Posts Tagged ‘regulate’

Redistributing Failure: Obama EPA Goes To War Against Texas

December 28, 2010

The last Census pretty much proved the point: there is a clear population flow from failed liberal states to successful conservative ones.  And the state of Texas was the biggest winner of all.

Here’s a great title that pretty much sums it up:

Census Winners (Texas) and Losers (Obama)

So what is a good liberal to do?

Ensure that Texas is forced to employ the same utterly failed and immoral policies that are crippling blue states across the country:

EPA, Texas go to war over carbon-emission rules
posted at 2:00 pm on December 27, 2010 by Ed Morrissey

And so it begins, and on the most fertile red-state territory in the nation.  Texas, which got four more seats in the House through the 2010 Census reapportionment, has had its air-quality rules superceded by the EPA as part of its aggressive new action on carbon emissions.  Governor Rick Perry promises a fight:

The federal Environmental Protection Agency on Thursday effectively declared Texas unfit to regulate its own greenhouse gas emissions and took over carbon dioxide permitting of any new or expanding industrial facilities starting Jan. 2.

The EPA also set up a framework for regulating greenhouse gas emissions in seven other states: Arizona, Arkansas, Florida, Idaho, Kansas, Oregon and Wyoming. In addition, the agency set a timetable on establishing regulated levels of greenhouse gas emissions.

The action will give the EPA permitting authority over refineries, power plants and cement facilities in Texas, the agency said, but will not affect small pollution source facilities, such as restaurants and farms.

Well, perhaps not directly, but the increase in energy prices and shortages created by the EPA imposition of what will essentially be carbon taxes will impact businesses throughout the Texas economy, as well as consumers who ultimately pay the costs of the regulatory regime. Rick Perry has signaled a court fight to stop the EPA and the Obama administration:

Texas is the only state that has refused to implement the new rules. President Barack Obama is pressing ahead with the regulations after Congress failed to pass legislation capping carbon emissions. Perry, a Republican, calls the rules overreaching by the federal government that will cripple his state’s economy.

“The EPA’s misguided plan paints a huge target on the backs of Texas agriculture and energy producers by implementing unnecessary, burdensome mandates on our state’s energy sector, threatening hundreds of thousands of Texas jobs and imposing increased living costs on Texas families,” Katherine Cesinger, a Perry spokeswoman, said in an e-mailed statement.

The timing is certainly interesting. The EPA made this move two days before Christmas, when most people had stopped paying attention to political news. The EPA’s move thus got missed by most of the national media, even though it demonstrates well the Obama strategy in 2011 to win through regulation what it could not win through legislation. And by focusing on Texas, where Republicans have a chance to redistrict with practically no interference from Democrats, the move will certainly incentivize the GOP to limit as much as possible the representation of Democrats in their Congressional delegation as the Republican-controlled House attempts to stymie the EPA’s regulatory innovation.

This also will vault Rick Perry to the highest level of national politics, even as he continues to insist that he won’t run for President. With a third term as governor in hand and a perfect political battle opening in front of him, though, the opportunity may be too much to resist for a man who could possibly unite conservatives and the GOP for a big run against a stumbling Obama in 2012.

There’s a joke I remember: What’s the difference between an American [capitalist] and a European [socialist]?  The American capitalist is riding on a bus and sees a man driving a fancy sports car and thinks, “Some day I’ll be able to afford a car like that.”  Versus the European socialist who is riding on the bus and sees the same thing and thinks, “Some day that sonofabitch will be riding the bus just like me.”

The liberal worldview was best summed up by Reagan:

“If it moves, tax it.  If it keeps moving, regulate it.  And if it stops moving, subsidize it” ~ Ronald Reagan

Punish success.  That way you can get to subsidizing failure.  And then you can move on to subsidizing all the failures that subsidizing failure produces.

Because failures will vote Democrat in order to keep benefiting from other people’s success.

Texas survived the Alamo.  But surviving Obama is like surviving stage IV brain cancer.

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It Was DEMOCRATS Who Blew Up Our Economy In 2008

October 19, 2010

I’ve been saying this for months: It was DEMOCRATS who destroyed our economy in 2008.

First of all, given all the times that you’ve heard the line, “The Republicans created this mess,” ask yourself a question: when was the last time you heard an explanation as to just precisely what the Republicans did to cause the disaster?

Don’t be a lemming and a tool; read up on how Democrats loaded up GSEs Fannie and Freddie with liberals, massively increased the government ownership of the mortgage industry, engaged in incredibly risky policies even as our housing market was beginning a cyclical downturn, and then refused to allow any regulations or reform whatsoever:

With Eyes Finally Wide-Open, Reconsider Why The Economy Collapsed In The First Place

Who REALLY Exploded Your Economy, Liberals Or Conservatives?

Biden: We Misread The Economy – And It’s All The Republicans’ Fault

Want To Know Why Your Economy Blew Up?

Barney Frank And Democrat Party Most Responsible For 2008 Economic Collapse

This Blame Bush Crap Has Just GOT To End

And here’s the latest fact and the latest explanation as to just how Democrats blew up our economy:

The quotes that explain the entire financial meltdown
posted at 12:10 pm on October 12, 2008 by Ed Morrissey

For those who want a smoking gun to show the genesis of the financial collapse, this short sequence from a longer video I posted this week will do it. Clinton HUD Secretary Andrew Cuomo announced a settlement of a lending discrimination complaint with Accubanc, a Texas lender whose prerequisites for mortgages came under attack from “community organizers” at the Fort Worth Human Relations Commission and the city of Dallas. I clipped out this sequence to underscore its importance:

Watch the video.

CUOMO: To take a greater risk on these mortgages, yes. To give families mortgages that they would not have given otherwise, yes.

Q: [unintellible] … that they would not have given the loans at all?

CUOMO: They would not have qualified but for this affirmative action on the part of the bank, yes.

Q: Are minorities represented in that low and moderate income group?

CUOMO: It is by income, and is it also by minorities? Yes.

CUOMO: With the 2.1 billion, lending that amount in mortgages — which will be a higher risk, and I’m sure there will be a higher default rate on those mortgages than on the rest of the portfolio

Here, in fact, is the genesis of the problem, the ideology that created the monster.  Cuomo, the Clinton administration, and Congress believed they had the right and the power to determine acceptable risk for the lenders, rather than lenders determining it for themselves in a free market.  Even while imposing risk standards on lenders, Cuomo admits that he expects a higher default rate on the new loans — which is why the lenders didn’t want to write them in the first place.

In other words, the CRA didn’t get used to fight discrimination, but to force lenders to give money to high-risk borrowers for political purposes.  And Cuomo knew it.

That was the political arrogance at the heart of the collapse.  However, the CRA was more a sideshow than the actual problem.  When Congress decided that enforcement alone wouldn’t generate enough mortgages to boost their political fortunes, they had Fannie Mae and Freddie Mac eliminate the risk entirely for lenders through the purchase of the subprime loans.  Without that risk and with almost-guaranteed short-term profits of subprime loans, lenders went wild while Fannie and Freddie repackaged them as quasi-government bonds for investors.

While Democrats like Barack Obama, Harry Reid, and Nancy Pelosi keep blaming “greed” for the collapse, it was Democrats like Barney Frank and Chris Dodd building that “greed” into the system in order to drive the subprime lending market.  And it was Democrats like Frank, Dodd, Maxine Waters, and Lacy Clay who suggested that regulators like Armando Falcon were racists for blowing the whistle on the Ponzi scheme they created.

The Democrats decided, as Michelle says, that mortgages were a civil right, and wouldn’t cost the American taxpayers a dime.  How well is that working out, America?  And now, the question you have to ask yourselves is this: Do you want the nation’s economic policies run by Obama, Pelosi, Reid, Dodd, and Frank for the next two years?

John Adams said, “Our Constitution was made only for a moral and religious people. It is wholly inadequate to the government of any other.”

The problem is that we aren’t a moral or religious people anymore.

We’ve become a bad people.  And bad people allow a climate in which lies dominate, and then they believe the lies they are told.

And that is why we allowed a mainstream media to fabricate an entire culture of lies, and then we believed their narrative that Republicans (who hadn’t been in power for two years in the Congress) were the party to blame.  We blamed Bush – who tried SEVENTEEN TIMES to reform and regulate Fannie Mae and Freddie Mac prior to the economic meltdown just in 2008 alone.  And Bush had called for reform and regulation of the GSEs 34 times since 2001.  And we put the very Democrats who blew up our economy by refusing to allow those reforms or regulations until after it was too late in charge of the economy that they ruined.

