Bertrand Russell wrote of St. Bernard of Clairvaux (who preached the Second Crusade) that “his sanctity did not suffice to make him intelligent”. No doubt the same could be said of all religious leaders.

Tenzin Gyatsu is the present (14th) Dalai Lama, exiled from Tibet by China. “His Holiness” has been in New York this week, “giving teachings” as his website puts it. Thousands of Americans waited in line to learn wisdom from him.

He declares himself to be a Marxist because he thinks Marxism “has moral ethics”, though he’s noticed that capitalism makes people better off and “brings freedoms”.

Funny that he fell out with the rulers of China.

This comes from First Things:

No wonder the American left loves him.

The Dalai Lama admits to being a Marxist.

He should have told Obama. Maybe he wouldn’t have been forced to leave the White House through the trash door following their meeting in February.

AFP reported:

TIBETAN spiritual leader the Dalai Lama says he’s a Marxist, yet credits capitalism for bringing new freedoms to China, the communist country that exiled him.

“Still I am a Marxist,” the exiled Tibetan Buddhist leader said in New York, where he arrived today with an entourage of robed monks and a heavy security detail to give a series of paid public lectures.

“(Marxism has) moral ethics, whereas capitalism is only how to make profits,” the Dalai Lama, 74, said.

But –

“(Capitalism) brought a lot of positive to China. Millions of people’s living standards improved,” he said.

According to Fox News he himself doesn’t get a penny of profit from his lecture tour:

During a press conference this week, the Dalai Lama said Marxism remains “the only economy system expressing concern of equal distribution (of wealth); that is moral ethics.”

He takes no payment for his appearances and asks that proceeds from ticket sales go for hunger relief and other charities. But he admits he doesn’t keep track of where the money goes. “This is up to the organizer,” he says. “I have no connection.”

Who or what now holds the office of President of the United States of America?

The answer to the question is itself a question mark.

David Solway asks the question and his answers are questions. Here is part of what he writes:

Who is this guy? And what does so enigmatic a figure augur for the United States and, indeed, for the future of us all? No matter what hypothesis or conviction one espouses concerning his definitive DNA, it seems fair to say that a shadow of the clandestine — or if one prefers, the inscrutable — envelops this president.

Even Obama’s most avid supporters, if they are honest, must allow that, compared to his POTUS predecessors, unambiguously little is known about his antecedents or, for example, the salient facts of his academic career — many of his records are still under seal, his college and university transcripts have not been released and, broadly speaking, his significant documentation is rather flimsy. There is not much of a paper trail here; for that matter, there is scarcely a Hansel-and-Gretel bread crumb trail. How such a man could be elected to the presidency … remains a riddle for the sphinx. …

In any event, there can be no doubt that the dossier is scanty and that this is a truly amazing deficiency. We simply do not have a clear portrait or a crisply factual biography of the president. But what we do know about his close affiliates — America-and-Jew bashing Reverend Jeremiah Wright, former PLO spokesman Rashid Khalidi, hysterical and racially divisive Cornel West, unrepentant Weatherman terrorist Bill Ayers, unscrupulous entrepreneur Tony Rezko — is profoundly unsettling. … [T]he asymmetric relation between what we know and what we don’t know must distress any rational person curious about so influential an actor on the current political scene.

That Louis Farrakhan, like millions of others, feels that Obama was “selected” for our times should give us further pause. On the contrary, it may not be out of place to suggest that we are now afflicted with the worst possible president at the worst possible time, with Iran darting toward the nuclear finish line, the Palestinians as intransigent as ever, the Russians moving back into the Caucasus region, negotiating with Venezuela and solidifying ties with Iran, Syria and Turkey, terrorism … on the rise and U.S. citizens increasingly at the mercy of the jihadists, China holding massive quantities of American Treasury notes, Obama considering ruinous cap-and-trade legislation at a time when the AGW consensus is collapsing, the American debt estimated to hit 100% of GDP in 2011 and its unfunded entitlement liabilities totaling over $US 100 trillion, leading to the prospect of monetary collapse. None of these critical issues have been substantially addressed by the president, except insofar as his actions in some cases, lack of action in others, have only exacerbated them. The collateral fact that we really have no valid and comprehensive notion of who exactly is leading us at this crucial historical juncture boggles the mind.

