Paul Ryan, Washington DC's Lone Adult

Over on the Democratic Party side of Washington, DC there was rejoicing in a new PPP Poll that showed when the public was made aware of Presidential Candidate Mitt Romney's arguable mistreatment of his dog Seamus, over 28 years ago, Romney's approval rating tanked.


Seriously, my Liberal and Progressive friends on Tiwtter are simply giddy with excitement.  Leave it to Mitt Romney's dog to sniff out a path to Obama's victory.


Our future is now safe.


Meanwhile, on planet Earth, Representative Paul Ryan has prepared and proposed the most realistic, bold and brilliant budget in the last 20 years.  To do what Ryan has done takes thought, analysis, honesty and courage.  And no polling.


Ryan will be savaged by Democrats who deserve no place in government, cowards and liars, manipulators and pollsters who will not only allow our country to fail, but will ride Seamuss into the very gates of hell.


One does not need to agree with Ryan's every idea, but he should be held in high regard for discussing the real issues of our economy and our exploding debt.


Democrats have failed to produce a budget for three years and they've already signaled that will fail to do so again.  It's so much easier to criticize than to propose ideas and stand behind them. And that's the Democrat plan.


Here are just a few lines from the Washington Post Story linked here and above: 


House Republicans laid down a bold but risky election-year marker Tuesday, unveiling a budget proposal that aims to tame the national debt by reshaping Medicare and cutting deeply into Medicaid, food stamps and other programs for the poor, while reshuffling the tax code to sharply lower rates.


Congressional Republicans plan to use the document to demonstrate their willingness to tackle the nation’s difficult fiscal problems head-on. They argue that restraining future borrowing is a moral imperative and that entitlement programs for the elderly and the poor must be redrawn both to reduce red ink and to ensure that federal benefits continue to be available. 


The proposal, authored by Budget Chairman Rep. Paul Ryan (R-Wis.), calls for spending cuts and tax changes that would put the nation on course to wipe out deficits and balance the budget by 2040. The national debt would continue to rise but would shrink to the historic norm as a percentage of an expanding economy.

Nightmare on Main Street

If you toggle between CNBC and the Fox Business News Channel you quickly learn that business, investors and economists all really despise the Health Care Reform Bill, enacted six months ago today.

If you read virtually any of the polls you already know the public really hates the same health care reform, generally called ObamaCare. I believe that this single bill is the primary cause of the growth of the Tea Party movement and the unexpected Republican resurgence.

It is possible that Republicans will take control of the House, although I fear that is unlikely. But it is a moot point regardless, as without either controlling the Presidency or having a filibuster proof majority in the Senate (60 whopping votes), overturning the bill is virtually impossible.

It sure as hell needs to happen as the bill is quickly becoming the Freddie Kruger of legislation and it haunts our every dream, turning any hope of an economic recovery into a nightmare of recession and possibly depression.

Here, thanks to the editorial page writers of the Washington Examiner are a few bullet points of the current and impending disaster:

» Obamacare won't decrease health care costs for the government. According to Medicare's actuary, it will increase costs. The same is likely to happen for privately funded health care.

» Obamacare won't allow employees or most small businesses to keep the coverage they have and like. By Obama's estimates, as many as 69 percent of employees, 80 percent of small businesses, and 64 percent of large businesses will be forced to change coverage, probably to more expensive plans.

» Obamacare will increase insurance premiums -- in some places, it already has. Insurers, suddenly forced to cover clients' children until age 26, have little choice but to raise premiums, and they attribute to Obamacare's mandates a 1 to 9 percent increase. Obama's only method of preventing massive rate increases so far has been to threaten insurers.

» Obamacare will force seasonal employers -- especially the ski and amusement park industries -- to pay huge fines, cut hours, or lay off employees.

» Obamacare forces states to guarantee not only payment but also treatment for indigent Medicaid patients. With many doctors now refusing to take Medicaid (because they lose money doing so), cash-strapped states could be sued and ordered to increase reimbursement rates beyond their means.

» Obamacare imposes a huge nonmedical tax compliance burden on small business. It will require them to mail IRS 1099 tax forms to every vendor from whom they make purchases of more than $600 in a year, with duplicate forms going to the Internal Revenue Service. Like so much else in the 2,500-page bill, our senators and representatives were apparently unaware of this when they passed the measure.

» Obamacare allows the IRS to confiscate part or all of your tax refund if you do not purchase a qualified insurance plan. The bill funds 16,000 new IRS agents to make sure Americans stay in line.

Read more at the Washington Examiner: Examiner Editorial: Obamacare is even worse than critics thought

Out of Touch, Out of Control

This is a really short blog entry to simply suggest you read the insightful article in this week's TIME MAGAZINE by Tim Padgett: Florida Exodus: Rising Taxes Drive Out Residents.

This is a real case study in what happens when government officials forget they are public servants, instead acting like they are royalty. And, on a state level, this is a tragic example of exactly what is happening in Washington. Politicians completely out of touch with citizens.

