Feeds:
Posts
Comments

Archive for the ‘Economy’ Category


Where will the progressives go next – tax free speech with a blog or a youtube tax or will they lay a gun/ammunition tax to control the right to bear arms?

Where will this now unlimited ability for the federal government to tax its citizens as a behavior modification tool end?  If you wish to control free speech, tax certain types of blogs or youtube submissions and views.

Chief Justice John Roberts may not yet fully understand the full extent of the demise of this free Republic he has unleashed, with this unchecked ability for the progressives to tax, not to raise revenue, but to make behavior modification and pick and choose who is modified.

Can we now have an Article V Constitutional Convention by the states to take back the progressives 100 year assault on this Republic?

 

Read Full Post »


Twist and turns from an unpredictable Chief Justice of the supreme Court of the land – what does it mean?  While the health care mandate is struct down as unconstitutional under the commerce clause, it is Phoenix rising from the ashes as a tax, under the authority of Congress to lay and collect taxes.

What does this mean?  Simple, the Affordable Health Care Act survives mostly intact, with medicaid in jeopardy.  States cannot be punished for not expanding medicaid.  The real meaning of the Affordable Care Act decision is that the democrats in Congress and President Obama insisted, promised, that this new Act is not a tax, but when they went to court they argued that it was a tax – gross misrepresentation, again from this administration!

Since the President was adamant that this mandate was not a tax, repeatedly over time and in all forums, then argued in federal court and in the supreme Court that the mandate was justifed as a tax, will he pay the price for this massive deception?  Did he win a battle and perhaps lose the war?  The majority of americans are opposed to the mandate, and it appears that they are not opposed because it is a violation of the commerce clause, and that it really was a tax.  Americans just don’t want to be mandated by our federal government to do anything and don’t care by what means this was accomplished.

Has Chief Justice Roberts, as the swing jurist in this decision, created a mine field for President Obama?  Does the president have to explain his supreme misrepresentation to the american people?  In addition, the hidden decision here is that the federal government has been reined in under the commerce clause, limiting its commerce clause power, but unleashed as a taxing giant to use taxes to control the behavior of the citizens of this nation?

I am sure the founders never dreamed of a free nation under the thumb of the central government created by its states to make the states, as a whole, stronger, but with “limited” powers.  It appears that the federal government under the right to lay and collect taxes to influence the behavior of its citizens is now unchecked with unlimited powers – thank you, President Obama for the deception!

 

 

 

Read Full Post »


Recent pronouncements of President Obama and a three year trend of his administration have crystallized just where he stands on economics and job creation.

First, look at the three year history of his administration.  The never-ending onslaught of regulation on business and banking under the guise of protecting the consumer and the environment have used a regulatory and lending blanket to smother the small business job generator.  Small business has traditionally generated over 70% of the nation’s jobs.  Now small business is both being smothered by regulation and a dearth of lending availability from the nation’s banks.  The latter due to new banking regulations and Federal Reserve created opportunities to earn, outside of lending, by using the spread between borrowing from the Federal Reserve and then buying Treasuries.

The EPA is single handily ripping the life out of the coal industry, and its jobs.  Oil drilling has been seriously curtailed on federal land and off shore, killing high paying jobs.  Even fracking for natural gas and oil from shale is under attack by the EPA.  Have you wondered why recent reports of EPA action indicate that the EPA has armed SWAT teams and why EPA agents now are armed?  If this is true, what is next – armed truant officers and meter readers?

Now let’s look at two of the tenets of socialism.  In socialism:

  • the government controls big business and the banking industry
  • jobs come from big business with small business being generally non-existent

President Obama has recently provided additional insight to what he believes to be job creation.  His statement that the private sector is doing just fine was ludicrous but more so indicative of where he wants to take this country.  His new plan is his old plan.  He wants to create jobs by creating more non-federal government, but local government jobs, and we already know that federal jobs are up as well. CNN-Money reports: “…The number of federal employees grew by 123,000, or 6.2%, under President Obama, according to the White House’s Office of Management and Budget…”

To be fair and the article points this out that this is just a continuation of President Bush’s job growth in the federal government. I say, more of what is not good is bad.  A word about President Bush – he expanded government, yes, and this was the start of our move to bigger government.  This does not mean that it is good that President Obama doubled down on what was not a good trend in the first place.  My mother would have said: “Two wrongs don’t make a right”.

