FedUpUSA

Archive for the ‘Government’ Category

Taunting Taxpayers

Americans are cutting back to make it through the recession, but members of Congress aren’t.

American families and businesses alike have been tightening their belts during hard times. They’ve been doing more with less, or simply doing without.

Meanwhile, in the Wonderland that is Washington, D.C., members of Congress have been letting their belts out. As South Florida’s Sun Sentinel recently reported, federal lawmakers voted themselves a 5 percent increase in their own budgets last year. They spent those taxpayer dollars for staff salaries — sometimes in six figures — office expenses and perks. In Florida’s delegation, the perks included chauffeured car trips, pricey auto leases and an office aquarium.

This hike in congressional budgets not only came at a time when ordinary Americans were hurting. It happened in a year when the federal government was running a record deficit, and inflation had leveled off.

Florida’s two U.S. senators have annual budgets for office expenses of more than $4 million each, while the state’s 25 House members each get about $1.5 million. When their budgets are combined with their Senate and House colleagues’, the total of less than $2 billion almost gets lost amid this year’s $3.6 trillion federal budget and $1.6 trillion projected deficit. Cutting congressional office expenses won’t balance the budget.

But when lawmakers refuse to hold themselves back in tough times, it sends a message to struggling Americans: Sacrificing is for suckers.

Consider these office expenses last year from Florida House members:

Democrat Corrine Brown of Jacksonville, who represents a district where the per capita income is only two-thirds of the U.S. average, spent almost $8,000 last year for herself and her staff to ride in chauffeured cars or SUVs.

Democrat Ron Klein of Boca Raton, a self-described deficit hawk, increased his office spending by $30,000.

Democrat Alcee Hastings of Miramar spent the most on staff. He paid two of them — one his longtime girlfriend — about $160,000 each. Both fell just below the $168,000 limit for congressional staff salaries.

Republican Mario Diaz-Balart of Miami leased a Honda Odyssey minivan for $803 a month.

Republican Tom Rooney of Tequesta spent almost $2,500 on an aquarium in his office. He also spent $628 on bottled water.

Among Florida’s House members, the top 10 office spenders last year were split evenly between Republicans and Democrats. The group included four members whose districts cover parts of Central Florida: Republicans Ginny Brown-Waite of Brooksville and Cliff Stearns of Ocala, and Democrats Alan Grayson of Orlando and Ms. Brown of Jacksonville.

Republican Adam Putnam of Bartow was the most frugal member of Central Florida’s delegation. His office spent just 76 percent of its budget allotment.

A year ago House Republican leader John Boehner of Ohio called for a freeze on federal spending. He argued that it was time for Washington, D.C. to “lead by example.” Some example. Mr. Boehner’s office reportedly spent almost $25,000 on catering in last year’s third quarter. During the same period, the office of Democratic House Speaker Nancy Pelosi of California spent almost $3,000 on flowers.

Some combination of tax increases and spending cuts looms ahead for Americans if the deficit is to be brought under control. Members of Congress will have no moral authority to ask those sacrifices from Americans if they don’t starting making more of their own.

See what your rep is up to: Legistorm has staff salaries, earmarks, financial disclosures, foreign gifts, trips (and who paid for them) and a rating on all members of Congress:

http://www.legistorm.com/

Squeezing the Last Drop of Productivity from the American Working Class – 18 Percent National Underemployment and why Wall Street and the Government are Cheering Your Financial Failure.

Posted by mybudget360

The American financial press cheered on Friday when “only” 36,000 jobs were lost in February.  This if you haven’t noticed now passes for good economic news.  The unemployment rate remained unchanged because the actual workforce continued to show a decline yet Wall Street somehow viewed this as positive developments.  And why not?  The middle class is under assault from every angle.  Things are so twisted with propaganda that many Americans now believe that the banking elite are actually looking out for the well being of American workers.  As news of the job losses somehow echoed as positive developments, more and more Americans are continually being kicked out of their homes from banks they helped to bail out.  Irony has no meaning to Wall Street.

And if we look at the details of the jobs report, it turns out that 17.9 percent of Americans are either unemployed or underemployed or flat out have stopped looking for work:

Source:  BLS

This wasn’t the only spin going on in the media.  Before the jobs report came out there was a preemptive flow of information trying to justify the job cuts by blaming it on the weather.  Yes, now instead of blaming the financial catastrophe on the actual perpetrators in Wall Street who systematically looted the American system and turned our economy into a giant casino that they leeched onto, we are now to believe people are losing their jobs because of the weather:

“(CNSnews) Ahead of Friday’s announcement, Goldman Sachs predicted that the storm might skew the job loss number by as much as 100,000 – a prediction that was embraced by officials in the Obama administration.

“The blizzards that affected much of the country during the last month are likely to distort the statistics,” Larry Summers, director of the White House’s National Economic Council, said in an interview with CNBC. “So it’s going to be very important … to look past whatever the next figures are to gauge the underlying trends.”

