March Rant -- Recognizing the Economic Tsunami we are in

Does anything that is happening in the world today make sense. We are told that everyone needs to go back to school and learn new skills, but what is being done to re-equip America and re-emerge under this new Workforce Paradigm and how many people will such a paradigm support?

We are told that we are moving towards a Service Economy. What kind of lifestyle will those jobs support. Will these jobs help grow the overall Economy of the United States?

Let's look at support of the Service sector related to the local Retail Economy. I buy very little on the local level. I would like to buy more products from local businesses and I do when I can, but really there isn't much choice on the local retail level.

As far as necessities. I don't buy a whole lot of food, because I eat at least one meal at work, the days that I work. I go out to eat very little, because I have been around restaurants so much that I am disinterested in most of what is offered on the local scene and I can fix more to eat than what is available from these places. Also, I grow my own food as far as vegetables and I only buy meat, cheese, and dairy once a month at Sam's.

As far as discretionary items, I buy most of that stuff off of the internet from online retailers like Amazon.com. Why pay more for it at a local major retailer. It's still going to the same banksters on Wall Street. I'm just cutting out more of the middle men.

I think as we go further down the line that we are going to look to cut out the middle man more and more. The only reason why they were there to start with was because they provided service.

I'll give you an example. My grandparents used to buy their their televisions, electronics, and other household accessories from Caldwell TV. My grandfather had a relationship with them, because he sold them business forms and he became friends with the owner. They would deliver the Console TV, Dishwasher, or whatever and they would install it and make sure that it worked properly. If the TV was broken, then you called up Caldwell and they sent the TV Repairman out to fix it. You built a relationship with the people you bought merchandise from.

Now there is little to no relationship when it comes to any of these purchases and that is what the consumer has come to expect. When you go to a Best Buy or Walmart, you expect that the person who works in the department doesn't know much about what they are selling and you are lucky if they know where the item is located and sometimes you can't even find somebody to help with either or any other issues. If you buy a television or appliance, you process the warranty and if it breaks you get a replacement. If the warranty is out of date, you throw the product away. We have become a disposable society.

I always wonder why at Walmart they have 50 registers and only 5 open. Of course, you can go check yourself out at an automated register.

All of the Nattering Naybobs sit there and tell you that we are becoming a Service Economy. Well, if we are truly becoming a Service economy, then should we not be expecting more service instead of less. Everywhere I go, I'm standing in line or waiting or searching for someone to provide me service. I go to a fastfood restaurant and the tables aren't clean and I have to throw my garbage away and get my own food. How is that a Service Economy. That seems more like a Race to the Bottom / Least Common Denominator Economy.

I don't mean this to be an affront, but it has become very obvious that we have an aging demography in this area. Many days, I walk through work on the way from the kitchen to the bathroom and I look at the dining room and there are very few people who are less than 60 years old out there.

I am a soldier on the front lines of this economy. I feed the people and the people are the marketplace. I know the economy. I witness people ordering split meals, half meals, trying to cut corners on their ordering, and many times not properly tipping the servers who depend on it for their livelihood... And that is a big part of what I have seen related to older citizens that we have in this community's mindset and lifestyle. Austerity is here and you cannot grow an economy through Austerity. Austerity is about survival. Personally, my fingernails are killing me!!!

As I have stated before, we cannot become a service only economy. We must redevelop our Manufacturing Capacity and direct it towards New Technologies related to energy, transportation, and other lifestyle trends.

It is obvious that if we keep heading down this road that we are on, that there won't be much of anything left of our nation. For one, you won't be able to afford anything, because the Corporatocracy is continuing to trim the workforce and its income and individuals are demanding less and less service. That means that people will be lucky to have a job and they are going to be able to afford fewer and fewer retail goods (and services).

I think that if we continue to see the Federal Reserve devalue our currency and the Government help devalue labor by continuing to empower the International Corporatocracy, at the same time the government will be forced to raise taxes on commercial retail activity to service the bloated debt structure, this is creating negative momentum, which is leading to a "Race to the Bottom" scenario, which ultimately leads to nothing.

This imploding economy will force people into a Barter/Trade lifestyle, because you can't trust the currency. First off, you can't trust it because of inflation and second you can't hold onto it, because the government keeps trying to tax it away from you on multiple levels. For sure, the transformational age that we are living in demands that human relations move away from a materialistic and commercial form and towards a truly social, interactive, and functional form if we are to succeed.

People are going to have to interact and help one another out through these difficult times. The most important part of this process is to recognize what is happening and move away from the lies perpetuated by the forces in industry, the media, and government that are attempting to pull the wool over our eyes. In order to succeed against this Economic Tsunami, we must first understand the challenges and then have the courage to face them head on. The sooner we are willing to take action to remedy these consequences; the less the duration of the pain we must endure and the greater our chances of success coming out of this storm that we must admit we are in.

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I know the choice of the word Tsunami might be considered frivolous, because of what happened in Northern Japan yesterday (3/11/2011), but I do find the word most appropriate for the circumstances that we face. My condolences to the people affected by this natural disaster and all that they have lost and must endure over the coming time period. Japan is in my prayers and it is my hope that we can all come together to help that great nation survive and move forward after such a devastating event. May God bless the people of Japan.

The Reaffirmation of Independence of the United States of America

As originally posted on July 8, 2010 - Will you join me

As was stated by the original author(s) of our Nation’s founding Document declaring Independence. We, as Americans, should reaffirm and ratify our Declaration against tyranny, whether foreign or domestic.

When, in the course of human events, it becomes necessary for one people to dissolve political bands which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the laws of nature and of nature's God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable rights, that among these are life, liberty and the pursuit of happiness. That to secure these rights, governments are instituted among men, deriving their just powers from the consent of the governed. That whenever any form of government becomes destructive to these ends, it is the right of the people to alter or to abolish it, and to institute new government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their safety and happiness.

Prudence, indeed, will dictate that governments long established should not be changed for unsubstantial and/or temporary reasons; and accordingly all experience has shown that mankind are more disposed to suffer, while evils are tolerable, than to correct themselves by abolishing the forms (of governance) to which they have become accustomed.

But when a long train of abuses and usurpations, pursuing invariably the same object exhibits a plan and willingness to reduce the people under absolute despotism, it is the peoples’ right, it is their duty, to throw off such government, and to provide new guards for their future security.

Such was the patient suffering of the colonies in the mid to latter 18th century, as such is now the slow drumbeat of oppression enforced upon us by a government gone awry that no longer represents the intent of the founders and the will of the people; which was government of, by, and for the people.

It has now become necessary to reaffirm and restore our rightful system of government. The history of the egregious actions of many of our elected representatives and members of the unelected bureaucracy must be enumerated. The injuries and usurpations of our rights, granted under the United States Constitution and the Bill of Rights, all relate directly to the establishment of an absolute tyranny over “We the People.” To prove this, let the following facts be submitted to a candid world.

Our Federal Government has been arbitrary and prejudice in its administration and enforcement of laws; not following the intent of the founders, by crossing the jurisdictions of the three branches of government and allowing influence peddling based upon the intrusive force of money and power.

Our Federal Government has overstepped its bounds by not allowing State and Local governments to regulate their own commerce or pass and enforce laws of immediate and pressing importance, unless assented to by the Federal Government itself; and the Federal Government has been passive in recognizing the needs of the Governments closest to the people.

Our Federal Government has refused to pass or enforce other laws for the protection of many of its constituents; stripping the citizenry of rights granted under the United States Constitution through the signage and administration of treaties and other International agreements, without ratification, that have not complied with the by-laws of our foundational documents.

