Looming up – a permanent TARP 80

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.

To eat or not to eat? 366

PART ONE.  ETHICAL EATING: THE THEORY

One of the latest fads of the elite who know what’s best for the rest of us is “ethical eating”.

The Financial Times recently carried a long article about it. Reviewing three books on the subject, the author, Simon Kuper, castigates us for eating beef, chicken, rice, and salad:

Suppose that you and your partner go out for dinner tonight. You order steak and salad while your partner has chicken with rice. Now inspect your plates. Your cow spent almost all its life in a shed, burping methane that heats the planet. It was then slaughtered, often incompetently: it may have been still alive when its head was skinned and its legs cut off. Your “salad”, doused in dressing, is really “fat with a little lettuce”.

Your partner’s chicken lived for six weeks, diseased and crammed so closely with other birds that it cracked several bones. After torture, came slaughter: the bird was shoved into a truck, taken to the slaughterhouse, and shackled upside down. It died screaming and excreting on itself in terror. The rice comes from plants bred by scientists in the 1960s. Both your meals are lathered in the extra fat, sugar, salt and chemicals to which you have become addicted. Enjoy your meal. …

“… if you’re self-indulgent and sadistic, and care not a whit for the planet”, is not said in as many words, but strongly implied.

The author goes on:

People are increasingly wondering whether they should enjoy today’s food.

Millions of animals experience horrible deaths after worse lives. Constantly sick, they give us our flu pandemics. They occupy and degrade nearly a third of the world’s land, use up and pollute water, and warm the planet. According to the United Nations [and who could possibly doubt them?], animal agriculture is the single biggest cause of climate change. It contributes 40 per cent more to global warming than all forms of transport combined…. Certainly, in rich countries, logic should impel us to close factory farms and turn meat back into a luxury food such as caviar and truffles, to be eaten on special occasions only. …

In the past [when the expectation of life was less than half what it is now, but let not that spoil the argument], “Americans typically chewed a mouthful of food as many as 25 times … now the average American chews only 10 times.” The industry has mastered what it calls “hedonics”: how to make food feel and taste delicious. The new food is also addictive, like drugs. … Many Americans now suffer from “conditioned hypereating”, wolfing down fat, sugar and salt as a habit.

Our betters despise us for that.

“Elites want elite foods,” the FT article asserts. “healthy ethical food.” Do they? Or do they just want the rest of us to eat saltless, unsweetened, undressed mouthfuls of hunted or gathered foods that need to be chewed 25 times?

This sort of moralizing is a great luxury. It should be classed with truffles and caviar.  At the same time, it’s all intensely puritan. The old puritans wanted to drain pleasure out of life for the good of your soul. The new puritans want to do the same for the good of your body.

Environmentalists go even further. They don’t want us to eat at all. The existence of the human race annoys them. We eat. We cook. We make things. Almost everything we do endangers the planet. The planet must be saved from us. For what? The animals, presumably.

Don’t they eat too?

Yes, but you see they’re good, we’re bad. We humans are a disgusting, cruel, greedy species that the earth and all the other creatures would be better off without.

They really do think this way.

If it were the obsession of a few madmen it would be merely a curiosity. But it is the settled opinion of thousand of our species, many of whom have the power to regulate our lives.

Since we cannot be eliminated, or not immediately, we must at least be regulated.

*

PART TWO.  HEALTHY EATING: GOVERNMENT STEPS IN

The solution that our betters propose to the “problem” of us eating what we like, is as always a collectivist one. Government should, say the food police, compel us to eat what it deems good for us, good for our health. Healthy eating by force. The new ethics.

This is from Canada Free Press, by David Pietrusza:

The Invisible Hand moves amber waves of grain from farm to factory to freezer.

We all get fed.

Until now.

This month, Senator Kirsten Gillibrand decided she would allocate another $1 billion the federal treasury on building 2,100 grocery stores nationwide. [Capitalism has been called ‘the incredible bread machine’. It works as long as it’s not interfered with. Senator Kirsten Gillibrand doesn’t know this, and wouldn’t believe or even understand it if it were spelled out for her.] She is an Obama mainstream kook. Her “Healthy Food Financing Initiative” is merely upping the ante on a proposal already found buried in Barack Obama’s 2011 budget to expend $345 billion on a similar fool’s errand.

