The EU confederation crisis is in the news a great deal with interests me because just three years ago, the euro was the strongest currency on earth and Europeans were celebrating being the collective #1 economy on earth. It still is! But is in collapse exactly for the same reasons the US and Japan are also collapsing: the credit bubble coupled with wild derivative trading on Wall Street and London as well as the bank havens like Switzerland, etc. This, in turn, is pulling down governments. Japan reels from the effects with no Prime Minister lasting even a few months, now.
First, a funky news story from England which is supposedly one of the most sophisticated banking/stockmarket centers on earth. Seems that with this reputation, the average British reporter is clueless? Here is one hilarious story showing some serious naivety: Trader Alessio Rastani To BBC: ‘Governments Don’t Rule The World, Goldman Sachs Rules The World’:
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But the crash will be good news for traders, Rastani told the stunned BBC anchors. “For most traders we don’t really care about having a fixed economy, having a fixed situation, our job is to make money from it,” he said. “Personally, I’ve been dreaming of this moment for three years. I go to bed every night and I dream of another recession. When the market crashes… if you know what to do, if you have the right plan set up, you can make a lot of money from this.”
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Good lord! I thought everyone who has the slightest ability to figure out the obvious would have noticed that when things go bad, speculators usually exploit this and get richer except when governments are overthrown in revolutions and coups and their money and assets are confiscated. The ‘stunned’ BBC drones probably were surprised someone would tell the truth.
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The fact of the matter is, England and the US are both run by psychopaths who get richer and richer if they drive the governments into bankruptcy while manipulating markets to make themselves richer! They spend billions of dollars in bribes and schemes with anyone the voters try to put into power in order to corrupt these politicians and then use them to make the rich, richer. These speculators who run America and England have nearly totally destroyed both.
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They did this by insuring there is no way the systems can run properly. Tax revenues will never, ever balance due to them demanding higher tax cuts every time things improve. The ‘right plan’ is to prevent these governments from ever being solvent while collecting the debts and using this as leverage to control the government and direct it towards doing things that benefit only the speculators who have infinite greed.
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So, the main ‘plan’ isn’t some market strategy. It is simple: make rules and run schemes that are not stopped by regulators that will make money appear magically while DOING NOTHING USEFUL. See, the entire Derivatives Beast is all about useless machinations designed to cover up the fact, the speculators no longer are using real capital when making deals. This is what should be illegal, short selling, is legalized. They paid the politicians to not regulate short sales.
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Speculating in commodity futures also is run the same dishonest way: no money down, place your bets for free! No capital involved. Just future games for fun. And only recently did the governments dare to stop this scam due to hyperinflation in commodities that were causing rising revolts of the peasants who are not speculators.
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In the German news is this story: Going Rogue: Share Traders More Reckless Than Psychopaths, Study Shows – SPIEGEL ONLINE
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According to a new study at the University of St. Gallen seen by SPIEGEL, one contributing factor may be that stockbrokers’ behavior is more reckless and manipulative than that of psychopaths…Particularly shocking for Noll was the fact that the bankers weren’t aiming for higher winnings than their comparison group. Instead they were more interested in achieving a competitive advantage. Instead of taking a sober and businesslike approach to reaching the highest profit, “it was most important to the traders to get more than their opponents,” Noll explained. “And they spent a lot of energy trying to damage their opponents.”
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Using a metaphor to describe the behavior, Noll said the stockbrokers behaved as though their neighbor had the same car, “and they took after it with a baseball bat so they could look better themselves.”
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The researchers were unable to explain this penchant for destruction, they said.
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A common mistake of many people trying to analyze speculative bankers and their employees is to assume all of them are buddies and conspire together. They DO conspire…to rig up rules and wreck regulations so they can pretty much do whatever pops into their gnomish brains. They want no controls or things that slow down their ‘deals’ because, just like three card Monty, speed of hand movements is how they fool people and double deal everyone.