If the storm caused a skewing of job loss numbers I wonder how many job losses can be linked to Goldman Sachs and their casino style gambling in the derivatives markets and mortgage backed securities?  Then again, people should be happy that the unemployment rate remained steady at 9.7 percent even though more Americans are working part-time with no benefits and many others have simply fallen off the payrolls.  This is supposedly the new American dream for the middle class through the eyes of Wall Street who are selling capitalism but living in a world of corporate handout socialism.

There is a new show called Undercover Boss where a CEO goes undercover to work in the trenches with the proletariat.  As it turns out, the middle class is being worked to death and as we all know, the CEO can’t even do the job most workers do on a daily basis.  Even Henry Ford understood the interworking of the cars he was putting out.  In the end the CEO reveals his identity and gives a nice little handout to the worker and all is well in TV land.  The check is a token of what CEOs actually make.  This is the ultimate reflection of our trickle down economy where those at the top act like sociopaths and rulers of the universe but when it comes to doing the daily tasks of their company, they have no clue.  This is the de facto rule running on Wall Street.  In fact, CEO pay has grown outrageously over the past few decades as the middle class has gotten poorer:

Source:  American Progress

In reality, part-time employment has spread even to poor CEOs making 300 to 400 times the average American worker salary.  Poor CEOs and Wall Street executives need time off to enjoy their tax payer funded yachts and all expense hedonism trips to the Caribbean.  They would like to convince each other that the money they have is all through their will power and market prowess but in reality it is nothing more than being part of a corporatocracy and buying out the government with an army of lobbyist and insiders.  You have to be a self indulgent narcissist to take the economy to the brink of financial destruction in the case of many Wall Street firms and still reward yourself with outrageous bailouts.  The fact that average Americans are still not protesting in mass about this tells me that many actually believe what Wall Street is saying.  You see this when many would rather blame the working class for the ills of today than focus their energy where it really needs to go.

Wall Street loves this economic crisis.  They receive trillions in bailouts yet convince the public that what is occurring today is merely the “market” correcting itself.  So as most Americans have more and more troubles keeping up with their daily bills, companies are squeezing every little excess from those currently working.  Those that have jobs out of fear will work harder and probably demand less merit increases in the current economy.  After all, the head guy is only making 300 times what you make even though he can’t even understand the main function of the organization.  So what if the low level guy is selling toxic crap to some homeless person with no income and giving him access to a $500,000 loan.  These Wall Street tycoons are big picture thinkers and can’t be worried with the day to day operations of the proletariat unless it means turning it into a caricature for mass viewing and quick TIVO access.

You don’t think productivity actually increased?  Take a look at this:

Source:  BLS

This recession has been fantastic for productivity.  Just look at the above chart.  American workers have been doing their part during this recession.  After all, now you can hire a cadre of “contract” workers and not have to pay them one cent in healthcare support or even contribute to their pension.  Once the job is done you can kick them to the curb.  After all, this is capitalism so long as those at the top have managed to setup sweetheart deals and golden parachutes.  This is how the top 1 percent makes sure their hold on 40 percent of the nation’s wealth isn’t damaged.  And if you think financial institutions deserve this bailout money and their outrageous bonuses then companies like Circuit City or Mervyns would still be around today if that model applied across the board.  But this doesn’t apply to the general economy.  This applies to Wall Street and somehow the absurdity of it all still goes on.  The worst financial crisis since the Great Depression and not one solid reform has been enacted.  26 months of job losses and nothing.  Who is running the show?

The rise of the part-time work force is nothing new as we become more and more like Japan.  Japan bailed out their financial institutions after their failed stock market and real estate bubbles popped and today, their working class is made up of one-third part-time workers:

“(LA Times) In the world’s second-largest economy, the global financial crisis has forced part-time workers such as Kudo to face a harsh new reality.

Over the last few years, temporary employees have gone from being a rarity in Japan to accounting for one-third of the workforce of 67 million. They enjoy far fewer protections than full-time workers — placing their necks squarely on the layoff chopping block.

By March, the government predicts, 85,000 part-timers will fall prey to haken-giri, or temporary-worker cutbacks — a relatively small number compared with U.S. layoffs but high for a nation where job security has long been a staple.

On Wednesday, embattled Prime Minister Taro Aso made the plight of part-timers a major piece of a proposed stimulus package. Aso pledged to create 1.6 million jobs, partly by turning part-time jobs into full-time ones.”

Japan’s headline unemployment rate is 4.9 percent.  Just like our headline unemployment rate, the devil is really in the details.  If we continue on this path part-time work may be all that is left.

Now Seniors Get To Feel The Bezzle

Posted by Karl Denninger

Who really governs America? The United States government or the banks? Most believe the government but some say all you have to do is follow the money and you will see that Wall Street is behind it all. 

Always follow the money.    Damon Vrabel, army veteran,  Harvard business school graduate, former Wall Street employ explains:

See What $1.6 Trillion In Deficits Buys?

