Sunday, December 21, 2008
"I Am Not Herbert Hoover!"
Hoover from 1928 to 1932 oversaw the crash, depression, and largest destruction of wealth in American history. Historians don't ponder the details of Hoover's actions very much. Many believed Hoover to be one who did little but stand by and watch the building burn down. But quite the opposite occurred.
Thomas Dilorenzo in "How Capitalism Saved America", illuminates the detailed programs, massive government spending, and intervention that Hoover implemented to stablize the economy. Hoover "orchestrated massive interventions-high-wage policies, tax and spending increases, protectionism, government credit rationing...his hyperinterventinism destroyed the economy's prospects for the kinds of adjustments that needed to take place."
What was the result? "He turned a recession turned into The Great Depression." (Dilorenzo, Thomas p. 178)
Hoover doesn't get the blame for the banks that lacked the imaginative course of making more capital available. Perhaps this ranks has the single greatest error of the age that tossed thousands of banks into bankruptcy. But Hoover's hyperinterventionism and his signing of the Smoot Hawley Tariff Act of 1930 eviscerated 83% of foreign trade and destroyed the American economic engine.
How does President Bush's term compare to the Hoover years? Deroy Murdock of National Review Online describes "comrade Bush" as a centralized planner who destroyed limited-government policies.
"Bush’s eight-year-long spending spree, his signature on at least 69,341 earmarks, his barely touched veto pen, his $783 billion Medicare drug entitlement, and his massive financial bailout (so far: $3.35 trillion in actual outlays and $13.35 trillion in total guarantees and commitments) apparently are not enough."
Strewn acorss the yard of American economics in 2008 are the bones of Bear Stearns, Fannie Mae, Freddie Mac, and AIG. The $700 billion TARP, Paulson's purchase of bank preferred stock, purchase of non-performing mortgages, and moratorium on home foreclosures have been Bush's answer to stock market declines of 40%. City, county, and state officials booked their tickets for one-on-one POW WOW sessions with Senators, Congressmen, and the President pandering for fedreal dollars. Now the Big 3, facing bankruptcy, have trotted up to Washington with hands out pleading bailout money. President Bush has responded with 17 billion dollars.
Does this sound like government invervention similar to Hoover's? FDR's backers gleefully proclaimed how wonderful Hoover's administration set forth the agenda for governmet solutions as FDR was taking office. More of the same was expected. FDR was going to "do something" and not sit back. Hoover, the "golden boy", who engineered the feeding of Bolsheviks in their times of distress during Harding's Presidency, was bent on re-organizing and socially engineering capital and labor to his own likings as President. He did it.
The early 1970's saw President Nixon with Hoover & FDR type policies. He froze wages prices on a huge number of goods. He eliminated the gold standard. Nixon was free to spend America's surpluses into deficits to get re-elected. New social programs were Nixon's ideas to get re-elected. Hoover would have loved Nixon.
Did not President George Bush, who claims to be a free-market guy, not employ similar strategies? Bush gave Americans health care prescription, No Child Left behind, and forced trillions of dollars of bailout money down the throats of specified financial institutions. In addition, even when the Senate voted against funding the auto bailouts, President Bush handed the auto makers 17 billion dollars anyway.
President Bush can claim "I am not Herbert Hoover". But the facts speak a different story. Government intervention is what the Bush administration has been about. In Foreign policy and domestic policy American government has attempted to be the solution for the people under the Bush Presidency.
The "Golden Boy" of 1928 has been reincarnated in GW Bush. The only question remains: Will Obama Obama willingly play FDR?
Friday, November 07, 2008
President Elect's Chief of Staff Says What?
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?
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?
Wednesday, September 10, 2008
Say Anything But That Senator Biden!
On this occasion, Senator Biden decided to honor Senator Clinton. It was a campaign stump speech. Microphone in hand much like a hand grenade, does much damage if held too long. Enter Joe Biden. The proverbial know-it-all whose loquacious ramblings are his marqee signature, did it again.
A day after telling reporters that voting Governor Palin into office would be a step back for women in America, Senator Biden frantically re-assessed his statements. He over-compensated telling Obama supporters, the following day, that Hillary Clinton is exceedingly qualified to be President, Vice President, or anything else Washington has to offer. "
In fact, she is probably "more qualified than me," continued Senator Biden.
One wonders at what point Senator Biden began to sweat and lose confidence about his position on Senator Obama's ticket. Rudy Juliani called it, days before at the Republican Convention, rivetting America with a penetrating line about Senator Biden:
"Senator Biden better make sure he gets his Vice Presidential appointment in writing."
The crowd roared. Yet, the world listened. And apparently, Senator Biden listened all too well.
Days later, the Senator is amazingly at a rally flogging himself in contrast to the Hillary factor that could have elevated the Obama ticket.