The article also points out a greater number of regulations were introduced during the term of Bush than Obama.  Don’t go by the number, but by the severity and impact.  The Obama administration is masterful at private sector killing regulation and the regulations that place big business under the thumb of the federal government – Affordable Health Care is one and Dodd Frank is another.  Each of these laws authorizes the bureaucrats of Obama’s administration to write extensive, binding, impactful regulations that destroy small business and gives the federal government unprecedented power over big business and the banks – key tenets of socialism.

Back to Mr. Obama’s pronouncements about creating jobs.  Rather than unleash the private sector and small business to grow and truly create economically productive jobs, he is pushing for a repeat of the failed $800+ Billion stimulus which was going to create police, fire, and teaching jobs, as well as apparently non-existent shovel ready jobs, by doubling down and borrowing more money to pour into local government, government sector unions, and economically unproductive jobs.  Remember the reason why police, fire, and teachers have been laid off is the inability of local government to pay the benefits and pensions resulting from these government sector union jobs.  More socialism!

Apparently Mr. Obama is incapable of or has no desire to foster private sector jobs, even private sector union jobs, and he just has to feed the government sector unions with more stimuli.  His solution to unemployment and the stagnant economic growth is to move into the only direction he knows and believes in; and that is to grow government, foster government sector unions, minimize or eliminate small business, have the banks do the bidding for the federal government, and ultimately raise taxes.  His desired action requires more taxes and more taxes shrink economies.

I can only suggest that anyone who disagrees with me look up how failed socialist states operated.  The plan Obama is using is the failed plan of the past, worldwide.  There has not been one socialist economy in history that has improved and sustained the quality of life and standard of living of the populace.  Government jobs, while a necessary pill which must be taken in great moderation, are not economically viable contributors to the Gross Domestic Product (GDP) and the standard of living of any economy – they require more taxes and again taxes shrink economies.  Yet he steadfastly refuses to unleash the 70% job creator – small business.

 

Read Full Post »


The state of the nation, our nation, is not so complicated as one might think.  We now have “Occupy Wall Street” (OWS) springing up almost out of nowhere, with no leadership, no funding, and no direction.  Believe this and I will sell you a bridge – call me, I hear the Brooklyn Bridge is available.

There is, however, one very cogent message coming from the occupiers.  It is that the top 1% of wealth in this country controls the power.  Abraham Lincoln was apparently wrong, at least for our time, when he proclaimed at Gettysburg: :”…government of the people, by the people, and for the people…”

Today and for over one hundred years, we do not have a free and independent Congress, unions bought and paid for our current President, and our Supreme Court suffers from “absolute power corrupts absolutely”, no longer deciding cases on their merits, but instead using ideology.  Money derived from the 1%, dictates who our candidates are, dictates how our representatives vote, and attempts to shape populist opinion through a media void of integrity.  We have a government monetary system perennially dictated by Goldman Sachs alumni, regardless of the administration.  It should be no suprise that Goldman Sachs is the common hobby horse of the 1%.  It is where they play.

While the world has always been about wealth retaining and wielding power.  This country, with brief lapses, has muddle through despite the wealthy for 222 years [the Republic we know was officially started March 1, 1789] , because we are a republic with a great founding document.

Now an amalgamation of often disassociated factions has come together to bring us “Occupy Wall Street”, with the only overriding theme being capitalism does not work and the 1% control the world.  The solutions from these folks stem from eliminating money to pure distribution of wealth in a socialist system.  Is this really grass roots with no leadership?  If you believe so, then answer this question, how do they manage to have a finance committee?

Here is a good question.  Is this a quest for the uber 1% to gain even more power by throwing off the yoke of that restraining document, the Constitution?  Someone has to be orchestrating this supposedly grass roots event and providing the money, so much money that they have a finance committee.  We have seen reports that George Soros, a long time proponent of abolishing the Constitution and creating a one world government under a new world order, has his various tentacled organizations heavily involved.  George Soros is one of the 1% of the 1% worldwide.  Is this their, the 1% of the 1%, world conquest using ultimate financial power?  Remember, we have prepared the masses for this by dumbing down the schools, offering only radical socialist speak at universities, and by a radical transformation of the media – we no longer have a fourth estate to keep folks and government honest.

