From Nouriel Roubini, the economist who most closely predicted the current mess, comes a warning couched in economic jargon that needs to be deciphered and publicized.
In a column on Forbes.com, Roubini warns that the United States, in its response to the economic crisis, may be following in the disastrous footsteps of Japan - whose sluggish and overly lenient response to a financial crisis led to a decade of economic misery. Read more.
Thursday, February 12, 2009
President Barack Obama has indeed made history. His selections for his Cabinet and other top government offices make a mockery of his much publicized campaign promises to give us "the most sweeping ethics reform in history" and to "close the revolving door" to lobbyists. Read on.
The so-called "stimulus plan" cooked up mostly by House Democrats is, in reality, a plan to stimulate government and make it an even greater presence (and burden) in our lives. The appeal to speed and urgency by President Obama is an invitation to overlook details of the bill, which would accelerate the transformation of America from a capitalistic system that exalts the individual to a socialistic system that exalts the state. Read on.
Our new president has another big problem with one of his nominees. This one hasn’t made headlines yet, but if he is voted through this week by the Senate Judiciary Committee, you’ll hear plenty — and it’s a nightmarish possibility. David W. Ogden is President Obama’s nominee for Deputy Attorney General at the U.S. Department of Justice (DOJ).
It would be difficult to find a person less desirable to be second in command at the nation’s top law enforcement agency, the person who would enforce the child pornography and obscenity laws. Throughout his 20-year legal career, David Ogden has argued for the rights of the pornographers over the protection of women and children. [Read more]
The size and variety of all the spending programs in this bill would make a drunken sailor look like a fiscal conservative. But the president's message is simple: Sign on the dotted line, and now, or All Is Lost.
Dr. Robert Higgs, senior fellow at the Oakland-based Independent Institute, penned an article in The Christian Science Monitor (2/9/2009) that suggests the most intelligent recommendation that I've read to fix our current economic mess. The title of his article gives his recommendation away: "Instead of stimulus, do nothing -- seriously."
One of the most important skills for political success is the ability to make confident assertions of absurdities or lies. Read on.
Claims Obama, "We have inherited an economic crisis as deep and as dire as any since the Great Depression."
Do we really face the possibility of an irreversible crisis? Well, yes. Not the one Obama describes, but the one he may cause.
THE REAL COST OF THE LAST ELECTION
-- Dick Morris
NICOSIA — President Barack Obama has decided on a new U.S. ambassador to Syria and is expected to lift sanctions against a nation charged with aiding Al Qaida in Iraq and secretly building a nuclear reactor with North Korean assistance. [Read more]
Appearing behind a podium that proclaimed, “Financial Stability and Recovery,” Treasury Secretary Timothy Geithner on Tuesday carefully read from a teleprompter and provided what his flack said was a “comprehensive” plan. It was not comprehensive in any way. It was so shallow that the market dropped and commentators and senators had to note the lack of detail.
But those who expected the details of the plan were operating under the false assumption that the Treasury Secretary, and by extension, the U.S. Government, is in practical control and charge of the U.S. economy. After monitoring the frequent pilgrimages to Beijing by Geithner's predecessor, Henry Paulson, one wonders if members of the financial press corps are even asking the right questions.
Geithner’s performance followed President Obama having advertised Geithner’s appearance in advance by saying, “He’s going to be terrific. I’m going to make sure that Tim gets his moment in the sun.” The sun? One analyst said Geithner looked like a deer caught in the headlights.
[Read more]
Elite members of the World Economic Forum (WEF) meeting in Davos, Switzerland, recently considered a proposal for a new global television network to usher in a state of “global governance.” The concept strikes some as authoritarian, even totalitarian. But the parent company of Fox News was one of the sponsors of this year's gathering.