Our Federal Government has utilized the Peoples’ legislative bodies outside of their accord, by not following precedent of procedure in the passage of new laws. This has happened in spite of the intent of the people and displayed a voluntary willingness to basically make the rules up as they go to administrate the special interests of the elite against the common good.

Our Federal Government has dissolved the authority of the States to administer and regulate themselves, by seizure through the intent of force, if any individual State defended their rights. This superjurisdictional seizure has taken place against the guidelines set forth by the 10th amendment to the United States Constitution.

Our Federal Government has allowed issues to fester through the intent of neglect by not allowing State laws and regulations to be administered at the same time they refuse to administer laws and regulations themselves. Such political gamesmanship has left States with International borders vulnerable to the influx and incursion of foreign nationals upon their rightful jurisdictional territory.

Our Federal Government has endeavored to promote illegal immigration into the States by not enforcing immigration laws and regulations and this has inherently discouraged the proper naturalization of foreigners. This has had the effect of diluting the value of the rights of the Natural Born and Naturalized Citizens of these United States.

Our Federal Government has obstructed the administration of justice, by refusing to administer, and working against, laws established by Legislative bodies; and the utilization of judicial powers as a weapon against the desires of the people.

Our Federal Government has allowed the Executive Branch to utilize Extrajurisdictional powers through Presidential Executive Orders against the separation of powers intended by the United States Constitution. This has enabled the establishment of Government by Decree and thus goes against the prudence, which prevents changes in governance for unsubstantial and/or temporary reasons.

The Federal Government has erected a multitude of new offices by decree, and sent swarms of officers to harass the people of the United States; and as stated in the original declaration, “eat out their substance.”

The Federal Government nearly ten years ago created “The Department of Homeland Security,” which over time has more and more been allowed to encroach upon and inhibit the rights of the people granted under the Bill of Rights in the United States Constitution. The Founders expressed in the original Declaration their angst that the English Crown kept troops amongst the people, in times of peace, without the consent of the legislative bodies. This is happening in our country today through the use of military and paramilitary troops, which has the effect of devaluing and suppressing the rights of the people.

The Federal Government has affected to render to local police agencies military powers independent of and superior to ordinary civil power. Left to its own devices, this will eventually lead to the effect of full scale Martial Law.

The Federal Government has allowed a Corporatocracy to develop, which has taken precedence over our long established system of laws and subjected us to a jurisdiction foreign to the United States Constitution.

The Federal Government has willfully taken actions that have by design, whether intended of consequence or not, destroyed our nation’s Productive Industrial Capacity. This has enriched the Corporatocracy at the expense of the people.

The Federal Government has allowed Multi-National Corporate Interests to take precedence over American Interests and the goodwill of the People of these United States.

The Federal Government has unfairly imposed many taxes upon the people without their consent.

The Federal Government has mismanaged the finances of this Nation in a multitude of ways, including the abrogation of the control of our National Currency to the interests of the Corporatocracy.

The Federal Government long ago established the Federal Reserve Banking system, which is a private corporate system. The money of the United States rightfully belongs with its people, not private corporate interests.

The Federal Government has willfully allowed the extortion of the American People’s interests through the manipulation of the currency by these private multi-national corporate interests.

The Federal Government’s Agencies were initiated to protect the interest of the American Public, but instead these agencies have been utilized as a means to protect the interests of the Corporatocracy.

For rendering State and Local Governments dysfunctional by overstepping the bounds of their jurisdiction and not recognizing or respecting the importance of local governance; which has fundamentally altered all levels of our governments.

For subverting State legislatures by not allowing them to govern in the interests of the individual State as recognized by the Tenth Amendment of the United States Constitution; basically declaring the Federal Government invested with power to regulate legislation at all levels of the government through exploitation and illegitimate utilization of the “Commerce Clause.”

The Federal Government has abrogated responsibilities enumerated in the United States Constitution, by abandoning the protection of rightful citizens and falsely labeling many as subversives for defending their natural rights.

The Federal Government has endorsed the plunder of our natural resources, the polluting of our coasts and interior, the degradation of our local municipalities, and general destruction of the lives of many of our people through its willing support and association with the monopolistic International Corporatocracy.

Large portions of our standing military are being utilized in the role of mercenaries at the behest and for the interests of the International Corporatocracy. Many of our nation’s citizens are fearful that at a point in time in the near future that our own Military Forces accompanied by International Military Forces will be utilized to subvert the will of the people of this great nation.

The Federal Government over time has instilled a spirit of reduced expectations among the general populace, while continually expanding and protecting the superficial interests of the wealthy elite. The original paradigm upon which this nation was built was a demand for excellence and an altruistic belief in justice and equal opportunity for all.

Federal officials have voluntarily accepted an oath to protect and defend the Constitution, while some have continually and willfully subverted aspects that do not support their personal preferences. At the very least this is contempt and the argument can be made that this is treason. If the case can be properly established as to willful subversion of the Constitution, then at the very least, the remedy shall be removal from office.

The actions and consequences of this Federal Government may at a time in the future create the circumstances, whether intentional or unintentional, of domestic insurrections amongst us. Such Vigilante Justice and the reaction against it will inevitably lead to collateral damage involving the lives and property of innocent bystanders.

As we move further down this road of radicalized, divisive government, many of us grow weary to witness the chasm that has developed between Governance and the People. Under all definitions of our Republic’s founding documents, we are supposed to be a government of, by, and for the people. We humbly appeal to you to heal this divide with the people. Have we not learned from history, the consequences of Government by Decree?

The multitude of the people do not desire anarchy. We need governance, but the people deserve to be heard and their will shall not be subverted. The Federal Government’s role is understood, but it shall not be an autonomous agency of our governance. Under the Constitution that role is to establish Justice, insure domestic Tranquility, provide for the Common Defense, promote the General Welfare, and secure the Blessings of Liberty to the people of this nation.

It is understood that this nation, in past historical circumstances, has had issues where the Federal Government has had to step in to protect minority interests in the concern of justice. This is the reason why we are a Republic and not a Democracy. Justice shall prevail in cases where natural law is suppressed in the favor of oppression and against good moral standing. This should not however allow the Federal Government to grant itself new powers not enumerated in the original Constitutional document, unless an amendment is properly ratified under Constitutional guidelines and procedures.

Therefore, it is the hope of the people of this nation that our elected representatives and those others who serve the United States of America, will understand the seriousness of these issues solemnly set forth and published in this document. The United States are still and by right ought to be free and independent states as set forth in the original Declaration.

Lest we ever forget those who toiled, labored, or paid the ultimate sacrifice for these freedoms that this generation takes for granted and seems so willing to cast away.

Gadaffi's Stash - Money Laundering - U.S. MegaBanks - Business as Usual

The Hound : What a wonderful country our home has turned into; where we support Dictators for oil. I would have never thought that I would be begging to see some form of cogent justice, but it is very apparent that we are going to fully support a two-tiered society where it is legal to be a criminal, if you have control over someone else's money. We don't need more regulation, when the laws we have are brazenly usurped or altogether egregiously ignored and law enforcement is either bought off or incompetent (probably a little of both).

How Did Gaddafi Bypass US Anti-Money Laundering Rules To Bank With Goldman And JPMorgan? - Submitted by Tyler Durden - 03/02/2011

One of the most critical questions that has to be asked in light of yesterday's revelation that among the banks providing banking and asset amangement services for Libya were Goldman Sachs, JP Morgan and Citigroup, is just how did Libya get an exemption for anti-money laundering provisions both in Europe and the US. Oddly enough, this future mainstream debate arises not in the US, where any form of critical thinking appears to be immediately curbed by SEC Rule 201 (for all those calling for a hike in the SEC's budget, we suggest the following contrarian thought experiment: let's cut its budget to zero and see how long before anyone notices) , but out of the UK, where a reader writes in to the FT (oddly enough, partially owned by the Libyan Investment Authority) with the following very simple question: "It seems to me entirely implausible that Col Gaddafi could have earned billions of dollars through legal means. And yet if the AML procedures, to which we are all subjected, have not been applied rigorously to the likes of Col Gaddafi and his family, one is forced to ask what purpose they really serve." Or what purpose any regulation serves in general when fraud results in surging stock prices, and companies that adhere to the rules are promptly wiped out in this bizarro capitalist world.