Posted by Karl Denninger

Elizabeth Warren: Why Washington Is Not Reforming the Financial System

Elizabeth Warren Discussing the Lack of Bank Reform on the Bill Maher Show.

“The problems could not be more obvious, and quite frankly, the solutions are just about that obvious, but we just can’t seem to get the two together…The reason that we are not changing things right now is because the banks have lobbyists in Washington in numbers I have never seen…People who just want to advocate for American families, people who want some changes to level the playing field do not have that kind of lobbying power. And so what we are really watching here is a David and Goliath story.”

The Middle Class Two Income Trap – Two Breadwinners plus Extra Money to support the Banking Industry. How Middle Class Americans are losing Ground by Supporting the Financial Sector.

Posted by mybudget360

If it isn’t enough that average Americans are contending with the rising cost of healthcare, education, and daily necessities like food now additional funds are going directly to the banking sector to keep them propped up like a money loving puppet.  Since the Great Depression the rise of the middle class has been the envy of many people around the globe.  The ability for hard working Americans to have access to an economy that supported them so long as they worked hard and followed an implicit guarantee with their nation.  With this implicit guarantee it was assumed that the government would also protect people to a certain degree especially when it came to their financial well being.  This did not assure a winning portfolio but it did mean we wouldn’t turn our stock market into a giant game of casino where the connected had a loaded deck.  Much of the strong regulatory arm that came from the Great Depression was because of the speculative gambling during the Roaring 1920s.  Yet as time went on slowly Wall Street took these structures away and now we are finding ourselves once again with the middle class largely at risk in the United States.  It isn’t by accident we are in the situation we are in today.

The first important thing to understand is that yes, the income of middle class families has gone up since the 1950s but a large part of this was the rise of the two income households with women entering the workforce:

The above chart is disturbing in many ways because it bucks the nearly 50 year long-term trend of employment.  Now, even with two income households many with rising job losses are finding they now have to make it with one income while inflation has eroded their buying power over the decades.  In this recession 3 out of 4 job losses have been men.  If you have any doubt regarding the insidious nature of inflation I put together a chart looking at various costs over the last few decades:

Part of this is due to the Federal Reserve and U.S. Treasury trashing the U.S. dollar over the decades.  For example, in 1950 it took the median household income (which was largely a one income household) about 2 times the annual household income to purchase the median priced home.  In 2008, it took the median household income (now largely a two income household) four times annual earnings to purchase the median priced home.  In fact, the two income household has hidden a large part of how much the middle class has fallen behind in this country.  Now with this recession, the deep cracks are now being exposed in the system.

Income inequality has also risen in this country and a large part of it is due to the financial sector.  1 percent of our population control 42 percent of all financial wealth.  In fact, in the last decade the only segment of our population that has seen any sizeable gains in true wealth is the top 1 percent.  Every other category has seen a loss of housing net worth, wage stagnation, and higher costs for daily items that consume a larger part of their budget.  Just take a look at the chart below showing this change:

Source:  CNN

The above is looking at a one income household in 1973 versus the two income household in the 2000s.  It is interesting to note that in the 1970s Nixon took the dollar into a purely fiat system and since that time, the dollar has lost much of its actual value.  This would be expected.  The Federal Reserve with its banking lieutenants has been able to put our country so deep into debt that realistically we are in a position of never paying back all our outstanding obligations.  The only way out is via inflation and with a fiat system that is the path we are heading down.  This is important because when you look at the charts above prices rise for various reasons and inflation is a hidden tax.  No need for higher taxes to bailout the banking sector when you can just destroy the purchasing power of middle class Americans by monetizing enormous amounts of debt as we have done.

That is why in the next decade, Americans are now working for someone else beyond their immediate household.  A large chunk of their money is now going to the banking sector.  This can be in absurd payments to credit card companies, loss of purchasing power because of the Fed, or other hidden methods of taxing the public.  We are really at a crossroads for the middle class.  If we dissect the data further we realize that even though things cost more, much of it has been financed through debt:

Ironically the family in the early 1970s had more discretionary income than the family in the early 2000s even with a dual income.  Yet if you look around, it isn’t immediately apparent because of the massive debt bubble financed by the banking sector.  Sure people bought bigger homes and newer cars but all this was under a phony veneer of success and was financed with debt.  All of it was built around a mountain of debt.  Yet here is where the big divide hits.  Middle class families are now losing their homes through foreclosure.  Many are having their cars repossessed because they can’t make their payments.  Bankruptcy filings are soaring because people cannot service their debt.  So middle class Americans are paying the price with the rules that are setup.  Yet banks are not.  They are sucking the American taxpayer for all their horrible bets and are not dealing with the ramifications of their actions.  In other words, the bill is going to the middle class as the middle class is dealing with their own bad decisions.  This is part of the system built around the corporatacracy model of government.  Losses are socialized while gains are privatized.

