Actions Speak Much Louder Than Words

I realize that my fellow Liberals and Progressives just can't see it, but the major media, the blogosphere and the Twitterverse are dominated by progressive and liberal voices. Those voices tend to be very articulate, passionate and, at times, overwhelming.

Skeptics are often shouted down in comments sections at the Daily Kos or The Huffington Post. Nay-sayers are ridiculed, called cruel or hateful or racist. Of course such skeptics usually sulk away and watch a few hours of Fox News to repair their egos. The result is the remaining progressive voices reinforce themselves, rising to a tidal wave of liberal thinkspeak.

What is lost is any real understanding of opposing thought. If you never listen to opposing views, never try to understand other ideas, concepts or solutions, you remain stuck in a quagmire of groupthink viewpoints.

Such groupthink cacophony insulates and isolates many government officials, too. As a result they find themselves both unable and unwilling to "think outside the box" to solve economic issues. The result is the fascinating migration of people from union dominated, taxation heavy, goverment controlled states to the freedom, low taxes and robust economies of conservative states.

From today's Washington Examiner: Low-tax states will gain seats, high-tax states will lose them

"Migration from high-tax states to states with lower taxes and less government spending will dramatically alter the composition of future Congresses, according to a study by Americans for Tax Reform."

"Eight states are projected to gain at least one congressional seat under reapportionment following the 2010 Census: Texas (four seats), Florida (two seats), Arizona, Georgia, Nevada, South Carolina, Utah and Washington (one seat each). Their average top state personal income tax rate: 2.8 percent."

"By contrast, New York and Ohio are likely to lose two seats each, while Illinois, Iowa, Louisiana, Massachusetts, Michigan, Missouri, New Jersey, and Pennsylvania will be down one apiece. The average top state personal income tax rate in these loser states: 6.05 percent."

"The state and local tax burden is nearly a third lower in states with growing populations, ATR found. As a result, per capita government spending is also lower: $4,008 for states gaining congressional seats, $5,117 for states losing them."

"And, as ATR notes, “in eight of ten losers, workers can be forced to join a union as a condition of employment. In 7 of the 8 gainers, workers are given a choice whether to join or contribute financially to a union.”

"Imagine that: Americans are fleeing high tax, union-dominated states and settling in states with lower taxes, right-to-work laws and lower government spending. Nothing sends a message like voting with your feet."

The "D" Word

"Actions speak louder than words."

People may not be saying the "D" word, but they sure are acting like "Depression" was on the horizon. All over the world people are buying gold at a pace never before seen in history. Gold prices hit an all-time high and demand is simply exploding. Bullion dealers cannot meet the demand. Gold coins are scarce to non-existent in dealer's showrooms. The raw price of gold surged to the highest level since the collapse of Lehman Brothers in 2008 amid volatile financial markets in Europe.

Spot gold in London has jumped to above $1,230 a troy ounce, surpassing the previous record set in December last year.

As an investment Gold has been, well, golden. Gold prices are up almost 26 per cent since the beginning of the year.

The London Financial Times reported today, "In Frankfurt, gold sellers said that demand late last week was three to four times normal levels. The spike appears to reflect concerns in Germany about the potential inflationary impact of the European Central Bank’s decision to buy up eurozone government bonds in the wake of the Greek debt crisis."

Almost since the dawn of mankind, gold has been considered a safe haven in times of economic or political turmoil. It can always be traded in any country or region of the world. It is easy to transport and easy to hide.

The Financial Times goes on to report, "Global investors, led by the US, last year bought a record 228.5 tonnes of gold in the form of bullion coins, up from 77.4 tonnes in 2000, according to GFMS, the London-based precious metals consultancy."

In the United States, as states, cities and school districts continue to slash budgets and lay off workers, the economic downturn is likely to continue. If Europe collapse, all bets are off. World wide "Depression" is an absolute certainty.

Looking the Other Way

President Barack Obama has an impressive and important agenda. And he has the ability to multitask, delegate and manage a complex process of proposals with apparent ease and competency. I am both impressed and pleased.

In addition, let me mention that I strongly approve of his foreign policy agenda and his first contacts with leaders on the world stage. President Obama is living up to our highest expectations. American is both better liked and more respected under President Obama.

I know many Republicans are busy picking nits. And I know many of my conservative readers disagree. I appreciate both their genuine beliefs and the role of the "loyal opposition."

Finally, I recognize that the major media, the press, is not doing their job and their very unhealthy love affair with the President continues. This romance does not serve our nation well. We need it to be over. Now.

And here's why. Flying beneath the radar is a deficit and spending/borrowing program that runs the risk of destroying President Obama's administration. Tragically, even if Obama somehow survives, the country will be left in ruins.

I've listened to all the Obama administration spokespersons and the left wing talking heads and I've read many of the important left wing blogs, so I know all the official explanations. I also recognize that at least 50% of the apologists don't believe a single word they are saying. Under the cloak of false confidence, they are secretly praying that somehow Obama can pull it off.

He can't.

Meanwhile I know that Republicans are attacking the deficit because they think it's their job. However, since Republicans have little to no credibility on deficit spending, no one is paying any attention.

As a result a time bomb that will have the power of 100 atomic explosions remains ticking beneath the surface. It will explode unless credible economists and Democrat leaders wake up and immediately sound the alarm. We cannot support this level of debt. It is economically not possible.

By the end of Obama's first term we run the risk of both interest rates and unemployment exploding to double digits. I want to emphasize again that President Obama's Stimulus Package (actually it is Nancy Pelosi's Stimulus Package) will not work. It's not that I don't want it to work. I do. It just won't. It was nothing more than a badly conceived waste of taxpayer's money.