It was Democrats and the Government Sponsored Enterprise system Democrats created (i.e., GSEs Fannie and Freddie) that created the financial disaster; just as it is Democrats who are in total control of our government who are CONTINUING to undermine our economy now.

We gave Democrats total power.  And in just two years they have so destroyed our economy and our health care system that we may never be able to recover.

69% Of Independents Say Obama’s Policies Have Made Economy Worse

October 12, 2010

Democrats have been telling anyone who will listen that Republicans destroyed the economy.  And that letting Republicans take over is giving power back to the very people who drove the economy into the ditch to begin with.

But here’s the thing – only Democrats believe that load of hooey now.

People have moved on.  What they understand is that Democrats have made a bad situation far, far worse:

Sixty-nine percent of independents say Obama has made the economy worse and 80 percent of those also say they will definitely vote this year. More than 6 out of 10 also disapprove of the job Obama is doing, are angry with government and oppose the health care reform plan he advocated and signed into law.

Things were really bad the last time Republicans ran Congress.  In January of 2006 – the last time Republicans were in control – unemployment was a terrible 4.6%.  And the last time Republicans submitted a budget (for FY2007), the budget deficit was $161 billion.

Just so you know, unemployment under Obama and the Democrat-owned Congress has been more than twice what Republicans left for seventeen straight months.  The VERY NEXT YEAR after Republicans lost control of Congress, Democrats wrote a budget (FY2008) that was nearly THREE TIMES HIGHER IN DEFICIT SPENDING, with a $459 billion deficit.

Annual deficits under the last Republican Congress have become monthly deficits under the Democrats.

In 2008, during Bush’s final year in office, 40 banks closed.  Compared to 140 banks closing in Obama’s first year in office, and 125 more banks have closed in Obama’s second year, as of September 21, 2010.

Under Obama, we are now seeing the highest poverty rate in fifty years.  And more Americans are now on food stamps than ever before.

Which all goes to say that independents are right: Obama and the Democrats HAVE made the economy far worse.

Democrats tell the myth that it was Bush and Republican policies that destroyed the economy in 2008.  But Democrats were crawling all over the policies that led to our economic implosion.  It was Fannie Mae and Freddie Mac policies that destroyed our economy – and Democrats owned Fannie and Freddie.  Democrats also claim that Bush and Republicans refused to implement regulations that would have prevented the crisis – but Bush tried MORE THAN SEVENTEEN TIMES to regulate Fannie and Freddie.  And Democrats marched in goose-step to block every single one of those attempts.

Which is to say that Democrats have been far worse than voters believed they would be, while Republicans were nowhere near as bad as a profoundly dishonest and partisan media said they were.

 

How Should Democrats Eat The Half-Trillion $ Monsters Fannie And Freddie? One Bite At A Time

May 14, 2010

The truth is finally starting to come out in spite of the media.  After a mountain of Democrat-media complex lies buried so many inconvenient truths.

First it was Barney Frank’s admissions on tape before the economy went to hell caused by his horrendous liberal policies.

And now this little exchange:

CNBC’s Rick Santelli Rips Key Democrat For Ignoring Fannie/Freddie Reform
Dems’ Financial “Reform” Leaves Taxpayers on the Hook for Government Mortgage Giants

Washington, May 11 Follow @GOPLeader on Twitter for updates.

Democrats still don’t get it, and they refuse to reform Fannie Mae and Freddie Mac, the government mortgage companies that sparked the meltdown by giving high-risk loans to people who couldn’t afford it.   Standing up for American taxpayers, CNBC’s on-air editor, Rick Santelli teed off on Rep. Paul Kanjorski’s (D-PA) claim that Democrats’ couldn’t reform Fannie & Freddie in their financial regulation bill because it was “too complicated,” asking: “It’s too complicated?  You think taxpayers that go to work to pay the money you are subsidizing, it will end up a half a trillion, do you think they think complicated is an excuse?

The exchange couldn’t have come at a worse time for Rep. Kanjorski and Congressional Democrats, because Fannie and Freddie simply won’t go away.  As the Financial Times reported today:

“Fannie Mae said on Monday it would need an additional $8.4bn in aid, as the US government-controlled mortgage finance company continued to suffer heavy losses on its bad loans…Fannie Mae’s appeal for help comes on the heels of a similar plea last week by smaller rival Freddie Mac, which asked for an additional $10.6bn cash infusion.  The latest requests for aid bring the total amount of taxpayer dollars drawn down by these companies to $148bn since the 2008 government-led bail-out.

“Anthony Sanders, a senior scholar at the Mercatus Center at George Mason University, called Fannie and Freddie ‘our own Greek tragedy.’  Mr. Sanders estimated that total taxpayer liability was about $8,000bn for the combined companies, including public debt and loan guarantees.”

But the unlimited bailout that the Administration has bestowed on Fannie and Freddie doesn’t seem to bother Democrats, though the latest giveaway may come at an “inconvenient time,” as the New York Times noted today:

“Fannie Mae’s request on Monday for another $8.4 billion in federal aid comes at a politically inconvenient time for the Obama administration, which is pressing to pass sweeping financial legislation without resolving the company’s future…. Democrats want to defer an overhaul of federal housing policy until next year, after the midterm elections. But Republicans have seized on the continuing losses to argue that a plan for the two companies should be a priority of the current legislation.”

Republicans have been pressing for an end to bailouts that would get the government out of the mortgage business once and for all.  But Democrats are not only unwilling to reform Fannie and Freddie, they are doubling down on the failed government mortgage companies – burning through hundreds of billions of taxpayer dollars in the process.  As the Washington Post noted in a report today: “Under the terms of the government’s 2008 emergency takeover of Fannie and Freddie, the Treasury must pump money into either firm whenever its worth, as measured by assets minus liabilities, goes into the red. Late last year, the Obama administration pledged unlimited backing.”

For years, Republicans raised red flags about Fannie and Freddie’s financial condition and proposed responsible reforms only to be thwarted by Democrats who have deep political ties to the worst offenders.  These same powerful Democrats are now pushing for a financial reform bill that doesn’t even address the need to fix these government mortgage companies.  As the Wall Street Journal wrote last week, “reforming the financial system without fixing Fannie and Freddie is like declaring a war on terror and ignoring al Qaeda.”

House Republicans’ plan would phase out taxpayer subsidies of Fannie Mae and Freddie Mac over a number of years and end the current model of privatized profits and taxpayer losses.  Find out more by clicking HERE.

For the record, “8,000 billion” is another way of saying $8 TRILLION DOLLARS.  That’s what Fannie Mae, Freddie Mac, and the Democrat Party have cost us.

The biggest problem with Fannie Mae and Freddie Mac has always been that it was a social welfare institution disingenuously masquerading as a financial institution.  The giant GSEs were packaged and sold under entirely false pretenses.

It was Democrats who established Fannie Mae and Freddie Mac.  It has been Democrats who have controlled the staffing of both agencies for decades.  It was Democrats – and particularly it was Barack Obama – who took more campaign money from Fannie Mae and Freddie Mac than ANYONE.  It was Democrats who refused to regulate Fannie Mae and Freddie Mac when George Bush and later John McCain repeatedly pleaded for such regulation and reform of the out-of-control agencies.  It was Democrats like Franklin Raines who were running Fannie and Freddie when all the policies that led us down the road to hell were imposed, just as it was Democrats who were running Fannie and Freddie when the fecal matter started hitting the rotary oscillator.

It was a Democrat who said that everything was fine with Fannie and Freddie less than TWO MONTHS before they completely collapsed:

REP. BARNEY FRANK, D-MASS, July 14, 2008: I think this is a case where Fannie and Freddie are fundamentally sound, that they are not in danger of going under. They’re not the best investments these days from the long-term standpoint going back. I think they are in good shape going forward.

And I think that anybody who respects what you think is a deluded and deranged dumbass, Mr. Frank.

Fannie Mae and Freddie Mac are now in control of 96.5% of all mortgages, for those who don’t think they’re all that important in their role of creating the mortgage meltdown.  It was Fannie and Freddie that bundled all the bad mortgages into mortgage-backed securities and then sold the mortgage-backed and debt securities to domestic and international capital investors under the illusion that they were guaranteed by the federal government.

Fannie and Freddie were a $5 trillion wasted boondoggle BEFORE things got even worse.  They exist only to help liberals and lose money.  And there’s no end in sight.

How bad is it???

