Views on the News
Views on the News:
American voters tossed Republicans from Congressional
power and handed both houses of Congress back over to Democrats, who had
previously controlled them for forty years. Americans overlooked the reality that most of what
has gone wrong in
Obama faces the inevitable disillusionment of his followers who
invested in him their hopes and dreams and utterly
unrealistic expectations. Hell truly hath no fury like that awaiting Obama as he fails to eradicate the worries and
responsibilities of his delusional followers.
The cult mystique of Barack Obama continues while his fawning supporters blindly accept
every move he makes, proving their support for him in the general election was
not based as much on policy as personality.
So it should be no surprise that Obama's
series of head-spinning reversals so far have been met not with outrage from
his supporters (fringe leftists excepted), but with glib rationalizations. His newfound vacillation about Gitmo and NSA surveillance, his flip-flop on withdrawing
from Iraq in 16 months, and his announced Cabinet appointments -- particularly
Gates and Clinton -- are not being criticized as betrayals, but lauded as
evidence that he is open-minded, adaptable, wise and, of course, presidential. He's facing nary a shred of accountability for
his anticipatory breaches of campaign promises. That old, left-wing community organizer Barack Obama has suddenly veered
toward the center, and his incoming administration is looking more and more
like the Daley Machine in
Socialism is defined as the stage in Marxist-Leninist theory
between capitalism and communism. Under the textbook definition of socialism, the
proletariat has not yet achieved a dictatorship allowing for collective
ownership of the economy. Meanwhile, in
communism, the economy is state-controlled and state-planned. An authoritarian
party often calls the shots, promising a future utopia in which property will
be shared equally by the people. Under
the Communist model, workers put aside their selfishness for the improvement of
all. However both Socialist and
Communist economic theories are based on people working. Our hypnotic
fixation on change, on action to transform this in the world or that in the
world is bound to lead not to the feeding of our real needs but rather to
temporary fix of a heroin addict. Every monster of the last century which gave
birth to an ugly new state (Mussolini, Lenin, Mao, Hitler, Castro)
promised above all action, change, progress. Change for the sake of Change is
destruction of value, which is why Marxist regimes were so enamored with
permanent revolution, because the goal of Marxism and other variations of the
same disease change society by making new miseries to justify an addiction to
the narcotic of power. The National Bureau of Economic Research (NBER) has declared
Hasn’t the financial bailout sobered us about “throwing good money after bad” to solve economic problems that the free market will solve unimpeded by government intervention? There is a fitting symmetry about this financial crisis with a government-induced crisis receiving a government-insured resolution. The actual causes of our financial troubles were unusual monetary policy moves and novel federal regulatory interventions. Poorly chosen public policies distorted interest rates and asset prices, diverted loanable funds into the wrong investments, and twisted normally robust financial institutions into unsustainable positions. We can group most of the unfortunate policies under two main headings: (1) Federal Reserve credit expansion that provided the means for unsustainable mortgage financing, and (2) mandates and subsidies to write riskier mortgages. The excesses of Freddie Mac and Fannie Mae are being mopped up by huge federal spending, made all the more massive by all the reckless endeavors of the politicians, the regulators and the financiers who frivoled with the intemperance of Freddie and Fannie. The federal government is going for broke in an attempt to avert the type of calamitous financial collapse that led to the Great Depression. No one would fault the objective, but throwing money at the problem is becoming an end in itself. Moves to stabilize the system this year have put Americans in harm’s way from possible losses on nearly $8 trillion pledged in loans, guarantees and investments to financial firms. Even, as the rescue tab rises, taxpayers are not being adequately informed or protected. In all their reporting of how the sub-prime mortgage meltdown purportedly triggered the financial industry collapse, the MSM uttered hardly a word about Barney Frank and Gang’s push for financial institutions to provide mortgages to the woefully unqualified. Nobody mentioned the Clinton Administration’s push for home ownership as a God-given right to be facilitated at any cost, let alone the years of criminal conspiracy and obscene executive compensation at Fannie and Freddie. There is as yet no effort to deal effectively with the underlying causes of the problem, especially mass mortgage defaults that feed bank losses. Government officials seem to think urgency to act absolves them from considering the longer-term implications of the actions they take. TARP was originally sold to Congress as a mechanism for buying toxic securities, but subsequently changed to provide direct capital injections to financial institutions. Then there was discussion of not spending part of TARP until the new Administration took office, followed shortly by a decision to spend a large chunk of the remaining funds to rescue Citigroup by guaranteeing billions of dollars of losses on toxic assets. Now the focus has apparently shifted to helping the non-bank financial sector, with last week’s announcement that $20 billion in TARP funds will be deployed to support a new Federal Reserve liquidity facility for consumer asset-backed paper. Changing conditions can require agility in policymakers’ responses. However, the seemingly ad hoc implementation of TARP has led many to wonder if uncertainty is being added to markets at precisely the time when they are desperately seeking a sense of direction. It has also intensified widespread skepticism about TARP among taxpayers, and prompted misgivings even among some who originally greeted the demands for the program's creation with an open mind. Last week’s plan from the Federal Reserve to jump-start mortgage lending also falls short because even if it loosens credit, it will do little to stem foreclosures. Most of the defaults that are destabilizing the system do not result from the loans that the Fed has targeted, as if the Fed, fixated on the flames of a fire, is ignoring the fire’s fuel source. Another danger is that in fighting today’s crises, the government is teeing up the next one. Auto company CEOs subjected themselves to “symbolic water-boarding” this week by requesting their own bailouts of $33 billion (or is it really $75 billion or $125 billion?), understanding that Congress will pretend they are reluctant. The remedy for private business mistakes is bankruptcy. The remedy for the mistaken government monetary and regulatory policies that have produced the current financial train wreck is to identify and undo policies that distort housing and financial markets, and dismantle failed agencies whose missions require them to distort markets. To finance the bailouts, the Treasury is borrowing money and the Fed is printing it. That bodes ill for a heavily indebted nation, presaging higher interest rates and higher prices. As our government moves to spend trillions, taking the unprecedented step of nationalizing the country’s consumer debt, it shouldn’t be lost on us that this crisis didn’t need to happen. What could have been a mild recession isolated largely in the housing and financial sectors of the economy has morphed into a full-blown economic tsunami. President-elect Obama, who says he is modeling himself after Franklin Roosevelt, may follow in FDR’s exact footsteps and may turn his recession into a decade-long “great depression.”