From the FT:

Sir, I read with interest the news that the UK government is freezing billions of dollars in assets belonging to Muammer Gaddafi and his family. I would also be intrigued to know whether the banks and other financial institutions handling these assets have applied the same anti-money laundering (AML) procedures to these assets as are applied to every other “normal” banking client in the UK.

I am less interested in whether Col Gaddafi and his family were able to supply passport copies and utility bills but more interested in what evidence they were able to present as to the source of the funds.

It seems to me entirely implausible that Col Gaddafi could have earned billions of dollars through legal means. And yet if the AML procedures, to which we are all subjected, have not been applied rigorously to the likes of Col Gaddafi and his family, one is forced to ask what purpose they really serve.

Charles L.M. Horner,
Bangkok, Thailand

See No Evil: Wall Street Banks and Qaddafi Cash - Rolling Stone - By Tim Dickinson - March 2, 2011

The Obama administration's move to freeze $30 billion in Libyan assets has sent Wall Street banks scurrying to lock down Qaddafi's cash. Raising the question: How did America's biggest firms become bankers to one of the world's most corrupt men?

Anti-money-laundering statutes are supposed to bar "the movement of illicit cash or cash equivalent proceeds into, out of, or through the United States [or] ... United States financial institutions.” And when it comes to Libya, there's no such thing as licit cash: According to a WikiLeaked State Department cable: "Libya is a kleptocracy in which the regime has a direct stake in anything worth buying, selling or owning."

And yet, according to a cable from 2010, top U.S. banks were in bed with Qaddafi's Libyan Investment Authority: "Several American banks," our embassy in Tripoli reported, "are each managing USD 300-500 million of LIA's funds."

Firms reportedly playing banker to Libya's "sovereign wealth fund" include Goldman Sachs, Citigroup, JP Morgan Chase, and several private equity firms.

Banks Financing Mexico Gangs Admitted in Wells Fargo Deal - Bloomberg - June 28, 2010

They found 128 black suitcases, packed with 5.7 tons of cocaine, valued at $100 million. The stash was supposed to have been delivered from Caracas to drug traffickers in Toluca, near Mexico City, Mexican prosecutors later found. Law enforcement officials also discovered something else.

The smugglers had bought the DC-9 with laundered funds they transferred through two of the biggest banks in the U.S.: Wachovia Corp. and Bank of America Corp., Bloomberg Markets magazine reports in its August 2010 issue.

This was no isolated incident. Wachovia, it turns out, had made a habit of helping move money for Mexican drug smugglers. Wells Fargo & Co., which bought Wachovia in 2008, has admitted in court that its unit failed to monitor and report suspected money laundering by narcotics traffickers -- including the cash used to buy four planes that shipped a total of 22 tons of cocaine.

The admission came in an agreement that Charlotte, North Carolina-based Wachovia struck with federal prosecutors in March, and it sheds light on the largely undocumented role of U.S. banks in contributing to the violent drug trade that has convulsed Mexico for the past four years.

JPMorgan's $907 million Madoff bonanza - Posted by Colin Barr - February 28, 2011 - A new academic paper estimates the bank reaped nearly $1 billion in pretax profits over two-plus decades by servicing a checking account at the center of the giant Ponzi scheme.

The Federal Reserve's Definition of Normal

(Prologue) The Federal Reserve's Definition of Normal does not include the Middle Class. As a matter of fact, the policies of the Fed are having an effect of destroying the Middle Class by debasing the dollar and rack and ruin for those on fixed incomes. I have links to previous articles below that show that we are in a Hyper-inflationary, Hockey Stick Growth Curve period when it comes to many staple commodities. Only the Presstitutes, as Gerald Celente defines them, in the main stream media are buying and selling the propaganda of The Fed and their cronies in the Federal Government.

A subscriber to the Blog "Seeking Alpha" addresses the issue of Ben Bernanke and the Federal Reserve's Economic Strategy, which mirrors much of what I have been stressing over the last 2+ years.

...Banana Ben would not want to be recorded in history as the single person most responsible for the demise of the US via currency debasement. History confirms that is one of the surest ways to undermine a country. I therefore concluded (wrongly) that he would not engage in reckless monetization.

We can see how that worked out. So I continued reading trying to find the motivation behind why the Fed does what they do, because it is abundantly clear that what they say has no bearing on reality.

My revised outlook on The Bernank and the Fed in general (excluding Paul Volcker is as follows):
• The Fed works for the international financiers, not the people.
• The Fed will always chose what’s best for the banks over what’s best for the people.
• The financiers maximize debt to maximize profits, be it personal, business or govt.
• The financiers want concentration of power among the megabanks.
• The financiers want control over the political process (They finance elections.)
• The financiers want control over the legislative process. (Done by planted alumni and bought politicians with threat of campaign contributions hanging over them. )
• The financiers control corporations by rewarding short term gain (beat the number = bonuses), but not long term prosperity. Result is outsourcing which weakens the people.
• The financiers pacify the people by “creative financial products” which allow consumers to borrow (enriching the bankers) in order to create the illusion of prosperity.
• The financiers control the population through media propagandists who dumb down the population by deception. Otherwise, it would overthrow the politicians.
• The financiers have no country allegiance. If they destroy the US, they just go somewhere else.
• The Criminal Reserve is just a tool in the hands of international financiers. Currency debasement is their weapon of choice.

The question is, how far will the people let politicians and the media deceive them while the Criminal Reserve destroys the currency? My hope is that something wakes them up before the destruction becomes irreversible.

The only book I have read that provides an explanation of the motivation behind the Criminal Reserve is by G Edward Griffin entitled “The Creature from Jekyll Island”. He maintains the Fed is corrupt by design and the only solution is abolishment.

Links to Hickory Hound Articles that show what is really going on:
The Impending Collapse of JP Morgan
Who's in Charge around here?
An Economy Out of Control
The Food Crisis -- February 19, 2011
Melding the Corporatocracy with a Kleptocracy

The Impending Collapse of JP Morgan

A Conspiracy With a Silver Lining - WILLIAM D. COHAN - March 2, 2011, 7:40 pm

Nonetheless, how to explain the price of silver? In the past six months, the value of the precious metal has increased nearly 80 percent, to more than $34 an ounce from around $19 an ounce. In the last month alone, its price has increased nearly 23 percent. This kind of price action in the silver market is reminiscent of the fortune-busting, roller-coaster ride enjoyed by the Hunt Brothers, Nelson Bunker and William Herbert, back in 1970s and early 1980s when they tried unsuccessfully to corner the market. When the Hunts started buying silver in 1973, the price of the metal was $1.95 an ounce. By early 1980, the brothers had driven the price up to $54 an ounce before the Federal Reserve intervened, changed the rules on speculative silver investments and the price plunged. The brothers later declared bankruptcy...

The gist goes something like this: When JPMorgan Chase bought Bear Stearns in March 2008, it inherited Bear Stearns’ large bet that the price of silver would fall. Over time, it added to that bet, and then the international bank HSBC got into the market heavily on the bear side as well. These actions “artificially depressed the price of silver dramatically downward,” according to a class-action lawsuit initiated by a Florida futures trader and filed against both banks in November in federal court in the Southern District of New York...

