Guest Post: Obama's Second Term Plans

As a follow-on to my previous post about Obama flouting the Constitution, I received a very good email letter which is circulating the internet and credited to a Steve McCann dated May 2012.   I'll post it here in it's entirety as I think it picks up enough good and accurate points concerning the current Obama administration and what a 2nd term might look like.  Every President presses his limits of authority, but when Bush tried it, there were howls of "foul play" from national media.  Of course, the media is continuing it's slavish obedience to this charismatic president.

If we, the People, can't see beyond the "style" to see "substance" then we, the People, will get what we deserve.

Obama's Second Term Transformation Plans

The 2012 election has often been described as the most pivotal since 1860.This statement is not hyperbole. If Barack Obama is re-elected the United States will never be the same, nor will it be able to re-capture its once lofty status as the most dominant nation in the history of mankind.

The overwhelming majority of Americans do not understand that Obama's first term was dedicated to putting in place executive power to enable him and the administration to fulfill the campaign promise of "transforming America" in his second term regardless of which political party controls Congress.That is why his re-election team is virtually ignoring the plight of incumbent or prospective Democratic Party office holders.

The most significant accomplishment of Obama's first term is to make Congress irrelevant. Under the myopic and blindly loyal leadership of Harry eid and Nancy Pelosi, the Democrats have succeeded in creating an imperial and, in a second term, a potential dictatorial presidency.

During the first two years of the Obama administration when the Democrats overwhelming controlled both Houses of Congress and the media was in an Obama worshipping stupor, a myriad of laws were passed and actions taken which transferred virtually unlimited power to the executive branch.

The birth of multi-thousand page laws was not an aberration. This tactic was adopted so the bureaucracy controlled by Obama appointees would have sole discretion in interpreting vaguely written laws and enforcing thousands of pages of regulations they and not Congress would subsequently write.

Additionally, the Obama administration has, through its unilaterally determined rule making and regulatory powers, created laws out of whole cloth. The Environmental Protection Agency on a near daily basis issues new regulations clearly out of their purview in order to modify and change environmental laws previously passed and to impose a radical green agenda never approved by Congress. The same is true of the Energy and Interior Departments among many others.

None of these extra-constitutional actions have been challenged by Congress. The left in America knows this usurpation of power is nearly impossible to reverse unless stopped in its early stages.

It is clearly the mindset of this administration and its appointees that Congress is merely a nuisance and can be ignored after they were able to take full advantage of the useful idiots in the Democrat controlled House and Senate in 2009-2010 and the Democrat Senate in the current Congress.

Additionally, Barack Obama knows after his re-election a Republican controlled House and Senate will not be able to enact any legislation to roll back the power previously granted to the Executive Branch or usurped by them. His veto will not be overridden as there will always be at least 145 Democratic members of the House or 34 in the Senate in agreement with or intimidated by an administration more than willing to use Chicago style political tactics.

The stalemate between the Executive and Legislative Branches will inure to the benefit of Barack Obama and his fellow leftists.

The most significant power Congress has is the control of the purse-strings as all spending must be approved by them. However, once re-elected, Barack Obama, as confirmed by his willingness to do or say anything and his unscrupulous re-election tactics, would not only threaten government shutdowns but would deliberately withhold payments to those dependent on government support as a means of intimidating and forcing a Republican controlled Congress to surrender to his demands, thus neutering their ability to control the administration through spending constraints.

Further, this administration has shown contempt for the courts by ignoring various court orders, e.g. the Gulf of Mexico oil drilling moratorium, as well as stonewalling subpoenas and requests issued by Congress. The Eric Holder Justice Department has become the epitome of corruption as part of the most dishonest and deceitful administration in American history. In a second term the arrogance of Barack Obama and his minions will become more blatant as he will not have to be concerned with re-election.

Who will be there to enforce the rule of law, a Supreme Court ruling or the Constitution? No one. Barack Obama and his fellow-travelers will be unchallenged as they run roughshod over the American people.

Many Republicans and conservatives dissatisfied with the prospect of Mitt Romney as the nominee for president are instead focused on re-taking the House and Senate. That goal, while worthy and necessary, is meaningless unless Barack Obama is defeated. The nation is not dealing with a person of character and integrity but someone of single-minded purpose and overwhelming narcissism. Judging by his actions, words and deeds during his first term, he does not intend to work with Congress either Republican or Democrat in his second term but rather to force his radical agenda on the American people through the power he has usurped or been granted.

The governmental structure of the United States was set up by the founders in the hope that over the years only those people of high moral character and integrity would assume the reins of power. However, knowing that was not always possible, they dispersed power over three distinct and independent branches as a check on each other.

What they could not imagine is the surrender and abdication of its constitutional duty by the preeminent governmental branch, the Congress, to a chief executive devoid of any character or integrity coupled with a judiciary essentially powerless to enforce the law when the chief executive ignores them.

Conservatives, Libertarians, the Republican Party and Mitt Romney must come to grips with this moment in time and their historical role in denying Barack Obama and his minions their ultimate goal. All resources must be directed at that end-game and not merely controlling Congress and the arious committee chairmanships.

