This is an election year. That may seem like a tremendous grasp of the obvious but I wish to ask you to look behind that statement so you can see what is happening right in front of your eyes.

What I am really interested in is the Freddie/Fannie bailout. My God, the impact is almost too much to grasp. However, the part I grasped is summed up by a fellow named Jim Rogers in these quotes:

The nationalization of Fannie Mae and Freddie Mac shows that the U.S. is “more communist than China right now” but its brand of socialism is meant only for the rich, investor Jim Rogers, CEO of Rogers Holdings, told CNBC Europe on Monday (9-08-08).

“This is madness, this is insanity, they have more than doubled the American national debt in one weekend for a bunch of crooks and incompetents. I’m not quite sure why I or anybody else should be paying for this,” Rogers told “Squawk Box Europe.”

I submit Rogers is dead wrong when he says the U.S. is “more communist than China right now” because I believe the U.S. has been communist for over 50 years and there is no such thing as “more” communist. Communist is communist in my eyes.

Tell me who wrote the following statements:

1. Abolition of property in land and application of all rents of land to public purposes.
2. A heavy progressive or graduated income tax.
3. Abolition of all right of inheritance.
4. Confiscation of the property of all emigrants and rebels.
5. Centralization of credit in the hands of the State, by means of a national bank with State capital and an exclusive monopoly.
6. Centralization of the means of communication and transport in the hands of the State.
7. Extension of factories and instruments of production owned by the State; the bringing into cultivation of waste-lands, and the improvement of the soil generally in accordance with a common plan.
8. Equal liability of all to labour. Establishment of industrial armies, especially for agriculture.
9. Combination of agriculture with manufacturing industries; gradual abolition of the distinction between town and country, by a more equable distribution of the population over the country.
10. Free education for all children in public schools. Abolition of children’s factory labour in its present form. Combination of education with industrial production, etc.

The author really doesn’t make much difference, right? Right, espeically since those 10 statements accurately reflect our life structure in 2008.

Should you need help in understanding some of the above statements, I suggest you read the Patriot Act while taking a close look at the government agencies in charge of labor, transportation, communication, agriculture, pharmaceuticals, education, taxes, banking and welfare.

Unless I’m full of beans, all 10 planks have been entrenched in our system for at least 50 years. We have even, at times, lobbied the “government” to make them laws. Naturally they complied. It is easy to pen the sheep when the sheep want to be penned.

What Mr. Rogers failed to expound upon, other than a mention of nationalization, was the extent of the federalization of the housing market. It is happening before our eyes and with our approval. The only thing we complain about is the CEOs of Frannie/Freddie absconding with extra large severance packages.

We are missing the action happening behind the scenes in this election year. I submit that is by design.

I happen to like investing in housing and using my knowledge to not only make a few bucks but help those who actually want help. The money is wonderful but so is the feeling of seeing someone keep their home and not be put on the streets.

As the feds continue to steam roll through this arena, homeless camps will become as common as stop signs and red lights. For the non-believers, read the 10 planks one more time.

[As a side note, I mentioned my son in one of my previous posts. His girl friend is from Warsaw. On one of his visits to her home, he met her grandfather. Grandpa spent 5 years in a Communist slave labor camp. All of his properties and belongings were confiscated by the authorities prior to his incarceration. Re-read plank 4 and 12 USC 95(a) and then tell me it can't happen here.]

The time table has been accelerated as evidenced by the gargantuan leap in the federal debt as a result of the Freddie/Fannie takeover. A debt burdened populace becomes powerless to mount any meaningful resistance. Ask the last Roman standing in the final days of “the” empire.

I don’t know about you but the election facade doesn’t leave me with a warm fuzzy feeling.

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Tags: election, fannie, fannie mae, freddie, freddie mac, housing, mccain, obama

One of the all-time great lies is “I’m from the Government and I’m here to help.” In an effort to stimulate the economy and slow down the growth of foreclosures, the Federal Reserve has drastically reduced interest rates. While this doesn’t directly impact mortgage rates, it does affect the indexes that are used to calculate the adjustment of ARM loans. While the rate of growth in the number of foreclosures has slowed, there are other consequences of the rate cuts.

You may have notice a “slight” increase in the price of gasoline. A large portion of this price increase can be attributed to the falling value of the dollar in relation to other currencies around the world. When the dollar falls, the cost of imported goods rises. One of our largest imports is oil. The ripple caused by the interest rate cuts has led, in part, to the dramatic rise in the price of gas.

The increase in fuel cost has its own ripple effect. Have you been to the grocery store lately? Rising fuel costs have led to increased transportation costs. Since the majority of goods in this country move by truck, the cost of just about everything is impacted. There has also been an increase in the production of ethanol for use as fuel. This has caused the price of grain to rise, yet another ripple in the pond.

The small pebbles have turned into a tidal wave of trouble for our economy. Being an election year, everyone is so concerned with pointing fingers and looking for someone to blame. The truth is that we all played a part in the drama. It is also up to us to play a role in the recovery. Our economy is very resilient and our people have a way of bouncing back. Let’s do our part by getting our own financial house in order and making sound financial decisions.

For want of a nail the shoe was lost.
For want of a shoe the horse was lost.
For want of a horse the rider was lost.
For want of a rider the battle was lost.
For want of a battle the kingdom was lost.
And all for the want of a nail.

Benjamin Franklin (In Poor Richard’s Almanac)

Tags: Economy, election, federal reserve, housing, real estate

Today is the big day! If you’re reading this and haven’t hit the polls yet, get up and do so!

From PBS:

It’s a puzzle — voter registration in the United States is at an all-time high but voter participation is nearing an all-time low. In the 1964 presidential elections 69.3 percent of the voting age population cast a ballot. In 2002, that number was only 54.7 percent, up 0.3 percent from 1996. The numbers for midterm elections are worse. During the midterm election in 1998, only 36.4 percent of the voting age population made it to the polls.

I have to say that I understand why people sometime don’t make it to the polls. I spent a few hours last night reading through all the material the State of California provided to its citizens. Sadly, while it covered the many propositions that were up for vote, there was something lacking. Less then half of the candidates that were running for office had their positions or even a one sentence bio in the election materials provided.

After conferring with some friends and family, I felt better informed and finished making my choices. I had to take the time to do some research, but I realize that it is my duty to do so. There are two sites that I use to help educate me on the candidates and issues: vote411.org, and smartvoter.org. These are fantastic resources, and I recommend you go through them before hitting the polls.

I realize that all the choices may be confusing, and it takes a fair amount of time to go through all the materials and information you can dig up online, but it is important enough that we all do it.

Don’t just vote for anyone. Do your homework. Do some research. Be informed. The United States has been a model for democracy for decades, and we need to start learning what the rest of the world envy’s us for. Our voice matters. Every individual has the opportunity to make a difference.

I’m disappointed that so few Americans vote, but it is never too late. Lets prove to the world that we care about what’s going on here in the greatest country around. Lets prove to the rest of the world that we care what the United States does around the world. Lets stop complaining about why politicians stink. Lets stop talking about how our government doesn’t properly represent us. Lets prove to ourselves that we can do it. Lets get out and vote . . .

. . . and if you really care, why not start thinking about running for office yourself!

See you at the polls!

Tags: congress, democrat, election, house, polls, republican, senate, states, united, vote