Facts don't go unnoticed. The Obama-Biden ticket has been getting shellacked by "Hurricane" Sarah Palin for thirteen unrelenting days. Gallup, Fox, and Rasmussen polls have pivoted from Obama being up 3 to 5 points to McCain being up 3 to 5 points since the Palin choice. And the normally pugnacious and feisty Joe Biden is at a loss for words.
Except that he admits Hillary is more qualified that him to be Barak Obama's partner to take the White House.
So why is Senator Joe Biden cathartically confessing on national TV his lack of confidence before all of America sixty days before the election?
He's a liberal. Liberals can't help themselves. That's the short answer. Liberals have to find a way to project blame as times get difficult for themselves. Preparing for defeat instead of gearing up for victory is vintage American liberalism.
In addition, Super Nova Sarah has single-handedly sucked the emotions and energy from the high-flying Obama campaign. Senator Biden, even before Sarah Palin entered the race, saw the cracks in Obama-Biden. Biden's first clue had to be the national polls. Embarassingly, Biden handed Obama the "Biden dip" of two points instead of the traditionally expected "Biden bump" when Senator Biden was chosen to be Obama's running mate. Politicians, the caliber of Biden's, are aware of their polling numbers for sure.
Obama's judicious plan to amalgamate experience with his fresh-face charisma, at first exhibited a chimerra of safety. But with 9,000 vote tally toward his own anemic presidential campaign, Senator Biden, the sage, began to feel the heat in the kitchen. First, how was he to explain the dumping of Hillary and her 18 million voters for himself?
Secondly, how was Senator Biden going to eclipse Alaska's shooting star, Sarah Palin? Neither Senator Biden nor his sagacious advisers, have a clue as how to handle Sarah Palin. Nor can the Biden or Obama camp state with a straight face that the dumping of Hillary overboard with her 18 million energized voters was highly intelligent.
Out of his league, Senator Biden, apparently recognizes what Americans have known already. The Senator should not have been Senator Obama's choice for Vice President. The lady with 18 million votes was far more attractive a partner.
The Obama race has turned a bit night-marish. And Biden is now forced to concoct excuses, explanations, and reasons for the difficulties the campaign faces. Joe Biden is certainly a first rate liberal. Look at how Biden responds to adversity. He conjures up excuses instead of fighting through failure.
Don't blame me. I didn't choose myself for this position. Senator Obama's judgment, not mine, should be questioned. Hillary unequivocally is the better candidate. She would have been my choice for sure. If anything, I should be her Vice President and Obama should wait until his turn.
How propitious a moment that Senator Biden prop his imaginary feet upon America's imaginary couch confessing to us all of his own redoubt as a central cast player in Senator Obama's bid for power. Is there any dog in America that has the ability to roll over and play dead as easily as Biden?
The scandal here is not that Senator Biden thinks he is not the most qualified individual for the job of vice president. Hillary knows he is not. Democrats are not motivated by Biden. And Joe Biden isn't sure either about the choice. But the real foopah is Senator Biden's cogent apology for being the dud candidate forced to acquire the mantle of VP. Rule #1 or #23 in high stake politics is don't let them see you sweat.
Obama must be wondering how he will win in November with "foot in mouth" Biden. Maybe Juliani is right. Biden ought to get his VP nomination in writing. Even Biden believes Hillary would make a better VP than himself.
Could that be the reason that Senator Obama entreated Senator Hillary Clinton this past week to a two hour lunch?
Monday, September 08, 2008
When Fashion & Politics Collide?
New fever in town...Sarah Fever...neither the Obama campaign, the media, nor the American public can quite get enough of this Alaskan Governor.
The upswept hair, designer glasses, and straight-talking sports-loving, PTA mother of five turned Governor is overshadowing the pretentiously pitiful Hollywood elite stories of Spears, Lohan, Hilton, Timberlake, and O.J. And this time...
This time its a real hero...for real Americans. Enter Sarah Palin. It begins with a small-town story in the far reaches of American empire.
Little girl who hunts, fishes, and fears nothing becomes beauty queen contestant, sportscaster, wife, and mother of five. In her spare time, she runs for City Council, Mayor, and is appointed to the Alaskan Commission on Oil & Gas for ethics reform. Gun-toting and hockey-playing mother then blows the whistle on the entire Republican hierarchy in Alaska. She resigns her post. Sarah loses a race for Lieutenant Governor in 2002. Then she overruns Governor Murkowski in a Republican primary and wins the general election race in 2006.
She says "No" to the "Bridge to Nowhere". Slashes budgets, fires personnel, and gives Alaskans back the surplus that accrues in Junea.
Guns, babies, and Jesus--this is chic? Hollywood missed it. But heartland Americans see the glamor. And they see the girl next door. She is both-isn't she?
The moment Senator McCain chose Governor Palin, cultural life was re-affirmed for millions of Americans. It came out of nowhere. Consider the effects of this visceral connection Sarah Palin has with the American people:
- Those glasses she wears-they will be the rage
- Upswept hair of Sarah's will be insatiable as husbands and boyfriends tell their better half how much she reminds them of Sarah
- Alaska's tourism will explode--more upstart hunters, fishermen, wild gamesmen will join the hunt for the real American up there
- Sarah's hometown, Wacilla, will get royal treatment. Princess Di is popular. Wacillians will wonder what on earth the lower 48 are doing flying to their hometown in some weird mystical journey.