In September 2008, after receiving hundreds of complaints that silver future prices were being manipulated downward by JPMorgan and HSBC, the commission’s enforcement division started an investigation. In November 2009, an informant, described in the law suit only as a former employee of Goldman Sachs and a 40-year industry veteran, approached the commission with tales of how the silver traders at JPMorgan were bragging about all the money they were making “as a result of the manipulation,” which entailed “flooding the market” with “short positions” every time the price of silver started to creep upward. The idea was that by unloading its short positions like a time-released capsule, JPMorgan’s traders were keeping the price of silver artificially low...

In any case, the class-action lawsuit contends that between March 2010 and November 2010, JPMorgan Chase and HSBC reduced their short positions in the silver market by 30 percent, causing the metal’s price to rise dramatically, but leaving them still with a large short position. Now, with the value of silver rising nearly every day, the two banks are caught in a “massive short squeeze,” according to one market participant, that appears to be costing them the billions they made originally plus billions more...

It’s getting harder and harder to continue to brush off Andrew Maguire’s claims as the rantings of a rogue trader with a nutty online following. The Commodities Futures Trading Commission should immediately release the files from its investigation into the supposed manipulation of the silver market so the public can determine whether JPMorganChase and HSBC did anything illegal, with or without the help of the Fed. In addition, the commission should start enforcing the 10 percent threshold on silver positions it has proposed to comply with Dodd-Frank law. Basically, the other commissioners must join with Bart Chilton to do the job they are required to do: Protecting the sanctity of the markets and preventing the sorts of manipulation we’ve seen all too often.

Silver Backwardation Continues - Silver Eagle Premiums Rise After US Mint Discontinues Production - Gold Seek - 3/4/2011

This may be an indication that there are strong hands in the silver pits who are buying all dips and taking on the still very large concentrated short positions of JP Morgan which continue to be investigated by the CFTC (see news below).

Physical demand for silver for both industrial and investment and store of value purposes remains very high and supply anemic at best.

The US Mint has been forced to discontinue the production of U.S. Silver Eagles as they simply cannot keep up with the demand. The US Mint says that production of the silver bullion coins are suspended “temporarily” as they cannot source enough silver bullion blanks to make the very popular coins. In just the two first months of 2011 alone, 9.633 million Silver Eagles were sold. This corresponds to about 300 tonnes of silver...

Eric Sprott of Sprott Asset Management recently said that his fund was having difficulty sourcing silver bullion bars (1000 oz) in large volumes and there were liquidity issues in the market.

He also warned that the world was running out of silver. "There's $22 billion of silver available in the world, of which the ETFs already own half, and between you guys and us we probably own the other half... Which means there's nothing left."

Record sales in the US Mint have also been seen in the Royal Canadian Mint and the Austrian Mint. The Austrian Mint sold 1.53m ounces of its silver Philharmonic coin in January, more than double the level a year earlier. The Austrian mint would boost production to 2.2m ounces in February and March.

Both the Austrian and Canadian Mints have begun rationing new silver coins to dealers, meantime, after record January sales across the retail industry.

The Royal Canadian Mint, which produces the silver and gold Maple Leaf coins, have spoken about how they are finding it difficult to source silver in volume.

David Madge, head of bullion sales at the Royal Canadian Mint, recently told King World News that “it still remains a big challenge sourcing material. We’re looking at ways of mitigating our risk regarding supply of silver.”

We are anticipating it to become even more difficult to secure supplies in the future. This is based on what we are seeing firsthand and what our suppliers are telling us. We work closely with these banks to secure silver and they tell us there is a lot of competition.”

When asked what this means for the price of silver and how long this condition is expected to persist Madge stated, “I think you are going to see the premiums go up in order to secure silver. At some point some players will be priced out of the market. I don’t think this is a short-term situation, I think there are a lot of issues going forward and this may be the new norm.”...

The Hound: The Following is a rumor, but if true it spells doom for JP Morgan, who owns all of these short silver contracts, which means that they were investing in the price to go down. Many of these contracts were bought for under $20/ounce.

Part A: Comex trading/Silver scandal goes mainstream - Harvey Organ's Gold and Silver Report - 3/3/2011

As many know there are a group of ex Morgan traders who decided to take on Blythe Masters and JPMorgan by standing for delivery but then asking for a huge fiat premium. We have now heard from one trader who also is a reader of my blog. The name given to the ex traders is "Wynter_Benton:

Here is what is posted by Louis Cypher:

"Wynter_Benton update on their recent raid
With permission, I can update the results of our raid. It was successful beyond imagination but that "success" has spawned even more questions about the price of paper silver going forward. It was reported by SGS that he heard that on Friday Blythe was offering 30-50 percent premium and that at least 4500 hundred contracts will stand for delivery. I am here to give you a more accurate update (and a first hand account of what happened on Friday Feb 25). Our group was detemined to stand for delivery going into Monday because we were not going to take a 30 percent premium on a price of $33.50. It was reported that Blythe offered 50 percent premium. That was not even close in our case. We got over 80 percent premium. That's right. Over $50 per contract on the condition that our group sell all our contracts. Our counterparty even threatened us with the ghost of Herstatt. They openly admitted that they could not deliver even 20 million ounces to us but that if we stood for delivery they would be sure that they make delivery to everyone else before they defaulted on us which would make us 'unsecured creditors'. They told us directly that they could not allow even 5000 contracts to stand for delivery because they could not deliver a mere 20 million ounces. Like Vito Corleone said, "I'm gonna make him an offer he can't refuse." And indeed we did not refuse as this was our intention all along.

These sets of facts from our traders lead us to believe that the paper price of silver may have a difficult time surpassing $36 because if the counterparty at the Comex is so willing to pay north of $50 to dissuade people from standing for delivery yet the paper price of silver is still under $35, then we suspect that losses triggered by derivatives is the main reason for the price suppression of silver. We can see no reason why they would not allow the paper price to go up yet are so glad to pay off the comex contracts to show the world that so few are standing for delivery. In our mind, Comex could default with if as little as 4,000 contracts stood for delivery. We are very curious to see how high the paper price of silver actually trades during this run. - Posted by Louis Cypher"

The Hound: What this means is that currently the COMEX (Commodity Exhange), which is part of the New York Mercantile Exchange, which trades Option contracts (Derivatives) and hard physical assets to the open market does not have access to enough Physical Silver to make the market function (make deliveries to close out contracts). The Silver market is dysfunctional and it is going to take money markets with it. What is being espoused here is that JP Morgan and HSBC (The Hongkong and Shanghai Banking Corporation Limited) have bought all of these Silver Short contracts, betting that the price of Silver will go lower. In order to do this they are supposed to have the assets on hand. What they have done is called naked shorting. It has become obvious that they do not own the physical Silver and since the price of Silver has risen so dramatically there are people who want to take delivery of the Futures Contracts that they have purchased and there are others who have had their Silver warehoused and they want to take physical delivery of their property.

As I stated earlier, many of these contracts were purchased at around $20. They were bought when Silver went to $21 in March 2008. JP Morgan inherited a lot of Silver contracts from Bear Stearns when Bear Stearns went bust in March 2008, as you can read in the William Cohan, New York Times piece above. Silver closed at $35.67 today. An 80% premium would mean that the COMEX would pay $64.20/ounce per contract at the current physical market price. That means that whoever owns those short contracts are going to lose $44.20/ounce if they bought those short positions at $20.