Yes, this riddle of a man, this living quandary named Barack Hussein Obama is so unlikely a president of the United States, it’s as if he has gate-crashed into history.

Germany and France drove the creation of the European Union (EU). Both wanted to be part of a vaster, more powerful political entity: Germany in order, forlornly, to dissolve its national guilt in it; and France, pathetically, to rival the power of the United States with it. Neither hope has been fulfilled. The EU is a failure.

What is the EU? It’s a conglomerate of disparate nations, run by unelected bureaucrats. It has a parliament with no power worth having.

How could it have been expected to succeed? It doesn’t even have a common language. Every document “of major public importance or interest” has to be translated into every one of its 23 official languages.

Imagine the cost of that alone. Bill Bryson wrote (in his book Mother Tongue) that way back in 1987, when the inchoate union was called the European Economic Community (EEC) –

An internal survey found that it was costing $25 a word, $500 dollars a page, to translate all its documents. One in every three employees of the European Community is engaged in translating papers and speeches. A third of all administrative costs – $700 million in 1987 – was taken up with paying for translators and interpreters. Every time a member is added [to the original 6], as most recently with Greece, Spain, and Portugal, the translation problems multiply exponentially.

There are now 27 member states, prices have risen steeply, and in any case no one knows how much the EU pays for anything. Its costs are never accurately calculated.

Because it is irredeemably corrupt, its accounts cannot be cleared. Despairing auditors who turned whistle-blower have been sacked and abused. Officials riding the  gravy-train grow rich on fraud.

Now its nemesis has caught up with it. The 16 member states that adopted the euro as their currency  are not at ease with one another. Their socialist policies are bankrupting them as they were bound to do. Greece has been temporarily saved from economic death by the rest of the EU (and also by the IMF, to which American tax-payers contribute the most). But the peoples, especially the Germans who’ve been made to fork out the bulk of the EU contribution, resent having to do it. (Recent elections in Germany’s most populous state of North Rhine-Westphalia indicate that voters are angry with the federal government’s decision to help Greece and “defend the Euro”.)

The dream of a United States of Europe was always an impossible one. The attempt to realize it is a nightmare.

George Will writes:

The EU has a flag no one salutes, an anthem no one sings, a president no one can name, a parliament (in Strasbourg) no one other than its members wants to have power (which must subtract from the powers of national legislatures), a capital (Brussels) of coagulated bureaucracy no one admires or controls, a currency that presupposes what neither does nor should nor soon will exist (a European central government), and rules of fiscal behavior that no member has been penalized for ignoring. The euro currency both presupposes and promotes a fiction — that “Europe” has somehow become, against the wishes of most Europeans, a political rather than a merely geographic expression.

The designs of the paper euros, introduced in 2002, proclaim a utopian aspiration… The bills depict nonexistent windows, gateways and bridges. They are from … nowhere, which is what “utopia” means… [The euro] is an attempt to erase nationalities and subsume politics in economics in order to escape from European history.

The euro pleases dispirited people for whom European history is not Chartres and Shakespeare but the Holocaust and the Somme. The euro expresses cultural despair.

It also presupposes something else nonexistent. The word “democracy” incorporates the Greek demos — people. As the recent rampages of Greece’s demos, and the reciprocated disdain of Germany’s demos, demonstrate, Europe remains a continent of distinct and unaffectionate peoples. There is no “European people” united by common mores.

Even the Financial Times – which is pink in color politically as well as literally – warned on May 14 that “displays of anger” in the member states may “become more widespread”,  and that “a Europe hounded [sic] by market forces has acted too late” with sudden desperate programs of austerity to save itself from economic catastrophe.

The Euro will fall further. The EU itself may fall apart. That at least, to our mind, is an eventuality devoutly to be wished.

Obama says there should be a limit to how much money anyone should make. He and the “progressive” majority in Congress are trying, step by step, to turn America into a European-style socialist state. Only the state, they believe, can be extravagant, taking money from people who’ve earned it and will earn it in the future, and using it to extend and tighten the power of government. Austerity must be imposed on the people. Let them eat less, feel colder, do without cars. Let them have only the medical treatment and the education government will allow them to have. Limit the amount of wealth any individual may acquire. Profit is a dirty word. Tax, tax, and tax again.

It is a recipe for disaster.

Europe is experiencing the disaster. It is seeing its socialist dream go up in flames on the streets of Athens.

