no-more-stimulus-obama-comes-begging-more-while-promising-even-more-cuts-unknown-fut

¹⁵ NAFTA a Dirty Lie
http://www.youtube.com/watch?v=mRkWcWGfbiQ

¹⁶ S.565 -- StartUp Visa Act of 2011

http://www.govtrack.us/congress/bill.xpd?bill=s112-565

¹⁷ EAT THE RICH!
http://www.youtube.com/watch?v=661pi6K-8WQ&feature=related

¹⁸ Even Jon Stewart is Calling Obama’s Bus Tour a Campaign Event
http://www.theblaze.com/stories/even-jon-stewart-is-calling-obamas-bus-tour-a-campaign-event/

¹⁹ Obama's unhelpful advice

http://www.politico.com/politico44/perm/0811/call_uncle_sam_5c130fdd-0e34-4b04-99e1-3d923ea3919e.html

²⁰ OUTRAGE OF THE DAY: Do You Realize That The Government Is Still Paying Banks Not To Lend...?
http://www.businessinsider.com/government-paying-banks-not-to-lend-2011-8

²¹ True Cost of Stimulus: $3.27 Trillion
http://blog.heritage.org/2009/02/12/true-cost-of-stimulus-327-trillion/

²² Obama To Announce New Steps To Get Veterans Back To Work
http://blogs.abcnews.com/politicalpunch/2011/08/obama-to-announce-new-steps-to-get-veterans-back-to-work.html

²³ Troops wait in limbo for disability, discharge
http://www.armytimes.com/news/2011/08/ap-troops-wait-limbo-for-disability-discharge-081811/

²⁴ 46 Percent of Americans Exempt From Federal Income Tax in 2011

http://www.huffingtonpost.com/2011/06/28/46-percent-of-americans-e_n_886293.html

²⁵ $1.65 TRILLION IN SPENDING THAT DOESN’T BENEFIT AMERICANS – AND WE CAN’T AFFORD IT!
http://noisyroom.net/blog/2010/12/03/1-65-trillion-in-spending-that-doesn%E2%80%99t-benefit-americans-and-we-can%E2%80%99t-afford-it/

²⁶ Oops! US gives $360 million to Taliban, other enemies

http://www.catholic.org/international/international_story.php?id=42441&utm_source=catholic.org%2Fhomepage&utm_medium=banner&utm_content=latest%2Bnews

²⁷ Environmental impacts of current biofuels
http://www.birdlife.org/eu/EU_policy/Biofuels/eu_biofuels2.html

²⁸ Debt Clock

http://www.brillig.com/debt_clock/

²⁹ U.S. farmers oppose EPA's proposed dust regulation
http://www.reuters.com/article/2010/08/19/us-epa-dust-regulation-idUSTRE67I5T120100819

³⁰ Even Democrats Oppose Obama On Gun Control Treaty
http://blog.chron.com/texassparkle/2011/07/even-democrats-oppose-obama-on-gun-control-treaty/

³¹ Executive Order 13583 - Establishing a Coordinated Government-wide Initiative to Promote Diversity and Inclusion in the Federal Workforce

http://1461days.blogspot.com/2011/08/executive-order-13583-establishing.html

³² Obama Amnesty Begins: Halts Deportations for 300,000 Illegal Aliens; Offers ‘Work Permits’
http://standwitharizona.com/blog/2011/08/18/obama-amnesty-begins-halts-deportations-for-300000-illegal-aliens-offers-work-permits/

³³ Krauthammer: Problem With Obama's Vacation Is "The Choice Of Place"
http://www.realclearpolitics.com/video/2011/08/19/krauthammer_problem_with_obamas_vacation_is_the_choice_of_place.html

By Syver Alton Larsen - h/t to MJ, AJ and Jean Stoner

The Great Collapse has Officially Begun

Banks Are Ripping Off Pension Funds Thru FOREX

Trading Of Over The Counter Gold And Silver To Be Illegal Beginning July 15

In the viewpoint of several friends and fellow bloggers who are in the know, this is a precursor to seizure of gold and silver. And Zero Hedge is reporting this correctly. Terresa of the NoisyRoom found this article at Goldline.com. (Need a subscription to read the whole thing, but the title says it all). 

Goldline Report: Seizure of Gold in '33 Increases Likelihood of 21st Century Governmental Gold Bullion Heist

By David L. Ganz
Attorney and Author

"The only thing we have to fear is fear itself." With these words, Franklin Delano Roosevelt galvanized a nation in his inaugural address on March 4, 1933 as 32nd President of the United States. The nation was in dire straits as the American economy sneezed and the world caught pneumonia. Inflation was running negative as the economy failed to grow (and actually declined) for its fourth consecutive year.