Just how bad is the news at Fannie/Freddie? On Friday morning, Moody’s downgraded their outstanding preferred stock 5 notches from A1 to Baa3 (a slight gradation above junk) and their Bank Financial Strength Ratings (BSFR) to D+ from B- (one/half notch above D, which is reserved for companies in default). […]

When the Treasury peels back the onion, I believe they will find a hornet’s nest. I think we will see an initial bailout of $100 billion or so, with 2/3-3/4 going to Fannie (as it is a larger organization). The scenario I foresee however, just as happened at Merrill Lynch, Lehman Brothers and Morgan Stanley, is that they came to the financing window expecting to have borrowed enough, but then find they have to keep coming back repeatedly until the buyers go away or until “We The People” have thrown at least $500 billion at Fannie/Freddie to get them back on their feet again. This will also likely take an Act of Congress to raise the Treasury’s Debt ceiling quite dramatically

The United States used to be the greatest nation in the history of the world; now we’re more like a chicken that has had its head cut off, but is too disconnected from reality to know that it’s already dead.

Our deficits are now four times as high as they were a year ago, and they are twice as high as Obama said they would be in the very worst case scenario.

We’re screwed.  Frankly, America voted to be screwed when it elected Barack Obama and Democrats.

13 States Have ALREADY Sued Over ObamaCare Obomination

March 23, 2010

13 states have already filed suit to stop the monster of ObamaCare.  A total of 38 states (76%) are now working on their own versions of “the spirit of ’76.”

From the AP:

TALLAHASSEE, Fla. -Attorneys general from 13 states sued the federal government Tuesday, claiming the landmark health care overhaul is unconstitutional just seven minutes after President Barack Obama signed it into law.
The lawsuit was filed in Pensacola after the Democratic president signed the bill the House passed Sunday night.
“The Constitution nowhere authorizes the United States to mandate, either directly or under threat of penalty, that all citizens and legal residents have qualifying health care coverage,” the lawsuit says.
Legal experts say it has little chance of succeeding because, under the Constitution, federal laws trump state laws.

You DO have to kind of laugh at the propaganda that the AP feels they must insert: “Legal experts say it has little chance of succeeding,” as though every single legal expert has ruled, and the AP merely duly reported.

Bullpuckey.  There are plenty of “legal experts” who think the exact opposite.  And it couldn’t be more dishonest of the Associated Press to imply that such isn’t the case.

One of my favorite “legal experts” who disagrees with the AP’s monolithic assertion is Jay Sekulow, who has argued before the Supreme Court on numerous occasions and frequently won.  In another article which has a rather different slant from the AP’s bias, he had the following to say:

The ACLJ says it will file amicus briefs on behalf of thousands of its supporters in the lawsuits challenging the constitutionality of the health care law by numerous states.

“Most Americans do not want this plan. That includes millions of pro-life Americans who don’t want to be forced to purchase a health care package that funds abortion,” ACLJ chief counsel Jay Sekulow told LifeNews.com.

“We support the litigation being initiated by a number of states and plan to file amicus briefs in those cases representing thousands of our members. This health care law should not be forced upon the American people. We believe the courts will agree,” he added.

Sekulow added: “These legal challenges will be numerous and occur in many jurisdictions. The constitutional issues at stake are significant and it’s likely this will end up before the Supreme Court of the United States.”

I’m not trying to present Jay Sekulow as the greatest of all “legal experts.”  But there is no question that Sekulow IS a legal expert.  His American Center for Law and Justice has been called a “powerful counterweight to the ACLU” by Time Magazine.

Oh, there are other ones, such as Dr. Randy Barnett, who argues regarding ObamaCare that:

Such a doctrine would abolish any limit on federal power and alter the fundamental relationship of the national government to the states and the people. For this reason it is highly doubtful that the Supreme Court will uphold this assertion of power.

How many legal experts am I supposed to produce to show that the Associated Press is full of crap?

One of the constitutional issues derives from the 10th Amendment, which reads:

The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.

Now, I know that liberals are often able to find penumbras and emanations that justify them to do pretty much whatever the hell they want to justify, but you show me where the Constitution gives the federal government the right to ram ObamaCare down our throats or to force citizens to purchase insurance just for the privilege of breathing.

The other issue is the commerce clause (Article I, Section 8, Clause 3) of the Constitution:

[The Congress shall have power] To regulate Commerce with foreign Nations, and among the several States, and with the Indian tribes;

Now again, you need one hell of a penumbra and emanation to see in this clause the right for the federal government to force private citizens to purchase insurance from private companies.

It’s one thing to say the federal government can regulate, quite another to assert that the federal government has the power under this clause to force whoever they want to buy whatever they want from whoever they want.  Unless “commerce” is to be defined as a transaction that takes place at the point of a gun aimed at the purchaser’s chest, with the government saying, “Buy or die.”

This is what Dr. Randy Barnett was getting to: to grant the constitutionality of ObamaCare amounts to a massive increase in federal power, which would make the states and the people vassals and the federal government a tyrant.  It would no longer make sense to ask what the federal government can do under the commerce clause; it would only make sense to ask, “Is there anything the federal government CAN’T do under the commerce clause?” And the answer would be basically no.

The CBO, in a more honorable day, stated this abuse of federal power quite clearly when it responded to the individual mandate that Bill Clinton sought to impose:

A mandate requiring all individuals to purchase health insurance would be an unprecedented form of federal action. The government has never required people to buy any good or service as a condition of lawful residence in the United States. An individual mandate would have two features that, in combination, would make it unique. First, it would impose a duty on individuals as members of society. Second, it would require people to purchase a specific service that would be heavily regulated by the federal government.”

One of the interesting things about ObamaCare is that it never even attempts to state the cost of the individual mandates.  That figure is nowhere found in the CBO score.  It isn’t deemed a “tax” because the federal government doesn’t take the money.  Rather, you are forced to give your money to a private insurance company.

It is a fact that ObamaCare represents a massive unprecedented takeover of not only our health care system, but of our way of life, by the federal government.  Nothing like this has EVER been done in our entire history.  And Democrats frankly don’t care about this abuse of our history, our laws, and our way of life because they have always looked to the socialism, Marxism, and fascism of Europe as their model.

The one thing I can take some hope in is that the Supreme Court still has a 5-4 majority of conservative justices.  I expect those justices to recognize that Barack Obama shouldn’t have unlimited power as the head of the federal government to impose his will upon the states and upon the American people.

And Obama certainly didn’t do his standing with Justice Samuel Alito or Chief Justice John Roberts when he contemptuously demonized the Supreme Court at his last State of the Union.

Let me ask one final question: suppose you are a liberal, and you want ObamaCare.  Are you willing to take in trade for that a Republican president and Republican Congress enjoying this unprecedented federal power?  It is increasingly obvious that Republicans are going to take back the House and Senate in the 2010 election.  You’d better realize that your support of ObamaCare now means you will be voting in favor of the “Hunt Every Democrat Down With Dogs And Burn Them Alive Act” after we take back the White House and do unto you twice what you did unto us.

Democrat Rep. Alcee Hastings said,

‘There ain’t no rules around here — we’re trying to accomplish something.’ And therefore, when the deal goes down, all this talk about rules, we make ‘em up as we go along…”

You Democrats might be mocking us now, but just you wait until you see what OUR interpretation of “There ain’t no rules around here” looks like.  You will have opened the door to your own future payback.  You just wait until we have our chance to use the raw, naked power of government to impose our very righteous anger back on you.

I submit that neither side should want the kind of unprecedented federal power that will be necessary to implement ObamaCare.

With Eyes Finally Wide-Open, Reconsider Why The Economy Collapsed In The First Place

December 31, 2009

We are now able to see that from the very beginning of the Obama administration, the Republican Party has again and again demonstrated that they were completely right and Democrats were completely wrong.  Whether you look at the stimulus, cap-and-trade, bogus climate change claims, health care, or terrorism, Americans now solidly agree that Republicans were represent the people; and that Democrats do NOT represent the people.

Right now, a solid plurality of Americans thinks the stimulus (that 99% of Republicans voted against) harmed the economy.  And the people are starting to realize what an ideological partisan slush fund the stimulus was (also predicted by Republicans).

When Obama was elected, unemployment was at 6.6%.  He promised that his stimulus would prevent unemployment from reaching 8%.  And now it’s at 10%, and it’s going to get higher.

Obama demagogued Bush’s spending.  But Bush deficits -bad as they were – were only 2-3% of GDP.  Obama’s deficits are 12.8% of GDP – which is five to six times higher.