What cannot work, won’t work. Socialism, like all Ponzi schemes, can seem to be working for a time, but must fail. In a favorite word of the Left (applying it where the Left would not) Socialism is “unsustainable”.

Capitalism is sustainable. Capitalism is beautiful. A cornucopia. “The incredible bread machine”.  It’s what Adam Smith called “the natural order of liberty”. It could also be called “the system of mutual benefit”.

You want the means to keep yourself alive? Provide something – goods, labor, services, ideas – that others want to buy. You want to live comfortably? Provide more of it. You want to live luxuriously? Provide it better than anyone else does. Both a seller and a buyer you will be. A buyer wants the thing he buys more than he wants the money he pays for it, just as the seller wants the money more than the thing he is parting with.

How can you know what others want? Put what you have to offer on the market and see if it sells. The right price for it is the best price you can get. The free market signals what traders need to know. As the great free-market economists, most notably von Mises, Hayek, and Milton Friedman have explained over and over again, government interference with price controls, minimum wages, rationing, compulsory purchase, bailouts, distort the signals and harm the economy.

Whether idealists and moralists like it or not, human nature is selfish. It has to be. If we were not selfish we would not eat when we’re hungry, warm ourselves when we’re cold, acquire what we need, protect ourselves from enemies. Without selfishness, the human race would not have survived. (It is not only or purely selfish. Individuals can and do choose to act unselfishly too – once they have seen to the needs of their survival.)

The Marxist idea of “from each according to his ability and to each according to his need” ignores human nature. Any attempt by government to put the formula into effect by creating the welfare –  or “entitlement“ – state invariably handicaps, suppresses, and impoverishes the nation.

Capitalism is the reverse of that idea. It is a system that encourages each to contribute according to his self-determined need, to be rewarded according to how ably he does it. From each according to his need and to each according to his ability would be a fair description of how the natural order of liberty works.

To satisfy bare need is a poor political aim. It reflects a pinched, narrow, joyless, life-quelling mentality. “O, reason not the need!” King Lear pleads, “our basest beggars
are in the poorest thing superfluous.” Generally speaking, in practice, the only way to be sure of having enough of anything is to have too much of it. Profit is a very good thing. It is only when people have extra money and extra time that they can invent new things. And those who produce things that improve the lives of multitudes, things that millions of people want to own and use, are doing far more for the general good than the most generous philanthropist could ever possibly do. Bill Gates with his Microsoft (though he seems not to realize it but to hold some silly lefty views) has actually done more for mankind than all the charities that have ever existed put together.

That is why it’s reasonable to propose that there is no sin of greed. There is a sin of envy. Envy is the raw material of socialist idealism. But wealth, Mr Obama, is not a problem. Poverty is a problem. And your socialist policies will cause it on a massive scale. Let us be free to work for our own maximum profit. Let us have abundance. Let us have feasts, fatness, generosity, might, novelty, and splendor.

Jillian Becker   May 11, 2010

Michael Mann’s “hockey stick graph” was constructed with computers (“garbage in, garbage out”) to “prove” that a wonderfully steady climate prevailed over the world for nearly a thousand years and then suddenly, in the twentieth century, Modern Industrial Man with his disgraceful appetite for material things that make his life longer, pleasanter and easier, started polluting the air and water and  earth with disgusting “emissions” that heated the planet, which is now set to become so hot that … Oh, all sorts of dire consequences will follow. And drastic, impoverishing remedies must be hastily applied world-wide by diktat. The population of the world must shrink, so have no children and die early. If you insist on surviving, go back to living hand to mouth like your primitive ancestors.

We may be exaggerating a little, but not diverging from the broad  truth.

A report by The Science and Environmental Policy Project points out:

The first two assessment reports of the UN IPCC included charts showing temperature change for the last 1000 years that included the Medieval Warm Period and the Little Ice Age. The Summary for Policymakers of the 2001 Third Assessment Report eliminated these temperature changes and substituted Mann’s now infamous “hockey stick” graph produced by statistical techniques that purport to show that temperatures were relatively stable for about 900 years then shot up in the 20th Century. The results of a computer model trumps physical evidence. The research was “peer reviewed” but not available for independent review. …

If Mr. Mann had been open with his research data and methods, and permitted their review by independent scientists, his errors may have been appropriately corrected in a scientific setting rather than in a political one. Instead, he chose to withhold the information. It is imperative to understand the full extent to which Mann’s now discredited study distorted the climate and energy policies of the US government – at great cost to the taxpayer and energy consumer.