Both Padgett's thesis and his examples are compelling.

"Homeowners, especially in Broward and Miami-Dade, have been falling out of their flip-flops in recent days as they open their preliminary property-tax notices to find increases of 15% or more. That's sizable in a low-income region where the median property-tax bill is already some $3,000, and it's doubly frustrating given that property values have slid by some 25% during Florida's housing bust."

"Residents have barely digested the recent news that their hurricane-insurance premiums, which can top $5,000 a year for most South Florida homes, will rise 10% a year for the next three years (vital, officials claim, for handling claims from the next big storm)."

"And their public utility, Florida Power & Light (FPL), is lobbying the state for a 30% rate hike."

" 'It all seems out of control to people here at the time when they can least absorb it,' says Dr. Jose Valladares, president of the conservative Fair Property Tax for All in Miami-Dade."

This is all eerily similar to the event that have devastated Detroit and left it a mere shadow of its former greatness. Will the same scenario destroy Miami?

More importantly, will our officials in Washington, including President Obama, realize they are doing the exact same things to all Americans?

It's The Economy, Stupid

I'm going to quote, well, paraphrase actually, a guest I heard on talk radio this morning. I have absolutely no idea who it was; I don't have a name. I was only in my car for five minutes. But is was a fascinating analysis that I thought was insightful and completely correct.

This unknown guest said that President Obama's problems with his Health Care Plan wasn't really caused by the health care proposal. Instead it was caused by the rapidly declining economy and the President's huge over promise when he pushed through Nancy Pelosi's stimulus bill.

President Obama put the maximum pressure on Congress to pass the bill quickly, so quickly that no one actually read the bill. He warned of dire consequences if the bill waited even a day. And he made grandiose predictions of a quick recovery and limited unemployment. Numerous speeches were made and numerous promises were laid out before the American People, including how Joe Biden was going to personally watchdog the spending to make sure it happened quickly and there would be no waste.

Among the many people who never read the bill was President Obama himself.

In effect, Congress and the American People went out on an $800,000,000,000.00 (eight hundred BILLION dollars) limb for the President and he has failed utterly and completely.

In spite of some reporting so stupid it literally defies belief, the economy is not recovering. It is in shambles. Unemployment is skyrocketing. And the stimulus is not working....... at all.

Now, many of us knew the grab bag of political greed, waste, paybacks and payoffs that Nancy Pelosi called a "Stimulus Package" was doomed to failure from the beginning. But we hoped for the best.

But today, faced with misuse of funds, government lies of epic proportions, waste, fraud and inefficiencies, Obama's credibility is shot. The people no longer believe him. Never has a President spent his political capital so quickly.

The unknown talk radio guest stated that the real problem in Congress wasn't Health Care, it was the economy. If the economy had responded as Obama had so boldly promised, passing Health Care would be a breeze and every other proposal would be a breeze.

But now it's the President himself who is facing hurricane force winds of change. And it's his agenda that needs a stimulus.

----------
The following information was helpful to me in the preparation of today's essay:

Associated Press: 'Help Wanted' counting stimulus jobs

Lee's Tidbits: Oregon Stimulus jobs created? 3,236 in first three months

Gallup Daily Tracking Poll: Obama Hits New Low

Rasmussen Poll: 49% of Americans Say America's Best Days Have Come and Gone. Obama's Approval Falls to Only 48%

Associated Press: May-June joblessness up in 90 pct of metro areas

Fox News: Stimulus Dollars Fund Erotic Film, Stage Show Yes, I know it's Fox News. And yes, I know it's a very tiny part of the stimulus funds, but this is exactly the kind of thing that just kills Obama's credibility. You would think that the Federal Government would have learned that lesson long before this. This was a bone headed, stupid mistake.

It's The End of the World as We Know It

Well, faithful readers, it is time for the very lengthy third part of my trilogy. Parts one and two below were necessary to provide context for this third and most important discussion. Below is my analysis of the current economic crisis in the United States and, ultimately, the world. As my title above suggests, it is not a pleasant prognostication.

Long time readers know that I have been sounding the alarm siren for the last six months. As soon as it became obvious that our Congress and President were on the wrong track in handling the economic downturn, I've done my best to bring the keys issues to the forefront. This link here will take you to a dozen or more past blog entries where I've outlined the coming problems and condemned in no uncertain terms the horrific Economic Stimulus Package.

Sadly, a quick review of comments from many readers proved two tragic facts. First, most people simply want to "play politics" and never, under any circumstances, read legislation or consider alternative solutions. If our fellow Democrats did it, it must be good. If Republicans proposed it, it's stupid, lame, old school and wrong.

Second, all too many people are just here for the free lunch. As long as some other "rich guys" pay the bills and they believe they'll eat for free, then they'll line up at the trough. Every day is a holiday and every meal is a banquet.

So just how bad is it? It's very, very bad. And you're going to feel the pain as early as tomorrow.

