Welcome to the first edition of Deus Vult News [“DVN”]. Today is January 1,2012, New Years Day and here’s what’s happening.
GERMANY ON THE RISE:
Angela Merkel is faced with a problem. The German democracy gave up its sovereignty to the euro. Now German voters are demanding a return to the D-Mark. German voters have no problem reaching into their pockets to save German banks, however, that does not apply to the central banks of other countries.
Germany is not the type of country to cede self-governance to other European countries. The Euro appears to be dying, and the Germans are busy in their usual industrious way digging the Euro’s grave. The dollar, with all of it’s problems, is the worlds currency. King dollar continues to rule.
NORTH KOREAN LEADER KIM JONG IL IS DEAD:
Seoul – Kim Jong Il, the dictator who used fear and isolation to maintain power in North Korea and the threat of nuclear weapons to intimidate his neighbors has died. Kim’s death opens a new and potentially dangerous period of transition and instability for North Korea.
Kim who was 70 died from a heart attack during a train ride to review the outlying areas of North Korea. In 2009 Kim chose his youngest son Kim Jung Eun to replace him upon his death. North Korean state television showed scenes of weeping citizens and distraught news readers, pretending they would miss the dead despot.
BEIJING CONSIDERS EASING CASH RULES:
Beijing – China is weighing measures to enable it’s citizens to invest more overseas as part of China’s efforts to diversify the countries $3.2 trillion foreign-exchange reserves. The current road block is a fear that allowing the overseas scheme would result in massive capital outflows.
The State Administration of Foreign Exchange, (SAFE) the Chinese currency watchdog, and part of China’s central bank, is considering gradually expanding how much foreign currency Chinese citizens can purchase. The current limit is $50,000, per person annually. The new rules come as Chinese currency faces downward pressure against the U.S. Dollar. Chinese investors and businesses have lowered their expectation for a continued rise in the Chinese Yuan’s value, betting that slumping demand for exports will prompt Beijing to slow or even halt currency appreciation to help ward off unemployment in China.
The red state may soon be awash in red ink.
CHINA PRODS NORTH KOREAN CHANGE:
Yangi, China-When North Korea closed it’s frontier with China to visitors and trade after the death of Kim Jong Il, people braced for a long wait, tourists were stranded, business trips cancelled, food and oil deliveries frozen. Within 48 hours, however, many border crossings sprang open again, underlining the reality facing Mr. Kim’s son and successor, Kim Jung Eun.
The impoverished North can ill afford to close itself off for long from China-which has long been its economic lifeline. The swiftness with which the boarder was reopened highlighted a more recent dynamic. A variety of North Korean agencies and individuals have vested interests in expanding commercial links with China. The North Korean elite, have a vested interest, as analysts point out that such ties with China are a strong impetus for change within the world’s most isolated country.
China’s trade with North Korea has more than doubled since 2006, and Beijing’s investment in North Korea and Chinese border infrastructure has been rising. China, exports food and oil to North Korea, and North Korea exports copper, coal, and iron ore to China. China accounts for 70% of North Korea’s foreign trade, with Russia picking up the other 30%.
China has been pouring money into the Korean border area over the past two years in a bid to encourage North Korea to launch Chinese style market reforms. The impact of the Chinese influence is evident in the border town of Yangi. Many people in Yangi are amazed at the difference between this weeks death of Kim Jong Il and the death of his father Kim Il Sung in 1994. When the father passed North Korea came to a standstill as North Koreans were ordered to show “total grief.”
This time, the slogan is ‘Turn grief to strength’ and they’re paying much more attention to business and the economy. Stores and businesses in North Korea have resumed operations. The expansion of Chinese trade and investment has bound North Korea more closely to China-its only military ally and main aid donor-and unleashed economic forces that some experts predict will create great change in the future.
North Korean Companies has previously been forced to give all revenue to the government. Now with the Chinese reforms North Korea businesses are allowed to keep a 5% commission on all revenue. The new leader Kim Jung Eun is expected to be the figurehead of a government headed by his aunt’s husband, Jang Song Thaek, and several powerful military generals.
Will the Red in North Korea soon be replaced by the Green of Chinese capitalism?
CAPITALISM AND THE RIGHT TO RISE:
Congressman Paul Ryan recently coined a smart phrase to describe the core concept of economic freedom. “The right to rise”. If you think about it, it makes sense. We all talk about the right to free speech, the right to bear arms, and the right of assembly.
This is what economic freedom looks like. Freedom to succeed as well as to fail, [Free Will] and freedom to do something or nothing. Freedom of Speech means we put up with a lot of verbal and visual garbage in order to make sure that individuals have the right to say what needs to be said, even when it is inconvenient or unpopular. We forgive the sacrifices of free speech because we value its blessings.
Increasingly we have let our elected officials abridge our own economic freedoms through the annual passage of thousands of laws and regulations. We see human tragedy and demand a regulation to prevent it.
Have we lost faith in the free market system of entrepreneurial capitalism? Are we no longer willing to place our trust in the creative chaos unleashed by millions of people pursuing their own best economic interests [Free Will] ?