The media proposal, which was included in “The Global Agenda 2009” report, is to create “a new global network” with “the capacity to connect the world, bridging cultures and peoples, and telling us who we are and what we mean to each other.” Several prominent U.S. media figures signed on to the alarming and controversial proposal.[Read more]
Wednesday, February 11, 2009
THE WORLD-WIDE GOVERNMENT BUBBLE
Dot.com stocks and tulips are not the only things that can lead to financial bubbles. Governments can also be the focus of financial mania. Our global credit crisis is in reality a government bubble in the process of popping.
As you and I watch the unfolding of the Obama phenomenon, where pseudo-benevolent Leftists and Big Government are touted as the answer to all ills, we feel like we have been watching a mass lunacy. We have the classic feelings one has watching a bubble inflate.
It has been frightening to see the madness of the crowd, the religious fervor of the faithful, the persecution of the heretics, the obscene absorption of power and money. It is a strange comfort that their insane vision for the future cannot be realized. With infinite money we all would have become slaves an ever growing state. Instead we will experience the government bubble pop.
When a government bubble pops, the value of government suddenly drops. Government will become, to the masses, the bad joke it was to us all along. Few will trust it and most who do will be thought of as a deluded. This will probably happen world wide.
COMMENTARY
New CEO Obama Shows How Tough It Is to Run a Company
President would find Wall Street tougher than Main Street or the media.
COMMENTARY
Economic natural selection would doom lawyers, Congress and other 'non-essential' entities.
By Dan Kennedy
Business & Media Institute
The January 26th issue of “The Wall Street Journal” finally provided some really cheery news about the economy with the joyful headline: “Recession Batters Law Firms, Triggering Layoffs, Closings.”
I’ve long advocated a government imposed one- to two-generation moratorium on lawyers breeding. It would certainly have the support of ......
Obama Follows Media, Pushes for Pay Caps
The Business and Media Institute
Populism's march continues with compensation restrictions for TARP recipients, but economists warn that wage controls 'never work.' More.
FOOD FOR THOUGHT
"[M]ore than any predecessor except the first, the 44th president enters office with the scope of its powers barely circumscribed by law, and even less by public opinion. Obama's unprecedented power derives from the astonishing events of the last four months that have made indistinct the line between public and private sectors. Neither the public as currently alarmed, nor Congress as currently constituted, nor the Constitution as currently construed is an impediment to hitherto unimagined executive discretion in allocating vast portions of the nation's wealth. He acquires power just as the retreat of the state has been abruptly reversed." --columnist George Will
"Obama's faith in himself -- and by extension, faith in the government he leads -- is unshakeable. In his inaugural address, Obama dismissed the question of 'whether our government is too big or too small.' Instead, he suggested, we should focus on 'whether it works.' Yet there is apparently no situation in which Obama believes the government, led by Barack Obama, doesn't work. The free market requires 'a watchful eye'; 'a nation cannot prosper long when it favors only the prosperous.' The government must build us 'new roads and bridges,' 'restore science to its rightful place,' 'transform our schools and colleges and universities.' The government must bring about global equality via international redistribution: 'poor nations ... we pledge to work alongside you to make your farms flourish and let clean waters flow; to nourish starved bodies and feed hungry minds.' In Obama's mind, the government he runs solves all problems and rights all wrongs. What will happen when government fails?" --columnist Ben Shapiro
"We who live in free market societies believe that growth, prosperity and ultimately human fulfillment, are created from the bottom up, not the government down. Only when the human spirit is allowed to invent and create, only when individuals are given a personal stake in deciding economic policies and benefitting from their success -- only then can societies remain economically alive, dynamic, progressive, and free." --Ronald Reagan
"A wise prince will seek means by which his subjects will always and in every possible condition of things have need of his government, and then they will always be faithful to him." --Niccolo Machiavelli (1469-1527)
CULTURE
"Those who doubted that a black man could be elected to the highest office in the land no longer have a leg to stand on. That can be a force for good, when young blacks can no longer be told that there is no point in their trying to get ahead in this society because 'the man' is going to stop them. In another sense, the Obama presidency may not be nearly as big a change in the country as some might think. Colin Powell could probably have been elected eight years ago. But you don't know it can happen until it happens. No doubt the race-hustling industry will continue, and no doubt their chief victims will be blacks, especially young blacks, who buy the paralyzing picture of victimhood and the counterproductive resentments which sap energies that could be better used to improve their own lives. Now that we have the first black President of the United States, maybe we can move ahead to the time when we can forget about 'the first' whatever to do what. There is too much serious work to do to spend more time on that."
