Circular Logic Defines Obama’s Turn At President

Leaders of the White House economic team and the Senate's top Republican bellowed about bonuses at a bailed-out insurance giant and pledged to prevent such payments in the future.From one Sunday talk show to the next, they tore into the contracts that American International Group asserted had to be honored, to the tune of about $165 million and payable to executives by Sunday, even as the company has benefited from more than $170 billion in a federal rescue. Image Credit: KOMO News

Circular Logic Defines Obama’s Turn At President

Here we are only about 57 days into the 44th Presidency of the United States and what we find doesn’t match up with what was promised.

Barack Obama ran on an overriding theme of ushering a new era of responsibility, yet all this administration can do is put forward and hire people, Timothy Geithner, to oversee our economy and its pursuit of increased taxes, that cheat on their responsibility to actually pay taxes.

Case in point:

The Obama administration blames this economy and the Government solutions put in place to correct its downturn on the previous executive administration of George W. Bush, yet this administration fights to keep most of the same people, policies, and level of oversight in place from the previous administration.

This administration decided to give a third round of additional TARP fund billions of dollars to its largest troubled financial institution, AIG, without pre-condition (again) while upping the Government’s ownership (80%) in the company … then becomes outraged (only after the disclosure of the bonus plan) when the company honors its employment contracts with many of its top executives by issuing $165 million dollars in bonuses – averaging $500,000 to each.

Obama economic chief Larry Summers: AIG bonuses 'outrageous' but government can't stop them. Image Credit: Associated Press via KDRV-TV

This excerpted and edited from NationlJournal.com –

Hotline After Dark -- Resident Evil?
March 17, 2009 8:50 AM

"World News" led with AIG bonuses. "Evening News" led with AIG bonuses and featured a taped interview with special inspector gen. for Iraq Stuart Bowen Jr. "Nightly News" led with AIG bonuses.

Last night's TV coverage was dominated by Pres. Obama's announcement that he asked Treas. Sec. Tim Geithner to use all legal tools to block the AIG exec bonuses. Among the reaction:
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Weekly Standard's Ham: "There's nothing that brings people in Washington together from both sides of the aisle faster than the need to get on the right side of a populist backlash" ("O'Reilly Factor," FNC, 3/16).

Rep. Scott Garrett (R-NJ): "None of this should have surprised any of us. ... And it was actually out there also for Secretary Geithner to understand coming into this, as well. ... So it's only now that it's making headlines that the president is coming back and basically second-guessing his own treasury secretary on this. Why Secretary Geithner didn't raise this when he first understood it is beyond me" ("NewsHour," PBS, 3/16).

Sen. Bob Menendez (D-NJ), asked if he's satisfied with the responses from the WH: "I'm not satisfied. ... They have to renegotiate their contracts. There is no reason why when the federal government is poised to do another $30 billion that, in fact, we can't insist that those contracts get renegotiated, and renegotiated in such a way in which those bonuses simply don't take place." ("1600," MSNBC, 3/16).
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FNC's Hume: "... it is a big problem for the president. He has already added substantially to the bailout money previously provided to AIG and to others and will almost certainly need to add more, much more to address the continuing credit crisis. ("Special Report," 3/16).
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Rep. Darrell Issa (R-CA): "The boneheads are the people in the previous administration and this administration who gave out over $170 billion of our money and did not, in fact, do what anyone else giving money does, which is ensure that the money is not a conduit for simply paying out bonuses" ("Hardball," MSNBC, 3/16).

Syndicated columnist Charles Krauthammer: "This is not so much an economic issue as a psychological and a political issue. Economically, if you add up all the bonuses, it's less than 1/10 of one percent of the bailout to AIG alone, so it's lunch money. Psychologically, it's important because there's outrage in the country, and ... unless there's an appeasement in the anger in the population who are going to have to support the next bailout, which is going to be a trillion dollars, the money won't be made available, Congress will deny it. So that's why you get the president heaping opprobrium on these miscreants who made the bad deals and now are getting the bonuses."

More Krauthammer: "I'm all in favor of keeping this heaping opprobrium. I would deny them the bonuses if possible. I would be for an exemplary hanging or two. Have it in Times Square, invite Madame Defarge. You borrow a guillotine from the French and we could have a party. If that's what it takes to maintain popular support, let's do it. But it's not going to change anything economically" ("Special Report," FNC, 3/16).