Now that your eyes are finally beginning to open wide and see Obama and the Democrats for who and what they truly are, let me point out a few things about the past collapse.

What Americans – and particularly Americans who actually vote – need to realize is that Democrats were trying to do this kind of crap and play these kind of games all along.  They were trying to do it throughout the Bush years, when George Bush tried 17 times to regulate the out of control and Fannie-Mac-and-Freddie-Mae-dominated housing mortgage markets – and Democrats thwarted him over and over again.

Why do I mention the Government Supported Enterprises (GSEs) Fannie Mae and Freddie Mac?  Because they were at the very heart of the mortgage meltdown.

The LA Times writes on May 31, 1999 that:

Lenders also have opened the door wider to minorities because of new initiatives at Fannie Mae and Freddie Mac–the giant federally chartered corporations that play critical, if obscure, roles in the home finance system. Fannie Mae and Freddie Mac buy mortgages from lenders and bundle them into securities; that provides lenders the funds to lend more. . . .

LaVaughn M. Henry, Ph.D. Director, U.S. Economic Analysis The PMI Group, Inc. December 9, 2008, pointed out:

The Role of the GSEs is to provide liquidity and stability to the U.S. housing and mortgage markets. Step 1 Banks lend money to Households to purchase and refinance home mortgages Step 2 The GSEs purchase these mortgage from the banks Step 3 GSEs bundle the mortgages into mortgage-backed securities Step 4 GSEs sell mortgage-backed and debt securities to domestic and international capital investors Step 5 Investors pay GSEs for purchase of debt and securities Step 6 GSEs return funds to banks to lend out again for the issuance of new mortgage loans.

It was steps 3-5 that messed us up.  Fannie and Freddie bought mortgages – including many mortgages that poor and minority homeowners couldn’t begin to afford under the mandate of the Community Reinvestment Act – bundled them such that no one could assess their risk, and then sold them to private companies such as Bear Stearns and Lehman Brothers.  Fannie and Freddie were exempt from SEC [Securities and Exchange Commission] regulations.   The GSEs could bundle up mortgages, which would then be rated AAA, with no requirement to make clear what was in the bundle.  Private companies believed that the bundled securities were guaranteed, since they were essentially being sold by the federal government.

But there were many who predicted that this system – created and maintained by Democrats – could explode.

From the New York Times in September 30, 1999:

In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980’s.“

”From the perspective of many people, including me, this is another thrift industry growing up around us,”
said Peter Wallison a resident fellow at the American Enterprise Institute. ”If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.” . . .

And that is precisely what happened.  There was a downturn (and there will ALWAYS be downturns, won’t there?), and Fannie and Freddie were so leveraged that they collapsed and caused the collapse of the entire industry.  Financial experts anxiously pointed out that a decline of only 1.3% would bankrupt Fannie and Freddie because they were leveraged to the tune of 60%? to 78%.

Democrats were the priests and acolytes of the GSE system.  They protected it, and they were the ones who pressed all the buttons and pulled all the levers.

Keven Hasset concludes an article titled, “How the Democrats Created the Financial Crisis“, concludes by saying:

Now that the collapse has occurred, the roadblock built by Senate Democrats in 2005 is unforgivable. Many who opposed the bill doubtlessly did so for honorable reasons.  Fannie and Freddie provided mounds of materials defending their practices.  Perhaps some found their propaganda convincing.

Watch this video showing how Goerge Bush and John McCain repeatedly warned of the economic collapse (length=4 min):

Watch this video of Democrats protecting and covering for Fannie Mae (length=8 min):

Here’s a video entitled “Burning Down the House: What Caused Our Economic Crisis?” (length=11 min)

And then we find that Barack Obama was in bed with Fannie and Freddie and their shockingly risky policies:

Who really exploded the economy in 2008, liberals or conservatives? Who do you think?  The liberal mainstream media allowed Democrats to blame George Bush simply because he was president at the time, never mentioning that the Democrats who controlled both the House and the Senate relentlessly opposed everything Bush tried to do; and it allowed Democrats to not have to account for the fact that they’d been in complete control of both the House and the Senate.  But remember that the economy went from outstanding to collapsed during the two years (2006-2008) that the Congress was under Nancy Pelosi and Harry Reid.  The unemployment rate was 4.4% when Republicans last ran Congress.  What is it now, three years of Nancy Pelosi and Harry Reid later?

Few people understand how huge Fannie and Freddie are, or how deeply burrowed they are in the mortgage industry.  But let me put it to you this way: the federal government now underwrites 9 out of 10 residential mortgages.

John McCain tried to warn us in 2006:

I join as a cosponsor of the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190, to underscore my support for quick passage of GSE regulatory reform legislation. If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole.

But he was ignored.

When George Bush first tried to regulate an already out-of-control liberal bastion of Fannie and Freddie, Barney Frank led the united Democrat opposition and said:

”These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis,” said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ”The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.”

And just before Fannie and Freddie collapsed and brought down the entire housing mortgage industry with it creating the economic meltdown, Barney Frank – continuing to stop any regulation of Fannie and Freddie – said this:

REP. BARNEY FRANK, D-MASS.: I think this is a case where Fannie and Freddie are fundamentally sound, that they are not in danger of going under. They’re not the best investments these days from the long-term standpoint going back. I think they are in good shape going forward.

Fannie Mae and Freddie Mac went completely bankrupt, and had to be bailed out by the government.  It had been Fannie and Freddie which had the sole authority to buy mortgages, bundle them into the mortgage-backed securities which ultimately exploded, and sell those securities to private companies (as I have already shown).  Just as it was Fannie and Freddie which had been the seller of subprime loans.

Democrats demonized and demagogued Republicans by blaming them for a mess that DEMOCRATS created.  And Republicans were to blame primarily because they didn’t do enough to stand up and courageously oppose the disaster that Democrats had created

A couple weeks ago the New York Times reported that Fannie and Freddie would get a whopping $800 billion to cover losses incurred under the Obama administration (and see another article on this $800 billion fiasco here):

Fannie Mae and Freddie Mac, which buy and resell mortgages, have used $112 billion — including $15 billion for Fannie in November — of a total $400 billion pledge from the Treasury. Now, according to people close to the talks, officials are discussing the possibility of increasing that commitment, possibly to $400 billion for each company, by year-end, after which the Treasury would need Congressional approval to extend it. Company and government officials declined to comment.

But it turned out that that was wrong.  Fannie Mae and Freddie Mac weren’t going to get $800 billion.  That won’t be nearly enough.  They are going to get an unlimited amount of funding (potentially in the trillions):

From the Wall Street Journal, December 26, 2009:

The Obama administration’s decision to cover an unlimited amount of losses at the mortgage-finance giants Fannie MaeFreddie Mac over the next three years and stirred controversy over the holiday.

A Newsbuster article, entitled, “Relief Without Limits,” provides an excellent resource of facts and commentary on this incredible and terrifying development.

Remember the righteous outrage of Democrats and the Obama administration over the compensation of CEOs of private banks?  The Democrats don’t seem to mind when Fannie and Freddie execs get huge compensation packages.

The monster rises yet again, and larger and uglier and more dangerous than it has ever been before.  And just like the first time it collapsed, Democrats are in total control of it.  Fannie and Freddie stock went up significantly as the news was announced.  Watch it dwindle back to zero by the end of 2010.

We’re facing another tsunami of foreclosures in 2010.  And three mortgages get worse for every single one that improves.

And even uber-liberal sources like the Huffington Post are acknowledging that Obama’s policies have utterly failed:

Anatomy of a Failed Foreclosure Program (dated 12-07-09)

Just how badly is President Obama’s $75 billion foreclosure program working out? Consider these newly-released numbers: Out of every 100 homeowners who came to JPMorgan Chase for help under the program, just 15 have or will likely receive a permanent payment reduction.

What happened to the other 85? For every 100 trial plans initiated from April through September 2009 under the Home Affordable Modification Program:

  • 29 borrowers did not make all required payments under their trial plan;
  • 20 borrowers did not submit all documents required for underwriting;
  • 31 borrowers submitted all required documents but the documents did not meet HAMP underwriting standards, due to such things as missing signatures or nonstandard formats;
  • 4 borrowers were or are likely to be rejected for undisclosed reasons;
  • 1 borrower will not or is not likely to get their payment lowered.

The data comes from the prepared remarks bank officials plan to make Tuesday before the House Financial Services Committee. The testimony was posted Monday on the committee’s website.

It adds up to a brutal illustration of just how the HAMP program, which is supposed to reduce troubled homeowners’ monthly payments to 31 percent of their income, is failing.