Borrow and Spend Democrats

I am a rather proud "tax and spend" Democrat. There are many things I genuinely believe the government can do better than the private sector and many others that the government must do because the majority of people simply will not do them. The beauty of being a "tax and spend" Democrat is there was a natural barrier that prevented us from going overboard: TAXES. If taxes got too high, the electorate would reign us in. And, as long as we worked with a nearly balanced budget, this system was nearly prefect.

Plus, by answering to the actual tax payers, we were forced to be honest, efficient and logical. We were forced to prioritize.

Today, under the vacuum of leadership from Nancy Pelosi and Harry Reid and the naivete of President Obama, none of that is happening. Instead of tax and spend, the new priority is borrow and spend without restraint. There are literally no priorities. There is no restraint. Pork barrel spending abounds, in fact it has become the coin of the realm. Payoffs are common place, corruption is rampant and institutionalized.

Barack Obama was and is totally unprepared for his job as President. He is no more than the band leader on the Titanic. The ship is sinking and it will take him down.

Where We Stand

About 500,000 new people apply for unemployment each week. Over 9 million new unemployed have been added to the dole since the pathetic non-Stimulus Bill passed. Unemployment has reached a 30 year high at 9.5% and virtually every economist predicts is will be over 10% by August.

Because the non-Stimulus Bill was nothing more that a massive pork barrel spending give-away three horrible things have happened. First, only about 7% of the money has actually been spent. Only 11% will be spent by year's end. Did Barack Obama lie? No, I don't think so. He simply had no idea what Nancy Pelosi and Harry Reid were doing. Again, Barack Obama was (and still is) woefully unprepared to play at this level.

Second, the stimulus money turns out to be primarily rewards for contributors and patrons. I know this comes as a total surprise to everyone, but the vast majority of the money seems to be headed to states that supported and voted for Democrats! WOW! Who knew?

Third, and perhaps most tragic, the paltry sums of money that are flowing out as being pirated away for bankrupt states and used to pay bills or lower debt, not for any stimulus at all. The report issued today by the General Accounting Office paints a tragic picture of misuse of funds.

But the surprises hardly end there. It turns out there actually were (and are) shovel ready projects needing funding and ready to hire people. Are they getting the money? Nope. Not according to an analysis by The New York Times.

In short, not one single job has been created and only a handful of jobs have been saved. This could have all been avoided. A stimulus package costing 1/3rd less was proposed and on the table from Republicans. Every single penny would have been spent to hire people for permanent, full time, high paying jobs. But, of course, none of it would have gone to pay off contributors. None would have been wasted. And it would be working hard today, not on hold until 2010 and 2011.

Where Are We Headed?

By borrowing insane amounts of money and not taxing anyone for anything yet, Democrats have appealed successfully to both the party partisans and the pigs down at the trough. But that's all about to end.

Interest rates are about to skyrocket. I know of no economist who predicts less than a doubling of interest rates in the next few months. While that assures there will be absolutely no recovery in the economy, it is actually much worse. As interest rates eclipse 7% the government will be totally unable to service the huge deficits. One hundred million dollars a day in interest!

Because of the inevitable collapse of the US economy, tax increases will move from counterproductive to impossible. My essay back on March 7th was tragically accurate, we are on the same economic policy path that led to The French Revolution. Let them eat cake!

President Obama's current drive for universal health care, a laudable goal, is moot. No matter what bill passes, the program will collapse, along with Social Security and the current Medicare/Medicaid in the next few years. We cannot borrow ourselves out of debt. We cannot service the debt. We cannot tax our way out of debt. Like a chess player who has been out maneuvered, we have no moves remaining. Checkmate.

Is there a way out? Like the immortal line from the movie War Games, the only way to win is not to play. Because of the non-Stimulus Bill and the pork filled Budget recently passed, it may already be too late. Inflation is coming. And the deficit is unsustainable. And Democrats are sadly still playing politics.

The public is about to explode. They are already feeling the pain. Even after siphoning off stimulus money, states are making critical cuts in goods and services. California, Illinois and New York are about to undertake massive layoffs that will further balloon stressed out welfare rolls. California is issuing virtually worthless IOU's to taxpayers and creditors as their bonds are being lowered to near junk status. Illinois is about to release 10,000 prisoners because they simply cannot pay the guards.

You are about to feel serious pain and it's just the beginning. We are entering The Greatest Depression.

It is likely Obama will end his single term as a badly failed President in spite of his many great talents. While Republicans are unprepared to regain control of both houses next election, they will make serious gains. And real, thinking Democrats will quickly break with Pelosi and Reid and Obama, if necessary, to demand repeal of most spending plans and reduced borrowing.

I'm not at all certain that is will be anywhere enough.

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.