Steve McCann
May 2012

Obama Ignoring The Constitution

First, a 7th grade Civics lesson:  the Executive Branch of our government is in charge of enforcing the laws that the Legislative Branch passes.  If a statute becomes a law, it's because the Legislative Branch has passed it in both Houses and the President has signed it into law.   This is the way the Government is supposed to function under our Constitution.

Apparently Obama was not present in 7th grade Civics class or somehow missed that basic information in his Harvard Doctoral Constitutional law class (whether he attended or even passed these courses is a carefully guarded secret)!   Either that or he is flouting the Constitution intentionally.

First, it was Obama saying that he won't enforce immigration rules for young illegals (haven taken the oath to protect the Constitution), now Obama unilaterally has decided that there is no need for the provision, enacted by Bill Clinton and bi-partisan Congress, to require able-bodied welfare recipients to find some kind of work.   This was termed welfare-to-work and it pushed down welfare rolls dramatically in the 1990s.  Personally, I thought that the welfare "problem" was solved for good in this country.

From the Detroit News: 

In a blatant challenge to the legislative branch, Obama by executive order tossed out the Clinton-era welfare reform that required able-bodied aid recipients to work, saying the federal government will no longer enforce the law.

This follows the president's unilateral rewrite of immigration law, using an executive order to implement elements of the DREAM Act, which Congress refused to adopt. He also has thumbed his nose at the No Child Left Behind Act, and has put in place cap-and-trade carbon rules that were specifically rejected by Congress.

He can't do these things, by any reading of the Constitution. And yet he is. Because Congress, whose powers he is usurping, hasn't risen to stop him.

The Constitution separates powers between the legislative, administrative and judicial branches to more effectively limit government authority, and thus protect individual liberty.

Obama apparently does not recognize those constitutional limits on his power.

He is doing these things under the rallying cry of "We Can't Wait," contending that the gridlock in Congress caused by Republican gamesmanship is impeding his agenda.

But this is how the founders intended government to work. The responsibility is on the president to forge a working relationship with Congress. Obama's inability to do that does not give him the power to act unilaterally, even if it were true that the opposition wants to see him fail.

From Mitch McConnell, explaining the original law and what has happened in the Richmond Times-Dispatch

In 1996, President Bill Clinton worked with Republicans in Congress to reform our nation's costly and ineffective welfare programs. Upon signing the bipartisan bill into law, Clinton noted that the measure would "[restore] America's basic bargain of providing opportunity and demanding, in return, responsibility." And he was right. Most would agree that the measure has been a great success.....

Building on successful state programs, like our groundbreaking legislation here in Virginia that I was honored to carry in the legislature as a delegate, Congress strengthened the welfare safety net by adding a requirement that individuals receiving financial support must also look for and find work. It's known as "welfare-to-work" for short. And while some were concerned that the measures in this reform were too tough, their doubts were soon erased.

Welfare caseloads that had remained unchanged for 40 years were quickly cut in half. The poverty rate among welfare recipients, especially children, plummeted. The percentage of single mothers with a job grew from 58 to 75 in less than a decade. Millions of Americans were moving off the welfare roll and moving up life's ladder.

Over the course of 16 years, welfare reform has proven to be a historic achievement. But, ignoring this record, the Department of Health and Human Services last month announced that it would allow states to propose programs that did not comply with federal work requirements. With a stroke of a pen, decades of bipartisan efforts to tie welfare to work were undone, and the heart of welfare reform was gutted.

As a candidate, the president claimed that he supported welfare-to-work policies. He once professed that work should be "a centerpiece of any social policy." He has now apparently changed his mind.

It's time for Congress and the voters to pay attention to this bad behavior and give him a good firm "Civics Lesson" to this "Chavista" president.  Please pass this on to your concerned friends.

Blog Series #4: More Solutions...

This blog entry is a continuation of the 3rd Blog in this Series: "Blog Series #3: More Solutions to Big Problems"

Embrace Shale Energy, Reduce Oil Imports (radically improve trade balance and national security)

1. Convert cars, buses and trucks to CNG (compressed natural gas). 
2. Build CNG filling stations which is fairly easy to do. 
3. Promote Conversion kits that are available for cars now. 
4. Displace oil imports and improve our balance of trade and national security.
5. Try CNG mass transit (buses and mini-buses) in cities with minimal mass transit.  People will take a bus if it comes every 3 to 5 minutes.
6. The US needs to finally allow exploration of the most promising areas of Alaska including ANWR, and extend leasing in both US east and US west coasts.  Offshore California (in Federal waters) and ANWR/North Slope are each likely to similar to the North Sea in oil/gas.  The last fields developed offshore California were over 1 billion barrels of oil!   We can't allow an individual state to block access to the people's resources!  (Federal waters begin at 3 miles and extend to 200 miles offshore.)  Increased exploration means more jobs
7. Allow the Keystone pipeline construction to go ahead to create jobs and secure reliable energy from Canada.  Stop annoying our best friends! 