Estimates I have seen show JP Morgan's exposure related to Silver to be anywhere from 1 billion to 3.3 billion ounces. That means under the current situation, if Silver contracts are being bought for $64.20/ounce, then JP Morgan is at least $40 billion in the hole and could be over $130 billion in the hole. As Silver continues to climb this is only going to get worse. Last year, the Gold to Silver ratio was over 60x. Now it is barely over 40x. Historically the ratio was always around 16x, so one can see the room for growth. The sky is the limit. As far as JP Morgan, If it (Morgan) goes, then so will all of the banks that do business with them and the Federal Reserve will go with it. More fraud has been piled higher and deeper. Numerous laws have been broken in association with this scheme to manipulate and suppress the true price of Silver.

These issues should have been dealt with long ago. It is time to end the Banks Reign of Terror. It is time to bring some sensibility back to our financial system. It is time to let the "Too Big To Fails" fail, so that the rest of us can have a chance to have a stable economic system in the future.

Newsletter about the City Council meeting of March 1, 2011

This newsletter is about the Hickory City Council meeting that I attended this past week. City council meetings are held on the first and third Tuesdays of each Month in the Council Chambers of the Julian Whitener building.

At right of this page under Main Information links is an Hickory's City Website link. If you click on that link, it takes you to our city’s website, at the left of the page you will see the Agenda's and Minutes link you need to click. This will give you a choice of PDF files to upcoming and previous meetings.

You will find historic Agenda and Minutes links. Agendas show what is on the docket for the meeting of that date. The Minutes is an actual summary of the proceedings of the meeting of that date.

Here is a summary of the agenda of the 3/15/2011 meeting. There were a couple of important items that were discussed at this meeting and the details are listed further below:

Please remember that pressing Ctrl and + will magnify the text and page and pressing Ctrl and - will make the text and page smaller. This will help the readability for those with smaller screens and/or eye difficulties.

Invocation by Rev. Karla Woggon of Episcopal Church of the Ascension

Special Presentations:
A. Presentation by Deputy Fire Chief George Byers and Senior Firefighter Darlene Huffman Requesting Council’s Approval for the 2011 PINK Heals Tour to Come to Hickory on September 22 - 24, 2011 in Support of the Fight Against Cancer in Women - Hickory is the second city in North Carolina to be selected for this. High Point was in 2010. The goal is to help area non-profit agencies. this will be an annual event. Mrs. Huffman stated that her mother was diagnosed with cancer in 2006 and did not have insurance. In 2008 her mother passed away. She wants to hep do this min honor of her mother. She wants to raise more money than High Point did ($60,000). The goal for Hickory is $25,000. This money will help with co-pays, transportation, house cleaning for 4 months, and mowing yards. Stephanie Drum spoke about the ways that these monies would be raised.

The Hound thought this was very touching. We have all been affected by people who have had cancer or passed away due to cancer. One could see how important this mission is to Mrs. Huffman and frankly it is to us all. One of the defining moments of my life was when my grandfather died from terminal cancer in 1999 and it is tough to watch anyone go through that and it is tough on the families that go through that process, especially when the spouse needs to work. And to hear the struggles related to insurance. We all know people who have faced these challenges and so we should all be supportive of this cause.


B. Presentation of FY 2010-2011 Board and Commission Work Plans Board / Commission Presenter - The Mayor has stated in the past that this was one of his favorite meetings of the year when we get to learn what our civilian volunteers are doing. Only 1 out of every 200 of our citizens participate on one of these boards. (Oops!, I left the animal control advisory board presentation from last year on this part of the article. I have now deleted it. The animal control advisory board no longer exists by decision of the city council a couple of months ago. I ain't the best proof reader in the world -- sorry).

1. Library Advisory Board - Ms. Judy Ivester -Asked for no money. In November the Council approved the Library's strategic plan. The Library is a focal point in the community. The new mission of the library is to encourage the exploration of new ideas and support local education; enhancing the economic vitality of the region and strengthening the sense of community, while enriching the quality of life for all. At this time, the library has 3 key positions frozen. The goal is to recruit, vet, and train volunteers to help with homebound services, senior outreach, and to perform regular library functions. To help with library services, each of the nine board members have pledged to help with library services by volunteering 24 hours to time towards this effort.

On the State level, the board will advocate for the library by attending Library day in Raleigh and by contacting state representatives about specific library related issues, will help the library without taxing existing library resources.

Technology plays a big role in and outside of the library. Each month 9,000 to 10,000 patrons utilize the library's 51 computers and another 10,000 patrons each month come to use the library's wireless network. The computers allow for the use of a virtual library. Offers real time records. Mrs. Ivester went into the library's formation of a technology garage, which allows patrons to learn and use new technologies. Technology Talks classes have been sellouts. In these tough economic times, it is smart for the library to join with other institutions to offer programs that they cannot afford on their own. She spoke about the Lenoir -Rhyne visiting writers series. The library sponsors one of these events each year -- Alexander McCall Smith will be the author this year visiting to Hickory. He usually only visits larger cities. This helps to promote our Quality of life and that is important in this climate. A library subcommittee will develop a series of programs around this author's visit. Last year the library counted on average 37,000 patrons per month and this year the number has risen to 39,000. This will allow the library to maximize its investment and attract new patron and the visibilty of the library in this region.

Mrs. Ivester talked about the library as an economic driver. In 2007, the North Carolina Library Association held its bi-annual conference at the Metro Center. It drew over 1,000 attendees to Hickory for 3 1/2 days. Prior to 2007, the last time one of these conventions west of I-77 was in the 1950s. Mary Sizemore and her staff did such an excellent job the last time that the NCLA is coming back this fall. This will out significant dollars into our economy, but at this time the library staff is severely stretched even with the board coordinating having volunteers to coordinate arrangements. Mrs. Ivester left by talking about the library, in coordination with Lenoir-Rhyne, bringing David Baldacci to Hickory on March 31, This event could not happen without that coordination along with the friends of the library. The Friends have supplemented the budget, just so that the Library can do extraordinary things for the community. Mr. Baldacci has 19 best seller's to his credit. His last book "Hell's Corner" debuted at number 1 on the New York Times best seller list in late November. (The Hound always appreciates Mrs. Ivester's straightforward updates. No fluff, she submits the challenges they face, what they are doing to solve the challenges, and the opportunities that lie ahead. You can tell that she spends time on these presentations and it isn't a cut and paste presentation from the past moved forward to this year. While some of the information is similar, she always injects new subject matter. This shows that the library has energy and has "It" going on. They aren't resting on their laurels -- Mary Sizemore and that staff should be shown gratitude for the work they do. These presentations truly show respect for the process and that in and of itself lends credibility when Mrs. Ivester makes presentations, because it attracts your attention.)

2. Citizens’ Advisory Committee Mike Holland - Todd Hefner presentation. Reviewing Block Grant Funds, North Carolina Housing Finance Agency Funds, and other Community Based Funding. Recommend Loan Applications related to the above to City Council. Trying to create affordable housing for the Green Park, Kenworth, Ridgeview, and West Hickory Neighborhoods. Working with the WPCOG for affordable housing through First Time Homebuyer Program.

3. Community Appearance Commission Mr. Leroy Harris -Requesting $51,300 1) Community Revitalization through community appearance ($30,000) and landscaping ($10,000) matching grants for aesthetic improvements. 2) Litter program for Saturday pick up ($10,000) augments the city's existing effort to clean up litter. 3) Tree City USA - Arbor Day Tree Celebration ($700) 4)Beautification awards ($100 for awards and certificates) - Adopt a Spot program. (The Hound is glad to see that the CAC is making efforts to improve conditions in more parts of the city and broaden its outreach).

4. Community Relations Council Ms. Alice Whitener - Overall plan costs $17,000. Maintain the grants program from the past, which assists private non-profits and public agencies ($12,000). Multi-Cultural event to be sponsored every year. Encourage City leaders to be educated on Human relations issues that can create better human relations in the city. Those given grants will be asked to partner with the CRC more.