Barack Obama's Small Business Initiative

I've been rather tough on Barack Obama's economic plans and programs and with good cause. Obama allowed Nancy Pelosi oversee the creation of Frankenstein's Stimulus Monster, an unworkable combination of hands and feet and legs and ears that can only slither off to die the death it so richly deserves. It's just a damned shame we had to pay eight hundred billion dollars for this monster.

But today Barack Obama announced an excellent group of programs and policies that stand a good chance of building a solid base for future economic growth. Obama's Small Business Initiatives will help provide much needed credit for small businesses and provide change the tax laws to help businesses survive the recession/depression. It's no substitute for the stimulus package we still need, but it will save a significant number of jobs and might actually create a few new ones.

WASHINGTON – President Barack Obama freed billions of dollars to help the nation's small businesses on Monday, hoping to get credit flowing again to Main Street, not just Wall Street. He heaped praise on the little guys of American industry, often overshadowed in the blitz of government bailouts. The centerpiece of Obama's latest plan will allow the government to spend up to $15 billion to buy the small-business loans that are now choking community banks and lenders. That, in turn, could allow those banks to start lending money again to small companies to invest, pay bills and stay afloat. "You deserve a chance. America needs you to have a chance," Obama said in an appeal to all those who run small businesses or hope to one day. Obama's effort was, at one level, fundamental to helping the economy rebound. Small businesses have created about 70 percent of the new jobs over the past decade, and as their credit lines have dried up, so has their ability to thrive or survive.

Barack Obama has really had a tough start to his presidency. Fortunately the press either hasn't noticed many of the real problems and issues or has purposely chosen to ignore them. And you've got to give credit to the highly coordinated Democrat Demolition Squad that has kept at least the Obama supporters clearly focused on nonsensical non-issues like Rush Limbaugh, James Cramer and Glenn Beck. What a joke. Any Democrat or liberal who has fallen for this misdirection ploy should be thoroughly ashamed of themselves.

But Barack Obama is genuinely a very smart guy. He is a quick study and he hasn't been "misdirected." While Carvell and company kept the adoring masses entertained, Obama has worked to strengthen his economic proposals and programs. His economic team is still woefully understaffed and Secretary Geithner is still in deep trouble, but each day shows signs of improvement.

Communist China Knows Tax Cuts Work

If the Communist Chinese know that TAX BREAKS will INSTANTLY stimulate their economy, why can't President Obama figure it out?

HINT: The Chinese didn't have Nancy Pelosi write their stimulus bill.

From BLOOMBERG: China February Auto Sales Rise 25% After Tax Cuts

March 10 (Bloomberg) -- China vehicle sales surged 25 percent in February, the first gain in four months, after the government cut taxes on some models, helping the country extend its lead as the world’s largest auto market this year. Sales of passenger cars, buses and trucks climbed to 827,600, the China Association of Automobile Manufacturers said today in Beijing. The tally in the first two months rose 2.7 percent to 1.56 million, compared with a 39 percent decline to 1.35 million in the U.S. China has halved retail taxes on small cars and drawn up plans to give out vehicle subsidies in rural areas to revive demand after auto sales rose at the slowest pace in a decade last year. Combined with the country’s wider 4 trillion yuan ($585 billion) economic stimulus package, the policies have caused General Motors Corp. to roughly double its forecast for China’s nationwide auto market growth this year. “Consumers are regaining confidence because of the government’s stimulus policies,” said Ricon Xia, an analyst at Daiwa Research Institute in Shanghai.

A Ray of Sunshine in a Storm of Spending

There is a glimmer of hope this morning that good judgement and financial responsibility will gain strength among Democrats who effectively control the government.

I've been saying for some time it must be the Democrats who reign in Barack Obama who is showing all the restraint and maturity of a college freshman turned loose with daddy's credit card on a distant campus.

As it turns out a good number of Democrats have become quite alarmed at Obama's largess and are ready to cancel the credit card. POLITCO reports this morning: Moderates uneasy with Obama plan

Moderate and conservative Democrats in the Senate are starting to choke over the massive spending and tax increases in President Barack Obama’s budget plans and have begun plotting to increase their influence over the agenda of a president who is turning out to be much more liberal than they are. A group of 14 Senate Democrats and one independent huddled behind closed doors on Tuesday, discussing how centrists in that chamber can assert more leverage on the major policy debates that will dominate this Congress. Afterward, some in attendance made plain that they are getting jitters over the cost and expansive reach of Obama’s $3.6 trillion budget proposal. Asked when he’d reach his breaking point, Nebraska Sen. Ben Nelson, one of the most conservative Democrats in the Senate, said: “Right now. I’m concerned about the amount that’s being offered in [Obama’s] budget.” Another attendee, Sen. Mary L. Landrieu (D-La.), said she expected the newly formed caucus to shape Obama’s budget proposal as it moves through Congress. Sen. Evan Bayh, the Indiana Democrat who assembled Tuesday’s skull session, added that he was “very concerned” about Washington’s level of spending, especially in a $410 billion “omnibus” spending bill to fund the government until the start of a new fiscal year in October. As for the tax increases on high-income earners called for in Obama’s plan, Bayh said, “I do think that before we raise revenue, we first should look to see if there are ways we can cut back on spending.” “The American people and businesses are tightening their belts,” Bayh added. “I think we need to show that the government can economize as well.” If the moderate Democrats in the Senate are willing to work with moderate Republicans — as Bayh said they are eager to do — they will negate the White House’s ability to portray opposition to Obama’s spending as partisan obstructionism.