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Things are as fast as the speed of light, nay, faster. For they now anticipate things and use computers to automatically do this and this irritating ‘flickering’ of stocks has undermined world stock markets and constantly threatens the entire system with collapse as we have seen several times recently. And are extremely lucrative with zero real personal labor or thinking involved, once it starts, it runs basically on its own.
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I, personally, know computer programmers who designed this system for the psychopaths who wanted to exploit it. It is not the fault of the programmers, they are computer geeks who want money. The psychopaths using them, on the other hand, know that their system is fake wealth and is also dangerous and stupid but they can’t resist using it because it makes money with no sweat or employees involved on the floor of the exchanges anymore. It is a labor saving scheme but a dangerous and stupid one.
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Since we are discussing psychopaths, what they all do is also pass hot potatoes around and hope to palm off onto each other, bad deals. They lie to each other, steal each other’s ideas and employees, the betray each other and they will deliberately destroy entire industries if this means a hated rival will go bankrupt. This was true very much so during the Robber Baron years which is, fatefully, identical to this cycle. And that ended in WWI and worker uprisings especially the communist takeover of Russia.
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Regulating things to prevent a host of demented, evil robber barons from wrecking everything they build is what governments must do. And have failed. The reforms set into motion during the Robber Baron years before WWI were short circuited by the top robber barons in a secret deal to create the Federal Reserve. It was supposed to protect the value of the dollar. It failed, utterly. Inflation swallows raises in the Washington area – The Washington Post
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For the first time since 1979, the increase in salaries in the Washington area was less than the rate of inflation. Wages as a whole for metropolitan Washington rose just 0.04 percent in 2011, a new salary survey found. The rate of inflation in the region shot up to 4.1 percent in July (the latest month for which the figure is available) compared to a year ago.
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So, inflation is over 4%? Inflation in fuel and food in the last 10 years has been well over 100%. Things we need to survive now cost literally more than twice as much compared to 2001. But Social Security has gone up less than 20%. This is one of many reasons why the economy is collapsing. People are poorer, thanks to inflation. The hyper-psycho gnomes of Wall Street saw their incomes grow by much more than 150% in the same decade so they are happy campers indeed. They are richer and we are poorer and this is why there are demonstrators being beaten mercilessly by brutal cops protecting billionaires this very week.
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The bail out of Europe grows ever dearer: The €2 trillion fund to save the euro
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This was bolstered (last year) by $60bn (£38.9bn) from the European Financial Stabilisation Mechanism and $250bn from the International Monetary Fund (IMF).
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Wind the clock forward and the sums talked about at the IMF in Washington over the weekend were almost three times that amount. After months of prevarication and political buck-passing European leaders have woken up to the fact that more money, action and structural change is required if the euro is to survive.
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The traders said, Goldman Sachs is OK with all of this because they are shorting Europe, basically, and placing bets on defaults being bailed out by governments…some of which they totally control. Geithner is Goldman Sachs, after all, and he is supposedly ‘fixing’ Europe but he isn’t. He is fixing it so that Goldman Sachs gets richer and Germany loses all of its sovereign wealth.
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Now, the US and NATO bombed Libya to oblivion when Libya was one of the top 20 sovereign wealth nations with money parked in US and UK and EU banks. These have now seized the money and are using it as personal capital. So it will be with Germany, the world’s #2 sovereign wealth nation: all of that will be transferred to the central banks and they will, in turn, pass it on to international speculators and lenders. Who will then use this as capital assets.
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Germany will be much poorer and in a worse trade position and offshore bankers will be even richer so there is very serious German turmoil over EU bail-outs as top judge calls for referendum – Telegraph
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“The sovereignty of the German state is inviolate and anchored in perpetuity by basic law. It may not be abandoned by the legislature (even with its powers to amend the constitution),” he said.
