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Get Me the Money - I'll Fix It

Obama comes to Washington with an alarmingly simple program.
Bankerbama.jpg picture by LDCuploads07

by  Lance Thompson

Transformational candidate Barack Obama is nowPresident Obama.  His promises to change the wayWashington works, bring health care to all, alter world climate, restore America’s prestige and solve our economic crisis will now be put to the test.

Obama supporters might have expected their man to come in with a game plan to do all of those things, full of innovative ideas and inspired strategies to right our ship of state and put us back on course.

Instead, Obama comes to Washington with an alarmingly simple program.  Basically, he wants all the money we have, and several times more than that, to bury every single problem under mounds of freshly-printed currency.

Banks failing?  Bail them out.  Auto companies foundering?  Send cash.  Medical costs going up? Create the world’s most expensive and all-encompassing HMO.  Poor people complaining?  Send them checks.

Obama’s approach has the merit that liberals seem to prize most–consistency. Every problem can be solved by spending “billions and billions.”  Astronomer CarlSagan’s near-infinite estimate of the number of stars in the universe now seems like spare change when talking about federal dollars.

There are two troubling aspects to Obama’s approach. First, the economic crisis, sparked by unqualified home buyers defaulting on their loans, is a crisis in which the value of American real estate, stocks and other investments is sharply declining.  In short, American taxpayers are short of money.  It’s very difficult to argue that the shortage of taxpayer money can be solved by spending more taxpayer money, and then borrowing against future taxes many times what the expected revenue will be.

In addition to the irresponsibility of this approach, it points to an uncomfortable question.  Was this Obama’s plan all along–to dump the burden of the economy on the dwindling percentage of American individuals and businesses that pay taxes? That certainly seems to be the case with Obama’s “tax relief,” a scheme in which the sixty percent of Americans who pay taxes will see that money split among the hundred percent who live here.

If solving the nation’s economic woes is really just a matter of massive deficit spending, then Obama’s campaign was exactly right.  Hope and change is all we need.  Experience as a chief executive — unnecessary.  Knowledge of business and the private sector — who needs it?  A resume with actual accomplishments–that’s so last term!  If Obama’s approach to economic crisis is merely to write checks that the Treasury can’t cash, then the only experience a president needs is that of overspending, overtaxing and underperforming.  Perhaps a community organizer from Chicago has all the qualifications necessary.

Whether he does or not, we shall soon have our answer.  But it won’t come cheap.

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Baleful Bailouts

Bailouts do nothing but weaken the overall economy.
 
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by  Lance Thompson

Any parent with a child away at college is familiar with the phone call, e-mail or text message that reports a financial crisis.  If the dire news comes by phone, it is likely to include all manner of dire consequences if supplementary funds are not supplied–getting kicked out of the dorm, being unable to buy necessary textbooks, having to drop out of college entirely.  If the message is delivered by the currently more popular terse media, it may be as brief as “send money.”  But all are similar in that there is a request for funds, there is not a moment to lose, and disaster will be the punishment for delay.

You will also notice this is exactly the same message the federal government sent out to  all taxpayers last fall.  One difference is that the party in question was not a spendthrift college student, but a spendthrift national government.  The other difference is that in the case of the college student, the parent has a choice, while in the case of the taxpayer, there is none.

The college parent can immediately provide supplementary funds–either by an infusion of cash into an account, providing a credit card with a higher limit, or by paying off debt incurred by the student.  But if the financial crisis is a result of profligate spending or irresponsible fiscal habit, then the parent might choose the wise course of ceasing to supplement such behavior and allowing the consequences to apply.

This course is not available to the taxpayer, and thus we now have the endless series of bailouts that began with the collapse of the inflated home mortgage industry.  With each new failure of a business or industry, the cry goes out from the federal government that we must send cash, or severe calamity will befall us.

