Posts Tagged ‘TARP’

Why I Call Obama A Fascist

April 25, 2011

I rather routinely call Obama the F-word.  No, not that F-word (although the ability to resist doing so is dwindling); the other F-word: Fascist.  Barack Obama is a fascist.

I have had quite a few liberals fixate on this word, and – while ignoring the rest of my arguments – proceed to give me a lecture about how my extremism undermines my positions and arguments (which they don’t bother to consider).

I’d like to respond to that.  At length.

There are many who would argue that if a politician is not as rabid as Adolf Hitler, that one cannot use this label of “fascist” – at least not unless the target is a Republican (see below).  Barack Obama is not a “dictator,” these would argue.  He hasn’t launched the world into global war and he hasn’t murdered 6 million Jews (at least, he hasn’t yet).  So he can’t be a “fascist.”  This argument fails on two parts.  First of all, by such a metric, Benito Mussolini wouldn’t be a “fascist” either (except for the “dictator” part).  One of the reasons it is hard to have an easy definition of “fascist” is because fascism has taken a different character in every country and culture in which it has been embraced.  Hitler is not the norm or standard of fascism; he is merely the most extreme example of its virulence and danger.  Secondly, even if we were to take a Hitler as our example, let us realize that Adolf Hitler was a very cunning politician who managed to gain power in a Germany that was THE most sophisticated, educated and scientific nation and culture of its day.  What I am asserting is that if an Adolf Hitler were to run for the presidency of the United States in 2012, he would run a platform that we could very easily label as “hope and change,” he would demagogue his adversaries as being the cause for the nation’s plight, he would lie both cynically and outrageously to win votes and he would then proceed to push the country as far as he possibly could toward his agenda.  And so here, from the outset, I am claiming that the suggestion that either Barack Obama or anyone else does not qualify as a “fascist” simply because he or she can’t be directly compared to Adolf Hitler is nothing but a straw man.

The question thus becomes, what is fascism, and then it is what is Obama steering us toward?

Before I answer that, allow me to respond to liberals who denounce me for using the label “fascist” to describe Obama by pointing out that when liberals point a finger at me for denouncing Obama as a fascist, three fingers are pointing back at them.  And frankly a lot more than just three fingers.  Oh, yes, a WHOLE lot more.

Got Oil? Pictures, Images and Photos

Allow me to simply quote a self-described leftist socialist (i.e., “Socialist Worker”) for a rather blanket and categorical admission:

THE WORD “fascism” is used broadly on the left as a term of abuse. Sometimes it is used to refer to any repressive government, whatever its political form. Most commonly on the left in the U.S., it is used to describe any Republican government–in particular, any Republican government or candidate on the eve of a presidential election.

As an experiment, I typed the words “Bush fascist” and then “Obama fascist” sans quotes.  I got 3,280,000 Google hits for Bush fascist (and keep in mind an awful lot of hits would have vanished in the last 11 years as domains purged articles or simply ceased to exist) versus only 2,490,000 for Obama.  That means liberals were over 45% more likely to call Bush a fascist than conservatives have been to call Obama one.

And when these liberals express their outrage that I would dare call Obama a fascist and thus lower the discourse, I invariably ask them just where the hell they were when their side was teeing off on Bush for eight unrelenting years of Bush derangement syndrome???  It was rare indeed to see a liberal excoriate his fellow liberals for demonizing the president of the United States.

With all due respect, the left started this form of “discourse.”  They turned it into an art form.  And how dare these hypocrites dare to tell me not to do unto Obama as they did unto Bush???

That might only be a rhetorical argument, as two wrongs clearly don’t make a right.  But it remains a powerful one.  Liberals have forfeited any moral right to criticize conservatives for using their own tactics against them.

But I don’t simply call Obama a fascist because liberals called Bush one.  I call him one because he has exhibited all kinds of fascistic tendencies, which I shall in time describe.

Allow me to first correct a common leftist-spread misconception of fascism by again citing the above “Socialist Worker” article:

But fascism has a far more precise definition. Historically, fascism is a far-right movementof the middle classes (shopkeepers, professionals, civil servants) who are economically ruined by severe economic crisis and driven to “frenzy.”

In the brilliant words of Leon Trotsky, fascism brings “to their feet those classes that are immediately above the working class and that are ever in dread of being forced down into its ranks; it organizes and militarizes them…and it directs them to the extirpation of proletarian organizations, from the most revolutionary to the most conservative.”

I have no doubt that the irony of these words were entirely lost to the “Socialist Worker” who wrote the article.  But allow me to illuminate it for you: think of the most infamous fascists of all time, the Nazis.  What did the word “Nazi” stand for?  It was the “acronym for the ‘National Socialist German Workers Party’.”  Let me try that again, just in case you missed these precious little details: “National SOCIALIST German WORKERS Party.”

But ask the “Socialist Workers” and they’ll assure you that the “Socialist Workers Party” had absolutely nothing whatsoever to do with Socialist WorkersBecause that would certainly be awkward, wouldn’t it???

I point out in a rigorous way more than once in my writings that fascism came squarely out of the leftist intellectual tradition.  I have a three-article series different from that article which details how many of the ideological presuppositions of progressive postmodernism invariablylead to fascism, and have dealt with the subject multiple times to document the Nazi fascist citing the same leftist intellectuals (Heidegger, Nietzsche) that the modern leftist intellectuals routinely cite.

It is rather fascinating that “Socialist Worker” would cite as his authority on fascism and who should be labeled as a “fascist” the Marxist thinker .  Allow me to provide one counter statement which is based not on the “brilliant words” of a Marxist, but on the plain simple facts:

“Part of the problem in recognizing fascism is the assumption that it is conservative.  [Zeev] Sternhell has observed how study of the ideology has been obscured by “the official Marxist interpretation of fascism.”  Marxism defines fascism as its polar opposite.  If Marxism is progressive, fascism is conservative.  If Marxism is left wing, fascism is right wing.  If Marxism champions the proletariat, fascism champions the bourgeoisie.  If Marxism is socialist, fascism is capitalist.

The influence of Marxist scholarship has severely distorted our understanding of fascism.  Communism and fascism were rival brands of socialism.  Whereas Marxist socialism is predicated on an international class struggle, fascist national socialism promoted a socialism centered in national unity.  Both communists and fascists opposed the bourgeoisie.  Both attacked the conservatives.  Both were mass movements, which had special appeal for the intelligentsia, students, and artists, as well as workers.  Both favored strong centralized governments and rejected the free economy and the ideals of individual liberty.  Fascists saw themselves as being neither of the right nor the left.  They believed that they constituted a third force synthesizing the best of both extremes” [Gene Edward Veith, Jr., Modern Fascism: Liquidating the Judeo-Christian Worldview, p. 26].

So depending on Leon Trotsky or any other Marxist-inspired academic who merely parrots “the official Marxist interpretation of fascism” has rather serious intellectual drawbacks.  And yet that is largely what we get.  Far too many American academics wouldn’t be so obvious as to use the phrase, “In the brilliant words of Leon Trotsky,” but they give his ideas, theories and talking points total credence, nonetheless.  The term “useful idiots” was literally coined to describe these Western “intellectuals.”  And their being “useful idiots” is every bit as true today as it ever was in the past.

Consider the REAL “polar opposite”: American conservatives are capitalists, not socialists.  They demand a limited national/federal government, not a massive centrally planned state as does socialism, communism and fascism.  They prefer the federalist idea of powerful states’ rights against a weakened federal government, not some all-powerful Führer.  And to try to force conservatives into some Nazi mold invariably means either creating straw men arguments or citing irrelevant facts (such as that conservatives favor a large military just like the Nazis did, as though virtually every single communist state does not similarly favor a large military “just like the Nazis did”).  If you want an all-powerful national government that gets to decide who wins and who loses, if you want to see a system where you have to come to your government for assistance and resources with all manner of strings attached rather than being allowed to depend on yourself, your family and your community, you should embrace the political left, not the right.

By the way, another favorite idiotic red herring for liberals asserting that “Nazism was right wing” was that the Nazis hated the admittedly left wing communists.  But consider the fact that Coke hates Pepsi and Barbie Doll makers hate Bratz Doll makers.  Are we supposed to believe that Coke is the opposite of Pepsi as opposed to water, milk or orange juice?  The fact of the matter is that Nazis and Soviet Communists hated each other because both movements had a global agenda of totalitarian dominion, and both movements were competing for the same rabidly left wing converts.

Pardon me for the following insult, but the only people who believe garbage arguments like these are ignorant fools who live in a world of straw men.  Even if they have the title “PhD.” after their names.

It is for that reason that I can state categorically that Marxism and fascism are not “polar opposites” at all.  They are merely two potentially complementary species of socialism.  That is why China has been able to easily weave blatantly fascistic (national socialist/corporatist) elements into its Maoist communism.  It is also why Joseph Stalin was able to go from being an international socialist (i.e. a communist) and then appeal to nationalism (i.e., national socialism or “fascism”) when he needed to fight Hitler, only to switch back to “international socialism” after the war, as a few lines from Wikipedia on “Russian nationalism” point out:

The newborn communist republic under Vladimir Lenin proclaimed internationalism as its official ideology[4]. Russian nationalism was discouraged, as were any remnants of Imperial patriotism, such as wearing military awards received before Civil War….

The 1930s saw the evolution of the new concept of Soviet nationalism under Joseph Stalin, based on both Russian nationalism and communist internationalism. Official communist ideology always stated that Russia was the most progressive state, because it adopted socialism as its basis (which, according to the writings of Karl Marx, is the inevitable future of world socio-economic systems). Under Lenin, the USSR believed its duty to help other nations to arrange socialist revolutions (the concept of World Revolution), and made close ties with labor movements around the world[4].

[...]

The Soviet Union’s war against Nazi Germany became known as the Great Patriotic War, hearkening back to the previous use of the term in the Napoleonic Wars. The Soviet state called for Soviet citizens to defend the ‘Motherland’, a matrilineal term used to describe Russia in the past.

[...]

In 1944, the Soviet Union abandoned its communist anthem, The International, and adopted a new national anthem which citizens of the Soviet Union could identify with.

And then, with the victory secured over fascism, the Stalinist “national socialism” (a.k.a. “fascism”) suddenly became international socialism again.  The Nazis’ very name was Nationalsozialistische.

One can be a “Marxist-fascist” and combine and blend elements of both totalitarian socialist systems quite easily, as both the Russian and then the Chinese communists proved.  Communism and fascism have far more in common with one another than they have in opposition; especially when you examine the fact that both political systems invariably end up becoming the same big-government totalitarian police state.

So for my first two points – namely that 1) the left has routinely demagogically labeled the right “fascist” even when 2) it is clearly the left that owes far and away the most to fascistic elements – I am going to continue to shout from the rooftops who are the real fascists in America.

That said, it is still not enough to merely point out the FACT that American liberalism has much in common with fascism.  And there is a lot more yet to say.

Before I begin spouting particular examples, I therefore need to further approach just what it is that would constitute a “fascist.”  And then see who and how the label fits.  From The Concise Encyclopedia of Economics:

The best example of a fascist economy is the regime of Italian dictator Benito Mussolini. Holding that liberalism (by which he meant freedom and free markets) had “reached the end of its historical function,” Mussolini wrote: “To Fascism the world is not this material world, as it appears on the surface, where Man is an individual separated from all others and left to himself…. Fascism affirms the State as the true reality of the individual.”

This collectivism is captured in the word fascism, which comes from the Latin fasces, meaning a bundle of rods with an axe in it. In economics, fascism was seen as a third way between laissez-faire capitalism and communism. Fascist thought acknowledged the roles of private property and the profit motive as legitimate incentives for productivity—provided that they did not conflict with the interests of the state.

[...]

Mussolini’s fascism took another step at this time with the advent of the Corporative State, a supposedly pragmatic arrangement under which economic decisions were made by councils composed of workers and employers who represented trades and industries. By this device the presumed economic rivalry between employers and employees was to be resolved, preventing the class struggle from undermining the national struggle. In the Corporative State, for example, strikes would be illegal and labor disputes would be mediated by a state agency.

