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Why It’s Important that Obama Fail
By Kip Dellinger
The reason that Barack Obama must fail is quite simple – his Presidency portends the loss of liberty and self-determination for our children and grandchildren. Oh, yes, until the enormous government Madoff Scheme fails, they will have “security” underneath an oppressive blanket of control by government elites. But, eventually, all will collapse like a house of cards – we have seen this in real time in the former Communist countries.
The only thing Marx was right about is that history does repeat itself: first as tragedy and then as farce. Obama and his fellow “Deep-Thinkers”, now grabbing for a Command and Control Economy, are about to lead us down “Farcical Road.” Worse, as the spoils that Federal, state and local governments control accumulate in larger numbers, the most nimble minds of selfish interest will flock to manipulating that spoil systems like bees to honey.
Think Bernie Madoff, John Thain, and the management of Citicorp, Lehman Bros., Indy Mac and Countrywide as filing government roles in a centrally managed economy and interacting with former peers, in the future functioning as lobbyists for companies and organizations seeking Federal largesse or benefits in an environment where the government spending has inflated into a bubble several times the size of the 90s dotcom debacle or the recent and ongoing housing bubble. Our children and grandchildren will be sorting through the rubble of that inevitable burst for decades.
Perhaps Figurative President Obama was simply rolled by President Nancy Pelosi and Prime Minister Harry Reid . This would be consistent with his life long refusal to ever – not once – buck his Party in the cesspool of Illinois politics. But he embraced a Spending Bill masquerading as “stimulus” and now it is his stimulus bill. This is consistent with an earlier prediction of this writer on these pages – that this President will either not “set the agenda” or his entire campaign was a fraud when he denied he intended to pursue socialism as an objective of his Presidency.
In any event, the “One” did promise us a post-partisan world of change we can believe in. The era of bi-partisanship actually arrived. Unfortunately, for Obama, it was a bit different than he anticipated. The only bi-partisan act in D.C. lately was the 13 Democrats in the House that joined every last Republican in voting against the stimulus bill.
Obama seems to forget that Republicans in Congress were elected, too, and those who elected them sent them as Republicans; if they wanted Democrats, they’d have voted them in. The Blue Dogs voting with the Republicans understand marching in goose-step with Obama and its potential for future Congressional unemployment.
Assuming that Susan Collins, Olympia Snowe and Arlen Specter – Republicans in Name Only for years - vote for the ridiculous spending bill, the head count will still reflect plus 10 on the Republicans side. The real issue is whether Obama will hypocritically declare that the passage of the Senate legislation was bi-partisan.
In addition, the same day Obama demonstrated his Harvard-bred intellectual hubris in a town hall meeting, he waffled when asked about Senator Patrick Leahy’s proposed McCarthy-Spanish Inquisition style “Trust and Reconciliation” investigation, Obama again showed his lack of backbone in refusing to say he wouldn’t support such inquiries.
While one can envision many of the Santa Monica Leftists standing and cheering, those folks only reveal their zeal to criminalize the work of those in government whose political ideology they hate. And that hatred is revealing of a serious lack of morality despite their claims of a moral monopoly.
Republicans should actually welcome this inquisition because it will provide the Bush Administration targets an opportunity to reveal which Democrat legislative leaders knew, when they knew it and the fact they approved (in the dark of National Security needs) virtually the entire Bush agenda for dealing with terrorism. Moreover, Republican witnesses will not need advice on how to testify in the front of the cameras – they simply need only to refer to script written years ago by Dalton Trumbo and his fellow travelers. Bush targets will be well advised to follow that script.
The spending bill is not going to stimulate the economy in a meaningful way – although it might be fun to watch laid off lawyers from the white shoes firms and retail types out there with jackhammers and backhoes repairing the infrastructure of America. Construction projects on public buildings may put construction laborers back to work – but if it’s union folks, their unemployment benefits will simply be lost as they are replaced with wages, a non-significant trade off. Of course, this is California so lots of construction workers here illegally will be put back to work and will return to sending more than half of what they make to their country of origin.
Education and medicine are in the bill for huge payments, and it will be nice to see all the folks laid off with an opportunity to return to work. Oh, dear, a review of employment statistics seems to indicate that both sectors have actually added employees consistently over the past few years. So most of the money will likely be divvied up among the currently employed – especially in the heavily unionized teaching and nursing sectors. But, hey, with more money, they’ll work harder.
But then we’re told teachers already work themselves to the bone and put body and soul into the job. So what’s the purpose of the educational expenditure? Is it to attract more teachers and expand educational opportunity for Americans?
That takes years to meet the credentialing requirements established to protect the monopoly of the educational establishment – specifically so those on the inside can lobby for and divide up money from government taken as taxes from the rest of us.