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“There is little leeway left for giving up core powers to the EU. If one wants to go beyond this limit – which might be politically legitimate and desirable – then Germany must give itself a new constitution. A referendum would be necessary. This cannot be done without the people,” he told newspaper Frankfurter Allgemeine.
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Unlike most ‘economic discussion’ sites online, I seem nearly alone, talking about sovereignty and what this means. The US has nearly totally surrendered its sovereignty to Israel, for example. Israel wields ever greater power over our government via AIPAC’s bribes. German sovereignty isn’t some toy or thing to hand off to aliens for no reason. There is a fierce obligation to protect the sovereignty of the state and this emphatically includes repelling invaders, something Libya is unable to do.
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This is why disarming oneself while relying on alien allies to do all the fighting to protect one’s sovereignty is foolish. Both Japan and Germany fell into this trap, hoping the US would protect their sovereignty. Well, this is obviously not working. The Iceland people discovered, the more entangled with foreigners they became, the less power they had for themselves. They pulled back from the EU at the last minute and barely survived. Poverty certainly grew much worse as the kroner fell 80% in value.
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Two countries that are hyper vigilant about sovereignty are these guys, the ‘enemies’ of NATO: Russia, China and Iran are considering a Joint Missile Shield directed against the US and NATO | Pakalert Press
The report, which was published in the Iranian daily newspaper Kayhan on Sunday, said that the sources cited two reasons why serious consultations have been held on the initiative.
First, all three states have come to the conclusion that U.S. officials’ assertion that their concern over the alleged missile and nuclear capabilities of Iran and North Korea is the reason for the decision to establish a NATO missile defense shield is just a pretext and the true objective of the shield is to threaten Russia and China..
In addition, now that the proposal to establish an early warning radar system in southeast Turkey, which is one component of the NATO missile defense shield, appears to be a done deal, the U.S. is now planning to establish other components of the new system in South Korea and Taiwan, which clearly shows that Washington is using the alleged threat from Iran and North Korea as a pretext to target China and Russia.
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The US continues, despite being royally wrecked by hyperactive psychopathic gnomes, is spending a fortune trying to surround Russia and China with missile bases, assassin drones and radar systems. This is all in preparation for WWIII, I am assuming. Turkey is allowing a US monitoring station but only when the US promised to give them their own assassin missile drone robots for killing pesky people. And, if we imagine for one minute, that Russia and China can’t copy us in this matter, that is pure nuts. They can and they will.
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Our entire planet will now see not a one-sided assassin robot war, but rather, a multi-sided war of the killer robots all of which will be programmed by computers to automatically hunt down and murder a host of pesky people. This is why this amoral war must end and the President should stop listening to crazy psychopathic gnomes and military orcs and instead, become open, honorable and above all, CAREFUL, not crazy.
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Talking about crazy, in times of contraction, all sovereign nations MUST protect their own people, not destroy them. The citizens of England, like in the US, have been forced to compete with cheaper foreign labor in all job markets and recently in England, 90% of all new jobs this last year went to aliens. Finally, Labour admits ‘got it wrong’ on immigration, says Ed Miliband – Telegraph
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The Labour leader insisted that the party had not set out to mislead the public over immigration but that the party’s policies had “effects on people right up and down the country” and that not enough was done to protect British workers. Mr Miliband made the admission in an interview on the first day of Labour’s annual conference in Liverpool during which the party is under pressure to admit to mistakes made during its time in Government…
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…In another interview, he said: “I think we did introduce, we did allow the entry of Poland into the free movement of labour too quickly, and that clearly had effects on people right up and down the country. We’ve clearly got to learn those lessons for the future when it comes to future accession…if you have a more open economy in Europe, you’ve got to put in the right protection for people, for workers.”
The previous Labour Government allowed virtually unchecked immigration from eastern Europe to Britain.
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Millibrand is the son of immigrants from Poland and escapees of the Nazi madness. Yes, Hitler was pure evil. He indulged in ethnic cleansing, killing citizens of his own country in his madness. This is utterly different from real ‘sovereignty’. Everyone who is a citizen is a part of the sovereign nation and should be protected by the same laws and in general, protected. Opening the borders to aliens while there are few or no new jobs is anti-sovereign.
