Fed’s Ivory Tower Just Got Smaller

Photo Credit: fbobolasToday’s weaker than expected GDP report shows just how out of touch most professional economists remain with respect to the fundamental weakness of the US economy. After more than four years of nearly never ending monetary stimulus and more than $5 trillion worth of new federal debt, the economy remains stuck in a serious recession.

The report shows that federal stimulus and deficit spending can’t create sustainable economic growth.

Although the tepid data shocked many economists, I was not surprised. I believe zero growth is consistent with the state of the real economy. The stronger growth numbers that we saw in the second half of 2012 were likely inflated due to pre-election hopes.

The disappointing economic data takes on an even gloomier tone when considered against factors that will make recovery that much more difficult. Interest rates are making their first strong upward move in nine months. Yields on 10 year Treasury bonds are up 60 basis points since the end of July, and are over 2.00% for the first time since April 2012.

The dollar is falling against most currencies except the Japanese yen (it is down more than 11% against the Euro since July), and energy prices are rising (crude oil is approaching $100 per barrel). Although these conditions are not promising, the stock market seems blissfully out of touch. As of yesterday, the S&P 500 had advanced for 8 days in a row, its longest daily winning streak in eight years.

Read more on this story HERE.

Video: NRA President Says Anti-Gun Advocates Threatened to Kill Son, Daughter

Photo Credit: Gage SkidmoreIn an interview with Ginni Thomas of The Daily Caller, NRA President David Keene called out President Obama and his allies for their hypocrisy relating to civil discourse.

Civility is clearly a one-way street. Conservatives are expected to act in concert with the cannons of common decency, but liberal are constrained by no such law.

Keene went on to tell how an advocate of gun control had threatened the life of his son and daughter upon finding out who their father was.

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9/11 Families Dub Efforts to Boycott ‘Zero Dark Thirty’ ‘McCarthy’-Like

Photo Credit: doctorseroneWe’ve already heard from film critics, actors and politicians regarding Zero Dark Thirty, the film depicting the successful hunt for Osama bin Laden.

A trio of senators scorched the film for allegedly showing enhanced interrogation tactics helped nab bin Laden. Far-left actors like Ed Asner pounced on this theme, vowing to boycott the film’s Oscar chances.

Now, families who lost loved ones on 9/11 are raising their voices on the issue. And boy are they angry.

Read more on this story HERE.

Video: Chuck in the Muck – Hagel Skewered By Senator Cruz for Calling US “World’s Bully” on Al Jazeera Network

Former Sen. Chuck Hagel on Thursday faced a barrage of criticism about his fitness to be the next defense secretary, including his agreement with a controversial statement that the United States is the “world’s bully.”

President Barack Obama’s nominee to be defense secretary ran into sharp opposition from Republicans on the Senate Armed Services Committee who questioned Hagel on an array of controversial policies.

Senators questioned Hagel about his opposition to tough U.S. policies toward Iran, his calling the successful U.S. military surge in Iraq a “blunder,” and his support for sharp unilateral cuts in U.S. nuclear forces.

Hagel also backtracked on past statements that a “Jewish lobby” was intimidating the Senate into adopting “dumb” policies.

Hagel maintained a calm demeanor but at several points in the hearing appeared unprepared for some questions during seven hours of testimony.

Read more from this story HERE.

Video: Rick Santelli Says ‘We’ve Become Europe’

Rick Santelli made a stunning observation Wednesday about the shocking report that the economy actually shrunk in the fourth quarter last year.

“We are now Europe,” he declared on CNBC’s Squawk Box.

“Hey Joe,” Santelli said, “when you act like Europe, you get growth rates like Europe, and our discussions with economists sounds like we’re in Europe. They have the same discussions constantly.”

Read more from this story HERE.

Report Suggests Solyndra-Like Problems in Federal Nuclear Power Loan Guarantee

The Obama administration’s approval of a federal loan guarantee for the construction of two Georgia nuclear reactors was met with applause from across the political spectrum, but new analysis reveals potential Solyndra-like problems facing the project.