Theoretically, the fascist economy was to be guided by a complex network of employer, worker, and jointly run organizations representing crafts and industries at the local, provincial, and national levels. At the summit of this network was the National Council of Corporations. But although syndicalism and corporativism had a place in fascist ideology and were critical to building a consensus in support of the regime, the council did little to steer the economy. The real decisions were made by state agencies such as the Institute for Industrial Reconstruction (Istituto per la Ricosstruzione Industriale, or IRI), mediating among interest groups.

[...]

Mussolini also eliminated the ability of business to make independent decisions: the government controlled all prices and wages, and firms in any industry could be forced into a cartel when the majority voted for it. The well-connected heads of big business had a hand in making policy, but most smaller businessmen were effectively turned into state employees contending with corrupt bureaucracies. They acquiesced, hoping that the restrictions would be temporary. Land being fundamental to the nation, the fascist state regimented agriculture even more fully, dictating crops, breaking up farms, and threatening expropriation to enforce its commands.

Banking also came under extraordinary control. As Italy’s industrial and banking system sank under the weight of depression and regulation, and as unemployment rose, the government set up public works programs and took control over decisions about building and expanding factories. The government created the Istituto Mobiliare in 1931 to control credit, and the IRI later acquired all shares held by banks in industrial, agricultural, and real estate enterprises.

The image of a strong leader taking direct charge of an economy during hard times fascinated observers abroad. Italy was one of the places that Franklin Roosevelt looked to for ideas in 1933…

Jonah Goldberg is all over FDR and other leftist American leaders from Woodrow Wilson to Hillary Clinton in their quasi-embrace of fascism in his excellent book Liberal Fascism: the Secret History of the American Left from Mussolini to the Politics of Meaning.

Fascism is all about the “community,” not the individual.  Its message is about the good of the nation, or the people (or the Volk), or the community, rather than the good of a nation’s individual citizens.   It is about distributing and then redistributing the wealth and returning it to “its rightful owners” under the guise of an all-powerful state rather than recognizing and rewarding individual achievement.  In short, when Hillary Clinton explained that, “It takes a village,” an educated Nazi would have snapped his fingers and excitedly shouted, “Ja!  JA!  Das ist ES!”

For Obama, the collectivism, community or “village” thing is such a profound part of him that he has literally made it an integral part of his very heretical form of “Christianity,” which very much stresses individual salvation and individual responsibility.  Obama has on several occasions put it this way:

For example, in 1995, Obama said, “my individual salvation is not going to come about without a collective salvation for the country …” and again in May of 2008, “our individual salvation depends of collective salvation.”

In the Christian faith, there is no such thing as collective salvation.  Salvation is an individual choice.  It is personal acceptance of Jesus as savior, Son of the living God.

Obama’s is a wildly perverted view of orthodox Christianity.  It so distorts true Christianity at such a fundamental level, in fact, that one literally has to go to Hitler to find a suitable similar parallel from a “Christian” national leader.  The great Protestant Reformer Martin Luther – the most famous German prior to Hitler – had written the most monumental text of German culture prior to Hitler’s Mein Kampf.  It was called “The Bondage of the Will,” which was considered THE manifesto of the Reformation.  According to Luther, the human will was in bondage to sin.  The fallen will, if left to itself, will choose what is evil.  The human will has been perversely set against the righteous will of God.  For sinful human beings, the will is not in a state of liberty but is in bondage to its worst impulses.  Luther wrote in this work, “When our liberty is lost we are compelled to serve sin: that is, we will sin and evil, we speak sin and evil, we do sin and evil.”  Adolf Hitler infamously turned that key doctrine of Christianity on its head in his “The Triumph of the Will,” in which he exalted depraved human will to an altogether different level of human depravity.  Which is to say that Hitler was so profoundly wrong that he proved Luther right.

On a regular basis, I witness liberals so utterly butcher Christianity that I can only shake my head and think back to the Nazis butchering of Christianity.  In the case of the Nazis, it led to the murder of 6 million Jews.  In the case of American liberals, it has so far led to the murder of 53 million innocent human beings in the abortion mills.  And just to make that association between abortion and progressivism all the more crystal clear, Margaret Sanger – the patron saint of progressivism – was a Nazi sympathizer, even as the Nazis were huge fans of Sanger’s work in racist eugenics.  And then I contemplate Obama’s own documented position of literally supporting infanticide, and you wonder why I call him a fascist?

But getting back to Obama’s profoundly anti-Christian concept of  “collective salvation,” the Nazis would have been all over that, enthusiastically shouting their agreement, “Ja!  JA!  Das ist ES!”  Recall the encyclopedia entry on fascism stating that, “Fascism affirms the State as the true reality of the individual,”  which was then further defined as “collectivism.”  And the Nazis repeatedly called upon loyal Germans to make horrendous sacrifices in the name of that collective.

As I point out in a response to a comment in an article I wrote, the Nazis were ALL about that, “It takes a village” and “collective salvation” stuff:

What the Nazis pursued was a form of anti-capitalist anti-conservative communitarianism encapsulated in the concept of Volksgemeinschaft, or “people’s community.”

From the Nazi Party Platform:

- The first obligation of every citizen must be to work both spiritually and physically. The activity of individuals is not to counteract the interests of the universality, but must have its result within the framework of the whole for the benefit of all Consequently we demand:

- Abolition of unearned (work and labour) incomes. Breaking of rent-slavery.

- In consideration of the monstrous sacrifice in property and blood that each war demands of the people personal enrichment through a war must be designated as a crime against the people. Therefore we demand the total confiscation of all war profits.

- We demand the nationalization of all (previous) associated industries (trusts).

- We demand a division of profits of all heavy industries.

- We demand an expansion on a large scale of old age welfare.

- We demand the creation of a healthy middle class and its conservation, immediate communalization of the great warehouses and their being leased at low cost to small firms, the utmost consideration of all small firms in contracts with the State, county or municipality.

- We demand a land reform suitable to our needs, provision of a law for the free expropriation of land for the purposes of public utility, abolition of taxes on land and prevention of all speculation in land.

- We demand struggle without consideration against those whose activity is injurious to the general interest. Common national criminals, usurers, Schieber and so forth are to be punished with death, without consideration of confession or race.

- We demand substitution of a German common law in place of the Roman Law serving a materialistic world-order.

- The state is to be responsible for a fundamental reconstruction of our whole national education program, to enable every capable and industrious German to obtain higher education and subsequently introduction into leading positions. The plans of instruction of all educational institutions are to conform with the experiences of practical life. The comprehension of the concept of the State must be striven for by the school [Staatsbuergerkunde] as early as the beginning of understanding. We demand the education at the expense of the State of outstanding intellectually gifted children of poor parents without consideration of position or profession.

- The State is to care for the elevating national health by protecting the mother and child, by outlawing child-labor, by the encouragement of physical fitness, by means of the legal establishment of a gymnastic and sport obligation, by the utmost support of all organizations concerned with the physical instruction of the young.

- We demand abolition of the mercenary troops and formation of a national army.

- We demand legal opposition to known lies and their promulgation through the press. In order to enable the provision of a German press, we demand, that: a. All writers and employees of the newspapers appearing in the German language be members of the race: b. Non-German newspapers be required to have the express permission of the State to be published. They may not be printed in the German language: c. Non-Germans are forbidden by law any financial interest in German publications, or any influence on them, and as punishment for violations the closing of such a publication as well as the immediate expulsion from the Reich of the non-German concerned. Publications which are counter to the general good are to be forbidden. We demand legal prosecution of artistic and literary forms which exert a destructive influence on our national life, and the closure of organizations opposing the above made demands.

Ah, yes, the Nazis had their “Fairness Doctrine” long before this current generation of liberals had theirs.

You read that Nazi Party Platform carefully, and you tell me if you see small government conservative Republicans or big government liberal Democrats written all over it.

Now, you read the Nazi Party Platform, and given what American liberals want and what American conservatism opposes, it is so obvious which party is “fascist” that it isn’t even silly. Then you ADD to that the fact that fascism and American progressivism (which is liberalism) were so similar that the great fascists of the age couldn’t tell the damn difference.

In another comment to another article, I established some of that long association that American liberal progressives have had with fascism:

Since you point out Nazism was fascist, let’s look at some history as to WHO was recognized as fascist in America.

Fascism sought to eliminate class differences and to destroy/replace capitalism and laissez-faire economics.

H.G. Wells, a great admirer of FDR and an extremely close personal friend of his, was also a great progressive of his day. He summed it up this way in a major speech at Oxford to the YOUNG LIBERALS organization under the banner of “Liberal Fascism”: “I am asking for a Liberal Fascisti, for enlightened Nazis.” He said, “And do not let me leave you in the slightest doubt as to the scope and ambition of what I am putting before you” and then said:

These new organizations are not merely organizations for the spread of defined opinions…the days of that sort of amateurism are over – they are organizations to replace the dilatory indecisiveness of democracy. The world is sick of parliamentary politics…The Fascist Party, to the best of its ability, is Italy now. The Communist Party, to the best of its ability, is Russia. Obviously the Fascists of Liberalism must carry out a parallel ambition on still a vaster scale…They must begin as a disciplined sect, but must end as the sustaining organization of a reconstituted mankind.”

H.G. Wells pronounced FDR “the most effective transmitting instrument possible for the coming of the new world order.” And of course, we easily see that the new world order Wells wanted was a fascist one. In 1941, George Orwell concluded, “Much of what Wells has imagined and worked for is physically there in Nazi Germany.”

It was from the lips of liberal progressive H.G. Wells that Jonah Goldberg got the title of his book, Liberal Fascism.  Goldberg didn’t just invent this connection: H.G. Wells flagrantly admitted it and George Orwell called him on it.  All Goldberg did was rediscover history that liberals buried and have used every trick imaginable to keep buried.

And as a tie-in to our modern day, who more than Barack Obama has been more associated with said FDR?

But let me move on to some real red meat.  In just what specific, concrete ways can I call Obama a fascist?

Well, to begin with, there is the signature achievement of his entire presidency, his national health care system (ObamaCare).  For liberals, it is nothing but the most bizarre coincidence that Nazi culture had a national health care system that was quite rightly considered the wonder of its day by socialists in America.  It is the most despicable of insults that Sarah Palin excoriated ObamaCare as “death panels” – even though it is more precisely a bureaucratic maze consisting of more like 160 separate death panels:

But the thing is that the Nazis’ national health care system very much degenerated into death panels on steroids.  It was through that national health care system that some of the most evil and vile decisions ever made in the history of the human race were made.

Do your own homework.  Research key ObamaCare figures such as Cass Sunstein, Ezekiel Emanuel and John Holdren.  Research policies such as the Complete Lives System and phrases such as “changes that are attenuated.”  Then consider the massive lies by Barack Obama and other key Democrats in pushing for a socialistic “single payer” system before claiming they hadn’t.  As for me, I consider both the socialized nationalized health care and the hypocritical lies and activities that were spread to push it quintessentially fascist.

John Holdren thought it was a good idea to impose forced abortions and mass sterilization to reduce the human population.  And Obama apparently said, “That’s the sort of outside-the-box fascistic thinking that I like.”  Incredibly, Obama actually made this guy his science czar. 

And the “czar” thing hits a very fascist nerve, too.  Obama has appointed 39 czars who are completely outside our Constitutional process.  Obama signed a budget bill into law that required him to remove these czars, but why would a fascist trouble himself with outmoded things like “laws”?  One of the enraged Republicans responded, “The president knew that the czar amendment was part of the overall budget deal he agreed to, and if he cannot be trusted to keep his word on this, then how can he be trusted as we negotiate on larger issues like federal spending and the economy.”  And of course, he’s right.

Then you’ve got an Obama bureaucrat named Cass Sunstein whose project is to continuously “nudge” us to make decisions we don’t want to make on the theory that people like him know better than the rest of us.  He gets to use all of the mountain of government regulations as his laboratory.  As the head of the Office of Information, he is able to “nudge” society via regulations that cost businesses $1.7 trillion a year - more than all U.S. business profits combined.  It’s largely a hidden tax by which one can impose an agenda that bypasses our Constitution and our Congress entirely.  Sunstein gets to tweak these regulations and mold them into his own image.  If Democrats had identified a Bush official using these tactics to shape opinions and control minds, they would have come utterly unglued.  And rightly so.