The idea, if it may be termed that, is to provide grants and loans to fund groceries in so-called “food deserts,” areas “under-served” by the right kind of food emporia, those not providing “fresh” food and thereby fueling the national “obesity epidemic.” …

“By building new grocery stores in underserved areas across the state,” says Gillibrand, up for election this year, “we can give people the opportunity to live longer, healthier lives, save billions in health care costs, and create tens of thousands of good-paying jobs.”

Getting specific, Gillibrand estimates that her act will “create” 26,000 of those “good-paying jobs.” It’s funny how expropriating money from the private sector to fund tin-horn politicians’s hobby-horses always “creates good-paying jobs.”

Much of the rationale for combating these alleged “food deserts” relies on data as bogus as the “facts” that support the current global warming (er, excuse me, “climate change”) hysteria. Michelle Obama [she who heads the food police] has recently contended that 23.5 million people—included 6.5 million children—now live in these “food deserts,” defined by Ms. Obama as “communities without a supermarket.” Oddly enough, many of these folks are not poverty-stricken. Some are quite well to do. And thanks to the genius of Henry Ford and American capitalism many of them still own cars, so living that distance from a supermarket, translates into driving a whole 4.5 minutes more to a supermarket. …

And that translates into another federal crisis — another federal program.

But beyond jobs and geography, there is health. There is always health, nowadays.

“This initiative,” contends Brooklyn Congresswoman Nydia Vasquez, “is about empowering families to make healthier food choices so they live longer.” [A  perfect example of Obamaspeak, that!]

Let’s see what happens when a government “empowers” people to make the choices it wants them to make.

*

PART THREE.  NO EATING: THE END ACHIEVED

One government that tries to make the people do what it knows is best for them is in North Korea.

How has Kim Jong-il’s food solution work out for the North Koreans? These extracts come from Nothing to Envy: Ordinary Lives in North Korea, by Barbara Demick :

Kim Jong-Il had taken an even harder line against individual enterprise than his father. “In a socialist society, even the food problem should be solved in a socialist way. Telling people to solve to solve the food problems on their own creates egotism among people,” he said in a December 1996 speech, one of the few in which he acknowledged the food crisis. Other than vegetables grown at home, food was not supposed to be sold on the market. To sell rice or any other grain was strictly forbidden; North Korea considered it illegal and immoral, a stab in the heart of Communist ideology. Any private endeavor fell under the rubric of “economic crime” and the penalties could include deportation to a labor camp, and, if corruption was alleged, possible execution.

North Korea started running out of food, and as people went hungry, they didn’t have the energy to work and so output plunged even further. The economy was in free fall…

All staples are grown on collective farms. The state confiscates the entire harvest … [As famine intensified] the North Korean government offered a variety of explanations, from the patently absurd to the barely plausible. People were told [for instance] that the United States had instituted a blockade against North Korea that was keeping out food …

Enduring hunger became part of one’s patriotic duty. …

How do you tell a mother her child needs more food when there is nothing more to give? Dr Kim would write out a slip admitting the child to the hospital, knowing she had no cure for this condition. The hospital didn’t have any food either

[Many] victims of the North Korean famine … did not go passively to their deaths. When the public distribution system was cut off, they were forced to tap their deepest wells of creativity to feed themselves. They devised traps out of buckets and string to catch small animal in the field, draped nets over their balconies to snare sparrows. They educated themselves in the nutritive properties of plants. … They stripped the sweet inner bark of pine trees to grind into a fine powder that could be used in place of flour. They pounded acorns into a gelatinous paste …

North Koreans learned to swallow their pride and hold their noses. They picked kernels of undigested corn out of the [old] excrement of farm animals. Shipyard workers developed a technique by which they scraped the bottoms of the cargo holds where food had been stored, then spread the foul-smelling gunk on the pavement to dry so that they could collect from it tiny grains of uncooked rice and other edibles.

If you got out to the mountains, you could maybe find dandelion or other weeds so tasty that people ate them even in good times. Occasionally, Mrs Song [one of the author’s sources] would find rotten cabbage leaves … She would take the day’s pickings home and mix it with whatever food she had enough money to buy. Usually it was ground cornmeal – the cheap kind made from the husks and cobs. If she couldn’t afford that, she would buy a still cheaper powder made out of the ground inner bark of the pine, sometimes extended with a little sawdust. … [Nothing] could disguise the god-awful taste. She had to pound away and chop endlessly to get the grasses and the barks into a soft-enough pulp to be digestible. … All she could make was a porridge that was flavorless and textureless. … a porridge mad out of bean and corn stalks … was bitter and dry, and stuck in her throat like the twigs of a bird’s nest…