The right to rise does not require a libertarian utopia to exist. It requires fewer rules that are simpler and more outcome oriented. In Washington, D.C., rules are going in the opposite direction. They are exploding in reach and complexity. They are created under a cloud of uncertainty and years after passage nobody really can say if the rules even work.
We can continue on the road to ruin we are currently on, or make a change to individualism, before we waste a massive amount of the economy on government give away programs, that historically have been proven to fail. Next November you may decide if you wish to support the straight line approach of the statists, or the jagged line of a free economy.
No one can tell you in advance what what the jagged line will offer to 312 million people. Unless we are willing to explore the jagged line of freedom, we will be stuck with the straight line, and as we all know, a straight line, is a flat line.
MANDATED HEALTH INSURANCE IS UNFAIR:
Should all Americans be required to have health insurance? Obama care says yes, and the issue is now a core plank for the Republicans in November of 2012, and will soon be decided by the U.S. Supreme Court. Forcing everyone to buy health insurance that pays for the same amount of care everyone else gets, is neither fair nor equitable. If the mandate is upheld what will be next? What else will the average citizen be forced to buy via government mandate? Is anybody paying attention?
VACLAV HAVEL – REST IN PEACE:
Prague-Vaclav Havel, the Czech playwright and dissident who led his country’s Velvet Revolution against communism before becoming its president and, later, a global campaigner for human rights, political freedom and the environment, has died at the age of 75.
Jailed twice for his antigovernment activism in the 1970s and 1980s, Mr. Haval became the face of the opposition in 1989, helping to turn a student uprising into the endgame for the country’s Soviet backed regime. He was elected president in December of 1989.
A soft-spoken and pensive man, Mr. Haval was twice elected president of the Czech Republic after it separated from Slovakia in the peaceful dissolution of Czechoslovakia in 1993, and oversaw his country’s transition to democracy and its reintegration with the West.
Mr. Haval met the Dalai Lama, the exiled Tibetan spiritual leader, a personal friend who was visiting Prague, a week ago. In televised images of the pair, Mr. Havel appeared frail. The Dalai Lama said he offered Mr. Havel Tibetan medicine and counseled Mr. Havel to rest.
Mr. Havel’s embrace of the Dalai Lama and the cause of human rights in China angered the government in Beijing. Mr. Haval did not shy away from using his bully pulpit to campaign for greater political freedom around the world from Belarus to Myanmar.
Lech Walesa, the leader of Poland’s anticommunist Solidarity movement and later the democratically elected president of Poland, said Mr. Havel, was a political philosopher, who fought with his words and pen. In the 1960s, during a temporary thaw in political control, Mr. Haval staged his first plays and worked as a magazine editor.
In 1968 with the greater openness of the Prague Spring threatening the communists’ hold on power Soviet-led troops invaded and ushered in a return to a harder line. In the 1970s and 1980s the government, as punishment, sent Mr. Havel to work at a small regional brewery.
In 1977 Mr. Haval led a group of dissidents that drafted and published an open letter criticizing the communist leadership. Known as Charter 77, the letter spawned an eponymous antigovernment movement. Since leaving office in 2003, Mr. Haval focused much of his energy on organizing annual gatherings in Prague of politicians to discuss democracy.
In November 2007 he published “Leaving” his first play since 1988. A movie version premiered in March, 2011. The play is about a politician who grapples with changes around him after he leaves office.
The world has lost a giant. May he rest in peace. Deus Vult.
2011 DISASTER LOSSES CAUSED $350 BILLION IN DAMAGE:
Insurers, businesses, governments and private citizens face a record $350 billion is damages from disasters which plagued the globe this year. Japans powerful tsunami, earth quakes in New Zealand, floods in Thailand and a series of severe tornadoes in the United States contributed to the costliest year of catastrophes on record. The total damage of $350 Billion was insured for only $108 Billion, meaning the people and firms suffering the losses are $242 Billion short of coverage. Experts say the total damages may go higher as flood waters recede and damage in Japan currently buried under rubble is uncovered.
LAWMAKERS GRILL CORZINE AT HEARING:
John Corzine, former U.S. Senator, and Governor of New Jersey, claims he has no idea what happened to $1.2 Billion dollars missing form MF Global the company he ran. Lets watch and see what happens in this case. There are people doing 30 year federal prison terms for only stealing $1.2 Million, Bernie Madoff is doing 120 years. Grace bets John Corzine never sees a pair of handcuffs.
THINK GRACE NUTRITIONALS [TGN]:
The Deus Vult Fellowship in New York City is organizing a new entity called Think Grace Nutritionals, [TGN]. TGN will offer a complete line of vitamins and supplements for sale to the public. TGN Nutritionals is anticipated to launch in 2012. TGN will provide “Fellowship Members” – participation limited to “Fellowship Members” only – who desire their own home based income opportunity an excellent source of earnings, without any up front cost. Future editions of DVN News will provide full details as TGN nears its launch date.
Happy New Year 2012.
Never Forget: It makes no sense dying on a small cross.
Grace be with you.