Firearms are second only to the Constitution in importance; they are the peoples' liberty teeth.

First Inaugural Address of George Washington...April 30, 1789

The preservation of the sacred fire of liberty and the destiny of the republican model of government are justly considered as deeply, perhaps as finally, staked on the experiment entrusted to the hands of the American people.

The Second Amendment of the U.S. Constitution

A well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed.

The First Amendment of the U.S. Constitution

Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.

Abraham Lincoln said:

"In this age, and in this country, public sentiment is everything. With it, nothing can fail; against it nothing can suceed. Whoever molds public sentiment goes deeper than he who enacts statutes, or pronounces judicial decisions."

James Madison Declared

The adversaries of the Constitution seem to have lost sight of the PEOPLE altogether in their reasonings on this subject; and to have viewed these different establishments not only as mutual rivals and enemies, but as uncontrolled by any common superior in their efforts to usurp the authorities of each other. These gentlemen must be reminded of their error. They must be told that the ULTIMATE AUTHORITY, wherever the derivative may be found, RESIDES IN THE PEOPLE ALONE. (Federalist Papers, No. 46, p.294; emphasis added.)

Wednesday, January 25, 2012

Corruption of traditional accounting principles

Over the last decade or two there has been a gradual corruption both on the American and European continents of the traditional principles of accounting as practiced for centuries. In many countries the (IAS), International Accounting Standards have abandoned the traditional principle of prudence and replaced it with the principle of fair value. This was a particularly positive principle, in good economic times, because it highly inflated the bottom line of the financial assets of brokerages, investment houses and in general in all that wanted to see "inflating" book values. Eventually the "bubble" that this practice created because of greed burst and we, economic sector and countries and individuals who bought into this artificial position found themselves holding worthless, non-liquid toxic investments. So instead of bitting the bullet and saying they made a greedy mistakes they, the central banks, the Fed, and semi-governmental institutions bought back this worthless "stuff" through various means including bailouts and creating more and more fiat money. The time now has come to stop the fiat money and create and monetary system not based on "wishing it so" but on one backed by hard assets worth something "in themselves". Will the governments of the world do this or will the "can" be kicked down the road to another generation which will only make the problem more difficult to solve because the hole we find ourselves in will only be much, much deeper?

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