“E-mails indicate periodic involvement by the Secretary of Energy on loans and loan terms, and by the White House and top levels of Department of the Treasury on other issues related to the Vogtle Project,” reads the analysis by Earth Track and Synapse Energy Economics, which was conducted on behalf of the Southern Alliance for Clean Energy and Friends of the Earth.

Earth Track and Synapse Energy Economics analyzed hundreds of documents obtained through multiple Freedom of Information Act requests.

They shed light on potential problems with the loan guarantee process for the Vogtle nuclear reactors in Georgia, including indications of political involvement from the Obama administration in key financial decisions.

“We are not alleging … any improper conduct. However, it is clear that top officials are engaged and interested in trying to make the Vogtle loan guarantee work,” Max Chang, a report author and associate at Synapse Energy Economics, told reporters in a teleconference.

Read more from this story HERE.

Obama’s America: Disarm the Public and Put Assault Weapons in the Hands of DHS Agents

Photo Credit: DonkeyHotey In yet another huge blow to the rhetoric and narrative of the Obama administration and its desire to disarm the American public, a DHS bid has been uncovered showing that the Department of Homeland Security recently put out an offer to purchase 7,000 full-auto “assault weapons” to be used domestically, inside the USA.

Keep in mind that President Obama is on the record saying, “AK-47s belong in the hands of soldiers, not in the hands of criminals; that they belong on the battlefield of war, not on the streets of our cities.”

But it seems he really means they don’t belong on the streets of our cities unless they are in the hands of homeland security enforcers, in which case they can be FULL-AUTO assault weapons.

The DHS bid for 7,000 full-auto assault weapons is found by clicking HERE

The juiciest part of this bid is the use of the phrase “Personal Defense Weapons” to describe the full-auto AR-15s being purchased by DHS.

Read more from this story HERE.

Obama Recovery: US GDP Contracts in Fourth Quarter of 2012

The U.S. economy posted a stunning drop of 0.1 percent in the fourth quarter, defying expectations for slow growth and possibly providing incentive for more Federal Reserve stimulus.

The economy shrank from October through December for the first time since the recession ended, hurt by the biggest cut in defense spending in 40 years, fewer exports and sluggish growth in company stockpiles.

The Commerce Department said Wednesday that the economy contracted at an annual rate of 0.1 percent in the fourth quarter. That’s a sharp slowdown from the 3.1 percent growth rate in the July-September quarter.

The surprise contraction could raise fears about the economy’s ability to handle tax increases that took effect in January and looming spending cuts.

Still, the weakness may be because of one-time factors. Government spending cuts and slower inventory growth subtracted a total of 2.6 percentage points from growth.

Read more from this story HERE.

Al Qaeda Pledges ‘Shocking’ Attack on US

A jihadist website posted a new threat by al Qaeda this week that promises to conduct “shocking” attacks on the United States and the West.

The posting appeared on the Ansar al Mujahidin network Sunday and carried the headline, “Map of al Qaeda and its future strikes.”

The message, in Arabic, asks: “Where will the next strike by al Qaeda be?” A translation was obtained by Inside the Ring.

“The answer for it, in short: The coming strikes by al Qaeda, with God’s Might, will be in the heart of the land of nonbelief, America, and in France, Denmark, other countries in Europe, in the countries that helped and are helping France, and in other places that shall be named by al Qaeda at other times,” the threat states.

The attacks will be “strong, serious, alarming, earth-shattering, shocking and terrifying.”

Read more from this story HERE.

Rubio Sellout to Establishment

A friend of mine, Republican consultant Matt Mackowiak, tweeted on Tuesday night that if immigration reform goes through Congress this year “it will almost solely be due to” Florida Senator Marco Rubio.

To which I replied: “you break it, you buy it.”

There are two different conservative narratives about Rubio’s dalliance with John McAmnesty and the other bi-partisan group of senators on board with his plan. The first is the glowing words coming from Sean Hannity, Mark Levin, and now Rush Limbaugh. Just one day after Limbaugh made national news by trashing Rubio’s plan, he praised the senator effusively when Rubio appeared on his show to defend himself. That’s a big win for Rubio. Going on offense to defend himself is a much better approach to this scalding hot issue than Monday’s photo op with McAmnesty, Charles “we don’t need no stinking Constitution” Schumer, and Bob “where the underage hookers are” Menendez that I was critical of in my latest Business Insider column.