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The liberals have hurt themselves nearly fatally in the US and UK by supporting legal and illegal immigrants over native citizens. Perry’s run for the White House has been basically terminated due to him supporting illegal alien children getting state scholarships worth $10,000 each while students who are Americans from say, Oklahoma, have to pay full tuition if they go to school in Texas. As one person pointed out, this punishes Americans and encourages illegal aliens to cross over for a free education.
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This is HIGHLY unpopular especially when Congress is talking about cutting services to Americans. Very highly unpopular and it is an issue that will sink Obama, too, in the long run. It has to be faced. All nations much protect and promote their citizens, first, no ifs, ands or buts about this. Sovereignty is valuable. It is POWER and the people of Germany are now going to demand the right to exercise their own sovereign rights in the matter of bailing out all of Europe.
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The cookie is crumbling.
If you read history you know there is no greater calamity than for a nation to have corrupt leaders. That is one reason I don’t think China has any specific 50 year plan to specifically sink the US. There is no need for one. With leaders such as Dubya Bush and Obama, or any one of the personalities lined up by the GOP or Dems to become the next President of the US failure is guaranteed.
Read Sun Tzu or Zhuge Liang or Chinese commentary on the Warring States period (475 BC to 221 BC it ended with the first great Chinese dynasty, the one which with gave China it’s Chinese name.) The Chinese have been aware of the dynamics of conflict and the importance of psychology since the western dawn of time.
Finland has one great example of a real leader. Mannerheim managed to see Finland through decades of turmoil and danger to national sovereignty. He was the ‘go to’ personality whenever Finland was in danger. He had personal ambition but no extreme political agenda. He managed to stay outside of extreme political movements in a time rife with them. He always managed to have a balanced view and preserve his independence and personal integrity. He was a military man more than a politician but he was what Finland needed to survive Russian communism and German Nazism and make, and preserve, Finland independent in a genuine sense and not a pawn for a superpower. He never sold himself out, and thus was rewarded with genuine respect and admiration and also financially. Mannerheim understood ‘sovereignty’ on both a personal and national level.
http://www.kansallisbiografia.fi/english/?id=625
And that is why Elaine’s cave is so dangerous. If you go in there and take or accept any of it’s ‘riches’ – you sell yourself out.
The West is ripe with ‘leaders’ and figures in the shadows who have grabbed everything in sight within the Cave. People like Geithner is pushing such riches hard on those in Europe still hesitant (like Merkel). Merkel faces a real decision here. She has to see that she cannot fall for the easy temptation here. She, and Germany, will lose everything (again). If Merkel choses to go with the bail out she will fall into the extremism trap. The German people seem to be aware of this danger. Hope they can stop Germany from going over the cliff.
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ELAINE: Back when the 50 year plan was cooked up, Reagan became president. The Chinese though their spies, learned that Reagan sold his services to the Japanese. They then were assisted in entering the US auto markets which they now dominate here today. In return, Reagan was given quite a few million dollars for ONE SPEECH the week he retired from his office. He was quite senile when he made the speech, by the way.
The Chinese were fascinated by this information. They assumed Congress would literally have him killed. Instead, they all joined in the rush to sell their services to foreigners! So, the Chinese correctly reasoned, they could buy even Presidents and trust me, they OWNED Bush Sr. So did the Saudis.
Also the Goldman Sachs people have set a really nasty trap for Europe here with their Cave loans to Greece. If Germany bails Greece out, GS will get an inroad into Germany’s savings, much like they did with the US.
If Germany refuses and the EU falls apart, the € will diminish, and the $ will have one less threat to it’s world reserve currency status.
With “friends” like that, who needs enemies?