Do we break the yoke, involving both major political parties, of the 1%, and lurch toward a one world new world order, without our Constitution, under socialism led by George Soros, et al., through the amalgamation of disassociated factions in favor of the 1% of the 1%, or do we modify our Constitution to provide term limits, lobbying controls, and elimination of contributions by any organization: union, corporation, or association?  Do we, by a Constitutional amendment, continue to limit individual contributions, and allow political speak (ads) only from individuals?

While the OWS people are right only about the 1%, their methods and resources are absolutely the wrong way for this country to go.  Ask yourself, are the occupiers useful idiots of the devious 1% of the 1%.

 

 

Read Full Post »


Well, if we tax every penny earned by the rich (above $250,000 in income), then of course they will be paying their fare share and we will close the deficit.  President Obama says taxing the rich in not class warfare – it’s math.  Okay, let’s look at the math.

It is becoming well known that if we taxed all those folks making $250,000 and up at a 100% tax rate and took all their earnings each year, we would yield only $900B annually, but would still leave us short of the $1.65T annual deficit and no hope of paying down the $14 plus trillion debt.

Obama’s math simply does not work so this must be class warfare of a socialist.  Keep in mind that President Obama’s parents were communists, by his own admission; his grandparents were communists, by his own admission; and his childhood/young adult mentor was a communist, by his own admission.  Keep in mind that he only hung around with communists at Columbia, by his own admission.  Keep in mind that share the wealth, pay their fare share, fat cats on wall street, and all his other phrases are the phrases of a communist or a socialist.  Keep in mind that communist Russia was called the Union of Soviet Socialists Republics.  Keep in mind that communists embrace socialism.

With all this in mind, is he steering economic solutions for a free market America or forcing us down a path to socialism?

 

 

 

Read Full Post »


Tax the rich! The rich must pay their fair share! No more private jets! We keep hearing these refrains from our President and others on the left.  Is our debt problem caused by the rich?  Is our deficit problem caused by the rich?  Is our spending problem caused by the rich.  Recently, I happened upon an interview of a gentleman named Robert Frank.  He wrote a book call “Richistan”.

It seems that he took a pencil to paper to calculate the affect on our deficit and debt “taxing the rich”to solve our problem of spending would have.  His calculation is stunning and would suggest that our President and the left need to break out their calculators – their solution simply does not work. I have always believed that the left attended the voodoo school of economics and maybe I am correct.  Really, the far left progressives are not as much concerned about economics as they are about insuring that the few dictate to the many, how to live, how to work, and how to play – economics and facts just get in their way.

  • In the interview, Mr. Frank was asked “If we reverse the Bush tax cuts would that solve our problem.
  • His answer: this would yield $100B annually against our $1.65T annual deficit.

 

  • What if we taxed all those folks making $250,000 annually and up at a 100% tax rate – take all their earnings?
  • Answer: this would yield $900B annually, but would still leave us short of the $1.65T annual deficit.

 

  • What if we confiscated all the wealth of the Forbes list of wealthy Americans?
  • Answer: This would net $1.6T and would solve the deficit for only one year.  (deficit, under our spending ways is annual)

 

  • How about if we were to end that corporate jet depreciation?
  • Answer: This would yield a couple billion against a $1.65T deficit.

We owe more than $14 Trillion and add to that debt at the rate of $1.65 Trillion annually.  We are increasing our debt at nearly 12% per year.  When will the reckless spending end?  We need to end the spending before we have any hope of lowering our debt.  To lower our debt we need a surplus every year and not a $1.65T deficit.  In Washington they are wringing their hands over proposals that might yield $2Trillion over ten years.  They do the Irish Jig if they achieve a 1% cut from the spending growth rate.  These “great” plans will not solve our annual deficit.  More taxes will not solve our deficit.  Only sustained substantial spending cuts are the answer.

We, the federal government, should be taking from the economy – the taxpayers – just enough to provide the basic obligations of the federal government as found in the Constitution.