An example of quintessential fascism that might even be more significant than national health care is the takeover of the banking and financial system.  Since the encyclopedia article above references Mussolini’s fascist takeover of the banking system, let us consider Obama’s fascist takeover of the banking system.  We start with George Bush, who rather incredibly said, “I’ve abandoned free market principles to save the free market system.”  Which is akin to abandoning intelligence in order to be smart.  As part of this abandonment, George Bush pushed his $700 billion in TARP.  What is not so well-known is that Bush allowed Obama to use fully half of that money.  If you add that to the $3.27 TRILLION that Obama will spend on his so-called “stimulus,” as verified by the Congressional Budget Office, you are talking about a takeover of the economy and the financial sector never seen in American history.

But if that was fascistic, you aint seen nothin’ yet.  Obama and the overwhelming Democrat majority then proceeded to push for a massive totalitarian-style overhaul of the financial system in a move that was promised would prevent another collapse.  But 20/20 hindsight allows us to now see it the way the Washington Times did, as “Financial Fascism.”  That’s not such a bad title given that it underlines my point in two words. 

But why do I say it’s financial fascism in 20/20 hindsight?  Because of what we just learned: in spite of all the bogus lying promises and the massive takeover “for our own good,” Obama didn’t fix anything.  Instead he made it WORSE:

Financial System Riskier, Next Bailout Will Be Costlier, S&P Says
First Posted: 04/19/11 05:26 PM ET Updated: 04/19/11 06:00 PM ET

The financial system poses an even greater risk to taxpayers than before the crisis, according to analysts at Standard & Poor’s. The next rescue could be about a trillion dollars costlier, the credit rating agency warned.

S&P put policymakers on notice, saying there’s “at least a one-in-three” chance that the U.S. government may lose its coveted AAA credit rating. Various risks could lead the agency to downgrade the Treasury’s credit worthiness, including policymakers’ penchant for rescuing bankers and traders from their failures.

“The potential for further extraordinary official assistance to large players in the U.S. financial sector poses a negative risk to the government’s credit rating,” S&P said in its Monday report.

But, the agency’s analysts warned, “we believe the risks from the U.S. financial sector are higher than we considered them to be before 2008.”

Because of the increased risk, S&P forecasts the potential initial cost to taxpayers of the next crisis cleanup to approach 34 percent of the nation’s annual economic output, or gross domestic product. In 2007, the agency’s analysts estimated it could cost 26 percent of GDP.

Last year, U.S. output neared $14.7 trillion, according to the Commerce Department. By S&P’s estimate, that means taxpayers could be hit with $5 trillion in costs in the event of another financial collapse.

Experts said that while the cost estimate seems unusually high, there’s little dispute that when the next crisis hits, it will not be anticipated — and it will likely hurt the economy more than the last financial crisis.

So much for the massive and unprecedented fascist government takeover.

But even THAT isn’t all.  Let’s go back to TARP and Obama’s $350 billion.  Somehow that $350 billion got “leveraged” into $23.7 TRILLION:

Watchdog: TARP tab could hit $24 trillion

Think last year’s $700 billion Wall Street rescue package was beaucoup bucks to spend bailing out the nation’s floundering financial system? That’s chump change compared to what the overall price tag could be, a government watchdog says.

The inspector general in charge of overseeing the Treasury Department’s bank-bailout program says the massive endeavor could end up costing taxpayers almost $24 trillion in a worst-case scenario. That’s more than six times President Obama’s proposed $3.55 trillion budget for 2010.

Nobody here but us fascists.  And we sure aint talking.

Then there are other issues that the left usually uses to attack conservatives, such as racism.  Wasn’t Hitler a racist, just like conservatives?  The problem is, the liberals are as usual upside-down here.  After running as the man to create racial harmony, Barack Obama has instead done more to racially polarize America than any president since other famous progressives such as Woodrow Wilson and FDR.  Frankly, if one were to conduct a major study of racial politics, and the setting up in opposition of one racial group against another, just which party has emphasized race and race-baiting more? 

Allow me to quote myself:

I am beyond sick of this crap.  Where’s the CONGRESSIONAL WHITE CAUCUS that dedicates itself to securing political benefits for white people, and blacks be damned???  Where’s the NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF WHITE PEOPLE that is operating with prestige and acclaim???  Where are the HISTORICALLY WHITE COLLEGES AND UNIVERSITIES that exist to educate white students rather than black students???  Where’s the UNITED CAUCASIAN COLLEGE FUND that exists to give scholarships to white students for the sake of being white???  Where’s the NATIONAL WHITE CHAMBER OF COMMERCE to secure business opportunities for white people against black people???

Hey, let me ask a more compelling question, given the occupant of the White House: where’s the national major white politician who spent 20-odd years in a “church” that espoused a commitment to the white value system, which entails a commitment to the white community, a commitment to white self-determination, a commitment to the white family, a commitment to white education, a commitment to the white workforce, a commitment to the white ethic, a commitment to white progress, a commitment to support white institutions, and a commitment to pledge allegiance to all white leadership?

When was the last time a white conservative Attorney General bl about “my people”???  When was the last time Republicans dismissed a civil rights case against a white man because he was violating black people’s rights and that didn’t count???  When was the last time a high-ranking official in a Republican Justice Department instructing underlings to “never bring a lawsuit against a white”???

This racist, race-baiting bigoted crap has just gone on and on and on in this race-baiting – and yes, very fascist – administration.

And lo and behold, yet another über-über-leftist race group is threatening a race-riot to get what it wants or else as I write this (and yes, that German “ü” is there for a reason).

Hitler’s Jew-baiting was all about the idea that one race had taken over the culture, had the money and the power, and was using its influence to oppress the people in the banking system and anywhere else that mattered.  And Hitler’s constant screed was that Germany needed to confiscate the Jews’ wealth and then redistribute it.  With all respect, all the left has done is replace “Jew” with “Caucasian” and making the exact same claims.

And with all this hard-core racist demagoguing, I’m supposed to say that, “Oh, yes, it’s the conservatives who are guilty of demagoguing race”???  Seriously???

There is so much blatantly fascist garbage going on it will shoot right out of your eyes if you pay attention.  Just the other day (I am writing this on Thursday, April 21, but it will not be published until Monday), Obama announced that he is planning to go ahead with a regulation that will force businesses involved in government contracts – but not unions or other key Obama allies – to disclose their employees’ campaign contributions.  The fact that this fascist piece of legislation was so terrible that it failed to pass in the Senate by a wide margin even though Democrats had a stranglehold in the Senate last year.  But what does democracy matter to a fascist?  What Obama is doing is taking a process that was devised to remove the politics from the government contract award process and make it ALL ABOUT paying to play.  By forcing companies to demand of their employees who has given how much to which party, the administration can easily award contracts on the basis of which one gave Obama and Democrats more.

Then there is the lawsuit by the federal government that is trying to force Boeing to build its new facility in Washington state with union labor rather than allowing it to be free to build its plant in a right to work state like it has a right to do in any but a fascist state.  Again, I’m not scratching around for examples; this is just today’s news.

Also in the news today is Obama demagoguing the oil industry, which makes about 8% profit versus liberal Apple which has a 21.8% profit margin.  That’s getting dangerously close to 300% higher, but whose counting?  There’s no evidence whatsoever that anything illegal is actual going on, but that never stops a true fascist from demagoguing.  At least Apple probably pays taxes, unlike Obama’s very far left wing cronies at General Electric.  That company’s brown nosing business plan actually resulted in the corporation getting more money back from the government than it owed.  And meanwhile GE CEO Jeffrey Immelt is Obama’s star economic advisor – proving that fascism pays for companies that are willing to play ball with the Führer.  Again, this is all just yesterday’s news.

Can we talk about Libya?  Obama said, “The President does not have power under the Constitution to unilaterally authorize a military attack in a situation that does not involve stopping an actual or imminent threat to the nation,” when he had a chance to demagogue Bush over Iraq.  It didn’t matter that George Bush had congressional approval for his actions, Obama demonized him.  And now here he is, in Libya – a country that clearly wasn’t any kind of “imminent threat” to us, and which he had no congressional support to attack – and just does he not deserve to be impeached in disgrace by his own hypocritical and demagogic standard?

But there’s so much more to say about Libya and Obama’s entire foreign policy.  Think of how Obama demonized Bush, versus what he’s doing now:  Guantanamo Bay.  The Patriot Act.  Domestic Eavesdropping.  Rendition.  The Surge Strategy.  The Iraq War.  The Iranian Nuclear Threat.  Military Tribunals.  And, of course, “Air-raiding villages and killing civilians.”  It frankly isn’t nearly enough for me to simply claim that Barack Obama is a fascist.  Barack Obama is a fascist even according to Barack Obama.

What is most frightening about Obama’s bizarre policy on Libya is that it could apply to any country.  Or not.  There is absolutely no doctrine to warn one country or encourage another.  Other countries could use it to impose a no-fly zone here, if the “international community” wanted to do so.  Why don’t we now attack next-door Syria for shooting crowds of civilians?  Because we have a fundamentally incoherent policy that allows us to invade whoever we want.  And - disturbingly – the Arabs are pushing for the same standard Obama is applying to Libya to be applied in imposing a no-fly zone over Israel.  And Obama is willing to take his non-existant “standard” and play political games with it.  Let’s just call that quintessential fascism.

Obama has Samantha Powers (the wife of Cass Sunstein, the man who “nudges us”) close to him and advising him on matters of war.  According to the very liberal publication The Nation, “She began to see war as an instrument to achieving her liberal, even radical, values.”  What if you had an ultra conservative – oh, say a Sarah Palin – openly acknowledged to pursue war and risk American lives to advance her radical values???  What would the left call this if not “fascist”?

But it’s only fascist if Republicans do it, of course.

Also in yesterday’s news is the fact that Obama is the perpetual demagogue- which is a quintessentially fascist tactic.  Obama demonized Bush for trying to raise the debt ceiling until he needed to raise it.  Now it would be un-American for Republicans to act the same exact way Obama acted.  In the same demagogic spirit, Obama personally invited Paul Ryan to a speech just so he could personally demonize him.  The same Obama who lectured Republicans that it would be counter-productive to rely on name-calling and accusations in the health care debate launched into a vicious demagogic attack.  Ryan correctly said that “What we got yesterday was the opposite of what he said is necessary to fix this problem.  But that is par for the golf course for a fascist.  If that wasn’t enough, Obama held a White House conference for “stake holders” in the immigration debate and refused to invite a single governor from a border state.

I think of Obama demonizing Bush for trying to raise the debt ceiling, and then now demonizing Republicans who would even suggest opposing raising the debt ceiling.  That is simply raw fascist demagoguing.

It should simply leave you stunned. 

We could go back and review a lot of other corportist/fascist acts by Obama, such as what he imposed on Chrysler bondholders when he turned bankruptcy law on its head in order to punish his enemies and reward his friends.  We could look at how Obama basically did the same thing to General Motors bondholders.  We could look at how Obama turned fearmongering into an art form, and how he demonized industry after industry to impose his corporatist (as in “fascist”) control over them to force them to do his bidding.

And the thing about Obama and the Obama administration is that I could just go on and on and on.

Let’s go back to Obama’s college days, when he was a self-avowed Marxist  who made friends with all the Marxist professors (which again, is fascism’s kissing cousin).  He got his start in politics in William Ayers’ home - the Marxist terrorist bomber and leader of a terrorist group called the Weathermen.  Obama served on several boards with Ayers – and clearly FAR more than just rubbed elbows.  It should more than trouble you that a close associate of the president of the United States is an unrepentent terrorist who felt he didn’t bomb enough, and who once discussed murdering the 25 million capitalists who wouldn’t be suitably brainwashed in a future re-education camp.  You move on to membership in an un-American racist and Marxist church and a relationship with a demonic pastor and spiritual guide that lasted for 23 years.

A Republican equivalent would have had to come out of a deep involvement with some vile racist militia organization to approximate Obama’s background.  And liberals would rightly label such a politician a fascist for his past alone.