But while winning the support of three of the biggest name conservatives when it comes to the air war is important, perhaps even more crucial is winning the support of organizations that actually put conservative boots on the ground. And Rubio still has a ways to go where that’s concerned.

For example, Bryan Fischer of the American Family Association, one of the largest grassroots conservative organizations in the country, said that Rubio has essentially “kneecapped himself for 2016” (referencing the senator’s presumed presidential ambitions). In a column titled “Rubio Amnesty Plan Way Worse than I Thought,” AFA’s policy director referred to Rubio’s plan “as the same old bait and switch” conservatives have fallen for in the past.

Fischer adds “the solution Rubio is offering is the same one that created the mess we’re trying to clean up right now. It’s impossible not to think of the reigning definition of insanity as you listen to Republicans gamely expect magical results to come from ‘solutions’ that have never worked in the past and will never work in the future.”

Fischer points out that it’s impossible to deal with the issue of illegal immigration until you first realize that “illegals are not here for the citizenship, they are here for the benefits. The illegals who come here from Mexico come from a socialist state, where they are accustomed to thinking that it’s the government’s job to hand out goodies, and since America is richer than Mexico, they can get more goodies here, so here they come. They could care less about citizenship.”

Erick Erickson of Red State, who just signed on to become a Fox News contributor, says “I don’t like Marco Rubio’s plan.” What’s particular interesting about that is Erickson admits immigration is one issue where he leans to the left of most of his readers, and even he says “I think this plan is warmed over McCain-Kennedy and will do nothing to solve the problem.”

Specifically, Erickson says the Rubio plan “is clearly written by a group of men who seemingly love government, but do not love free markets, small businesses, or individuals. It is a plan based on faith in government, not free enterprise or the American people. It does nothing to actually solve our immigration problems, but hides behind the construct of ‘comprehensive’ reform. Along the way, it potentially adds more people to already overwhelmed entitlement programs, but then that too is another kicked can.”

It appears to me the GOP is split into three, evenly divided camps on the issue. To be the GOP presidential nominee in 2016, Rubio needs to win two out of three.

The first camp is comprised of party establishment people and libertarians like Judge Andrew Napolitano. Those two camps want Rubio’s plan to happen for different reasons. Pandering is in the bloodstream of the feckless Republican Party establishment. On the other hand, Napolitano and other libertarians are philosophically for open borders. Remember when Ron Paul said during the last presidential campaign he was against a border fence because he’s more concerned about a government trying to keep people from getting out more than letting people in? Although Rubio has won over these people this is not an issue that drives them to the polls in a primary.

This next third does get out and vote on this issue, and this third is against anything that even sniffs of amnesty. As Congressman Steve King said on Twitter Monday morning, they don’t want to “pardon lawbreakers.” They not only think mass deportation is feasible, they think it’s a must. If getting something passed that a leftist President of the United States was willing to sign into law is Rubio’s goal, then he was never going to win over these people no matter how he approached the issue from there.

The jury is still out on the third and final group, and this is the group Rubio cannot afford to lose if he has any hopes of being the 2016 nominee. These people are mostly principled conservatives who believe in the rule of law, as well as national security/sovereignty. At the same time, they either don’t think mass deportations are feasible and/or moral given how entrenched some of the families in question are. They’re also concerned about the GOP’s much-discussed Hispanic problem, but they also vehemently opposed McCain-Kennedy in 2007. Therefore, the main reason these people would be willing to go along with Rubio’s risky gambit here is their belief in Rubio himself.

This is why I’ve been following how he’s approaching the issue so closely, because for this third and decisive group the issue isn’t the issue at this point. The issue is Rubio, and the question is do you really believe he’s the transformative leader you’ve been told that he is, or are we falling yet again for another amnesty banana in the tailpipe?

Put it all together and it’s clear this will either make Rubio a future President of the United States, or yet another tombstone in the graveyard of lost conservatives hoodwinked by the beltway culture.
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