- Sarah look-alike contests will pop-up
- "Palin Power" products will be licensed and sell all across the country
- Books describing Sarah of all kinds will find themselves on Amazon, Barnes & Nobles, etc...flying off the shelves to top ten status
While liberals are waking up in cold sweats attempting to control the flood damage, Sarah Palin is cris-crossing the nation creating a brand name that may become unparalleled in crossover appeal from the good ole boy politics into the forrays of American iconic culture. Mothers, daughters, and a huge swath of Americans are seeing the American we love in the face of Sarah Palin. Millions will be devoted admirers, for years to come, of this strong woman who maintains her feminine qualities while "fighting the good fight."
The net effect: purchase, consume, distribute Palin product to all. Selling and purchasing is what we Americans do well when we celebrate. The writing is on the wall. A new hero has been born. The Governor looks to have staying power. Its time to brand and license the newest and growing American icon--
When John McCain was asked what his favorite song was:
"Bomb...Bomb....Bomb............Bomb...Bomb....Iran" responded the Senator in a jovial manner in parody of one of his favorite songs---Ba-Ba-Ba-Ba-Ba-Baran---courtesy of the Beach Boys.
Since Senator McCain has given us all renewed interest in the Beach Boys, surely the Beach Boys wouldn't mind returning the favor by minting a revised edition of California Girl" to include Alaska Girls, right?
Move over Barbie. You've had fifty years as America's girl. Its Sarah's turn.
Thursday, September 04, 2008
Which America Do We Want?
Palin Power has been catapulted to the national stage. Governor Palin has thrust a stiletto drawing political blood from Senator Obama and Senator Biden's campaign. Out of nowhere, Senator McCain has been transformed from stranger to hero amongst conservatives.
Moderates are smitten by the girl from Alaska.
And what about liberals? They are running for the hills. Just as Ali's punishing defeat of Foreman in the 1973 "Thrilla' of Manilla", so to Senator Obama appears destined for the "Thrilla in Wasilla". The Mayor of only 6,000 people and 15 employees has responded forcefully to the Senator's lack of experience claim.
So what is so attractive about this Governor from Alaska?
She is tough. She can throw a punch. She can take one. She is us. Mother of five who loves life, loves her husband, and loves America. She embodies what we love about America. More opportunity, more hope, less government, less spending, less corruption, less waste...and then there's the guns, babies, & Jesus element that connects with average Americans.
Liberals and Democrats are elitist enough to consider these values rather arcane. Where Obama would tax; she would hand the money back to those who earned it. Where Obama wants more programs, Palin cuts waste, fraud, and corruption. Where Obama flies private jets, Palin sells jets on Ebay to give money back to the people. Where Senator Obama allows remains quiet while babies are born in hospitals and left to die, Governor Palin nurtures life in and outside the womb. Many Americans are re-thinking the race. Americans are captivated. It is not too descriptive to state that many Americans feel politically "born again" with hope for the country.
The parched trail of political irresponsibility that Republicans and Democrats have left Americans with since Gingrich's "Contract with America" has made Americans appreciate what little they see in the girl from Alaska. Only one question remains: will it be Sarah's America of reform or Obama's America of change that wins out in 60 days?
America's New Girl?
America is a good place. The people want smaller and more accountable government. Palin represents the values of both. How long has it been since we have seen a Republican embody both values?
Governor Palin's indictment of Senator Obama's sparse record resonated well.
Authentic beliefs are apparently important to middle class Americans. The gun-packing mother invaded the lives of average Americans. Politically "born again", American spirits across the nation were lifted from the parched wilderness of Republican land.
What are Americans seeing? Giddy moms saw mother of five, keeper of husband, and activist in community expound her ideas through "real talk".
Husbands watched a reflection of the best the female gender has to offer. Some saw the strength of their mother. Others, the tenacity of the sister. Other husbands saw glimpses of their wives asserting strength and feminism in a rhapsody of eloquent grace.
Senator McCain's record and character have teamed up with no-nonsense Sarah Palin. And as Governor Palin addressed the crowd with surgical precision, her words exposed the paltry experience and record of Senator Obama.
In a whirlwind of 5 days, conservatives have found a hero. Centrist women have found a life-long friend. Liberals have met their nemesis, and need pyschotherapy.
The Ronald Reagan revolution has been re-launched.
If liberals wanted a popularity contest, Senator McCain has countered. McCain is now the "coolest" guy in the race. Why? He has the babe as his VP. Palin is Reagan's political child. The reincaration of the venerable and dusty ideas are being resurrected.
Is it possible that for the first time in American history Americans will go to the voting booth because of a Vice Presidential choice?