Obama's Economic Guru Resigns

Christina Romer, chair of Obama's Council of Economic Advisers, is resigning her post. Romer, said to be an expert in the Great Depression, has done her best to get us into another Great Depression.

Romer's economic guidance has been devastating to the country. Never before has this nation had so much long term unemployment, not even under Carter's devastating tenure.

Roemer was the chief architect of Obama's great economic failure, the Obama Excessive Government Spending and Debt Plan (a/k/a the "Stimulus"). Romer co-wrote a justification paper saying the Obama Stimulus would keep unemployment rates from rising above 8%. She was, predictably, dead wrong. Liberals who call themselves economists always are. Even so, she has advocated a path of "doubling down" by borrowing yet more Chinese money and increasing government spending even more.

Her failure will almost certainly be rewarded with an appointment as the chairwoman of the San Francisco Federal Reserve Bank. Such is the path of the liberal elite.

GM Funnels Tax Dollars to Dems

How is GM spending your tax dollars? By funneling $41,000 to liberals, including $36,000 to the Congressional Black Caucus.

The only thing being drained in Washinton DC is the taxpayer.

Marxist Quote of the Day

We’re not, we’re not trying to push financial reform because we begrudge success that’s fairly [sic] earned. I mean, I do think at a certain point you’ve made enough money.

- Barak Hussein Obama
April 28, 2010

If only the Anointed One believed that at a certain point government has SPENT enough money.

United We Stand; Divided We Fall

Today is the eighth anniversary of the Islamic terrorist hijacking and homicide aircraft attacks on the people of the United States in New York, Washington DC, and Shanksville, PA. After these heinous terrorist attacks against unsuspecting, hard-working people, the United States of America united to launch a global war on Islamic terrorism.

For a time, this nation was united. Our national motto was “United We Stand”.

We all knew that would not last. Since the 1960s, American leftists have made sport of bringing down this nation, its achievements, its political institutions, its history, and its people. National unity in support of military action was going to be opposed, degraded, resisted, and demonized. Eventually, the followers of Alinsky succeeded in once again dividing the nation, sapping the national will, and perverting the national efforts to protect the United States from Islamic terrorism.

Currently, we have as president the Great National Divider. No longer do we have a global war on Islamic terrorism – we now have “overseas contingency operations.” We no longer interrogate the terrorists held (for the moment) at Guantanamo, we now have “high value interrogation group” prohibited from using any method more coercive than exposing these killers to rainbows and teddybears. As I recall people in the twin towers having to choose between dying in the inferno or jumping to their death, I am not so concerned about the 9/11 mastermind being waterboarded under the supervision of doctors, then fed a nice meal.

The Great National Divider, a true Saul Alinsky acolyte, spent last night calling his dictatorial socialist policies “market choice” and his opponents “liars” “obstructionists” and “reactionaries.” He has promoted policies I’ve detailed in this blog that will irreparably harm this nation.

On this anniversary of terror, the White House will not use a motto of “United We Stand.” Instead, they will say “United We Share”, as in, you do not pay enough taxes, and you have to fork over some more of your hard-earned pay to the government so they can do with it what they deem important.

There is an important second stanza to “United We Stand” that the Great National Divider forgets – “Divided We Fall”.

President B. Hussein Obama’s policies, if enacted into law, will tear this nation apart. I firmly believe that if Congress enacts both the health care nationalization bill and the Mandate, Cap, and Tax bill being pushed by the Great National Divider, the result will be an end to the United States of America as it is composed today.

There is no national consensus on federal action on either of these bills, but if August’s town hall meetings have proved anything, it is that the Statists in the United States do not feel the need to unite the nation to dictate to it.

The great irony of this day is that the Islamic terrorists that launched the attack on the United States eight years ago wanted to destroy the United States as we know it. Now, we have a Muslim-born president working hard to achieve their goals.

Divided We Fall. The governing party presently in Washington DC needs to keep this in mind.

Conor Clarke Does Not Understand English

Conor Clarke, confirmed eco-Statist and blog poster on Andrew Sullivan's Daily Dish banner, has a disingenuous headline today regarding Sarah Palin's critique of the Obama energy policy and the Mandate, Cap, and Tax bill.

Clarke's disingenuous headline reads "Sarah Palin Does Not Understand Cap and Trade". From an eco-Statist like Clarke, that really means "Sarah Palin Understands the Cap and Trade Bill Perfectly", but I digress.