5. International Council Mr. Hani Nassar - 7th time he has presented before the City Council. 12 members represent 9 countries. Spoke about the 8th and 9th annual Springfest at the SALT Block. PANGEA United Nations Conference held at Lenoir Rhyne on March 9 and 10, 2011. Working in association with the Footcandle Film Society to show International Films. Community Conversations - Community Outreach at the Library and other high traffic areas. All area schools are represented at their meetings. Budget is growing slightly ($10,000). Mary Sizemore has acted as a Liason between the city and the International Council.

6. Hickory Youth Council Ms. Sarah Carter - Comprised of 25 students from all of the area high school (public and private) Act as an advisory group to the City Council and liaisons to the various Borads and Commissions. Participate at State youth conference events. Participate in service events such as Cops for Tots and Animals for Alex. Host Dialogue Circles - This year they will discuss Cyber Bullying and other social media. Promote community and general public knowledge in the hearts and minds of our youth. Requesting $3,600 for general uses, programs, and a possible Summer retreat. (The Hound Knows this is a good Investment, because kids need to be more civic minded.)

7. Hickory Regional Planning Commission Mr. Brian Frazier - Implementation of the newly revised Hickory by Choice and the Land-Use Development plan. Getting geared up and used to the new codes. Optimistic about their application and possible reception of new Brownfield Grant monies ($200,000 or $400,000). Should know by Memorial Day.

8. Historic Preservation Commission Ms. Ernie Sills - This past year they updated their ordinances and by-laws. Designated the Train Depot as a local Historic landmark. Held a public hearing on recommending the former Ridgeview Library for the national registry. Asking for $10,100, $5,000 of which will be utilized to for offsetting the costs of incentive grant programs for Historic Designations. They want to extend outreach for the idea of Historic Preservation.

9. Parks and Recreation Commission Ms. Kelly Hurley - (I encourage you to go read the minutes of the January Parks and Recreation Meeting. It is very descriptive of this whole presentation. Ms. Hurley went over the list of goals and stated that this year the commission voted to not rank the objectives in order of priority. The Parks and Recreation staff now provides an e-newletter. She also gave a thorough update of the Hickory Community Gardens at Civitan park and Taft-Broome Park. The Civitan Park now has 40 plots compared to 20 last year. The North Carolina cooperative extension service is partnering with Parks&Rec to provide classes to citizens. She went into public-private and other partnerships that provide more opportunities for the people of the area.

1) Support completion of the Sandy Pines Park master site plan as recommended in the Parks and Recreation Master Plan and endorsed by Hickory By Choice. Should the decision be made to market and sell residential lots on Cloninger Mill property, some of the proceeds should be used to fund completion of the master site plan for Sandy Pines Park. 2) Pursue the creation of a parks and recreation endowment/foundation for the city of Hickory. 3) Support the City of Hickory in its efforts to provide an aquatic recreation facility that would serve the entire Hickory community. 4) Support the development of an outdoor amphitheatre at Henry Fork River Regional Recreation Park. 5) Pursue the development of a dog park within Hickory’s parks system. Proceed with plans to develop the dog park at Fairbrook Optimist Park as previously recommended. 6) Support the City of Hickory in its efforts to develop greenways and trails in accordance with the 2005 Greenways and Trails Master Plan. Work with staff to prioritize the recommendations contained within the master plan and develop an implementation strategy. 7) Support the efforts of the Hickory Landmarks Society to refurbish the Boy Scout Hut located within Geitner-Rotary Park. 8) Begin study and research on the potential implementation of a park ranger program for Hickory’s parks system. Focus should be on both law enforcement and interpretive education components for the program. 9) Pursue local partnerships and collaborations to establish a program to provide accessibility and affordability for swimming lesson to be made available to all children licving within the City of Hickory 10) Support the development of the proposed Cloninger Mill Park as recommended by the approved park master site plan.

(The Hound thought this was an excellent presentation. It was on point and I appreciate Ms. Hurley's enthusiasm related to the Community Garden Project. It has really been a success and I think the movement will really grow moving forward. I think that going out of their way to try to put a chill on the Swimming Pools issue is understandable, but in the end it is a waste of time, because what has happened is not going to be forgotten. In the end, people aren't going to blame the people on the Commission or the P&R staff. They are going to blame the people who were behind the decision; who showed no sense of respect for the people of those communities who were affected. That is the sad, but true, reality of the mess. The people know who and what was behind all of this. The people who cared about this issue are not going to hold hands and sing Kumbaya. It was not only the dishonesty from the get-go related to the subject. It was the fact that the City officials created a tyranny by not listening to the will of the people and by tearing up something that was not a part of their own neighborhoods.)

10. Public Art Commission Mr. David Zagaroli - Develop a Master Art plan, implement plans for art walk, and initiate a sculpture project. They are struggling with the proposes Fire Sculpture. They are going to look to a North Carolina Artist. Working on Art Walk Brochures (in-house $2,000) and Website enhancement to allow citizens to see the areas art work and the art benches that have been located throughout the city. he talked about the need for money to maintain the art benches. Total request is $11,500.

11. Recycling Advisory Board Mr. Jeffrey Wright - Chuck Hansen presentation. 9% increase in participation (74% of households). Recyclables are down a little related to the economy. In house video will be formed to educate how to and how not to recycle. Expand the scope of the program through Household recycling. This past fall they collected 55,000 pounds of household waste, of which 48,000 was electronics. They are working to educate schools through a Play event ($3,000). Education of students.

Consent Agenda:
A. Approval of Pyrotechnic Display Request by St. Stephens High School for Event Held at CVCC Campus - The North Carolina Fire Code requires a mandatory operation permit for the use and handling of pyrotechnic special effects material The City of Hickory has received a permit request from St. Stephens High School to display fireworks by Zambelli Fireworks Company at CVCC on June 11, 2011 for their graduation ceremony. The Fire Prevention Bureau will inspect the pyrotechnics display area prior to the event to ensure compliance with all guidelines..

B. Approve Second Amendment to Parking Lot Agreement With Transportation Insight, LLC - Due to parking need changes, Transportation Insight, LLC, desires to amend the initial parking lot agreement dated September 2008 for the second time to include releasing two handicap parking spaces as open to the general public and retaining twenty-four (24) usable parking spaces at $26.00 each per month.

C. Approve Resolution in Opposition to Closing the Hickory Mail Processing and Distribution Center and Rerouting Mail Through Greensboro, NC - The Hickory-Morganton-Lenoir MSA has lost 47,538 jobs since the year 2000; 1,319 in the last 12 months and holds an unemployment rate of 12.4 percent, this it is not the time for further loss. Consolidation of some operations to the Greensboro Processing and Distribution Center would close the entire Hickory P&DF and all 200 employees would be forced to relocate to other jobs outside the Hickory area. City Council requests the U.S. Postal Service to reconsider and take into account the high unemployment rate and loss of jobs when implementing the U.S. Postal Service AMP Study.

D. Deny Extension and Terminate Vacant Building Grant Contract With El Tio Food Systems, LLC for Property Located at 1180 Lenoir-Rhyne Boulevard, SE in the Amount of $25,000 - This request is to deny El Tio Food Systems, LLC an extension of time to complete work required to meet the terms of the contract for a Vacant Building Revitalization Grant for 1180 Lenoir-Rhyne Blvd, SE originally approved by City Council on August 3, 2010. Said termination of contract is based upon Section 8, failure to perform. According to the Vacant Building Grant Guidelines, the grant contract requires the work to be completed within 180 days of August 3, 2010. The applicant can request an extension for up to an additional 180 days for extenuating circumstances. The grant expired on January 30, 2011. The City Manager’s office recommends denying the extension request and termination of grant contract.