See my blog:  A Real Energy Plan For America

Reduce Medical Costs that threaten to overwhelm family budgets

Pass measures known to reduce medical costs:

1. Tort reform, 
2. Promote national (interstate) insurance competition, 
3. Encourage more supply of medical professionals, 
4. "Bust the trusts" of AMA and Big Pharma: outsource drug supply via worldwide bidding and graduate more doctors
5. Encourage more medical savings plans which allow for more high-deductible policies (people paying more of their bills; questioning pricing and demanding the lowest price, more "skin in the game"), 
6. If ObamaCare remains, allow high deductible policies to suffice for medical coverage (instead of imposing high cost policies)
7. Allow pharmacists to dispense most medicine without a doctor's prescription.  Pharmacists can handle most issues and they know when they don't know enough.

Also see Ideas to Reduce Medical Costs

Overcoming Demographic "Drag"and Excessive Housing Supply

1. Expand immigration from Developed areas of the world and less from 3rd World Nationalities.
2. Invite foreign graduate students, master's and doctoral candidates, to immigration interviews.
3. Target highly skilled immigrants using a point system like Canada.
4. Offer visas to foreigners who buy used homes in the US (to mop up oversupply).

Moral, Social and Educational Issues

1.   How about mandatory military service for young people in trouble?  

I'm welcome to ideas and comments on all of these categories...

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Blog Series #3: More Solutions To Big Problems

This page is a continuation of Blog Series #2: Solutions To Big Problems

Improve Education and Reduce the Cost of Government

1. Outlaw public sector unions at local, state and national levels. Even FDR advised this. Teachers unions are hurting our kids and not helping, all other public unions only extort taxpayer money. Government employee benefits are estimated to be 45% too high compared to private sector.  Pensions are driving cities to bankruptcies already and expect more. Zero interest rates are NOT helping pension plans either.
2. Cut public employee costs; kill defined benefit plans for public workers and scrap Davis-Bacon and all prevailing wage laws for public workers.  (hat tip to Mike Shedlock at  Globaleconomicanalysis Blogsite)
3. Pass national "right to work" laws to allow individuals true freedom to join or not join unions.
4. Freeze Federal employees salaries and reduce benefits which have ballooned 45% higher than similar jobs in the private sector.

Improve Fiscal Administration  

1. Rollback the various Federal budget categories to 2008 levels or at least freeze Federal spending. Gradually reduce government spending back to 19% of GDP rather than 25%. Yes this will hurt the economy for a few years, but it's better for the long term.  It's entirely possible that, since there has been so little benefit for increased debt, a reduced rate of debt creation might not hurt as much as expected. In other words, vastly increased deficits did so little good, then reducing the deficits may not hurt as expected.
2. We don't need troops in 140 countries! Cut defense spending.
3. Medicare and Social Security need to be means-tested now. Reduce future payouts now to to take into account adversely changing demographics and reassure US debt markets.
4. Get control of Social Security Disability--it's cost's are spiraling out of control. See my blog entry on this.
5. Reduce or eliminate all/most tax deductions and broaden collection. The bottom 48% is paying no taxes (many or most have "negative" taxes), the middle class (top 25 to 50% from 32K to 66K income is only paying 6% federal income tax. The "rich" (top 1%) are paying 23% of their income in taxes, but the next highest income group between the top 1% and top 5% is paying only 16.4%. See Taxfoundation.org for a Table of Income Tax data.   Obviously revising the tax code is indicated. Contrary to everything you've heard, the very rich are carrying more than their fair share!   Also see my blog:  Income Tax Demagoguery
6. Corporate and Individual tax reform to broaden collection and reduce deductions. Collect more revenue. Corporations should pay more tax but the top rate should come down.  The "effective" rate now is too low given profit levels.
7. Eliminating the Dept of Education, Dept of Homeland Security, TSA, Dept of Agriculture, NLRB (National Labor Relations Board), Dept of Energy, HUD and other housing programs. 
8. Eliminate agricultural subsidies. 
9. Cancel/reduce most foreign subsidies starting with eliminating subsidies to Pakistan! 
10. Cancel or scale-back Obamacare since it's going to cost infinitely more than what was promised. If ObamaCare is retained, then allow high deductible policies to suffice for medical coverage (instead of imposing high cost policies)
11. Privatize, privatize, privatize! Privatize the Federal highways and Post Office? Sell-off Fannie Mae and Freddie Mac. Get out of the student loan business.
12. The Federal Government must schedule an end (soon) to the unlimited support ($100's of billions) of Fannie Mae and Freddie Mac. Sell off both.  Markets will clear faster.

Please proceed to the next Blog Series:   Blog Series #4: More-solutions..

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Blog Series #2: Solutions to Big Problems

Major Ideas to address the major problems detailed in Blog Series Part 1-America's Problems And How To Solve Them:

Politics and Corruption

1. Get money out of politics. Go with all Federal money for national campaigns--no private contributions permitted (with the exception of $200 or less??). This would ban lobbyist money too.  No SuperPacs.
2. We need the "fresh air" of shareholder democracy at our corporations.  Pass rules that shareholders must approve executive pay packages including stock options, etc. Complete disclosure of pay packages must be made for shareholder vote.  Major investors like public pension funds must be on the Boards of Directors-by law.  

