The Statists' Next Targets

Still in his first 100 days as president, B. Hussein Obama has moved to Socialize first the banks, then the entire financial industry, and now the automobile manufacturers and their warranties. What is next for this Statist agent of “Change”?

My prediction is that Obama will next move to nationalize two items: health care and private pensions. Obama will use the nationalization of the auto industry to do this.

The single biggest reason GM, Chrysler, and Ford are not profitable is the unreasonable employee expenses the manufacturers are saddled with by the United Auto Workers. The two most expensive components of this expense are the long term obligations associated with health care obligations (including for retirees) and their pension plans.

As part of Obama’s effort to make the US autoworkers lead the world in producing “clean cars” instead of cars consumers want to buy (see, for example, the F150), Obama will propose to “relieve” the auto manufacturers of these pension and health care obligations and nationalize the same. This will be the springboard to nationalize health care and pension plans for all citizens.

Hillary Clinton, who has had a weak performance as Secretary of State, will likely be named the first National Health Care Czar, a job she plainly would relish.

The Statists are on the (Long) March. Make no mistake in believing that the Transformative One will settle for nationalizing only the financial and car industries.

Leninist Action of the Day

Like a Soviet General Secretary of the not-too-distance past, B. Hussein Obama today, without the notice, advice, or consent of the Board of Directors of GM, sacked Rick Wagoner, its CEO. Thus, a street organizer from Chicago who never so much as managed a McDonald’s, centralized the management decisions of the second largest automobile manufacturer in the world.

No mention was made of whether President Obama sacked the head of the United Auto Worker’s Union, the chief cause of GM’s inability to become a profitable company.

GM was foolish to accept loans from the United States Government, and is foolish to ask for more, and for that reason, GM and its entire Board should be sacked. However, the sacking should have been accomplished by the shareholders – ostensibly the owners of the corporation; not by the Statist occupying the White House.

Today, the United States slipped yet closer to economic ruin. The narcissist in the White House views himself as transformative. One cannot transform a country by building on its past. The narcissist must destroy the past and build the nation in his own Leftist image. Free markets, corporate self-governance, inexpensive power and water for all, and the first claim of the benefits of your own labor will all become a thing of the past as long as the narcissist controls the reins of government. God help us all.

Stalinist Quote of the Day

Bonuses, which are the primary means of compensation for our best and brightest financial minds, "are just not acceptable."

-- Barak Obama


I wonder if Rev. Wright ever informed Barak that class envy is a violation of the 10th Commandment: “You shall not covet ... anything that belongs to your neighbor." Your neighbor's wages belong to your neighbor.

A financial brain drain is incoming. If I'm a competent financial analysit, I'm moving to Dubai or Qatar, where I will be allowed to keep the money I earn by my hard work.

Fight the Luddites Today

Today, thousands of people around the world will participate in “Earth Hour” an event conceived by the World Wildlife Fund and foisted upon us by a sycophantic media that asks people to turn off the lights for an hour and think about the consequences of their energy use.

This hour in the dark—to take place between 8:30pm and 9:30pm local time — is NOT something to be celebrated. Its organizers are using the event as a way to convince those in power to restrict our ability to use energy as we see fit. In short, this is a world-wide call for energy rationing, taxing, and the destructive tax known as “cap and trade.”

I will be celebrating Human Achievement Hour today. All my lights, floodlights, A/C, and both big screen TVs will be up and running.I may blast my stereo out into the backyard while I fire up my BBQ.

Celebrate the quality of life improvements things like power have brought to the human race. Don't be North Korea, sitting all night in the dark. Celebrate Human Achievement!

Obama's Liberty Crushing Idea of the Day

Fascistic Socialists are back on the March Today.

Timothy Geithner, who could not manage to properly oversee his own taxes, is today briefing Congress on the Obama Administration’s plan for a huge expansion of centralized government oversight and regulation of any company that -- handles money. This proposed plan will prevent risk taking, reduce returns for investors, limit incomes for financial managers, and stymie innovation.