The American people and us Europeans will have to put an end to Wall Street and London City “banking” (read financial exploitation). We will never have a real economy again until we do.
«See, the entire Derivatives Beast is all about useless machinations designed to cover up the fact, the speculators no longer are using real capital when making deals.»
EMS, thats close but not quite. All the mad schemes are endless reinventions of wildcat banking.
The USA (and other countries) used to allow any bank to issue their own bank notes, and banker really really loved that. That was called “wildcat banking” as you no doubt know.
The whole Derivatives Beast is a way to have again wildcat banking. Wildcat banking is what bankers periodically reinvent, and every time, BOOOOOM! 🙂
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ELAINE: You are totally correct here. 🙂
«him supporting illegal alien children getting state scholarships worth $10,000 each while students who are Americans from say, Oklahoma, have to pay full tuition if they go to school in Texas. As one person pointed out, this punishes Americans and encourages illegal aliens to cross over for a free education.»
That is an appalling set of lies.
Residents of Texas, whether native, legal immigrant, or not, pay Texas fees and taxes that fund Texas schools. Oklahoma residents don’t.
It has nothing to do with citizenship, it has everything to do with residence and paying local taxes. The children of illegal immigrants get their schooling paid for by the local taxes and local fees paid by their parents.
As a rule people like Perry want more illegal immigrants because they pay far more local taxes (especially sales tax) than the worth of the services they consume (most immigrants are young and healthy and childless), and they bring down wages, and they cannot vote in elections, all things that make richer the upper class voters that support Perry.
The Perry plan is to have a plantation economy, with a large mass of illegal immigrants laboring hard and paying a lot of local taxes without having the right to vote, and with every local service charging fees, while making a lot of money for a thin layer of rich property owners.
It is not to subsidize immigrants; it is to exploit them as hard as possible.
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ELAINE: No, it is a citizenship issue. Citizens voted to have certain services for their own children. When people illegally cross the borders to tap into these services, it destroys the entire community. And don’t forget, all of these taxpaying (many evade paying taxes as much as possible!) illegal aliens are DISPLACING citizens from jobs. Many illegals went into construction jobs, for example, and worked off the books (no taxes there!).
“Speculating in commodity futures also is run the same dishonest way: no money down, place your bets for free! No capital involved.”
Except in the precious metals market where margins hikes are an almost weekly occurrence at the COMEX.
The thought has occurred to me that the percentage of psychopaths in the current world population may be higher than the saner percentage can deal with at this time and thus destruction of the existing system is nearly guarranteed.
In the distant past, it was quite difficult for one or two individuals to bring down their entire tribe through their destructive behavior. Now, it is quite easy, and the victims will most likely never even know the names of those responsible.
‘It is POWER and the people of Germany are now going to demand the right to exercise their own sovereign rights in the matter of bailing out all of Europe.’
I don’t think so. The sow is in a world of her own, especially after her home state, Pommerania, handed her ass to her last month. Reminds me of the Millwall Lions from the good old days. ‘No one likes us and we don’t give a shit’ was the chant of the supporters in the stand. If you watch english league football and can’t figure out what the supporters are singing, there is one translation for you. She will don the mail, the distaff and the spindle, sing arias at them, until the browbeaten CDU will capitulate.
This is a lengthy read, especially including the two links, but it’s worthwhile for everyone to know how many psychopaths are out there, and how difficult it is to deal with the harmful effects of them.
http://jessescrossroadscafe.blogspot.com/2011/09/psychopaths-among-us.html
Hyperinflation in Weimar Germany was caused by foreign speculators shorting the mark.
The just privatized Reichsbank issued zillions of marks out of thin air, and authorized other private banks to issue more.
These marks were shorted into oblivion.
The crooked bankers and family friends bought gold, land, and collapsed the mark, leaving the German middle-class with tons of worthless paper.
Well, my friends, the crooked bankers are back in action. Beware!