Meanwhile here is the news, White House Boosts Deficit Projections:

WASHINGTON -- The federal budget deficit will widen to a record $1.841 trillion this fiscal year, $89 billion wider than previously expected, because of the weak economy and expensive financial rescue, the White House said Monday. The Obama administration expects the deficit to be $1.258 trillion in fiscal 2010, which begins in October. In its February budget overview, the White House predicted a $1.752 trillion budget gap in 2009 and a $1.171 trillion deficit next year. Changes in a host of tax and spending projections are propelling the deficit higher in the near term, primarily the result of the continued woes of the U.S. economy. "The change in the deficit estimates reflects upward technical revisions in light of new information regarding the collection of receipts, financial stabilization efforts, and other federal programs," Mr. Orszag said in a blog posting. OMB now expects total government receipts to decline nearly 15%, or $368 billion, this year. As a percentage of gross domestic product, receipts are seen sinking to their lowest level since 1950, 15.1%. Since February, the estimate for this year's corporate tax receipts has fallen $18 billion, while projected individual tax revenue has declined $5 billion. The deficit is now expected to reach 12.9% of GDP this year -- a level not seen since World War II. Over the next decade, the White House expects accumulated deficits of $7.1 trillion. The White House still says it can halve the deficit by the end of President Barack Obama's four-year term. Yet the new figures are likely to trigger more Republican criticism that the administration isn't doing enough to tackle runaway government spending. While the White House has updated its top-line deficit figures, it hasn't changed the economic assumptions that underpin the budget, which are based on information available at the end of January. The economy appears to have worsened since then, potentially foreshadowing even wider deficits. The administration's forecast calls for a recovery to begin by the end of this year and gain momentum in 2010. Specifically, the White House expects the economy to contract 1.2% this year before rebounding and growing 3.2% in 2010 and 4% in 2011. After miserable first-quarter growth data, the White House's figures look even more optimistic now than they did in February. The White House expects the unemployment rate to average 8.1% this year. Last month, though, the rate surged to 8.9%, the highest level since 1983.

In summary, we must all stop looking the other way. The deficit is the 800 pound gorilla in the room. It will destroy us all.

We can only accomplish President Obama's important agenda with a realistic outlook and with common sense spending and control of the deficits. We must begin today.

Fighting Fire with Willful Ignorance

There is no need for me to add a lot of commentary to the library of bloggery already on line about the "tax and spend protest" Tea Parties taking place around the country later today. From the Daily Kos to Michelle Malkin, posts, schedules, analysis and buffoonery abound.

What I am appalled about this early morning is the left's astonishingly coordinated misinformation campaign against the Tea Party movement.

I genuinely don't know if the Tea Parties will be a rousing success or just fizzle out and die. I know I'm not attending one and I'll likely skip Fox News wall to wall coverage. But I do understand both the motives and the message behind these protests.

And, if I'm smart enough to understand this groundswell of protest, I'm quite positive my fellow liberals understand it too. So why are they all pretending (or at least the so-called progressives are pretending) to completely misunderstand what is happening? Is it denial? Is it a misinformation campaign? Is it, as some conservatives argue, fear of the common man? Or are they all just plain stupid?

Virtually all of the stupidity, or denial, or misinformation is wrapped up in Paul Krugman's rambling, nearly incoherent, monument to fear column in Sunday's New York Times. Krugman starts off with the totally incorrect premise that the Tea Parties are fake protests carefully orchestrated by the Republican Party. What a frakking joke (homage to Battlestar Galactica). The incompetent Republicans are so screwed up they can't even organize their party's national committee, let alone a nationwide, massive protest.

But Krugman goes rapidly down hill from there.

I'm going to end my short commentary here and direct you to all immediately go over to Mary's magnificent FREEDOM EDEN blog and read her two brilliant rants: Krugman: Tea Parties Forever and Eugene Kane and Tea Parties

My advice to my fellow liberals is to focus on reality. People are upset and genuinely concerned about our exploding national debt. First, we should also be concerned about an unsustainable national debt. Second, lying about the nature and purpose of these protests hardly helps our cause and actually denies us the opportunity to argue the economics and the issues behind the President Economic plan.

The French Revolution

As I watch television this weekend and watch the protesters in New York DEMAND that the governor "tax the rich" instead of cutting services, I feel like I'm watching the French Revolution unfold before my very eyes.

Class warfare was at the very heart of the French Revolution! In 1789 and for ten horrific years, the country of France imploded. Millions of people died. The government was overthrown and virtually the entire upper class of French society was executed, including King Louis XVI and the legendary Marie-Antoinette. It's the stuff of legend, including many great (if highly romanticized) movies.

While I don't think for even one second our country runs the risk of revolution, many of the factors that led up to the French Revolution are identical to the situation in the United States today.

Economists tell us that recessions and depressions are cyclical. In the late 1780's France was in the midst of a major depression. But here is where the parallels get much more interesting. France was saddled with a massive National Debt. Fighting two wars had caused King Louis XV to borrow huge sums of money. Keep on mind one of those wars was the American Revolution. France had sided with and aided the colonists against England.

But the huge National Debt was way too much for the government to handle. Faced with this crushing debt, the government instituted massive tax increases on every part of society, including and especially the rich. The gigantic tax burden brought the French economy to a complete standstill. The very financial backbone of the country was broken in a manner not unlike today's banking crisis! The movement of goods and services came to a halt!

Unemployment exploded! People were unable to find work. The French monetary system stopped working and massive inflation robbed the poor from even the most basic necessities. People literally people could not afford bread.

Meanwhile King Louis and his advisers were unable to cope with the rapidly deterioration of the country's economy. Ultimately the entire country collapsed under the weight of an unrepayable National Debt.

The people of France blamed the rich! They felt, however incorrectly, that the rich were causing the problems as a ruse just to rob the poor and enslave them. This was, of course, untrue and the rich, the aristocracy, were also suffering from the complete breakdown of society. None-the less, massive protests occurred that deteriorated into riots and, ultimately, into revolution.

The goals of the revolution were noble, at least in theory. Liberty, Equality and Fraternity! The rich were forced to pay the ultimate price with the invention of the guillotine.

George Mason University has built a magnificent on-line library and resource center to study the French Revolution with hundreds of essays, text documents, images and even songs. I continue to be amazed with the sheer power of the Internet.