As evidence of Palin's ignorance, Clarke holds up the following Palin quote: There is no denying that as the world becomes more industrialized, we need to reform our energy policy and become less dependent on foreign energy sources."

To which Clarke responds: "I don't think cap and trade has many supporters who think it's the best way to become 'less dependent on foreign energy sources.'"

Of course, that was not Palin's point, and anyone who can read plain English can understand that. Fact will not get in the way of eco-Statists like Conor Clarke trying to smear Sarah Palin.

I have posted a considerable amount about the damage Mandate, Cap, and Tax will visit upon the economy of the United States, and it has been made clear by the EPA that Mandate, Cap, and Tax will not change their projected air temperatures one degree. Mandate, Cap, and Tax is about government control of the economy and nothing else. Communists, Socialists, Fascists, and Statists support Mandate, Cap, and Tax. Anyone who values freedom, ordered liberty, and a strong economy must opposed this bill at all costs.

What an Activist Central Government Looks Like

Jimmy Carter has caused the loss of an entire generation of Iranians. If he had any shame, he whould give back his Nobel prize. Of course, being liberal means you never have to say "sorry" because, well, you know, he MEANT well.

Jimmy Carter's actions as President directly lead to this Statist, Islamist, Theocracy. The sad truth is that these elections are window dressing -- the Supreme Leader does not stand for the approval or consent of the citizens of Iran.

http://www.youtube.com/watch?v=OjQxq5N--Kc

Tell the Truth About China, and Ourselves

Today marks the 20th anniversary of the violent Communist crushing of the peaceful demonstration for freedom being held in Tiananmen Square. Tiananmen Square, along with the crushing of Prague Spring, the Hungarian Revolution, and Polish Solidarity, remains one of the most visible examples of the freedom crushing nature of centralized government.

In the years since the Tiananmen Square massacre, China remains a slave state. Its people cannot speak or work as they choose, cannot affect the direction or composition of their government, and cannot foresee a future for themselves where this will change. Fundamentally, China is North Korea with more lightbulbs.

The Chinese Statist government that controls all economic activity takes in billions of dollars from the United States, but instead of improving the lives of the Chinese people, it purchases American debt, American companies, and other production and transportation world wide. Communist China is not doing this to provide freedom and innovation to the United States or elsewhere. These are acts of control by a Communist government obsessed with control.

The control obsessed Communists are this very day blocking off access to Tiananmen Square, lest there be an expression of political freedom in that country. The Communists have shut down the Internet and social gathering within China lest freedom-minded citizens discuss the fact that they are still slaves to a corrupt, illegitimate, oppressive government.

The people of China have a dream. Their dream is the American Dream: the right as individuals to pursue their own happiness. The recognition by a government, which has the consent of the governed as the source of its legitimacy, that all people are endowed by their Creator with unalienable rights that provide individuals with the freedom to control their own destinies, own their own homestead, keep the fruits of their own labor, and choose their own way forward without being dictated to by a government. The American Dream is the freedom to choose -- what you buy, what you eat, who you employ, who you purchase goods and services from, and how you spend your own money. The American Dream also the dream of China’s people.

Freedom of the individual to choose his or her own way is the only path that provides productive innovation and economic prosperity. No central government can ever direct innovation or prosperity into existence. Statism always leads to repression.

It sickens me that in the 20 years since the Tiananmen Square uprising, China still has a repressive internal security service, no freedom of thought or speech or political expression, no sense or hope of a representative government. The Communist Statists in China’s dictatorial government show no more inclination towards freedom than their predecessors. The moment has been lost, and the United States is enabling the further subjugation of the Chinese people by sending our money there.

But it sickens me far more greatly that in the same time period, our own nation has moved away from the dream of China’s people and our national dream: we are less free to choose and seem destined to become even less so. How long will it be before the United States will require its own Tiananmen Square?

Simple Lesson Tuesday - The Value of GM

This morning, I will provide a simple lesson about why Socialists, Marxists, or Statists should not be trusted with your money at any time.

Before bankruptcy, there were 610 million shares of outstanding GM stock. The stock was trading at about a dollar a share, meaning GM had a total market value of about 610 Million Dollars. Even arguing the sum of all its parts exceeded the market value of the corporation, GM could not possibly be worth more than 2 Billion, and that is being very, very generous.