M~

One small step toward Executive Order 6102 part 2, and one giant leap for ‘corrupt congressman kind’.

From: FOREX.com <info@forex.com>
Date: Fri, Jun 17, 2011 at 6:11 PM
Subject: Important Account Notice Re: Metals Trading
To: xxx

Important Account Notice Re: Metals Trading

We wanted to make you aware of some upcoming changes to FOREX.com’s product offering. As a result of the Dodd-Frank Act enacted by US Congress, a new regulation prohibiting US residents from trading over the counter precious metals, including gold and silver, will go into effect on Friday, July 15, 2011.

In conjunction with this new regulation, FOREX.com must discontinue metals trading for US residents on Friday, July 15, 2011 at the close of trading at 5pm ET. As a result, all open metals positions must be closed by July 15, 2011 at 5pm ET.

We encourage you to wind down your trading activity in these products over the next month in anticipation of the new rule, as any open XAU or XAG positions that remain open prior to July 15, 2011 at approximately 5:00 pm ET will be automatically liquidated.

We sincerely regret any inconvenience complying with the new U.S. regulation may cause you. Should you have any questions, please feel free to contact our customer service team.

Sincerely,
The Team at FOREX.com     

So far we have only received this warning from Forex.com. We are waiting to see which other dealers inform their customers that trading gold and silver over the counter will soon be illegal.

It appears that Forex.com's interpretation of the law stems primarily from Section 742(a) of the Dodd-Frank act which "prohibits any person [which again includes companies]from entering into, or offering to enter into, a transaction in any commodity with a person that is not an eligible contract participant or an eligible commercial entity, on a leveraged or margined basis."

Some prehistory from Hedge Fund Law Blog:

The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Act”) has changed a number of laws in all of the securities acts including the Commodity Exchange Act.  Two specific changes deal with certain transactions in commodities on the spot market.  Specifically, Section 742 of the Act deals with retail commodity transactions.  In this section, the text of the Commodity Exchange Act is amended to include new Section 2(c)(2)(D) (dealing with retail commodity transactions) and new Section 2(c)(2)(E) (prohibiting trading in spot forex with retail investors unless the trader is subject to regulations by a Federal regulatory agency, i.e. CFTC, SEC, etc.).  According to a congressional rulemaking spreadsheet, these are effective 180 days from the date of enactment.

We provide an overview of the new sections and have reprinted them in full below.

New CEA Section 2(c)(2)(D) – Concerning Spot Commodities (Metals)

The central import of new CEA Section 2(c)(2)(D) is to broaden the CFTC’s power with respect to retail commodity transactions.  Essentially any spot commodities transaction (i.e. spot metals) will be subject to CFTC jurisdiction and rulemaking authority.  There is an exemption for commodities which are actually delivered within 28 days.  While the CFTC wanted an exemption in which commodities would need to be delivered within 2 days, various coin collectors were able to lobby congress for a longer delivery period (see here).

It is likely we will see the CFTC propose regulations under this new section and we will keep you updated on any regulatory pronouncements with respect to this new section.

New CEA Section 2(c)(2)(E) – Concerning Spot Forex

The central import of new CEA Section 2(c)(2)(E) is to regulate the spot forex markets.  While the section requires the CFTC to finalize regulations with respect to spot forex (which were proposed earlier in January), it also, interestingly, provides  oversight of the markets to other federal regulatory agencies such as the CFTC.  This means that in the future, different market participants may be subject to different regulatory regimes with respect to trading in same underlying instruments.  A Wall Street Journal article discusses the impact of this with respect to firms which engage in other activities in addition to retail forex transactions.  The CFTC’s proposed rules establish certain compliance parameters for retail forex transactions, requires registration of retail forex managers and requires such managers to pass a new regulatory exam called the Series 34 exam.  We do not yet know whether the other regulatory agencies will adopt rules similar to the CFTC or if they will write rules from scratch.

Next, from Henderson & Lyman:

The prohibition of Section 742(a) does not apply, however, if such a transaction results in actual delivery within 28 days, or creates an enforceable obligation to deliver between a seller and a buyer that have the ability to deliver, and accept delivery of, the commodity in connection with their lines of business. This may be problematic as in most spot metals trading virtually all contracts fail to meet these requirements. As a result, although the courts’ interpretation of Section 742(a) is unknown, Section 742(a) is likely to have a significantly negative impact on the OTC cash precious metals industry. Here too, it is essential that those who offer to be a counterparty to OTC metals transactions seek professional help to discuss possible operational and regulatory contingency plans.

The actual rule language exempts a transaction if it "results in actual delivery within 28 days or such other longer period as the Commission may determine by rule or regulation based upon the typical commercial practice in cash or spot markets for the commodity involved;" Alas, the commission has decided not to intervene and keep the exemption status window so small as to affect virtually all exchanges which transact in the gold and silver spot market.

