War With Iran Must Be Averted

Aug 26. Hans Lysglimt

Let us hope and pray that the war monging neocons in Washington D.C. does not escalate the war in the middle east by attacking Iran. Evidence is now building that 5 carrier groups are on their way to the gulf. This could be the buildup for the strike, sending the oil price to USD 400. An attack late in the year would probably scare the American public and ensure victory for McCain, and this worries us deeply as it is just what the neocons want. War is the true enemy of personal liberty. The speculation markets will pick this up first. Keep a close eye on the oil price for the rest of the year, if it suddenly spikes up a military confrontation is more likely and it is time to seriously head for the hatches and bunker down.

Obamas choice of Biden deeply saddened us. Biden is a war monger with 35 years in the senate and thus in no way represent the change Obama is claims to bring.

We spent the weekend at the Frihetsfrontens Sommarseminarium, the annual gathering of Libertarians outside Stockholm. Our take aways from there are:
– The total surveillance state is probably unavoidable and will happen in our lifetime. We should do our uttermost to stop it. Yet, we should at the same time prepare for it, to learn how to live with it.
– People that used to be friends of the USA and very positive to the USA their entire life have now turned against it and become directly hostile to it. Several people said they had no intention of ever returning to the USA. This is a sad story indeed.
– As our supposedly “friends” of liberty, the conservatives are now in charge in Sweden it has become utterly apparent that they are hypocrites that have no intention what so ever to stand up for individual liberty once they get hold of power. Conservative (Moderat) Fredrik Federley who spoke at the 2005 meeting has just betraied all friends of liberty by voting for the Swedish FRA law allowing the defense department wast surveillance powers over ordinary civilians. Shame on him. What do you need enemies for with friends like that.

The US bank scandals keep rolling on. Fanny and Freddie will eventually have to be nationalized. Investors should look to the bank crisis in Scandinavia in the early 90ties. Shareholders in Swedish banks where spared by the government in the nationalization, shareholder in Norwegian banks where not. Investors lost their shirts betting on this or that, as they will in the USA today. It can go either way, the risks are enormous. It is a pure gamble as far as we are concerned. To be fair, and as a footnote. With current valuations the Norwegian government has actually made back all the money it put into the rescue nationalization of the banks, with interest, however I would not advice anyone to believe the US government will do the same.

Some interesting observations:
Some people I know who import goods from China to Norway attended a three day industry fair last week. At first they tried the Chinese approach of not giving straight quotes but saying “we will contact you with a quote”. This is something the Chinese do to have different prices towards different customers in an effort to outsmart the market, a practice I personally despise. By the third day they had given up and was openly quoting standardized prices in an honest way. The distasteful practices of the far east simply does not work here. Have a look at Alibaba.com, the Chinese all do it this way.

American Express just sent me my new card in August. Then in September with the first bill they will charge me their annual fee for the card of NOK 400 or USD 75. It is a neat little trick as most people by then have put the new card in their wallets and gotten used to it. The September bill then becomes a opt out instead of an opt in. Not us, we are canceling the Amex Card going for a free Mastercard instead, and so should millions of other customers.

In this recession the FDIC will run out of insurance money to bail out the banks. The FED will run out of Government Bonds to swap for junk bonds. The federal deficit will skyrocket and the states deficit will go through the roof. All this will happen, telling us quite clearly that we are still very early in this recession.

Some may accuse us of not being positive. We do not agree. We are positively sure that we are heading for dire straits.

Oslo, Norway. August 26. 2008 Hans Lysglimt

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  • By No Silver Lining Yet on 8 September, 2008 at 11:32 am

    […] August 26 we said that Fannie May and Freddie Mac would eventually have to be nationalized. Today on September 10 they where nationalized. It seems they are doing it the Norwegian way […]