Homeless Senator Dan Newberry
One of the cool things about this newsletter is that it spreads all over Oklahoma and on occasion when we run a story it reaches someone with inside information that allows us to dig a little deeper into a controversy. Such was the case with the Homeless Senator Dan Newberry story that we ran on June 24th. Homeless Dan and his wife had been served with foreclosure papers after refusing to pay their mortgage since September of 2011. The court documents showed that over $400,000 was owed or past due on the couple’s home.
We had bits of information on Homeless Dan’s plans to keep a roof over his head that referred to his “new place”. Silly conservatives that we were we assumed that Homeless Dan was wheeling his overstuffed grocery cart under a new bridge or that he had scored a new cardboard refrigerator carton, hopefully a Sub Zero 42” carton. With the Capital being open 24/7 perhaps Homeless Dan was living out of his car or had moved into his Senate office. Or perhaps Homeless Dan had found a new crib in the low rent part of his district and had scraped up the first and last month’s rent. But it turns out that how an average citizen might deal with a financial emergency and how a state senator might deal with a financial emergency are two totally different things.
It turns out that Homeless Dan has been building a new home at 4843 S 81 AV W TULSA 74107 and it might be right next door to his current home, the one that he stopped making payments on. Property records show that the property to the south of his foreclosed home was transferred from one of their neighbors, Gary Patton, 4721 South 81st West Avenue, Tulsa, OK, to the Newberry’s right before Homeless Dan stopped paying his mortgage.
Homeless Dan's new home
Might want to fix some shingles
Gary Patton is a wedding photographer that lived in the home directly to the North of Newberry. Patton had purchased a lot with a burned out hulk of a home from Michael Max in 2010, paying $21,000 according to county tax records. Patton transferred the same lot in August of 2011, one month before Homeless Dan stopped paying his mortgage. According to the county tax records the lot was transferred without payment, a $0 transaction, making one wonder if someone paid Mr. Patton to hand over the $26,000 lot.
One of the contractors working on Homeless Dan’s new home sent word to us that the new home is luxurious and “extremely large”, and after hearing about our story on Homeless Dan’s foreclosure some of the contractors are puzzled about where the money is coming from and no doubt some are worrying about getting paid at the end of the job. Something stinks though, by refusing to pay his mortgage payments Homeless Dan has saved around $34,000 but that isn’t a tenth of the money needed to build a new home.
Where is the money to build this new mansion coming from? Homeless Dan and his wife took out the mortgage on the home on the 19th of Feb 2009 then both Homeless Dan and his wife had declared bankruptcy on Feb 5th 2010. They exited bankruptcy court in May of 2011 (Northern District of Oklahoma case 10-10267-M). Not likely they got a construction loan after a bankruptcy and while not paying their current house payments and if they had any savings before they would have lost most everything after their bankruptcy.
Something stinks at 4823 S 81 AV W. People don’t give away $26,000 lots and people going through bankruptcy and foreclosure don’t get construction loans to build new homes. We are going to be watching Homeless Dan and doing a bit of digging around.
One of Campaign for Liberty’s main issues is Audit the Fed, an effort to get the federal government to look into the private bank that issues our currency. Created in 1913, the Federal Reserve is the central bank of the United States and has a monopoly over the creation and flow of both paper money printed and the flow of credit. Since the creation of the Federal Reserve bank in 1913 the dollar has lost over 95% of its purchasing power through created inflation brought about by printing massive amounts of new money while Congress sits on its hands and keeps their eyes averted. Without the Federal Reserve the government couldn’t overspend or have a sixteen trillion dollar national debt. When testifying before Congress in 2009 Fed Chairman Ben Bernanke refused to disclose what banks received the trillions of dollars in bailout funds and loans.
The Fed is minimally audited by outside agencies but the audits are of limited scope and don’t include looking at arrangements with foreign banks and governments. THE Government Accountability Office (GAO) has the authority to audit but it is severely restricted from looking at issues that affect the strength of the dollar or the health of the banking system. The GAO can’t audit transactions with a foreign central bank, a foreign government, or an international financing organization. They can’t audit the decisions, deliberations, or actions on monetary policy matters such as the discount window operations, looking at the reserves of member banks, securities, interest paid on deposits, or any open market operations. All of the discussions and communication between the Federal Reserve Board members and between the Federal Reserve employees are off limits.