Recently, Obama’s incredibly close relationship with the SEIU enters the discussion as a very recently former top level SEIU official was just caught on tape plotting the financial implosion of the United States of America.  Given that Steven Lerner’s boss Andy Stern visited the Obama White House more times than anybody – and Stern himself liked to say, “We like to say: We use the power of persuasion first. If it doesn’t work, we try the persuasion of power”, and “workers of the world unite, it’s not just a slogan anymore” – we should simply start taking these people at their word and start calling them what they very clearly are.  And Obama is one of them.

Here’s a recent Youtube video of Obama’s key union allies on camera saying, “We’re not going to rely on the law,” and, “Forget about the law” as they seek to impose their unions basically whether workers want them or not:

And these radical fascist unions were talking about the vile crap that they pulled in Wisconsin and demanding a whole lot more of it.

That’s why I call Obama a fascist.  Because he is one, and if he could get away with it in America, he would be far more fascist than he already is.

Obama Stimulus Actually Raised Unemployment

February 25, 2010

An Investors.com article entitled The ‘Stimulus’ Actually Raised Unemployment should be required reading for every American:

By ALAN REYNOLDS Posted 02/19/2010

President Obama seized on the one-year anniversary of the American Recovery and Reinvestment Act (ARRA) as an opportunity to take credit for the belated and tenuous economic recovery.

But the economy always recovered from recessions, long before anyone imagined that government borrowing could “create jobs.” And we didn’t used to have to wait nearly two years for signs of recovery, as we did this time.

A famous 1999 study by Christina Romer, who now heads the Council of Economic Advisers, found the average length of recessions from 1887 to 1929 was only 10.3 months, with the longest lasting 16 months.

Recessions lasted longer during the supposedly enlightened postwar era, with three of them lasting 16 to 21 months.

Keynesian countercyclical schemes have never worked in this country, just as they never worked in Japan.

The issue of “fiscal stimulus” must not be confused with TARP or with the Federal Reserve slashing interest rates and pumping up bank reserves.

One might argue that those Treasury and Fed programs helped prevent a hypothetical depression, but it’s impossible to make that argument about ARRA.

The “fiscal stimulus” refers only to a deliberate $862 billion increase in budget deficits. Importantly, only 23% ($200 billion) was spent in 2009, with 47% in 2010 and 30% in later years (according to the Congressional Budget Office this January).

How could the initial $200 billion have possibly had anything to do with the 5.7% rise in fourth-quarter GDP?

The Keynesian fable presumes that faster federal spending and consumers spending their federal benefit checks were the driving forces in the rebound.

Yet the GDP report clearly said the gain “reflected an increase in private inventory investment, a deceleration of imports and an upturn in nonresidential, fixed investment that was partly offset by decelerations in federal government (defense) spending and in personal consumption expenditures.”

Since federal spending accounted for exactly zero of the only significant increase GDP, how could such spending possibly have “created or saved” 2 million jobs?

The bill was launched last year amid grandiose promises of “shovel ready” make-work projects.

In reality, as the CBO explains, “five programs accounted for more than 80% of the outlays from ARRA in 2009: Medicaid, unemployment compensation, Social Security … grants to state and local governments … and student aid.”

In other words, what was labeled a “stimulus” bill was actually a stimulus to government transfer payments — cash and benefits that are primarily rewards for not working, or at least not working too hard.

First of all, believe it or not, America actually recovered from every single recession in its history without Barack Obama.  And the longest recessions we’ve had have occurred during the period when elitist big government liberals were frantically pulling levers and pushing buttons.

UCLA economists have calculated that FDR’s policies actually prolonged the Great Depression by 7 years, a conclusion validated by Roosevelt’s own Treasury Secretary in his remarks to the House Ways and Means Committee:

“We have tried spending money.  We are spending more than we have ever spent before and it does not work.  And I have just one interest, and if I am wrong… somebody else can have my job.  I want to see this country prosperous.  I want to see people get a job.  I want to see people get enough to eat.  We have never made good on our promises…  I say after eight years of this Administration we have just as much unemployment as when we started… And an enormous debt to boot!” – Henry Morganthau, FDR’s Treasury Secretary, May 1939 (Morganthau Diary, May 9, 1939 entry, Franklin Presidential Library)

For the record, the unemployment rate the month before this mea culpa had been a sky-high 20.7%.  More than six years after FDR’s New Deal, more than 1 out of every five workers was unemployed.

Obama’s own expert (Christina Romer) pointed out that pre-FDR, pre-New Deal, pre-stimulus, and pre-Obama, recessions only lasted an overage of 1o.3 months.  This one’s going to last a helluva lot longer in the age of Obama.

The next thing to consider is that the $24 trillion in TARP and other federal programs makes the $862 billion Obama stimulus – with only some $200-plus billion having been spent so far – look laughably puny in comparison.  Obama’s claim that his stimulus saved the day is rather like the gnat telling the elephant, “I was pushing too.  And it was my efforts that saved the day, not yours.”

Obama’s claim is laughable.  And so is the mainstream media that has largely allowed Obama to continue making such a claim.

A third point is that it is simply a fact that all the Obama and Democrat claims of “shovel ready jobs” is just a lie.

From an Associated Press article:

Even within the construction industry, which stood to benefit most from transportation money, the AP’s analysis found there was nearly no connection between stimulus money and the number of construction workers hired or fired since Congress passed the recovery program. The effect was so small, one economist compared it to trying to move the Empire State Building by pushing against it.”

Which is to say, the only thing that was ever “shovel ready” about the stimulus was bull crap.  And the Democrats shoveled it high and deep.

Virtually all of the nowhere near 2 million jobs that were “saved or created” were government jobs.  And government jobs are parasitic upon the private sector which taxes PAY for those government jobs.  In other words, the government sector doesn’t produce; government jobs exist ONLY because of the productive output of the private sector, and the private sector taxes that provide the money for the government sector and all the bureaucrats on the payroll.

And what we have here is a case in which $862 billion plus interest has been sucked out of the private sector which actually creates the jobs that produce and given to the government.  Which means less wealth for the private sector.  Which means fewer private sector jobs.  Which means less productivity.  Which means lower tax revenues which fund the government payroll.

Which means we are in a vicious cycle.  Obama is going to need to keep borrowing to pay the government workers on the government payrolls, which means less money for the private sector, which means fewer private sector jobs and less private sector productivity, which means lower tax revenues, which means more borrowing to fund the government sector jobs.

Which is why “Keynesian countercyclical schemes have never worked.”

Let’s look at the gigantic mess that Obama left Illinois in as an example of why this crap doesn’t work, and how Illinois has an $85 billion black hole of unfunded public employee pension obligations which it can never possibly hope to repay.

First of all, the government has a way of rewarding itself at the expense of the private sector over and over again.  Thus:

“The level of pension benefits provided by the state’s plans generally exceeds those available in the private sector — i.e., available to taxpayers who pay the state’s bills,” the Commercial Club’s Martin contended in his report.

But at the same time government sector union benefits dwarf those of the private sector employees who pay for those massive benefits, another thing happens: the government, being an inherently amoral and short-sighted enterprise, can’t help but constantly rob Peter to pay Paul in a neverending attempt to eat their cake, and have it, too.  Hence the Pension Modernization Task Force investigating the black hole of Illinois pensions was forced to conclude:

“Not wanting to implement dramatic cuts in spending on essential services, the legislature and various governors elected to instead divert revenue from making the required employer pension contribution to maintaining services like education, health care, public safety and caring for disadvantaged populations,” the center argued. “Effectively, the state used the pension systems as a credit card to fund ongoing service operations.”

Which is to say that first the government makes impossible promises, and then it engages in unsustainable and frankly insane policies to play their equivalent of budgetary Whac-a-Mole in order to juggle all the impossible competing spending priorities they’ve been insane enough to commit themselves to.

Which is exactly what happened in the case of the Obama stimulus.  It was advertised as a “shovel-ready” package to create jobs, but instead it was “actually a stimulus to government transfer payments — cash and benefits that are primarily rewards for not working, or at least not working too hard.” And so money that was supposed to fund job creation instead went almost entirely to “Medicaid, unemployment compensation, Social Security … grants to state and local governments … and student aid.”

And jobs got sucked out of the economy.

To the extent that the Obama stimulus actually did any good, any benefit will be entirely consumed by the far greater harm it will do to the economy shortly down the road.

Fortunately, the claims that the Obama administration and the Democrat Party have made have been so inherently contradictory and so over-the-top fallacious that only six percent of Americans believe that Obama’s stimulus has created any jobs at all thus far.

The Truth About Obama’s Bogus Claim Of Inheriting A $1.3 Trillion Deficit

February 3, 2010

Here’s Dick Morris setting the record straight on Obama’s fallacious claim that he “inherited” a $1.3 trillion deficit from George Bush:

BEHIND OBAMA’S PHONY DEFICIT NUMBERS
By Dick Morris
02.1.2010

President Obama was disingenuous today when he said that the budget deficit he faced “when I walked in the door” of the White House was $1.3 trillion. He went on to say that he only increased it to $1.4 trillion in 2009 and was raising it to $1.6 trillion in 2010.

As Joe Wilson said “you lie.”

Here are the facts:

In 2008, Bush ran a deficit of $485 billion. By the time the fiscal year started on October 1, 2008, it had gone up by another $100 billion due to increased recession-related spending and depressed revenues. So it was $600 billion. That was the real Bush deficit.

But when the fiscal crisis hit, Bush had to pass TARP in the final months of his presidency which cost $700 billion. Under the federal budget rules, a loan and a grant are treated the same. So the $700 billion pushed the deficit — officially — up to $1.3 trillion. But not really. The $700 billion was a short term loan. $500 billion of it has already been repaid.

So what was the real deficit Obama inherited? The $600 billion deficit Bush was running plus the $200 billion of TARP money that probably won’t be repaid (mainly AIG and Fannie Mae and Freddie Mac). That totals $800 billion. That was the real deficit Obama inherited.

Then…he added $300 billion in his stimulus package, bringing the deficit to $1.1 trillion. And falling revenues and other increased welfare spending pushed it up to $1.4 trillion.

So, effectively, Obama came close to doubling the deficit.

His program of fiscal austerity in this new budget is a joke. If he wanted to lower the deficit, here’s what he could do:

1. Cancel the remaining $500 billion of stimulus spending and

2. Cancel the $300 billion of spending in stimulus II.

Presto! The deficit is cut in half.

Those are the real numbers.

And for the record, it becomes impossible to blame Bush OR Republicans for the 2008 fiscal year spending that occurred in 2009 for the simple fact that Republicans OPPOSED that spending virtually unanimously.

This is part of the slimey lies that characterize Barry Hussein.

But there’s more.  While blaming Bush for that $500 billion of TARP money that has been repaid, Obama wants to take it and use it for more of his own projects.

That money has been repaid.  You can’t put it on Bush’s tab, demonize him for it, and then break the law by refusing to put it back into the Treasury and pay down the debt.

So Obama is – once again – a liar.  He doesn’t WANT to return that TARP money which should legally be used to pay down the deficit because then he 1) couldn’t demonize Bush for the “$1.3 trillion dollar deficit” that he really didn’t inherit from Bush; and 2) couldn’t use that money – that BUSH money – for his own political ends.  While continuing to blame Bush for it.

That’s just dishonest.

I might point out that Bush’s TARP bank bailout plan failed the first vote as REPUBLICANS voted against it.

But there’s more to it than that.  A discussion on Sayanythingblog begins to reveal more than Obama wants you to know:

The last budget approved by a Republican Congress and a Republican President was the 2007 one.  That turned in a deficit of about 160 Billion dollars.

The the Democrats took over Congress.  Obama and his cohorts tripled the deficit.

Then they tripled the deficit again for the 2009 (current year budget.)

In no way did Obama oppose these higher budget deficits.

I’m not giving Bush a free pass, but these deficits are Obama’s fault as much as anyone.

Here’s a dirty secret: Bush didn’t increase the deficit – the Democrats running Congress did that.  Under the separation of powers, Bush couldn’t spend a single dime unless Congress authorized him to spend it.  (Hint: that also explains why Clinton was able to provide a surplus: Republicans were in charge of Congress and FORCED him to be spendthrifty).