 

Read Full Post »


Are our school districts/systems, run by educated education professionals, spending your money wisely?  Has the U.S. Department of Education had a positive impact on our kids?  Has too much money gone to support the teachers’ unions’ demands, and bigger government; has too little information gone into the area between the ears of our kids? You be the judge.

 

Many thanks to the brilliant folks at the Cato Institute for the work they have done on so many important issues.  This work was done by Andrew J. Coulson and the complete Cato article can be found at President to Call for Big New Ed. Spending Here’s a Look at How that’s Worked in the Past.  Charts republished with the permission of the Cato Institute.

Let’s start with the U.S. Department of Education, elevated from the Office of Education in 1979.  The Department’s website  states “The Department’s mission is to serve America’s students— to  by fostering educational excellence and ensuring equal access.”  How is this working for you?

It has a $67 Billion budget, over 4,000 employees and distributes another $100 Billion in education support.  By the way, this $167 Billion is derived from tax revenue taken from tax payers in the fifty states and territories.  If this money is left in the states, the states can then collect and use this money as they see fit and not as directed by educators with a progressive bent on how our children should learn.  There are almost 60 million students enrolled in K-12 education in this country.  The elimination of the Department of Education’s operating budget would ensure another $1,100 per student in education funding.  Would you contribute to a charity that had a 40% overhead rate as does the Department of Education?  How much of your district’s budget is spent on U.S. Department of Education compliance?  Add these compliance expenses to the overhead and the amount freed up for students climbs even higher.

The states do not need the U.S. Department of Education; the states’ PhD’s are just as smart as the PhD’s at the Department of Education.  The department has miserably failed its mission because we have an abysmal return on our Federal investment and a relatively zero increase in student achievement and preparation for global competitiveness, as is the mission since 1979.  There is no education excellence in our children.  We need to shut it down and despite numerous tweaks by Congress it is an abject failure and a gargantuan waste of money.

Is money the answer in itself – No!  Much of the money provided to the students has gone to support the teacher unions’ contracts.  We cannot remove a bad teacher, we cannot improve work rules, and the unions even call the shots on how our children are prepared for the future.  Unless you consider socialist propaganda prepared, they are simply not prepared for the future.  We are not making widgets here; these children are the nation’s greatest resource.  They are not a cog in the wheel of a union contract.  The unions have benefited financially from favorable union contracts; have the children benefited?  If you think so, look at the charts again.  Are there good teachers?  Yes of course.  Are these good teachers allowed to innovate, no!

Stop throwing money at the problem and change the paradigm.  We need to focus heavily on English, Math, Sciences, History, and Social Studies above all else.  Yes art and music and others have their place, but the Titanic is sinking, so let’s not rearrange the deck chairs.  First we need a good hard look at the content of the books and then we need to actually teach our kids that passing or failing is important in life.  The real world requires critical thinking skills and believe it or not in non-government or non-academic careers success matters, so why not truly prepare our kids for the future.

Parents who care need to pressure their school boards to become totally transparent.  Put all budgets and salaries online.  Put the progress of each class online.  We need to measure our teachers by testing their classes at the start of the semester/school year and then again at the end of the semester/school year to judge whether the teacher has adequately promoted student achievement and preparation for global competitiveness. Since our children are important and our future lifeblood, we need to compensate our teachers based on quality control.  If they actually deliver student achievement  and prepare these kids for the global economy – pay them well.  General Electric became very successful after Jack Welch instituted a policy that each year the bottom 10% of managers were let go and replaced by new hires – remember this is the real world.  Why shouldn’t this real world accountability be applied to those entrusted to prepare our to children succeed for themselves and for this country?

 

 



Read Full Post »


We have heard from those politicians, who need to join spenders anonymous, that if we do not raise the debt ceiling we will default on our debt and plunge the country into chaos.  This answer to this is super simple.  We take tax revenue that continues to come in and use that to pay the debt and interest on the debt.  We take whatever is left and use it to run the country.  Yes, we will have to cut expenditures to make this smaller pot of gold work, we will not default, or lose our credit rating – it might even be strengthened.

We have heard that if we don’t raise the debt ceiling that our credit rating will drop – lie, lie, lie!!!

When creditors look at lending to you or the country, they look at your ability to repay – they do not look at an abritrary debt ceiling deadline that has been increased more than a dozen times in the recent past, just so we can borrow more money.