And don’t kid yourself, this entire game was financed on debt:

And the small group of banks at the top now control a large portion of all FDIC backed assets in our country:

Source:  FDIC, Bank Financial Statements

Forget about the Republican or Democrat parties, we are being governed by the financial sector of this economy.  It is amazing how hard it is to get sensible legislation even after this great calamity.  To prove this point, in California an insurance company announced they are hiking healthcare premiums by 30 percent in the midst of this recession even though they pulled in billions in profits.  The government will sit back and let the middle class get fleeced because they are part of the problem.  They speak a good game but are bought by the industry.  Prove us wrong if this isn’t the case.  Enough talk, time for action.  From now on we need to focus on who is delivering results.  If you can, take you money out of the big banks and put them in local regional banks.  Let your local representatives know that their number one priority should be focusing on protecting our struggling middle class.  Time to get some real reform or we really risk losing our middle class.

Uh, This Is Not Good

Posted by Karl Denninger

Tea Party Lights Fuse for Rebellion on Right

A Tea Party rally in Washington in September.

By DAVID BARSTOW

SANDPOINT, Idaho — Pam Stout has not always lived in fear of her government. She remembers her years working in federal housing programs, watching government lift struggling families with job training and education. She beams at the memory of helping a Vietnamese woman get into junior college.

But all that was before the Great Recession and the bank bailouts, before Barack Obama took the White House by promising sweeping change on multiple fronts, before her son lost his job and his house. Mrs. Stout said she awoke to see Washington as a threat, a place where crisis is manipulated — even manufactured — by both parties to grab power.

She was happily retired, and had never been active politically. But last April, she went to her first Tea Party rally, then to a meeting of the Sandpoint Tea Party Patriots. She did not know a soul, yet when they began electing board members, she stood up, swallowed hard, and nominated herself for president. “I was like, ‘Did I really just do that?’ ” she recalled.

Then she went even further.

Worried about hyperinflation, social unrest or even martial law, she and her Tea Party members joined a coalition, Friends for Liberty, that includes representatives from Glenn Beck’s 9/12 Project, the John Birch Society, and Oath Keepers, a new player in a resurgent militia movement.

When Friends for Liberty held its first public event, Mrs. Stout listened as Richard Mack, a former Arizona sheriff, brought 1,400 people to their feet with a speech about confronting a despotic federal government. Mrs. Stout said she felt as if she had been handed a road map to rebellion. Members of her family, she said, think she has disappeared down a rabbit hole of conspiracy theories. But Mrs. Stout said she has never felt so engaged.

“I can’t go on being the shy, quiet me,” she said. “I need to stand up.”

The Tea Party movement has become a platform for conservative populist discontent, a force in Republican politics for revival, as it was in the Massachusetts Senate election, or for division. But it is also about the profound private transformation of people like Mrs. Stout, people who not long ago were not especially interested in politics, yet now say they are bracing for tyranny.

These people are part of a significant undercurrent within the Tea Party movement that has less in common with the Republican Party than with the Patriot movement, a brand of politics historically associated with libertarians, militia groups, anti-immigration advocates and those who argue for the abolition of the Federal Reserve.

Urged on by conservative commentators, waves of newly minted activists are turning to once-obscure books and Web sites and discovering a set of ideas long dismissed as the preserve of conspiracy theorists, interviews conducted across the country over several months show. In this view, Mr. Obama and many of his predecessors (including George W. Bush) have deliberately undermined the Constitution and free enterprise for the benefit of a shadowy international network of wealthy elites.

Loose alliances like Friends for Liberty are popping up in many cities, forming hybrid entities of Tea Parties and groups rooted in the Patriot ethos. These coalitions are not content with simply making the Republican Party more conservative. They have a larger goal — a political reordering that would drastically shrink the federal government and sweep away not just Mr. Obama, but much of the Republican establishment, starting with Senator John McCain.

In many regions, including here in the inland Northwest, tense struggles have erupted over whether the Republican apparatus will co-opt these new coalitions or vice versa. Tea Party supporters are already singling out Republican candidates who they claim have “aided and abetted” what they call the slide to tyranny: Mark Steven Kirk, a candidate for the Senate from Illinois, for supporting global warming legislation; Gov. Charlie Crist of Florida, who is seeking a Senate seat, for supporting stimulus spending; and Meg Whitman, a candidate for governor in California, for saying she was a “big fan” of Van Jones, once Mr. Obama’s “green jobs czar.”

During a recent meeting with Congressional Republicans, Mr. Obama acknowledged the potency of these attacks when he complained that depicting him as a would-be despot was complicating efforts to find bipartisan solutions.

“The fact of the matter is that many of you, if you voted with the administration on something, are politically vulnerable in your own base, in your own party,” Mr. Obama said. “You’ve given yourselves very little room to work in a bipartisan fashion because what you’ve been telling your constituents is, ‘This guy’s doing all kinds of crazy stuff that is going to destroy America.’ ”

The ebbs and flows of the Tea Party ferment are hardly uniform. It is an amorphous, factionalized uprising with no clear leadership and no centralized structure. Not everyone flocking to the Tea Party movement is worried about dictatorship. Some have a basic aversion to big government, or Mr. Obama, or progressives in general. What’s more, some Tea Party groups are essentially appendages of the local Republican Party.