And so we come to the words of Rep. Jeb Hensarling, the senior Republican on the House Budget Committee.  He pointed out this little factoid that Democrats and their mainstream media allies don’t want you to know:

The old annual deficits under Republicans have now become the monthly deficits under Democrats:

In the 12 years that Republicans controlled the House, the average deficit was $104 billion (average of final deficit/surplus FY1996-FY2007 data taken from Table F-1 below).  In just 3 years under Democrats, the average deficit is now almost $1.1 trillion (average of final deficit/surplus FY2008 and 2009 data taken from Table F-1; FY2010 data taken from Table 1-3).  Source: CBO January 2010 Budget and Economic Outlook

In reality, Obama didn’t “inherit” anything: he personally voted for virtually all the spending under the Bush presidency that he is now whining about.  While he may have “inherited” it as president, he voted for it as senator.

So Obama is literally saying, “All that stuff that I voted for was all Bush’s fault.”

Obama Refuses To Take Any Responsibility For His Failing Presidency

December 10, 2009

There comes that moment in every great man’s life when he realizes that it’s time to put up or shut up.

Obama hasn’t reached that moment yet.  And I personally don’t believe he ever will.  Or even can.

Obama gave a speech at the Brookings Institute yesterday, December 8.  He said:

One of the central goals of this administration is restoring fiscal responsibility. Even as we have had to spend our way out of this recession in the near term, we have begun to make the hard choices necessary to get our country on a more stable fiscal footing in the long run. Despite what some have claimed, the cost of the Recovery Act is only a very small part of our current budget imbalance. In reality, the deficit had been building dramatically over the previous eight years. Folks passed tax cuts and expensive entitlement programs without paying for any of it – even as health care costs kept rising, year after year. As a result, the deficit had reached $1.3 trillion when we walked into the White House. And I’d note: these budget busting tax cuts and spending programs were approved by many of the same people who are now waxing political about fiscal responsibility while opposing our efforts to reduce deficits by getting health care costs under control. It’s a sight to see.

To begin with, sixty percent of the overall deficit from the last ten years has occurred during the last three year period that the Democrats have been in control of both the House and the Senate.  Any claim that Democrats were the fiscally responsible party is just frankly a complete lie.

And as we look to which party is accumulating debts that have never been seen in the history of the human species, take a look at this graph of reality, to the tune of Joe Wilson’s hit song, “You lie!”

Link

You don’t have to be an economist or financial expert to see that the Marxist red Obama bars utterly dwarf the gray Bush bars.

Let’s take a look at the real numbers:

The Obama Administration Budget released today contains a total $2.867 trillion in red ink, just 38 days after Obama’s inauguration on January 20.

In contrast, the Bush Administration ran up a $2.7519 trillion deficit over an 8-year period that included 7 years of war in Iraq and Afghanistan; the economic downturn after 9-11; the addition of a prescription drug benefit to Medicare; a massive increase in federal education spending under No Child Left Behind; and the current recession and 2008 Wall Street bailout.

Bush Surplus/Deficit Fiscal Years 2001-2008 (billions of dollars)
Congressional Budget Office (CBO) Statistics
2001    128.2
2002    -157.8
2003    -377.6
2004    -412.7
2005    -318.3
2006    -248.2
2007    -160.7
2008    -454.8
TARP    -750.0
Total  -2751.9

Obama Budget Deficit FY 2009/10*
Office of Management and Budget (OMB) Statistics
2010       -1750
2011       -1117
Total      -2867

*The Obama deficit total does NOT include the impact of the $787 billion Stimulus package approved by House Democrats in February.  It also excludes any effect of an Obama contingency request for an additional $750 billion to use for bank rescue.  If the contingency amount is included the total deficit for FY 2009/10 is $3.617 trillion

So what we basically learn is that Obama’s deficits in just two years are greater (which means worse) than Bush’s entire 8 years in office.  And if you factor in the spending that Obama racked up all by his lonesome, he accumulated greater deficits in just ONE year than did Bush in eight.

We need to realize that the $787 billion stimulus – which is not counted under Obama’s deficit that STILL outdoes the deficits racked up during Bush’s entire eight year presidency – was not a “mere” $787 billion.  It was actually $3.27 TRILLION according to the Congressional Budget Office.

As Newsmax reporter David Patton put it:

The gargantuan stimulus bill Congress has rubber-stamped with virtually no Republican support contains tens of billions of the very spending projects that made the legislation a lightning rod for criticism.

And although the bill is generally described as costing $787 billion, the Congressional Budget Office reports the actual figure is now closer to $3.27 trillion.

That stems from the $744 billion it will take to pay for the additional debt the legislation will create, and $2.527 trillion in increased spending from the new and expanded programs the bill will spawn over the next decade.

That put-us-into-the-poorhouse stimulus spending was ALL on Obama.  And while we go from fiscal year to fiscal year (i.e. October 1 to September 30) to “officially” calculate a president’s deficits, it is simply a moral crime to saddle George Bush with Obama’s $3.27 trillion porkulus that no Republicans voted for, and then blame Bush for the most massive spending program in human history that was passed by Obama and for Obama.

Nor do the numbers reflect that President Bush only used HALF of the $750 billion TARP money, and left the rest of it for Obama to spend.  That money all went on Bush’s deficit “tab,” but thanks to George Bush’s efforts, Obama got half of it for himself.  Pretty sweet deal for Obama.  And yet he still bit the hand that fed him:

(CBS/AP) Acting at Barack Obama’s behest, President George W. Bush on Monday asked Congress for the final $350 billion in the financial bailout fund, effectively ceding economic reins to the president-elect in an extraordinary display of transition teamwork.

Obama also sharply criticized Bush’s handling of the money and promised radical changes.

Bush’s move sets the stage for Obama to get swift access to the $350 billion and the opportunity to overhaul the much-criticized rescue package after taking office next Tuesday.

Bush’s classiness was outmatched by Obama’s classlessness.

In any event, no matter how you slice it, we are looking at Obama red ink that so profoundly drowns out the Bush red ink that only a fool would say anything else.

And yet that is precisely what Obama is doing.

Here we are, just today, with Democrats passing another $1.1 trillion in spending in a 1,088 page, earmark-laden pork package, with not one single Republican supporting it.

And they are determined to pass a health care that’s going to cost this country at least $2.5 trillion every ten years.

And take a moment to calculate America’s “share” of the $10 TRILLION dollar tab that Barack Obama and many in the Democrat Party are trying to commit this country to pick up in the guise of saving the planet from “global warming.”

We’re seeing more spending and more deficits and more debt under Barack Obama than any human being who has ever lived has ever seen in human history.  And he blames Bush for it?

What’s wrong with him?

Any real leader worth a dog turd in the back yard doesn’t waste time blaming the leader before him for problems.  Rather, he puts that “the buck stops here” sign on his desk, he takes responsibility for the situation he is facing, and he solves the problem.

If I had a nickle for every time Obama has said that he “inherited” the crises he is now facing, I would be very rich indeed.  As it is, the president who promised that he would put “an end to the petty grievances and false promises, the recriminations and worn-out dogmas that for far too long have strangled our politics” has defined himself by doing the precise opposite.  George W. Bush, by contrast, inherited a severe recession following the dot com bubble collapse beginning in December 1999 just as Clinton was leaving office that led to $10 trillion in equity being erased.  And of course he inherited the foreign policy and domestic security failures that led to the 9/11 attack – which damaged the economy even further.

But you didn’t find Bush giving speech after speech (or any speeches at all) blaming his predecessor.  Rather, Bush “manned-up” and took responsibility for the nation as it was.

That may be why Bush has made such a dramatic comeback in public opinion:

Perhaps the greatest measure of Obama’s declining support is that just 50% of voters now say they prefer having him as President to George W. Bush, with 44% saying they’d rather have his predecessor. Given the horrendous approval ratings Bush showed during his final term that’s somewhat of a surprise and an indication that voters are increasingly placing the blame on Obama for the country’s difficulties instead of giving him space because of the tough situation he inherited. The closeness in the Obama/Bush numbers also has implications for the 2010 elections. Using the Bush card may not be particularly effective for Democrats anymore, which is good news generally for Republicans and especially ones like Rob Portman who are running for office and have close ties to the former President.

More and more Americans are getting furious that Obama is spending all his time and energy blaming Bush for what is going on during Obama’s presidency.

The very real question is whether Obama can do anything OTHER than blame Bush.  Thus far, he hasn’t solved much of anything.

Obama Lowballs His Budget By $2 TRILLION, And You Trust Him On Health Care?

August 25, 2009

Hats off to the Gateway Pundit for punditry.  Following the Obama remark about people getting wee-weed up, GP pointed out that “It looks like Dear Leader was a wee bit off” with his budget.  To the tune of $2 trillion.  Which, clearly, really is something to get wee-weed up about.

WASHINGTON (Reuters) – The Obama administration will raise its 10-year budget deficit projection to approximately $9 trillion from $7.108 trillion in a report next week, a senior administration official told Reuters on Friday.

The higher deficit figure, based on updated economic data, brings the White House budget office into line with outside estimates and gives further fuel to President Barack Obama’s opponents, who say his spending plans are too expensive in light of budget shortfalls.

The White House took heat for sticking with its $7.108 trillion forecast earlier this year after the Congressional Budget Office forecast that deficits between 2010 and 2019 would total $9.1 trillion.

“The new forecasts are based on new data that reflect how severe the economic downturn was in the late fall of last year and the winter of this year,” said the administration official, who is familiar with the budget mid-session review that is slated to be released next week.

Well, at least they didn’t say, “Because of George Bush…” or “Due to the evilness of the Republicans’…”  So maybe they’re growing in maturity to match their skyrocketing deficits over at the White House.

Barack Obama is going to quadruple George Bush’s highest deficit ever – and that is if his other incredibly rosy projections (which continue chugging merrily along like a magic-powered choo-choo train) pan out.  Obama has demagogued and demonized Bush at every turn, but he can’t blame the boogeyman for his deficits.

It is simply a fact: Obama’s first-year deficit, the largest in history, is over four times bigger than George Bush’s last deficit of 2008, which HAD been the largest in history until Obama blew that record away as though it had never existed.  An American Thinker article demonstrates the massive cognitive dissonance of Democrats; they want to demonize Bush for his government spending even as they defend Obama’s FAR more massive government spending.  The Washington Examiner’s Byron York headline says it all: “Obama’s trillions dwarf Bush’s ‘dangerous spending.'”

Barack Obama underestimated his own spending deficit by $2 trillion; nearly 29% off in just six months.  That aint exactly good budgeting.  Rather, it is unprecedented BAD budgeting.  Obama had all kinds of bogus assumptions, fuzzy math, and rosy scenarios.  And the new $9-plus trillion figure doesn’t take into account all the other stuff that Obama is intending to do, such as spend well over a trillion more on his government health care takeover.

It’s frankly even worse than your very worst fears: Barack Obama’s 2009 deficit exceeds all 8 years of Bush red ink.

Let me put it this way: I have believed that Barack Obama would be the downfall of this country from the day I heard his reverend for 23 years shout, “No, no, no! Not God bless America — God damn America!!!” while Barack Obama’s fellow congregants leaped to their feet and cheered wildly.  I thought he would be a complete and unmitigated disaster – and I never dreamed he would do this much damage this quickly.

Speaking of terrible budget nightmares, Obama’s somehow transforming his “half” of the $700 billion Troubled Asset Relief Plan into $23.7 Trillion isn’t exactly great budgeting either.  Did somebody say we were supposed to stop spending after we got to $350 billion?  Oops.

Giving Obama’s liberals control of health care will be rather like giving Stalin’s Red Army control of Berlin; it just aint going to end well.

The CBO also has revised its figures from just five months ago upward by $2.7 trillion, pointing out that its earlier number didn’t include legislation since passed by the Democrat-controlled Congress.  The math is a mess; we literally cannot keep up with the frenzied pace of our own spending.

So when Democrats and liberals talk about the projected costs of health care, just realize that neither they, or the CBO – which at least usually TRIES to be accurate in its projections – have any credibility whatsoever.

Bob Franken hits it right on the money: The $9 trillion is the central figure in the health care debate.  You can watch the debt clock spiral up moment by terrifying moment for hours.