Failing.  As in “failing grade.”  As in failed Obama presidency.

You still don’t know the half of it.  Obama’s $75 billion mortgage modification bailout is costing taxpayers an average of $870,967 PER HOUSE when the average house is worth only $177,900.

Famed analyst Meredith Whitney predicted that unemployment would rise to 13% or higher primarily due to the failure to contain the failure to deal with the mortgage industry:

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. […]

“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.”

Under the radar, and against the objections of Republicans that was primarily covered only by C-SPAN, Democrats implemented and then fiercely protected policies that were almost guaranteed to doom our economy.  When the meltdown finally occurred, the same Democrats who created the black hole in the first place flooded the airwaves and blamed George Bush – whom they had already vilified and brought down through unrelenting attacks using the Iraq War as their main foil.

The propaganda worked, and Barack Hussein Obama – a politician who is more beholden to corrupt and frankly un-American entities like Fannie Mae and Freddie Mac, ACORN, and the SEIU than any president in history.

And now we’re truly paying for our stupidity.

Obama is taking the same policies that imploded our economy, and multiplied them by a factor of ten.  It’s only a matter of time before his policies create a rotten floor for our economy to plunge through all over again — only this time far, far worse than before.

Someone might say, “But look, Obama is rebuilding the economy.  He’s brought back the stock market, and things are getting better.”

First of all, they really aren’t getting better, and the Dow can drop a lot faster than it can rise (history lesson: there were several rises and crashes of the stock market during the Great Depression).  And second of all, if you loan me a few billion dollars to spread around, I can temporarily bring up the production of my local economy, too.

Just don’t expect either me or Barack Hussein to repay the loan when it comes due.

Obama has been compared – and has compared himself – to FDR.  We now know that for all of FDR’s popularity, his “reforms” during the Great Depression were massive failures which actually kept the United States in depression for seven years longer than if he’d done nothing at all.

Henry Morganthau, FDR’s Treasury Secretary, said in May 1939, after nearly seven years in office:

“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!”

In believing the propaganda and lies of the Democrats and Barack Obama, Americans may have well placed the nation in a hole that it very may well not be able to climb out of.

Biden: ‘We Misread the Economy’ – And it’s all the Republicans’ Fault

July 8, 2009

Some distant day, many scientists believe, the earth will be devoid of human life due to some cosmic catastrophe or – ultimately – due to our depleted sun transforming into a red giant. The truly good news about such an otherwise bleak future is that the Obama administration will presumably no longer be able to blame Republicans for the economy that they “inherited.”

Biden: We ‘Misread the Economy’

July 05, 2009

Big admission from Vice President Joe Biden today.

“The truth is, we and everyone else misread the economy,” Biden told me during our exclusive “This Week” interview in Iraq.

Biden acknowledged administration officials were too optimistic earlier this year when they predicted the unemployment rate would peak at 8 percent as part of their effort to sell the stimulus package. The national unemployment rate has ballooned to 9.5 percent in June — the worst in 26 years.

“The truth is, there was a misreading of just how bad an economy we inherited,” said Biden, who is leading the administration’s effort to implement it’s $787 billion economic stimulus plan.

“Now, that doesn’t — I’m not — it’s now our responsibility. So the second question becomes, did the economic package we put in place, including the Recovery Act, is it the right package given the circumstances we’re in? And we believe it is the right package given the circumstances we’re in,” he told me.

The vice president argued more time is needed for the stimulus to work.

“We misread how bad the economy was, but we are now only about 120 days into the recovery package,” he said. “The truth of the matter was, no one anticipated, no one expected that that recovery package would in fact be in a position at this point of having to distribute the bulk of money.”

Biden didn’t rule out a second government stimulus package, but downplayed calls from Nobel Prize-winning economist Paul Krugman this week that a second stimulus will be needed.

I pressed the vice president, who is also leading the administration’s middle-class task force, on whether he’d rule out a second stimulus package.

“So, no second stimulus?” I asked.

“No, I didn’t say that,” Biden said, “I think it’s premature to make that judgment. This was set up to spend out over 18 months. There are going to be major programs that are going to take effect in September, $7.5 billion for broadband, new money for high-speed rail, the implementation of the grid — the new electric grid. And so this is just starting, the pace of the ball is now going to increase.”

Let’s not tell anyone that liberal Paul Krugman’s warning that we need a second stimulus is secret code for, “The first stimulus didn’t work worth squat, so let’s throw more money down the toilet.” And let’s for DAMN sure not tell anyone that unemployment benefits are going to be ending for workers starting in September and things will truly begin to increasingly suck after that as the unemployment rate grows like “the other ‘green shoot'” up and up and up.

Joe Biden says, “We and everyone else misjudged the economy.” No, Joe, it just aint so. Just you and your stupid liberal friends misjudged the economy. Don’t drag anyone else into your ignorance. Business professionals back in October predicted that Obama would literally bankrupt the country within three years if he was elected. Republicans (such as Paul Ryan) widely predicted the terribly flawed and terribly partisan pork-laden stimulus would fail – which is why only three out of 239 Republicans voted for it (and you can actually make that TWO out of 239, given that one of the three “Republicans” was RINO traitor-turned Democrat Arlen Specter).

Please don’t try to involve conservatives in your party’s stupidity, Joe. It aint right to lie.

The fact is, the porkulus is a complete failure that will cost the American people’s children’s children’s children $3.27 TRILLION and produce NOTHING.

And the fact is, when the Obama White House assured the American people that his stimulus would save the day, he assumed responsibility for the economy. It is HIS baby now, and he can’t keep racking up trillions and trillions and trillions of dollars in stupid and useless spending that will literally “bankrupt the country” and blame the fact that it isn’t working on Republicans.

It’s also rather funny that Vice President Biden would say “there was a misreading of just how bad an economy we inherited.” Please realize that for the last two years – and most definitely for the last eight or nine months – Barack Obama and Joe Biden have been comparing the present economy to the Great Depression. And now they are claiming they didn’t know how bad it was? What’s worse than the Great Depression? It is beyond ludicrous that these people can spend all this time demonizing the economy as the worst imaginable, and then argue they didn’t know that it was that bad.

Here are the opening two paragraphs from a February 13, 2009 Wall Street Journal piece that proves the lie of Biden’s remark:

President Barack Obama has turned fearmongering into an art form. He has repeatedly raised the specter of another Great Depression. First, he did so to win votes in the November election. He has done so again recently to sway congressional votes for his stimulus package.

In his remarks, every gloomy statistic on the economy becomes a harbinger of doom. As he tells it, today’s economy is the worst since the Great Depression. Without his Recovery and Reinvestment Act, he says, the economy will fall back into that abyss and may never recover.

How can Biden, Obama, or Democrats claim they didn’t realize how bad the economy really was after their previous constant fearmongering of the economy?

And the most famous and oft-used line, of course, is that Democrats keep claiming that they “inherited” the economy.

For the record, the Dow Industrial Average was at 11,986.04 on November 3, 2006 when Republicans were last in control of Congress. The unemployment rate for October of 2006 was at 4.4% when Republicans last ran things. As I write this, the Dow is at 8163.60 (on July 7), and the unemployment rate is at 9.5%, respectively. Nancy Pelosi and Harry Reid have been running the House and the Senate for the last two years, and a fine job of running the country into the ground they’ve done.

Just why is it that Democrats can have control over both the House and Senate while an economy goes from prosperity to impoverishment, and still bear no responsibility for such a result? But that’s the narrative, and both the Democratic Party and the mainstream media stuck to their scripts as though the lines had been written by Shakespeare himself. Do you see the great shining lie that you’ve been told, and told over and over again?

Since the Democrats have been in charge on both branches of Congress, the housing market has collapsed, the banks have collapsed, Fannie and Freddie have collapsed, the auto industry has collapsed, and things have generally turned to the fecal matter that Pelosi’s and Reid’s head are full of, generally.

But, hey, let’s keep blaming everything on Republicans, anyway. When you have an electorate so completely ignorant that 57.4% of voters weren’t even able to identify which party controlled Congress, such demagogic claims work.

The ONLY thing that Democrats actually “inherited” was moron genes, a talent for demagoguery and deceit, and Nancy Pelosi and Harry Reid (please see “moron genes”).

Now, the OTHER thing that Democrats love to claim was that Republicans are to blame for the economic disaster because Republican George Bush was President when it happened. And we are all to conveniently forget the fact that such reasoning should likewise make Democrat Barack Obama – who is president RIGHT NOW – is thereby responsible for the current state of the disaster that he nonetheless keeps blaming on Bush.

