So says Bruce Krasting a former hedge fund manager.
Monthly Archives: December 2010
Source: ABC-Sacramento: Airline pilot is the subject of a federal investigation for exposing what he says are serious flaws in the U.S. Transportation Security Administration’s (TSA) airport security protocols
Hat Tip to Kentucky Preppers Network on forwarding this out.
Looks like if you anger the Gestapo… I mean the TSA… zay revoke ya paperzzz ya?
Filed under Constitutional Usurpations
As financial experts and US Senators predict “apocolyptic, social unrest” in the US in 2011 because of municipality bond “defaults”, Moody’s debt rating for Cleveland County Public Facilities Corporation is one step away from being downgraded from low to “medium” risk
In May/June of 2010 when Cleveland county was preparing the budget for FY 2010/2011 the following was a statement from the County Manager David Dear.
“The county unemployment rate is currently 14.3%. Retail sales have continued to decline and local housing starts are currently very depressed. Despite declining revenues, this budget focuses on maintaining overall public expenditures at current levels.”
http://www.ccncgov.com/FinanceD/budget/budget11msg.pdf
That included the issuing of $22 million in limited obligation bonds.
Julie Crawshaw from Money News reported today Dec 27th:
“U.S. Senator Tom Coburn warned Americans this Sunday of an apocalyptic economic future, with Great Depression levels of unemployment and a destruction of the country’s middle class.”
Sen Coburn told Fox News that unemployment could reach 18%, and:
“if we didn’t take some pain now, we’re going to experience apocalyptic pain, and it’s going to be out of our control.”
Is a perfect storm brewing just over the horizon for Cleveland county and NC?
Greg Brown from MoneyNews.com reports:
“Meredith Whitney, the former Oppenheimer analyst whose dead-on predictions on the banking crisis vaulted her to fame, said on CNBC that she stands by her controversial new call: Massive unrest across the country as the municipal-bond market sells off.”
http://www.cnbc.com/id/40769692/
Other analysts have disagreed with Whitney’s assessment, however in June of 2010 Warren Buffet agreed that a US Bond Market meltdown was on the way.
http://www.moneynews.com/StreetTalk/warren-Buffett-Municipal-Debt/2010/06/03/id/360924
In December Alan Greenspan, who served as Fed chairman from Aug. 11, 1987 to Jan. 31, 2006, said:
“A bond-market crisis is likely unless we do something about the budget deficit,”
Greenspan: Bond-Market Crisis Likely if Budget Deficit Ignored
In the CNBC interview, Whitney estimates that 32% of State funding is provided by the Federal Government. And the state’s in turn make up 40% of municipal [county] budgets.
Cleveland county leaders claim to run a “balanced” budget. But if 40% of our budget comes from Raleigh, are we truly running a balanced budget?
Moody’s Aa3 debt rating for Cleveland County Public Facilities Corporation, the issuer of $22 million dollars worth of “limited obligation” bonds, is one level away from being downgraded from low risk to “Medium” risk.
”A limited obligation bond, or revenue bond, differs from a general bond in that a limited obligation bond is not linked directly to a municipality’s tax revenue. Limited obligation bonds are payable from the facility for which the bond was originally issued.”
Cleveland county formed the Cleveland County Public Facilities Corporation to issue $22 million in limited obligation bonds to build the LeGrand Center at Cleveland Community College, and the new Shelby Middle School.
Why a limited obligation fund? Because Cleveland county did not want to raise our taxes to pay for it. Instead, they opened a new credit card, under a different name, based on new ”revenue” it received from Raleigh.
But where is Raleigh getting the money? The Center on Budget and Policy Priorities reported on December 16th that NC’s projected budget deficit for FY 2012 is almost $4 billion. Raleigh has a buddy that owns a printing press, called the Federal Reserve.
The $800 billion ”Stimulus Package” (properly known as the American Recovery and Re-Investment Act of 2009) is currently financing the construction of the new Shelby Middle School and the LeGrand Center.
http://www.ncrecovery.gov/opportunities/recoveryzoneBonds.aspx
So the Fed’s print the money and give it to the states, and the states doll it out to the counties. Cleveland county created the Cleveland County Public Facilities Corporation to issue $22 million in bonds with stimulus money; what’s the problem?
The problem is the Stimulus money runs out in June of 2011.
The Daily Beast reported in December about NC’s fiscal status:
“Like so many other states, North Carolina is finding it tough to pay for its health care system for low income residents, and that could lead to unpaid time off for state workers. The state could find itself on the hook for $500 million in Medicaid if federal funding isn’t renewed.
NC Senator Linda Garrou-D Forsyth said:
“I would hope (we won’t have furloughs), but I would not be surprised,”
Sen. Garrou-D-Forsyth is co-chairwoman of the Senate’s budget-writing Appropriations Committee.
http://www2.journalnow.com/news/2010/jun/06/battle-of-the-budget-begins-ar-253466/
Ironically, Mrs. Garrou’s husband, John Garrou, C0-Chairs NC’s Legislative Commission on Global Climate Change.
Funding bills have been introduced for the Legislative Commission on Global Climate Change that include:
- H 1803/S 1224, Study NC Programs that Impact Environment.
- H 1804/S 1225, Energy Policy Council Green Energy Study.
- H 1805/S 1222, Funds to Assess/Monitor NC Climate Change.
- H 1806/S 1221, Establish NC Commission on Climate Change.
- H 1807, Supporting Comprehensive Federal Climate Change Legislation.
- H 1808/S 1223, NC Climate Adaptation Strategy.
- H 1809/S 1220, Study Carbon Offsets and Carbon Sequestration.