But most are not. They are frequently led by political neophytes who prize independence and tell strikingly similar stories of having been awakened by the recession. Their families upended by lost jobs, foreclosed homes and depleted retirement funds, they said they wanted to know why it happened and whom to blame.

That is often the point when Tea Party supporters say they began listening to Glenn Beck. With his guidance, they explored the Federalist Papers, exposés on the Federal Reserve, the work of Ayn Rand and George Orwell. Some went to constitutional seminars. Online, they discovered radical critiques of Washington on Web sites like ResistNet.com (“Home of the Patriotic Resistance”) and Infowars.com (“Because there is a war on for your mind.”).

Many describe emerging from their research as if reborn to a new reality. Some have gone so far as to stock up on ammunition, gold and survival food in anticipation of the worst. For others, though, transformation seems to amount to trying on a new ideological outfit — embracing the rhetoric and buying the books.

Tea Party leaders say they know their complaints about shredded constitutional principles and excessive spending ring hollow to some, given their relative passivity through the Bush years. In some ways, though, their main answer — strict adherence to the Constitution — would comfort every card-carrying A.C.L.U. member.

But their vision of the federal government is frequently at odds with the one that both parties have constructed. Tea Party gatherings are full of people who say they would do away with the Federal Reserve, the federal income tax and countless agencies, not to mention bailouts and stimulus packages. Nor is it unusual to hear calls to eliminate Social Security, Medicare and Medicaid. A remarkable number say this despite having recently lost jobs or health coverage. Some of the prescriptions they are debating — secession, tax boycotts, states “nullifying” federal laws, forming citizen militias — are outside the mainstream, too.

At a recent meeting of the Sandpoint Tea Party, Mrs. Stout presided with brisk efficiency until a member interrupted with urgent news. Because of the stimulus bill, he insisted, private medical records were being shipped to federal bureaucrats. A woman said her doctor had told her the same thing. There were gasps of rage. Everyone already viewed health reform as a ruse to control their medical choices and drive them into the grip of insurance conglomerates. Debate erupted. Could state medical authorities intervene? Should they call Congress?

As the meeting ended, Carolyn L. Whaley, 76, held up her copy of the Constitution. She carries it everywhere, she explained, and she was prepared to lay down her life to protect it from the likes of Mr. Obama.

“I would not hesitate,” she said, perfectly calm.

A Sprawling Rebellion

The Tea Party movement defies easy definition, largely because there is no single Tea Party.

At the grass-roots level, it consists of hundreds of autonomous Tea Party groups, widely varying in size and priorities, each influenced by the peculiarities of local history.

In the inland Northwest, the Tea Party movement has been shaped by the growing popularity in eastern Washington of Ron Paul, the libertarian congressman from Texas, and by a legacy of anti-government activism in northern Idaho. Outside Sandpoint, federal agents laid siege to Randy Weaver’s compound on Ruby Ridge in 1992, resulting in the deaths of a marshal and Mr. Weaver’s wife and son. To the south, Richard Butler, leader of the Aryan Nations, preached white separatism from a compound near Coeur d’Alene until he was shut down.

Local Tea Party groups are often loosely affiliated with one of several competing national Tea Party organizations. In the background, offering advice and organizational muscle, are an array of conservative lobbying groups, most notably FreedomWorks. Further complicating matters, Tea Party events have become a magnet for other groups and causes — including gun rights activists, anti-tax crusaders, libertarians, militia organizers, the “birthers” who doubt President Obama’s citizenship, Lyndon LaRouche supporters and proponents of the sovereign states movement.

It is a sprawling rebellion, but running through it is a narrative of impending tyranny. This narrative permeates Tea Party Web sites, Facebook pages, Twitter feeds and YouTube videos. It is a prominent theme of their favored media outlets and commentators, and it connects the disparate issues that preoccupy many Tea Party supporters — from the concern that the community organization Acorn is stealing elections to the belief that Mr. Obama is trying to control the Internet and restrict gun ownership.

WorldNetDaily.com trumpets “exclusives” reporting that the Army is seeking “Internment/Resettlement” specialists. On ResistNet.com, bloggers warn that Mr. Obama is trying to convert Interpol, the international police organization, into his personal police force. They call on “fellow Patriots” to “grab their guns.”

Mr. Beck frequently echoes Patriot rhetoric, discussing the possible arrival of a “New World Order” and arguing that Mr. Obama is using a strategy of manufactured crisis to destroy the economy and pave the way for dictatorship.

At recent Tea Party events around the country, these concerns surfaced repeatedly.