On what possible grounds are we to blame Bush? What is it that Bush did or didn’t do that created our disaster, and which Democrats who controlled both the House and the Senate are somehow absolved from having done or failed to do? Bush, we have been repeatedly lectured, failed to regulate the housing finance industry. And that lack of regulation caused the financial industry to self-destruct. Because the government is far better able to run things than the private sector, as we all know.

Well, wrong, wrong, and wrong, respectively. But let’s stick with the Democrats’ chief script item and consider just who truly failed to regulate the housing finance industry when it actually would have done some good, and who was really in bed with the worst players who created the crisis in the first place.

First of all, Bush TRIED to regulate the housing finance industry. And the ONLY thing that kept him from succeeding was DEMOCRATS.

Let’s go back to September 11, 2003, to see what the New York Times had to say. The article begins:

The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.

Under the plan, disclosed at a Congressional hearing today, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry.

The new agency would have the authority, which now rests with Congress, to set one of the two capital-reserve requirements for the companies. It would exercise authority over any new lines of business. And it would determine whether the two are adequately managing the risks of their ballooning portfolios.

And it ends:

Significant details must still be worked out before Congress can approve a bill. Among the groups denouncing the proposal today were the National Association of Home Builders and Congressional Democrats who fear that tighter regulation of the companies could sharply reduce their commitment to financing low-income and affordable housing.

”These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis,” said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ”The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.”

Representative Melvin L. Watt, Democrat of North Carolina, agreed.

”I don’t see much other than a shell game going on here, moving something from one agency to another and in the process weakening the bargaining power of poorer families and their ability to get affordable housing,” Mr. Watt said.

Go back to the phrase at the beginning of the article: “the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.” That would refer to the Clinton Administration’s aggressive push to put even more future poison in the fangs of the terrible Community Reinvestment Act.

Democrats blocked the passage of the Bush attempt to regulate the housing finance industry. They were the ones who killed regulation, not Republicans. They said there wasn’t a problem. They said that everything was just peachy dandy.

Democrats essentially say that the American people should blame George Bush for not being able to stop Democrats from being stupid, incompetent, and depraved vermin. But how can anyone stop Democrats from being stupid, incompetent, and depraved vermin? It would be like trying to stop the wind from blowing.

Bush and Republicans tried again to REGULATE the housing finance industry in 2005. John McCain wrote a passionate letter warning of an impending collapse of the housing finance industry and urging passage of the bill (specifically, the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190). Butwithout a single Democrat vote, the bill was doomed if brought to the floor for the critical 60-vote cloture.” Housing finance reform died a death by Democrat.

As late as JUST BEFORE THE WHOLE HOUSING FINANCE INDUSTRY COMPLETELY COLLAPSED, Democrat Barney Frank is on the record saying:

REP. BARNEY FRANK, D-MASS.: I think this is a case where Fannie and Freddie are fundamentally sound, that they are not in danger of going under. They’re not the best investments these days from the long-term standpoint going back. I think they are in good shape going forward.

You can watch Democrats fiddling with the economy just before it burned here (Youtube).

Even Bill Clinton – hardly a Republican source – blamed Democrats and NOT Republicans for refusing to regulate the housing finance industry:

Bill Clinton on Thursday told ABC’s Chris Cuomo that Democrats for years have been “resisting any efforts by Republicans in the Congress or by me when I was President to put some standards and tighten up a little on Fannie Mae and Freddie Mac.”

So the bottom line is this: Democrats blocked reform and regulation. They denied there was a problem. They continued to deny that there were any problems, and continued to block reform and regulation until right before the whole economy went down the drain.

And then they blamed the Republicans for the mess that they had created, refused to fix, and denied even existed in the first place.

What is utterly beautiful in its moronic perfection is that Barney Frank is now trying to do to the condominium market what he did to the housing market by forcing lenders to make risky loans all over again.

Okay, okay, so it was the Democrats who actually screwed up the universe, but you still have to admit that the Obama Administration inherited the problem. It clearly wasn’t in power when the fit hit the shan. Right?

Not quite so fast.

Technically, the Obama Administration is obviously not be to blame, having only began its hopefully very short life on January 20, 2009. But Barack Obama personally? You should probably know what a nasty piece of work your president was before he became your president.

Barack Obama as a Senator took more money from Fannie Mae and Freddie Mac than anybody except his fellow scumbag and fellow Democrat Chris Dodd (who had direct oversight as Chairman of the Senate Banking Committee). Obama also took more money than disgraced and bankrupted Lehman Brothers than anyone but his fellow sleazeball and fellow Democrat Chris Dodd. Now, maybe you’re one of those people who believe that corrupt and soon-to-be-bankrupted organizations give buttloads of money to politicians just because they’re feeling generous. But people who actually live in the real world understand that Fannie, Freddie, and Lehman Brothers gave money to the politicians whom they believed would be best for their corporate asses and their corporate assets.

Barack Obama as candidate for president made Penny Pritzker – who was at the very EPICENTER of the subprime loan fiasco – his national finance chair. She paid a “fine” of $460 million dollars to basically buy her way out of prison for her part in the early beginnings of the collapse that would eventually extend to the entire economy. Penny Pritzker was to the stability of the housing finance industry on Wall Street what Freddie Krueger was to the dreams of teen agers on Elm Street; just what kind of Faustian deal do you believe the politician who took more money in less time from the worst players in the crisis than anyone bar none struck to have knife-gloved Penny Krueger open up her Rolodex full of demons?

Barack Obama as a private citizen was one of the ACORN lawyers who sued Citibank in 1994 and forced – FORCED – them to reduce their credit standards and make extremely housing mortgage loans to minorities who would subsequently prove unable to pay them. And the ACORN suit took advantage of the openings created by President Bill Clinton in the 1990s. The result of that lawsuit changed the housing finance industry forever afterward – and basically doomed it as soon as housing prices started to drop.

So as President Barack Obama may have “inherited” the crisis; but as a private citizen, as a Senator, and as a candidate for President, he was at the very center of the mess that created the crisis right up to his giant Dumbo ears.

And as Obama continues to blame his inability to handle the economy on what he “inherited,” let us not forget that it was Barack Obama who swore up and down that his Generational Theft Act of 2009 would fix the economy – NOT Republicans and NOT George Bush – and it was his economic plan that completely failed to produce the promised results.

It was Barack Obama who put his credibility behind a plan that his administration promised would hold unemployment down below 8% and it was Barack Obama who has presided over an unemployment rate that is now 9.5% and rising. The Congressional Budget Office predicted that unemployment would only have gone to 9% by 2010 had we done nothing at all. And nothing would have been a heckuva lot cheaper than $3.27 trillion. I, for one, assure you that I could have sent the economy crashing for a lot lower price tag that Barack Obama has charged you.

The unemployment rate in November – when Barack Obama was elected – was a Lilliputian (by comparison to the gigantic mess Obama has since made of the economy) 6.7%. It was 7.2% a few months later when his administration assured the American people that he could keep unemployment under 8% if his stimulus plan was passed. It is now, I should say again, at 9.5% – and it many experts expect it to be 11% by next summer.

Obama’s answer is still MORE colossal spending. The first stimulus – advertised as a $787 billion package but actually costing $3.27 trillion according to the Congressional Budget Office – is now said to have been too low. We need more porkulus, they tell us. A lot more. We need to borrow more massive debt and pile up more massive deficits that will crush our economy with staggering interest payments in the very near future and ultimately cause a complete collapse of our way of life. We need to nationalize our health care so it will be more like the $86 trillion-in-the-hole runaway freight train to destruction that Medicare is. And we need cap-and-trade legislation that will cap our productivity and trade our prosperity to ensure that our economy can never hope to be productive again.

Keep blaming Bush. Keep blaming Republicans. Keep blaming “failed conservative policies.” Blame ANYONE and ANYTHING but Barack Hussein Obama and the Democratic Party that is now in total control of everything.

Just let me shout in your face that by doing so you will help create an economy that will make the Great Depression look like prosperity when the policies that you so stupidly supported implode into staggering debt and even more staggering hyperinflation. And you and your children will starve shoeless in the cold while food riots and tax rebellions erupt all around you as your once great nation is reduced to banana republic status.

Obama Backlash Beginning: Montana Defies Administration With In-Your-Face Gun Law

May 7, 2009

The state of Montana has drawn a line in the sand by passing a new gun law that virtually thumbs its nose at the federal government’s encroachment on state and individual rights.  If the tea parties were the first shot across the bow of liberal fascism, this is surely the second – and it’s being done with heavy artillery.