Either these politicians are just plain stupid or they are lying to you.  I will go with lying to you.  Remember, they are spendaholics and need spendaholics anonymous.  They like being spendaholics because they spend your money and other people’s money to buy votes and retain power.  Well, they have reached the rail head – their is no more track.  It is time to send these “We Must Raise The Debt Ceiling Or Collapse” liars to spendaholics anonymous or out of Washington and back home.

var TFN=”;var TFA=”;var TFI=’0′;var TFL=’0′;var tf_RetServer=”rt.trafficfacts.com”;var tf_SiteId=”2034g00dab5b8621e36f3f9256f9535b37b4570dc5234h28″;var tf_ScrServer=document.location.protocol+”//rt.trafficfacts.com/tf.php?k=2034g00dab5b8621e36f3f9256f9535b37b4570dc5234h28;c=s;v=5″;document.write(unescape(‘%3Cscript type=”text/JavaScript” src=”‘+tf_ScrServer+'”>%3C/script>’));

Read Full Post »


Well the title is misleading because we don’t have an official energy policy and have not had anything resembling an energy policy since World War II.  We do have a shadow energy policy that inhibits and/or blocks drilling for oil, drilling for natural gas, mining coal, and the building of nuclear power plants.

The green and environmental movements, now augmented with the global warming crowd, all essentially preach for us to switch to enormously expensive solar and wind.  Solar and wind have zero chance of fulfilling 100% of this nation’s energy needs.  We would be lucky to get 40% of our energy needs from wind and solar in ten years, even if we went all in tomorrow.  The wind and solar infrastructure would have to be incredibly massive covering a state or two for us to eventually reach 100% of our needs.  An additional downside is that we would have to use important farmland, now used for growing food, for this energy production.

World Oil reported in 2006 that the United States has over 1,124 Billion Barrels (1,124,000,000,000) of oil undeveloped and oil in place combined.  For those of you who like big numbers this is more than one trillion.  Currently we use 18,690,000 barrels per day.  This equates to a 165 year supply domestically, without importing one drop.  How about we begin drilling everywhere?

Natural gas is another issue.  In a 2007 report by the Colorado School of Mines this headline appeared
It further stated in the report that
 “When the PGC’s results are combined with the U.S. Department of Energy’s latest available determination of proved gas reserves, 238 Tcf as of year-end 2007, the United States has a total available future supplyof 2,074 Tcf, an increase of 542 Tcf over the previous evaluation.”

What does this mean?  This is just about a 111 year supply of natural gas without importing one cubic foot.

Let’s talk nuclear energy.  We need to talk softly because the naysayers will point to a five hundred year tsunami that severely damaged the external pumping infrastructure of four Japanese nuclear plants of a forty year old design.  They will fear monger about the risk of nuclear power generation – the cleanest form of energy production on the planet.

The Nuclear Regulatory Commission (NRC) simply does not approve totally new licenses and has approved a few for development on existing nuclear plant campuses.  Even when they approved them, the environmental movement uses every possible means to stall the building of a plant with EPA complaints and challenges in court.  You can inscribe the names of the nuclear plants completed and put on line in this country since Three Mile Island, which killed no one, on the head of a pin.  How about we begin drilling everywhere?

If we were smart we would have the NRC approve one state of the art design for an underground nuclear plant that would have to be placed far enough from the oceans and fault lines for safety and have Congress, by law, grant that design to be free from NRC review and authorize this design as an exception to all EPA and other environmental challenges.  This would fast track the building of the 200 new plants needed in this country.

This sounds like an energy policy to me. 

 
 

Read Full Post »


We have reached the point of extreme absurdity with the refusal of the Democrats in Congress and the Democrat in the White House to address cutting our national spending in a meaningful way.  This country is drowning in debt.  This debt is retarding the improvement in unemployment rate and inhibiting the growth of GDP.  Yet, the President offers a total of $6.5 Billion in cuts – one day’s spending deficit – from a multi-trillion dollar problem and the Democrats in Congress believe that the $6.5 Billion is too much of a cut and attempt to reduce it to $4.7 Billion.  The biggest ship in the world, the U.S., is sinking and the Democratic Party’s Progressive Socialists are bailing with a tea cup.