In another interesting parallel, it was King Louis XIV who began a centralization of power that led to the very downfall of France. Prior to that, France was a very model of decentralized capitalism. Only when Louis XIV centralized power to the Monarchy was it even possible to build the huge National debt that led the country to its downfall. But Louis XIV and Louis VX felt the government could run society better than the free market!

The sections of the George Mason University Website that discuss the monarchy are especially interesting.

Other eighteenth-century descriptions of monarchy advocated centralizing power in the hands of the King. When the Franks first decided to establish their own government to replace the fading Roman Empire, argued Jacob-Nicolas Moreau, they entrusted the King with all authority. To spread ideas such as Moreau's, French monarchs published newspapers supporting their actions. In one such periodical, the Gazette of France, the crown took a subtle rather than a propagandistic approach: it never mentioned its opponents and treated royalty with total reverence—even though the news being reported was not necessarily the most important events of the day.

Can anybody say "Rush Limbaugh?" But I digress.

The conflicts of 1787 to 1789 over the monarchy's financial problems led to a major shift in the way France was governed. In part because of the long drawn-out wars of the eighteenth century, the French government had for some time been spending much more than its annual revenue. Usually this money was borrowed. However, for reasons that historians still argue about, this source of funds dried up in the 1780s. Mounting debt and a continuing high level of expenses then forced the monarchy to seek fundamental financial change to put the state on a secure fiscal foundation.

Like Louis XVI, our President is failing to focus on the rapid deterioration of the economy or on the National debt. Instead, like the French monarchy, he is centralizing authority and control of society. We defend Obama because he wants to help the poor and improve their life. But, keep in mind, so did King Louis the XVI.

As the economy falters, President Obama is determined to implement a wide array of social programs and isn't letting the economic situation distract him from his predetermined agenda.

Don't think for even a minute that the United States can't fail under the weight of massive national debt. It can, and if the problem isn't addressed quickly, it will.

Again, revolution isn't going to happen, but a peaceful mini-revolt in Congress and on Wall Street is well underway. While Obama has failed to notice the revolt so far, it will soon slam him into with the force of a Hurricane. He will lose the support of his party and he will lose the support of the public.

We are in a full blown Depression. The stock market has crashed. People's entire life savings have been wiped out. President Obama is spending hundreds of billions of dollars completely without regard to the widespread damage the non-stop borrowing and spending is causing.

We are a peaceful and enlightened country. The lofty goals of Liberty, Equality and Fraternity born in the French Revolution have taken root and grown here in the United States.

Revolution will not happen in the United States. The guillotine will not return. But the collapse of our modern day Camelot is not an impossibility. We are in a full blown Depression, just like France in the 1790's.

POST SCRIPT: Two very interesting things struck me as I read about the French Revolution. First, King Louis XVI was enormously popular throughout the revolution. He had very broad support of the people right up to, and even after, his execution!!

Second, the relative democracy of King Louis XVI's France (there was an elected Parliament with three houses of government (nobles, commoners and clergy) and an independent court system) was replaced with an absolute dictatorship of Napoleon.

Picking Your Opponent

We are looking down the barrel at a ten year Depression. And that is the best case scenario. Best Case.

Barack Obama and a blind, deaf and dumb Democrat Congress have sown the seeds of the destruction of the United States and they are waiting for those seeds to germinate.

Lots and lots of folks are aware of this and they are all screaming at the top of their lungs. The Congressional Budget Office. Wall Street. The nation's leading and most respected economists. Historians. And a few politicians. And even a few in the media, mostly the financial media.



Make no mistake about it. The sky is falling. You are making the most important financial decisions of your entire life right now... whether you know it or not. The Dow dropped below 7,000 today and it will go much lower, possibly as low as 2,500. Unemployment will reach 15%. And the federal government will become technically insolvent, unable to meet its obligations or pay it's debt.

Three things will happen. First, taxes will rise on every single American, including those well below the poverty level to totally oppressive rates. Second, federal services will be cut to the bone, including medicare and social security. Finally, the government will forced to take extraordinary financial measures, either printing money without financial backing, reducing the dollar to a third world currency, or by simply defaulting on the debt, using our military power to demand restructure of debt from our creditors.

Can this be avoided? Only if the nation is totally committed to bringing our best minds and our unified political forces into solving this crisis. It will take the Democrats who control the government to actually take responsibility for their actions and bring back the fiscal responsibility they demanded, but never quite accomplished, during the Bush administration.

What is happening today is the equivalent of a thousand Hurricane Katrinas. The American people are trapped on the roves for their houses and the flood waters are rising. And the federal government's response is worse than anything during Katrina. Far from sending in troops or FEMA, the Obama/Reid/Pelosi team is pumping in more water and demanding no boats enter the rising flood. Help is not on the way.

First I believe President Obama wants to do the right things. He is not a bad man. He is naive and incompetent. He has no idea a crisis looms. He wants to reinvent America and wants to have a clear path to complete his social agenda. That would be all good, I would be the leader of his team, except there is a crisis. There are a hundred Hurricane Katrinas. The flood waters are rising. People are going to die.

So I watched MSNBC tonight and marvelled at Chris Matthews, Rachael Maddow and Keith Olbermann who decided in some sort of Machiavellian unison that the lead story on earth was Rush Limbaugh. Yep. Rush Limbaugh.

Aided by President Obama's Press Secretary Robert Gibbs, presumably with Barack Obama's approval, they made a radio talk show host the number one issue in America. The Dow has now robbed Americans of 60% of their life's savings and is crashing to deep depression levels and the most important thing on earth is Rush Limbaugh?

I feel like I'm watching Joseph Goebbels ramping up the crowds for Kristallnacht. And while Olbermann is deranged, he is no Geobbels, so a sort of an apology is in order. Demonizing Limbaugh is not the equivalent of demonizing the Jews. Olbermann isn't trying to start a race war or promote violence against conservative commentators. Well, except maybe Bill O'Reilly, but that's a whole 'nother story.