Yesterday, B. Hussein Obama agreed to purchase only a 70% stake in a corporation for $50 Billion. In what economic universe was this even arguably a rational deal for taxpayers?

This purchase is intellectually defensible only in two situations:

1. Because a Statist wishes to place a large corporation under government control; and/or
2. Because it is a political payoff to the UAW from the UAW's candidate of choice.

Under what concept of governance is this Administration operating? These actions are completely foreign to the written compacts establishing the United States. The United States are being torn asunder by current government right before our eyes.

Obama's Socialist Forces March On

Today is Black Monday.

GM today becomes Government/UAW Motors. Obama will NOT be distributing the stock to the taxpayers who now own the majority of the shares of GM. You cannot go down to the local dealership and pick up your car, even though you may own it.

In further news, it appears that my predictions were right, and Citigroup will become government owned as a result of the "stress tests" imposed on banks by a takeover minded government. I'm sure government bureaucrats will apply their nimble and intelligent management to the bank and kill it.

If you have assets managed by Citigroup, bail out now.

If you have a loan or mortgage held by Citigroup, beware the change in your terms -- interest rate increases are on the way. It is easier than raising taxes!

Obama is following the Marxist revolutionary manual to the letter; the methodology he learned from his Marxist father.

Obama Admits: We're Broke

In an interview with C-SPAN broadcast timed for the news blackout that that is Memorial Day weekend, B. Hussein Obama said “We are out of money now. We are operating in deep deficits.”

Obama has thus admitting that the Tea Party protestors are absolutely right. He has spent more than the Treasury can or will take in.

Naturally, he will use this crisis to further erode free markets and impose Statism. One thing about Communists, they know how to make the same mistakes over and over and over and over.

One Fed President Has Keen Sense of the Obvious

Federal Reserve Bank of Philadelphia President Charles Plosser said inflation may rise at a rate much higher than the central bankers’ desired range. He notes that the Federal Reserve only has one tool in their control to fight inflation – increased interest rates.

“The economy may be at greater risk of inflation than the conventional wisdom indicates,” Plosser said May 21. However, Plosser cautioned that “the economy is probably not strong enough and not ready for increasing” interest rates.

Charles Plosser has indeed identified the Catch 22 in the liberal’s method to address a down economy by spending far more than budgets allow. Printing money we don’t have devalues the dollar, which means more dollars will be required to purchase the same item (inflation). Meanwhile, in a down economy with high unemployment, household disposable income drops, lowering a family’s standard of living as they have fewer dollars to spend on more expensive goods. As a result, the households tend to cut back on spending money on non-essentials, which worsens the economy as a whole. It becomes a death spiral such as we saw during the presidency of Jimmy Carter.

But Charles Plosser also knows that the Obama administration plans to continue to overspend as no two presidents combined have ever overspent before. This will be a further inflationary pressure. Add to this the economic disaster that would be the twin Statist plans of Obamacare and the Obama/Waxman/Markey Mandate, Cap, and Tax bill, and we have a perfect storm of negative economic actions.

There is no way to sugar-coat the economic results of the Obama plan. They are as foreseeable and predictable as the moon and the tides. As night follows day, economic disaster follows Obama’s Statism.

GM to be Socialized; Taxpayers to be Fleeced

According to Obama administration sources today, B. Hussein Obama intends to use the bankruptcy courts and taxpayer money to buy GM for the UAW and GM bondholders.

Is this the Hope and Change the nation was waiting for? Naked socialism, fleecing taxpayers, and paying off political cronies like the unions? Really? Is this what that nation wanted?

If Obama is allowed to steal the taxpayer's money like this, we owe Richard Nixon an apology.

If you support Obama’s administration, you are a Socialist. Period. A red, a commie, a pinko.

Some Memorial Day this will be. Obama and his supporters are completely devaluing the lives of all who fought and died to protect the world from the slavery of Socialism. Obama is urinating on the graves of tens of thousands of servicemen who gave their last and final measure of devotion to their country to stop the onslaught of Fascistic Socialism.

Obama is foisting it on the United States with a big, red bow.

"Compassionate" Cannibalism

Previously, this blog reported that after the bank grab, B. Hussein Obama would set his sights on taking over the health care industry -- here is the link.

http://redwarning.blogspot.com/2009/04/capitalisms-destruction-imminent.html

Yesterday, several medical associations tried to throw a virgin into the volcano and stave off their destruction. They promised to reduce the rate of growth of health care costs by 1.5% a year. Their pathetic attempt to co-opt a committed Socialist Statist like Obama reflects their complete underestimation of B.O. and his ilk. These medical industry "leaders" will soon find themselves tied up over a cooking fire while the cannibals sharpen their eating utensils.

Even today, the Senate Finance Committee will be holding hearings on how it can increase taxes to pay for Obama's "health care" plan. The Statists have not detailed their legislative proposals yet, but they know already they need to raise taxes!

You can bet the nanny state Nazis will be out in full force to propose adding punitive taxes to anything they consider unhealthy -- sodas and beverages, fast food, meat, cheese, milk, etc. Naturally, all these proposals would violate B.O.'s promise to not raise taxes on those making less than $250k per year, but what is a promise to a Democrat other than something to be broken?

The continued "compassionate cannibalism" of the economy proposed by the Obama administration will have the same result as any other form of cannibalism -- the unwary are cooked, killed, and eaten.

Here Comes Cap and Tax

Over the weekend, the fruits, nuts, watermelons, Socialists, and good old fashioned Statists masquerading as the “environmental” movement issued a new lexicon of marketing words to try to convince a wary American public that their plans will not destroy the economy in the midst of a recession. They need these new marketing works because the existing marketing words were not adequate to convince the American public to drink the toxic plans the Statists have for driving the American economy back to the pre-industrial revolution.

Believing the current terms like “global warming” and “cap and trade” engender honest images of shaggy tree-huggers, bad science, and high societal costs on flimsy evidence, the eco-Statists believe they need a marketing makeover, beginning with new buzz words.

The new Orwellian eco-terms for the economy crushing cap and trade scheme are “cap and cash back” or “pollution reduction refund.” These terms are so entirely laughable that I hope these eco-communists proceed with this farce.

The correct revised term for cap and trade is “cap and tax.” The cap and trade legislation before Congress now will increase costs dramatically for power producers, and this will generate a tax on all consumers of power, not only at the power meter, but also increased consumer prices due to increased power costs to manufacturers and food producers. The fact that the proposal includes tax credits to low income persons (who don’t pay taxes anyway) indicates that they know for a fact that they know it will increase prices nationwide on everything.

However, these scheming eco-Orewellians have a powerful friend in the radical leftist Barak Obama, and what Obama wants, Obama will demand he gets. In Obama’s effort to destroy and “remake” the United States, all vestiges of free markets must be destroyed via government control. In the midst of the bank and car industry crises, Obama even sent Timothy “Timmah!” Geithner up to Congress with a budget document proposing their Cap and Tax scheme.

Beware America. The anti-success, anti-wealth eco-campaigners have a bevy of proposals to lower your standard of living and increase the expense of everything you need.

Obama Finally Admits What I've Been Saying All Along

I have written that Obama is a sociopathic narcissist who believes he was put in the White House to transform the nation. That starts with destroying the existing national order and remaking the nation in his own Statist, socialist image.

Tonight, in what is becoming his twice-monthly habit of interrupting prime time television viewing with another round of sycophantic coverage, B. Hussein Obama said:

"We've begun the work of remaking America.
We are off to a good start. But it is just a start."

B. Hussein Obama is now so power drunk, he claims the power to direct bank business and design cars. He aims to save the American car company Chrysler LLC by selling it to Italy's Fiat.

Just wait until he issues wage and price controls, socializes health care, and starts ruling by decree. You read it here first.

Obama, America did not and does not need to be remade. By the time you are done, it will likely need a divorce attorney.

The Feds Begin Their Move to Socialize US Banks

Bloomberg news services is reporting that not less than six of the twenty largest U.S. banks require additional capital as indicated by the Treasury Department's fictitious stress tests. As predicted in my post yesterday, both Citi and BoA are in the group requiring "additional capital."

This information is attributed to persons who have been briefed on the matter.

The Treasury Department intentionally set up the stress test to favor the conversion of preferred shares to common voting shares of stock so that it can move to take a controlling interest in these large banks. What makes the matter laughable is that the conversion of the shares provides not one additional dollar to the banks. How this conversion provides "additional" capital in any real sense of the word requires a sincere act of faith in the US messiah President.

In short, converting the preferred shares to common voting stock is an objective, not a solution.

A church might call this a mystery, but I call it Socialism. President Barak Hussein Obama is a committed Socialist, and he is seeking to destroy the capitalist system in the United States.

Capitalism's Destruction Imminent

Redwarning was established to warn the American public of the coming wave of Socialist/Statist policies which were sure to come from the presidential election of 2008. I am not surprised with the speed and scope that Barak Hussein Obama has moved to place a stunning amount of the United States economy effectively under government control. I am surprised at how deluded the American public remains about Obama’s actual plans.

Barak Hussein Obama is a sociopathic narcissist who believes he was put in the White House to transform the nation. Transformation is not a modification; Obama is not content to be a good keeper of the nation. To transform the nation into his image, he must start with destroying the existing national order. The existing national order was republican form of government and a capitalist economy. Obama is methodically setting out to destroy the capitalist economy first. Can the over attacks on the republican form of government be far behind?

This past week, the Barak Hussein Obama has made it most dramatic grab for the control and destruction of capitalism. Barak Hussein Obama wishes to convert the preferred stock the Bush administration forced banks to issue in exchange for TARP funding for voting, controlling common shares. To kill capitalism, Obama must control the capital. To do this, he must control the banks. To control the banks, he must control the voting shares of the banks. To obtain the voting shares, he must trump up a reason to do so.

There is a reason by which the federal government may take control of a bank, namely, during a bank failure when the bank is insured by the FDIC or a similar program, and the government cannot find another health bank to buy or assume the failing bank. This is only in the case of an actual bank failure. Of course, in such an event where no merger partner can be found, the federal government undertakes to pay off the depositors and wind up the bank. At the end of the process, the federal government does not control and run a commercial bank.

What Obama is suggesting is different. The large, meaningful banks that have received TARP money are not failing. Many seek to repay TARP now to redeem the preferred shares and get the government out of the boardroom and back to a regulatory scheme.

Obama and Treasury Secretary Timmah! Geithner are afraid to lose control over the banks. Obama and Geithner have now invented a series of heretofore unknown and unpublished “stress tests” to determine, based on their own unpublished standards, whether banks are “sustainable” without a continued infusion of TARP money. The stress tests are a fiction designed to make the banks fail.

When the large commercial banks “fail” these stress tests, Obama and Geithner will declare that they need more capital, and will force the banks to take more TARP money in exchange for turning over control and ownership of the bank to the US Government through the conversion of the preferred stock to common voting stock.

I predict Bank of America and Citigroup will both be told that they are undercapitalized as a result of these “stress tests.”

Not even notorious Enron advisor and left wing economist Paul Krugman can see a benefit to the taxpayers of changing the preferred stock to common stock. In his April 20th blog post, Krugman writes “[C]onverting preferred into common does nothing: it’s just a swap among the junior stuff, with no impact further up the line. It’s certainly not a fresh infusion of capital in any meaningful sense. So who is supposed to be fooled by this?”

At least Krugman has the intellectual honestly to admit that there is no benefit the taxpayers or the banks to the conversion of the preferred stock. What the leftist Krugman takes pains in his blog to NOT point out, is that common stock is voting stock that permits the government to own and control – Socialize -- the banks.

Obama is on a long march to Socialist centralized control of the US economy. The banks and auto manufacturers are first. The medical industry is next, and no one is safe from the march of the reds in Washington. The Tea Party patriots better man up for a fight.

Some of the MSM are starting to get it

Stuart Varney, a refugee of European Socialism and Fox Business News commentator, describes in the Wall Street Journal how President Obama is behaving like a Statist.

http://online.wsj.com/article/SB123879833094588163.html

GOP members voting for Statism

The following House members of the GOP voted in favor of legislation that will allow a Government bureaucrat to determine “reasonable” wages for each and every worker in any industry that receives Government money. This is old-style Soviet central control of the economy. The Government has no business regulating salaries to be determined by employers and employees.

I cannot imagine that even the Dems’ precious Unions like this legislation. The UAW better hope that no Government bureaucrat reviews how much lug nut turners earn on the line at GM.

At any rate, here are the names of the RINOs, further demonstrating why a philosophy-free GOP is a minority party.

Bilirakis
Brown-Waite, Ginny
Cao
Diaz-Balart, L.
Diaz-Balart, M.
Duncan
Jones
McHugh
Rohrabacher
Ros-Lehtinen

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.