In the year after Kim Il-sung’s death the only animal product she consumed was frog… North Korea’s frog population would soon be wiped out by overhunting. …

In a famine, people don’t necessarily starve to death. Often some other ailment gets them first. Chronic malnutrition impairs the body’s ability to fight infection and the hungry become increasingly susceptible to tuberculosis and typhoid. The starved body is too weak to metabolize anti-biotics, even if they are available, and normally curable illnesses suddenly become fatal. Wild fluctuations of body chemistry can trigger strokes and heart attacks…

The killer [starvation] has a natural progression. It goes first for the most vulnerable – children under five. They come down with a cold and it turns into pneumonia; diarrhea turns into dysentery. Before the parents even think about getting help, the child is dead. Next the killer turns to the aged … then makes its way through people in the prime of their lives. Men, because they have less body fat, usually perish before women. The strong and athletic are especially vulnerable because their metabolisms burn more calories…

The killer targets the most innocent, the people who would never steal food, lie, cheat, break the law, or betray a friend. …

By 1998, an estimated 600,000 people had died as a result of the famine, as much as 10 percent of the population. … Exact figures would be nearly impossible to tally since North Korean hospitals could not report starvation as a cause of death.

Between 1996 and 2005, North Korea would receive $2.4 billion worth of food aid, much of it from the United States… While big ships laden with donated grains from the U.N. World Food Programme started docking at Chongjin’s port in 1998, the relief was off-loaded into trucks by the military and driven away. Some food reached orphanages and kindergartens, but much of it ended up in military stockpiles or sold on the black market. …

Death was a virtual certainty for people who didn’t show some private initiative. A human being needs at least 500 calories per day on average to survive; a person subsisting on a diet of what could be foraged in the woods would not survive more than three months. …

Hyuck [a homeless boy] found a small and friendly stray [dog], wagging its tail as it followed him into his friend’s yard. Hyuck shut the gate behind them. He and his friend grabbed the animal and shoved it into a bucket of water, holding down the lid. [It took about ten minutes to die.] They skinned it and barbecued it. Dog meat was part of the traditional Korean diet, but Hyuck liked animals and felt bad, though not so bad that he didn’t try it again – although by mid 1996 dogs too were scarce. …

Among the homeless population, a disproportionate number were children or teenagers. In some cases, their parents had gone off in search of jobs or food. But there was another, even stranger, explanation. Facing a food shortage, many North Koreans families conducted a brutal triage of their own households – they denied themselves and often elderly grandparents food in order to keep the younger generation alive. That strategy produced an unusual number of orphans, as the children were often the last ones left of entire families that had perished…

In the first years of the food shortage, the children at the train station survived by begging food, but before long there were simply too many of them and too few people with food to spare…

When begging failed, the children … formed themselves into gangs to steal together …

It was a dangerous life… There were strange stories going around about adults who … would drug children, kill them, and butcher them for meat. Behind the station near the railroad tracks were vendors who cooked soup and noodles over small burners, and it was said that the grey chunks of meat floating in the broth were human flesh. …

The stories got more and more horrific. Supposedly, one father went so insane with hunger that he ate his own baby. … It does appear that there were at least two cases … in which people were arrested and executed for cannibalism…

Even without cannibals … the children couldn’t survive long on the streets…

People … spoke of the large number of bodies scattered around the station and on the trains …

At the station, employees from the cleaning staff regularly made round through the public areas, loading bodies onto a wooden handcart… Some days they removed as many as thirty bodies from the station…

Why doesn’t the government just leave us alone to live our lives?” the women at the [black] market would grumble among themselves.

THAT IS THE QUESTION.

Getting it and getting away with it 246

Investor’s Business Daily reports that Alan Greenspan “gets it” – which should not come as a surprise considering he was Chairman of the Federal Reserve for nearly 20 years – and recaps what happened that made America and the world poorer.

Testifying before the Financial Crisis Inquiry Commission, the former Fed chairman told some plain truths he didn’t dare utter when he headed the central bank. Most notably, Greenspan implied it was Congress’ meddling incompetence — not the Fed, or free markets, or greedy bankers — that created the financial meltdown. …

It wasn’t the Fed that caused the housing crash and financial meltdown. It was Congress and the White House.

The mess began in the 1970s when, during the Carter administration, left-wing activists attacked banks for supposed “redlining” practices that let them discriminate in making home loans.

In response, Congress passed the Community Reinvestment Act, which gave regulators the power to force banks to lend money to “low-income, minority, and distressed neighborhoods.”

