The Bank of Obama

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Feb 252009
 

Bad mortgage, student loan, credit card debt, Vegas trip…you know someone who needs a personal bailout for it. Bank of Obama believes everyone should get their share of the stimulus package.

Thomas Sowell: A Fatal Trajectory

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Feb 252009
 

A very sobering article by the great conservative writer Thomas Sowell.

A Fatal Trajectory

An increasing number of recent letters and e-mails from readers strike a note, not only of unhappiness with the way things are going in our society, but a note of despair.

Those of us who are pessimists are only a step away from despair ourselves, so we may not be the ones to offer the best antidote to the view that America has seen its best days and is degenerating toward what may well be its worst. Yet what hope remains is no less precious nor any less worthy of being preserved.

First of all, the day-to-day life of most Americans in these times is nowhere near as dire as that of the band of cold, ragged and hungry men who gathered around George Washington in the winter at Valley Forge, to which they had been driven by defeat after defeat.

Only the most reckless gambler would have bet on them to win. Only an optimist would have expected them to survive.

Against the background of those and other desperate times that this country has been through, we cannot whine today because the stocks in our pension plans have gone down or the inflated value that our houses had just a few years ago has now evaporated.

In another sense, however, looming ahead of us– and our children and their children– are dangers that can utterly destroy American society. Worse yet, there are moral corrosions within ourselves that weaken our ability to face the challenges ahead.

One of the many symptoms of this decay from within is that we are preoccupied with the pay of corporate executives while the leading terrorist-sponsoring nation on earth is moving steadily toward creating nuclear bombs.

Does anyone imagine that we will care what anyone’s paycheck is when we see an American city in radioactive ruins?

Yet the only serious obstacle to that happening is that the Israelis may disregard the lofty blather coming out of the White House and destroy Iran’s nuclear facilities before the Iranian fanatics can destroy Israel.

If by some miracle we manage to avoid the fatal dangers of a nuclear Iran, there will no doubt be others, including a nuclear North Korea.

Although, in some sense, the United States of America is still the militarily strongest nation on earth, that means absolutely nothing if our enemies are willing to die and we are not.

It took only two nuclear bombs to get Japan to surrender– and the Japanese of that era were far tougher than most Americans today. Just one bomb– dropped on New York, Chicago or Los Angeles– might be enough to get us to surrender.

If we are still made of sterner stuff than it looks like, then it might take two or maybe even three or four nuclear bombs, but we will surrender.

It doesn’t matter if we retaliate and kill millions of innocent Iranian civilians– at least it will not matter to the fanatics in charge of Iran or the fanatics in charge of the international terrorist organizations that Iran supplies.

Ultimately, it all comes down to who is willing to die and who is not.

How did we get to this point? It was no single thing.

The dumbing down of our education, the undermining of moral values with the fad of “non-judgmental” affectations, the denigration of our nation through poisonous propaganda from the movies to the universities. The list goes on and on.

The trajectory of our course leads to a fate that would fully justify despair. The only saving grace is that even the trajectory of a bullet can be changed by the wind.

We have been saved by miraculous good fortune before in our history. The overwhelming military and naval expedition that Britain sent to New York to annihilate George Washington’s army was totally immobilized by a vast impenetrable fog that allowed the Americans to escape. That is how they ended up in Valley Forge.

In the World War II naval battle of Midway, if things had not happened just the way they did, at just the time they did, the American naval force would not only have lost, but could have been wiped out by the far larger Japanese fleet.

Over the years, we have had our share of miraculous deliverances. But that our fate today depends on yet another miracle is what can turn pessimism to despair.

A Contrived Crisis? – You Decide

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Feb 242009
 

This whole economic crisis doesn’t pass the smell test!

A Contrived Crisis? – You Decide

Through a series of supposedly random but arguably deliberate chain of events, America is poised to jettison 220 years of a free market system called capitalism, in favor of the tried and failed system of socialism. This writer, and others, are now starting to question how we reached this point.