CNN's Dobbs: "I'm calling for Liddy to be fired. I'm calling for the Board of AIG to be fired here tonight, and looking forward ... we can't afford in this country any longer to tolerate corporate leaders who don't understand the basic values of this country ... ("Lou Dobbs Tonight," 3/16).
Reference Here>>

Why is anyone surprised? Barack Obama never was an executive in charge of anything throughout his entire career.

He became educated, earned a law degree, edited a law review publication, worked as a foot soldier for ACORN (an organization that is funded, in part, by the federal government to support socialism projects to people who look for handouts as opposed to a hand up on which one can become self-sustaining), became friends with a group of radical educators and priests, taught constitutional law at a college, ran for and secured a state senate office in Illinois, then waged an uncontested campaign to become a Senator from the state of Illinois to the federal government, where he served 144 days before he declared and ran for President of the country full time until he became elected.

And now, as President, with the help of a Democrat political party lead congress and three Republican political party Senators, he has been successful at committing each and every household to an additional $18,500+ in spending debt. He has defined his presidency by throwing taxpayer money at continuing, and historically, self-correcting economic problems while re-labeling our effort to stop islamofascism created violence that continues to kill thousands of innocent citizens … from an act of ongoing war to a police action.

The economy has lost over 40% of its value since he was voted into office (over 15% in these last two months), South Korea and Iran threaten to launch rockets and make nuclear bombs, Russia is moving to control the flow of oil out of their region of the world while President Barack Obama reverses the opening up of off-shore drilling activity in our own country, Riots are breaking out in Pakistan, and Barack Obama pledges $900,000,000 (nine-hundred million dollars) of United States taxpayer money to rebuild infrastructure in Hamas (a recognized islamofascism ideology based terrorist organization) controlled Gaza.

All of this chaos and we have only witnessed this President’s first two months in the office of executive leadership.

Circular logic … dizzying, isn’t it?

Let The Revolution Begin

Simpsons characters pictured in a mob revolt with tourches. Image Credit: The Simpsons

Let The Revolution Begin

It's ironic that Barack Obama, whose friends were disciples Saul Alinsky, an ardent social revolutionist, becomes president and sparks a revolution toward conservative American Values.

A revolt might be happening already and the signs of this revolt began yesterday. First in Arizona and Second on the floor of the stock exchange when a reporter for CNBC talked with people who work to invest money ... to make money for their clients and themselves.

The wake-up call is startling in that the mainstream media will not report the groundswell of reaction to the demonization of taxpaying, mortgage paying citizens who are cast a losers in this brand new Obamaworld ... Carter's Second Term.

Protests outside of Dobson Elementary School in Mesa, Arizona where President Barack Obama unveiled his mortgage bailout plan. Photo features "Swastika Guy" and "Hammer-and-Sickle Guy" in close proximity to Fox News contributor Michelle Malkin and Sen. Josh Penry. Image Credit: of ProgressNow Colorado

First, this excerpted and edited from the Arizona Republic -

Ask what the country CAN do for you
by E. J. Montini, The Arizona Republic - Feb. 19, 2009 12:00 AM

President Barack Obama came to ground zero in the foreclosure crisis on Wednesday and offered a mix of government assistance and personal responsibility.

To which a lot of folks in Arizona said: "Nice try, but we ain't buying it."

There's no need for a complicated analysis of Obama's speech.

We can sum up what the president said at Dobson High School in Mesa, as well as the reaction of many local residents, by using two quotes. The first is from Obama, the second from a reader of The Republic responding online to the president's remarks.

OBAMA: "So solving this crisis will require more than resources - it will require all of us to take responsibility.

"Government must take responsibility for setting rules of the road that are fair and fairly enforced.

"Banks and lenders must be held accountable for ending the practices that got us into this crisis in the first place.

"Individuals must take responsibility for their own actions.

"And all of us must learn to live within our means again."

READER: "What about stoops like me that still pay their payments on time and live within their means and didn't buy a pool or a Hummer? I deserve something, don't I?"

After all these years, we appear to have decided that John F. Kennedy was wrong and that we CAN ask what our country can do for us.

Or as another reader put it: "We should all just let our houses go and our jobs, then live off the government and let someone else pay for this turkey's 'stimulus'!"