To fund all this new lending, they used two little-known government-sponsored enterprises — Fannie Mae and Freddie Mac — and essentially rewrote credit standards for the banks, weakening them substantially. Banks made loans, then Fannie and Freddie bought them — using borrowed money to do it.

In this environment, credit ratings no longer mattered much. Neither did having a job or a steady income. What mattered was race.

The process got supercharged in 1992, when a Democrat-led Congress pushed Fannie and Freddie to buy even more mortgages from banks that had made loans to low-income and minority buyers. In 1996, President Clinton’s Department of Housing and Urban Development told Fannie and Freddie that 42% of their financing had to go to those with incomes below the median.

By 2000, HUD [Department of Housing and Urban Development] Secretary Andrew Cuomo proudly unveiled “new regulations” to “provide $2.4 trillion in mortgages for affordable housing for 28.1 million families.” Despite subsequent efforts at reform, Democrats in Congress — led by Sen. Chris Dodd and Rep. Barney Frank — rejected major changes to Fannie and Freddie.

We’re still paying for that today. Fannie and Freddie have gotten a blank check from the government for their losses, and still owe more than $5 trillion that they can’t pay off.

We’ve been critical of Greenspan in the past, but on this, he’s completely right. The biggest villain in the whole financial meltdown isn’t the “private sector,” as some in Congress — like Rep. Frank — have tried to claim. It’s Congress itself.

Shouldn’t those responsible, notably Chris Dodd and Barney Frank, be made to answer for the world-size wreck? What they’ve done to the economy makes Bernie Madoff’s crooked scheme look paltry.

If it’s not to find who is guilty, so that the culprits may be consigned to their just deserts, what is a Financial Crisis Inquiry Commission for?

Another adventure in tyranny 7

The White House is so well insulated against the danger of information seeping or wafting into it, that the administration has not heard of Climategate, the discrediting of the theory of anthropogenic global warming, or the crippling cost of enforcing CO2 reductions on industry and agriculture in this time of economic crisis. Or so it seems.

One thing is sure. To save the planet, we incurable polluters of earth, air, and water will just have to pay more for the food we go on obstinately consuming.

Here the Heritage Foundation reports, not on the rise of food prices for domestic consumers, but on how environmental protection by means of new draconian regulations will damage agricultural exports – which can only do more harm to the economy and so to all of us.

Although global warming legislation looks less likely for the foreseeable future (though the President and some Senators are trying to revive it), there is an ongoing attempt to impose this agenda via regulations. The EPA regulations that would apply to stationary sources pose a threat to American agriculture. …

In some respects, EPA regulations would be even worse for farmers than cap and trade. Cap-and-trade legislation would have targeted energy companies and not individual farmers, though the higher energy costs would have been passed on to them [and by them on to the consumer]. But EPA regulations would be directly imposed on farmers, imposing tremendous paperwork and compliance burdens as well as energy cost increases comparable to those inflicted by cap and trade.

Such unilateral action would also put American agriculture at a competitive disadvantage relative to the rest of the world. No other country has contemplated imposing anything like the EPA’s regulatory scheme on its farmers. Thus, the EPA’s regulations would make it harder for American farmers to compete in international markets because they would face higher operating costs.

A number of bills have been introduced to limit the EPA’s authority to impose global warming regulations. Some seek to amend the Clean Air Act to preclude this statute from being used to regulate on the basis of global warming concerns. Others are resolutions of disapproval by which Congress specifically rejects the EPA’s endangerment finding. Other bills seek to delay implementation of EPA regulations until further study has been completed.

American agriculture already faces a number of challenges, and the EPA’s anti-agriculture global warming policy would make the future for farming even dicier. For the sake of America’s farmers, the EPA’s global warming regulations should be stopped.

Posted under Climate, Commentary, Economics, Environmentalism, United States by Jillian Becker on Monday, April 5, 2010

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A community organized for slavery, want, and death 5

We strongly recommend a book on life in North Korea: Nothing to Envy by Barbara Demick .

Her highly credible account shows that most of the population goes hungry most of the time.