--Hoover Institution economist Thomas Sowell
Moving Fast to Change America
You will recall that prior to Barack Obama's taking office, I wrote a three-part article titled "The Justification for Lying," in which I discussed the approach I thought he would mostly likely take to "change the face of America." Rather than the more subtle "boil-the-frog-slowly" approach, I thought he proceed quickly to socialize the economy and suppress liberty.
I listed four reasons for this:
*Obama would have the Pelosi-Reid gang pressuring him to take action.
*He would have millions of entitlement-addicted hard cases looking to him to deliver on his spread-the-wealth promises.
*Rev. Wright might be lying in wait, ready to do something that might turn the love-filled Obamaganza into a humiliating Obamaclysm.
*And the biggest reason of all would be the pressure of knowing that the 2010 mid-term Congressional elections would probably cut into the power monopoly the left wing now holds. A significant power shift in the House and Senate would have Obama kicking himself (or, more likely, kicking you) for not moving fast enough when the Socialist Window of Opportunity was wide open.
So, now that Obama has been in office for a week, I thought I'd go back and review my thoughts from that earlier article:
Having the Pelosi-Reid crowd pushing Obama to move swiftly in the direction of bigger government, a more dependent populace, and less liberty for everyone but the D.C. power holders is a given.
As for entitlements, because of the rapidly worsening depression (euphemistically referred to by media pundits as "severe recession"), ever-increasing numbers of people are looking to big government for everything from mortgage-payment relief to extended unemployment benefits.
Rev. Wright? Well, he remains a wildcard - at least for now - because there is no way to know what he's up to. It is entirely possible that some big-money lefties are paying him off to keep quiet and stay out of sight.
If so - and I don't know that it is so - I assume they are smart enough to make the payments over an extended period of time. Otherwise, the good reverend might just take the money and turn right around and start giving speeches again. In any event, all of us will be kept in the dark on the Rev. Wright issue until, and unless, he resurfaces.
But the fourth reason remains the most important one. Obama is moving ahead with all his socialist cylinders firing to the max because campaigning for Congressional seats will soon begin, and the Limbaugh-Hannity troops are already on the attack. In fact, the attacks began on Inauguration Day.
Whether you love these right-wing guys or hate them, you owe them a debt of gratitude for putting themselves out front and taking the hate bullets from the far left. And every American should probably tithe Glenn Beck 5 percent of his earnings for speaking truths that no one else is willing to touch. Beck is in a class by himself, and I honestly fear for his safety.
Obama's problem is that his explosion of bailouts, handouts, regulations, appointments of above-the-law people to high positions - and worse - are guaranteed to accelerate the collapse of what is left of our deathly sick economy. So, what should he do to hold back irate Americans - the ones with fire in their eyes and pitchforks in their hands?
Answer: Exactly what he's doing.
First, blame it on those nasties in the last administration. Hey, he was just a community organizer who stumbled into this mess. Don't blame him, right?
Second, he's begun a permanent campaign to brainwash people into understanding that "things are going to get worse before they get better" and that the pain is going to last a long time. Let's give Obama a little credit for this one: He's telling the truth!
But what he isn't telling Mr. and Mrs. Forget-About-Retirement America is that it is the policies he is putting in place that will make things get worse and last longer. Welcome to the "new New Deal."
You do remember the first New Deal, don't you? You know - the contrivance of that charismatic character who used to get on television (Yep, that's what Patriot Joe Biden said - television!) and tell his subjects how government jobs programs, entitlement programs (such as Social Security), and, through Executive Order 6102, gold-theft programs would get us out of the Great Depression.