This is genuine bipartisanship at work. A welcome development.

Dim Sum

I'm afraid these three little dumplings I'm serving for a luncheon snack just might make you throw up........

The world is trying so very hard to awaken our partisan political leaders from their slumber. These aren't Republicans slamming the new President. These are real experts trying hard to get through the wall partisan rhetoric. Please turn off the politics long enough to listen.

1. The Wall Street Journal: The Obama Economy - "Americans have welcomed the Obama era in the same spirit of hope the President campaigned on. But after five weeks in office, it's become clear that Mr. Obama's policies are slowing, if not stopping, what would otherwise be the normal process of economic recovery. From punishing business to squandering scarce national public resources, Team Obama is creating more uncertainty and less confidence -- and thus a longer period of recession or subpar growth."

"What is new is the unveiling of Mr. Obama's agenda and his approach to governance. Every new President has a finite stock of capital -- financial and political -- to deploy, and amid recession Mr. Obama has more than most. But one negative revelation has been the way he has chosen to spend his scarce resources on income transfers rather than growth promotion. Most of his "stimulus" spending was devoted to social programs, rather than public works, and nearly all of the tax cuts were devoted to income maintenance rather than to improving incentives to work or invest."

The entire article is so very important. Click over and read it all.

2. James Cramer on CNBC: It’s Amateur Hour at Our Darkest Moment - “Until the Obama administration starts listening, until they start paying attention to what you’re watching – to the stock market, until they realize that their agenda is destroying the life savings of millions of Americans – then all I can give you is caution."



3. I spent the morning watching U.S. Federal Reserve Chairman Ben Bernanke's testimony before the Senate broadcast live by both CNBC and FBN. It was riveting. Bernanke does support the Obama stimulus plan but simply couldn't warn Congress often enough that the deficit must be reigned in and quickly.

One very sad and telling moment was when a Democrat made a labored effort to place the deficit blame on President Bush. Bernanke was calm and patient and respectful, but made it very clear the Bush deficits were minor in terms of economics and in relationship to the GDP and income tax revenue. The Obama deficit is an entirely different matter.

But my point here is that after watching the testimony I switched back to MSNBC where the headline and virtually every story was the "Rush Limbaugh battles Michael Steele for the soul of the Republican Party" story worthy only of Entertainment Tonight and not a major news network. I watched for 30 minutes and the story was repeated SEVEN TIMES!!! No joke. Bernanke's testimony was never mentioned.

I couldn't believe me ears. To give some credit to MSNBC, Pat Buchanan tried to simply dismiss the "controversy" for the complete non-story it is and tried his best to spread the warning of the coming economic disaster.

But I then had to check the other two cable news networks. I dutifully watched FOX for 30 minutes and heard a great interview with Gov. Tim Kaine, the Chairman of the DNC. Kaine's honesty and candor were refreshing. The interview was intelligent and timely. And neither Michael Steele nor Rush Limbaugh were mentioned even once. And Rush was never mentioned during the entire 30 minute break.

Then I switched to CNN. CNN was covering the Bernanke testimony and the economic situation. They also covered several other news stories, most importantly a building collapse in Cologne with devastating images. But Rush Limbaugh never got a single mention.

I have often criticized FOX NEWS as being a Republican outlet. But, at its very worst, FOX has never come close to the complete journalistic sellout of MSNBC. They are doing a grave disservice to their viewers.

It's Not Morning In America

Have you noticed how very pessimistic and negative Barack Obama has become? President Obama is forecasting a longer and longer recession and distant recovery. He is not upbeat. He is not optimistic. He is depressed.

Compare his slow, deliberate and leaden speeches with the buoyant optimism of Ronald Reagan in his first few days as President. It really was "morning in America" and the public found Reagan's optimism was contagious.

This was President Obama just yesterday, "This recession might linger for years. Our economy will lose 5 million more jobs. Unemployment will approach double digits. Our nation will sink deeper into a crisis that, at some point, we may not be able to reverse."

Many in the retail sector (where most of my personal contacts work) are really complaining about Obama "talking down" the economy. They feel Obama is not just forecasting the coming depression, he is actually making it much worse.

I have to agree.

This afternoon the House passed the completely partisan Pelosi and Reid Stimulus Package. It is a real shame that President Obama failed to properly oversee and guide this bill. The package will do a lot of things, but it's not going to "stimulate" the economy. This mess of a pork laden goulash of a bill will not help us to recover from the current recession and, frankly, Barack Obama and his advisers know this all too well.