Last summer, as McCain and Obama were in the midst of their campaigns to capture the presidency, a series of events dramatically changed the focus of the campaign from Iraq to the economy. From that point on, Obama took the lead and eventually won the presidency.

June 26, 2008: Democrat Chuck Schumer leaked a memo questioning the solvency of IndyMac bank. This memo precipitated a run on IndyMac which led to its failure. Federal regulators pointedly cited U.S. Sen. Charles Schumer, D-N.Y., in explaining the bank’s failure. “The immediate cause of the closing was a deposit run that began and continued after the public release of a June 26 letter to the OTS and the FDIC from Senator Charles Schumer of New York.”

This event, coupled with the Lehman Brothers collapse in September, marked the beginning of the current economic meltdown and provided the ammunition for massive government intervention in the private market.

July 12, 2008: The federal government takes control of the $32 billion IndyMac Bank. *

Sept. 6, 2008: Fannie Mae begins its downward spiral, which will end with a crash in November. This crash was avoidable, as the problems with Fannie Mae and Freddie Mac were identified in June of 2006, when 15 Republicans on the Senate Banking Committee introduced legislation to address the problem. Democrats, led by Barney Frank, killed the reform efforts.

Sept. 15, 2008: Obama and McCain are virtually tied in their race for the presidency. Out of no-where, in the space of less than 2 hours, the Federal Reserve noticed a tremendous drawdown of money market accounts in the U.S. to the tune of $550 billion. Rep. Paul Kanjorski of Pennsylvania said that if authorities had not closed the banks, $5.5 trillion would have been withdrawn from US banks, which would have caused the collapse of the US within 24 hours.

This seminal event marked the ascendancy of Obama’s candidacy, and eventually resulted in his election as president.

Fast forward to this week. The markets reacted to Obama’s proposal to bail-out mortgages and Senator Christopher Dodd’s talk of nationalizing banks by reaching 11-year lows.

Obama continues to stoke the fears of imminent crisis, actually using the word ‘crisis’ a total of 26 times in one speech.

Enter George Soros. The infamous one-worlder, billionaire George Soros adds his voice to the media doomsayers by opining that the world financial system has effectively disintegrated, adding that there is yet no prospect of near-term resolution to the crisis.

Soros said the turbulence is more severe than during the Great Depression, comparing the current situation to the demise of the Soviet Union.

He may be right. The series of ‘inadvertent errors’, deliberate obstruction, political shenanigans, behind the scenes manipulation of the money markets and non-stop calls for immediate infusions of taxpayer cash have brought the U.S. to its knees.

With one voice, politicians, economists and ‘experts’ agree by unspoken consensus that government is the only solution. No one points out the fact that every single step taken so far by the government has exacerbated the problem, effectively bringing America one step closer to centralized government control. Which, coincidentally, Obama favors.

I am not an economist. But I will challenge any expert to dispute the fact that if President Obama took to the airwaves tomorrow and announced the Bush tax cuts would be extended and a capital gains tax cut was under consideration, the markets would immediately turn around.

That no-one is proposing this common sense solution is alarming. That no free market solutions are even under consideration is more alarming. That no-one is questioning who was responsible for the Sept. 15 run on money market accounts, or why the media was silent on it, lends credence to the possibility that our current economic crisis might not have been the result of a series of random events.

The economic meltdown is undoubtedly responsible for Obama becoming president. It is also responsible for the current consideration of socialistic solutions, if not outright socialism. Without a doubt, this crisis has strengthened the Democratic party. Yet to connect the dots and suggest that this crisis isn’t a result of capitalism gone bad risks branding this author with the title of paranoid conspiracist.

Color me paranoid. Was this current crisis manufactured? I don’t know. Does the possibility exist? You decide.

* Six months later, Jan 2, 2009, a seven-member group of investors agreed to buy the remnants of failed lender IndyMac for $13.9 billion. Other investors included a fund controlled by billionaire George Soros’ Fund Management.

Previously:
Evaluation: On Sept 15, 2008 $550 Billion Disappeared in an “Electronic Run On the Banks”

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