Here is a quotation, describing, as a common event, the death of a prisoner who has been worked and slowly starved to death. Prisoners are needed to work as slaves in the mines and other industries, so people are arrested on flimsy excuses:

[The prisoners were] mostly “economic criminals” who’d gotten in trouble at the border or the market. The actual thieves among them had stolen nothing more than food. One of them was a forty-year old rancher who had worked on a collective farm raising cattle. His crime was that he had failed to report the birth of a dead calf, instead taking the stillborn home to feed his wife and two young children. By the time Hyuck [who relates this story to the author] met him, he had served five years of a ten-year term. … The rancher was gentle and soft-spoken, but one of the senior guards took a strong dislike to him. His wife and children came twice to visit, but were not allowed in to see him or to send gifts of food, privileges allowed some of the more favored prisoners.

The rancher died of starvation. It happened quietly; he went to sleep and didn’t wake up. It was a common occurrence that somebody would die in the night. Often it was obvious in the close sleeping-quarters, because the dying man would evacuate his bladder and tiny bubbles would appear on his lips as fluid seeped out of the body.

As in all collectivist systems, the community of North Korea is organized for slavery, want, and death.

The radicals who rule 172

Barack Obama and Hillary Clinton are disciples of the left-revolutionary Saul Alinsky. Hillary Clinton encountered him personally and wrote an academic essay on his theories. Obama never met him but is his political child, faithfully following his intructions for changing the world. To what? An explicit answer cannot be found in the works of radical leftists, but what one gathers and gleans from them is this: an entirely different world in which human beings will not be as they are but transfigured, their nature so utterly changed that they will commit no crimes, never desire to have one thing that everybody else doesn’t have, and will have no aggression, envy, or hate in them. Or something along those lines. The picture of what will be is never apparently clear even in the revolutionary mind itself. A Marx, a Lenin, a Mao, an Alinsky can describe in any amount of detail what hell is – life as it’s lived now, especially in America; but they cannot describe their heaven (see our post Heaven and Hell, December 16, 2009). They require the utter destruction of this world so that the amorphous fantasy, the new world that they cannot visualize will arise on the ruins of the old. All they are sure of is the first step: destroy this world. This they can and will strive to do with fanatical passion. Anything may be done, however unjust, however cruel. Any number of the living may be sacrificed, for their suffering will buy the bliss of that far more worthy future human race.

Alinsky lays out practical steps for achieving the total destruction in his book Rules for Radicals. David Horowitz, the doughty fighter for freedom in general and especially for free speech in the academies, has written a booklet titled Barack Obama’s Rules for Revolution: The Alinsky Model *, in which he explains fully what the Alinsky ethos is, and what tactics Alinskyites will use to create not heaven on earth but chaos.

Here are some quotations from the booklet:

Alinsky’s advice [to his followers] can be summed up in the following way. Even though you are at war with the system, don’t confront it as an opposing army; join it and undermine it as a fifth column from within. To achieve this infiltration you must work inside the system for the time being. Alinsky spells out exactly what this means: “Any revolutionary change must be preceded by a passive, affirmative, non-challenging attitude toward change among the mass of our people.” In other words, it is first necessary to sell the people on change itself, the “audacity of hope”, and “yes, we can”. You do this by proposing moderate changes which open the door to your radical agendas: “Remember: once you organize people around something as commonly agreed upon as pollution, then an organized people is on the move. From there it’s a short and natural step to political pollution, to Pentagon pollution.”

There is no real parallelism in the war which radicals have declared. One side is fighting with a no-holds-barred, take-no-prisoners battle plan against the system, while the other is trying to enforce its rules of fairness and pluralism. This is the Achilles heel of democracies and all radical spears are aimed in its direction.

At first it might seem paradoxical that an American president who has been the beneficiary of an electoral process second to none in its openness and inclusion should have been a veteran advocate and functionary of an organization like ACORN, which has been convicted of the most extensive election fraud in American history. But this is perfectly intelligible once the Alinsky method is understood. ACORN activists have contempt for the election process because they don’t believe in the electoral system as it is constituted in a capitalist democracy.

The really serious revolutionaries, the ones prepared to burn down the system and put their opponents up against the wall, have never had a plan. What they had – and still have – is a vague idea of the kingdom of heaven they propose to create, in Marx’s case “the kingdom of Freedom”, in Alinsky’s case “the open society”, in the case of the current left, “social justice”. These ideas are sentimental and seductive enough to persuade their followers that it is all right to commit fraud, mayhem and murder – usually in epic doses – to enter the promised land. But otherwise, revolutionaries never spend two seconds thinking about how to make an actual society work. How to keep people from committing crimes against each other; how to get them to put their shoulder to the wheel; how to provide incentives that will motivate individuals to produce wealth.