Obama tried to make the case that we're in this mess together.
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One man responding to a blog I wrote for azcentral.com said, "Let's get this country back on track and stop the government from trying to be everything to everybody. The Constitution only guarantees 'life, liberty and the PURSUIT of happiness.' "

Another added, "So let's see if I understand - all of us who pay our debts and taxes now get to fund the rescue of homeowners who are upside down. Ummm. I can see a tax revolt forming in the near future."
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What might work is appealing to our self-interest.
Reference Here>>

CNBC's Rick Santelli, while broadcasting for “Squawk Box” on the floor of the Chicago Board of Trade, called for a referendum to see if we want to "subsidize losers' mortgages" or buy cars and houses in foreclosure and "give them to people who might actually prosper down the road." As traders cheered, he went on to say that we should "reward people that can carry the water instead of drink the water." [click-image to launch video] Image Credit: CNBC via lolfed.com

Second, this excerpted and edited from StreetInsider.com -

Rick Santelli - The Rant Heard 'Round the World'
February 19, 2009 12:24 PM EST

The rant heard 'round the world'. The Drudge Report is highlighting CNBC's Rick Santelli's rant on CNBC this morning ripping Obama's mortgage plan:

'The government is promoting bad behavior... do we really want to subsidize the losers' mortgages... This is America! How many of you people want to pay for your neighbor's mortgage? President Obama are you listening? How about we all stop paying our mortgage! It's a moral hazard'...
Reference Here>>

Video Here

In this 44th Presidency of the United States, people who actually hold a long-term job, invest their money wisely, follow through with their monetary commitments are targeted and become losers (and those who behave in the opposite – Rewarded, with Government money transfer programs).

The economic model for all of this targeted upheaval is found in the principles of Keynesian Economics, a macroeconomic theory based on the ideas of 20th-century British economist John Maynard Keynes. The theory emphasizes the role of demand-side factors, as opposed to supply-side factors, in the determination of aggregate output.

In a nutshell, the value of money is placed not on wealth creation but dollar bill creation. The Government can choose to print the amount of money required to place the economy on a path that the Government feels is the correct path. This is as opposed to a free market determination which recognizes the free will of the consumer and the value of money that is placed in the popularity/supply of an item and the willingness for someone to pay the price someone else is willing to pay.

Even Vladimir Putin is warning the Obama Administration against the downside of a socialist economy stating that it was a “Five Year Plan” central planning Keynesian economic model that brought down the Russian Empire.

Image Credit: The Wall Street Journal Online

Putin Speaks at Davos
The Wall Street Journal - JANUARY 28, 2009, 2:29 P.M. ET

The following text is a transcript of Russian Prime Minister Vladimir Putin's speech at the opening ceremony of the World Economic Forum in Davos, Switzerland.

Good afternoon, colleagues, ladies and gentlemen,
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Excessive intervention in economic activity and blind faith in the state's omnipotence is another possible mistake.

True, the state's increased role in times of crisis is a natural reaction to market setbacks. Instead of streamlining market mechanisms, some are tempted to expand state economic intervention to the greatest possible extent.

The concentration of surplus assets in the hands of the state is a negative aspect of anti-crisis measures in virtually every nation.

In the 20th century, the Soviet Union made the state's role absolute. In the long run, this made the Soviet economy totally uncompetitive. This lesson cost us dearly. I am sure nobody wants to see it repeated.

Nor should we turn a blind eye to the fact that the spirit of free enterprise, including the principle of personal responsibility of businesspeople, investors and shareholders for their decisions, is being eroded in the last few months. There is no reason to believe that we can achieve better results by shifting responsibility onto the state.

And one more point: anti-crisis measures should not escalate into financial populism and a refusal to implement responsible macroeconomic policies. The unjustified swelling of the budgetary deficit and the accumulation of public debts are just as destructive as adventurous stock-jobbing.
Reference Here>>

CONTEXT QUOTE:

Owners of capital will stimulate the working class to buy more and more of expensive goods, houses and technology, pushing them to take more and more expensive credits, until their debt becomes unbearable.

The unpaid debt will lead to bankruptcy of banks, which will have to be nationalized, and the State will have to take the road which will eventually lead to communism.

Karl Marx, Das Kapital, 1867