Commenting on this, John Hinderaker writes at PowerLine:

It is a remarkable fact that warmists claim the right to keep their data secret and avoid any critical assessment of their work, while at the same time demanding that every country in the world fashion its energy policies on the basis of their alleged findings. No doubt there is a precedent, somewhere, for such arrogance. But I am not sure there is any precedent, anywhere, for governments being stupid enough to accede to such unreasonable demands.

Yes, it would be a far better, though probably harder, aim for the citizens of democracies to lower the level of stupidity in their governments, rather than the temperature of the earth.

Great news!

Traders in air are being arrested on the charge of fraud. Not (yet?) for their big hoax about man-made global warming, but for dishonesty anyway.

The carbon trading system being pushed here has spawned crime and fraud across the pond. Cap-and-trade is not about saving the planet. It’s about money and power, and absolute power corrupting absolutely.

All across Europe authorities have been conducting raids, rounding up individuals involved in a new version of Climate-gate. This time the data aren’t corrupted. Europe’s Emissions Trading System is. The system is so sick, it’s turned out to be a scam built upon a scam.

Twenty-five people have been arrested in raids by British and German authorities as part of a pan-European crackdown on carbon credit VAT [value added tax] tax fraud.

U.K. officials announced raids on 81 offices and homes, nabbing 13 people in England and eight in Scotland. The operation involved 450 investigators from Her Majesty’s Revenue and Customs office.

German authorities raided 230 locations, including the headquarters of Deutsche Bank in Frankfurt and the offices of RWE, one of the largest energy firms in Europe. The German operation involved 1,000 investigators targeting 50 companies and 150 suspects.

The amount of money involved in carbon trading is huge and the temptations vast. While our Congress demagogues about banks and their “complex financial instruments,” they are simple compared to cap-and-trade, which as we have noted involves essentially the buying and selling of air. Throw in an oppressive value-added tax and you have a recipe for corruption and fraud.

Last December, Europol, the European criminal intelligence agency, announced that Emissions Trading System fraud had resulted in about 5 billion euros in lost revenues as Europe’s carbon traders schemed to avoid paying Europe’s VAT and pocket the difference. In announcing the raids, the agency said that as much as 90% of Europe’s carbon trades were the result of fraudulent activity.

“Carbon markets are highly susceptible to fraud, given their complexity and the fact that it’s not always clear what is being traded,” says Oscar Reyes of Carbon Trade Watch.

Climate change has been found to be a fraud. Now the system to fight it has been. Yet it’s that system the administration and others want to establish here through cap-and-trade legislation such as Waxman-Markey and Kerry-Boxer.

As we also have noted, the mechanism for such phantom carbon trading here has already been established in the form of the Chicago Climate Exchange. The Joyce Foundation in 2000 and 2001 provided the seed money to start CCX when Barack Obama sat on its board.

CCX founder Richard Sandor estimates the climate trading market could be “a $10 trillion dollar market.” It is an invitation to fraud that would make Europe’s ETS scandal seem like petty theft.

In 2000, according to Joyce Foundation records, $347,600 was allocated to Northwestern University’s Kellogg Graduate School of Management, where Sandor was a research professor, “to design a Midwestern pilot program for the voluntary trading of carbon dioxide and other emissions that cause climate change.”

Now President Obama would make such carbon trading mandatory, limit total emissions and make carbon as valuable a commodity as booze during Prohibition.

The Joyce Foundation’s two grants totaled just over $1 million. CCX has proved very lucrative for Sandor, whose 8 million shares in the exchange has grown to more than $260 million even before a national cap-and-trade system like Europe’s is established.

Al Gore … is co-founder of Generation Investment Management LLP, the fifth largest shareholder in CCX.

The largest shareholder is, uh, Goldman Sachs. …

What has happened in Europe is going to happen here and may already have begun. We, too, can save the earth for fun and profit.

