Musings After Midnight--An ominous threshold was crossed and no one noticed

Good evening, my dear readers, and welcome to another session of Musings After Midnight. I put together these fireside chats on sleepless nights but sometimes post them during the day for your convenience.

So, pull up a chair, have some tea or coffee, and relax. I keep Earl Gray here, along with various brews of the java beans -- always a must for me when I do these things.

The tea and the coffee always seem to make more palatable some of the painful truths I must discuss here.

So, let's dive in and consider the latest.

Several economists have indicated that an ominous threshold was crossed last week, with little fanfare or publicity. In fact, nobody, and I mean nobody noticed. That fact is most unfortunate, given its earth shattering nature. But the fact that it was ignored is now no shocker considering who it is running the government, and who it is charged with the supposed task of being government watchdogs (the mainstream media).

With the failure of the Justice Department of the Obama Administration to hold accountable Jon Corzine of MF Global, and other mega-banks and brokerage firms that broke the law, every single one of us is in danger of having everything we possess stolen with no recourse. The rule of law just went out the window.

Here is the sobering analysis:

"The problem with this decision is rather simple -- it eviscerates the general principle in the law that one cannot grant a thing one does not have.
This is why, if you buy a stolen car, you don't get to keep it when the theft is discovered.  You can't be prosecuted for unwittingly buying the car, but the seller has no title to the vehicle to convey, and therefore he conveyed nothing.  You thus have no claim to the property.

"Back in 2009 you all sat for this very same sort of violation, because it didn't risk being your money.  I'm speaking of the GM and Chrysler bailouts in which senior bondholders, who had a contractual claim on the assets of the company and thus literally owned the property (as a secured interest) were boned for the benefit of the UAW -- that is, their property was stolen.

"The courts allowed it.

"Now it has happened here with Sentinel, but this is not news; it is merely continuation of what began, and what you, the people, allowed to occur without retribution or recompense.

"This morning we find that it's likely that those who were involved in the theft of customer funds at MF Global, including Corzine himself, are likely to not face criminal charges.  And why not?  That's just an extension of the Sentinel decision.
The problem, of course, is that once you ignore property rights then you've ignored them.  It's the principle of the thing more than the details; whether you get personally boned with "this" particular violation isn't the question.  Rather, the question is this, for each and every one of you:

"'What assurance do you have that any property of yours that is not in your personal, immediate and physical possession, is actually protected by the rule of law if someone attempts to steal it?'

"The answer?  You have none.

"Let that sink in folks, because it does not just apply to futures traders, to people daytrading stocks, or even to people with 401ks and IRAs.  It applies to each and every one of us with a bank account.

"That's right folks -- it applies to anyone with any property held by any person other than you, in your personal control within reach of your fingers.  If it is stolen by a wealthy and powerful person they will be found to have conveyed it "within the law" and you will not get your property back."

Those are the words of market guru Karl Denninger.

Thus, the lawless thuggery only continues. The very same scenario that existed prior to the collapse of 2008 still exists now. No one has been called to accountability, mainly due to the fact that the perpetrators were in bed with the federal government, and they still are. Most of Obama's top advisers in the economic realm came from none other than Goldman-Sachs.

It is thus very difficult to believe that a mere change in the White House will lead to real reforms. Too many other factors are in place that would mean Romney and Ryan are essentially hamstrung on day one. Yes, there are some other things they can do--cut spending, end ObamaCare, reform the tax code, etc., etc., but unless Congress gets involved to stop the fascist-styled collaboration between government and large corporations, then the thuggery will only continue, and citizens will only continue to be robbed of their wealth.

What this means is that without drastic and painful action on the part of the next administration and Congress, we may experience complete economic collapse anyway, no matter who is in government. In other words, if what Denninger is saying above is true, and I believe it is, then the "ship has already sailed out of the port," that is, it is too late to avoid a catastrophic economic crisis of historic proportions.

This means your bank accounts are vulnerable. Your retirement and pension accounts are vulnerable. Your investments, even "secured" ones, are vulnerable. Everything except what you can hold in your hand and have in your physical possession is subject to confiscation and/or outright robbery.  

I am optimistic enough, however, to hang on to a modicum of hope. If Romney will allow Ron Paul to go to work on the Treasury, the Federal Reserve, and the economy in general, there is chance we can get it together and avoid catastrophe.