Budget Ordinance Amendments -
1. To budget a $300 donation from Grasche in the International Council line item for the 2011 International Springfest.
2. To transfer $50,000 of Water and Sewer Contingency to the Water Plant Maintenance and Repair Building line item. This transfer is to help pay toward an $82,000 project to topcoat a 2MG Clearwell (ground storage tank for finished water). This project was budgeted this year but due to several unforeseen failures additional funds have been used.
3. To appropriate $16,667 of General Fund Balance to the Airport Transportation Capital Projects. This appropriation represents the 10% local share of a $166,667 VISION 100 Grant from the North Carolina Division of Aviation. This grant will pay for the preparation of a Stormwater Pollution Prevention Plan (SWPPP) and a Spill Prevention, Control, and Countermeasures (SPCC) Plan. Both plans are mandated by the North Carolina Department of Environment and Natural Resources (NCDENR) and the North Carolina Division of Aviation. Runway Approach Obstruction removal and Land Acquisition are mandated by the Federal Aviation Administration (FAA) and the North Carolina Division of Aviation. The North Carolina Division of Aviation has approved $150,000 federal share under the Federal Aviation Century of Flight Authorization Act (VISION 100).
4. To transfer $1,882 to General Fund Contingency and $19,777 to the Transportation Capital Reserve Parking Fund from the Downtown Bus Station Project Bus Shelters and Construction line items. This transfer is necessary to close the project and return a total of $21,659 of unspent monies to the original
funding sources.
5. To transfer $12 to General Fund Balance Appropriated from the Brownfields Assessments Grant Salaries line item. This transfer is necessary to close the project and return a total of $12 of unspent monies to the original funding source.

Informational Items:
A. Report of Alderman Seaver’s Attendance at the 2011 Annual Catawba County Meeting Held in Hickory, NC; registration - $40.00
B. Report of City Manager Berry’s Attendance at the 2011 Annual Catawba County Meeting Held in Hickory, NC; registration - $40.00

New Business - Public Hearings:
1. Approve Amendment to Final Statement of Community Development Objectives and Projected Use of Funds for FY 2010 in the Amount of $70,000.00 - This amendment is for funds to be loaned to Habitat for Humanity of Catawba Valley for installation of a new roof for the new Habitat Store located at 1615 8th Street Drive, SE at a 3% interest rate for 20 years. These funds must be used for Community Development related programs and Hickory’s Community Development Department estimates that at least 51% of these funds will benefit lower income citizens within the City of Hickory. The Citizens’ Advisory Committee recommends approval of said amendment. Todd Hefner made the presentation where he went over the information above. The Council gave unanimous consent.


Recognition of Persons Requesting To Be Heard
1. Mr. Sam Glaberman of Union Square Emporium has requested to address City Council regarding some creative and invigorating ideas for downtown -

To Distinguished leaders of our community: This is a note with the basics for a project of a temporary ice skating rink for Union Square and the Hickory Downtown that would have enormous benefits for the downtown businesses and the greater Hickory area and once again make Hickory the center of commerce and excitement. This would have the added benefit of turning Union Square into an area more family oriented. I will be attending and speaking at your City Council meeting to help get your advice and thoughts

Cost of rink rental for 7 weeks ....11/21/11 - 1/9/12...................$78,600
Rental of a transformer to step up to 480 volts............................$2,500
Site preparation ( sand and leveling) .........................................$1,500 estimate
Elec. Hook up...........................................................................$1,500 estimate
Insurance...............................................................................$12,000 estimate ( rink co. said between $10-$12)
Lighting....................................................................................$1,000 estimate
Advertising...............................................................................$3,000 to include easels placed at hotels, restaurants, visitor centers etc.
A shed to keep the and rent the ice skates..................................$1,000 estimate
Payroll for the 7 week event.....................................................$10,000 very rough estimate
Electric consumption................................................................$10,500 (based on ave. consumption of 65,100KW per month @ $.08 per kw)
Total cost..............................................................................$120,600

Magic Ice USA would be responsible for the set-up on a flat area and complete take down and removal. They will also provide all the tools necessary as well as 300 pr. of ice skates which will allow for people to try on while waiting for ice time. Many of these costs might be offset or donated. Duke (Energy) could be approached to supply the electric, maybe city workers could prepare the site with sand and maybe even oversee it.

This would be a wonderful, uplifting venue for the greater Hickory area and provide a place for parents to bring their children and would truly be an exciting venue and a focal point for the entire area. It would give Hickory and Union Square a family oriented activity and help make a more family friendly identity for Union Square. It would also give a tremendous boost to restaurants and retailers at a time of year that drives shoppers to the Malls and would instead create a wonderful alternative that can help save the businesses downtown. The potential benefits are enormous for Downtown and the image of Hickory

Now the part of how would this be paid for as the rink etc. are all up-front costs. This project should at worst be revenue neutral and actually makes a profit in all the places I've looked into.

Using Charlotte as a template there used to be a wonderful skating rink in the Eastland Mall off Independence that closed when the shopping center did but far outlasted most of the stores in the center and was very successful. There are currently 3 ice skating rinks in Charlotte. Two are indoors and privately owned and the third, which is our model is operated by WBT radio for the last 7 years and is Downtown in the old Wachovia Plaza. WBT radio makes money each year on their rink as well as using this as their promotional centerpiece over the Holiday Season. They have actually started buying parts of the rink over the years to further reduce costs.

Mecklenburg County has approx. 913,000 residents and let's say for this scenario that 1/2 the potential users would prefer to use the WBT Holiday on Ice Rink which gives a possible usage of 450,000 people. WBT gets approximately 25,000 visitors to their rink in their same 7 week period. Imagine if we could get anything like that kind of response coming to the Downtown Hickory area. However only 17,000 people actually go on the ice. The charge is $7.00 for the ice and $3.00 for the rental of the skates. So the WBT rink itself takes in approximately $170,000.

I was going to use a figure for us in Hickory of 608,000 people which is Catawba and all counties that border on Catawba but was told that the Metropolitan Hickory statistical population that regularly shops and and comes to Hickory is more like 350,000. I will use the lower figure for comparisons. If out of 450,000 possibles in Charlotte, 17,000 are paid skaters for the WBT rink then we should have approx. 13,200 paid skaters. This would be approximately $132,000 which now covers ALL the costs...but it gets much better.

Charlotte has many sponsors that might be ours as well such as Duke Energy, Piedmont Gas, Wells Fargo..Amtrac actually bought them a Zamboni this season. These are some of the "Major" sponsors involved and most of those sponsors are the same companies involved heavily in the Hickory area and would think would be viable for us as well. I have also encountered Doctors, Dentists and real estate firms that would also like to be sponsors but at a lower level. The Magic Ice company can supply us with white or clear dasher boards around the rink that can be used with an applique for sponsors.I've also spoken with people that would like to rent the rink for a day or evening for their events . The Tap room has indicated they would want to be a sponsor as well. If this could be partially handled by the HDDA it could be their biggest moneymaker and would certainly rival Oktoberfest. This would be a real family event that would last 7 weeks as opposed to a few days.

I had thought that Charter was strongly considering being the Title sponsor however it was too late for this year for a big budget item.

Our reason for trying to do this is to help the failing Downtown and actually utilize and make Union Square a destination and give people something to do on Union Square. It will also as a family event counter some of the image that some people have of the Downtown area.

We are not alone in this venture...it has been tried and proven to succeed and draw people back to the Downtowns. Magic Ice is the company that does it for Charlotte and they do 23 other cities as well. This venue is working well in Charlotte, Greensboro, N.C.; Manassas Va., Knoxville,Tenn., Wintergarden, Fl., Tampa,Fla., and Greenville S.C. All thes other cities use another rental company.