Hugh Hewitt and Mark Steyn survey an eventful day – yesterday, May 6, 2010 – and cover a lot of ground in their discussion of it. Here’s an extract, ending on a hopeful note as they look forward to the November elections:

HH: What a day, Mark Steyn. The markets went crazy. The Dow dropped at one point a thousand points. It finished off, you know, it was a bad day, but it wasn’t a horrific day. In reaction to what I think is a glimpse of our future, I think that the Greek debacle is simply, you know, the Christmas Future, showing … what’s going to happen to this country if we do not change. Your thoughts?

MS: Yes, I think what it illustrates, as I understand it, it might just have been as simple as one trader typing a B instead of an M for million, typing a B for billion, and it wipes off a thousand points off the stock market, as opposed to being a reaction to what’s happening in Greece, where real people are being killed in what are essentially riots over keeping unsustainable, featherbedded, government jobs. And in a way, what happened in Greece and what happened in New York, I think, both illustrate the kind of fragility of the global economy, and in a broader sense, of civilization …

HH: I think there will be defaults, a rolling series of defaults, … and that people had better look at Greece right now to see what’s coming. But Mark Steyn, that may not be the most important act of violence by a long shot. We had another successful terrorist penetration in the United States. But for their incompetence, a second massacre within four months of Detroit, the fourth under President Obama, counting the Arkansas and Fort Hood terrorist attacks, and still, it does not seem that they can get past the idea of when do we give them their Miranda rights.

MS: Yes, and this idea that it’s a criminal matter involving a few isolated extremists, or whatever the president said in reaction to the panty bomber at Christmas time. The most absurd commentary, I thought, was from the Washington Post, which speculated it was because the guy hadn’t been able to keep up payments on his home in Connecticut, so that this was in fact something to do with actually the Greek story, it’s to do with the global economy, it’s to do with subprime mortgages, that this is somehow an act of subprime terrorism and not Islamic terrorism. This is ridiculous. The guy spent five months in Pakistan, so clearly when a guy is spending five months in Pakistan, we don’t know what he was doing there, that’s the pretty obvious reason for why he isn’t able to keep up payments on his home in Connecticut. It’s because his job in Connecticut, and his house in Connecticut, are not what’s important to him, and are not what he sees as his primary identity. And the stupidity, the persistent stupidity in trying to look for anything other than what is really driving this activity is becoming beyond parody now.

HH: Mark Steyn, today’s profile of him in the New York Times, I don’t know if you had a chance to read it yet, but it’s very much the same. It’s the lonely, Mr. Lonely Hearts. He’s sitting on couches not drinking…and it makes it sounds like he’s depressed, so he became a jihadist.

MS: Yes, and that was the same thing that was said about the panty bomber just before Christmas time. In fact, they’re very similar, they’ve very similar types in a way. They’re not poor people. This idea that we heard after September 11th, poverty breeds terrorism, these are middle class people leading middle class lives. This guy had an MBA and some other super duper degree. He could be holding down a big time six figure salary anywhere on the planet. And instead, he decides that’s not what he wants to do, and instead he wants to blow up Times Square. And at some point, we have to confront the reality of that. And our unwillingness to, you know, when the enemy, which is what they are, by the way, when the enemy read the New York Times and the Washington Post, they draw their conclusions from that kind of coverage.

HH: Mark Steyn, the incompetence displayed in the Gulf after the explosion, and now the gaps in our security system, add the hat trick for the president. We’ve got ideological extremism, plus a hyper-partisan approach to politics, and now incompetence thrown in. That’s a heavy burden for Democrats. I think it’s why David Obey quit yesterday. Do you think the president can escape this, and his party can escape this by November?

MS: No, I think in a way, he’s lucky, he’s as lucky as he’s going to be, because if this had been a Republican in the White House, we would be getting the full Katrina on what’s going on in the Gulf. Instead, he’s got friends at these dying publications like Newsweek that are willing to protect him almost to absurd degrees. But the hyper-partisanship, with the perceived softness on national security, and the willingness to abase himself before thugs and dictators, plus, plus the incompetence issue in the Gulf, I think is just a lethal combination for Democrats this November.

We hope he’s right about November. They say “a week is a long time in politics”, so six months is an age. A lot more harm can be done to civilization by the Democrats in that stretch of time. And if the Republicans return to power in Congress in November, will they, can they, save civilization?