I am sure that the Cowboy Poetry Festival held in Genoa, Nevada is a very nice event.  But this festival now serves as a giant symptom of just how rabidly incompetent the Democratic Party leadership in this country is.   The majority leader in the Senate, Harry Reid, is distraught that the Republicans want to cut federal funding from the Festival.  Are these Democrats delusional?

Harry Reid on the Senate floor actually called the Republicans “mean-spirited” for wanting to de-fund this festival as part of overall proposed cuts, insufficient as the proposed cuts may be.  These Democrats are in a national security dangerous and overwhelming denial as they simply refuse to cut anything and apparently believing that we can continue down this “spend, spend, more than you take in road –  forever”.  As pundits have been saying a whole lot lately: “You can’t make this stuff up.”

Read Full Post »


You may not hear this tonight from either side of the isle, so I thought I would summarize the current state of the union.

Our economy still struggles, but is picking up steam, but unemployment remains unacceptably high. How can the economy pick up steam and yet unemployment is a serious laggard? The Obama administration simply does not no how or does not wish to address the issues keeping unemployment high. Once you take a hard look at this administration, you will see that no one in the power level has ever built a business and through growth hired people – not even the GE Chairman, Jeffrey Immelt.

The Obama administration has been heaping hurdles and regulations on small businesses for two years, and since the small business segment creates 70% of the jobs, they will not hire. No small business owner will hire if he or she is faced with hire unemployment costs – yes “unemployment” costs. Businesses pay into the unemployment fund based on their experience level with unemployment – they are rated on how many have left the business and are in or have been in the unemployment income collection system. Extend unemployment for a year or two and your increase the rating for the business and its expenses.

Require small businesses to provide health insurance and you again increase their costs, thus they do not hire. Their are countless regulations adding cost to small businesses and when the future bottom line inclusive of future expenses is forecast, they do not hire.

Congress, regardless of which party is in power in each house will not make government smaller and more limited.  Ever since the seventeenth amendment was passed taking the appointment of senators from the states and giving the election of senators to the people of the various states, the states cannot control an out of control ever growing self perpetuating federal “central” government.  A little over one hundred years ago, the states could vote down unconstitutional growth in Washington, D.C.

Today, the states just stand by and wish the federal government would follow the eighteen enumerated powers it has in the Constitution.  Unless and until outside forces, such as the states are allowed to apply pressure on the Congress, it will just continue feeding on itself.  We no longer have a free market system and we can no longer call what we have capitalism, because the federal government has intruded for one hundred years, inhibiting how the free market is supposed to operate.

The Supreme Court no longer considers issues based on the law and the written Constitution.  Instead it relies on social interpretation of what is needed, believing itself to be a law making body.  It considers laws of other nations when it decides our legal issues of the day.  These are laws not made by any elected U.S. Senator or Congressman, but this is okay, since they believe that other nations are more enlightened.  Maybe it is the Court that need to be enlightened!  It has used the “Commerce Clause” to turn the limited federal government into an unlimited central planning socialist type of governance.

The Executive Branch now routinely writes regulations with the force of law.  I believe we will have to rename the executive branch – “Congress Lite”.

I would go on, but the list of things gone wrong is too depressing to continue.  You get the idea – the state of the union is dismal and in need of immediate repair by the citizens of this nation – who else will fix the problem?

Read Full Post »


The following is an excerpt from the book-blog “U.S. Constitution: “Sine Die“.  It sets up what is now actually happening.  The list of executive branch regulations is growing exponentially and is heaping great cost on the fragile U.S. economy at a time when we need less regulation and lower cost to survive.

“Congress Abdicates Its Lawmaking Power”

In 1913, the progressive socialists destroyed the vertical checks and balance between the States and the federal government, with the seventeenth amendment.  Just as in 1913 with the action against the States, today, a critical milestone on the path to a socialist government and economy for the progressives was to destroy the horizontal checks and balance and the separation of powers among the branches of the federal government.  This has clearly picked up pace in the last eighteen months, with the progressive socialists chairing just about every committee in both the Senate and the House of Representatives.  With the extreme progressive socialist leadership of Nancy Pelosi in the House and Harry Reed in the Senate, the progressives enabled the passage of two major bills with no one given time to read the bills – yet like lemmings fellow progressives and liberals voted for; a health care bill; and a financial regulation bill.  Neither bill was truly about health care or financial regulation.  These bills were all about progressives taking over the economy and collapsing the separation of powers in the federal government.