He dare not speak optimistically, because there is not hope on the horizon. Nor was there any change in the bills development.

Nancy Pelosi, the worst elected governmental officer in the entire history of the United States, effectively killed bi-partisanship by all herself. Not one single Republican voted for her rat (err, mouse) infested stimulus bill. And not one should have voted for it. First, it is morally and ethically wrong to vote for a bill that will damage and perhaps destroy the United States. Second, if Pelosi is bound and determined to exclude all Republican ideas and voices from the development of the bill, she deserves no support.

As a Democrat I am repulsed by Pelosi and her heavy handed and light headed power grab. With supporters like Pelosi, President Obama doesn't need enemies.

Barring a much needed miracle, the pseudo stimulus bill will now pass the Senate. But Republicans will put up a good fight.

But there will be no moral victory for the Republicans. When the country is in ruins and unemployment and inflation reach double digits, there will be no joy in saying ,"I told you so."

Barack Obama is our president and he deserves our support and loyalty. He will need to support of every American to cope and cure the damage this bill will do to our country.

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.

Facing the Future

Here are some rambling thoughts, in no specific or logical order, about the very difficult future that awaits President Obama......


Somewhere in the deep, dark recesses of my mind I hoped that the worldwide terrorist conflict with al-Qeada was somehow all President Bush's fault. Of course, in the logical and reasoning part of my brain, I knew this was not true. The attacks on 9/11 were planned well before Bush took office, during the tenure of President Clinton. And, unlike Bush, Clinton was relatively well like and well respected world wide. And Clinton had worked hard, if unsuccessfully, for peace between Palestine and Israel.

But, somehow in the very back of my brain and in my heart, I hoped the election of Barack Obama might allow a start toward the ultimate end of our conflict with radical Islam. However, Ayman al Zawahiri brought me back to reality. In a scathing communique, al Zawahiri condemned President-elect Obama ion the nastiest possible terms.

In a flashy and well produced video al Zawahiri condemned Obama as a hypocrite and traitor to his race, unfavorably comparing him to "honorable black Americans" like Malcolm X, the 1960s black Muslim leader. Parroting the words of Malcolm X, al Zawahiri called Obama a "House Negro," a docile slave doing the bidding of the white man.

The State Department dismissed the new video as spin control and a desperate tactic by al-Qaedo to blunt the world wide popularity of the new President who not only is black but has Muslim middle name. While this is undoubtedly true, it clearly shows al-Qaeda has no intention of dialing back the rhetoric or scaling back their on going efforts to attack and ultimately destroy the United States and much of western civilization.

As if this news wasn't upsetting enough, today we learned that Iran has enough nuclear fuel to create their first atomic bomb. Just how long do we believe it will take Iran to use the weapon on Israel or pass it along to a terrorist organization? Clearly the European led negotiations to curb Iran's development of the weapon have failed miserably. Can Barack Obama bring a fresh start to these negotiations or will he quickly learn that Iran's sentiments toward the US are identical to those of al-qaeda. I fear that Iran hopes Obama will be a docile "house negro." Based on what we witnessed during the campaign, I believe Iran will quickly learn he is nothing of the sort.

But the biggest problem that President Obama will face is the collapse of the world economy. I remain convinced we are entering a period similar to, but much worse than, the great depression of the 1930s. Unemployment will quickly move into double digits and major and massive bankruptcies loom immediately as Obama in sworn into office. Even as I write this today the stock market is on the verge of losing 50% of its value from it's peak. And some people I know personally have virtually lost their life's savings.

The big issues will be the loss of jobs and the cascading collapse of the retail marketplace. It will be difficult to overcome these twin problems and solutions don't come easily or quickly.

So far I'm very impressed with the choices Barack Obama has announced for his staff and cabinet. He is assembling a team with depth and talent. He is going to need them. We all will.

What McCain Needs to Say.....

You can add me to the long, long list of bloggers who are already second guessing John McCain's performance even before the debate has begun.
I am deeply distressed that Senator McCain cannot gain traction against Barack Obama. Obama is a terribly flawed candidate, one who certainly should not be elected President.

I remain absolutely convinced that Barack Obama will win and win by a landslide. Can John McCain do anything tonight to stop the train wreck? No. So what McCain should do is simply argue policies and facts. He should leave William Ayers and Rev. Wright at home.

Two recent Wall Street Journal articles point out the road Senator McCain needs to follow. First is Obama's 95% Illusion which clearly point out the flaws and absolute fantasy of Barack Obama's constant claim of a tax cut for 95% of all Americans, and a tax increase only on the rich. Like the Journal, I remain stunned that McCain and the Republicans haven't blown this house of cards up before now. It is, quite simply, a lie. And it's a huge lie.

Obama's plan actually is a dramatic increase in welfare. And his plan increases welfare in a way that will dis-incentivize people from working or improving their job or salary. If people get a better job, they will actually lose money.