Liberals have been employing “sanctuary cities” across the nation that flouted federal immigration laws.  Now conservatives are taking that same idea to have “sanctuary states” to protect their citizens’ 2nd Amendment rights against liberal tyranny.  And Montana, Utah, and Texas are leading the nation in standing up to the federal government’s unconstitutional laws in direct violation of states’ rights.

Montana Governor Brian D. Schweitzer, for what it’s worth, is a Democrat.

Montana fires a warning shot over states’ rights
State is trying to trigger a battle over gun control — and make a point

updated 4:54 p.m. ET April 29, 2009

HELENA, Mont. – Montana is trying to trigger a battle over gun control — and perhaps make a larger point about what many folks in this ruggedly independent state regard as a meddlesome federal government.

In a bill passed by the Legislature earlier this month, the state is asserting that guns manufactured in Montana and sold in Montana to people who intend to keep their weapons in Montana are exempt from federal gun registration, background check and dealer-licensing rules because no state lines are crossed.

That notion is all but certain to be tested in court.

The immediate effect of the law could be limited, since Montana is home to just a few specialty gun makers, known for high-end hunting rifles and replicas of Old West weapons, and because their out-of-state sales would automatically trigger federal control.

Legal showdown
Still, much bigger prey lies in Montana’s sights: a legal showdown over how far the federal government’s regulatory authority extends.

“It’s a gun bill, but it’s another way of demonstrating the sovereignty of the state of Montana,” said Democratic Gov. Brian Schweitzer, who signed the bill.

Carrie DiPirro, a spokeswoman for the federal Bureau of Alcohol, Tobacco, Firearms and Explosives, had no comment on the legislation. But the federal government has generally argued that it has authority under the interstate commerce clause of the U.S. Constitution to regulate guns because they can so easily be transported across state lines.

Guns and states’ rights both play well in Montana, the birthplace of the right-wing Freemen militia and a participant in the Sagebrush Rebellion of the 1970s and ’80s, during which Western states clashed with Washington over grazing and mineral extraction on federal land.

Montana’s leading gun rights organization, more hardcore than the National Rifle Association, boasts it has moved 50 bills through the Legislature over the past 25 years. And lawmakers in the Big Sky State have rebelled against federal control of everything from wetland protection to the national Real ID system.

‘Made in Montana’
Under the new law, guns intended only for Montana would be stamped “Made in Montana.” The drafters of the law hope to set off a legal battle with a simple Montana-made youth-model single-shot, bolt-action .22 rifle. They plan to find a “squeaky clean” Montanan who wants to send a note to the ATF threatening to build and sell about 20 such rifles without federal dealership licensing.

If the ATF tells them it’s illegal, they will sue and take the case all the way to the U.S. Supreme Court, if they can.

Similar measures have also been introduced in Texas and Alaska.

“I think states have got to stand up or else most of their rights are going to be buffaloed by the administration and by Congress,” said Texas state Rep. Leo Berman.

Critics say exempting guns from federal laws anywhere would undermine efforts to stem gun violence everywhere.

Hot Air has the text of the law, titled:

AN ACT EXEMPTING FROM FEDERAL REGULATION UNDER THE COMMERCE CLAUSE OF THE CONSTITUTION OF THE UNITED STATES A FIREARM, A FIREARM ACCESSORY, OR AMMUNITION MANUFACTURED AND RETAINED IN MONTANA; AND PROVIDING AN APPLICABILITY DATE. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

This is defiance as a thing of art:

defiance_mouse_eagle

It is a determination to keep fighting for one’s freedom no matter how hopeless things might look:

defiance_frog_stork2

And why is this level of defiance necessary? An image worth a thousand curses suffices by way of explanation:

obama_yes-we-can_1st-amendment

Don’t think this isn’t a direct response to Barack Hussein.

Gun and ammunition sales have soared out of naked fear of Obama.

And for good reason: Obama is pushing a treaty to ban reloading. Liberals are trying to regulate the components of ammunition as explosives and thus restrict ammunition. Liberals in California are nakedly attempting to circumvent the 2nd Amendment by regulating ammunition, hence making guns useless.

And the liberal campaign to deprive Americans of their 2nd Amendment guarantees (even as they discover “penumbras and emanations” in the Constitution that let them kill babies) is only a distant side issue in the massive government takeover of American society. Obama’s massive spending – more than every president from George Washington to George W. Bush COMBINED – will leave this country with an insurmountable national debt that would exceed 82 percent of the overall economy by 2019 and threaten this country’s very survival. We are now on the hook for $12.8 TRILLION dollars in government spending and commitments in the brave new world of the Obama economy.

We’ve got a president who is firing CEOs, stacking boards of directors, changing the rules for the auto manufacturers’ bankruptcy filings in order to favor the unions that supported him over the secured creditors. And if they don’t like it, they are met with frightening threats from the administration and death threats from union members. If that isn’t bad enough, we’ve also got card check on the horizon, which would allow union thugs to intimidate workers into unionizing with the union allowed to know exactly how each worker voted.

We’ve got a president who won’t let banks repay bailout loans (which in many cases were literally forced on them in the first place) so he can continue to impose onerous terms and conditions on them and control what they do and how they do it.

We’ve got a president who is planning to nationalize health care – and the one-sixth of our economy that it represents – even as he moves to impose costly and burdensome cap-and-trade regulations that would (in Obama’s own words) necessarily cause energy prices to soar.

And we’ve got a president who is attempting to nationalize student loans such that private lenders are phased out altogether. If Obama gets his way, the government will loan directly to families and students, making them directly indebted to the federal government. The government will necessarily get to decide which students, which schools, and which academic programs get loans.  An option for students is to repay their loans by means of “national service,” which already precludes any type of religious service whatsoever. The potential of liberal big government harnessing student labor to staff liberal organizations such as ACORN is becoming all-too real.

We have a new administration that moved to criminalize political differences by targeting Bush officials as war criminals, even as returning veterans and pro-life Americans are labeled as “rightwing extremists” in a DHS report sent out to the nation’s law enforcement agencies and police departments.

not-fascism-when-we-do-it3

I’ve been saying something over and over in different ways. What the liberals are doing now will ultimately result in a “rightwing” backlash. What is true in physics is true in politics: for every action there is an equal and opposite reaction. Liberals are pushing and pushing and pushing through one new massive spending program and one new policy after another that will change and undermine this country forever afterward.

Under Obama, terrorism is now called an “overseas contingency operation” and terror attacks are now nothing more than “man-caused disasters.”  In attacking the CIA as a means to attack Bush, Obama has created a depressed, sullen, and angry morale which promises to transfer into “cover your ass” caution and bureaucratic gamesmanship.  He has undermined our security to a shocking degree.  If we are attacked, this country will swing so far to the right so fast it will be absolutely unreal.

But even if we are not attacked, our country will likely implode under its own weight: trillions of dollars of reckless spending will have that effect as our dollar devalues and our interest payments on the debt begin to soar when inflation begins to take its toll.  Ultimately our taxes will skyrocket due to all of this spending.  CBS News has an article from March entitled, “If China Stops Lending Us Money, Look Out.”  Well, guess what?  They’re doing exactly that.  They’re canceling our credit card.

In a poll of chief executive officers taken prior to the election, 74 percent of the executives said they feared “that an Obama presidency would be disastrous for the country.”  And some of the CEOs predicted that “some of his programs would bankrupt the country within three years, if implemented.”  And with the Congress in nearly total Democratic control, they ARE being implemented.

When Obama and the Democrats bankrupt the country and undermine our entire social structure with massive spending programs and massive bureaucracies that cannot be undone, which direction will the country turn?  And how complete will that turnaround be?

Liberals are ignoring one ominous warning of popular outrage after another, claiming that conservatism and the Republican Party are dead.  And they will likely ignore what is going on in Montana – which is led by a Democrat governor – as well.  They are doing so to both their party’s and their country’s peril.

Montana, you’ve done a great thing for liberty, which is freedom from the growing tyranny of the smiley-face-fascist nanny state.

The backlash against big government liberal tyranny is beginning.  And it will become larger and hotter as Obama’s policies take their toll.  Let us hope that the spark turns into a fire before – rather than after – Obama has done too much damage to recover from.