In another issue, Democrats have been mocking the word “death panel,” but…

… The whole damn SYSTEM is one great big giant death panel.  As well as being a gigantically expensive one.

If Democrats get control of health care, they will explode it with massive bureaucracy, they will have no choice but to ration health care, and people will die.

Grayson Grills Bernanke: ‘Where Did Our Half Trillion Dollars Go?’

August 5, 2009

Are you a C-SPAN addict?  Me neither.  It is the truly desperate soul who pauses during a channel surfing session on a C-SPAN channel of some boring Congressional proceeding.  Who wants to watch a bunch of arrogant stuffed-shirt elitists argue with one another in a series of one boring speech after another?

Ah, but every now and then something of significance actually happens – and when such a once-in-blue-moon event occurs – C-SPAN is there to capture the action.

Such a moment occured when Florida Republican Rep. Alan Grayson questioned Barack Obama’s arse-smooching Federal Reserve Chairman Ben Bernanke.

This is by no means an official transcript, but it does reflect the sense of part of the exchange.  Every American should watch it to learn just how screwed up our “experts” have made our system:

Grayson: I would like to direct your attention to page 26 of the report you handed out this morning which consists of your balance sheet.  And one of the entries on your balance sheet under assets is central bank liquidity swaps which shows an increase from the end of 2007 from $24 billion to $553 billion and change at the end of 2008.  What’s that?

Bernake: Those are swaps done with foreign central banks.  Many foreign central banks are short dollars, and so they come into our markets looking for dollars and drive up interest rates and create volatility in our markets.  What we’ve done is create a swap: we buy their currency and they buy ours.  That lowers interest rates across the globe.  They take the dollars, lend it out to the banks in their jurisdiction, and that helps bring down interest rates in the global market for dollars and meanwhile we’re not lending to those banks, we’re lending to the central banks; the central bank is responsible for repaying us.

Grayson:So who got the money?

Bernake: Financial institutions in Europe and other countries.

Grayson: Which ones?

Bernake: I don’t know.

Grayson: Half a trillion dollars and you don’t know who got the money?

Bernake: Uh, the loans went to the, the loans go to the central banks and they, uh, they put them out to their, uh, to their institutions to try to bring down short term interest rates in financial markets around the world.

Grayson: Well let’s start with which central banks got the money.

Bernake: They’re 14 of them which are listed, um, in our, i’m sure they’re listed in here somewhere.

Grayson: Who actually made that decision to hand out half a trillion dollars that way?

Bernanke: The Federal Open Market Committee.

More…

Grayson: All right. We actually looked at one of the arrangements and one of the arrangements is 9 billion dollars for New Zealand. That works out to $3000 for every single person who lives in New Zealand. Seriously, wouldn’t it have been better to extend that kind of credit to Americans than New Zealanders?

Bernake: It’s not costing Americans anything, we’re getting interest back and it comes back, not at the cost of any Amercian credit. We are extending credit to Americans, too.

Grayson: Well, wouldn’t it necessarily affect the credit markets if you extend half a trillon dollars in credit to anybody?

Bernake: We are lending to all US financial institutions in exactly the same way.

Alan Grayson: Well, look at the next page, the very next page has the US dollar nominal exchange rate which shows a 20% increase in the US nominal exchange rate at exactly the same time that you were handing out a half a trillion dollars. You think that’s a coincidence?

Bernake: Yes.

Alan Grayson (Breaks out laughing at the sheer absurdity of Bernanke’s calculated refusal to acknoweldge the obvious no matter how obvious it is…).

Watch the video and pass it along:

The purpose of this is not merely to slam Democrats.  George Bush wanted to do the most massive financial bailout in history – and while Democrats provided the MOST support for the $700 billion Bush-Paulson TARP bailouts – Republicans supported it too.  Enraged House Republicans voted down the measure after Nancy Pelosi used the opportunity to politically demagogue them, but enough of them ended up supporting the bailout plan.  Ultimately two-thirds of Democrats and one-third of Republicans voted to pass the measure.  John McCain supported it as a presidential candidate right along with Barack Obama.  And we have been throwing billions and even trillions of dollars around ever since.

Republicans were wrong.  Democrats were far more wrong, of course, because they are always far more wrong.  But Republicans should have put their foot down to prevent the financial-whiz-kid takeover of our entire political and economic system.

Something is incredibly sick with our system, because somehow that $700 billion TARP bailout has morphed into a $23.7 TRILLION TARP bailout, as the special inspector general for the Treasury’s Troubled Asset Relief Program, Neil Barofsky, recently made public.

And Barack Obama’s and Turbo-Tax Tim Geithner’s Treasury Department – caught red-handed spending and loaning FAR more than they ever should have been allowed to spend and loan – managed to turn the issue into a quibbling over just how much money we could theoretically lose at one time.  When the bigger question was, “Just how does an authorization of $700 billion become an authorization for $23.7 trillion?”

The difference between Democrats and Republicans at this point is that Republicans – who now openly admit they spent too much when they were in power – have wised up.  Meanwhile, Democrats who attacked “dangerous” and “irrepsonsible” federal spending under Bush have taken “dangerous” and “irresponsible” to levels never before even dreamt of. Democrats are utterly determined to keep up the insane spending spree until we are utterly imploded with debts even our children’s children’s children’s children’s children will never be able to hope to repay.

Since TARP, Obama has passed a $3.27 trillion stimulus that didn’t stimulate, a 9,000 earmark-laden $410 billion omnibus bill, and a $3.55 trillion federal budget that adds more to the debt than all previous US presidents from George Washington to George W. Bush – combined.  And even as we play aound with $2 trillion more for health care “reform” and throw billions of dollars more into “Cash for Clunkers,” there’s no sign that we are on any kind of slowdown as we race toward the economic cliff ahead.

We are experiencing a sickness that might well be epitomized by Vice President Joe Biden’s statement: “We have to spend money to keep from going bankrupt.” They are the words of a fool – and yet fools are now in total charge of our country as they pursue their fools’ agenda.

They want to play their political power games, rewarding their political allies and punishing their political opponents.  They want to stay in power forever.  They want to sit in their offices with their staffs and their benefits and their various fiefdoms.  They don’t want to protect the United States from calamity.  They somehow think that America is eternal and can never be defeated or destroyed.  They’re going to be in for a great wake-up call – and the nation right along with them – when it all goes to hell due to their insane lack of responsibility.

Taxpayers Now On Hook For $23.7 TRILLION In Bailout Money

July 22, 2009

I don’t know if I should be more scared than angry or more angry than scared.  Suffice it to say, I’m both angry and scared as hell.

The Obama presidency is just one giant nightmare.  And just like most nightmares, it’s going to keep getting scarier and scarier and crazier and crazier the longer it goes on.

While Obama has promised us unparalleled transparency, we have had the truth concealed from us, and we have been lied to.  And the TARP Inspector General’s report should wake up every American and

U.S. Rescue May Reach $23.7 Trillion, Barofsky Says (Update3)

By Dawn Kopecki and Catherine Dodge

July 20 (Bloomberg) — U.S. taxpayers may be on the hook for as much as $23.7 trillion to bolster the economy and bail out financial companies, said Neil Barofsky, special inspector general for the Treasury’s Troubled Asset Relief Program.

The Treasury’s $700 billion bank-investment program represents a fraction of all federal support to resuscitate the U.S. financial system, including $6.8 trillion in aid offered by the Federal Reserve, Barofsky said in a report released today.

“TARP has evolved into a program of unprecedented scope, scale and complexity,” Barofsky said in testimony prepared for a hearing tomorrow before the House Committee on Oversight and Government Reform.

Treasury spokesman Andrew Williams said the U.S. has spent less than $2 trillion so far and that Barofsky’s estimates are flawed because they don’t take into account assets that back those programs or fees charged to recoup some costs shouldered by taxpayers.

“These estimates of potential exposures do not provide a useful framework for evaluating the potential cost of these programs,” Williams said. “This estimate includes programs at their hypothetical maximum size, and it was never likely that the programs would be maxed out at the same time.”

Barofsky’s estimates include $2.3 trillion in programs offered by the Federal Deposit Insurance Corp., $7.4 trillion in TARP and other aid from the Treasury and $7.2 trillion in federal money for Fannie Mae, Freddie Mac, credit unions, Veterans Affairs and other federal programs.

Treasury’s Comment

Williams said the programs include escalating fee structures designed to make them “increasingly unattractive as financial markets normalize.” Dependence on these federal programs has begun to decline, as shown by $70 billion in TARP capital investments that has already been repaid, Williams said.

Barofsky offered criticism in a separate quarterly report of Treasury’s implementation of TARP, saying the department has “repeatedly failed to adopt recommendations” needed to provide transparency and fulfill the administration’s goal to implement TARP “with the highest degree of accountability.”

As a result, taxpayers don’t know how TARP recipients are using the money or the value of the investments, he said in the report.

‘Falling Short’

“This administration promised an ‘unprecedented level’ of accountability and oversight, but as this report reveals, they are falling far short of that promise,” Representative Darrell Issa of California, the top Republican on the oversight committee, said in a statement. “The American people deserve to know how their tax dollars are being spent.”

The Treasury has spent $441 billion of TARP funds so far and has allocated $202.1 billion more for other spending, according to Barofsky. In the nine months since Congress authorized TARP, Treasury has created 12 programs involving funds that may reach almost $3 trillion, he said.

Treasury Secretary Timothy Geithner should press banks for more information on how they use the more than $200 billion the government has pumped into U.S. financial institutions, Barofsky said in a separate report.

The inspector general surveyed 360 banks that have received TARP capital, including Bank of America Corp., JPMorgan Chase & Co. and Wells Fargo & Co. The responses, which the inspector general said it didn’t verify independently, showed that 83 percent of banks used TARP money for lending, while 43 percent used funds to add to their capital cushion and 31 percent made new investments.

Barofsky said the TARP inspector general’s office has 35 ongoing criminal and civil investigations that include suspected accounting, securities and mortgage fraud; insider trading; and tax investigations related to the abuse of TARP programs.

We were sold the stimulus (more commonly known to people who actually knew what was going on as ‘porkulus,’ and more accurately known as the Generational Theft Act) as a $787 billion package.  But it was actually no such thing.  The media kept talking about billions; but the actual figure was $3.27 TRILLION.  That’s right.  $3.27 trillion.  We were lied to.  Costs that were clearly part of the legislation weren’t disclosed to us, and now on top of getting far less than what was advertised, we are paying far more for the privilege than was advertised.

Now we find out that Obama and his gang of thieves has done much the same with TARP.  Somehow, while we weren’t looking, “TARP evolved into a program of unprecedented scope, scale and complexity.”  And by the same people who promised us an “‘unprecedented level’ of accountability and oversight.”  And lo and behold, TARP has exploded under all the darkness into a mushroom cloud of government obligations that dwarf anything imaginable.

And all that’s coming out of the Obama administration is some stumbling excuse from the Treasury Department’s spin doctor that it really isn’t as bad as the inspector general scrutinizing TARP says it is.

What we are getting from the Obama administration is an unceasing projection of rosey-colored scenarios that have no connection whatsoever to reality.  When they are forced to offer some sort of excuse, they claim they didn’t realize the economy was so weak (even when they were fearmongering it into comparisons of the Great Depression to sell their stimulus package) – and then they immediately offer up yet another mindlessly and freakishly rosy scenario in their very next breaths!!!  And then, of course, based on these projections, they are racking up insane spending atop insane spending.

Wall Street analyst Meredith Whitney, who gained a reputation of credibility after boldly predicting doom when everyone around her was seeing roses last year, is now predicting 13% unemployment and a very tough future for banks due to the continuing mortgage meltdown.

The White House is refusing to release its own annual midsummer US budget update because it doesn’t want the American people to see how bad things are until after they’ve passed their massive health care boondoggle.  Many now believe that budget release accounts for Obama’s frenzied push to pass health care before the August recessHow’s THAT for “unparalleled transparency”?

As said, Meredith Whitney is predicting 13% or higher unemployment.  What you may not know is that we are already at Great Depression levels of unemployment right now, and that our current 9.5% unemployment rate would be nearing 20% if it were calculated the way it was in 1980.