Worse, it's a plan that will institutionalize poverty. Obama's plan will pass out a lot of checks to people who pay no taxes. But the checks will be too small to lift people out of poverty. Yet his program actually penalizes those who try. We will create the largest underclass in history, permanently on the dole.

Second McCain needs to genuinely attack Barak Obama on his absolute failure to lead during the fight for legislation that could have saved the world from this huge Banking Crisis. Again, I'll reference a Wall Street Journal article, Obama Voted 'Present' on Mortgage Reform

I must also reference my own essay from October 11th, We're About to Elect a Good Listener When We Need a Strong Leader which covers all the same facts. I can only assume, since my essay preceded the Journal article by 4 days, that they are reading my stuff...... O.K., probably not.

The Journal article is much better and much more complete than my own. You need to read every word to really understand why this collapse happened and how it was that the Democrats, and not Republicans, authored "the only banking deregulation in recent years." We are reffing to the Democrats deregulation of Fannie Mae and Freddie Mac, the two mortgage lenders who caused the subprime disaster.

While Barack Obama wasn't the only villain in this meltdown, he could have personally stopped it. And, worse yet, he clearly saw the disaster in the making and yet he did nothing.

The Journal writes, "In the summer of 2005, a bill emerged from the Senate Banking Committee that considerably tightened regulations on Fannie and Freddie, including controls over their capital and their ability to hold portfolios of mortgages or mortgage-backed securities. All the Republicans voted for the bill in committee; all the Democrats voted against it. To get the bill to a vote in the Senate, a few Democratic votes were necessary to limit debate. This was a time for the leadership Sen. Obama says he can offer, but neither he nor any other Democrat stepped forward."

"Instead, by his own account, Mr. Obama wrote a letter to the Treasury Secretary, allegedly putting himself on record that subprime loans were dangerous and had to be dealt with. This is revealing; if true, it indicates Sen. Obama knew there was a problem with subprime lending -- but was unwilling to confront his own party by pressing for legislation to control it. As a demonstration of character and leadership capacity, it bears a strong resemblance to something else in Sen. Obama's past: voting present."

These are just two of the real issues Senator McCain needs to address. There are several others, but Bill Ayers is not among them. Senator McCain, you cannot win. So you need to fight with class and bring the real issues of the election to a public that, frankly, does not want to see them.

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.

The End of the World as We Know It

It's really ugly out there.

I'm not sure where to start. But I don't like what I see. It is ugly out there.

John McCain has decided to play ugly. Really ugly. I'd like to be able to devote an entire entry to the mistakes John McCain and his advisers are making in this campaign. I believe Barack Obama is vulnerable. But not to the type of attacks McCain is contemplating.

The press and main stream media are really ugly. Journalism is indeed dead. Way too many editors, publishers, reporters, newsrooms, magazines and newspapers have an agenda. And it is interfering with their their ability to fairly report the news. And most of them don't realize what they are doing. It's all about the O. This is so ugly. And we the people are being so short changed.

And the economy is ugly. Really ugly. We are headed right into a major depression. Not just a recession, but stagflation, too. Prepare today for double digit inflation. And double digit unemployment. Life as we have known it is about to come to an end.

I wish I had confidence that Barack Obama could handle all of this. I don't. He is in way over his head. You want a frightening dose of reality. Obama has never made a single tough decision in his entire life. Not one. Not ever. But he's about to learn. On the job training.

Of course nobody is discussing this. The main stream media is orgasmic. It's all about the O. Oh, and Sarah Palin. Let's not forget the fluffy bunny from Nome. The press is so obsessed with her.

Oh look, it is all about the O's. Obama and obsession.

Meanwhile John McCain is lost in endless and meaningless cycles of Ayers and Wright. If McCain can't handle this election, why would we think he could handle the economy?

A fluff bunny could beat Barack Obama. Oh wait, maybe a fluff bunny will.

Change.

Be careful what you wish for. Things are going to change. It's the end of the world as we know it.

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.

Economic Pearl Harbor

The current Wall Street credit and lending crisis has been called an "economic Pearl Harbor" by mega-investor Warren Buffett. After doing as much study and research as I can, and talking with experts I trust, I believe Buffett's analogy is true.

President George Bush's speech last night was probably the very finest of his presidency. Bush was clear, logical and he didn't "talk down" to his audience as he often does. He told the true and exact story of the events leading up to the crisis and didn't play politics at all. That was a surprise.

In fact, Bush was unusually non-partisan. He clearly reached out to Democrats.

The only political note I will add is strictly my personal opinion that John McCain continues to handle this crisis about as badly as it is possible to handle it. His political "time out" and his proposal to delay the Friday night debate looks incredibly foolish.

An important part of the decision we voters must make in choosing the next President is watching how he or she handles events. McCain looks very bad here. Even if he is totally sincere in his desire to help solve this crisis, he still appears to be playing politics. As I often say, "Perception Becomes Reality."