In the dark ages, when Papacy held control of men’s consciences and few dared to think, one method which she practiced to supply herself with money was the sale of indulgences. The indulgence was a permission to sin and yet be free from its consequences. … Succeeding Popes and councils … argued that if they had a right to remit sins for service to the church, they had also the right to remit them for money for the church … and concluded that if they had a right to remit past sins for money, they had the same right to remit, or excuse, or grant indulgence for sins of the future. … It was the sale of these future indulgences for money which … gave rise to the Reformation movement, called Protestant, because of their protests and objections to this and other evils recognized in Papacy.

*

We do not believe that CO2 is a pollutant; that the earth is warming to any degree that should trouble us; that the planet is warmed by human activity; that a despotic world authority is needed to regulate human activity on the pretext of saving the planet from warming; that the wealth of the First World should be redistributed to the Third World; or that anybody’s wealth should be redistributed to Al Gore.

In the name of Climate Change, the new mysticism, Al Gore and his conspirators are selling indulgences. You pay them so you can carry on with living, manufacturing, traveling and so on, all the normal activities which they say is threatening Planet Earth. Ostensibly you are buying a certain amount of some Third Worlder’s CO2 ration, as determined by Al Gore and his conspirators, because you are exceeding your own ration, as determined by them. Some of what you pay will go to a Third Worlder, they say. Most of what you pay will go to Al Gore and his conspirators.

From Investor’s Business Daily:

While senators froth over Goldman Sachs and derivatives, a climate trading scheme being run out of the Chicago Climate Exchange would make Bernie Madoff blush. Its trail leads to the White House.

Lost in the recent headlines was Al Gore‘s appearance Monday in Denver at the annual meeting of the Council of Foundations, an association of the nation’s philanthropic leaders.

“Time’s running out (on climate change),” Gore told them. “We have to get our act together. You have a unique role in getting our act together.”

Gore was right that foundations will play a key role in keeping the climate scam alive as evidence of outright climate fraud grows, just as they were critical in the beginning when the Joyce Foundation in 2000 and 2001 provided the seed money to start the Chicago Climate Exchange. It started trading in 2003, and what it trades is, essentially, air. More specifically perhaps, hot air.

The Chicago Climate Exchange (CCX) advertises itself as “North America’s only cap-and-trade system for all six greenhouse gases, with global affiliates and projects worldwide.” Barack Obama served on the board of the Joyce Foundation from 1994 to 2002 when the CCX startup grants were issued. As president, pushing cap-and-trade is one of his highest priorities. Now isn’t that special? …

The CCX provides the mechanism in trading the very pollution permits and carbon offsets the administration’s cap-and-trade proposals would impose by government mandate.

Thanks to Fox News’ Glenn Beck, we have learned a lot about CCX, not the least of which is that its founder, Richard Sandor, says he knew Obama well back in the day when the Joyce Foundation awarded money to the Kellogg Graduate School of Management at Northwestern University, where Sandor was a research professor.

Sandor estimates that climate trading could be “a $10 trillion dollar market.” It could very well be, if cap-and-trade measures like Waxman-Markey and Kerry-Boxer are signed into law, making energy prices skyrocket, and as companies buy and sell permits to emit those six “greenhouse” gases.

So lucrative does this market appear, it attracted the attention of London-based Generation Investment Management, which purchased a stake in CCX and is now the fifth-largest shareholder.

As we noted last year, Gore is co-founder of Generation Investment Management, which sells carbon offsets of dubious value that let rich polluters continue to pollute with a clear conscience.

Other founders include former Goldman Sachs partner David Blood, as well as Mark Ferguson and Peter Harris, also of Goldman Sachs. In 2006, CCX received a big boost when another investor bought a 10% stake on the prospect of making a great deal of money for itself. That investor was Goldman Sachs, now under the gun for selling financial instruments it knew were doomed to fail.

The actual mechanism for trading on the exchange was purchased and patented by none other than Franklin Raines, who was CEO of Fannie Mae at the time.

Raines profited handsomely to the tune of some $90 million by buying and bundling bad mortgages that led to the collapse of the American economy. …

The climate trading scheme being stitched together here will do more damage than Goldman Sachs, AIG and Fannie Mae combined. But it will bring power and money to its architects.

The financial regulation bill is another huge threat to America’s painfully diminished prosperity, and so ultimately to Big Business and Big Labor.

But Big Business and Big Labor cannot see that, being chronically short-sighted. Contrary to Obama’s contention, they actually welcome the legislation.