Unemployment

Note: The SGS Alternate Unemployment Rate reflects current unemployment reporting methodology adjusted for SGS-estimated “discouraged workers” defined away during the Clinton Administration added to the existing BLS estimates of level U-6 unemployment.

We face a future damned-if-you-do, damned-if-you-don’t dilemma: the only reason interest rates aren’t shooting skyward is because the market is in such a doldrum.  But the moment recovery begins to rear its head in Barack Obama’s game of economic Whack-a-Mole (where he whacks down small businesses and private-sector employment), hyperinflation due to our massive indebtedness will likely attack us.  The prospect of a jobless recovery, followed by Zimbabwe-levels of inflation looms very large in our future.

We’ve set ourselves up for hyperinflation.  We have massively increased our money supply even as our GDP has plummeted.  We have an increasing lack of confidence on the part of investors that we will be able to maintain the value of our currency (and see here), forcing demand for higher and higher interest rate payments on future bonds.  Those were the conditions of the Wiemar Republic; those were the conditions of Zimbabwe; and those are the conditions in the Late Great USA.

Pretty soon, we will be facing the Sophie’s Choice prospect of whether we want massively high interest rates, or massively high inflation – or best of both worlds – both massive interest AND hyperinflation.  We’ve got experts such as Johns Hopkins Professor of applied economics Steve Hanke and National Bureau of Economic Research economist Anna Schwartz seeing the inflation bogeyman rearing its genuinely ugly head.  And we’ve got investors beginning to start betting big on a coming hyperinflationary economy.

The thing is, we have a giant mega-trillion ton anvil cued over our collective heads.  And it is just waiting to drop.

So you see massive debt exposure to US economic structures.  You see higher unemployment.  You see historically low levels of tax revenue.  You see terrible recent mortgage default rates now turning “markedly worse.” You see all kinds of indicators that our debts are getting larger and larger even as our ability to repay them becomes smaller and smaller.

And it is with that backdrop that we should contemplate the massive, mind-numbingly enormous numbers hanging over everything this administration has done, is doing, or is trying to do.  With the debt he’s accumulating going up by the trillions, Obama issued the petty promise to cut his spending by a measly $100 million.  And he couldn’t even fulfill that insignificant budget cut.  All he knows how to do is spend and spend and spend.

So get scared.  Get angry.  And get ready for the beast.

We voted for “No, no, no.  Not God bless America.  God damn America!”  And now we’re going to get to see what “God damn America” looks like.

Democrat’s Government Health Care Will Increase, NOT Decrease, Costs

July 19, 2009

We don’t have any idea how expensive Obama care will truly be.  You can bet your britches – and you may end up actually being forced to BET your britches – that it will cost a whopping load more than advertised.

First, some figures to show the invariable tendency of the government to dramatically underestimate the cost of its own programs:

- 2009 (January) CBO estimated that the bailout TARP plan would cost taxpayers $189 billion; instead, several weeks later the estimated cost was raised to $356 billion, and will eventually be much more by end of 2009.

- 1965 CBO estimated that Medicare Pt. A cost would be $9 billion by 1990; instead the cost was $66 billion in 1990.  They were wrong by a mere 633%.  Today the costs have exploded so incredibly that no one’s even bothering to go back now and try to figure out just how terribly wrong the forecasters truly were.

1965 CBO estimated that all (Part A plus Part B) Medicare cost would be $12 billion by 1990; instead the cost was $107 billion in 1990, and today it has a stratospheric total unfunded liability of $61.6 trillion.  Oops.

1987 CBO estimated that subsidy for Medicaid special hospitals would be $100 million by 1992; instead the cost was $11 billion in 1992There’s a nice 10,900% cost markup for you.  Better luck next time.

1988 CBO estimated that Medicaid homecare cost would be $4 billion by 1983; instead the cost was $10 billion in 1983.  But don’t worry; it’s only money.  And being off by a mere 150% is actually quite excellent by the “close enough for government work” mindset.

2003 White House estimate of Iraq War cost would be $60 billion; instead the cost so far has exceeded $600 billion.  Oh, well, if at first you don’t succeed, there’s always Afghanistan to screw up too.

Maybe you’d better sit down for this shocker: The U.S. government controls its costs the way Monty Python’s famous Mr. Creosote controlled his weight:

And like Mr. Creosote, it will be that extra tiny little bit of spending that finally causes the U.S. treasury to explode in a gory death.  Instead of the mint that blows up Mr. Creosote, it will be a dollar bill that blows up the U.S. government.

So when you hear the arguments over how much Obama’s health care “reform” will cost, realize that it isn’t a matter of whether it will cost $1 trillion, or $1.5 trillion, or $3.5 trillion; it’s a matter of whether it will cost one of those numbers times a factor of at least 10 or more.

The $1.5 trillion figure, which is currently being thrown around, is enough of a sticker shocker even without the realization that it will actually end up costing far, far more that even Democrats – fearing losing their seats – are beginning to bail out of it.

Still, the worse the plan looks, the faster Barack Obama wants it passed, before people know what a lemon they bought.  Obama has been claiming that we must immediately pass health care “reform” in order to save money in future years.  He has pounded away with that message again and again.

But that message is a complete lie.

Allow me to introduce Doug Elmendorf, the director of the Congressional Budget Office.  And allow me to cite an article by Rick Moran from Pajama’s Media to describe the truly dire situation we face, and which we are ignoring to our literal peril:

ObamaCare Gets a Red Light from Congressional Budget Office

The Democrats’ plan not only won’t save a dime, it will cost us billions over the next decade. (Also see PJTV: Nationwide Protests Target ObamaCare)

Doug Elmendorf, director of the nonpartisan Congressional Budget Office, was testifying before the Senate Budget Committee yesterday when he dropped a bombshell on the gathering that put a whole new spin on the effort by the Obama administration to reform the health care system.

The exchange with Democrat Kent Conrad was a shocker:

Conrad: Dr. Elmendorf, I am going to really put you on the spot because we are in the middle of this health care debate, but it is critically important that we get this right. Everyone has said, virtually everyone, that bending the cost curve over time is critically important and one of the key goals of this entire effort. From what you have seen from the products of the committees that have reported, do you see a successful effort being mounted to bend the long-term cost curve?

Elmendorf: No, Mr. Chairman. In the legislation that has been reported we do not see the sort of fundamental changes that would be necessary to reduce the trajectory of federal health spending by a significant amount. And on the contrary, the legislation significantly expands the federal responsibility for health care costs.

Conrad: So the cost curve in your judgment is being bent, but it is being bent the wrong way. Is that correct?

Elmendorf: The way I would put it is that the curve is being raised, so there is a justifiable focus on growth rates because of course it is the compounding of growth rates faster than the economy that leads to these unsustainable paths. But it is very hard to look out over a very long term and say very accurate things about growth rates. So most health experts that we talk with focus particularly on what is happening over the next 10 or 20 years, still a pretty long time period for projections, but focus on the next 10 or 20 years and look at whether efforts are being made that are bringing costs down or pushing costs up over that period.

As we wrote in our letter to you and Senator Gregg, the creation of a new subsidy for health insurance, which is a critical part of expanding health insurance coverage in our judgment, would by itself increase the federal responsibility for health care that raises federal spending on health care. It raises the amount of activity that is growing at this unsustainable rate and to offset that there has to be very substantial reductions in other parts of the federal commitment to health care, either on the tax revenue side through changes in the tax exclusion or on the spending side through reforms in Medicare and Medicaid.

Elmendorf made additional news yesterday by scaring the hell out of everyone when he released the latest CBO report on the long-term budget outlook that, in technical terms, says that we are in very big trouble:

Under current law, the federal budget is on an unsustainable path, because federal debt will continue to grow much faster than the economy over the long run. Although great uncertainty surrounds long-term fiscal projections, rising costs for health care and the aging of the population will cause federal spending to increase rapidly under any plausible scenario for current law. Unless revenues increase just as rapidly, the rise in spending will produce growing budget deficits. Large budget deficits would reduce national saving, leading to more borrowing from abroad and less domestic investment, which in turn would depress economic growth in the United States. Over time, accumulating debt would cause substantial harm to the economy. …

Measured relative to GDP, almost all of the projected growth in federal spending other than interest payments on the debt stems from the three largest entitlement programs — Medicare, Medicaid, and Social Security. For decades, spending on Medicare and Medicaid has been growing faster than the economy. CBO projects that if current laws do not change, federal spending on Medicare and Medicaid combined will grow from roughly 5 percent of GDP today to almost 10 percent by 2035. By 2080, the government would be spending almost as much, as a share of the economy, on just its two major health care programs as it has spent on all of its programs and services in recent years.

This double dose of doom has made absolutely no impact on Capitol Hill. Three House committees seem ready to report out a $1.5 trillion health care reform measure while the Senate Finance Committee appears close to a bipartisan deal on how to fund it — this, despite the fact that the CBO chief has told them there is no way to pay for it.

It is like being in a bad dream where there’s a fire in a room where a dinner party is being held and you’re the only one who notices. Everyone else is still playing cards, eating, or sitting around having witty conversations, all the while the fire laps closer and closer.

But it’s not a nightmare and lawmakers really are ignoring the fire. Elmendorf doesn’t come up with these projections to amuse himself and the wonks at CBO. He has outlined a recipe for catastrophe that will eventually make the United States a second rate economic power, not to mention impoverish the population.

The president and Democrats have been pitching this plan as a cost-saving measure. The president especially has been warning that we have to pass this reform bill quickly in order to get control of the spiraling deficits grimly outlined in Elmendorf’s long-term budget outlook.

But Elmendorf is saying that we can’t get there from here, that the numbers being used by Democrats to close the gap between what the bill will cost and how they plan to pay for it are simply not adding up.

There is another aspect to this reform measure that few are talking about: history. Every single entitlement program ever created by the federal government has cost the taxpayer more than advertised — in some cases, astronomically more.

Medicare is a perfect example. When the program was created in 1965, it cost taxpayers around $3 billion. At that time, the House Ways and Means Committee estimated that Medicare would cost $12 billion by 1990 — and that number was adjusted for a predicted rate of inflation. The actual cost of the program in 1990 was $107 billion. And today, Medicare costs the U.S. taxpayer $440 billion.

At best, Congress is guessing. The fact is, no one knows how much this monstrosity is going to cost, no one knows how it is going to be paid for, and no one knows what effect it will have on the quality of care or on the private insurance industry.

The ideas being implemented are untried. And, unlike NASA testing a new rocket or the Air Force testing a new fighter where failure is expected, there is no room for error. However this thing works itself out, we are stuck with it. History is a telling guide here as well; there has never been an entitlement once created that was later rescinded.

Elmendorf’s testimony and budget outlook should be heeded. Yes, we need to reform the health care system — badly. But the Democrats’ plan is not the only game in town. There are many proposals left unexamined by the Democrats in their haste to give their president a triumph. The partisan nature of the debate, the deliberate closing off of alternatives that would cost far less and perhaps do as much as is being proposed, and the damnable rush to get it all done before anything is digested or weighed against the long term, is frightening.

The major justification for speed in passing this legislation just went out the window with Director Elmendorf’s admission that the health care reform bill will only add many billions to the record deficits we will already be running over the next decade. Is that reason enough to slow down or even stop what the Congress is doing in order to think this thing through and try to come up with alternatives?

Not when it’s easier to ignore the fire lapping at your toes in order to grant a political victory to a president in trouble with the voters.

They say elections have consequences, and since the country voted for total Democrat control, we should let the Democrats have their shot.  That may be true.  But what we did as a nation in November was vote to slash our jugular veins, so that the blood of the entire nation (measured in the red ink of crippling debts) would gush out until we are left with less than a banana republic.

It is my sincerely held belief that those who truly understand the real picture are not telling us how truly bad things are, lest the people bring the nation down in one massively giant “bank run.”

Respected Analyst Meredith Whitney Predicts Unemployment Of 13 Percent Or Higher

July 14, 2009

The Obama administration predicted that if Obama’s stimulus passed, unemployment would not go over 8%.  He blatantly fearmongered the economy down in order to get his pet stimulus passed.  Obama rushed his incredibly euphemistically-named American Recovery Act through Congress so fast that no one even got a chance to actually read it.