On this passage two points should be noted: The radical left’s understanding of what “the open society” means is the opposite of what the philosopher Karl Popper meant by it in his great work The Open Society and Its Enemies. Popper meant a society in which individuals are free to strive for their own ends, a society in which Adam Smith’s “natural order of liberty” (or what Karl Marx called, with contempt, “capitalism”) prevails. George Soros, who has benefitted hugely from the real open society of America, spends part of the fortune he has made in it on promoting collectivism with Alinskyite strategems through his “Open Society Institute”. And it should always be remembered that “social justice” is the opposite of justice. “Social justice” means endowing those who have not earned anything with the hard-won gains of those who have.

It must seem simply incredible that the chief enemy of a country should be its own elected president; that the man entrusted to lead it should be waging war on it. Many conservatives cannot bring themselves to believe even in the possibility that Obama – even though he is universally acknowledged to have been an Alinskyite in the past – is still of a mind to wreck the America he’s been elected to lead.

“Chaos”? “Wreck”? – don’t these words vastly exaggerate what’s happening?  But look at what he’s done: set the people against Congress, the states against the federal government, former allies against America; let enemies become dangerously strong; and loaded such a burden of debt on the people as will crush generations to come. Isn’t wrecking and chaos well underway?

Today in Townhall, Michael Medved writes a plea to conservatives not to characterize Obama as a revolutionary, or a radical of any sort. While never actually saying that Obama is not a radical revolutionary, he pleads that it’s politically unwise to say that he is. Here’s how he ends his column (but it’s worth going to the source to read the arguments):

If conservatives persist in characterizing the President of the United States as vicious and radical, insanely bent on the destruction of the Republic, we may find reassurance from the already like-minded but we’ll lose nearly everyone in the persuadable middle. As a result, we could spend the next decade or more as an increasingly impotent, irrelevant and angry opposition, howling in the political wilderness.

We don’t agree in this instance with Michael Medved. Horowitz’s booklet explains at length why it is just such fears that Alinskyites take advantage of. We think it’s time to fight seriously (though not unscrupulously as the radicals fight), and nothing can be won if the enemy isn’t recognized and named.

*Order it from The Freedom Center, PO Box 55089, Sherman Oaks, Ca 91499 Tel: 800-752-6562.

Certainty of decline, probability of catastrophe 336

Read only a few pages of HR3200,The Affordable Health Care Choices Act 2009, and once you’ve got the gist of what they’re saying let your eye wander over a hundred or so more, and you’ll know beyond all doubt that you are now owned by the government. The link:

http://thomas.loc.gov/

To put it bluntly, this act has changed the USA into the USSA – the United Socialist States of America:

Here is part of Mark Steyn’s must-read article on the immediate and future costs of it:

On the day President Barack Obama signed Obamacare into law, Verizon sent an e-mail to all its employees, warning that the company’s costs “will increase in the short term.” And in the medium term? Well, U.S. corporations that are able to do so will get out of their prescription drugs plans and toss their retirees onto the Medicare pile. So far just three companies – Deere, Caterpillar and Valero Energy – have calculated that the loss of the deduction will add a combined $265 million to their costs. There are an additional 3,500 businesses presently claiming the break. The cost to taxpayers of that 28 percent benefit is about $665 per person. The cost to taxpayers of equivalent Medicare coverage is about $1,200 per person.

So we’re roughly doubling the cost of covering an estimated 5 million retirees.

Now admittedly the above scenario has not been, as they say, officially “scored” by the Congressional Budget Office, by comparison with whom Little Orphan Annie singing “The Sun’ll Come Out Tomorrow” sounds like Morrisey covering “Gloomy Sunday.” Incidentally, has the CBO ever run the numbers for projected savings if the entire CBO were laid off and replaced by a children’s magician with an assistant in spangled tights from whose cleavage he plucked entirely random numbers? Just a thought.

This single component of “health” “care” “reform” neatly encompasses all the broader trends about where we’re headed – not just in terms of increased costs (both to businesses and individual taxpayers) and worse care (for those retirees bounced from company plans into Medicare), but also in the remorseless governmentalization of American life and the disincentivization of the private sector. As we see, even the very modest attempts made by Congress to constrain the 2003 prescription drug plan prove unable to prevent its expansion and metastasization. The one thing that can be said for certain is that, whatever claims are made for Obamacare, it will lead to more people depending on government for their health arrangements. Those 5 million retirees are only the advance guard. And, if you’re one of those optimistic souls whose confidence in the CBO is unbounded, let’s meet up in three years’ time and see who was correct – the bureaucrats passing out the federal happy juice, or the real businesses already making real business decisions about Obamacare.