Still, you do have the leaders of the Democrat Party, many liberals (and progressives, what ever the hell they are), attempting, apparently successfully, to turn Limbaugh, rather than our failing economy, into the enemy. Since the Democrats are the ones actually destroying the economy, they really need this misdirection, this new enemy and the highly visible Limbaugh fits the bill. He's an easy target. And he is huge, in every sense of the word.

How long will this strategy work? Let's pray not long. Everyday that passes without real economic stimulus and every day that passes without real fiscal responsibility, the closer our nation moves toward the real Armageddon.

Rush Limbaugh? Are all Americans that stupid? I know for sure that Chris Matthews, Rachael Maddow and Keith Olbermann are. Robert Gibbs has played them like a fine violin. Otherwise they would cover the real news.

The Party of No

While Wall Street and virtually all economists not on Obama's payroll understand the depth and breath of the onrushing governmental spending disaster, it will well beyond the grasp of most ordinary Americans. Trillions of dollars. We can't even begin to understand numbers that large.
Sadly, it's well beyond the grasp of most politicians in Washington, too.

The Washington Dems are trying to blame the whole thing on previous administration, normally a foolproof strategy good for the first couple of years of any new administration. Unfortunately, in this case, such an argument doesn't stand up to even the most cursory analysis. Compared to Obama's spending, Bush was a rank amateur. Actually Bush was a rank amateur in most areas of government, but I digress.

While Dems love to point a finger at the cost of the war in Iraq or the so-called tax breaks for the rich to explain the deficit, Barack Obama has done more damage in two short weeks than Bush did in eight long years. The chart below says it all.

We are in the process of creating an unpayable debt. And inflation is just months away. The complete default of the United States is clearly on the horizon.

How Nancy Pelosi could propose an 8% increase in spending in this recession is beyond all comprehension. That she did it on top of $800 billion in new spending, not so cleverly disguised as a "stimulus package," is stunning. If only anything passed earlier was actually a stimulus, we might have a prayer. It wasn't and we don't.

Just read some of the analysis dominating the nation's newspapers and economic journals.

Reuters reports Obama budget plan forecasts $1.75 trillion deficit. "An eye-popping $1.75 trillion deficit for the 2009 fiscal year is projected in Obama's first budget. That is equal to 12.3 percent of U.S. gross domestic product."

ABC News points out that Obama is planning the largest tax increase in US history: Almost $1 Trillion in New Taxes Over Next 10 yrs, Starting 2011. "President Obama's budget proposes $989 billion in new taxes over the course of the next 10 years, starting fiscal year 2011, most of which are tax increases on individuals."

While the President attempts to aim tax increases toward the highest wage earners, the facts simply prove his oft stated plan cannot possibly raise the needed revenue to offset his massive spending plan. In a detailed analysis, The Wall Street Journal shows that even if Obama taxed this top 2% of wage earners at 100% of income, he would still fall trillions short of the revenue needed. The 2% Illusion shows the complete fallacy of Obama's tax the rich scheme.

"But let's not stop at a 42% top rate; as a thought experiment, let's go all the way. A tax policy that confiscated 100% of the taxable income of everyone in America earning over $500,000 in 2006 would only have given Congress an extra $1.3 trillion in revenue. That's less than half the 2006 federal budget of $2.7 trillion and looks tiny compared to the more than $4 trillion Congress will spend in fiscal 2010. Even taking every taxable "dime" of everyone earning more than $75,000 in 2006 would have barely yielded enough to cover that $4 trillion."

Tragically Obama's may well hit the lower and middle classes hardest of all. Since it is simply impossible to tax the rich enough to cover the deficit, hidden taxes on energy that hit the poor the very hardest will make up a huge part of the shortfall.

What Obama's plan does do is tax small business into oblivion. Virtually every small business will be really hurt by Obama's announced tax plan. Instead of helping the economy, these taxes will lead to massive unemployment. What Obama fails to announce is virtually all small businesses fall under his tax increase plans. The ABC Analysis covers the tax increases on business.

In order to sell this insane plan in congress, Dems are designing the fight as Class Warfare. While John Kerry fired the first salvo yesterday, the demonization of the rich and corporations isn't lost on the Associated Press who detail it today's article, Obama plan brings cries of class warfare.

While Democrats are calling the Republicans the "Party of No," a resounding "NO" is exactly what is needed if we are to save our economy and, ultimately, our country. Sadly, it will require Democrats to wake up and show some sense and demand economic realism and restraint from the Democrat leadership and the tragically naive President Obama.

It Will Take Great Courage......

This is probably the worst bill that has been put forward since the 1930s. I don't know what to say. I mean it's wasting a tremendous amount of money. It has some simplistic theory that I don't think will work, so I don't think the expenditure stuff is going to have the intended effect. I don't think it will expand the economy. And the tax cutting isn't really geared toward incentives. It's not really geared to lowering tax rates; it's more along the lines of throwing money at people. On both sides I think it's garbage. So in terms of balance between the two it doesn't really matter that much. Harvard Economist Dr. Robert Barro

The left wing Progressives and Democrat Party partisans have to decided to brand the Republicans who dare to oppose the Stimulus Bill as "do nothings," bankrupt of ideas and devoid of plans. In a coordinated and choreographed attack almost every Democrat blog and commentator is repeating this obviously false mantra. It's a lie of gigantic proportions, though not as gigantic as the pseudo-stimulus package about to muscle its way through Congress.

Rejecting a bad, bad bill is hardly the same as rejecting the need to solve a very real problem. Republicans put forth a good many ideas and plans, not one of which was ever considered, let alone included, by a totally partisan Democrat majority who refused to allow a single Republican to assist in crafting the bill.

I hate to see the majority of liberal bloggers resort to a complete and utter lie to force through a poorly crafted spending and tax rebate package that will ultimately do much more harm than good.

Under this whithering attack it will be even more difficult for Republicans to do what is needed, let alone attract thinking Democrats to their cause. Never-the-less this plan must be rejected by Congress and the planners must return to the drawing bard for a fresh and totally bi-partisan approach. It's not likely to happen.