The idea, of course, is that Obama’s liberal solutions would stop the slide and make things get gradually better.  But unemployment – which was at 4.4% when Democrats took power over both the House and the Senate – was at 6.7% when Obama got elected and at 7.2% when Obama was pushing for his stimulus in January.  As the Associated Press puts it, “In January, President Barack Obama’s economic team predicted unemployment would rise no higher than 8 percent with the help of $787 billion in new government spending.”  Yet unemployment is now higher than what the Congressional Budget Office said it would reach if we didn’t pass a stimulus.

Talk about a massive failure.

Now unemployment is at 9.5%, and – according to respected analyst Meredith Whitney – it is expected to top 13% in the coming months.

Banks Stronger But Outlook Clouded by Job Loss: Whitney

Unemployment is likely to rise to 13 percent or higher and will weigh on the economy for several years, countering government efforts to stabilize the banking industry, analyst Meredith Whitney told CNBC.

While Whitney raised her short-term outlook for banks, causing stocks to open in positive territory after pointing lower earlier, she said the long-term outlook for the economy remains murky.

Consumers will not be able to spend as they continue to lose jobs and credit conditions stay tight, she said in a live interview. The result will provide a vivid display of how critical housing and lending are to economic growth. Unemployment is currently at 9.5 percent but is expected to keep rising.

We underestimate how much the whole economy is dependent on the mortgage industry, and that has to change,” Whitney said. “This is what happens when you delay the inevitable. We’re buying time here, but we’re not restructuring the economy.”

And she’s right.  All the trillions of dollars in debt Obama has imposed on the American people, and with all of those trillions, he has utterly failed to do anything to fix the fundamental issues that broke our economy in the first place.  In fact, he is now seeking to use the $700 billion in TARP money (which stands for ‘Troubled Asset Relief Program”) to hand out to certain small businesses.  But don’t forget that the program was implemented to buy distressed assets from financial institutions, and NOT to buy political patronage.

Obama’s $3.27 trillion stimulus didn’t do anything to address the mortgage industry’s fundamental crisis, his 9,000-pork-project-laden $410 billion omnibus bill didn’t do anything to address the mortgage industry’s fundamental crisis, and now he is planning to pillage the one source of funds that were designed to deal with the things that actually created the economic crisis.

Meredith Whitney is bullish on Goldman-Sachs because sich the giant institution “will benefit from being a key player in a ‘tsunami of debt issuance’ by governments as they try to fill gaps in underfunded budgets.”

The Wall Street Journal article continues:

However, Ms. Whitney said her bullish view of Goldman is rooted in her overall bearish outlook for the U.S. economy and other U.S. financial companies. During an interview on the financial network CNBC on Monday morning, she said the U.S. unemployment rate could reach 13% and remain elevated beyond 2010, and that most banks likely aren’t prepared for prolonged joblessness at that level. The U.S. unemployment rate reached 9.5% in June. She said that bank stocks will be good buys in the short-term due to a robust mortgage business, but that the longer-term outlook for most banks was grim.

The suspicious person would wonder over the fact that Obama – who took more campaign money from the financial institutions that played critical roles in bringing us the economic crisis in the first place – is now preparing to massively reward those very same institutions.

But let’s forget about that, and focus on the far more terrifying news than mere Chicago-style political corruption.

Let us focus on the fact that, contrary to Obama’s bold assertions, things are not looking up.  They are in fact looking down.  And increasingly, it appears that things are going right down the toilet.

Now, given those two basic facts – Obama’s early prediction that his stimulus would hold unemployment to under 8%, and Meredith Whitney’s forecast of coming 13% or higher unemployment - what do you make of Obama’s statement:

Yet the stimulus package “is working exactly as we had anticipated,’’ Obama told CNN. “We always anticipated that a big chunk of that money then would be spent not only in the second half of the year, but also next year. This was designed to be a two-year plan and not a six-month plan,’’ he said.

How can this sound like anything other than the most transparent lie?  And the lie of a man who has absolutely no idea what he’s doing at that.  How can he so blithely pass over his total documented failure to manage the economy as he said he could?  How can he so blithely pass over the coming black hole of unemployment that is just going to get worse and worse?

Our president is a fool who has been by far the most successful when he has counted on the foolishness of the American people.

Vice President Joe Biden recently said, “The truth is, we and everyone else misread the economy.”  But that is not true at all.  For one thing, it wasn’t “everyone” who issued the completely contradictory statements that 1) predicted that unemployment wouldn’t rise above 8% if we passed the stimulus; 2) said we misread the economy; and 3) said the stimulus package is performing exactly as anticipated.  Only the Obama administration was so completely wrong, and so completely incoherent.

I’m no great economist, but I’ve been regularly predicting that Obama would totally fail to handle the economic mess that Democrats largely created in the first place.  Republicans predicted that the stimulus would totally fail to create jobs even as it harmed our economy with stratospheric debt.  CEO’s have gone on record predicting that Obama would bankrupt the country within three years if his agenda was implemented.

The unemployment numbers are truly terrifying, particularly if you realize that – with discouraged workers factored in as they were during the Great Depression – we are already at Great Depression levels of unemployment.   For the record, the unemployment rate in 1930 was about where it is now.  And we were when the unemployment rate was a full percentage point lower than it is today.   Paul Craig Roberts, the assistant secretary of the Treasury under Reagan, said on January 12, 2009, “According to the methodology used in 1980, the US unemployment rate in December 2008 reached 17.5 percent.”  We’re going down the drain, and all our federal government can do is play games with economic statistics to make things appear less bad than they really are.  But what’s going to happen when it goes up yet another four percent from where it is now?  And based on what factors will we be able to stop it at that level?

Bizarro Obama’s Credit Bill Subsidizes Stupidity By Penalizing Prudence

May 23, 2009

Elaine and Jerry have the following dialogue in a famous Seinfeld episode titled, “Bizarro Jerry”:

“He’s reliable. He’s considerate. He’s like your exact opposite.”
“So he’s Bizarro Jerry.”
“Bizarro Jerry?”
“Yeah, like Bizarro Superman, Superman’s exact opposite, who lives in the backwards Bizarro world. Up is down, down is up, he says hello when he leaves, goodbye when he arrives.”
“Shouldn’t he say badbye? Isn’t that the opposite of goodbye?”
“No, it’s still goodbye.”
“Does he live underwater?”
“No.”
“Is he black?”
“Look, just forget the whole thing.”
- Elaine and Jerry, in “The Bizarro Jerry”

Well, let’s not forget the whole thing, Jerry.  Because Bizarro Superman is now among us.  Art, imitation, and boob-tube television have come to life: Barack Obama is our Bizarro Superman.

Bizarro Superman is the sort of Superman who saves the guilty by beating the snot out of the innocent.

Did you buy a house you could afford?  Bizzaro Superman flew in and established a system whereby you subsidized those who foolishly overextended themselves.  After bailing out these fools who received assistance primarily by belonging to traditional liberal voting blocs, three out of five of them are already defaulting again (necessitating yet another bailout from you).

Do you have an account with a bank that took (in many cases was forced to take) TARP money?  Bizarro Superman wants to impose his political agenda on banks, so he won’t allow them to repay their loans.

Did you hope to be able to improve your lot in life with the gigantic stimulus package?  Sorry, Bizarro Superman’s stimulus turned out to be the porkulus that conservatives said it would be, with far more money going to 40 years’ worth of liberal pet projects than to job creation.  We’ve also recently learned that due to massive structural flaws the stimulus is bypassing all of the counties that most desperately needed help.  It might have helped if someone had actually been allowed to read the bill first, but Bizarro Superman didn’t want to take any chances that someone would see what a socialist power grab it truly was.

Did you invest in secured debt from Chrysler and GM?  Sorry, buddy: Superman has flown in and given your safe and secured investment dollars to his UAW cronies.  When the secured investors – who by law were entitled to be at the head of the line in any bankruptcy – balked at being paid pennies on the dollar while the UAW was given the farm – Bizarro Superman demonized them as “greedy hedge funds” and threatened them with public propaganda attacks.

Bizarro Superman has flown in and promised that 95% of Americans will get a tax cut under his plan (which actually just means more welfare for the 43.4 percent who already don’t pay any federal income tax at all even as our small business owners who employ most American workers are increasingly taxed into oblivion).  Will people pay less in taxes under Bizarro Superman?  Just for your information, the average 30 year old will pay $136,932.75 just for the interest of just Obama’s 2010 budget over the course of his or her working lifetime. Americans will be paying FAR more of their money to the government – and they will have Bizarro Superman to thank for it.

Only in Bizarro world does an administration say it’s “the patriotic duty” for some to pay a an even more massive tax burden imposed on them even as it promises that the other 95% should be LESS patriotic by paying less in taxes.

Are you one of the 100% of Americans who use energy?  Get ready for the price of it to skyrocket (“necessarily skyrocket,” to quote Bizarro Superman).  Even the Obama administration admits that Bizarro Superman’s energy plan will increase the average American’s electric bill by $1,800 a year.  Which means it will very likely be a hell of a lot worse than that.

Only in Bizarro world does Congress actually hire a speed reader to read really fast a terrible energy bill that Representatives and Senators won’t bother to read at normal speed.

Now Bizarro Superman has flown in and saved risky credit-card borrowers by establishing a system that will penalize those who have always paid their bills on time and in full.  From the New York Times:

Credit cards have long been a very good deal for people who pay their bills on time and in full. Even as card companies imposed punitive fees and penalties on those late with their payments, the best customers racked up cash-back rewards, frequent-flier miles and other perks in recent years.

Now Congress is moving to limit the penalties on riskier borrowers, who have become a prime source of billions of dollars in fee revenue for the industry. And to make up for lost income, the card companies are going after those people with sterling credit.

Banks are expected to look at reviving annual fees, curtailing cash-back and other rewards programs and charging interest immediately on a purchase instead of allowing a grace period of weeks, according to bank officials and trade groups.

“It will be a different business,” said Edward L. Yingling, the chief executive of the American Bankers Association, which has been lobbying Congress for more lenient legislation on behalf of the nation’s biggest banks. “Those that manage their credit well will in some degree subsidize those that have credit problems.”

Again and again, on issue after issue, our Bizarro Superman, Barack Hussein Obama, has come to the rescue of the irresponsible by punishing the responsible.

Our economy became the greatest in the history of the world by policies that rewarded sound and prudent investment while punishing foolish behaviors.  Those days are long gone.  We’re in Bizarro world now.

I pulled out of the stock market following the Democratic National Convention when I had that first moment of genuine fear that Obama would probably win, and put my nest egg into gold and silver.  Betting that Obama would be a disaster for the economy has been the best financial move I’ve ever made: I’ve made a 15% return on precious metals even as investors in the stock market lost about 30%.

I still remember the day I came across the following poll results from the September/October issue of CEO Magazine:

According to the poll, which is featured on the cover of Chief Executive’s most recent issue, by a four-to-one margin, CEOs support Senator John McCain over Senator Barack Obama. Moreover, 74 percent of the executives say they fear that an Obama presidency would be disastrous for the country.[...]

In expressing their rejection of Senator Obama, some CEOs who responded to the survey went as far as to say that “some of his programs would bankrupt the country within three years, if implemented.” In fact, the poll highlights that Obama’s tax policies, which scored the lowest grade in the poll, are particularly unpopular among CEOs.

I’ve pulled out of the US economy due to Bizzaro Superman and his Bizarro economic policies.  No investments in stocks, no purchases of US bonds.  Not with Obama’s mind-boggling deficit spending acting like a 10 ton anvil hovering over the economy due to debt as a percentage of GDP rising like a rocket ship.  I’m making as few purchases as possible.  And I’m not coming back to investment in America as long as Bizarro Superman is our president.

And I’m going to pull out of credit cards now, too.  If I see one fee, or if I see my interest rate go up so much as 1 point due to my cards’ charging interest from the moment of purchase, I’m cutting them up and going back to the tried and true checkbook.

The only question I have is this: at some point Obama’s and the Democrat’s policies of subsidizing stupidity by penalizing prudence are going to implode the economy.  In the aftermath of that disaster, will there even BE a U.S. economy worthy of investing in?

I’m not betting on it.


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