Friday, November 07, 2008

President Elect's Chief of Staff Says What?

Rahm Emanuel, upon seeing Senator Obama's election night victory, reportedly drove a knife stake into a table. A list of Obama enemies were listed one by one in slow diction as if they were being prepared to pay for not falling in line with Senator Obama's campaign.
Paul Begala described Emanuel as a cross between a hemroid and hurting tooth. Sounds lovely, right?
Known as Rahmbo for his tough non-diplomatic take-no-prisoner approach in politics, he is a partisan. And now he has been chosen Chief of Staff to President Elect Obama.
What does this mean? Anyone wanting to see the President will schedule through Mr. Emanuel. He has earned his stripes. He is tough. He has no love lost for Republicans.
The Obama campaign seemed to have a thin skin for opposition to his campaign. The Washington Post and Dallas Morning News were thrown off of his campaign plane for coming out formally and supporting Senator McCain. Free speech may not be so free around the Obama regime?
Will a Republican ever had chance to set foot in the White House for debate with Senator Obama? Probably not. Outside opinions may need to tread lightly if ever they hope to conference in the next four years with Washington's newest Messiah.
Rahm Emanuel has a long memory. He has a list of out-of-favor characters that are on it.
Trained in the Clinton White House, he has learned the lessons of cold-calculated decisions. He has learned to be black and white about friends and enemies. There is no in between.
Will Republicans see the inside of the White House? Only when they grovel pitifully to see the President. Will Hillary's people appear in the White House? Not unless Emmanuel sees the desperate need for that meeting to take place.
Senator Obama has promised to unify the nation. If Rahmbo Emmanuel is any indication, that promise will exempt all politicians that fought against "Change that we can believe in" during the primaries and general election.

President Elect Obama's 1st News Conference?

Standing at a Chicago lecturn 65 hours as President Elect with the august company of serious financial leaders of American finance, President Elect Obama set forth an agenda for America. Having won 300 plus electoral votes and nearly having a super-majority on his side, the economic downturn was his first priority. His is a mandate to fix an ailing economy.

The auto industry has its hand out for 50 billion dollars. GM and Ford may be going under. And President Obama said "no way". Too many jobs will be lost. Governor Granholm, who has precided over an emabarassing Michigan economy and was re-elected, was standing behind Obama. No doubt she was lobbying hard for money to float America's carmakers on the back's of American taxpayers.

Weren't state governments flush with cash 3 years ago. Instead of sending the money back to the people or paying down state debts, what did the bunches of states do? They expanded. They created. They sought more power. They hired bureacrats, secretaries, new department heads, new plannners, etc....Today these states are at the edge. Nearly unable to borrow money, they are begging President Bush and soon to be President Obama for a handout.
California is asking the federal government for a bailout. New Jersey has its hands out as well. President Elect Obama and Robert Reich appear sympathetic. And more states will be lining up at bar for drinks from the federal government.

The economy has lost 1.2 million jobs in 2008. About 240,000 jobs have been lost in the last 90 days. Unemployment is at a 14 year high at 6.5%. President Bush has failed the economic test of free markets. About 2 trillion dollars has been earmarked to tackle the credit crisis. AIG got 85 billion dollars. Their executives got spa treatments and kingly retreats with the money.

Stimulus packages in the amount of billions of dollars went to taxpayers. Home mortgage bailout I was procured in September of 2007. Home Bailout II is being considered by Sheila Bexar's FDIC and Treasury Secretary. And with $700 billion bailout package to buy preferrred stock of financial institutions and plug holes for companies teetering on bankruptcy, the economic crisis continues to worsen. And what about the Federal Reserve? The Federal Reserve guaranteed every money market account in existence.

Such is the unfair predicament President Elect Obama is thrust into. On this Friday, it was expected that President Elect Obama was going to appoint a Treasury Secretary. He didn't. He said he will be operating at a pace of deliberate haste with an emphaisis on both words.

Retail, autos, real estate, finance sectors, and state governments are suffering. Even New York City's finest police officers are having 1000 of their best being given their pink slips, while the city adds 200 extra meter readers for additional revenues to the city.

The cadre of finance genius' standing behind Obama are impressive. Volker, Summers, Reubin, etc...then you have Robert Reich, former labor secretary for President Clinton. These guys have been through the war of recession, Mexican bailouts, and 21% inflation before. You would think such characters surrounding Obama would give each American pause to not worry.

History probably will be no guide to these fellows. President Hoover expanded government's role from 1929 to 1932 to unprecedented levels after the stock market crash. FDR thanked him and said enough had not been done. Smoot-Hawley Tariff that destroyed 83% of global trade wasn't enough damage. FDR proceeded from 1933 to 1945 to New Deal America into an extended Depression with Tennesse Valley, WPA, AAA, and other over-arching regulation and unparalleled American government intervention in the private marketplace.

Will this be the blueprint for President Elect Obama's plan? When asked if he was going to hike taxes on those earning 250K in 2009, he evaded the question. He stated that "we are going to grow the economy bottom up by creating new jobs."

President Bush's team focused on relieving the credit crisis. Obama is focusing directly on creating jobs and growing the economy "bottom up" by government hands. It will be government that creates the jobs; not the private sector.

Did we get specifics on his plans? No. But reading between the lines tells us a few things:
  • the rich will pay higher taxes
  • the federal government will go on a hiring spree with infrastructure projects
  • money will be handed to average and poor Americans from the federal government
  • states will receive relief from the federal government
  • more stimulus packages...and more...and more until the economy is fixed

Meynard Keynes, the economist, would be proud. Spend as much as you can creating deficits until the citizens feel free to spend money themselves. So re-arming the American consumer is goal number one. Friedman would choke. Von Hayek would suggest a reading of his "Road To Serfdom" once again.

But history can help only when leaders listen. What President Elect Obama has inherited is a $10 trillion bowl of pits from an unwise President and Congress. Over-spending and over-borrowing by all has been the problem. And apparently more of the same is supposed to strengthen America.

Let's hope it doesn't take 12 years of depression and a world war to get America back to her days of prosperity?

Huckabee on Taxes