Home mortgages and home values collapsed because the government coerced lending institutions to make loans to those who could not afford to repay them.  The crisis was not, as Democrats claimed in the recent presidential campaign, due to deregulation, but rather to over-regulation.  Such regulations were virtually all due to Democrat initiatives.

The solution, the government told us, was to bail out the various lending institutions lest all the credit dry up and the economy grind to a halt.  This solution was championed by the Bush administration, both presidential candidates, and an embarrassing bipartisan majority in Congress.  Once the staggering $700 billion initial price tag was swallowed by taxpayers, the price has continued to rise, and the scope of essential industries has steadily widened to include car companies, media outlets and who knows what else.

But bailouts, while possibly extending the lives of struggling enterprises, do nothing but weaken the overall economy.  They accomplish this mischief by contravening the ruthlessly fair hand of the free market, which penalizes unsuccessful companies and rewards successful ones.

In a free market, a company that provides a popular product or service at the best price will be rewarded with increased business and revenue.  A company that fails to do so will be punished with decreasing business and revenue.  The free market ensures that the most efficient provider of products and services will thrive, while less efficient ones will fail.  This is the strength of the American economy.

But when government steps in to “save” businesses or industries, their largesse rewards the least efficient companies, ensuring that their inefficiencies will continue.  By a like amount, bailouts punish efficient companies by giving unfair advantage to their competitors and negating the hard-earned market share that good management has provided.  The government is not merely picking winners and losers in the marketplace.  They are using our money to punish sound business practice and reward those who can’t compete.  No program would better guarantee the eventual breakdown of the American free enterprise system than this ever-expanding policy of bailouts.

Just as a parent who wishes to teach his or her college age child responsibility should allow the consequences of poor financial decisions to bring that lesson home, so should the federal government allow the free market to pick winners and losers in the economy.  Yes, the government is to blame for the crisis, but that surely means they should not be trusted with trillions of our dollars to provide a solution.

With a liberal President and Congress, it is unlikely that free market forces will be allowed to return the economy to health in the short term.  It is much more probable that further regulation, subsidy, and central planning will continue to distort the free market and extend the cost of recovery.  And the “send money” messages will continue to arrive from the government.  At least until the free-spending students of policy in Washington enroll in Econ 101.
 
 
 
Tags: Bailout  
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Dead Party Walking

Republicans were water-boarded by the media for eight years...
 
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By Rose Pedenko and Tanya Simon

The word “historic” has been stretched far too thin to describe many of the life-altering events that occurred in 2008, both nationally and internationally, in particular with respect to the election of Barack Hussein Obama.

“Historic Hysteria” can be applied to Democrats to depict their “first black president” fervor, and then to the Republican Party that did little to deflate that political balloon.

Republicans were water-boarded by the media for eight years, but unlike Guantanamo detainees, Republicans nearly drowned in the lies invented by that mercurial fourth estate whose mission was to exact maximum damage on George Bush’s presidency.

What the liberal media learned from their efforts is this: They could get away with anything (e.g., promoting a man to the office of president whose credentials and experience are, at best, marginal) – and also, because Republicans did little to stop the bleeding between moderates and conservatives in their own ranks, the MSM could blame the President and potential candidates for everything with impunity.

Obama didn’t win – we lost.

It reminds us of that old greeting card where a man alone on empty acreage is complimented for being “outstanding in his field.” Conservatives were out standing in their field too, but no one was listening because we heard little or nothing from them. They stood silent like hay-stuffed scarecrows flopping in the political winds.

With the exception of Mitt Romney, the GOP candidates looked, sounded and behaved more like leatherhead third-stringers for Knute Rockne than distinguished politicians.

Say what you will about Obama’s questionable alliances, conservative pundits spent far too much air-time energy decimating Obama’s bad judgment rather than understanding that those alliances were the strategic imperatives of a dead-serious politician. In the weeks leading up to the inauguration, we have witnessed the president-elect mow down far left supporters and blocks of his political party standing in the way of his path to glory.