Rick Moran echos my analysis. In his article THE STIMULUS SHOULD GO BACK TO THE DRAWING BOARD, Moran states,

The chances of deep sixing the stimulus monstrosity and starting over again are as near to absolute zero as you can get in politics. The reputations of Speaker Pelosi, Harry Reid, and the president himself are on the line and a defeat of the conference report in the senate (still a possibility after the House tries to restore many of the cuts made by the senate), would be very damaging to that triumvirate, especially the president. But if ever there were a case where the leaders of the Democratic party should swallow their pride and take the hit on their credibility by tearing up this piece of legislation and starting over, this is it. Not much of a chance of that happening what with Obama going on national TV tonight and a cloture vote scheduled in the senate tomorrow. So Obama will probably ratchet up the fear mongering to heights not seen since Democrats ran commercials accusing Republicans of wanting to kill poor children and force old people to eat dog food. It is one thing to tell us the truth about our dire economic straits. It is quite another to try and make people believe that only by passing his $900 billion panic panacea will we avoid “catastrophe.”

The Great Depression

I want to apologize to my readers for the few posts. It is so humbling to actually get comments and emails asking for more frequent postings.

My various business and consulting gigs are all retail related and go into high gear in December. Generally I'm working 18 to 20 hour days and I absolutely love it. If (heaven forbid) retailing gets into your blood, this time of year is the World Series, Super Bowl and Kentucky Derby all rolled into one. Posts will be light until after the holidays.

But....... All you faithful readers already know I've been trying to tell anyone who will listen that we are not in a recession, but are instead heading into a Depression that will dwarf the 1930's. I am appalled that our so called financial leaders in Washington either can't or won't see the coming disaster.

Our current activities in Washington will not help. The proposed auto bailout is a huge mistake. We are plunging the nation into a deep national debt from which we may never recover.

Today's record breaking unemployment report is a harbinger of things to come: Employers cut 533K jobs in Nov., most in 34 years

Make your personal financial decisions based on the coming disaster.

America Burns while McCain Fiddles

Sad to say my time machine is broken. But I would love to travel back in time to the stock market crash of 1929 and listen to the discussions President Herbert Hoover had with his Cabinet and advisers. Do you suppose he was just a clueless as Barack Obama and John McCain are tonight?

I'm betting he didn't realize what the stock market crash meant. He thought it would recover. He didn't see the Great Depression coming.

Neither did a vast majority of the population. But the economic landslide was relentless.

But tonight most Americans are starting to realize they have lost 1/3 of their life's savings and/or their retirement fund. Folks that thought they could retire at 59 or even 65 now realize they may need to work the rest of their lives. Retirement is no longer an option.

People on fixed incomes or living today off their 401K's realize they are moments away from losing their homes or worse.

And they realize that neither Barack Obama nor John McCain will have the money to institute their proposed Medical Programs.

And many people really fear they might be laid off before Christmas. Those fears are well founded.

The current disaster is far worse than the stock market crash of 1929.

John McCain is genuinely clueless. He actually believes this election is about Barak Obama's relationship with distinguished University of Illinois at Chicago Professor (and unrepentant radical terrorist) William Ayers.

Wake the hell up, John. Americans couldn't give a rat's ass about Ayers. In fact Americans would overwhelmingly elect Ayers if they thought he could solve this financial mess.

And America is already scared as hell of Barack Obama. Trust me, we are terrified. And it doesn't have anything to do with Ayers. So give us an alternative. Show some real leadership.

I realize that you must attack Obama. It's part of the campaign mix and negative ads so work. So hit Obama where it will really hurt: Barack Obama's total lack of experience and timid decision making. Obama hasn't ever managed his way out of a Senate cloak room. He generally refused to make decisions. He's inexperienced and weak.

Give America an alternative. But if you continue to ignore the 8 trillion ton gorilla in the room, we are all going to lose.

Could We Have a Mulligan?

I enjoyed a series of conversations during the day that speak volumes about the current and generally unexpected economic meltdown and the terribly poor timing of the 2008 Presidential election. Talk about an October surprise. This is an October Nuclear Explosion.

I hope every one of you, readers and passersby all, will add your thoughts in the comments section.

Here's the question: What if the primaries were held tomorrow, not months ago. Who would you nominate from each party, in light of the economic meltdown?

The consensus in discussions earlier today was that neither Obama nor McCain would get their party's nod. Obama is way to inexperienced. McCain way too weak in the area of the economy.

Many folks feel we really need Republican Mitt Romney at the helm. He is an acknowledged economic genius. And he has solved big, big crisis in the past.

Many folks feel we need Hillary Clinton's experience and that Bill's advice and counsel would be critical in handling what could be a major depression.

What do you all think?

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P.S. I thought tonight's debate was simply terrible. Boring. Tom Brokaw was worse than Gwen Ifill and I thought that would be impossible. The questions were old and tired. The answers were right from the stump speeches. And there was never a follow-up or a demand for clarification.

Did Obama really win? The early polls say he did. I'm not so sure Obama won. I'm positive McCain lost.

But before you pull that lever on November 4th remember one thing: Barack Obama has never made one single tough decision in his entire life. Not one. Not ever.

He makes a good speech. But he tends to vote present or miss the vote or dodge the issue as he did last week during the bailout debate. Give it some thought.

A Failure of Leadership

Warren Buffett has called the current crisis an "Economic Pearl Harbor." But can you imagine what December 7, 1940 might have been like if we hadn't had the inspirational leadership of President Franklin Delano Roosevelt?

If today's crisis is the economic equivalent of Pearl Harbor, what is missing the leadership to rally and galvanize the American Public into action. As the American ship of state sinks into an economic cesspool, no captain has emerged to organize the crew to begin bailing out the water and turning the ship's weapons toward the fight.