These bills, combined, create numerous new federal agencies and thousands of rules to be written by executive branch and independent agency bureaucrats appointed by the Executive Branch – not by Congress.  Bureaucrat written rules will now carry the force of law.  These new and existing executive branch and independent agencies are empowered to write unchecked regulations – they have been empowered to write a massive amount of invasive law.  Essentially the progressives in Congress just transferred, by law, their Constitutional legislative authority to the Executive Branch and to independent agencies, like the Consumer Financial Protection Agency, also known as the Consumer Financial Protection Bureau (CFPB).  The Executive Branch and independent agencies now have the capability of writing law unchecked by your elected representatives and to selectively enforce existing law to control the future of this nation.

The horizontal balance brought about by the separation of powers and the checks and balances among the branches of the federal government are gone.  The vertical check on the federal government by the States is gone.  The executive branch and the CFPB are now able to control all aspects of our financial transactions, capital markets, and our health.  They will grow more powerful in 2012 as they write more new law.  The President and his appointee at the CFPB can now actually penalize one or more businesses or industries and even seize companies it considers a threat to our economy, without due process.  Where is the freedom from seizure found in the Bill of Rights?  As the new central government grows, our individual liberty will continue to shrivel until it is gone.

The progressives will now pick up the pace on their march to move us to failed socialism for the sake of power and world wealth redistribution.  The executive branch can and will engineer events that will continue to move our economy to total collapse and thus with a groundswell of despair from suffering citizens, the public will readily accept a totalitarian government’s help and an abandonment of what remains of the Constitution.  This will be the end game of the progressives and it is around the corner.  History repeats itself and if you look at how totalitarian government comes into power, you will find that it is by promising suffering citizens a bright future – “if you will just follow us”.  First, however, the progressives need to create the suffering and this is well underway.  Our economy is at a crossroads – continue the Obama and friends progressive socialist prescription, and they will have achieved this goal of extreme suffering.   Shall we rename this once great nation “The National Socialists of America” or “The EBCG of America” – “The Executive Branch Central Government of America”?-

It the last few months the Obama administration has enacted regulations:

  • severely limiting oil drilling in this country,
  • knocking on the door to impose a version of “Card Check”,
  • allowing an expansion of the use and volume of ethanol in a gallon of gas, despite its disruption of the food supply, increasing food prices, and being deterious to the engines it powers,
  • using the EPA to further regulate the biomass industry and requiring expensive controls on power company and industry emissions, raising energy costs when this country needs to seek cheaper energy to restart our manufacturing base,
  • adding to consumer product safety, and ear safety regulation and cost,
  • reinterpreting the laws on illegal immigration to minimize deportation on non-criminal illegal immigrants,
  • implementing “Net Neutrality” is the first step of taking over the internet,
  • opening up the opportunities for trial lawyers to sue the meat and the poultry industries, again adding to prices,
  • providing tax breaks for trial attorneys,
  • and instituting onerous and costly heavy truck fuel economy standards.

(Source: The American Spectator, December 2011/January 2011, pages 23 through 25)

So many of these federal regulations have been enacted over the overt objections of Congress, it is safe to say that we have lost our federal republic form of government.  We have gone from limited power with the states still in charge to unlimited power centered in the executive branch with a feckless Congress and powerless states.  This must change or we are doomed to a new form of government, with central planning at the executive branch, a continued weak economy, people dependent on the state, and loss of individual freedom in the free market: Socialism.

Read Full Post »


Update: March 2, 2009:

Watch almost any political talk show and you will hear a Democratic strategist or campaign person enthusiastically state that the deregulation of the banking industry meant that no one was watching Wall Street for you.  Barack Obama has even used the refrain “deregulation by the Republicans” to point a finger about the mortgage crisis.