It sounded great, but, as everyone with a brain larger than a cockroach's now understands, these anti-liberty measures not only prolonged the Great Depression by seven or eight years, but laid the groundwork for the permanent economic and moral collapse of the U.S.A. that we are now facing.
FDR was a clever rascal, but the man at the White House controls today may prove to be even more cunning, because he's preparing our collective mindset to expect misery for years to come. That's right, no "Happy days are here again" nonsense from Obama.
As I said in my earlier article, putting an emphasis on the future has been an important tool used by crusaders, politicians, and other assorted scoundrels for centuries. The fewer short-term results a leader promises, the better his chances of keeping people from rebelling.
So, yes, Obama is doing the right thing - for him and his cronies - because the public may not be willing to wait more than two years to see some improvement in their lives. And blaming the mess he inherited on the Bush administration (as though the Democratic Congress had nothing to do with it) is a theme that will not play in Peoria indefinitely. Chicago, maybe ... but not Peoria.
I will close on the same note I ended on in my earlier article: Even if hard-core freedom advocates managed to gain control of the presidency and the Congress in 2012, they'd still have to have the courage to tell Americans the truth: The party is over!
Then, they would have to start eliminating every government program that is not called for in the Constitution, one by one. Which means that Republicans would have to end their decades of trying to outbid Democrats for votes.
Make no mistake about it, the "stimulus package" that is now estimated to be nearly a trillion dollars is only the beginning. Actually, the real beginning was the Wall Street and bank bailouts. Unless most Republicans and at least some Democrats in Congress conjure up the moral strength to say "Enough!" - before much more time elapses - phony stimulus packages in the multi-trillions will become a way of life for Americans.
And that, of course, will bring us out of our current deflationary collapse and into a collapse of another kind: runaway inflation.
SWINGING AT LEAVES
"For every one man that is chopping at the root, a thousand are swinging at the leaves."-- Henry David Thoreau
Tuesday, February 10, 2009
Welcome to the New, New Deal
—David Davenport
Here's a good one-line summary of what's happening in Washington: Welcome to the New, New Deal.
I don't just mean the many comparisons to the Great Depression and that change of leadership. I'm referring to the host of measures enacted now to address the crisis of today that will become the long-term, big government policy of tomorrow.
Take one example: a plan drawn up virtually overnight to double federal spending on education, and with it the role of the federal government in what has traditionally been a state and local matter. This will have far more effect on education than it will on the economy.
In the 1930s, the vast array of agencies and programs created to spend us out of a Depression has become the framework for all domestic policy today. This emergency will end as well - but not the federal programs created to address it.
Monday, February 09, 2009
Munich and the Continuity Between the Bush and Obama Foreign Policies
Geopolitical Intelligence Report
By George Friedman
While the Munich Security Conference brought together senior leaders from most major countries and many minor ones last weekend, none was more significant than U.S. Vice President Joe Biden. This is because Biden provided the first glimpse of U.S. foreign policy under President Barack Obama. Most conference attendees were looking forward to a dramatic shift in U.S. foreign policy under the Obama administration. What was interesting about Biden’s speech was how little change there has been in the U.S. position and how much the attendees and the media were cheered by it.
[More]
--former House Majority Leader Dick Armey--
--James Madison
Warrior in Drug Fight Soon Becomes a Victim
Mexican General Seized, Slain in Cancun
CANCUN, Mexico -- The general didn't get much time. After a long, controversial career, Brig. Gen. Mauro Enrique Tello Quiñones retired from active duty last month and moved to this Caribbean playground to work for the Cancun mayor and fight the drug cartels that have penetrated much of Mexican society. He lasted a week. [MORE]
REALLY? A STARVATION DIET? WOW. WHAT A MORON!