The thing I like about Ron Paul's view of the debt is that when asked about the gargantuan amount of money the U.S. has borrow from China, he stated, "Just don't pay it back. Ever."

Here's why that may be a prudent option. China cheats the U.S. anyway in trade policy. Their goods are produced with slave labor at a tiny fraction of the labor costs of the U.S. and free nations. Yet we have allowed them to dictate trade terms. It would seem to be an even trade to simply tell them, "You won't be getting your money back. That is your payment to us for being allowed to sell your goods here at such a low cost and using labor practices that are deplorable."

And then, from there we must tell the ChiComs that from now on there will be "fair trade" that is mutually beneficial and where one nation doesn't have the upper hand over the other. The so-called "free trade" we have practiced with the Chinese in the past is actually "dirty trade." And we as Americans have gotten the shaft. That should end NOW.

Now, on to the political realm.

A reader asked me recently how I can hint that I would support the Romney-Ryan ticket after they tried to pull a fast one at the RNC concerning the rules. I answered that my main goal at this point is to get rid of Barack Obama. And the best way to do that, unfortunately, is to support Romney.

I have never liked Mitt Romney. I did not like his father, either. But this is the hand we have been dealt, and we must play that hand.

Earlier in another episode of Musings After Midnight I was very candid with you about my dilemma about the election, given that it had become clear to me three months ago that Romney would get the Republican nomination. I had worked VERY hard to prevent him from getting it. I even considered a third party, or writing in a candidate. But as I stated at the time it appeared to me that no one on the horizon had a chance of getting enough votes to make a dent in the process, except to siphon enough votes away from the Republican to insure Obama's reelection.

That I CANNOT tolerate.

I still believe that the GOP needs to be taught a hard lesson. RINOS must go. I have had it with the "moderate" eastern establishment leadership machine in the GOP. I have no respect for Dick Lugar, John McCain, Lindsay Graham, Susan Collins, Olympia Snowe, Lisa Murkowski, Scott Brown, and several others. I realize some of these are retiring, but you see my point. This crowd will attempt to thwart conservatives at every turn. They must be taught a lesson.

But not this year.

This year too much is at stake to teach the GOP a lesson by throwing the election to Democrats. If we do that, we are essentially insuring civil war in 2013 and sealing the permanent demise of the Republic. I am convinced that another term of Barack Obama will seal our fate, insuring civil war and the destruction of this nation as we know it.

I will not be part of any movement that makes it more likely that Obama will be reelected. And at present it is clear that this is precisely what will happen if I advance a cause and candidacy that will do nothing but pull votes away from Romney-Ryan.

My view is that we must get rid of Obama first. Then, later we go to work getting rid of the RINOS, maybe in 2016 or 2020.

The next thing I wish to discuss with you are the conspiracy theories.

In my last installment of Musings After Midnight I told you that I would not allow this site to be used as a forum to rehash the totally discredited fantasies that 9/11 was an inside job or that the OKC bombing was the work of Muslim terrorists rather than Timothy McVeigh. Real conspiracies are serious enough without diluting the attention they deserve by focusing on wild charges that have no basis in fact.

But, as I knew would happen, several sent their diatribes anyway, after I had already stated they would not be posted.

Despite the insults some of you sent my way, I can assure you I have thoroughly considered every single one of the conspiracy theories that you claimed I knew nothing about. Each of them, in my mind, has been thoroughly debunked. That includes theories on 9/11, OKC, the Bilderberg Group, the Rothschild family, and my favorite deranged fiction of all--Israel and the Jews are behind everything evil in the world.

Such things are the convoluted, psychotic rantings of lunatics.

But what I DID discover was that the Council on Foreign Relations represents a conspiracy that is very real and very dangerous.

Thus, I am not anti-conspiracy theory. But I want to be sure that the conspiracy is very real and credible before I go off half cocked on some fishing expedition.

If you want to discover real danger by a real conspiracy, even to the point of holding the U.S. government hostage, look no further than the CFR. Do your research. And don't look at just who belongs to it. Some are there who have no power. Rather, look at who sits on CFR's most powerful committees. There you will find the power brokers. And remember, some very important people are not there anymore but lurk in the background. Some whose names are not on the current roster are no less involved than they were when they were formal members.

And that, my friends, should be enough for you to chew on for a while. So, until next time, keep the faith.