Can we afford this? No. Even on the official numbers, we’re projected to add to the existing $8 trillion in debt another $12 trillion over the next decade. What could we do? Tax those big bad corporations a bit more? Medtronic has just announced that the new Obamacare taxes on its products could force it to lay off 1,000 workers. What do those guys do? Well, they develop products such as the recently approved pacemaker that’s safe for MRI scans or the InterStim bladder control device. So that’s a thousand fewer people who’ll be working on new stuff. Well, so what? The public won’t miss what they never knew they had. So, again, the effect is one of disincentivization – in this case, of innovation.

If existing tax structures can’t cover the costs, what can we do? Start a new tax! The VATman cometh. VAT is Euro-speak for “value added tax.” … This is yet another imposition on businesses, taking time away from wealth creation and reallocating it to government paperwork. If the Democrats hold Congress this fall, I would figure on VAT sooner rather than later.

All of the above is pretty much a safe bet. What about the imponderables? Even Obama hasn’t yet asked the CBO to cost out, say, what happens to the price of oil when the Straits of Hormuz are under a de facto Iranian nuclear umbrella – as they will be soon, because the former global hyperpower, which now gets mad over a few hundred housing units in Jerusalem, is blasé and insouciant about the wilder shores of the mullahs’ dreams. Or suppose, as seems to be happening, the Sino-Iranian alliance were to result in a reorientation of global oil relationships, or the Russo-Iranian friendship bloomed to such a degree that, between Moscow’s control of Europe’s gas supply and Tehran’s new role as Middle Eastern superpower, the economy of the entire developed world becomes dependent on an alliance profoundly hostile to it.

Which is to say that right now the future lies somewhere between the certainty of decline and the probability of catastrophe. What can stop it? Not a lot. But now that your “pro-life” Democratic congressman has sold out, you might want to quit calling Washington and try your state capital. If the Commerce Clause can legitimize the “individual mandate,” then there is no republic, not in any meaningful sense. If you don’t like the sound of that, maybe it’s time for a constitutional convention.

Ghana, stuck with the wind 185

The American Dictator (yes, he’s the one we mean) is doing his utmost to keep Africa in poverty and despair.

Roy Innis, national chairman of the Congress of Racial Equality, writes today at Townhall:

I see Africa as a … partner with America on behalf of the future we want for all of our children,” President Obama declared in Ghana last July.

However, three months later, the President signed an executive order requiring that the Overseas Private Investment Corporation and other federal agencies reduce greenhouse gas emissions associated with their projects by 30% over the next ten years. The order undermines the ability of Sub-Saharan African nations to achieve energy, economic and human rights progress. 

Ghana is trying to build a 130-MW gas-fired power plant, to bring electricity’s blessings to more of its people, schools, hospitals and businesses. Today, almost half of Ghanaians never have access to electricity, or get it only a few hours a week, leaving their futures bleak.

Most people in Ghana are forced to cook and heat with wood, crop wastes or dung, says Franklin Cudjoe, director of the Imani (Hope) Center for Policy and Education, in Accra. The indoor air pollution from these fires causes blindness, asthma and severe lung infections that kill a million women and young children every year. Countless more Africans die from intestinal diseases caused by eating unrefrigerated, spoiled food.

But when Ghana turned to its United States “partner” and asked OPIC to support the $185-million project, OPIC refused to finance even part of it – thus adding as much as 20% to its financing cost. Repeated across Africa, these extra costs for meeting “climate change prevention” policies will threaten numerous projects, and prolong poverty and disease for millions.

Sub-Saharan Africa is home to 800 million people, 80% of whom live on less than $2.50 per day. Over 700 million people – twice the population of the USA and Canada combined – rarely or never have access to the lifesaving, prosperity-creating benefits of electricity …

Even in South Africa, the most advanced nation in this region, 25% of the populace still has no electricity. Pervasively insufficient electrical power has meant frequent brownouts that have hampered factory output and forced gold and diamond mines to shut down, because of risks that miners would suffocate in darkness deep underground. The country also suffers from maternal mortality rates 36 times higher than in the US, and tuberculosis rates 237 times higher.

And yet President Obama told his Ghanaian audience last July that Africa is gravely “threatened” by global warming, which he argues “will spread disease, shrink water resources and deplete crops,” leading to more famine and conflict. Africa, he says, can “increase access to power, while skipping – leapfrogging – the dirtier phase of development,” by using its “bountiful” wind, solar, geothermal and biofuels energy.