More here:

Elimination of OTC Forex

Effective 90 days from its inception, the Dodd-Frank Act bans most retail OTC forex transactions. Section 742(c) of the Act states as follows:

…A person [which includes companies] shall not offer to, or enter into with, a person that is not an eligible contract participant, any agreement, contract, or transaction in foreign currency except pursuant to a rule or regulation of a Federal regulatory agency allowing the agreement, contract, or transaction under such terms and conditions as the Federal regulatory agency shall prescribe…

This provision will not come into effect, however, if the CFTC or another eligible federal body issues guidelines relating to the regulation of foreign currency within 90 days of its enactment. Registrants and the public are currently being encouraged by the CFTC to provide insight into how the Act should be enforced. See CFTC Rulemakings regarding OTC Derivatives located at the following website address, under Section XX – Foreign Currency (Retail Off Exchange). It is essential that OTC forex participants seek professional help to discuss possible operational and regulatory contingency plans.

Elimination of OTC Metals

As for OTC precious metals such as gold or silver, Section 742(a) of the Act prohibits any person [which again includes companies]from entering into, or offering to enter into, a transaction in any commodity with a person that is not an eligible contract participant or an eligible commercial entity, on a leveraged or margined basis. This provision intends to expand the narrow so called “Zelener fix” in the Farm Bill previously ratified by congress in 2008. The Farm Bill empowered the CFTC to pursue anti-fraud actions involving rolling spot transactions and/or other leveraged forex transactions without the need to prove that they are futures contracts. The Dodd-Frank Act now expands this authority to include virtually all retail cash commodity market products that involve leverage or margin – in other words OTC precious metals.

The prohibition of Section 742(a) does not apply, however, if such a transaction results in actual delivery within 28 days, or creates an enforceable obligation to deliver between a seller and a buyer that have the ability to deliver, and accept delivery of, the commodity in connection with their lines of business. This may be problematic as in most spot metals trading virtually all contracts fail to meet these requirements. As a result, although the courts’ interpretation of Section 742(a) is unknown, Section 742(a) is likely to have a significantly negative impact on the OTC cash precious metals industry. Here too, it is essential that those who offer to be a counterparty to OTC metals transactions seek professional help to discuss possible operational and regulatory contingency plans.

Small Pool Exemption Eliminated

Pursuant to Section 403 of Act, the “private adviser” exemption, namely Section 203(b)(3) of the Investment Advisers Act of 1940 (“Advisers Act”), will be eliminated within one year of the Act’s effective date (July 21, 2011). Historically, many unregistered U.S. fund managers had relied on this exemption to avoid registration where they:

(1) had fewer than 15 clients in the past 12 months;

(2) do not hold themselves out generally to the public as investment advisers; and

(3) do not act as investment advisers to a registered investment company or business development company.

At present, advisers can treat the unregistered funds that they advise, rather than the investors in those funds, as their clients for purposes of this exemption. A common practice has thus evolved whereby certain advisers manage up to 14 unregistered funds without having to register under the Advisers Act. Accordingly, the removal of this exemption represents a significant shift in the regulatory landscape, as this practice will no longer be allowable in approximately one year.

Also an important consideration, the Dodd-Frank Act mandates new federal registration and regulation thresholds based on the amount of assets a manager has under management ("AUM"). Although not yet underway, it is possible that various states may enact legislation designed to create a similar registration framework for managers whose AUM fall beneath the new federal levels.

Accredited Investor Qualifications

Section 413(a) of the Act alters the financial qualifications of who can be considered an accredited investor, and thus a qualified as eligible participant (“QEP”). Specifically, the revised accredited investor standard includes only the following types of individuals:

1) A natural person whose individual net worth, or joint net worth with spouse, is at least $1,000,000, excluding the value of such investor's primary residence;

2) A natural person who had individual income in excess of $200,000 in each of the two most recent years or joint income with spouse in excess of $300,000 in each of those years and a reasonable expectation of reaching the same income level in the current year; or

3) A director, executive officer, or general partner of the issuer of the securities being offered or sold, or a director, executive officer, or general partner of a general partner of that issuer.

Based on this language, it is important to note that the revised accredited investor standard only applies to new investors and does not cover existing investors. However, additional subscriptions from existing investors are generally treated as requiring confirmation of continuing investor eligibility.