The results of this venue are the same everywhere. Lot's of people, lot's of shoppers, and a wonderful image as well as great Usage for Union Square which was intended as a gathering place and focal point for Hickory. It will also give a necessary boost to retailers and businesses in the Union Square area that we desperately need.

Mr. Glaberman stated during his presentation that he is from New York and he doesn't know if that is a strike against him. He talked about the Emporium as an incubator to try their hand at business. He talked about Union Square not being populated the way that it used to be. He talked about the Farmer's Market discussion from the last meeting. He believes that Union Square should be a showcase for Hickory and the area, but there is nothing to do Downtown, except when there are events. Real Estate values have gone down a lot Downtown. He is an outsider and maybe that is good and maybe that is bad. What he has noticed is that there are a lot of vacancies Downtown.

Vacancies don't bring people down. Only businesses that are occupied bring people downtown. Friends of his from California mentioned to him what they had done when their city had the same problem. They instituted a vacancy tax on property owners who had persitent vacancies. Wherever they did that it seemed to be successful.

Another problem that they have, and he has been down there every day since he started his business, we have a lot of events Downtown and they are all centered around beer and that is fine, but we need to bring other people Downtown besides the beer crowd. We need families Downtown. They are good for business. Beer is good for certain types of businesses. he is not against beer and he is not against certain businesses. 95% of the people that come into his business don't come Downtown. They come down to do a little shopping sometimes, but they don't come to the events, because they are centered around beer. The shops Downtown are high end retailers, so we need events that will bring those type of people Downtown.

The Ice Skating idea is not a new idea and none of his ideas are new. This idea has worked in many Downtowns. he furnished pictures from Charlotte's Downtown Iceskating rink. Downtown needs a lift and is struggling. Downtown is the heart of hickory and he wants it to look like it did in the past and that is how he came up with the Ice Skating idea. It ends up being revenue neutral to making a profit. He needs to find a sponsor. He is asking for help to network with people in the area. He believes that putting heads together can make this happen.


The Hound appreciates this man's thinking. He is trying to create an atmosphere of Vitality Downtown and that is what creates a marketplace. I hope that he can find some sponsors that will help him attain the start-up cost to facilitate this. It would look so cool and create a memorable spectacle and that is most definitely something this City needs. Mr. Glaberman told me that his agenda is limited and simple...A great deal of his efforts are focused on "The Emporium" and trying to get enough people to walk in the door to give each vendor/partner a chance to test their products and business skills and to create a family atmosphere for the downtown Union Square area. This man is exactly what this city needs.

Comments by the Council - Alder Fox stated that she had seen a series on ABC this week that supported the buy local movement and Lee Industries, from Newton, was featured in one of the segments. Alder Patton stated that she had been at the small business task force meeting that morning, in which Northstar, the consultant, spoke about the craftsmanship and the pride our community has in that craftsmanship and our people.

Closed Session Per NC General Statutes - Discuss Litigation Matter – Glen Edward Chapman vs. Dennis Alvin Rhoney, the Estate of Mark Richardson Sams and City of Hickory – Case 1:10-cv-00258 - NCGS§143-318.11(a)(3)- Death Row Inmate Freed After 15 Years

The Dipstick Economy

Honestly, I'd rather say the other word, but I have promised not to. We are a nation held hostage by the 95% of the population that are either illiterate, gullible, naive, or clueless or a combination thereof. The sad part is that these people are so lost in their Pop Culture that they haven't a clue that they are being programmed to perform their own demise. What is even worse, is that the dumb masses will turn into an uncontrolled mob when it hits the fan.

We see a government that revised down GDP from 3.2% to 2.8% (4Q GDP Revised Downward * February 25, 2011). The dopes that were polled expected a revision upward. What world are they living in? These GDP numbers have a torchlight of several trillions of dollars that are supposed to energize the economy. The Hubris of the National Government creates conditions whereby when cooking the economic books that the cheating numbers are supposed to represent reality, when anyone with a few brain cells knows that they do not. Our lying eyes cannot hide what the soul fully understands. The Recession/Depression has never ended and the Presstitutes, as Gerald Celente has coined the media, always tries so hard to convince us of the Economic Recovery. They have been selling this shtick for 2+ years now and they have convinced no one but fools.

The media and the government keeps trying to sell this notion of 9% unemployment. Our local government in Hickory has already sent the message out that we have lost 47,000 jobs in our area. The actual number is (183,726 in July 2000 - 141,850 in November 2010 =) 41,876 jobs lost since the peak. This was a message that I first brought home before we went into the full blown economic collapse, nearly 27 months ago on December 8, 2008, in the article 24,493 Jobs Lost in the Unifour since June 2000 and again on July 6, 2009 in the article The Relevant Issue: 34,294 JOBS lost since July 2000 in the Unifour. We have lost nearly 7,600 more jobs since I presented the totals in July 2009.

The July 2009 unemployment rate was reported at 15.1%. The November 2010 unemployment rate was reported at 12.6%, yet we have lost at least around 7,600 more jobs. Does that make sense? Do you see what I am getting at? Should we not have gained jobs to improve the unemployment rate?

So they are cooking these numbers and they are cooking the inflation numbers. According to the sources I follow like John Williams of Shadowstats.com. Utilizing an old school statistical foundation, comparing apples to apples, he is showing a real unemployment rate of 22%+ and CPI-inflation of around 7 to 8%.

What we are seeing is that real unemployment is not including people that are not signing up and have left the workforce; not because they don't want a job, but because they can't find one. This is very important, because people on fixed incomes rely on Cost of Living adjustments to keep pace with real inflation as stated in the Consumer Price Index (CPI). I guess inflation is actually down because what a Ribeye cost a few years ago will purchase a can of ALPO in a couple years and we should be grateful for that.

What we see through this is a head forming. If older citizens can't make ends meet, then they must continue to work to supplement their pensions. We already see the government trying to play with pension capitalization, because these pension accounts have been underfunded for so long that the capital input sources can't possibly ever catch back up.

This increases the pressure on Work Force Job capacity, because there are not enough jobs being created already. If older workers don't retire, then younger workers won't be able to be initially placed. At some point in time people are going to come to a realization that there are a lot of people out here who currently are not or soon will not be able to make ends meet. This will cause a further degradation of the economy and no nipping and tucking at government budgets will have any effect on any of the shortfalls.

We cannot cut costs to create prosperity. We have to grow the economy. The only way to do that is by creating value through real ingenuity and innovation. We also have to protect American National Interests by protecting our job base. We cannot allow multi-national corporations to not take our nation's interest into account in their decision making. If they do not take the American national interest into account, then they should not be doing business here in America. Do you think China allows these corporations to do business there without China's approval and without negotiated agreements? Who do our Government Representatives represent? Do they choose to commit Soft Kill Treason? Because that is exactly what they have done!

Many people wonder why I don't just concentrate on Hickory stories. Well, if you put the pieces of the puzzle together, then you will see that each of these stories have an impact on how we live our lives locally and how we must play this game within the contexts and rules set forth by current Economic, Social, and Political Realities. The other thing you must realize is that we have laid out a path for this area to follow, but our local leaders have chosen to focus on putting out embers and cinders instead of attacking the blaze. This Economic Implosion Inferno is only going to continue to intensify until we start focusing on the real issues we face.

I will leave you with a Video from Charlie McGrath of Wide Awake News who gets right to the heart of the matter in addressing much of what I have espoused in this article and in the past. I have also left you with a hint of what is behind the real issues we face as a community, as a nation, and as a World headed towards chaos, turmoil, and destruction if the Light of the Force is not resurrected and allowed to shine.





My Goldman-Sachs question at the Town Hall meeting this morning
Free Enterprise versus the boys of Goldman Sachs