Overcoming Loss of Demand and Sluggish US Economy 

1. Defeat Obama in the upcoming election. It's true that the President is a fairly weak effect on the economy but the current president and his administration together are the biggest "wet blanket"  to job creation ever  (as Democrat Mort Zuckerman termed it) .  I predict that there will be an economic rebound due to pent-up demand when he is defeated.  How long it lasts is debatable.
2. A bipartisan effort to repatriate jobs back to America from Asia:  offer businesses/entrepreneurs incentives or even "tax holidays" to bring jobs back to America.  Improve US trade balance (also see Energy revival section below to improve trade balance).  Make a big patriotic splash to encourage this. Enact incentives to make this happen.
3. Lower corporate tax marginal rates to more world-competitive levels.   Reform tax codes to raise the currently insufficient "effective" corporate tax rate.  A lower marginal rate should bring capital and jobs back to the US as costs in China and Asia have risen sharply in several years.  (Individual tax reform is covered in another blog)
4. A presidential announcement of a moratorium on further regulation (or, better yet, a rollback of regulations) by the EPA, NLRB, etc.  
5. Expand immigration (see Blog Series #3)
6. Have a Presidential-led,  bipartisan State Governor's summit to discuss possible infrastructure projects that improve future US productivity (the lifeblood of real growth).  There may be some Federally supported infrastructure 'works' that have real economic benefit.  The problem is that it will take years to plan, appropriate and engineer projects before many jobs are created.  This was the problem with small amount of infrastructure spending in the first $700 million "stimulus".
7. Embrace the shale energy boom and conversion of transportation to compressed natural gas (see following blogs in this series)
8. A bipartisan deal on closing the impending Federal debt "train wreck" that has business and investors worried (see Improve Fiscal Administration, Improve Education, and Lower the Cost of government and Reduce Medical Costs in  Blog Series #3: More Solutions To Big Problems and  Blog Series #4: More Solutions..  ).
9. Expand energy exploration in the US (on Federal land).  Approve Keystone pipeline.  Take advantage of every opportunity to create jobs.  (see Blog Series #4: More Solutions...)

Banking and Financial Reforms

1. Re-institute a monetary gold standard to guide monetary policy, remove the "full employment" mandate from the Federal Reserve. The Fed Reserve should renounce further Quantitative easing now. 
2. Consider downsizing the Federal Reserve's size and purpose--since it's failed miserably over the long term. 
3. Reinstate normal interest rates now to 2 or 3% (set short-term interest rates at 0.5% higher than inflation rate) to stop punishing retirees and savers.  See my blog US Gov't (Federal Reserve) Policies Are Not Working
4. Repeal Dodd-Frank (it's already 5200 pages and not finished nor implemented) and break up the big banks into investment companies and conventional banks as in the days of 'Glass Steagall.' Limit leverage in both entities to 12 to 14 times capital (conservative). 
5. No off-balance sheet items---make everything clearly stated on the balance sheet. 
6. Put derivatives on exchanges and have banks/investment houses mark-to-market all hedging positions at the end of each day. 
7. Return to conventional banking and loan-making for newly split-off banks with low leverage requirements 
8. Make bankers responsible for bank failures. Pass laws to require jail time and salary claw-backs for serious "financial malfeasance."

Please proceed to the next Blog in this Mega-Series: Blog Series #3: More Solutions To Big Problems

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Blog Series Part 1: America's Problems And How To Solve Them

This is the first in a series of Blogs that attempts to more correctly define longer term causes of economic, political and social problems in the USA and propose some possible solutions that, taken together, might very well be a prescription for a return to prosperity and a renewal for our country.  Obviously this is a Herculean task and demands more time and space than just a few pages!  I've tried to be concise and list ideas.

This Blog Series is intended to assist in informing and assisting other conservative-minded thinkers, opinion leaders and politicians.  As with any such communications, it is intended to start a conversation with other like-minded persons.

Thanks for having a look here and please share this information with interested friends!

The Blog series consists of four blogs:
Blog Series #1 (This Page):  A Concise Listing of Root Causes of Short- and Long-Term Problems in the Country
Blog Series #2:  Measures to Reform Politics, Reduce Corruption, Improve the Economy, Banking and Financial Reforms
Blog Series #3:  Measures to Improve Education, Reducing Government Spending and the Cost of Government
Blog Series #4:  Reduce Medical Cost Spiral, More Domestic Energy and Jobs and Improve Demand in the Currently Sluggish Economy

The first step in solving America's problems are to identify what the problems are.   The following list is my attempt to list America's most important short and long term problems (roughly in order of importance):