On July 27th, 2010, the SEC provided additional clarity regarding the valuation of an individual’s primary residence when calculating net worth. In particular, the SEC has interpreted this provision as follows:

Section 413(a) of the Dodd-Frank Act does not define the term “value,” nor does it address the treatment of mortgage and other indebtedness secured by the residence for purposes of the net worth calculation…Pending implementation of the changes to the Commission’s rules required by the Act, the related amount of indebtedness secured by the primary residence up to its fair market value may also be excluded. Indebtedness secured by the residence in excess of the value of the home should be considered a liability and deducted from the investor’s net worth.

Also, when tried to tweet this yesterday it was blocked?!?  Today it worked.

Source:  ZeroHedge

Thomas Sowell - Spilled Milk

Thomas Sowell, once again, hits one out of the park. I love Thomas Sowell! In a recent discussion thread we enjoyed a debate including Frances Fox Piven & Mr. Sowell was a MUST-SEE; if you haven't seen it yet, watch it once you finish reading this!

The EPA is one of the agencies which would immediately cease to exist under my deficit-destroying, government spending reduction plan.

Jared Law – 9.12 Project

Here's Thomas Sowell's brilliant post:

Spilled Milk

Despite the old saying, "Don't cry over spilled milk," the Environmental Protection Agency is doing just that.
We all understand why the Environmental Protection Agency was given the power to issue regulations to guard against oil spills, such as that of the Exxon Valdez in Alaska or the more recent BP oil spill in the Gulf of Mexico. But not everyone understands that any power given to any bureaucracy for any purpose can be stretched far beyond that purpose.

In a classic example of this process, the EPA has decided that, since milk contains oil, it has the authority to force farmers to comply with new regulations to file "emergency management" plans to show how they will cope with spilled milk, how farmers will train "first responders" and build "containment facilities" if there is a flood of spilled milk.

Since there is no free lunch, all of this is going to cost the farmers both money and time that could be going into farming-- and is likely to end up costing consumers higher prices for farm products.

It is going to cost the taxpayers money as well, since the EPA is going to have to hire people to inspect farms, inspect farmers' reports and prosecute farmers who don't jump through all the right hoops in the right order. All of this will be "creating jobs," even if the tax money removed from the private sector correspondingly reduces the jobs that can be created there.

Does anyone seriously believe that any farmer is going to spill enough milk to compare with the Exxon Valdez oil spill or the BP oil spill?

Do you envision people fleeing their homes, as a flood of milk comes pouring down the mountainside, threatening to wipe out the village below?

It doesn't matter. Once the words are in the law, it makes no difference what the realities are. The bureaucracy has every incentive to stretch the meaning of those words, in order to expand its empire.

The Equal Employment Opportunity Commission has expanded its definition of "discrimination" to include things that no one thought was discrimination when the Civil Rights Act of 1964 was passed. The Federal Communications Commission is trying to expand its jurisdiction to cover things that were never included in its jurisdiction, and that have no relationship to the reason why the FCC was created in the first place.

Yet the ever-expanding bureaucratic state has its defenders in the mainstream media. When President Obama recently mentioned the possibility of reducing burdensome regulations-- as part of his moving of his rhetoric toward the political center, even if his policies don't move-- there was an immediate reaction in a New York Times article defending government regulations.

Under a headline that said, "Obama May Find Useless Regulations Are Scarcer Than Thought," the Times writers declared that there were few, if any, "useless" regulations. But is that the relevant criterion?

there any individual or business willing to spend money on everything that is not absolutely useless? There are thousands of useful things out there that any given individual or business would not spend their money on.
When I had young children, I often thought it would be useful to have a set of the Encyclopedia Britannica for them. But I never bought one. Why? Because there were other little things to spend money on, like food, clothing and shelter.

By the time I could afford to buy a set of the Encyclopedia Britannica, the kids were grown and gone. But at no time did I consider the Encyclopedia Britannica "useless."
Weighing benefits against costs is the way most people make decisions-- and the way most businesses make decisions, if they want to stay in business. Only in government is any benefit, however small, considered to be worth any cost, however large.

No doubt the Environmental Protection Agency's costly new regulations may somewhere, somehow, prevent spilled milk from pouring out into some street and looking unsightly. So the regulations are not literally "useless."
What is useless is making that the criterion.

 

Related:

CNSNews ^ | February 3, 2011 | Penny Starr

Environmental Protection Agency Administrator Lisa Jackson said at a Senate hearing on Wednesday that Americans have a 'right' to know if their drinking water is safe. (CNSNews.com/Penny Starr) (CNSNews.com) – Environmental Protection Agency Administrator Lisa Jackson told a Senate panel that preventing children from being exposed to contaminated water could spare them from autism.Jackson made the remark on Wednesday at a hearing of the Senate Committee on Environment and Public Works in response to questioning by Sen. John Barrasso (R-Wyo.), who asked if a recent executive order by President Barack Obama about regulations and the regulatory process means that… rest of article HERE