In New Mexico, Mary Johnson, recording secretary of the Las Cruces Tea Party steering committee, described why she fears the government. She pointed out how much easier it is since Sept. 11 for the government to tap telephones and scour e-mail, bank accounts and library records. “Twenty years ago that would have been a paranoid statement,” Ms. Johnson said. “It’s not anymore.”

In Texas, Toby Marie Walker, president of the Waco Tea Party, stood on a stage before several thousand people, ticking off the institutions she no longer trusts — the federal government, both the major political parties, Wall Street. “Many of us don’t believe they have our best interests at heart,” Ms. Walker said. She choked back tears, but the crowd urged her on with shouts of “Go, Toby!”

As it happened in the inland Northwest with Friends for Liberty, the fear of Washington and the disgust for both parties is producing new coalitions of Tea Party supporters and groups affiliated with the Patriot movement. In Indiana, for example, a group called the Defenders of Liberty is helping organize “meet-ups” with Tea Party groups and more than 50 Patriot organizations. The Ohio Freedom Alliance, meanwhile, is bringing together Tea Party supporters, Ohio sovereignty advocates and members of the Constitution and Libertarian Parties. The alliance is also helping to organize five “liberty conferences” in March, each featuring Richard Mack, the same speaker invited to address Friends for Liberty.

Politicians courting the Tea Party movement are also alluding to Patriot dogma. At a Tea Party protest in Las Vegas, Joe Heck, a Republican running for Congress, blamed both the Democratic and Republican Parties for moving the country toward “socialistic tyranny.” In Texas, Gov. Rick Perry, a Republican seeking re-election, threw his support behind the state sovereignty movement. And in Indiana, Richard Behney, a Republican Senate candidate, told Tea Party supporters what he would do if the 2010 elections did not produce results to his liking: “I’m cleaning my guns and getting ready for the big show. And I’m serious about that, and I bet you are, too.”

Turning Points

Fear of co-option — a perpetual topic in the Tea Party movement — lay behind the formation of Friends for Liberty.

The new grass-roots leaders of the inland Northwest had grown weary of fending off what they jokingly called “hijack attempts” by the state and county Republican Parties. Whether the issue was picking speakers or scheduling events, they suspected party leaders of trying to choke off their revolution with Chamber of Commerce incrementalism.

“We had to stand our ground, I’ll be blunt,” said Dann Selle, president of the Official Tea Party of Spokane.

In October, Mr. Selle, Mrs. Stout and about 20 others from across the region met in Liberty Lake, Wash., a small town on the Idaho border, to discuss how to achieve broad political change without sacrificing independence. The local Republican Party was excluded.

Most of the people there had paid only passing attention to national politics in years past. “I voted twice and I failed political science twice,” said Darin Stevens, leader of the Spokane 9/12 Project.

Until the recession, Mr. Stevens, 33, had poured his energies into his family and his business installing wireless networks. He had to lay off employees, and he struggled to pay credit cards, a home equity loan, even his taxes. “It hits you physically when you start getting the calls,” he said.

He discovered Glenn Beck, and began to think of Washington as a conspiracy to fleece the little guy. “I had no clue that my country was being taken from me,” Mr. Stevens explained. He could not understand why his progressive friends did not see what he saw.

He felt compelled to do something, so he decided to start a chapter of Mr. Beck’s 9/12 Project. He reserved a room at a pizza parlor for a Glenn Beck viewing party and posted the event on Craigslist. “We had 110 people there,” Mr. Stevens said. He recalled looking around the room and thinking, “All these people — they agree with me.”

Leah Southwell’s turning point came when she stumbled on Mr. Paul’s speeches on YouTube. (“He blew me away.”) Until recently, Mrs. Southwell was in the top 1 percent of all Mary Kay sales representatives, with a company car and a frenetic corporate life. “I knew zero about the Constitution,” Mrs. Southwell confessed. Today, when asked about her commitment to the uprising, she recites a line from the Declaration of Independence, a Tea Party favorite: “We mutually pledge to each other our lives, our fortunes, and our sacred honor.”

Mr. Paul led Mrs. Southwell to Patriot ideology, which holds that governments and economies are controlled by networks of elites who wield power through exclusive entities like the Bilderberg Group, the Trilateral Commission and the Council on Foreign Relations.

This idea has a long history, with variations found at both ends of the political spectrum. But to Mrs. Southwell, the government’s culpability for the recession — the serial failures of regulation, the Federal Reserve’s epic blunders, the cozy bailouts for big banks — made it resonate all the more, especially as she witnessed the impact on family and friends.

“The more you know, the madder you are,” she said. “I mean when you finally learn what the Federal Reserve is!”

Last spring, Mrs. Southwell quit her job and became a national development officer for the John Birch Society, recruiting and raising money across the West, often at Tea Party events. She has been stunned by the number of Tea Party supporters gravitating toward Patriot ideology. “Most of these people are just waking up,” she said.

Converging Paths

At Liberty Lake, the participants settled on a “big tent” strategy, with each group supporting the others in the coalition they called Friends for Liberty.