• Sluggish economy and loss of demand in the economy is due to a) persistent long-term trade deficits and the resulting transfer (stealing) of jobs to Asia especially China but also to Japan, S. Korea, and others.  Also, persistent trade deficits represent a huge transfer of wealth to Asia and the oil exporting countries, b) the Fed-and Gov't-caused bubbles incl. the housing bubble overhang (bad bank loans) and a "balance sheet recession" for consumers, c) slower spending due to our aging population (demographic drag). Also, d) poor government leadership and tax policies (high marginal corporate tax rates) now hurt the possibility of job repatriation from Asia. e) Poor current presidential leadership has frightened businessmen into 'sitting on their hands'. f) expanding regulation during near-recessionary conditions is a drag on business. (See my blog: EPA's Carbon Regulation Power Grab) g) poor and/or corrupt leadership at corporations, excessive cronyism in board rooms leading to excessive compensation at executive levels.  Excessive compensation=corruption. The resulting income and wealth inequality hurts the economy and invites "populist" governments.  Think Argentina.
• Poor national administration and lawmaking, lack of or wrong type of national leadership, persistent government and trade deficits for 30 years, corruption in politics at all levels, excessive influence peddling by special interests, eg, inappropriate deregulation of banking due to influence of banking lobby, the decline of 'rule of law', excessive government "changing of the rules" and too much interference in economy. Inappropriate Federal Reserve policy creating "bubbles."  See my blog: US Economic Policies Are Not Working and Washington Is Corrupt All The Way To The Top
• Abandonment of gold standard in 1971 (Breakdown of Bretton Woods International Gold Exchange Agreements) allowed excessive monetary stimulus/credit creation from the Federal Reserve creating stock market, credit and housing bubbles. These bubbles also benefited wealthy Americans and exacerbated wealth inequality. Abandonment of the gold standard also has allowed persistent trade and budget deficits which, in turn, allowed a historic transfer of US wealth to Asia and Middle East. The effects of this loss of wealth is becoming increasingly apparent in the USA. Further crises and loss of wealth are inevitable with no change. 
• Medical cost upward spiral threatens family budgets. Policy and lawmaking efforts by politicians have failed to address measures that would limit costs. Instead policy makers are determined to increase demand on a system without addressing an increase in "supply." 
• Non-white America cultural and educational collapse--Afro- and Latino-Americans continue to perform poorly in school with extremely high dropout rates--especially African-Americans. Also, African American family units are in "tatters" in what amounts to a cultural collapse. This leads to limited job skills, limited social skills, criminality, poor work ethics, high unemployment, government dependence, medical problems, obesity, institutionalized individuals and despair. Ultimately violence will be the result of these factors. These two ethnic groups make up 25% of the US population and a failure to improve the "culture" of these two groups could drag down the entire nation. America is sinking into a "ghetto" culture of failure and government dependence. This group will fall prey to "populist" political messages bringing the wrong political leadership into power--leadership that will "pander"to this group.  Solutions must come from "within" those communities--not from federal programs. In fact, federal programs delay indefinitely the necessary cultural change.  It's possible that local and state governments have roles to play here.
• Generally declining social and moral values, increasing ignorance--including ignorance of American traditions, economic illiteracy, ignorance of traditional values, declining education standards, poor parenting, declining work ethics in general, declining moral values in business (the housing bubble and mortgage mess was a widespread failure of ethics and morality from Main Street to Wall Street). 
• Generational decline. From the "greatest generation," who knew hardship of depression and war, each subsequent generation is "spoiled" by success and ease. Work ethics and attitudes decline and a sense of "entitlement" come to fore. This will eventually be reversed by severe hardship once again. 
• Government spending and increasingly insurmountable national debt due to a) rising entitlement and other government spending especially after 2004 due to a) sluggish economy and declining tax revenue, b) unfavorable demographics and entitlement programs, c) fraud in government programs and d) expensive administration costs due to public unions and poor administration/management, e) expensive military and wars.

Please proceed to the next Blog in this Mega-Series:  Blog Series #2: Solutions to Big Problems
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The Long History of Limited Government

In the blog below, I detail the political philosophy of the US Founding Fathers with regard to their unanimous desire to see limited government power.

Ronald Reagan said that we're one generation away from losing our freedom if our values and beliefs are not taught to the new generation.  Here's the full quote:

Freedom is never more than one generation away from extinction. We didn't pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same, or one day we will spend our sunset years telling our children and our children's children what it was once like in the United States where men were free.

Limited government has been the norm for the vast majority of America's history.  Then about 1913, the Federal income tax was initiated. ( It had been struck down previously as unconstitutional)  This means that for most of US history, the federal government was so small that it existed on excise and other minor taxes on commerce.  Even after World War II, during which Federal government spending became 50% of the economy, it again shrank to 9% of the US gross domestic product after the war (late 1940's).  

Current Government spending and it's trajectory are not only out-of-control at 25% of GDP,  but totally at odds with the vast historical experience of this country--a country where free market capitalism, small government and low taxes on income and capital built the largest and most successful economy the world has ever seen.  It wasn't many years ago that the US economy was 5 times larger than the 2nd largest (Japan).   That's how successful we were!   We became a hyper-power.

Apparently we want to change all that and become a stagnated state with ruinous national debt that can only be repaid with inflated dollars by our children?  We want more ruined populations dependent on government programs?  Apparently so, because we don't know our own history, we are satisfied with a crony-government, crony-capitalist state for sale to the politically connected or highest bidder?  Well, that's where we're at right now.  That's what you ALWAYS get with big government in a nation as large as the USA!