If you are sick and tired of government and politics as usual, read my web site with its individual issue analysis and recommendations at: http://www.returntocommonsensesite.com Remember this site is updated every Saturday. Individual issue updates this week include:
- Foreign Aid at http://www.returntocommonsensesite.com/fp/aid.html
Middle Eastat http://www.returntocommonsensesite.com/fp/middleeast.html
This Week’s Best Articles:
“Obama Personnel Picks Reflect Chump Change”
“Obama on the ‘urgency’ of combating ‘global
warming’” by Viscount Munckton of Brenchley dated
Health Care Possibilities” by Tony Blankley dated
“The Gravest Threat to Obamaland:
Disillusionment” by Kyle-Anne Shiver dated
- “Obama’s Grand Experiment: Global
Warming Cap-and-Trade Policy” by Tom Borelli dated
November 29, 2008published by Town Hall at http://townhall.com/Columnists/TomBorelli/2008/11/29/obama%e2%80%99s_grand_experiment_global_warming_cap-and-trade_policy .
“Bailing Away” dated
“The Blood of Patriots and Tyrants” by JB
“When the Warmest in History Isn’t” by Debra
- “Formula for GOP
recovery: traditional values PLUS limited government” by Star Parker dated
December 1, 2008published by Town Hall at http://townhall.com/columnists/StarParker/2008/12/01/formula_for_gop_recovery_traditional_values_plus_limited_government .
Nuisances” by Emmett
December 1, 2008 published by Town Hall at http://townhall.com/columnists/EmmettTyrrell/2008/12/01/public_nuisances
Fail to Connect Dots on Bailout” dated
December 1, 2008published by Town Hall at http://townhall.com/columnists/DanKennedy/2008/12/01/media_fail_to_connect_dots_on_bailout .
by Nathan Tabor dated
December 1, 2008published by Town Hall at http://townhall.com/columnists/NathanTabor/2008/12/01/obama-economics .
Change is Coming” by Michael Reagan dated
December 1, 2008published by Human Events at http://www.humanevents.com/article.php?id=29698 .
Obama Turn a Recession into a Depression?” by Christopher Ruddy dated
December 1, 2008published by News Max at http://www.newsmax.com/ruddy/obama_recession_economics/2008/11/30/156592.html .
- “How Do We
Start Growing Again?” by John Tamny dated
December 1, 2008published by Forbes at http://www.forbes.com/opinions/2008/11/30/productivity-stimulus-growth-oped-cx_jt_1201tamny.html .
“What Really Happened?” by Lawrence H.
“How To Right The GOP” by Charlie Cook
“NBER’s Anomalous Recession Calls” by Randall Hoven dated
“Products that Nobody Wants” by Randy Fardal dated
“A Hillary in Your Cabinet” by Emmett
“No Left Turns on the War?” by Jacob Laksin dated
Bailout: ‘What is the Exit strategy?’ House Republicans Ask” by Susan
December 4, 2008published by Cybercast News Service at http://www.cnsnews.com/public/content/article.aspx?RsrcID=40284 .
- “From the
Horse’s Mouth” by Melanie Phillips dated
December 4, 2008published by The Spectator at http://www.spectator.co.uk/melaniephillips/3064406/from-the-horses-mouth.thtml .
- “What the Obama Cult Factor Portends” by David Limbaugh
December 5, 2008published by Town Hall at http://townhall.com/columnists/DavidLimbaugh/2008/12/05/what_the_obama_cult_factor_portends .
Foolish Infatuation with Change” by Bruce walker dated
December 6, 2008published by American Daily at http://www.americandaily.com/article/23684 .