When the states start lining up for their bailouts, and the Federal Reserve begins printing trillions of more dollars in state bailouts, higher inflation is inevitable. Does Cleveland county have a plan in place if high inflation ensues, and staple items at the grocery store and gas pump start rising dramatically? Or for the increase in public assistance that would be needed if the biggest employer, State Employees, have to be furloughed?
In March 2010 David Dear submitted a report that stated:
“It is expected that the State of North Carolina will have an approximate $1 billion shortfall. The shortage at the state level will determine what other mandates will be sent down to counties.”
http://www.clevelandcounty.com/governing/minutes/minutes03252010.pdf
If Mr Dear is concerned about “shortages” from Raleigh at a $1 billion state deficit, what will the ”shortages” look like with a $4 billion deficit as The Center on Budget and Policy Priorities has estimated? To quote Mr. Dear, “What other mandates will be sent down to counties” from Raleigh? Furlough’s? Benefit cuts? Medicaid cuts? Releasing prisoners from jail early like California is? Retirement Plan cuts? Social Unrest?
http://www.cbpp.org/cms/?fa=view&id=711
Gaspee Gazette attempted to contact Mr. Dear to comment on this story by email and phone. As of the publishing date he has not responded.
Are the citizen’s of Shelby, and Cleveland county ready for some truth…or are we going to continue pretending that none of this exists? That this is America, and it can’t happen here.
Filed under Cleveland County, Economy, Wasteful Spending
YOUR TAX DOLLARS HARD AT WORK AT UNC CHAPEL HILL
The following was a disclaimer in small print at the bottom of the home page for UNC at Chapel Hill’s, Environmental Finance Center:
“The Environmental Finance Center is a program within the UNC School of Government. EFC receives funding from a variety of sources, including the U.S. Environmental Protection Agency and the NC Department of Environment and Natural Resources.”
And you do not have to look far to find the S word either…”sustainable” they list the following as their mission:
“The UNC EFC is dedicated to enhancing the ability of governments to provide environmental programs and services in fair, effective and financially sustainable ways.
After years of tireless research they are finally prepared to float a new theory out there to local municipalities. Now bear in mind this is based on the latest research available and is arguably controversial. But the UNC Environmental Finance Center theorizes that: IF utilities charge higher prices for water, THEN their customers will use less. There i’ve said it. The cat is out of the bag, Pandora’s box has been opened, you can’t get the genie back in the bottle etc. etc. They call this theory: Conservation Oriented Rates. Gaspee Gazette will continue to read the The Environmental Finance Center’s 2009 report for all other groundbreaking, earth shattering theories about controlling… I mean managing, our water usage. Thanks to ICLEI’s southeast page for turning me on to this group.
http://www.efc.unc.edu/publications/2009/2009_SWIC_FullReport.pdf
Fox News: WILL THE SUPREME COURT BAN LEAD AMMUNITION?
SOURCE: ASSOCIATED PRESS: CENTER FOR BIOLOGICAL DIVERSITY HAS FILED SUIT AGAINST EPA: SUIT SEEKS TO FORCE EPA TO PREVENT LEAD POISNING OF WILDLIFE FROM SPENT AMMUNITION AND LOST FISHING TACKLE
You may remember Gaspee Gazette covered this story previously when back in August the EPA denied a petition from The Center for Biological Diversity, and other environmental groups, for the EPA to institute a nationwide ban on lead based ammunition. You can read that post here:
http://wp.me/p11aYW-4x
. The EPA denied the ammunition part of the petition, saying it didn’t have authority to do so under the Toxic Substances Control Act.
I have heard Tera Servatious on WBT 1110 say before that we need to be praying for the arteries of Supreme Court Justices: Roberts, Scalia, Thomas, and Alito everyday. Because the ability to purchase or manufacture lead ammunition will soon be resting on these 4 men’s shoulders.
Filed under 10th Amendment, Police State
Mexican citizens will soon be eligible to apply for a “trusted traveler” status that will allow them to bypass some elements of airport security when they fly into the United States —
Shout out to vehoae and her Still Standing blog for posting about this Fox News story.
While US citizen’s are being scanned into Homeland Security porno movies, or fondled, non-citizens get “zeer paperz” and go right through!
http://stillstandingup.wordpress.com/2010/12/24/real-estate-agents-where-are-you/trackback/
Filed under Constitutional Usurpations
New U.S. Treasury report showed Tuesday the government’s liabilities increased another $2 trillion in 2010: US debt exceeds assets by $13.473 trillion
Story from Money News
Filed under Economic Collapse, Economy, inflation, Uncategorized
Has Rep. McHenry given up on bringing the Czar’s to testify?
Gaspee Gazette has already asked this question in a former post linked below.
However on December 20th Rep. McHenry sent out an email inviting people to take a Congressional Oversight Poll. There were only 4 choices available and bringing the Czar’s to DC was not one of them. Rep. McHenry’s email states:
“Incoming House Oversight and Government Reform Committee Chairman Darrell Issa (R-CA) recently put out a report detailing the responsibilities of Congress to be a watchdog for the Executive Branch. In his report, Chairman Issa noted that the Oversight and Government Reform Committee requested 61% less information and held 21% fewer hearings than they did before the election of President Obama.”
These Czar’s and their radical communist/socialist ideas, having open access to the power of the Executive branch of the most powerful government in the world, is a clear and present danger to the ideals of our country, and our constitution. Please call Rep. McHenry and ask him if he will make good on his promise to bring the Czar’s to justice.
Telephone: 202.225.2576
Filed under GOP Broken Promises
Neal Thomas