US Founding Fathers Favored Limited Government

There are not enough words in the English language to praise the political wisdom of the USA Founding Fathers.

The writings of Franklin, Paine, Adams, Madison, Hamilton, Jay and Jefferson all deal with the fear of excessive government power and all of our Founding Fathers, with no exception, were solidly and unequivocally in favor of limited government. Having fought a war with England , the country whoe abused the colonist's rights and liberties are well-documented in the Declaration of Independence, the Founding Fathers were keen to avoid infringements to Freedom and Liberty by an overly-powerful central government. The Constitution ultimately was written to give specific (enumerated) powers to the Federal branch and "The powers not delegated to the United States [Federal Gov't] by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people"

The Bill of Rights was added for emphasis of inalienable rights of the citizens to be protected by any government.

For example, here's a quote from Thomas Paine:

Society in every state is a blessing, but government even in its best state is but a necessary evil in its worst state an intolerable one; for when we suffer, or are exposed to the same miseries by a government, which we might expect in a country without government, our calamities is heightened by reflecting that we furnish the means by which we suffer! 

[Commenting that if we were all perfectly responsible and considerate, there would be no need for laws or a government at all] Government, like dress, is the badge of lost innocence; the palaces of kings are built on the ruins of the bowers of paradise. For were the impulses of conscience clear, uniform, and irresistibly obeyed, man would need no other lawgiver; but that not being the case, he finds it necessary to surrender up a part of his property [taxation] to furnish means for the protection of the rest; and this he is induced to do by the same prudence which in every other case advises him out of two evils to choose the least.

Wherefore, security being the true design and end of government, it unanswerably follows that whatever form thereof appears most likely to ensure it to us, with the least expense and greatest benefit, is preferable to all others. [He's saying the only real purpose of government funded by taxation is security]– Thomas Paine (Common Sense, 1776)

The quote above is interesting because it exposes the trade-off between citizen's good sense of responsibility and the need for government or "lawgiver". Taken to it's extreme, perfect individual behavior and responsibility would require no laws or government at all! Therefore, it means that limited government requires a high degree of "conscience" and responsibility. If personal responsibility declines in a society, which it most certainly is in the Western world, then limited government becomes impossible.

It's telling that much political activity, especially the Democratic party, is increasingly about the relief of individual responsibility and replacing it with bigger government.  Oh, you can't pay your mortgage? No problem, we (the taxpayers) will absorb the loss or you can break your contract! Contracts aren't really contracts are they??  You're in the US illegally? No problem, we'll turn our heads!  And if The States take action on illegal immigration where the Federal government has abdicated it's responsibility, then the Feds will sue you!  You don't have enough money to pay the rent? Surely you'll qualify for housing subsidies! Not enough to eat? Apply for Food Stamps!  You get pregnant, no problem, you can get an abortion!  It doesn't matter if it's morally repugnant, as long as you're relieved of your own responsibility in this matter!  You didn't have the discipline to stay in school?  No problem, we have plenty of government training programs. You don't have a job? No problem, we'll give you extended unemployment! (Never mind the government CAUSED the unemployment!)

I don't mind temporary safety nets, but you understand my point?  The problem is multi-fold: the cost of government itself and the moral problem with an impersonal bureaucracy supposedly "taking care of you." Family and community are the first and ultimate Department of Health, Education and Welfare. The "government" is undermining all of this in the name of "nice-sounding" Leftism. People dependent on government will find out that the government is broke when they need them the most. There is no substitute for self-reliance, hard work and self-sufficiency.

Unfortunately, the US is in one of the last legs of a "cycle of civilizations" and this loss of "discipline" is accelerating our decline. A writer has written a relevant cycle that Western civilizations progress:

From bondage to spiritual faith
From spiritual faith to great courage
From courage to liberty
From liberty to abundance
From abundance to complacency
From complacency to apathy
From apathy to dependence
From dependence back into bondage

I'd say that America and Western Civilization is in the "dependence back into bondage" stage. Any comments?

Obama's Enemy List; Un-American Dirty Tricks

In a recent article in the Wall Street Journal, by Kim Strassel, the paper detailed the story of Romney campaign donor Frank Vandersloot who has found himself under attack, first from the President's campaign, then finding out about a private investigator digging for dirt in his hometown, then just weeks later, receiving audit letters from the IRS and Department of Labor.

Since he's never been investigated before, you'd be a fool not to see that the US Government is now attacking and slurring supporters of the political opposition.  You'd also be a fool to not suspect complicity all of the way to the White House.  This must not be un-answered!!

Now for the quote:

An Obama campaign website in April sent a message to those who'd donate to the president's opponent. It called out Mr. VanderSloot and seven other private donors by name and occupation and slurred them as having "less-than-reputable" records. (my comment:  that's called "libel" in normal parlance!)

Mr. VanderSloot has since been learning what it means to be on a presidential enemies list. Just 12 days after the attack, the Idahoan found an investigator digging to unearth his divorce records. This bloodhound—a recent employee of Senate Democrats—worked for a for-hire opposition research firm.