Heritage Foundation: Five Reasons EPA Should Not Deal With Global Warming

April 26, 2009

Five Reasons the EPA Should Not Attempt to Deal with Global Warming
The Heritage Foundation ^ | April 23, 2009 | Ben Lieberman and Nicolas Loris

Posted on 04/26/2009 12:42:44 PM PDT by Conservative Coulter Fan

On April 17, the Environmental Protection Agency (EPA) issued an endangerment finding, saying that global warming poses a serious threat to public health and safety. Thus, almost anything that emits carbon dioxide and other greenhouse gases could be regulated under the Clean Air Act. This is the first official action taken by the federal government to regulate carbon dioxide.

The endangerment finding is the initial step in a long regulatory process that could lead to the EPA requiring regulations for almost anything that emits carbon dioxide. Automobiles would likely be the first target, but subsequent regulations could extend to a million or more buildings and small businesses, including hospitals, schools, restaurants, churches, farms, and apartments. The following five reasons explain why this would be a big, costly mistake.

1. It’s an Economy Killer

Above anything else, any attempt to reduce carbon dioxide would be poison to an already sick economy. Even when the economy does recover, the EPA’s proposed global warming policy would severely limit economic growth.

Since 85 percent of the U.S. economy runs on fossil fuels that emit carbon dioxide, imposing a cost on CO2 is equivalent to placing an economy-wide tax on energy use. The Heritage Foundation’s Center for Data Analysis study of the economic effects of carbon dioxide cuts found cumulative gross domestic product (GDP) losses of $7 trillion by 2029 (in inflation-adjusted 2008 dollars), single-year GDP losses exceeding $600 billion in some years (in inflation-adjusted 2008 dollars), energy cost increases of 30 percent or more, and annual job losses exceeding 800,000 for several years. Hit particularly hard is manufacturing, which will see job losses in some industries that exceed 50 percent.[1]

High energy costs result in production cuts, reduced consumer spending, increased unemployment, and ultimately a much slower economy. But importantly, higher energy prices fall disproportionately on the poor, since low-income households spend a larger percentage of their income on energy.

2. Negligible Environmental Benefit

The extraordinary perils of CO2 regulation for the American economy come with little, if any, environmental benefit. In fact, analysis by the architects of the endangerment finding, the EPA, strongly suggests that a 60 percent reduction in carbon-dioxide emissions by 2050 will reduce global temperature by 0.1 to 0.2 degrees Celsius by 2095.[2]

Some environmental alarmists believe saving the environment should come at any cost, but when the benefit is barely noticeable, such an extreme viewpoint still cannot be justified.

3. Lack of Scientific Consensus

The decision to regulate carbon dioxide and five other greenhouse gases was supported by supposed compelling scientific evidence. For example, EPA administrator Lisa Jackson “relied heavily upon the major findings and conclusions from recent assessments of the U.S. Climate Change Science Program and the Intergovernmental Panel on Climate Change [IPPC].”[3] Additionally, the EPA cited harmful impacts including increased droughts, floods, wildfires, heat waves, and sea level rises as a result of climate change. But the reality is that natural disasters are just that–they occur with or without global warming.

The scientific consensus behind global warming, especially the seriousness of the impacts, is anything but strong. Last December, the U.S. Senate Minority released a report that included 650 dissenting scientists refuting claims made in the IPCC report.[4] That number has grown to over 700, more than 13 times the number of scientists (52) who had a direct role in the IPCC report.

4. Backdoor Policy

The United States Congress has been reluctant to pass any global warming legislation or engage in international climate reduction treaties. Last year’s most noted global warming legislative proposals was S. 2191, the America’s Climate Security Act of 2007, originally sponsored by Senators Joe Lieberman (I-CT) and John Warner (R-VA).

This cap-and-trade bill would have set a limit on the emissions of greenhouse gases, especially carbon dioxide from the combustion of coal, oil, and natural gas. A number of concerns existed, chief among them the impact on already-soaring gasoline prices, and consequently the bill was withdrawn by its Senate supporters after only three days of debate.

While some Members of Congress undoubtedly support the EPA’s attempt to curb global warming, the fact that unelected and unaccountable EPA bureaucrats are trying to bypass legislative efforts makes it all the more objectionable.

Equally indefensible is any attempt to use the threat of EPA regulations to induce Congress into enacting a cap-and-trade bill it would not support otherwise. Members should not be forced to prematurely pass a bill without fully understanding its effects and consequences.

5. Expanded Bureaucracy

Having EPA bureaucrats micromanage the economy, all in the name of combating global warming, would be a chilling shift to a command-and-control system in which EPA officials regulate just about every aspect of the market.

Beyond the costs of such actions, the red tape and permitting delays are almost unfathomable. Though the Administration recently enacted a stimulus bill and touted “shovel ready” construction projects to boost the economy, EPA regulations would essentially assure that a great deal of such economic activity would be held up for months, if not years.

For instance, the National Environmental Policy Act (NEPA) requires federal agencies to file environmental impact statements for EPA review before moving forward with projects. According to the Government Accountability Office, normally it takes a federal construction project an average of 4.4 years to complete a NEPA review. Along with the Clean Water Act’s Section 404 requirements, before a shovel can break ground, it could take 5.6 years for a project to jump through all the normal environmental hoops.[5] Granting the authority for one of the largest and unprecedented regulatory undertakings in U.S. history would greatly expand the EPA’s power.

The kind of industrial-strength EPA red tape that routinely imposes hundreds of thousands, if not millions, of dollars in compliance costs could now be imposed for the first time on many commercial buildings, farms, and all but the smallest of businesses. Not only would these costs and delays hamper the private sector, but the paperwork could paralyze federal and state environmental regulators, drawing resources away from more useful endeavors.

A Dangerous Step

The EPA’s official announcement commences a 60-day public comment[6] period before the agency issues a final ruling. Using the Clean Air Act to regulate CO2 would likely be the most expensive and expansive environmental regulation in history and will bypass the legislative process completely. In essence, the decisions of few will drastically alter the lives of many–all for a change in the Earth’s temperature too small to ever notice.

Ben Lieberman is Senior Policy Analyst in Energy and the Environment and Nicolas D. Loris is a Research Assistant in the Thomas A. Roe Institute for Economic Policy Studies at The Heritage Foundation.


[1]David Kreutzer and Karen A. Campbell, “CO2-Emission Cuts: The Economic Costs of the EPA’s ANPR Regulations,” Heritage Foundation Center for Data Analysis Report No. 08-10, October 29, 2008, at http://www.heritage.org/Research/EnergyandEnvironment/cda08-10.cfm.

[2]David Kreutzer, “The Economics of Cap and Trade,” testimony before the Ways and Means Committee, U.S. House of Representatives, September 18, 2008 at http://www.heritage.org/cda/upload/KreutzerTestimonyTrade.pdf.

[3]Environmental Protection Agency, “Overview of EPA’s Proposed Endangerment and Cause or Contribute Findings for Greenhouse Gases under the Clean Air Act,” April 17, 2009 at http://epa.gov/climatechange
/endangerment/downloads/Determination.pdf
(April 23, 2009).

[4]Marc Morano, “UN Blowback: More Than 650 International Scientists Dissent over Man-Made Global Warming Claims,” U.S. Senate Committee on Environment and Public Works, December 10, 2008, at http://epw.senate.gov
/public/index.cfm?FuseAction=Minority.Blogs&ContentRecord_id=2158072e-802a
-23ad-45f0-274616db87e6
(April 23, 2009).

[5]U.S. Department of Transportation, Federal Highway Administration, “Evaluating the Performance of Environmental Streamlining: Development of a NEPA baseline for Measuring Continuous Performance,” at http://www.environment.fhwa.dot.gov/strmlng/baseline/section2.asp (April 23, 2009).

[6]Comments can be submitted at StopEPA.com, (http://www.stopepa.com/).

Want To Know Why Your Economy Blew Up?

October 11, 2008

Here are two videos.  The first shows footage from a couple of years ago – when regulation would have actually prevented this disaster.  It shows Republicans expressing their concerns over the condition and continuing viability of Fannie Mae and Freddie Mac, and proposing regulations to control these GSEs.  It also shows Democrats claiming that Fannie and Freddie were fine, and blocking regulations.

Why blame Republicans for their “deregulation”?  Who REALLY failed to regulate?

The second video below provides a history lesson that spends some time examining Barack Obama’s role in economic time bomb.

Anyone who takes the time to understand the real roots of this terrible meltdown will see that Democrats – whose policies set up this disaster and who ran GSEs Fannie Mae and Freddie Mac even during Republican control – were all over this mess.

Do you really want to give total power to the people who created this disaster in the first place?