The Obama/Geithner plan is a rejection of capitalism and personal responsibility. It will be hedged in terms like “policing risk” and “restoring faith in the financial system” and “limited only to those very large institutions”, but what it will produce is a massive flight of investment capital offshore, along with a brain drain of financial talent chasing that offshore capital. Make no mistake; the Statists in the Obama administration intend to regulate ALL financial institutions, down to the smallest self-directed investor.

The result will be lackluster returns on all financial instruments, meaning the private investments people make for retirement will no longer be able to satisfy their long term financial needs. The next step would then be a Statist uniform national retirement plan.

In short, this is a plan for the Socialization of US financial markets and personal retirement accounts. No risk, no reward, and vilification of anyone who seeks to take risks and have rewards.

Statism is Fascistic Socialism. Marx, Stalin, and Pol Pot would be proud of Timmah! today.

Timmah! Geithner opens mouth, kills markets

Timothy Geithner, at the Council on Foreign Relations today, said the U.S. is "open" to a proposal from the governor of the China's central bank to create a new global currency to replace the dollar. Looks like Timmah! sees no need for the United States to maintain sovereignty over its own currency. While Timmah! Hedged by comparing what China proposed as an evolution to the IMF’s special drawing rights, the Communist Chinese proposal was clearly one designed to replace all national currencies with a global currency.

"We’re actually quite open to that suggestion – you should see it as rather evolutionary” said Geithner.

As a results, the dollar took a nosedive in currency trading, and the US stock market indices moved into negative territory after enjoying a modestly good morning.

Stalinist Quote of the Day

“We need resolution authority to go in and be able to change contracts, be able to change the business model....” White House press secretary Robert Gibbs explaining why Obama is seeking greater power to nationalize US Companies.

A "transformative" President must destroy all that came before him, including free market capitalism.

GOP members voting for a 90% marginal tax rate

The following Republican members of the House of Representatives voted in favor of HR 1586. The bill imposes a 90% federal income tax on any bonus paid to any employee of any company that has received over $5 Billion in taxpayer "rescue" funds. The tax would only apply to people with total joint incomes over $250,000 or single individuals with income of only $125,000. When combined with some state income taxes, the total taxes can exceed the income.

Many of the members of Congress who voted for this bill are typically well reasoned conservatives. Several of them were using this vote to play politics over the whole notion of federal takeover money.

Conservative principles associated with the federal “bailout” or “rescue” funds is as follows: businesses should be allowed to fail, taxpayer money should not be used to prop up any failing business, the Federal Government has no business ever dictating how much income someone is allowed to make, and confiscatory tax rates are ALWAYS to be opposed.

The essence of a RINO is one who abandons principle to play politics. As a result, these folks have all earned the name RINO.

Aderholt
Alexander
Barton (TX)
Biggert
Bilbray
Bilirakis
Blunt
Bono Mack
Boozman
Brown (SC)
Brown-Waite, Ginny
Buchanan
Calvert
Camp
Cantor
Cao
Capito
Cassidy
Castle
Crenshaw
Davis (KY)
Diaz-Balart, L.
Diaz-Balart, M.
Duncan
Ehlers
Emerson
Fleming
Forbes
Fortenberry
Frelinghuysen
Gallegly
Gerlach
Goodlatte
Guthrie
Heller
Herger
Hoekstra
Johnson (IL)
Jones
Kirk
Lance
Latham
Lee (NY)
Lewis (CA)
LoBiondo
Manzullo
McCaul
McClintock
McHugh
McMorris Rodgers
Mica
Miller (MI)
Moran (KS)
Petri
Platts
Putnam
Rehberg
Reichert
Roe (TN)
Rogers (AL)
Rogers (KY)
Rogers (MI)
Rohrabacher
Rooney
Ros-Lehtinen
Roskam
Royce
Ryan (WI)
Schmidt
Schock
Shimkus
Smith (NJ)
Smith (TX)
Stearns
Tiberi
Turner
Upton
Walden
Wamp
Whitfield
Wittman
Wolf
Young (AK)
Young (FL)

Obama's Liberty Crushing Idea of the Day

B. Hussein Obama, meet Hugo Chavez. Obama plans to bring legislation to the Congress this week to expand the government’s power to seize financial companies other than banks. The plan would seek “broad” oversight of any financial-related business of whatever nature whose failure could, in the opinion of the Anointed One, disrupt the “broader” economy. The range of “oversight” could include guaranteeing the firms losses with taxpayer dollars, taking an ownership interest in the firm with taxpayer dollars, voiding the firms contracts, limiting salaries and wages of firm employees, and seizing the firm outright.