Now Mr. VanderSloot has been targeted by the federal government. In a letter dated June 21, he was informed that his tax records had been "selected for examination" by the Internal Revenue Service. The audit also encompasses Mr. VanderSloot's wife, and not one, but two years of past filings (2008 and 2009).

Mr. VanderSloot, who is 63 and has been working since his teens, says neither he nor his accountants recall his being subject to a federal tax audit before. He was once required to send documents on a line item inquiry into his charitable donations, which resulted in no changes to his taxes. But nothing more—that is until now, shortly after he wrote a big check to a Romney-supporting Super PAC.   

 Two weeks after receiving the IRS letter, Mr. VanderSloot received another---this one from the Department of Labor. He was informed it would be doing an audit of workers he employs on his Idaho-based cattle ranch under the federal visa program for temporary agriculture workers.

"It is un-American and irresponsible for a president to target individual, law-abiding citizens for political retribution, and it is inconceivable that any U.S. agency would stoop to do the bidding for this campaign's silliness," says Louis Bacon, an investor and conservationist who also made the Obama list.

This must be investigated and questions must be answered. After all, are we stooping to become like Putin's Russia?? Comparisons to Nixon are bad enough!

Shameful! As I've said before, the true "color" of Obama and his roots in thuggish "Chicago-Style" politics is more and more clear.  Expect more evidence to emerge as Romney remains competitive in the campaign.

The Intellectual Vacuum Of The Obama Administration

Redux of "Carterism"

This author has lived long enough to have seen the disastrous "statism", ie, government intervention, threats of rising taxes and hyper-regulation of the Jimmy Carter's administration fail in the real economy, and leave candidate Carter with no new ideas for his 1980 re-election campaign.

Now, 30 years later, I have a sense of deja vu as the Obama has recycled many of the same "solutions" as Carter.  Even candidate Obama in 2008 sounded like he was stuck in the 1970s during his campaign although never giving much detail.  It was always just "hope and change".   One time, even McCain puzzled about Obama, "for a young man, you seem to have a lot of old ideas?"

It's as if these people never learn anything?

So, the Obama administration is now out of ideas except trivial ideas like taxing millionaires (which would raise only $4 billion in 10 years according to the CBO) meaning that's only a political ploy.   For 3 1/2 years, Obama has never had any detailed solutions nor has ever offered serious and detailed leadership for any of the legislative initiatives, leaving all the details to the disastrous Pelosi and Reid.   Obama obviously was personally, politically and intellectually unprepared for the job.  The results are legislative abortions of Dodd-Frank and ObamaCare--both are still unfinished, vastly over-complicated and overreaching and not implemented even years after passage.

All of his key staff has moved on with their tails between their legs;  czars, quasi-communists and socialists alike.  Geithner should walk also away in disgrace.

Attacks and Dirty Tricks
Now candidate Obama is showing desperation as he has no record worth running on.  So, it's attack, attack, and attack.   Also, there's lies too.  You can see the dirty "Chicago-style" politics show themselves.  So, Obama is at war with businessmen (but needs their campaign contributions), spouts completely trivial "solutions" and resorts to lies against Romney.  Now we hear of an "enemy list" where the Obama Administration is targeting businessmen who contribute to Romney's campaign by imposing audits from the Dept of Labor and the IRS.   It's reminiscent of the horrible Nixon administration.

Nixon was impeached for dirty tricks and lies.  It's especially disconcerting when I hear of the Federal Government, with unlimited resources, attacking specific individuals for their politic views.   Are we in a Communist Police state?

Where is "Hope and Change"??

Reagan Had Faith in Businessmen and Entrepeneurs

Reagan Answers Obama with Faith in Businessmen and Entrepreneurs  (hat tip to James Pathokoukis at his American Enterprise Institute blogsite)
Reagan delivered a speech in 1983 after the steep recession caused by Paul Volker had already vanquished runaway inflation and the economy was recovering sharply. The tone of Reagan vs. Obama could hardly be more different. Reagan was a truly a man of faith and principle from America's greatest generation. Here is an excerpt:

The character and conscience of small business built this nation. You know, in his book, ``Wealth and Poverty,'' George Gilder wrote something about entrepreneurs that I've long believed. He said that, ``Most contribute far more to society than they ever recover, and most of them win no riches at all. They are the heroes of economic life, and those who begrudge them their rewards demonstrate a failure to understand their role and their promise.'


Well, wouldn't it be nice to hear a little more about the forgotten heroes of America -- those who create most of our new jobs, like the owners of stores down the street; the faithfuls who support our churches, synagogues, schools, and communities; the brave men and women everywhere who produce our goods, feed a hungry world, and keep our families warm while they invest in the future to build a better America? That's where miracles are made, not in Washington, D.C.


We hear so much about the greed of business. Well, frankly, I'd like to hear a little more about the courage, generosity, and creativity of business. I'd like to hear it pointed out that entrepreneurs don't have guaranteed annual incomes. Before they can turn a profit, they must anticipate and deliver what consumers want. They must risk their money with investments.