Missing in action is President Bush. The worst kind of lame duck, Captain Bush was late to spot the economic mine fields and slow to steer the ship past the danger. It goes without saying that Bush is no Roosevelt.

But the two would-be Captains were even worse. Both abandoned ship and instead worked to organize the crew into competing water polo teams. Suddenly the object was not to save the ship, but to "win the game."

Obama's phone-it-in failure is especially bad. Not that the press or public is paying any critical attention to Obama, but he is doing what he always does, he is "voting present." Even in the heat of the House vote yesterday, Obama never ever endorsed the plan. In fact he has never admitted any support or opposition for the plan. He is completely invisible.

Obama's pathetic performance over the last week may well win him the election. but it should actually disqualify him from the office. The pubic and the press will long regret giving Obama a free pass in this election. You cannot vote "present" during the biggest economic crisis of our time.

On the other hand, McCain flopped and floundered like a wounded fish. At first he attempted to take on the role of leader. He flew to Washington and assume the role of Captain. Except he, too, refused to actually take a position on the bailout. His failed attempt at action came off as political grandstanding.

America really wanted a leader. McCain should have opposed the bailout. I believe that was his natural inclination. But he didn't. Yet he failed to actually rally enough house support to get the compromise bill passed.

The debate last Friday night was revealing. Moderator Jim Leher allowed Obama to skate completely by the issue with making any kind of commitment, but then pressed McCain repeatedly and forced him to commit his very weak and tentative support.

It was a test of leadership. Obama cut class and never took the test. He, instead went to the mall. McCain took the test, but failed.

It would be really remiss of me not to point out the biggest failure of leadership was the "worst Speaker of the House in American history." Pathetic. Once again Speaker Nancy Pelosi could have easily and simply engineered a landslide victory for the bill in the House. But, as I have often pointed out, Pelosi doesn't care about America or the people, she only cares about cheer leading the water polo game.

While some Republicans falsely blamed Pelosi's incredibly tone deaf speech on the House floor for "poisoning the vote" her real failure was in poisoning the entire process. She constantly marginalized Republicans and typically refused any effort at bipartisanship.

She falsely claimed to support the bailout, but never organized the Democrats or attempted to whip the vote. Virtually every Democrat Party leader in the House except Pelosi and Barney Frank voted against the bailout. And she demonized Republicans every second of the day. She demanded bipartisanship from Republicans but practiced none.

Any other Speaker of the House in our nation's history (and I mean any) could have easily passed the bill. Only Pelosi failed. She must be removed from her role in the House.

Rising to the Challenge: Fox Business News

Sunday night, September 28, 2008, 11:00 pm - As we sat in the eye storm during the worst financial crisis in modern history, the cable and broadcast news networks went to sleep, lulled by the lilting lullabies of reruns, repeats and a band headlined by a former governor.

If you wanted news, if you wanted analysis, if you wanted updates on a marathon Republican House of Representative's meeting, you were simply out of luck.

Unless you were one of the very lucky few who have access to the new FOX BUSINESS NEWS CHANNEL. Fortunately, I subscribe to satellite provider Direct TV and I receive Fox Business on channel 359.

While CNN and FOX NEWS were rerunning earlier programs, MSNBC, who seem to have totally abdicated the news business entirely, ran old, old, old NBC Dateline programs. Even the news crawls were seemingly outdated and sparse on facts.

At the critical moment that House Republicans emerged from their 3 hour meeting, the regular FOX NEWS channel was caught flatfooted rerunning last night's folksy Mike Huckabee debut, complete with Huckabee himself leading a really terrible band made up of FOX NEWS staffers. It was embarrassing.

Curiously, even business leader CNBC missed the oportunity to cover the biggest business story since cable news broadcasts began.

But right next door at FOX BUSINESS NEWS it was all live and incredibly professional and informative. Only FOX BUSINESS ran the Republican House News Conference. Only FOX BUSINESS had live interviews with House members, Wall Street leaders and business leaders, economists and government leaders around the world.

Anchored coolly and professionally by David Asman and Cheryl Casone, there was no hyperbole and no spin. And, after the House Republican leaders issued there tentative support for the compromise bill, the FOX BUSINESS team tracked the reaction from markets around the world. Gold is down and most markets and futures are up as I write this report.

FOX BUSINESS has a new fan here. I know where to tune for business news.

John McCain, You Missed It by Thaaaaat Much

No sooner than the virtual ink had dried on my cyber essay this morning, than John McCain proved my point exactly. He simply cannot or will not focus on the issue that is the most important issue in this election.

Hello John? Anybody home?

It's the energy inflated economy stupid!!

Now I need to digress for just a moment to give John McCain the credit he so rightfully deserves. He showed courage and grace today in addressing the NAACP convention. By all accounts he acquitted himself very well. He was gracious, warm and genuine, even while knowing he is unlikely to pick up a single vote from the group's members.

But Ken Blackwell, the African American Republican, pointed out in the elephant in the room, if you'll pardon the pun. McCain failed to address the number one, most important topic on the minds of every American, including every African American. Raging gasoline prices are destroying everything lower income Americans have been working to achieve. People cannot drive to work. They cannot afford groceries or clothing. This a real and personal crisis.

You can listen to Blackwell's obvious advice to McCain on NPR: Black Republican Has Message For McCain If only McCain will tune in and listen.

But John, if you and your handlers and advisers are way to busy to listen to one of the few black Republicans, why not just read today's New York Times: More Poll Findings: The Economy Trumps the War, by Far

And here's the worst part of this political disaster. McCain has a genuine advantage. Barack Obama is an empty suit when it comes to the energy crisis. The man's got nothing. No plan and few ideas. He is clueless and vulnerable. Energy is his Achilles heel. At least it is today.

But Barack is smart. He will read the New York Times. And his advisers are listening to NPR. And while McCain will call his new plan a "flip-flop on energy," he'll regain the advantage.

When and if Barack Obama finally realizes that vague (and 15 billion dollars worth of stupid) corporate welfare plans for imaginary alternative energy ideas will not solve this crisis, he'll create a new plan and earn every one's respect.