Economic-undertow has an excellent post on the rigged game in commodities; Steve From Virginia provides graph after graph showing commodities falling off a cliff.
http://www.economic-undertow.com/2011/09/25/chart-for-charts-sake/#comments.
He remarks that it costs the exchanges nothing to write long contracts for any commodity. As long as there are buyers, the exchange itself takes the default short position at no cost to itself. Because of the exchange’s built-in, de facto short position, shorts are vastly understated in the game. Easy to talk “growth growth growth” and publicize worldwide bubbles to attract the longs. When there are no more buyers at a bid-up price, the turnabout is abrupt leaving no time to get out, and the exchange cleans up.
Blissex, if illegal labor was removed from US agriculture (eg), what do you estimate the resulting price jump in groceries would be – give a rough sum in percentages? Or wouldn’t there be any, if so why?
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ELAINE: We ‘fight inflation’ via importing cheap foreign labor illegally and legally, thus driving down wages and breaking unions, and then, to further drive down or even eliminate wages and break the unions, we exported most of our civilian manufacturing! Voila: inflation ‘vanishes’ except it doesn’t and hasn’t. We have big, big food inflation now and the cheap manufacturing thing is ending, too, due to no more cheap labor markets are to be found, we hit rock bottom.
OK, Elaine. I have to bite on this one. Will there be an incident in the future such as the one the started WW1? Obviously I don’t mean will an Archduke be assassinated, but will there be a relatively minor skirmish that will unleash all hell? It seems to me that both China and Russia fully expect an eventual armed confrontation with the US. Is this correct? I also think the “planners” at the Pentagon are loony tunes enough to think they can take on BOTH China and Russia and win.
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ELAINE: I predict Japan will suddenly turn suicidal (the leaders, that is) and suddenly run towards China screaming, ‘Banzai!’ and this stupid event, over a very small, uninhabited island, will trigger WWIII. This is why I watch Japan like a hawk. It is a literally dying former great empire. The UK is not nearly as suicidal as the Japanese. So I worry a tad less about them doing something this insane.
That’s a great link, MikeM!
I often wondered if anyone had even done any studies on psychopaths, with the emphasis on those who control our governments and institutions, and not just on the “Born to Kill” type that is easy to see and avoid.
I am still dealing with an ex-wife who is a psychopath or sociopath, and she was exposed by a custodial evaluation during our divorce, but the court, the judge, the evaluator, the private school teachers, even some of my neighbors, all believed that the mental illness that ran through her family was less dangerous to my sons than the simple fact that I was Deaf.
Those who supported me had no power to change anything. They were not even allowed to testify in court. Those that supported her family used their money and power to crush me. I still do not understand why so many people were willing to help her and not me or my sons.
I plan to read all of the article that you mentioned above.
‘As one person pointed out, this punishes Americans and encourages illegal aliens to cross over for a free education.’
This has been going on for a long time…
Anyone buying ‘Compassion cupcakes’ at the diversity bake sale at UC Berkeley???? [not joking..they are for sale].
christian, it’s a joke isn’t it? if illegal labor was removed prices might rise but so would wages, and the cost of benefits and social services would seriously decrease.
alessio (the independent trader ) has a facebook page and is evidently a prankster.
Alessio writes about the economy just like I do and what he said is correct which is why it is funny as hell to say, he is a ‘prankster’. As one Brit commented yesterday, ‘All the traders are pranksters!’ And I agree.
ELAINE: No, it is a citizenship issue.
Citizens voted to have certain services for their own children. When people illegally cross the borders to tap into these services, it destroys the entire community.
And don’t forget, all of these taxpaying (many evade paying taxes as much as possible!) illegal aliens are DISPLACING citizens from jobs. Many illegals went into construction jobs, for example, and worked off the books (no taxes there!).
thanks!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
THERE IS A HUGE COST TO CHEAP ILLEGAL LABOR
BUT ITS ON THE BACK END…DONT EXPECT MSNBC TO PUT IT IN YR FACE