(CNSNews.com) - Sen. Claire McCaskill (D-Mo.) said Sunday that some of the spending in the $819-billion stimulus passed by the House of Representatives last week represented important federal spending priorities needed to “make up for a starvation diet under the Bush administration.” Under that “starvation diet,” the annual federal budget grew by 1.32 trillion.
Former Republican presidential candidate Sen. John McCain (R-Ariz.) said Wednesday that the president’s economic stimulus bill is unacceptable to Senate Republicans. McCain said he plans to offer a Republican alternative on Thursday.
Capitol Hill – Congressional Republicans on Wednesday rejected the idea that the $900-billion economic stimulus plan being pushed by the Obama White House and Senate Democrats will "save or create" more than 3 million American jobs. “The problem with that line is that you can’t ever prove a negative. You can’t ever prove that there was a job that would have gone away that didn’t go away because of the bill,” Rep. Tom Price (R-Ga.) told CNSNews.com.
"It is easy for the other side to advocate for higher taxes because, you know what? They don't pay them."
--House GOP Whip Eric Cantor
"You know how Congress is. They'll vote for anything if the thing they vote for will turn around and vote for them. Politics ain't nothing but reciprocity."
--American humorist Will Rogers (1879-1935)
16 illegals sue Arizona rancher
Washington Times
An Arizona man who has waged a 10-year campaign to stop a flood of illegal immigrants from crossing his property is being sued by 16 Mexican nationals who accuse him of conspiring to violate their civil rights when he stopped them at gunpoint on his ranch on the U.S.-Mexico border. [MORE]
FBI Raided Lobbying Firm Connected to Murtha
Feds Narrowing In On Companies With Ties To Congressman
By EMMA SCHWARTZ and JUSTIN ROOD
The FBI raided the offices of a defense lobbying firm with close ties to Democratic Rep. John Murtha (Penn.), sources tell ABC News.
PMA Group
The FBI raided the offices of a defense lobbying firm with close ties to Democratic Rep. John Murtha (Penn.), sources tell ABC News.
The FBI searched the Virginia headquarters of the PMA Group in November, according to the sources, who spoke on the condition of anonymity. PMA was founded by former Murtha aide Paul Magliochetti and specializes in ....
FACT CHECK: Obama has it both ways on pork
President Barack Obama had it both ways Monday when he promoted his stimulus plan in Indiana. He bragged about getting Congress to produce a package with no pork, yet boasted it will do good things for a Hoosier highway and a downtown overpass, just the kind of local projects lawmakers lard into big spending bills. [MORE]
"[P]eople do not ask for socialism because they know that socialism will improve their conditions, and they do not reject capitalism because they know that it is a system prejudicial to their interests. They are socialists because they believe that socialism will improve their conditions, and they hate capitalism because they believe that it harms them. They are socialists because they are blinded by envy and ignorance." --economist Ludwig von Mises (1881-1973)
LIBERTY
"For those on the right who still cling to the fantasy that Obama is a bipartisan centrist, I refer you to his recent statement that FDR did not do enough by way of government spending to end the Depression ... and his government-expansion-on-steroids, non-stimulus pork bill. The inevitable explosion of federal debt this legislation would cause is reason enough to oppose it, even if it were likely to stimulate the economy. But even some liberals are disputing its potential to stimulate. The hastily crafted bill, with its corrupt funding of ACORN and other favors, is a disgracefully irresponsible effort to expand the public sector, diminish the private sector, empower the autocrats, and further divest us of our individual liberties -- all at the expense of present and future generations." --columnist David Limbaugh
The Mandate, Part I
For all the reasons I've previously written about, I expected BHO to move fast to implement his socialist agenda once he got in office. But I didn't expect him to be as brazen about it as he has been.
And yet, I shouldn't be surprised, because the man has enormous confidence in his capacity to mesmerize the flock. BHO's great strength lies in his ability to make a large segment of the population get "a thrill up their leg." While Adolf Hitler was a more dynamic orator, BHO is a master dispenser of tranquilizers.