America must be 100% energy independent by 2016. McCain has the plan, but no voice or message. Obama could inspire a nation, but he has no plan.

Will somebody please wake up and smell the gasoline.

Looking for a Financial Wizard

I've been blogging for some time about the real issue in the fall campaign, THE ECONOMIC IMPACT OF OIL and the looming world wide crisis that could easily devolve into a world wide depression.

Both John McCain and Barack Obama have been terribly slow to pick up on this crisis. The winner this fall will be the candidate who first identifies with this issue and proposes the most intelligent, fast acting and complete economic plan, concentrating on the absolute need for energy independence.

So I was especially pleased to read Thomas Friedman's excellent op-ed piece in yesterday's New York Times, Anxious in America.

Come August, though, I predict both men will be looking for a financial wizard as their running mates to help them steer America out of what could become a serious economic tailspin. I do not believe nation-building in Iraq is going to be the issue come November — whether things get better there or worse. If they get better, we’ll ignore Iraq more; if they get worse, the next president will be under pressure to get out quicker. I think nation-building in America is going to be the issue. It’s the state of America now that is the most gripping source of anxiety for Americans, not Al Qaeda or Iraq. Anyone who thinks they are going to win this election playing the Iraq or the terrorism card — one way or another — is, in my view, seriously deluded. Things have changed. Up to now, the economic crisis we’ve been in has been largely a credit crisis in the capital markets, while consumer spending has kept reasonably steady, as have manufacturing and exports. But with banks still reluctant to lend even to healthy businesses, fuel and food prices soaring and home prices declining, this is starting to affect consumers, shrinking their wallets and crimping spending. Unemployment is already creeping up and manufacturing creeping down.

At this point John McCain is substantially ahead in proposing the clearest and fastest energy independence plan. I urge you to read McCain's Lexington Project. It will be tough to implement, but we must begin now. This cannot wait.

Barack Obama is a little like a deer caught in the headlights. Obama's really poor and ill conceived attack on McCain's (belated) oil drilling strategy, i.e. "It will be at least 5 years until we seen any significant oil" sounds especially hollow when all Obama has proposed is an alternative energy strategy that produces only minor results after 25 years.

I've written extensively about the expanding impact of the oil crisis on all parts of society. This problem is really severe. Thomas Friedman is so very right and the candidates need to wake up. The future of our economy dwarfs all the other issues.

The Poor Suffer Most from Continuing Oil Crisis

I'm now very hesitant to call the current economic crisis in the United States and the world just an "oil crisis." The skyrocketing cost of oil may well be the engine that is propelling the economy toward the abyss, but virtually every person around the world in on board and strapped in for the ride.

I have been writing about the oil crisis and especially the virtually complete lack of action by Congress to begin to solve this problem. Now Congress has recessed for the "holiday" without taking any action beyond holding what may be the stupidest hearings I've ever witnessed.

Trust me when I tell you it will be a cold day in hell when Congress members actually take any action against their largest benefactors. Of course, a cold day in hell is exactly where we are headed.

I am working on a comparison of the Obama and McCain strategies for handling the oil crisis. But you already know my position: Let's implement BOTH sets of strategies and work for genuine energy independence in our lifetime.

What Congress has so far refused to acknowledge is the great extent the current crisis has spread beyond the pump. Sure we see that $4.09 price per gallon on the pump, but we are so far ignoring the massive increases in collateral costs.


Sadly, some of our nations most important charitable organizations cannot ignore their real cost increases. One that is simply being devastated is Meals on Wheels. Talk about getting hit from every direction!

First the number of people who volunteer to deliver the meals is dropping at an alarming rate. Estimates indicate a drop as high as 38%. Volunteers must pay their own gasoline costs and it is often fellow seniors on a fixed income who deliver the meals. They simply can no longer afford to volunteer.

Second food costs are skyrocketing. Meals on Wheels admits it is being forced to dramatically reduce the use of fresh foods, fruits and vegetables and substitute frozen meals. Part of the problem is the reduced deliveries outlined in the first point above.... fewer deliveries and fewer volunteers mean seniors cannot get daily meals.

Third, obviously, is that donations are greatly reduced. This is affecting virtually all charities. People are spending their money on food and fuel. They do not have the disposable income to donate to any charity. The New York City Meals on Wheels is facing a $3 Million Dollar shortfall this year. Smaller towns and cities are even harder hit.

How about this 4th if July we all cancel our road trips and create some real fireworks by contacting our Senators and Representatives (who are no doubt home for the holiday) and demanding real bipartisan action to begin to take the steps needed to permanently solve this problem.

And take the money you would spend on gasoline and donate it to your local Meals on Wheels.

Democrats Don't Believe in the Future

I've just had a breakthrough revelation. Democrats don't believe in the future!

Now I'm not saying that Democrats aren't the party of hope. No, what I'm saying is far more specific and fundamental. I'm saying that the Democrats don't actually believe the future exists. To the Democrats, the future is some sort of science fiction.

The year 2017? Nope, that one doesn't exist. Or 2030? Ha Ha, tell us another joke. 2053? Well that's certainly never going to happen.

It's just like the folks who used to deny the world was round. Or people who refused to believe that the earth revolved around the sun. These concepts were simply too absurd to even consider.

To the Democrats, the future need not be planed for, because it simply doesn't exist.

Barack Obama was just the latest Democrat to leap onto the future doesn't exist platform this week. Faced with the greatest world wide crisis in the last 100 years, the growing Energy and Food Price Crisis, Obama made it perfectly clear that his plan was to do absolutely nothing except to demagogue the issue, ridicule anyone who made any proposal to resolve the crisis and to absolutely refuse to acknowledge any plan that involved the science fiction concept of the future.

Speaking in Florida and then at the governor's conference Obama practiced the now perfected Democrat technique of proposing nothing and opposing everything.

Obama has already learned that only politicians who actually are brave enough to make a proposal ever get criticized. And he watched John McCain make the classic Republican error of actually making a series of concrete proposals that might solve the energy and food crisis or lessen it's impact on the American people.