If the McCain campaign was frightened by the polls yesterday, just wait until next week.

But let's get back to the real crisis. Warren Buffett is like the men and women who volunteered to join the military after Pearl Harbor. He immediately volunteered to serve with his FIVE BILLION DOLLAR INVESTMENT in Goldman Sachs.

From the Bloomberg article linked above:

Sept. 24 (Bloomberg) -- Billionaire Warren Buffett, calling turmoil in the markets an "economic Pearl Harbor,'' said his $5 billion investment in Goldman Sachs Group Inc. is an endorsement of the Treasury's $700 billion bank rescue plan. "I am betting on the Congress doing the right thing for the American public and passing this bill," Buffett said on cable channel CNBC today. "I certainly have a vote of confidence in Goldman and vote of confidence in Congress." Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben S. Bernanke are pushing Congress to quickly approve the proposal to remove illiquid assets from the banking system. Buffett is buying a stake in New York-based Goldman after three of the investment bank's biggest competitors collapsed or were forced into emergency sales. "I think the Treasury will pay back the $700 billion and make a considerable amount of money," Buffett said, adding that if he had $700 billion on the government's terms to buy distressed assets, he would. "Unfortunately, I'm tapped out." Goldman rose $4.95, or 4 percent, to $130 at 4 p.m. in New York Stock Exchange composite trading after Buffett's Berkshire Hathaway Inc. agreed yesterday to the investment. It will pay 10 percent interest and give Buffett the right to buy $5 billion in common stock in the next five years at $115 a share. Buffett, 78, has frequently scolded Wall Street for shoddy accounting and risky investments. He's investing in the most profitable U.S. investment bank a week after Lehman Brothers Holdings Inc. went bankrupt and Merrill Lynch & Co. sold itself to Bank of America Corp. Bears Stearns Cos. in March was absorbed by JPMorgan Chase & Co.

I have been a strong and unrelenting critic of Warren Buffett on these pages for his absolute failure to cease investments that are empowering the genocide in Darfur. But I certainly applaud his stepping forward today to help calm the markets and support America during this current crisis.

Rewriting History

I watched Senator Chris Dodd (D-CT) on the news shows on Sunday. Long gone are the days of Tim Russert when reporters actually did their homework and did actual research. Tough questions were off the table. However, ample opportunity was given to Senator Dodd to blame everyone but himself for the current crisis.

Sadly, the bulk of the blame actually belongs at Senator Dodd's doorstep.

From THE NEW YORK TIMES, September 10, 2003:

WASHINGTON, Sept. 10 — A report by outside investigators in July concluded that Freddie Mac manipulated its accounting to mislead investors, and critics have said Fannie Mae does not adequately hedge against rising interest rates. ...

"The current regulator does not have the tools, or the mandate, to adequately regulate these enterprises,'' Mr. Oxley said at the hearing. ''We have seen in recent months that mismanagement and questionable accounting practices went largely unnoticed by the Office of Federal Housing Enterprise Oversight,'' the independent agency that now regulates the companies.

"These irregularities, which have been going on for several years, should have been detected earlier by the regulator ..."

A bill was placed before Congress that would have implemented the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade earlier.

Guess who sounded that strong warnings about the impending crisis at Freddie Mac and Fannie Mae?

Guess who proposed the bill to increase strong REGULATION of the Housing Industry?

President George Bush and the Bush Administration!

And guess who fought it all the way?

The Bill was opposed and eventually blocked by none other than Senator Chris Dodd!

Dodd was completely in the pocket of Freddie Mac and Fannie Mae and Countrywide Finanace Co. Dodd was (and still is) the largest recipient of campaign contributions from the now failed housing lenders. We're talking hundreds of thousand dollars.

The New York Times news story from 2003 continues.....

''There is a general recognition that the supervisory system for housing-related government-sponsored enterprises neither has the tools, nor the stature, to deal effectively with the current size, complexity and importance of these enterprises,'' Treasury Secretary John W. Snow told the House Financial Services Committee in an appearance with Housing Secretary Mel Martinez, who also backed the plan.

After the hearing, Representative Michael G. Oxley (R), chairman of the Financial Services Committee, and Senator Richard Shelby (R), chairman of the Senate Banking Committee, announced their intention to draft legislation based on the administration's proposal. Industry executives said Congress could complete action on legislation before leaving for recess in the fall.

Significant details must still be worked out before Congress can approve a bill. Among the groups denouncing the [Bush Administration} proposal today were the National Association of Home Builders and Congressional Democrats who fear that tighter regulation of the companies could sharply reduce their commitment to financing low-income and affordable housing. ...

"These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis," said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. "The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing."

President Bush's strong regulatory proposals died in the Senate with Senator Chris Dodd leading the effort to block any regulations or protection for the American Taxpayer.

I just love it when history gets completely rewritten.

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A grateful tip o' the Wizard's Pointy Cap goes to Wiz-ziW for pointing me to this story and providing documentation.