Thomas Sowell "Are You An 'Extremist'?"

[galtgulch]

This article appears as the Commentary of the Month on Investment Rarities website. Do I agree with his concerns? Yes I do but that might be cultural because of my Jewish heritage and their fate at the hands of "storm troopers" in another country whose leader thought people should have a cause greater than themselves. But that doesn't explain the slaughter as well as Peikoff in The Ominous Parallels.

Incidentally I would also recommend reading Ted Butler's Commentary as well and consider following his investment advise. It is on the same site on the top left.

http://www.investmentrarities.com

COMMENTARY OF THE MONTH

May 1, 2009

ARE YOU AN ‘EXTREMIST’?

By Thomas Sowell

While the rest of us may be worried about violent Mexican drug gangs on our border, or about terrorists who are going to be released from Guantanimo, the Director of Homeland Security is worried about "right-wing extremists."

Just who are these right-wing extremists?

According to an official document of the U.S. Department of Homeland Security, right-wing extremists include "groups and individuals that are dedicated to a single issue, such as opposition to abortion or immigration." It also includes those "rejecting federal authority in favor of state or local authority."

If you fit into any of these categories, you may not have realized that you are considered a threat to national security. But apparently the Obama administration has its eye on you.

According to the same official document, the Department of Homeland Security "has no specific information that domestic rightwing terrorists are currently planning acts of violence." But somehow they just know that you right-wingers are itching to unleash terror somewhere, somehow.

So-called "honor killings" by Muslims in the United States, including a recent beheading of his wife by a leader of one of the American Muslim organizations, does not seem to arouse any concern by the Department of Homeland Security.

When it comes to the thuggery of ACORN — its members harassing the homes of bankers and even the home of Senator Phil Gramm when he opposed things that ACORN favored — the Department of Homeland Security apparently sees no evil, hears no evil and speaks no evil.

Maybe they are too busy worrying about right-wing "extremists" who don't like abortions or illegal immigration, or who favor the division of power between the state and federal governments established by the Constitution.

In one sense, the Department of Homeland Security paper is silly. In another sense, it can be sinister as a revealing and disturbing sign of the preoccupations and priorities of this administration — and their willingness to witch hunt and demonize those who dare to disagree with them.

Reportedly, the FBI and the Defense Department are cooperating with the Department of Homeland Security in investigations of returning veterans from Iraq and Afghanistan. That people who have put their lives on the line for this country are made the target of what is called the Vigilant Eagle program suggests that this administration might be more of a threat than the people they are investigating.

All this activity takes on a more sinister aspect against the background of one of the statements of Barack Obama during last year's election campaign that got remarkably little attention in the media. He suggested the creation of a federal police force, comparable in size to the military.

Why such an organization? For what purpose?

Since there are state and local police forces all across the country, an FBI to investigate federal crimes and a Department of Justice to prosecute those who commit them, as well as a Defense Department with military forces, just what role would a federal police force play?

Maybe it was just one of those bright ideas that gets floated during an election campaign. Yet there was no grassroots demand for any such federal police nor any media clamor for it, so there was not even any political reason to suggest such a thing.

What would be different about a new federal police force, as compared to existing law enforcement and military forces? It would be a creation of the Obama administration, run by people appointed from top to bottom by that administration — and without the conflicting loyalties of those steeped in existing military traditions and law enforcement traditions.

In short, a federal police force could become President Obama's personal domestic political army, his own storm troopers.

Perhaps there will never be such a federal police force. But the targeting of individuals and groups who believe in some of the fundamental values on which this country was founded, and people who have demonstrated their patriotism by volunteering for military service, suggests that this potential for political abuse is worth watching, as Obama tries to remake America to fit his vision.

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[Chris Grieb]

Gulch; Good article.

[galtgulch]

Gulch; Good article.

Chris et al,

After I posted this I began to read some of the other articles linked on the column to the left. There folks are knowledgeable about finance and the history of central bank tinkering. Many of them anticipate that a whopping hyperinflation is unavoidable.

The one entitled We Couldn't Have Said It Better was particularly illuminating and alarming.

It is remarkable that Bernanke can sit there and calmly say that as he looks around he sees no sign of inflation! Meanwhile he has made it abundantly clear that he intends to print as much "money" as necessary to get us out of recession.

It is distracting to know something which is outside my field of expertise and to find that the man who is supposed to be the expert is so blatantly ignorant and mistaken and to know that with certainty.

I am reminded of the story Ludwig von Mises told about the time during the early twenties when he lived in Germany and a man wondered aloud "I wish I knew what is causing this inflation!" Mises asked if he really was serious about wanting to know and the man answered affirmatively so Mises told him to meet him at a certain intersection in the city that evening at 9PM.

When they met they were surrounded by a deafening din of noise they had to shout to be heard over it. Mises told the man that the noise was the sound of the government printing presses printing the hyperinflated currency around the clock.

So Bernanke is printing the money, which is to say inflating it, and says there is no sign of inflation because as a good loyal Keynesian he was taught that only the rise in prices is inflation, not the increase in the money supply!

One of the commentators spoke of quadrillions of dollars of Derivatives which will be defaulted on and that AIG will have to be given much more than the trillions to counterbalance that disruption. Here is the quote:

"The real big danger is derivatives, not sub-prime mortgages. The Bank for International Settlements (BIS) has issued a report stating that Derivatives are now $1.14 quadrillion dollars. That is a one with 15 zeros after it. AIG has now been given $180 billion dollars, with a good portion of that money going to Merrill Lynch, Goldman Sachs, J.P. Morgan, Deutsche Bank and a list of others covering one whole page. These are the counter parties to insurance contracts (DERIVATIVES) written by AIG which, like the money given to the banks, is supposed to keep the world’s financial system afloat. But as large as these monies are, it is just like spitting in the ocean. As these Derivatives implode, there will be no end to the monies given to AIG, which has on its books $400 billion of OTC Derivatives and $200 billion of sub-prime mortgages (in a large measure directly due to government malfeasance). But remember the size of the problem. As AIG comes to the feeding table for more and more money, they are not the culprits the Government is making them out to be. They are the Government’s RED HERRING to deflect scrutiny away from themselves AND to funnel taxpayer money into the banks in their effort to prop up their prime campaign contributors and ‘frat-buddies.’ Perhaps by the 10th time, John Q. Public will finally get it with regards to the enormous FRAUD that Socialism really is, as you the taxpayer, are being asked to pay for it. But the taxpayer is completely taxed out and there will be a great many tax defaults since people cannot pay as they just try to survive. How much Capital Gains Taxes do you think will be collected next year, regardless of what Congress raises the rates to? What I am saying is that the tax short fall will be tremendous." Aubie Baltin

So I wonder what everybody here is doing to prepare for this tsunami of Federal Reserve Notes about to inundate us?

Or am I all wrong and should stick to keeping paper FRNs in the bank? Does Silver have more upside potential than Gold at this point?

gulch

Edited May 10, 2009 by galtgulch

[galtgulch]

www.campaignforliberty.com 11May 5AM 151886, 5PM 151978, 7PM 152004

So do you think that Au or Ag would be the better stuff to hoard?

gulch

Edited May 11, 2009 by galtgulch