The truth is, before entrepreneurs can take, they must give. And business begins with giving. And I believe business works best, creates the greatest wealth, and produces the most progress for all when we're free to follow the teachings of Scripture: Give and you will be given unto . . . search and you will find . . . cast your bread upon the waters and it will return to you manyfold.


Just think about it. In the Parable of Talents, the man with the small-business spirit who invested and multiplies his talents, his money, was praised. But the rich who hoard their wealth are constantly rebuked in Scripture. I believe we're meant to use wisely what is ours, make it grow, then help others to share and benefit from our success. And the secret of success is understanding that true wealth is not measured in material things, but in the treasures of the mind and spirit.

Oil was worthless until entrepreneurs with ideas and the freedom and faith to take risks managed to locate it, extract it, and put it to work for humanity. Someday, oil itself will be replaced if those driven by great dreams are still free to discover and develop new forms of energy.


The principles of wealth creation transcend time, people, and place. Governments which deliberately subvert them by denouncing God, smothering faith, destroying freedom, and confiscating wealth have impoverished their people. Communism works only in heaven, where they don't need it, and in hell, where they've already got it. [Laughter]


When we came to Washington, I said, ``Let us renew our faith and our hope. We have every right to dream heroic dreams, to believe in ourselves, to believe that together, with God's help, we can and will resolve the problems which now confront us.''


We didn't propose a 20-point Federal plan. We pursued the one sure plan to get America moving again -- a renaissance in enterprise. Everything we've tried to do is guided by three simple words: Trust the people. We wanted to use that special principle of giving by putting America's destiny back in your hands. And this meant slowing the growth of an already bloated government and providing you incentives to save, to invest, and to take risks, so more wealth will be created at every level of our society. 

Now that's what I call principled leadership! Apparently we will never see the likes of him again

Spain's Way Out Of A "Punishment" Union

Spain is in the grip of an economic depression with unemployment at 24% and youth unemployment at 50% due to the "popping" of their property/housing construction bubble.

The bubble was caused by Spain joining the Euro in 1999 and adopting Euro-wide interests rates that were below the rate of inflation in Spain at that time. That meant that there was an incentive for people to buy homes or apartments that were appreciating at 6% where the cost of money was only 3%. It paid for borrower to borrow money! And they did! This caused a huge property/housing bubble in Spain and Ireland. Anyone with half a brain could have foreseen this. All this is due to the Euro "project". 

Now their banks, and even regional and national governments are insolvent. In fact, there's nothing but insolvency everywhere and a huge capital flight and slow motion banking panic is underway. Now, the solvency of the entire European banking system is gone due to the cross holdings of these bonds (Spanish, Portuguese, Irish, Greek, and Italian) by Northern European banks. Those bonds are deeply underwater but banks are "pretending" that they are worth 100 cents on the dollar.

Now the "reverse" of bubble conditions has hit and the Euro project has trapped Spain (and other countries) in a depression.  With no way to devalue their (own) currency to stimulate their economy, they are suffering from the flip side of the bubble--outright depression. And they are being forced to be in an even deeper depression by Germany who, true to their nature, are demanding more "discipline" by cutting government spending even as the country is spiraling into a 1930s style depression.

Something has got to give.

According to Ambrose Evans-Pritchard at The Telegraph, he says that it's time for the southern tier of European states to seize the initiative and force an end to their "punishment union."  Here's how it could happen according to Evans-Pritchard:

It is time for Spain and the victim states to seize the initiative. They cannot force Germany, Holland, Finland, and Austria to swallow eurobonds, debt-pooling and fiscal union, and nor should they try since such a move implies the evisceration of their own democracies.

What they can to do is use their majority votes on the ECB's Governing Council to force a change in monetary policy. Germany has two votes out of 23, with a hardcore of seven or eight at most. The Greco-Latin bloc can force a showdown. If Germany storms out of monetary union in protest, that would be an excellent solution.

The Latins would keep the euro - until the storm had passed - allowing them to uphold their euro debt contracts. There would be less risk of sovereign defaults since these countries would enjoy a pro-growth shock from monetary stimulus and a weaker Latin euro against the Chinese yuan, the D-Mark, and the Guilder.

The currency misalignment eating away at EMU would be cured instantly. There might even be a stock market rally once the boil was lanced. It would certainly be a better outcome than the current course of deflationary Troika regimes and loan packages for economies trapped with the wrong exchange rate, destined to end with one country after another being thrown out of EMU in a chain reaction.

For Germany it would entail a revaluation shock and stiff losses for German banks and insurers with large holdings of Club Med debt.

If Germany wished to soften the blow, it could do exactly what Switzerland is now doing by holding the Swiss franc to CHF 1.2 against the euro by unlimited intervention. It could fix the D-Mark rate against the Latin euro at whatever was deemed bearable, for as long as needed.

So, if the "Latin" southern European countries forced a change in monetary policy that was deeply abhorrent to Germany, then it might force a split of the Euro into a Southern Euro and a Northern Euro.   In all likelihood, it must happen as the current situation is totally untenable.   No politician can ask their people to accept a depression-forever scenario now being enforced by Germany.