One local group represented at Liberty Lake was Arm in Arm, which aims to organize neighborhoods for possible civil strife by stockpiling food and survival gear, and forming armed neighborhood groups.

Also represented was Oath Keepers, whose members call themselves “guardians of the Republic.” Oath Keepers recruits military and law enforcement officials who are asked to disobey orders the group deems unconstitutional. These include orders to conduct warrantless searches, arrest Americans as unlawful enemy combatants or force civilians into “any form of detention camps.”

Oath Keepers, which has been recruiting at Tea Party events around the country and forging informal ties with militia groups, has an enthusiastic following in Friends for Liberty. “A lot of my people are Oath Keepers,” Mr. Stevens said. “I’m an honorary Oath Keeper myself.”

Mrs. Stout became an honorary Oath Keeper, too, and sent an e-mail message urging her members to sign up. “They may be very important for our future,” she wrote.

By inviting Richard Mack to speak at their first event, leaders of Friends for Liberty were trying to attract militia support. They knew Mr. Mack had many militia fans, and not simply because he had helped Randy Weaver write a book about Ruby Ridge. As a sheriff in Arizona, Mr. Mack had sued the Clinton administration over the Brady gun control law, which resulted in a Supreme Court ruling that the law violated state sovereignty by requiring local officials to conduct background checks on gun buyers.

Mr. Mack was selling Cadillacs in Arizona, his political career seemingly over, when Mr. Obama was elected. Disheartened by the results, he wrote a 50-page booklet branding the federal government “the greatest threat we face.” The booklet argued that only local sheriffs supported by citizen militias could save the nation from “utter despotism.” He titled his booklet “The County Sheriff: America’s Last Hope,” offered it for sale on his Web site and returned to selling cars.

But last February he was invited to appear on “Infowars,” the Internet radio program hosted by Alex Jones, a well-known figure in the Patriot movement. Then Mr. Mack went on “The Power Hour,” another Internet radio program popular in the Patriot movement.

After those appearances, Mr. Mack said, he was inundated with invitations to speak to Tea Parties and Patriot groups. Demand was so great, he said, that he quit selling cars. Then Andrew P. Napolitano, a Fox News legal analyst, invited him to New York to appear on his podcast.

“It’s taken over my life,” Mr. Mack said in an interview.

He said he has found audiences everywhere struggling to make sense of why they were wiped out last year. These audiences, he said, are far more receptive to critiques once dismissed as paranoia. It is no longer considered all that radical, he said, to portray the Federal Reserve as a plaything of the big banks — a point the Birch Society, among others, has argued for decades.

People are more willing, he said, to imagine a government that would lock up political opponents, or ration health care with “death panels,” or fake global warming. And if global warming is a fraud, is it so crazy to wonder about a president’s birth certificate?

“People just do not trust any of this,” Mr. Mack said. “It’s not just the fringe people anymore. These are just ordinary people — teachers, bankers, housewives.”

The dog track opened at 5:45 p.m. for Mr. Mack’s speech, and the parking lot quickly filled. Inside, each Friends for Liberty sponsor had its own recruiting table. Several sheriffs and state legislators worked the crowd. “I came out to talk with folks and listen to Sheriff Mack,” Ozzie Knezovich, the sheriff of Spokane County, Wash., explained.

Gazing out at his overwhelmingly white audience, Mr. Mack felt the need to say, “This meeting is not racist.” Nor, he said, was it a call to insurrection. What is needed, he said, is “a whole army of sheriffs” marching on Washington to deliver an unambiguous warning: “Any violation of the Constitution we will consider a criminal offense.”

The crowd roared.

Mr. Mack shared his vision of the ideal sheriff. The setting was Montgomery, Ala., on the day Rosa Parks refused to give up her bus seat for a white passenger. Imagine the local sheriff, he said, rather than arresting Ms. Parks, escorting her home, stopping to buy her a meal at an all-white diner.

“Edmund Burke said the essence of tyranny is the enforcement of stupid laws,” he said. Likewise, Mr. Mack argued, sheriffs should have ignored “stupid laws” and protected the Branch Davidians at Waco, Tex., and the Weaver family at Ruby Ridge.

Legacy

A popular T-shirt at Tea Party rallies reads, “Proud Right-Wing Extremist.”

It is a defiant and mocking rejoinder to last April’s intelligence assessment from the Department of Homeland Security warning that recession and the election of the nation’s first black president “present unique drivers for right wing radicalization.”

“Historically,” the assessment said, “domestic right wing extremists have feared, predicted and anticipated a cataclysmic economic collapse in the United States.” Those predictions, it noted, are typically rooted in “antigovernment conspiracy theories” featuring impending martial law. The assessment said extremist groups were already preparing for this scenario by stockpiling weapons and food and by resuming paramilitary exercises.

The report does not mention the Tea Party movement, but among Tea Party activists it is viewed with open scorn, evidence of a larger campaign by liberals to marginalize them as “racist wingnuts.”