Which is worse – bad judgment or ruthlessness? Or is there a difference?

Conservative pundits also finally realized at the 11th hour that their ambivalence over the GOP candidates proved to be a mistake of historic proportion.

Adding to the media’s assaults on Republicans was our lineup of candidates - a mish-mash of contradictions, overblown egos, sagging jowls, and a libertarian fervor that captured a flock of loons and thrust them into the limelight. On the plus side, they did raise a lot of money for Ron Paul which is proof positive – if candidates stick to their core principles and make no excuses for it they have a better chance of prevailing.

One thorny issue that contributed to the GOP downward slide was the vote “whores” who pandered to illegal aliens on some imagined future promise of party loyalty. For all his public relations and grandiose advice, Karl Rove, “the architect,” almost single-handedly sank George Bush’s legacy by pushing that future vision. And what did George Bush get for comprehensive immigration reform? It arrived in the form of an embittered and enervated base that left him (and John McCain) in the political wilderness to fend for themselves. The GOP’s money well dried up and shriveled around them.

The President’s pertinacious support of immigration reform eroded what little was left of praise for his outstanding leadership and handling of 9/11. And then, like a free falling guillotine, the Reenactment of the Medicare Prescription Drug Improvement and Modernization Act of 2003 sealed his fate with the base.

No amount of reaching across the aisle or congressional glad-handing could have altered the incomprehensible hatred already held by liberals. It is somewhat embarrassing, that even after losing the majority in congress as well as the presidency it did little to illuminate those mistakes as was evident in his final press conference. George W. Bush clearly did not understand how it all came crashing down. He still believes conservatives are anti-immigrant versus anti-illegal immigration. When he said the “party has to be compassionate and broad-minded” he was referring to his beloved immigration reform.

Republicans could have won the 2008 election in spite of an increasing minority vote. Had we not strayed from our core principles, eventually that minority vote would have been ours because those very principles inure to the benefit of immigrants in their quest to achieve the American dream.

What can Republicans do to ensure none of this happens again? The answer is simple: adhere to the golden rule of conservative principles. Period.

We know of no creative writer who could have invented the series of events that led to the near self-destruction of the party and country we know and love. The left-wing media succeeded, in spite of the rules of ethics in journalism, to “recreate” the U.S. government and this country’s social structure to suit their fractured ideology.

Donkeystraightjacket-1.jpg picture by LDCuploads07
 
 
2008 ended up being the year the lunatics took over the asylum. They even managed to place the blame for the housing crisis and credit meltdown squarely on George Bush’s shoulders – a burden created in toto by Democrat political dogma.

The left-wing mantra that will surely endure is: “Everything bad happened on his watch,” notwithstanding their two-year majority and miserly performance.

And what happened in Chicago sure as hell didn’t stay there. An epidemic of corruption, greed and idiocy has engulfed every level of sensible society across America. Where else could someone named Madoff have “made-off” with everyone’s money? We can’t make this stuff up!

Republican principles designed to make us safer and stronger were eaten away by bad decisions, weedy financial restrictions, ineffectual oversights, and those mangy curs called greed and payoffs – all of which led to the current economic crisis.

In spite of the political disasters wrought on our heads, Americans have, out of shock and necessity, arrived at the realization that no one really knows anything when it comes to the financial health and wellbeing of the United States. We are all the hapless victims of the implosion of our retirement funds, curling up in fetal positions, waiting for good news.

Republicans have made huge mistakes, and the Democrats and their media lapdogs will continue to take full advantage of those mistakes. They will, as always, because that sticky candy called “success” is stuck in their gums, and will be for the next four years.

Conservatives must begin garnering our forces and lead the charge against straying from the principles that led us down that rabbit hole where nothing is as it seems: big is little, little is big, fat cats talk and we meet with strange, frightening and “politically correct” characters.