Obama leapt to the attack, careful to never propose anything himself. The closest Obama came to actually saying anything was to pontificate that IF he actually thought something might work (and he most certainly didn't think anything would work) then he might study it.

For example, faced with John McCain's actual proposal to build nuclear power plants, Obama said he might study it, but "I don't think that nuclear power is a panacea."

Don't ever actually propose anything. It's a winning strategy. An the press cannot ever question anything you don't actually say. Propose nothing and you're home free.

Well, here is another exact quote: "I would consider off shore drilling if there were any evidence it would reduce prices. But it won't and John McCain knows that."

Actually John McCain doesn't know that, but that little white lie is the least of Obama's problems.

The really big problem is what Obama does know (in his own words) but refuses to acknowledge. That would be that pesky concept of the future. Here's the money quote: "Offshore drilling would not lower gas prices today; it would not lower prices tomorrow; it would not lower gas prices this year; it would not lower gas prices five years from now. In fact, President Bush's own Energy Department says we would not see a drop of [offshore] oil until 2017."

Please explain to me why we wouldn't start working today toward energy independence in 2017 (or even later)? That also would give us time to develop improved energy conservation methods and alternatives to oil and natural gas.

Sadly, we've been hearing this "ignore the future" mantra from Democrats for the last eight years. They have effectively stopped all oil exploration, all new offshore drilling, all development of the ANWR (Arctic National Wildlife Refuge) resource using the denial of any existence of the future excuse. "We just can't do that because it won't help until sometime in the future."

Haven't Democrats ever heard the saying that "every journey starts with a single step?" We can only presume that Barack Obama doesn't believe in the year 2017. Or, at the very least, he realizes he will be out of office by then and it will be somebody else's problem.

This is the exact approach the Democrats took in 2005 with Social Security. As President Bush foolishly made a series of proposals to actually save Social Security, Democrats steadfastly held together and REFUSED to make any proposals of their own. As George Bush went on television and literally BEGGED the Democrats to come to the table and join in a truly bipartisan effort to save the system before it's failure in 2053, Democrats made it clear that they would make absolutely no counter proposals. See articles here and here.

You see, to the Democrats 2053 doesn't exist, so no action is necessary.

Democrats simply denied the existence of the year 2053.

I, for one, am looking for change I can believe in. And that change would be our two political parties to actually come together and solve the issues we face today, even if the solutions require years to achieve.

2017 is just around the corner, whether Barack Obama believes it or not.

Things are Proceeding Exactly As I Predicted

"So, as fast as you can, think of something to do. We have to get rid of Thing One and Thing Two..."

Dr. Seuss, The Cat in The Hat

Just keep reminding yourself - America could easily be oil and energy independent today. We could supply 100% of our own energy needs. We could actually be in control of our own fate. One two little Things stand in our way - The Republican and the Democrat Party.

Sadly, the last twenty four hours have gone exactly as I predicted in my column yesterday. In fact, you would think I was writing a script and the country's leaders were Hollywood actors, really, really bad actors.

President Bush gave a good speech outlining the immediate steps needed to begin to increase nation's own supply of oil and natural gas. The President's proposals were spot on and every single proposed step should be implemented by Congress without exception and without delay. Each proposed action was logical and intelligent.

Unfortunately, the President was partisan in his delivery, never missing a chance to blame the Democrats for our energy woes. While, sadly I must admit as an aside that President Bush was correct, I wish he had omitted the histrionics and instead held out an olive branch and a pledge of cooperation to the Democrats.

The Democrat response was completely predictable and, unfortunately, bordered on a level of stupidity seldom seen in modern man. The demagoguery, insults, flights of fantasy and hyperbole were simply awesome to behold.

But the bottom line was exactly as predicted, the Democrats promised, vowed and swore that they would do absolutely nothing what-so-ever to increase energy supplies or reduce demand. They would not take even a single step toward energy independence.

But the Democrats did promise they would find somebody to blame. Big oil companies were a likely target. They might investigate Wall Street, I guess because they hope to find hidden supplies of oil there. Oh, and they promised to make it a "campaign issue."

And they did promise to repeal the laws of supply and demand. And, even if they did allow more exploration and drilling, they guaranteed it wouldn't affect oil prices for at least five years. Unfortunately, most of us remember that they told us that five years ago. Planning ahead is just something the Democrats don't do. I guess if they did it might eliminate the sacred "campaign issue."

I know the Democrats have a raft of good ideas, too. We must increase the mileage standards on automobiles. And we must fund research and development of alternative energy resources. Certainly we must protect the environment and prevent windfall profiteering.

All day yesterday and today I have been waiting for a single lone Democrat or Republican to wake up and say, "The American People are hurting. The economy is in serious trouble and we are facing a personal and an economic disaster. Let us end the attacks and stop the blame game, combine our best ideas, compromise and solve this problem."

I could end up waiting forever.

Paul Richter wrote a really excellent and even handed article just a few hours ago in the LA Times. "Runaway oil prices have set off a furious new blame game in which political leaders and key economic players are scrambling to deflect responsibility for the deepening crisis."

"With outraged consumers protesting in the streets of many countries, oil producers are blaming speculators, speculators are blaming consumers and politicians are blaming one another. Consequences could entail not just a tarnished image but real damage to economic interests and political fortunes."

Follow the link above and read every word of Richter's article.

At our regular breakfast this morning I sat with our usual group of laborers, lawyers, bankers and small businessmen and women. The restaurant owner, a good friend, was reworking her menu prices because her food costs have nearly tripled in the last few weeks. Raw cost and undoubtedly increased, but the transportation costs are really driving up prices. This is the hidden danger of inaction by the gridlocked U.S. Congress.

Call Thing One and Thing Two in Congress today and tell them a thing or two. Let them know they simply must compromise and show some real leadership in bringing the USA toward energy self sufficiency. This is not a "campaign issue." It's a real problem and we need and deserve real leadership.