But Tony Stewart, a leading civil rights activist in the inland Northwest, took careful note of the report. Almost 30 years ago, Mr. Stewart cofounded the Kootenai County Task Force on Human Relations in Coeur d’Alene. The task force has campaigned relentlessly to rid north Idaho of its reputation as a haven for anti-government extremists. The task force tactics brought many successes, including a $6.3 million civil judgment that effectively bankrupted Richard Butler’s Aryan Nations.

When the Tea Party uprising gathered force last spring, Mr. Stewart saw painfully familiar cultural and rhetorical overtones. Mr. Stewart viewed the questions about Mr. Obama’s birthplace as a proxy for racism, and he was bothered by the “common message of intolerance for the opposition.”

“It’s either you’re with us or you’re the enemy,” he said.

Mr. Stewart heard similar concerns from other civil rights activists around the country. They could not help but wonder why the explosion of conservative anger coincided with a series of violent acts by right wing extremists. In the Inland Northwest there had been a puzzling return of racist rhetoric and violence.

Mr. Stewart said it would be unfair to attribute any of these incidents to the Tea Party movement. “We don’t have any evidence they are connected,” he said.

Still, he sees troubling parallels. Branding Mr. Obama a tyrant, Mr. Stewart said, constructs a logic that could be used to rationalize violence. “When people start wearing guns to rallies, what’s the next thing that happens?” Mr. Stewart asked.

Rachel Dolezal, curator of the Human Rights Education Institute in Coeur d’Alene, has also watched the Tea Party movement with trepidation. Though raised in a conservative family, Ms. Dolezal, who is multiracial, said she could not imagine showing her face at a Tea Party event. To her, what stands out are the all-white crowds, the crude depictions of Mr. Obama as an African witch doctor and the signs labeling him a terrorist. “It would make me nervous to be there unless I went with a big group,” she said.

The Future

Pam Stout wakes each morning, turns on Fox News, grabs coffee and an Atkins bar, and hits the computer. She is the hub of a rapidly expanding and highly viral political network, keeping a running correspondence with her 400 members in Sandpoint, state and national Tea Party leaders and other conservative activists.

Mrs. Stout forwards along petitions to impeach Mr. Obama; petitions to audit the Federal Reserve; petitions to support Sarah Palin; appeals urging defiance of any federal law requiring health insurance; and on and on.

Meanwhile, she and her husband are studying the Constitution line by line. She has the Congressional switchboard programmed into her cellphone. “I just signed up for a Twitter class,” said Mrs. Stout, 66, laughing at the improbability of it all.

Yet for all her efforts, Mrs. Stout is gripped by a sense that it may be too little too late. Yes, there have been victories — including polls showing support for the Tea Party movement — but in her view none of it has diminished the fundamental threat of tyranny, a point underscored by Mr. Obama’s drive to pass a health care overhaul.

She and her members are becoming convinced that rallies alone will not save the Republic. They are searching for some larger answer, she said. They are also waiting for a leader, someone capable of uniting their rebellion, someone like Ms. Palin, who made Sandpoint one of the final stops on her book tour and who has announced plans to attend a series of high-profile Tea Party events in the next few months.

“We need to really decide where we’re going to go,” Mrs. Stout said.

These questions of strategy, direction and leadership were clearly on the minds of Mrs. Stout’s members at a recent monthly meeting.

Their task seemed endless, almost overwhelming, especially with only $517 in their Tea Party bank account. There were rallies against illegal immigration to attend. There was a coming lecture about the hoax of global warming. There were shooting classes to schedule, and tips to share about the right survival food.

The group struggled fitfully for direction. Maybe they should start vetting candidates. Someone mentioned boycotting ABC, CBS, NBC and MSNBC. Maybe they should do more recruiting.

“How do you keep on fighting?” Mrs. Stout asked in exasperation.

Lenore Generaux, a local wildlife artist, had an idea: They should raise money for Freedom Force, a group that says it wants to “reclaim America via the Patriot movement.” The group is trying to unite the Tea Parties and other groups to form a powerful “Patriot lobby.” One goal is to build a “Patriot war chest” big enough to take control of the Republican Party.

Not long ago, Mrs. Stout sent an e-mail message to her members under the subject line: “Revolution.” It linked to an article by Greg Evensen, a leader in the militia movement, titled “The Anatomy of an American Revolution,” that listed “grievances” he said “would justify a declaration of war against any criminal enterprise including that which is killing our nation from Washington, D.C.”

Mrs. Stout said she has begun to contemplate the possibility of “another civil war.” It is her deepest fear, she said. Yet she believes the stakes are that high. Basic freedoms are threatened, she said. Economic collapse, food shortages and civil unrest all seem imminent.

“I don’t see us being the ones to start it, but I would give up my life for my country,” Mrs. Stout said.

She paused, considering her next words.

“Peaceful means,” she continued, “are the best way of going about it. But sometimes you are not given a choice.”