In other words, this is a naked power grab against all financial institutions.

Here is another Obama idea to nationalize the financial industry while at the same time fleecing taxpayers.

This guy is a Socialist juggernaut, generating a new liberty-crushing idea every day.

Geithner and Obama Fail Economics 101

Today, Treasury Secretary Timothy Geithner is proposing a new program that will allow banks and finance houses to sell upside-down mortgage-backed investments to a "private-public partnership" entity. In this deal, Geithner says that the private sector must take "risks." Of course, the public part of the "private-public partnership" is taxpayers.

Geithner must have failed Economics, or Geithner and Obama intend to blackmail the "private sector" and rip off taxpayers.

Banks can make loans only to the extent they have assets to back the loans. For years, banks made loans based on the present value of a bundle of mortgages. When the housing prices fell, the mortgages became less secure, and thus less valuable. As a result, the banks were losing asset value, and with their asset base value diminished, their ability to loan money was likewise diminished.

Geithner and Obama's proposed plan today has the stated goal of removing "toxic" assets off the books of the banks, so that they can start making loans again.

Here is the problem with that: the "toxic" assets are not valueless. Merely taking these assets off the books of the banks is not going to free up one nickel in available loan capital; in fact, it lowers it. The only way loanable capital is increased for these banks is if the “toxic” assets are purchased by this “private-public partnership” at greater than the present market value.

Do Obama and Geithner expect savvy private investors like hedge fund operators will pay greater than market value for “toxic” assets? Market value already factors in the “risk” Geithner wants the private investors to take, so who in their right mind would do so?

This might occur in two ways:

First, as a sweetener, the public part of the partnership - the taxpayers - could give interest-free loans to these private investors who would then purchase “toxic” assets. This means playing with house money and betting on the come. The assets may improve their value over time to cover or exceed the loan value, and if they don’t, you just bankrupt the entity receiving the loan and walk away. Either way, Geithner’s promotion to Treasury Secretary pays handsome dividends to his Wall Street buddies at the expense of the taxpayers.

Second, Obama could use the various regulatory arms of government to threaten/blackmail healthy financial institutions to purchase some of these toxic assets at greater than market value, and these institutions might do so chalking up the government shakedown as a cost of doing business.

While some of the first two options will undoubtedly occur, the biggest part of the “toxic” asset removal will be the third route: the public part of the “partnership” - the taxpayers - will buy the lion’s share of these bank assets. Thus Geithner and Obama (on your behalf, of course, since you don’t know how to spend your own money wisely) will own and control a solid hunk of the real estate market. And why would Obama seek to maximize that investment for the taxpayers when ACORN would like to use those houses for “underprivileged” families who just need a little hand up?

Under this plan, you would not just be paying other peoples’ mortgages; you would be buying their entire house for them.

Welcome to Obama’s Socialist Utopia.

Obama's First Hundred Days

So we are about eight weeks into the B. Hussein Obama presidency. In his first hundred days:

- Obama has crashed the stock market (losing more value than the 9/11 attacks caused)

- Nominated a bevy of tax evaders to cabinet positions

- Proposed a budged that will create budget deficits four times greater than the combined deficits of all prior Presidents

- Asked for $900 million to be given to Arab terrorist organizations, while

- Proposing that our injured war veterans pay for their medical treatment out of pocket.

- In the middle of the worst recession since Jimmy Carter, Obama has proposed the economy-killing cap and trade scheme and sent the bumbling Timothy Geithner to Congress to argue for it

- Announced a scheme by which hard working taxpayers pay the mortgage payments of people who should never have been given a mortgage in the first place

- Announced another scheme by which hard working taxpayers absorb all the bad debt held by banks

- Supported a new marginal tax rate of 92%

- Has openly spoken of regulating the salaries of bankers like some Stalinist dictator.

For the benefit of this nation, Barak Hussein Obama’s term as president cannot end soon enough. God save the United States from this radical Communist.