During the Nixon administration U.S. Treasury Secretary John Connally made it clear before a group of European finance ministers that the dollar "is our currency, but your problem” and that American inflation would continue to be exported. But one of the misconceptions about inflation is that it is 100% due to the Federal Reserve printing money.
The banking system creates its own money actually and inflation increases as the amount of money in the system increases. Let’s say that farmer John sells a wheat crop for $100,000 and places the money in his checking acount. Due to the small reserve requirements his bank can immediately loan out another $90,000 while keeping $10,000 in “reserve”. Let’s say they loan that $90,000 to car dealer Carl who deposits the $90,000 in his checking account, allowing the bank to loan out $81,000 to homeowner Homeless Dan who in turn deposits the cash and allows the bank to loan out another $72,900. In four or five loan transactions the original $100,000 turns into a half million dollars in loans. The bank pays a paltry interest on the first $100,000, maybe some in the checking accounts, and collects heavy interest on the $500,000.
When the economy contracts the lending slows or stops and the cash cow begins to run dry. Without the Ponzi scheme in place the Federal Reserve System would collapse. So to survive the Federal Reserve prints more money and gives it to the bank. Yeah, they keep record of who “gets” the newly printed money and they charge a tiny percentage in interest but as long as the bank can loan money it can collect interest on five to ten times more “money” in loan interest.
Inflation is high right now but it will skyrocket once the economy gains momentum with all the trillions and trillions in newly printed money floating around the world. Remember that inflation isn’t rising prices, it is the falling of the purchasing value of the money. Back in 2001 I could buy a sheet of ¾” MDF for building cabinets for $11.00, now it is over $32.00 so the value of our dollar has dropped by 290%.
But as we a reported last month, the U.S. House will vote on Congressman Ron Paul’s HR 459, the Audit the Fed bill this coming Tuesday, July 24th. The vote will be under a “suspension of the rules” so they can’t water it down but instead of taking a simple majority to pass it will take 2/3rds to pass. So please contact your U.S. Representatives today and demand that they vote “yes” on HR 459.
Rep. Tom Cole
D.C. office (202) 225-6165, Norman 405/329-6500, Lawton 580/357-2131
Washington D.C. 202/225-2211, Tulsa 918/749-0014, Bartlesville 918/749-0014
D.C. office 202/225-2132, Oklahoma City office 405/234-9900
D.C. office 202/225-2701, Muskogee 918/687-2533, Claremore 918/341-9336, McAlister 918/423-5951
D.C. office 202/225-5565, Canadian County 405/373-1958, Woodward 580/256-5752, Stillwater 405/624-6407
Senate District Race:
Down Low Versus Liberty Minded Retired Trooper?
Or so they say in North Tulsa…. It would seem that Representative Jabar Shumate either has some skeletons in his closet or is coming out of the closet if you are to believe the tongues a-wagging in North Tulsa. Rumors of Rep. Shumate being “light in the loafers” are buzzing around after comments began surfacing during the Democratic primary. Now the Tea Party doesn’t take a position on the gay issue, preferring to live and let live as long as there are no special rights given to the gays, all deserve to live in freedom and prosperity, just keep the details of what churns your butter to yourself.
But to the black community in Senate District 11 it appears to be a huge issue as historically the black community isn’t as tolerant of their own that are “down low”, a slang term for black men that sleep with women and with men. Black leaders in particular become incensed when the gay movement equates their struggle with the Civil Rights Movement of the sixties.
Rep. Shumate’s alleged reputation might be undeserved, either arising from political dirty tricks in the Democratic primary or it might have been hung around his neck after former Senator David Boren took a shine to him and hired Shumate as his press secretary even though Shumate had zero experience in the field. Shumate is quoted in this internet expose of “Strange hiring practices at OU” where it is alleged that former Senator Boren is a knob gobbler, not that there is anything wrong with that… that likes to surround himself with nubile young men according to campus gossip. (Did I just write knob gobbler? Oh, the emails that one is going to generate). Numerous internet sources claim that former Senator David Boren is gay.