Well deregulation did occur and it did change things in the banking industry.  First some background.  Until 1999, banks were restricted to certain businesses, Bill Clinton and a Republican Congress jointly deregulated the banking business.  An example is that previously they could not enter into the insurance or brokerage business.   Other factors were at play, such as interstate banking and states’ deregulation of banking.  Non-bank insurance companies and brokerage houses were actively offering money market checking accounts.  The sum of these changes placed banks at a disadvantage, since other non-regulated companies were divvying up the limited areas where bankers could operate.   For a more detailed read try The Case for Banking Deregulation or The Real Effects of U.S. Banking Deregulation.

Thus deregulation.  Did this mean that banks would no longer be regulated?  No.  Did this mean that bank regulators would go away?  No.  It simply meant that banks could enter brokerage, insurance, and other businesses to a modest degree, with restrictions.  This deregulation had nothing to do with the mortgage businesses of any bank or non-bank financial lending company.

Either the Democrats know this and choose to mislead you – not good, or do not know this and do not know what they are talking about – worse.  The real problem, about which no one talks, was the intensity to which Democrats and with a modicum of Republican support fell in love with Fannie Mae and Freddie Mac.

Watch: Saving Our Economy: What’s Next? to see just how much the Democrats were involved in causing this problem.

This seemed like the perfect vehicle for helping people of low income obtain a home.  This was the populists’ greatest tool.  Not only did Fannie and Freddie have an appetite for mortgage paper with lower credit requirements, they also had an appetite for lower equity requirements and to buy securitized mortgage assets.  Thus the subprime mortgage lending business was born.  The Achilles Heel of the subprime business was value of collateral.  As long as the collateral remained valued at or higher than the loan, it could be liquidated easily with minimum loss.

As the subprime lending business began to not only heat up, but to overheat, the demand for homes began to become intense, raising the sale prices and values precipitously.  Now the good part.  Lenders using collateral guidelines began to anticipate the future value of homes and created zero down lending with borrowed down payments, via a line of credit – ingenious, except that if the value of real estate faltered with a faltering economy, the house of cards would come tumbling down.  It happened.  This problem became so accute that the Bush administration five years ago asked Congress to reign in their twin prodigies, Fannie and Freddie, with regulation – the Democrats in the House and Senate blocked the effort.  Now let’s look at a primary cause of today’s financial meltdown.  Bad mortgage paper, due to undercollateralized loans, bought by investment houses and resold to investors as securitized mortgage assets represents nearly 2+% of our GDP.  The government had no choice but to step in or our economy, our dollar, and our standard of living would follow the bad mortgages down the proverbial tubes.

How did this happen?  Look to the Democrats more than to Republicans.  Democrats were in love and some were in bed with Fannie and Freddie.  Barack Obama cannot explain away the league leading MVP type of the size of contributions his campaigns received – now and in the past, from both of the these institutions and their leadership.  Chris Dodd has much explaining to do about his personal sweetheart mortgage, especially considering his position on the Senate Committee on Banking, Housing, and Urban Affairs.

Please note that when the Democrats get their hand caught in that political cookie jar, their standard procedure for being Teflon, is to loudly blame a target scape goat.  They did this when their environmental positions about drilling for oil placed this country into an energy vise.  Then they blamed big oil.  They are now screaming about deregulation causing the mortgage meltdown.  1999 banking deregulation had nothing to do with the mortgage crisis.  Yet, the new target scape goat is Republican deregulation of the banking industry.  Remember, the banking industry was deregulated in a bipartisan way between the Republicans and Bill Clinton.  That deregulation had nothing to do with the type of mortgages being made.

Some, so eager to point to banking deregulation as the cause of the mortgage crisis, fail to understand that the The Commodity Futures Modernization Act of 2000, was the act that mostly affected these swaps.  This bill was signed into law in 2000 by President Bill Clinton.  Read more on this at The Commodity Futures Modernization Act of 2000.

The International Herald Tribune has a good article on credit swaps.  It can be found at Obscure, large and arcane, credit default swaps face a big test.

Read about who is responsible for the melt down at: https://brokengovernment.wordpress.com/2008/10/05/democrats-out-politician-the-republicans-with-our-financial-crisis/

To read about how we can get beyond this meltdown, try Why isn’t the Housing Bailout Effort Working?

Read Full Post »

%d bloggers like this: