Showing posts with label bailout. Show all posts
Showing posts with label bailout. Show all posts

Thursday, December 26, 2013

The next too-big-to-fail train wreck on the horizon

A Taxpayer Bailout for ObamaCare

Canada Free Press, December 26, 2013

An American public already reeling from the catastrophic rollout of ObamaCare will more than likely be hearing an unfamiliar term being bandied about in the new year. “Risk corridor” refers to a provision in the law that allows the government to “stabilize” premium costs for insurance companies during the first three years of the healthcare rollout.

If insurance companies’ “target” costs for providing healthcare have been miscalculated, the Department of Health and Human Services (HHS) will intercede on their behalf. Syndicated columnist Charles Krauthammer illuminates the nature of that intercession. “The insurers understand that they’re going to be completely ruined,” Krauthammer explains. “And what’s going to happen as a result of this? There’s only one way out, a huge government bailout of the insurers is waiting at the end of next year.” More accurately, it will be a taxpayer-funded bailout, similar to the ones given to the banks and the car companies.

Risk corridors were established to protect insurance companies that signed up too many sick people, relative to the number of healthy enrollees. They were part of a system that also included two other concepts known as “reinsurance” and “risk adjustment.”

The reinsurance part of the equation initially compensated insurance companies for enrollees whose costs exceed $60,000 per year. For 2014, that compensation is funded by a $10 billion fund, fed by a $63 tax that has been levied on all healthcare plans. And while the program collects those taxes even from large employer-sponsored plans, payouts only help to underwrite the costs of individual and small-group plans.




Saturday, February 11, 2012

NetRight Daily: The ‘deadbeat’ bailout

Deadbeat homeowners who weren’t making payments on their mortgages are receiving a bailout. Yes, you read that correctly.

Check out this piece from Charles Gasparaino on the matter:

It’s hard to imagine a less-deserving group of victims: people who gambled during the housing bubble by purchasing homes with borrowed money that they knew or should have known they couldn’t afford, but who are now able to stay in the homes they should have never bought because of what amounts to paperwork errors on the part of the nation’s big banks.

But that’s essentially what went down yesterday, thanks to the Obama administration’s latest re-election gimmick — the nationwide mortgage-foreclosure settlement.

Everyone — from the president, to officials at the Department of Housing and Urban Development, to at least some of 49 state attorneys general who cobbled together the pact, including New York’s Eric Schneiderman — took the all-too-familiar class-warfare route in selling the deal to the public and national media. They’d like us to believe that the nation’s largest banks are finally paying for their bad behavior during the housing bubble and its aftermath, when millions of Americans either lost or were in jeopardy of losing their homes.

That’s because the banks will cough up $26 billion for various abuses, including illegal foreclosures. Many “victimized” home-owners will get relief, mostly in the form of refinancing of underwater mortgages. So, they can stay in their homes, at least for a while.

It’s such a win-win, the administration is boasting, that even those people not part of the specific victimized class will benefit because the deal creates a stronger housing market. If banks can’t foreclose on properties, the theory goes, they can’t depress housing prices more by selling these properties on the cheap.

Problem is, almost all of the “logic” behind the deal isn’t logic, but a combination of half truths and outright lies. Even worse, the settlement will likely prolong the housing slump and set the stage for it to happen again.

CONTINUED:
http://www.nypost.com/p/news/opinion/opedcolumnists/deadbeat_bailout_LBRdYWq9BHXu4kIFTgHL1M

Sunday, November 20, 2011

One Year After the GM IPO…How is Our $50 Billion Investment Looking?

"Whiteacre was not lying. LOANS were paid back. Loans…not the $50 billion dollar investment. There is a difference.



The loans Whiteacre was speaking of were just a small portion of the $50 billion dollar bailout. In fact, they were less than 10 percent of the total package. And the sources of the money used to pay off those loans is also an important story."

Reason.tv provides a simple and graphic explanation of the facts of this reported payback of the loan.

http://www.theblaze.com/stories/one-year-after-the-gm-ipo-how-is-our-50-billion-investment-looking/

Friday, October 22, 2010

Sun Journal Letter to the Editor, New Bern, NC

Sun Journal



Letter to the Editor


BEWARE the Lame Duck

Perhaps the most dangerous time ahead for our Nation will occur when Congress reconvenes after November 2nd.

Democrats in the Senate, in early October, held a recess hearing covering a taxpayer bailout of union pensions and a plan to seize private 401(k) plans to more "fairly" distribute taxpayer-funded pensions to everyone.

Sen. Tom Harkin (D-Iowa), Chairman of the Health, Education, Labor and Pensions (HELP) Committee heard from hand-picked witnesses advocating the infamous "Guaranteed Retirement Account" (GRA).

In a nutshell, under the GRA system government would seize private 401(k) accounts, setting up an additional 5% mandatory payroll tax to dole out a "fair" pension to everyone using that confiscated money coupled with the mandated contributions. This would, of course, be a sister government ponzi scheme working in tandem with Social Security, the primary purpose being to give big government politicians additional taxpayer funds to raid to pay for their out-of-control spending.

We can also expect a renewal of the Dream (Amnesty) Act (S-729) which was defeated when it was attached to the Defense Authorization Bill.

The DREAM Act has two major components:


(1) it grants amnesty to illegal aliens who entered the country as children and have met minimal educational requirements; and

(2) it reverses current law to allow states to provide taxpayer subsidized in-state tuition to illegal aliens.

When S-729 first failed, Senators Reid and Durbin took to the Senate floor to angrily denounce the Senators who voted no. They accused their colleagues of not having the courage to bring the DREAM Act to a vote and vowed that this would not end the fight to pass this amnesty legislation. Amnesty is a big part of the progressive agenda; it is also a recruitment tool for the Socialists in the Democratic Party.

If any of this doesn’t sound like a government you grew up with, it’s not. It is the new order of things for Americans and it is Americans who can stop this a few weeks from now. First we must vote out the progressive liberals who are flirting with Socialism. After their removal we must unite under a common cause; the destruction of Socialism on our shores.

When Democrats, Republicans, Independents and Conservatives come together, there is nothing they cannot achieve. Isn’t it time we stand together?

Louis Call, CCTA Member

Wednesday, September 22, 2010

Michelle Malkin

The Delphi Disaster: An Economic Horror Story Obama Won't Tell

The White House believes it can win back depressed and economically stressed voters by turning President Obama into the storyteller-in-chief again. But victims of Obama's Chicago politics don't want to hear any more of his own well-worn tales of struggle and sacrifice. They've got their own tragedies to tell -- heart-wrenching dramas of personal and financial suffering at the very hands of Obama.


Consider the real-life horror story of 20,000 white-collar workers at Delphi, a leading auto parts company spun off from GM a decade ago. As Washington rushed to nationalize the U.S. auto industry with $80 billion in taxpayer "rescue" funds and avoid contested court termination proceedings, the White House auto team schemed with Big Labor bosses to preserve UAW members' costly pension funds by shafting their nonunion counterparts. In addition, the nonunion pensioners lost all of their health and life insurance benefits.

The abused workers -- most from hard-hit northeast Ohio, Michigan and neighboring states -- had devoted decades of their lives as secretaries, technicians, engineers and sales employees at Delphi/GM. Some workers have watched up to 70 percent of their pensions vanish.

John Berent of Marblehead, Ohio, lost one-third of his pension: "I worked as a salaried employee for GM (30 years) and Delphi (10 years). After 40 years of dedicated service, I was forced to retire. Then Delphi terminated my health care, life insurance, vision, dental, then terminated the pension plan. Everything I worked 40 years for was wiped out."

Kelly Fabrizio of Franksville, Wis., saw her pension reduced by 55 percent after working 30 years at Delphi/GM: "I am truly scared for my future. Every day I wake up, shake my head and say out loud -- This Is Not How It Was Supposed To Be."

Roger Hoke of Columbus, Mich., and his wife were both longtime Delphi workers. His pension shrunk by more than 40 percent: "After 33 years with GM and another 10 with Delphi, what did I do wrong to deserve such a fate?"

Paul Dobosz of the Delphi Salaried Retiree Association recounts how they got screwed: "The Auto Task Force knew that the only thing standing in the way of GM getting what they wanted out of Delphi was the already frozen pension obligations." They hatched a plan to dump those pensions on the federally run Pension Benefit Guaranty Corporation, while at the same time "devising a clever way to make the UAW pensions whole using GM and TARP money to accomplish it. The scheme was documented in sworn depositions (that) revealed ... that some groups of workers were more 'politically sensitive' and would be afforded special treatment (i.e. subsidy using TARP money) while others less politically worthy would be left out."

In other words: Obama's team of auto-crats -- stocked with Big Labor-friendly appointees and self-admitted know-nothings about the car industry -- decided to "cherry pick" (one Obama official's own words) which obligations the new Government Motors company would assume and which they would abandon based on their own political whims and fealty. Due process and equal treatment of union and nonunion workers be damned. Administration officials assert that the Delphi workers' pension fund was underfunded, but two separate actuarial analyses undercut the claim.
 
The Delphi workers sued the feds and will have a day in court on Sept. 24. They are not asking for a bailout. They are simply asking for fair treatment under the rule of law. Delphi supporters also point out that the very scheme used to "top up" the union workers' pensions with taxpayer subsidies was challenged by the federal government and ruled illegal by the Supreme Court in the 1990s.


A separate investigation by TARP inspector general Neil Barofsky, announced last week, will also probe "whether political considerations played a role in favoring hourly over salaried retirees." It shouldn't take long to unearth the facts. Obama's own former auto czar Steve Rattner admitted in his new memoir that "attacking the union's sacred cow" could "jeopardize" the auto bailout deal.

While Obama conducts his worker empathy tour at staged town halls and rallies across the country, his Treasury Department continues to stonewall and refuses to answer questions about the Delphi disaster. But many workers left out in the cold know the truth: Lip-biting, yarn-spinning Obama doesn't feel their pain. He caused it.

Michelle Malkin makes news and waves with a unique combination of investigative journalism and incisive commentary. She is the author of Culture of Corruption.
 
http://townhall.com/columnists/MichelleMalkin/2010/09/22/the_delphi_disaster_an_economic_horror_story_obama_wont_tell/page/1

Saturday, September 18, 2010

Michelle Malkin

Harry Reid’s Illegal Alien Student Bailout


Friday, September 17, 2010

The so-called DREAM Act would create an official path to Democratic voter registration for an estimated two million college-age illegal aliens.


Look past the public relations-savvy stories of “undocumented” valedictorians left out in the cold. This is not about protecting “children.” It’s about preserving electoral power through cap-and-gown amnesty.

Senate Majority Leader Harry Reid announced this week that he’s attaching the DREAM Act to the defense authorization bill. With ethnic activists breathing down his neck and President Obama pushing to fulfill his campaign promise to Hispanics, Reid wants his queasy colleagues to vote on the legislation next week.

Open-borders lawmakers have tried and failed to pass the DREAM Act through regular channels for the past decade. That’s because informed voters know giving green cards to illegal alien students undermines the rule of law, creates more illegal immigration incentives and grants preferential treatment to illegal alien students over law-abiding native and naturalized American students struggling to get an education in tough economic times.

This bad idea is compounded by a companion proposal to recruit more illegal aliens into the military with the lure of citizenship (a fraud-ridden and reckless practice countenanced under the Bush administration).


DREAM Act lobbyists are spotlighting heart-wrenching stories of high-achieving teens brought to this country when they were toddlers. But instead of arguing for case-by-case dispensations, the protesters want blanket pardons.

The broadly drafted Senate bill would confer benefits on applicants up to age 35, and the House bill contains no age ceiling at all. The academic achievement requirements are minimal. Moreover, illegal aliens who didn’t arrive in the country until they turned 15 -- after they laid down significant roots in their home country—would be eligible for DREAM Act benefits and eventual U.S. citizenship. And like past amnesty packages, the Democratic plan is devoid of any concrete eligibility and enforcement mechanisms to deter already-rampant immigration benefit fraud.

The DREAM Act sponsors have long fought to sabotage a clearly worded provision in the 1996 Illegal Immigration Reform and Immigrant Responsibility Act (IIRIRA) that states: “Notwithstanding any other provision of law, an alien who is not lawfully present in the United States shall not be eligible on the basis of residence within a State (or a political subdivision) for any postsecondary education benefit unless a citizen or national of the United States is eligible for such a benefit (in no less an amount, duration, and scope) without regard to whether the citizen or national is such a resident.”

Ten states defied that federal law and offered DREAM Act-style tuition preference to illegal aliens: California, Illinois, Kansas, Nebraska, New Mexico, New York, Oklahoma, Texas, Utah and Washington. The last time DREAM Act champions tried to tack their scheme onto a larger immigration proposal, they snuck in language that would absolve those 10 states of their law-breaking by repealing the 1996 law retroactively—and also offering the special path to green cards and citizenship for illegal alien students.

Despite the obvious electoral advantage this plan would give Democrats, several pro-illegal alien amnesty Republicans crossed the aisle to support the DREAM Act, including double-talking Sens. John McCain, Richard Lugar, Bob Bennett, Sam Brownback, Norm Coleman, Susan Collins, Larry Craig, Chuck Hagel, Kay Bailey Hutchison, Mel Martinez and Olympia Snowe, as well as presidential candidate Mike Huckabee (who champions even greater illegal alien student benefits than those proposed by Democrats).

After paying lip service to securing the borders, McCain promised DREAM Act demonstrators this week that he supported the bill and would work to “resolve their issues.”

Out-of-touch pols might want to pay attention to the world outside their bubble. A recent Quinnipiac University poll shows that Americans across the political spectrum favor tougher enforcement of existing immigration laws over rolling out the amnesty welcome wagon.

When asked, “Do you think immigration reform should primarily move in the direction of integrating illegal immigrants into American society or in the direction of stricter enforcement of laws against illegal immigration?” solid majorities of registered Republicans, Democrats and independents chose stricter enforcement over greater integration of the illegal alien population.

Democrats outside the Beltway have grown increasingly averse to signing on to illegal alien incentives—especially as the Obama jobs death toll mounts and economic confidence plummets. Here in Colorado, a handful of Democrats joined Republican lawyers to kill a state-level DREAM Act amid massive higher education budget cuts and a bipartisan voter backlash.

Asked why she opposed the illegal alien student bailout, one Democratic lawmaker said quite simply: “I listened to my constituents.” An alien concept in Washington, to be sure.

Wednesday, September 15, 2010

Govt to Investigate Obama’s Big Labor Bailout

Govt to Investigate Obama’s Big Labor Bailout

The Wall Street Journal--September 14, 2010

Obstacle to Deficit Cutting: A Nation on Entitlements

SARA MURRAY

Efforts to tame America's ballooning budget deficit could soon confront a daunting reality: Nearly half of all Americans live in a household in which someone receives government benefits, more than at any time in history.

At the same time, the fraction of American households not paying federal income taxes has also grown—to an estimated 45% in 2010, from 39% five years ago, according to the Tax Policy Center, a nonpartisan research organization.

A little more than half don't earn enough to be taxed; the rest take so many credits and deductions they don't owe anything. Most still get hit with Medicare and Social Security payroll taxes, but 13% of all U.S. households pay neither federal income nor payroll taxes.

"We have a very large share of the American population that is getting checks from the government," says Keith Hennessey, an economic adviser to President George W. Bush and now a fellow at the conservative Hoover Institution, "and an increasingly smaller portion of the population that's paying for it."

Hourly Work Force Carries Burden . Access thousands of business sources not available on the free web. Learn More.The dimensions of the budget hole were underscored Monday, when the Treasury reported that the government ran a $1.26 trillion deficit for the first 11 months of the fiscal year, on pace to be the second-biggest on record.

Yet even as Americans express concern over the deficit in opinion polls, many oppose benefit cuts, particularly with the economy on an uneven footing. A Wall Street Journal/NBC News poll conducted late last month found 61% of voters were "enthusiastic" or "comfortable" with congressional candidates who support cutting federal spending in general. But 56% expressed the same enthusiasm for candidates who voted to extend unemployment benefits.

As recently as the early 1980s, about 30% of Americans lived in households in which an individual was receiving Social Security, subsidized housing, jobless benefits or other government-provided benefits. By the third quarter of 2008, 44% were, according to the most recent Census Bureau data.

That number has undoubtedly gone up, as the recession has hammered incomes. Some 41.3 million people were on food stamps as of June 2010, for instance, up 45% from June 2008. With unemployment high and federal jobless benefits now available for up to 99 weeks, 9.7 million unemployed workers were receiving checks in late August 2010, more than twice as many as the 4.2 million in August 2008.

Still more Americans—19 million by 2019, according to the Congressional Budget Office—will get federal aid to buy health insurance when legislation passed this year is implemented.

The expanding federal safety net has helped shelter many families from the worst of the downturn. Charlene A. Mueller-Holden doesn't fit the stereotype of a person on benefits. Laid off from J.P. Morgan Chase & Co. in January 2008, Ms. Mueller-Holden, 38, drew unemployment for 99 weeks.

The Newark, Del., resident knocked $40 a month off her mortgage payments through the federal Making Home Affordable Program, designed to keep people in their homes by helping them modify or refinance their mortgages. But when her unemployment benefits ran out, Ms. Mueller-Holden and her husband, a government employee, couldn't afford the $1,008 monthly payments.

She turned to the Delaware State Housing Authority which, under a federally subsidized program aimed at helping families with children stay in their homes, gave her $1,000 a month for five months toward mortgage payments. She and her two sons ate lunch for free at the local school this summer, and she has applied for free lunch for one of her sons who will be a first grader this year.

Ms. Mueller-Holden's family earned too little to pay federal taxes last year, and received an extension on their state taxes. "Quite frankly, I don't care about the deficit," says Ms. Mueller-Holden. "It's going to take years upon years upon years to pay this all back," she says, so it's better to focus on job growth now and deal with the deficit later.

Government data don't show how many of the households receiving government benefits also escape federal taxes. But there is certainly some overlap between the two groups, since many benefits are aimed at those earning too little to pay income taxes and at people who don't have jobs, and who thus don't pay payroll taxes.

Cutting spending on these "entitlements" is widely seen as an inevitable ingredient in any credible deficit-reduction program. Yet despite occasional bouts of belt-tightening in Washington and bursts of discussion about restraining big government, the trend toward more Americans receiving government benefits of one sort or another has continued for more than 70 years—and shows no sign of abating.

An aging population is adding to the ranks of Americans receiving government benefits, and will continue to do so as more of the large baby-boom generation, those born between 1946 and 1964, become eligible. Today, an estimated 47.4 million people are enrolled in Medicare, up 38% from 1990. By 2030, the number is projected to be 80.4 million.

The difficulty of restraining benefits when so much of the population depends on them is now on view across Europe, where efforts to rein in deficits are forcing governments to cut popular entitlements. European countries have traditionally provided far more generous welfare benefits than the U.S. has, including monthly allowances for children regardless of income, free college tuition and universal health care. Public retirement programs are also bigger, since the combination of aging populations and low birth rates means fewer workers are paying into the system.

In recent months, political leaders in Europe have struggled to convince voters that change is necessary. German Chancellor Angela Merkel has exempted pensions from her government's planned budget cuts, reflecting the growing power of the retiree vote. French President Nicolas Sarkozy is facing mass protests, including a national strike week, as he tries to raise France's minimum retirement age from 60 to 62. Greece's government had to face down demonstrations this year when it slashed pension benefits, as it was forced to do to get bailout money from other European countries and the International Monetary Fund.

Still, Europe does offer examples that change is possible. Germany slashed benefits for the long-term unemployed in 2004, a step that analysts credit with prompting more Germans to get jobs as well as improving the country's budget balance. Cuts to entitlements are politically possible, says Daniel Gros, director of the Center for European Policy Studies, a nonpartisan think tank in Brussels, "but societies need some time to get used to the idea."

The U.S. government first offered large-scale assistance during Franklin Delano Roosevelt's New Deal. The Social Security Act, passed in 1935, created the popular retirement program as well as unemployment compensation, the early stages of what became known as "welfare" and assistance to the blind and elderly. In the 1940s, the G.I. Bill offered unemployment benefits, education assistance and loans to veterans. That same decade, Washington began offering free or reduced-price lunches to children from low-income families and, a decade later, monthly benefits to the disabled.

Lyndon Johnson's Great Society programs brought food stamps plus Medicare and Medicaid. In the 1970s, Supplemental Security Income was created on top of routine Social Security benefits for the poorest of the elderly and disabled, and so-called Section 8 vouchers began subsidizing rental housing. The earned-income tax credit was launched in 1975 to offer extra cash to low-wage workers, and grew in the 1990s to become one of the government's principle antipoverty programs.

Benefits for children were expanded in 1997 with the State Children's Health Insurance Program during the Clinton administration—and were expanded again in 2009. Shortly after President Barack Obama took office, Congress passed the American Recovery and Reinvestment Act, the stimulus bill, which among other things extended unemployment compensation and offered incentives for states to cover more workers.

All this is expensive. Payments to individuals—a budget category that includes all federal benefit programs plus retirement benefits for federal workers—will cost $2.4 trillion this year, up 79%, adjusted for inflation, from a decade earlier when the economy was stronger. That represents 64.3% of all federal outlays, the highest percentage in the 70 years the government has been measuring it. The figure was 46.7% in 1990 and 26.2% in 1960.

When the economy recovers, some—but not all—current recipients of federal aid are likely to lose their benefits, which some say is reason enough to keep them going for now.

"If there became an expectation that government was going to provide over half of the population's well-being to a significant degree without requiring anything of the recipients, there would be reason for concern," says Robert Reischauer, a former Congressional Budget Office director and now president of the Urban Institute, a liberal-leaning think tank in Washington, D.C. "I don't think that's where we are or where we're headed."

The public appears divided on what to do. A new Allstate/National Journal poll found that 35% of voters want the government to make sure future retirees receive all the benefits they've been promised even if it means raising taxes. Another 34% said the government should make retirement programs "financially sustainable" by making some cuts to those benefits and raising some taxes, and 22% said they'd be willing to see benefits cut to restrain the programs' rising costs.

The call for restraining benefits resonates with voters like Robert Letherman. "You name it, someone is lining up to get bailed out, or a handout, courtesy of the hard-working American taxpayer," says Mr. Letherman, 39, a real-estate developer in Elkhart, Ind.

Mr. Letherman says he has struggled through the recession like many others, but doesn't qualify for government assistance. His income has declined 40% since 2007. Some $4 million in development projects percolating in the spring of 2007 have since been shelved.

He supports helping people in need, says Mr. Letherman, but believes many people game the system. Extended unemployment benefits, for example, give some Americans an excuse not to go back to work, he says. If it were up to him, government would be half the size it is now.

He favors eliminating pensions for all government workers, excluding military and intelligence personnel, and would impose a nationwide sales tax to pay off the country's debt. "If we continue down the path of deficit spending, the great recession of 2008 will be nothing compared to what we will face in five, 10, 20 years," he says.

Cutting federal benefits while the economy is still weak would be a mistake, some analysts say, because it could hinder recovery by giving consumers less money to spend.

Paul Hester has relied on government benefits since he lost his job in June 2009. The 54-year-old microbiologist has a master's degree and was earning a salary of $50,000 at the Indiana State Department of Health. He says he regularly looks for jobs, but has landed only two interviews in the past year.

Influenced by the credit wariness of parents who lived through the Great Depression, the Indianapolis resident has always been thrifty. He once watched his dad walk into a dealership, "plop down $10,000 in cash and buy a car." Mr. Hester has one credit card, and before he was unemployed, he tried to pay it off every month.

He lives on $375 a week in unemployment checks and his health-insurance premiums are subsidized by the federal government under a provision in the fiscal stimulus enacted by Congress in February 2009. His daughter, a college sophomore, pays for part of her schooling with Pell Grants, a federal program for low-income students that is set to expand because of new legislation that increased the number and size of grants.

"I don't like taking government money," says Mr. Hester, but "what else is there?"

—Marcus Walker contributed to this article.


Write to Sara Murray at sara.murray@wsj.com

Copyright 2009 Dow Jones & Company, Inc. All Rights Reserved

http://online.wsj.com/article/SB10001424052748703791804575439732358241708.html?mod=WSJ_hpp_LEFTWhatsNewsCollection

Friday, September 10, 2010

Forbes.com

How Obama Thinks

The President isn't exactly a socialist. So what's driving his hostility to private enterprise? Look to his roots.

Barack Obama is the most antibusiness president in a generation, perhaps in American history. Thanks to him the era of big government is back. Obama runs up taxpayer debt not in the billions but in the trillions. He has expanded the federal government's control over home mortgages, investment banking, health care, autos and energy. The Weekly Standard summarizes Obama's approach as omnipotence at home, impotence abroad.


The President's actions are so bizarre that they mystify his critics and supporters alike. Consider this headline from the Aug. 18, 2009 issue of the Wall Street Journal: "Obama Underwrites Offshore Drilling." Did you read that correctly? You did. The Administration supports offshore drilling--but drilling off the shores of Brazil. With Obama's backing, the U.S. Export-Import Bank offered $2 billion in loans and guarantees to Brazil's state-owned oil company Petrobras to finance exploration in the Santos Basin near Rio de Janeiro--not so the oil ends up in the U.S. He is funding Brazilian exploration so that the oil can stay in Brazil.

More strange behavior: Obama's June 15, 2010 speech in response to the Gulf oil spill focused not on cleanup strategies but rather on the fact that Americans "consume more than 20% of the world's oil but have less than 2% of the world's resources." Obama railed on about "America's century-long addiction to fossil fuels." What does any of this have to do with the oil spill? Would the calamity have been less of a problem if America consumed a mere 10% of the world's resources?


The oddities go on and on. Obama's Administration has declared that even banks that want to repay their bailout money may be refused permission to do so. Only after the Obama team cleared a bank through the Fed's "stress test" was it eligible to give taxpayers their money back. Even then, declared Treasury Secretary Tim Geithner, the Administration might force banks to keep the money.

The President continues to push for stimulus even though hundreds of billions of dollars in such funds seem to have done little. The unemployment rate when Obama took office in January 2009 was 7.7%; now it is 9.5%. Yet he wants to spend even more and is determined to foist the entire bill on Americans making $250,000 a year or more. The rich, Obama insists, aren't paying their "fair share." This by itself seems odd given that the top 1% of Americans pay 40% of all federal income taxes; the next 9% of income earners pay another 30%. So the top 10% pays 70% of the taxes; the bottom 40% pays close to nothing. This does indeed seem unfair--to the rich.

Obama's foreign policy is no less strange. He supports a $100 million mosque scheduled to be built near the site where terrorists in the name of Islam brought down the World Trade Center. Obama's rationale, that "our commitment to religious freedom must be unshakable," seems utterly irrelevant to the issue of why the proposed Cordoba House should be constructed at Ground Zero.

Recently the London Times reported that the Obama Administration supported the conditional release of Abdel Baset al-Megrahi, the Lockerbie bomber convicted in connection with the deaths of 270 people, mostly Americans. This was an eye-opener because when Scotland released Megrahi from prison and sent him home to Libya in August 2009, the Obama Administration publicly and appropriately complained. The Times, however, obtained a letter the Obama Administration sent to Scotland a week before the event in which it said that releasing Megrahi on "compassionate grounds" was acceptable as long as he was kept in Scotland and would be "far preferable" to sending him back to Libya. Scottish officials interpreted this to mean that U.S. objections to Megrahi's release were "half-hearted." They released him to his home country, where he lives today as a free man.


One more anomaly: A few months ago nasa Chief Charles Bolden announced that from now on the primary mission of America's space agency would be to improve relations with the Muslim world. Come again? Bolden said he got the word directly from the President. "He wanted me to find a way to reach out to the Muslim world and engage much more with dominantly Muslim nations to help them feel good about their historic contribution to science and math and engineering." Bolden added that the International Space Station was a model for nasa's future, since it was not just a U.S. operation but included the Russians and the Chinese. Obama's redirection of the agency caused consternation among former astronauts like Neil Armstrong and John Glenn, and even among the President's supporters: Most people think of nasa's job as one of landing on the moon and Mars and exploring other faraway destinations. Sure, we are for Islamic self-esteem, but what on earth was Obama up to here?

Theories abound to explain the President's goals and actions. Critics in the business community--including some Obama voters who now have buyer's remorse--tend to focus on two main themes. The first is that Obama is clueless about business. The second is that Obama is a socialist--not an out-and-out Marxist, but something of a European-style socialist, with a penchant for leveling and government redistribution.

These theories aren't wrong so much as they are inadequate. Even if they could account for Obama's domestic policy, they cannot explain his foreign policy. The real problem with Obama is worse--much worse. But we have been blinded to his real agenda because, across the political spectrum, we all seek to fit him into some version of American history. In the process, we ignore Obama's own history. Here is a man who spent his formative years--the first 17 years of his life--off the American mainland, in Hawaii, Indonesia and Pakistan, with multiple subsequent journeys to Africa.


A good way to discern what motivates Obama is to ask a simple question: What is his dream? Is it the American dream? Is it Martin Luther King's dream? Or something else?

It is certainly not the American dream as conceived by the founders. They believed the nation was a "new order for the ages." A half-century later Alexis de Tocqueville wrote of America as creating "a distinct species of mankind." This is known as American exceptionalism. But when asked at a 2009 press conference whether he believed in this ideal, Obama said no. America, he suggested, is no more unique or exceptional than Britain or Greece or any other country.


Perhaps, then, Obama shares Martin Luther King's dream of a color-blind society. The President has benefited from that dream; he campaigned as a nonracial candidate, and many Americans voted for him because he represents the color-blind ideal. Even so, King's dream is not Obama's: The President never champions the idea of color-blindness or race-neutrality. This inaction is not merely tactical; the race issue simply isn't what drives Obama.

What then is Obama's dream? We don't have to speculate because the President tells us himself in his autobiography, Dreams from My Father. According to Obama, his dream is his father's dream. Notice that his title is not Dreams of My Father but rather Dreams from My Father. Obama isn't writing about his father's dreams; he is writing about the dreams he received from his father.

So who was Barack Obama Sr.? He was a Luo tribesman who grew up in Kenya and studied at Harvard. He was a polygamist who had, over the course of his lifetime, four wives and eight children. One of his sons, Mark Obama, has accused him of abuse and wife-beating. He was also a regular drunk driver who got into numerous accidents, killing a man in one and causing his own legs to be amputated due to injury in another. In 1982 he got drunk at a bar in Nairobi and drove into a tree, killing himself.

An odd choice, certainly, as an inspirational hero. But to his son, the elder Obama represented a great and noble cause, the cause of anticolonialism. Obama Sr. grew up during Africa's struggle to be free of European rule, and he was one of the early generation of Africans chosen to study in America and then to shape his country's future.


I know a great deal about anticolonialism, because I am a native of Mumbai, India. I am part of the first Indian generation to be born after my country's independence from the British. Anticolonialism was the rallying cry of Third World politics for much of the second half of the 20th century. To most Americans, however, anticolonialism is an unfamiliar idea, so let me explain it.

Anticolonialism is the doctrine that rich countries of the West got rich by invading, occupying and looting poor countries of Asia, Africa and South America. As one of Obama's acknowledged intellectual influences, Frantz Fanon, wrote in The Wretched of the Earth, "The well-being and progress of Europe have been built up with the sweat and the dead bodies of Negroes, Arabs, Indians and the yellow races."

Anticolonialists hold that even when countries secure political independence they remain economically dependent on their former captors. This dependence is called neocolonialism, a term defined by the African statesman Kwame Nkrumah (1909--72) in his book Neocolonialism: The Last Stage of Imperialism. Nkrumah, Ghana's first president, writes that poor countries may be nominally free, but they continue to be manipulated from abroad by powerful corporate and plutocratic elites. These forces of neocolonialism oppress not only Third World people but also citizens in their own countries. Obviously the solution is to resist and overthrow the oppressors. This was the anticolonial ideology of Barack Obama Sr. and many in his generation, including many of my own relatives in India.


Obama Sr. was an economist, and in 1965 he published an important article in the East Africa Journal called "Problems Facing Our Socialism." Obama Sr. wasn't a doctrinaire socialist; rather, he saw state appropriation of wealth as a necessary means to achieve the anticolonial objective of taking resources away from the foreign looters and restoring them to the people of Africa. For Obama Sr. this was an issue of national autonomy. "Is it the African who owns this country? If he does, then why should he not control the economic means of growth in this country?"

As he put it, "We need to eliminate power structures that have been built through excessive accumulation so that not only a few individuals shall control a vast magnitude of resources as is the case now." The senior Obama proposed that the state confiscate private land and raise taxes with no upper limit. In fact, he insisted that "theoretically there is nothing that can stop the government from taxing 100% of income so long as the people get benefits from the government commensurate with their income which is taxed."

Remarkably, President Obama, who knows his father's history very well, has never mentioned his father's article. Even more remarkably, there has been virtually no reporting on a document that seems directly relevant to what the junior Obama is doing in the White House.


While the senior Obama called for Africa to free itself from the neocolonial influence of Europe and specifically Britain, he knew when he came to America in 1959 that the global balance of power was shifting. Even then, he recognized what has become a new tenet of anticolonialist ideology: Today's neocolonial leader is not Europe but America. As the late Palestinian scholar Edward Said--who was one of Obama's teachers at Columbia University--wrote in Culture and Imperialism, "The United States has replaced the earlier great empires and is the dominant outside force."

From the anticolonial perspective, American imperialism is on a rampage. For a while, U.S. power was checked by the Soviet Union, but since the end of the Cold War, America has been the sole superpower. Moreover, 9/11 provided the occasion for America to invade and occupy two countries, Iraq and Afghanistan, and also to seek political and economic domination in the same way the French and the British empires once did. So in the anticolonial view, America is now the rogue elephant that subjugates and tramples the people of the world

It may seem incredible to suggest that the anticolonial ideology of Barack Obama Sr. is espoused by his son, the President of the United States. That is what I am saying. From a very young age and through his formative years, Obama learned to see America as a force for global domination and destruction. He came to view America's military as an instrument of neocolonial occupation. He adopted his father's position that capitalism and free markets are code words for economic plunder. Obama grew to perceive the rich as an oppressive class, a kind of neocolonial power within America. In his worldview, profits are a measure of how effectively you have ripped off the rest of society, and America's power in the world is a measure of how selfishly it consumes the globe's resources and how ruthlessly it bullies and dominates the rest of the planet.


For Obama, the solutions are simple. He must work to wring the neocolonialism out of America and the West. And here is where our anticolonial understanding of Obama really takes off, because it provides a vital key to explaining not only his major policy actions but also the little details that no other theory can adequately account for.

Why support oil drilling off the coast of Brazil but not in America? Obama believes that the West uses a disproportionate share of the world's energy resources, so he wants neocolonial America to have less and the former colonized countries to have more. More broadly, his proposal for carbon taxes has little to do with whether the planet is getting warmer or colder; it is simply a way to penalize, and therefore reduce, America's carbon consumption. Both as a U.S. Senator and in his speech, as President, to the United Nations, Obama has proposed that the West massively subsidize energy production in the developing world.

Rejecting the socialist formula, Obama has shown no intention to nationalize the investment banks or the health sector. Rather, he seeks to decolonize these institutions, and this means bringing them under the government's leash. That's why Obama retains the right to refuse bailout paybacks--so that he can maintain his control. For Obama, health insurance companies on their own are oppressive racketeers, but once they submitted to federal oversight he was happy to do business with them. He even promised them expanded business as a result of his law forcing every American to buy health insurance.


If Obama shares his father's anticolonial crusade, that would explain why he wants people who are already paying close to 50% of their income in overall taxes to pay even more. The anticolonialist believes that since the rich have prospered at the expense of others, their wealth doesn't really belong to them; therefore whatever can be extracted from them is automatically just. Recall what Obama Sr. said in his 1965 paper: There is no tax rate too high, and even a 100% rate is justified under certain circumstances.

Obama supports the Ground Zero mosque because to him 9/11 is the event that unleashed the American bogey and pushed us into Iraq and Afghanistan. He views some of the Muslims who are fighting against America abroad as resisters of U.S. imperialism. Certainly that is the way the Lockerbie bomber Abdel Baset al-Megrahi portrayed himself at his trial. Obama's perception of him as an anticolonial resister would explain why he gave tacit approval for this murderer of hundreds of Americans to be released from captivity.


Finally, nasa. No explanation other than anticolonialism makes sense of Obama's curious mandate to convert a space agency into a Muslim and international outreach. We can see how well our theory works by recalling the moon landing of Apollo 11 in 1969. "One small step for man," Neil Armstrong said. "One giant leap for mankind."

But that's not how the rest of the world saw it. I was 8 years old at the time and living in my native India. I remember my grandfather telling me about the great race between America and Russia to put a man on the moon. Clearly America had won, and this was one giant leap not for mankind but for the U.S. If Obama shares this view, it's no wonder he wants to blunt nasa's space program, to divert it from a symbol of American greatness into a more modest public relations program.

Clearly the anticolonial ideology of Barack Obama Sr. goes a long way to explain the actions and policies of his son in the Oval Office. And we can be doubly sure about his father's influence because those who know Obama well testify to it. His "granny" Sarah Obama (not his real grandmother but one of his grandfather's other wives) told Newsweek, "I look at him and I see all the same things--he has taken everything from his father. The son is realizing everything the father wanted. The dreams of the father are still alive in the son."

In his own writings Obama stresses the centrality of his father not only to his beliefs and values but to his very identity. He calls his memoir "the record of a personal, interior journey--a boy's search for his father and through that search a workable meaning for his life as a black American." And again, "It was into my father's image, the black man, son of Africa, that I'd packed all the attributes I sought in myself." Even though his father was absent for virtually all his life, Obama writes, "My father's voice had nevertheless remained untainted, inspiring, rebuking, granting or withholding approval. You do not work hard enough, Barry. You must help in your people's struggle. Wake up, black man!"


The climax of Obama's narrative is when he goes to Kenya and weeps at his father's grave. It is riveting: "When my tears were finally spent," he writes, "I felt a calmness wash over me. I felt the circle finally close. I realized that who I was, what I cared about, was no longer just a matter of intellect or obligation, no longer a construct of words. I saw that my life in America--the black life, the white life, the sense of abandonment I'd felt as a boy, the frustration and hope I'd witnessed in Chicago--all of it was connected with this small piece of earth an ocean away, connected by more than the accident of a name or the color of my skin. The pain that I felt was my father's pain."

In an eerie conclusion, Obama writes that "I sat at my father's grave and spoke to him through Africa's red soil." In a sense, through the earth itself, he communes with his father and receives his father's spirit. Obama takes on his father's struggle, not by recovering his body but by embracing his cause. He decides that where Obama Sr. failed, he will succeed. Obama Sr.'s hatred of the colonial system becomes Obama Jr.'s hatred; his botched attempt to set the world right defines his son's objective. Through a kind of sacramental rite at the family tomb, the father's struggle becomes the son's birthright.

Colonialism today is a dead issue. No one cares about it except the man in the White House. He is the last anticolonial. Emerging market economies such as China, India, Chile and Indonesia have solved the problem of backwardness; they are exploiting their labor advantage and growing much faster than the U.S. If America is going to remain on top, we have to compete in an increasingly tough environment.


But instead of readying us for the challenge, our President is trapped in his father's time machine. Incredibly, the U.S. is being ruled according to the dreams of a Luo tribesman of the 1950s. This philandering, inebriated African socialist, who raged against the world for denying him the realization of his anticolonial ambitions, is now setting the nation's agenda through the reincarnation of his dreams in his son. The son makes it happen, but he candidly admits he is only living out his father's dream. The invisible father provides the inspiration, and the son dutifully gets the job done. America today is governed by a ghost.

Dinesh D'Souza, the president of the King's College in New York City, is the author of the forthcoming book The Roots of Obama's Rage (Regnery Publishing).

Wednesday, June 16, 2010

Sun Journal Letter to the Editor (6/12/10) by CCTA Member, Nancy Murdoch: STARTS AT THE TOP

What is happening to our country? When did we become so polarized and divided? When did it become acceptable to call each other names, and dismiss many of us as racists, tea partiers, bigots, obstructionists, violent terrorists, morons, and idiots?


I think many Americans voted for Barack Obama in the hopes that it would once and for all end the racist rhetoric that as long been a part of our culture. Many were tired of George Bush politics, backbiting and disparity. The idea of hope and change sounded so positive in a time of economic uncertainty, disappointment and worry. Transparency and honesty sounded like a welcome change to all the shenanigans that the public had seen coming out of Washington. What many of us craved was a “Mr. Smith goes to Washington” time. We got instead something entirely different.

Few of us see spending billions of taxpayer’s money to bail out failure as change we can believe in. The stimulus package that did not stimulate the economy, but put us at the mercy of our creditors, was not the kind of change we wanted. Massive debt that makes the great United States look like Europe was not what we had in mind.

Then came health care and along with it, more dishonesty. Even though the campaigning Obama promised transparency through C-SPAN, etc., what we actually saw was corruption at its peak. Deals were made behind closed doors, senators’ votes were bought with our money, principles were thrown out the window for promises, and lies and deception prevailed. A major bill passed that was completely nonpartisan; not one Republican voted for the 2,000-page monster that no one read. We have yet to learn how this bill will play out economically, as the numbers given to the CBO were false. Many do believe that it will cripple us financially, and not improve health care. Over 60 percent of Americans support repeal of the bill.

The latest debacle comes in the form of a law made in Arizona that would be completely unnecessary if the federal government would do its job of protecting our borders. After suffering murders, kidnappings, destruction of private property, a financial drain on social and public programs, trespassing, and closing of a local hospital due to bankruptcy, Arizona state government was compelled to do something to alleviate the suffering of its citizens. Over 60 percent of Americans support the Arizona law, even though Arizona has been ridiculed by people that openly admit they had not read the bill. Then we have to endure a diatribe by the president of Mexico telling us what an awful country we have as half the Congress applauds. Mexico has much more stringent immigration laws than we do, and is a hotbed of corruption, drugs and lawlessness. Their people suffer greatly to escape that misery.

Where is our president in this mess? Adding to the confusion and driving a wedge between the people of Arizona and the rest of the nation.

Lastly, a tragedy has occurred in Louisiana, and the president daily blames BP. I have not heard BP once deny their culpability, and they are spending millions of dollars trying to rectify the situation. It’s a business disaster for them, and the people on the Louisiana coast. As far as assessing blame, the president might want to look at the fact that his administration 10 days before the oil rig blew, gave BP an exemption from an environmental impact statement and the development of a full-blown comprehensive response plan should there be a catastrophic event. Neither the government or BP was equipped to handle this disaster, but the administration was quick to use fiery rhetoric (boots on the throats of BP) to flame the fires of discontent. I see that as a handy way to deflect attention away from their part in the mess.

In my whole life I have never seen a president act so “un-presidential.” He questions how much money we should make and our right to free speech. He labels those who disagree with him, and those that fail to bow to his incompetency. He follows his own leftist agenda regardless to what is constitutional or what the American people want. It doesn’t appear that Obama believes in American exceptionalism. He is quick to apologize for real or imagined wrongs. Of course this is not a perfect country and mistakes have happened, but the American people owe no other country an apology. Our men and women have died to prohibit oppression. There are cemeteries all over the world that attest to that fact. Billions of our taxpayer’s money has gone to help the underprivileged everywhere. No other country can hold a candle to us, our greatness and generosity. Perhaps Obama is not proud to be an American, but I most certainly am, and will work to reestablish a government that reflects that sentiment and deserves our respect. I hope other patriots will join in that goal.

Originally published in the Sun-Journal, 6/12/10, New Bern, NC
http://www.newbernsj.com/articles/many-88165-class-sounded.html

Monday, June 14, 2010

Obama: We need to save the same jobs again with $50B more in state bailouts (It never ends)

Posted on Sunday, June 13, 2010 8:13:31 PM by SeekAndFind


The state and local grants in Porkulus acted as a federal bailout package for state bureaucrats, who otherwise may have lost their jobs as state and local governments cut spending in order to balance budgets. The White House sold this as rescues of teachers and first responders, but as a series of local newspapers reported, those jobs were never in jeopardy. The money that got added to those budget items got transferred elsewhere to save less politically sensitive bureaucrats elsewhere, while the Obama administration claimed to have saved millions of jobs through these bailout transfers.

Of course, that only works for a single budget year, and the same structural cost issues that existed over the last year continue today, thanks to the federal bailout. What’s the Obama administration answer for that? Another bailout:

President Obama urged reluctant lawmakers Saturday to quickly approve nearly $50 billion in emergency aid to state and local governments, saying the money is needed to avoid “massive layoffs of teachers, police and firefighters” and to support the still-fragile economic recovery.

In a letter to congressional leaders, Obama defended last year’s huge economic stimulus package, saying it helped break the economy’s free fall, but argued that more spending is urgent and unavoidable. “We must take these emergency measures,” he wrote in an appeal aimed primarily at members of his own party. …


With the letter, however, Obama makes a direct and unequivocal case for additional “targeted investments,” including state aid and several less-expensive initiatives aimed at assisting small businesses. He specifically calls for passage of the measure that is before the Senate, which would extend unemployment benefits and offer states additional aid, increasing deficits by nearly $80 billion over the next decade.

Obama asks lawmakers to be patient on the deficit, noting that a special commission is at work on a comprehensive deficit-reduction plan.

That’s a laugh. Obama wants people to believe he’s serious about deficit reform, and so he’s proposing making the deficit worse until someone forces him to stop spending. It’s the action of an addict. I can stop spending any time I want. I just don’t want to do it right now.


Besides, the jobs targeted by these bloc-grant bailouts are the exact same ones claimed by the White House last year. When do people in Minnesota get to stop bailing out California bureaucrats?

http://conservativecamp.com/index.php?option=com_content&view=article&id=397273&catid=88&Itemid=56