 
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Violence in the Media

The media has already taken sides.
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by Lance Thompson

Media journalists talk about violence as if it were an unfortunate natural phenomenon, an indifferent ill wind that afflicts all, like a hurricane or tornado.  With suitable looks of concern, they report “continued violence in Gaza” or “escalating violence in Bagdhad” or “renewed violence in Afghanistan” without differentiating between aggressor and defender, innocent victims and guilty perpetrators, reign of terror and rule of law. When it comes to violence, the media are even-handed to a fault.
 
Since the media clearly rely upon graphic images of violence to increase viewership, it’s unfortunate they don’t have the same approach to violence as they do the other media staple, sports.  Why don’t we see military experts like General Petraeus, walking viewers through strategy and tactics with his screenwriter, in the manner of John Madden?   “Here’s the weak spot in the Hamas defense.  This is where the Israelis faked left, then cut right through the line and scored against a tough terrorist line.”

In my town, most of the population enthusiastically support the local Boise State University Broncos.  The local media are no different, covering the game and the players with undisguised favoritism.  Cities with major league ball clubs exhibit the same home-team preferences.  My question is, why don’t American media outlets show the same support for our home team–the American military?   Why doesn’t the Los Angeles Times that rejoices in a playoff victory by the Lakers  also celebrate the battlefield victories of our soldiers or sailors?   When was the last time you saw a banner headline in your local paper proclaiming, MARINES TROUNCE AL QAEDA?  Or NAVY BLASTS PIRATES?

If sports reporters covered their beat like their pals in the world news departments, we’d be treated to headlines like this: “Violence Continues in Pro Boxing.  Casualties Mount in Playoff Race.  Cowboys and Steelers Reject Mediation, Vow to Fight On.”  Instead of highlights of game-winning plays, we’d be treated to close-up coverage of team doctors taping ankles, players carried off the field with dislocated shoulders, and demonstrators protesting the abuse of animals at the Kentucky Derby.    When reporting sports events, media personalities can be as outspoken and openly supportive of favorite teams as any rabid fan.  But when it comes to the truly world-changing events happening in Iraq, Afghanistan, Gaza and elsewhere, all they can manage is a grim and unrelentingly neutral reporting of casualties.  Just as the diplomats at the United Nations and governments around the world  derive satisfaction by “condemning the violence on both sides,” the news media implicitly denounces violence as the ill, rather than the result of conflicts between forces of very different moral character.

No conflict in history has been waged between two equally moral combatants.  Sometimes those engaged have some principles in common, sometimes they have nothing in common.  But in every case, there is one side that holds the moral high ground, even if only comparatively so.  Why does the media refuse to recognize this fundamental distinction that gives meaning to the violence they so solemnly report?

The reason, of course, is that the media already has taken sides, and it is always the side that opposes the American military.  By treating violence as an affliction, by reporting on armed conflicts with strict moral equivalency, the media place the United States on par with its enemies.  In every case, the media places the defenders of freedom on par with the forces of oppression.  There is no objectivity in such a view.  By elevating the enemy to our level, they are taking his side.  For the news media, the home town team is whoever takes the field against us and our allies.

If you get your news from any other network than FoxNews, you’re hearing about the game from the other side’s press.  If we win a battle, you’ll hear about the costs to our troops, the civilian casualties, the mistakes we made.  If the other side wins, you’ll hear about the hopelessness of our cause, the resilience of the enemy, and, again, the mistakes we made.  What you will not get is an objective view of the contest.

So next time you hear a report on violent conflict somewhere in the world, you might ask yourself if the news reader is giving you the home town spin, or if he really knows the score.  

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Second Term Ennui

George Washington had no predecessors to blame his circumstances upon.
 