If the educational establishment truly wanted to provide stimulus and employment opportunities, its leadership would spearhead a movement toward conditionally accepting as new, added teachers many of those very qualified people currently on the unemployment roles. Think this would ever happen in, say, Santa Monica, where alleged educational leaders cowtow every step of the way to the educational establishment and beat their breasts about how “progressive” they are.
Included in the “spending bill” are substantial “tax cuts.” Let’s get real here. This is not an across the board rate cut including tax rates for individuals. Over the past 20 years, over 80% of private jobs “created” have come from small businesses – those enterprises that employ less than 50 people. About 98% of the taxable income from those businesses is not subject to corporate tax rates; the profits are taxes on the owner’s individual returns. An overwhelming majority of those businesses are service businesses.
All these tax breaks for equipment, buildings, vehicles, and the like are depression era industrial policy. Using depression era type spending not only ignores that fact it didn’t work very well then, it is totally ignorant of the fact we are no longer an industrial and agricultural-based economy.
Oh, Obama, has really, really smart people advising him. Uh huh. For reference, see David Halberstam’s “The Best and the Brightest”; some of these Harvard, Yale and Stanford types – there are plenty of them around the West Side of Los Angeles – are so certain of their intellectual superiority that when you google their names, “hubris” pops up.
Besides the “spending bill,” we are about get another round of billions, perhaps a trillion dollars, cascading through our financial system to bail out the banks and many other financial institutions. The government fully intends to tell them how to do their business in the future – who to loan money to, how much to spend, what to charge.
This is a formula that in the entire history of the world has never worked. When money is “politically allocated,” every single economy that has tried it has stagnated in terms of growth with accompanying high rates of unemployment and a monstrous lack of opportunity for its youngest citizens.
Moreover, as our economy stagnates and Obama and his Socialist cohorts in Congress issue commands to the American public about how to live and spend and impose buy American only policies that invite a world trade war, the Japanese and the Chinese are going to start dumping the staggering amounts of Treasury obligations that Obama (and, yes, his predecessor) are using to “save” the country.
Anyway, the day of reckoning will arrive. Unemployment will remain high, stifling taxes will be necessary to pay for the spending spree and interest rates for Treasury obligations will need to rise dramatically to attract capital. The biggest American companies will stagnate and entrepreneurship will evaporate along with jobs creation engine that accompanies it. Obama’s goal of socialism with be achieved by destroying the economy in order to save it. The destruction will include the accumulated wealth of virtually all Americans.
“We’ve already destroyed huge amounts of wealth because markets ‘don’t work’” many liberals, envisioning the utopia of risk free democratic socialism, will yammer. In this economic debacle, mistakes were surely made. But they arose from government intervention in order to prevent markets from working because it would be financially painful and those market problems originally were in large part the product of the wrong regulation, not the lack of it – except where the Democrats rejected attempts to regulate Fannie Mae and Freddie Mac. However, markets recover and have, wherever and whenever allowed, continued upward as a historical trend.
Obama and Democrat socialists are engaged in passing spending and bank bailout bills that are so monstrous in size and scope that the recovery and continued growth of the markets will be all but impossible. And, in this future, when we begin recovery the spending and taxing policies of those folks will stifle the economy and the response will be more socialism.
In other words, having destroyed your wealth, these folks will ensure you can never rebuild it. After all, wealth does equal power. And when all power rests with the State and its “favored” constituencies, why allow for any competition from outsiders – like the people or private enterprise?
Now one can argue: “that will never happen!” Read a bit of world history. Try Germany in the 1930s. Right now, the people are buying “Obama” lock, stock and barrel and the media is engaged in a full blown send up of the man as the new Lincoln and FDR, with a dose of trust buster Teddy all rolled into one. And listen to the man engage in his fear mongering – his does sound a bit more like some notorious dictator than FDR.
Of course, as well, the American people might wake up soon enough to vote these folks out of office before that can’t – not because of martial law or some such thing – but because of the opportunity for incumbents to rig the system. If California is any indication, though, the odds that will happen are slim.
California voters keep re-electing legislators that can’t balance a checkbook let alone run a state economy. Our legislative branch basically operates on the premise that there is no amount of money that is too much to spend on pet projects and favored voter blocks -- we’ll just tax the rich. Unfortunately, they have found the rich aren’t so rich anymore and tax revenues tanked at the same the bills became due.
Imagine in a few years, a Federal government operating like California – only without a Federal government to provide its bailout, we will have to turn to China.
As Lord Melbourne, Queen Victoria’s first Prime Minister, sadly noted: “What all the wise men promised has not happened, and what all the damned fools predicted has come to pass.”
Kip Dellinger is a West Los Angeles resident. He thought about running for public office, but has decided to buy one-year “puts” on the S & P 500 at 800 and sell 20-year Treasury obligations short and enjoy remaining in the private sector.