The Heritage Foundation examines the bill which it calls, with good reason, a “Wall Street Bailout Bill” – a permanent TARP. And that, it says, is “what Wall Street wanted all along”.

Speaking to an audience of big business and big labor executives (including Goldman Sachs’ Lloyd Blankfein, Bank of America’s Bruce Thompson and SEIU’s Andy Stern) at New York’s Cooper Union, President Barack Obama noted “the furious efforts of industry lobbyists to shape” the financial regulation bill “to their special interests.” Obama then admitted, “I am sure that many of those lobbyists work for some of you. But I am here today because I want to urge you to join us, instead of fighting us in this effort.” Obama should have saved his breath. Wall Street and big labor lobbyists have already joined forces to make sure the current Senate legislation has become a Wall Street Bailout Bill.

Big labor’s ties to this White House are already well documented. Less known is just how close Obama administration interests align with the big firms that benefit most from the TARP bailout. The Washington Examiner reports that at Goldman Sachs, the nation’s largest investment bank, four of the five in-house lobbyists were Democratic Capitol Hill staffers — the remaining one gave $1,000 to Hillary Clinton last election. And USA Today notes that Goldman Sachs alone has given nearly $900,000 since January 2009 to congressional candidates, with 69% of that cash lining Democrat pockets. Finally, then-candidate Obama collected almost $1 million from Goldman executives and employees in 2008, more than the combined Goldman haul of every Republican running for president, Senate and the House.

So what have Wall Street lobbyists bought with their campaign cash and high priced lobbyists? A bill that gives permanent TARP-like authority to Washington regulators, thus enshrining Washington as a permanent bailout machine. Specifically, the bill:

Creates a protected class of too big to fail firms. Section 113 of the bill establishes a “Financial Stability Oversight Council,” charged with identifying firms that would “pose a threat to the financial security of the United States” if they encounter “material financial distress.” While these firms would be subject to enhanced regulation, such a designation would also signal to the marketplace that these firms are too important to be allowed to fail and, perversely, allow them to take on undue risk.

Creates permanent bailout authority. Section 204 of the bill authorizes the Federal Deposit Insurance Corporation (FDIC) to “make available … funds for the orderly liquidation of [a] covered financial institution.” Although no funds could be provided to compensate a firm’s shareholders, the firm’s other creditors would be eligible for a cash bailout. The situation is much like the bailout AIG in 2008, in which the largest beneficiaries were not stockholders but rather other creditors, such as Deutsche Bank and Goldman Sachs.

Provides for seizure of private property without meaningful judicial review. The bill, in Section 203(b), authorizes the Secretary of the Treasury to order the seizure of any financial firm that he finds is “in danger of default” and whose failure would have “serious adverse effects on financial stability.” This determination would be virtually irreversible in court.

Establishes a $50 billion fund to pay for bailouts. Funding for bailouts is to come from a $50 billion “Orderly Resolution Fund” created within the U.S. Treasury in Section 210(n)(1), funded by taxes on financial firms. However, according to the Congressional Budget Office, the ultimate cost of bank taxes will fall on the customers, employees and investors of each firm.

Opens a “line of credit” to the Treasury for additional government funding. Under Section 210(n)(9), the FDIC is effectively granted a line of credit to the Treasury Department that is secured by the value of failing firms in its control, providing another taxpayer financial support.

Authorizes regulators to guarantee the debt of solvent banks. Bailout authority is not limited to debt of failing institutions. Under Section 1155, the FDIC is authorized to guarantee the debt of “solvent depository institutions” if regulators declare that a liquidity crisis (“event”) exists.

Imposes one-size-fits-all reform in derivative markets. … The Senate bill would require virtually all derivative contracts to be settled through a clearinghouse rather than directly between the parties. Applying such ill-designed blanket regulation would make financial derivatives more costly, more difficult to customize, and, consequently, less widely used—which would increase overall risk in the economy.

According to Rasmussen Reports, 64% of Americans are not confident that policymakers in Washington know what they’re doing with regards to Wall Street. They have every reason to be concerned. … The bill Obama is pushing would empower Secretary Geithner to repeat the AIG bailout ad infinitum. No need to ever go back to Congress for a new TARP. The Senate bill is a permanent TARP. Which is exactly what Goldman Sachs and the rest of their Wall Street lobbyists wanted all along.