Unpopular.jpg picture by LDCuploads07
 

by Lance Thompson

The once-popular president was nearing the end of his second term.  The press of the opposing party pilloried him.  The members of his once stellar cabinet had been replaced by less-capable, less-qualified second stringers.  His foreign policy decisions were leading to riots in the streets.  Scandal, internecine feuding, and intrigue plagued his administration.  His successor was widely praised as a welcome change and improvement.  Worst of all, George Washington had no predecessors to blame his circumstances upon.

Since George Washington left office, his assessment by historians has improved steadily (until the revisionists took over the textbooks in the 1970's, and the Founding Fathers were all dismissed as heartless slave holders in powdered wigs).  But during his tenure as President, Washington suffered the same fate as all American chief executives who finish their second terms.  The populace that twice swept them into office wearies of them and becomes anxious for somebody new–often, anybody new.

Dwight Eisenhower presided over a period of unprecedented economic growth, domestic tranquility and American hegemony.  By the end of his administration, he was just a tired old guy who liked to play golf, let the CIA off its leash in Iran and Guatemala, and had to apologize to the Soviets when they shot down one of our U2 spy planes. 

Ronald Reagan revived a stagnant economy, cut taxes, rebuilt the military, and prevailed against the Soviet Union in the Cold War.  Reagan’s  economic recovery was the most robust and longest-sustained in recent history.  By the end of his second term, his administration was soiled with the Iran-Contra controversy, and the Democrats were calling his diplomatic victory over Gorbachev in Reykjavik a missed opportunity.  One of the most popular and successful presidents of the 20th Century left office looking tired and ineffective.

Bill Clinton was in charge during most of the 90's, an era of general prosperity and seeming calm overseas.  By the time this successful president left office, he was the only one in the 20th Century to be impeached and left office in a state of ignominy.

Which brings us to the current president.  Vilified by the liberal press, despised by the Left, and now unpopular even with many of his own party, George Bush would seem to be a president destined for perpetual disdain.

Yet he began his presidency by defeating a sitting vice president in a close election (despite the Dems’ insistence on recounting until they got a favorable result, repeated recently in Minnesota).   In the 2002 midterms, Bush campaigned hard for Republicans and was rewarded with an unprecedented GOP gain in both houses of Congress.

Bush’s first year in office was marked by the most devastating enemy attack on American soil in our history.  He responded to this by going to war against a terrorist enemy who had been making war on us for years.  In 2004, despite relentlessly negative reports on our military progress, Bush won reelection.  His determination in Iraq, when the press, the Democrats, and many Republicans were all calling for surrender, resulted in the victory that has replaced a state sponsor of terrorism and dictatorship with a stable Middle East democracy.

He pushed through tax cuts despite fears from both sides of the aisle that the economy, suffering from the terrible blow of the 9/11 attacks, could not afford such cuts.  The economy instead achieved remarkable strength from reduced taxes, as it always does.  Bush named two justices to the Supreme Court–Roberts and Alito, who have proven with their decisions to be excellent choices.

George Bush was blamed for every calamity that could be reported or invented–back-to-back storms of the century on the Gulf Coast, the increasingly insupportable make-believe of global warming, setbacks in Iraq, and the recent financial crises caused by liberal over-regulation of the lending industry.  Conservatives fault his open-border policy, his expansion of government, his enabling of an overspending Republican Congress.  Liberals blame him for everything else.   Thus George Bush will leave office with dismal approval ratings from an electorate that is ready for someone new.

All Presidents hope that history sees them in a more balanced light than the contemporary press does, and usually this is true.  George Bush was President during an era in which the modern news media gave up all pretense of objectivity, and Bush had the misfortune of being on the wrong side.  And yes, he did err in the decisions the conservatives have criticized.  But on the most important issues facing us during his administration–terrorism, taxes and the economy, Supreme Court appointments–George Bush has served his country well.

If the historians don’t immediately recognize the achievements of the 43rd President, he still has reason for optimism.  As with other Presidents whose final days of their second terms were defined by missed opportunities and declining approval, they always have one advantage.  Chances are, the next guy will make them look wonderful by comparison.  

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