Watching him speak to the choir of House Democrats at their annual retreat in Williamsburg, Virginia, I found myself thinking, "Gee, what a nice young man." Yikes! When I regained consciousness, I almost felt a tingle go up my leg ... or was it a tinkle going down my leg?
I was so mesmerized that the thought crossed my mind that perhaps it was time to start buying some Bolshevik memorabilia for my recreation room. Yep, he had me pretty sedated - and I'm a died-in-the-wool conservative-leaning libertarian!
Then, from out of nowhere, the world's greatest Kool-Aid salesman admonished Congress (i.e., Republicans) to "set aside the gamesmanship in this town and get something done." Translation: "Stop following your conscience and support my socialist agenda." Finally, the ever-slick, ever-smooth BHO had blown his cool - and his cover. The bipartisan mask was finally showing some cracks in it.
He then followed up that little snippet with a series of other angry, snide remarks, one of the best of which was, "I found this deficit when I showed up." And he's right about that. A pox on the houses of George Bush and Congress for violating the Constitution and bankrupting the nation. But when someone leaves a pile of cow dung on the floor of the Oval Office, the solution isn't to make the pile bigger.
"We're not going to get relief by turning back to the very same policies that in eight short years doubled the national debt and threw our economy into a tailspin," BHO told the House Democrats. "We can't embrace the losing formula that offers more tax cuts as the only answer to every problem we face."
And, once again, he was right ... partially, that is. He's right that George Bush and the Congress ran up huge deficits through a drunken orgy of spending. But he's wrong about the tax cuts. The tax cuts are the part that saved us from an even worse financial crisis than the one we now find ourselves in.
So, what is BHO's solution? More government spending - far more spending than ever before in our country's history. Referring to complaints about spending levels in the suicide package now being debated by Congress, BHO said, "Then you get the argument, 'Well, this is not a stimulus bill. This is a spending bill.' What do you think a stimulus is? That's the whole point."
Very cute ... very clever. But what BHO and other big-government advocates don't understand is that their basic premises are wrong. Their first invalid premise is that government has the moral and/or Constitutional authority to spend your money without your consent. Their second invalid premise is that government spending will "stimulate" the economy.
BHO is, of course, wrong on both counts. That the government has no right to spend your money against your will is morally self-evident, and it certainly is clear that it is constitutionally out of bounds. Yet, those on the left belittle people who oppose them in their illegal pursuits by calling them "obstructionists," among other things.
Recently, even nice-guy Governor Ed Rendell of Pennsylvania said, "The Republicans should get off this identity kick and get behind the president. We have to come together for the good of the country." That's right, forget your identity and support the socialists' cause instead of sticking to your belief in freedom and the moral sanctity of a capitalistic society.
But morals aside (which is the way collectivists like to approach things), the fact is that government spending does not stimulate the economy. Whether the government taxes, borrows, or prints, its actions always have a negative impact on the country. Only spending by individuals and companies can stimulate the economy.
Finally, BHO reminded his choir in Williamsburg that the American people had "already made their choice in the election." And they had ... at least those who voted. They chose tingling legs over reason and reality. They chose to vote against the most embarrassing Republican presidential candidate of our time. They chose to vote for what they believed was the lesser of two evils. And, yes, many chose white guilt over moral substance.
So, in BHO's mind, he has a mandate to pursue his socialist agenda - though I think he may now be wondering about that. Millions of foolish, middle-of-the-road voters who gave him a relatively narrow margin of victory (52 percent to 46 percent - just 3 percentage points above a tie!) are now becoming angry - much sooner, quite frankly, than I expected.
And millions more are sure to become even more angry in the months ahead as they come out of their Kool-Aid stupor and realize that the change they are witnessing is not the change they thought they could believe in. They'll be asking themselves things like: "Yes we can what?" "What kind of new beginning?" "Change America how?"
So, is BHO right when he says that "the people have chosen?" In Part II of this article, I'll address that question by setting the record straight, once and for all, on the Orwellian notion of "mandate" that politicians so love to bandy about.