Rep Shumate married last year to Jillian Leggett Shumate, causing the rumors to change to include charges of Mrs. Jillian to be “funny” as well.
As for the Tea Party, we really can’t sort out whether Shumate is a twinkie but the issue might make a difference in the November general election. Shumate’s opponent is Republican Dave Bell a medically retired state trooper and a thoroughly conservative patriot. Dave won’t draw the big State Chamber money like Shumate will so it is a David and Goliath race but if Bell manages to win the seat the Senate will become extremely entertaining because Dave calls things as he sees them and you’d sooner talk a swarm of hornets into backing down before you got Dave to violate his values. Dave is a solid supporter of Open Carry, constitutional rights, and believes in holding law enforcement officers accountable for their actions if they get out of line.
Regardless of the facts it will be an interesting race this summer. We will put out an issue of the Oklahoma- Guardian newspaper in Senate District 11 in early fall.
State Chamber Outlines General Election Plan
Factio, an old Roman word that refers to a chariot team organized by a private company for arena competition. Not unlike modern sport franchises each team had a unique brand or color and each garnered as much loyalty and passion as a modern sports team. The modern term “faction” came from factio, and things really haven’t changed from the days when men in chariots raced around an arena trying to force their opponent into an outer wall.
In politics there are always factions, different groups within the larger organization with their own ideas on how things should be done, and we have found over the last three years that the public interest’s largest opponent, the State Chamber of Commerce, is no different. As large and as powerful as they are it would be much worse if not for the inside sources that keep us aware of what their plans are and who they are targeting.
Last week sources reported that a State Chamber meeting covered their updated plans for the rest of the election season. After losing the bond issues and Obama Care to conservative forces in the 2012 legislative session they had threatened to change tactics. One source said that they are completely fixated on Sequoyah County Representative John Bennett and spent the majority of the meeting time discussing plans to take Bennett down in the November general election by supporting Bennett’s Democrat opponent, Rick Agent.
No doubt they intend this as a thinly veiled threat to the Republican majority, hoping to bring enough of them back in line by threats of abandonment or outright funding challengers. Anyone on that isn’t perceived as on their side is to be labeled as “anti business” or “pro trial lawyer”. What is going to be interesting is how they manage to pull off this trick of labeling opponents pro trial lawyer when the Democrats they are counting on are actually supported by Democrat trial lawyers.
In the Sallisaw race, Democrat Rick Agent has already gathered tens of thousands of dollars from trial lawyers, businessmen, nursing home operators, and bail bondsmen. The former Sequoyah County Representative, Glen Bud Smithson, was an early supporter and contributor of Mr. Agent, indeed the report is that the two have been close for years, allegedly as drinking buddies. Agent was a campaign contributor to Smithson as well in previous years.
Mr. Agent’s family has run a funeral home for decades in Sallisaw and Muldrow and the family itself is highly respected. Rick Agent himself is known more as a black sheep, allegedly addicted to gambling and alcohol, and after growing up in Sequoyah County I can tell you that few of the residents will not be aware of the gossip. The Oklahoma-Guardian will run for several months in the county but we will focus more on John Bennett’s excellent representation of the people of Sequoyah County than on the reputation of his challenger. Still the State Chamber will likely pour thousands of dollars into the attempt to unseat Bennett after naming him #1 on their ten most wanted list in 2011.
The State Chamber didn’t do so well in their last project, the initiative to monitor and rate judges as “anti business or pro business”. Even the Tulsa World questioned the wisdom of that idea. Eventually things will reach a tipping point to where their money can’t override the accompanying cost of becoming known as one of their stooges and I think that the majority of the Senate and the House got there in the 2011-2012 legislative season. Our job is to keep educating the voters, causing political pain and embarrassment for the RINOs, and supporting the decent men and women at the Capitol that still understand who put them there in the first place.
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Audit the Fed Vote on Tuesday