The President made these remarks before the scandalous “Climategate” emails were made public, and headline-grabbing claims about melting glaciers, burning Amazon rainforests and disappearing African agriculture were shown to be mere speculation and exaggeration from climate activists

Literally thousands of scientists disagree with claims that we face an imminent manmade global warming disaster, or that warming is connected to disease or harvests. Africa has faced drought, famine and disease since before Biblical times, and armed conflict is far more likely where a lack of electricity perpetuates poverty, scarcity and dashed hopes.

Wind and solar power are too costly, intermittent and land-intensive to meet the needs of emerging economies

That is why rapidly-developing nations like China and India are building power plants at the rate of one per week… Nearly all this electricity must be based on coal.

Wind power is constrained by high cost and limited reliability. Nuclear energy faces major cost and political obstacles. To electrify India in the absence of coal, the country would have to find 14 trillion cubic feet of natural gas, build 250 nuclear power plants, or construct the equivalent of 450 Hoover Dams, Penn State University professor Frank Clemente calculates. Those alternatives are unrealistic.

Blessed with abundant supplies of coal, South Africa has applied for a World Bank loan to continue building its 4,800-megawatt Medupi power plant. The Medupi plant would be equipped with the latest in “supercritical clean coal,” pollution control and “carbon capture” technologies. However, the project and loan have run into a buzz saw of opposition, led by the Center for American Progress, Africa Action, Friends of the Earth and Sierra Club. These radical groups claim to champion justice and better health for Africa, but oppose the very technologies that would make that possible…

The proposed Ghana and South Africa power plants already leapfrog dirtier development phases, by providing state-of-the-art pollution control technology. The energy alternatives President Obama envisions would do little to address the desperate crises that threaten Africans’ health, welfare and lives.

China and India are showing Africa the way forward. Those of us in already developed countries should support Africa’s aspirations – and help it address real health and environmental problems, by using affordable, dependable energy that truly is the lifeblood of modern societies, and the key to a better future for children everywhere.

A farewell to freedom 181

It has happened. The CHANGE has been made.

Mark Steyn sums up just what has happened and what it will mean for America and beyond:

Happy Dependence Day!

Well, it seems to be in the bag now. I try to be a sunny the-glass-is-one-sixteenth-full kinda guy, but it’s hard to overestimate the magnitude of what the Democrats have accomplished. Whatever is in the bill is an intermediate stage … The governmentalization of health care will accelerate, private insurers will no longer be free to be “insurers” in any meaningful sense of that term (ie, evaluators of risk), and once that’s clear we’ll be on the fast track to Obama’s desired destination of single payer as a fait accomplis.

If Barack Obama does nothing else in his term in office, this will make him one of the most consequential presidents in history. It’s a huge transformative event in Americans’ view of themselves and of the role of government. You can say, oh, well, the polls show most people opposed to it, but, if that mattered, the Dems wouldn’t be doing what they’re doing. Their bet is that it can’t be undone, and that over time, as I’ve been saying for years now, governmentalized health care not only changes the relationship of the citizen to the state but the very character of the people

More prosaically, it’s also unaffordable. That’s why one of the first things that middle-rank powers abandon once they go down this road is a global military capability. If you take the view that the U.S. is an imperialist aggressor, congratulations: You can cease worrying. But, if you think that America has been the ultimate guarantor of the post-war global order, it’s less cheery. Five years from now, just as in Canada and Europe two generations ago, we’ll be getting used to announcements of defense cuts to prop up the unsustainable costs of big government at home. And, as the superpower retrenches, America’s enemies will be quick to scent opportunity.

Longer wait times, fewer doctors, more bureaucracy, massive IRS expansion, explosive debt, the end of the Pax Americana, and global Armageddon. Must try to look on the bright side . . .

The bureaucracy will be busy. It will come poking into our private lives, because the government now owns us. It now “has a right” to order us to live like this and not like that. What we eat, how much we eat, how warm or cool we may keep our homes, what sort of transport we may use …. it’s hard to think of a daily activity that won’t be regulated, because the government will be paying – with our tax dollars, of course – for our medical treatment, and may provide it if we’ve been “good”, or withhold it if we’ve been “bad”.

You will obey” is the new true motto of once-free America.

Good-bye, freedom!

Doomsday Eve 118

This is a fulcrum moment in history.

If the Democrats succeed in “kicking down the door”, “crossing the threshold”, “vaulting over the fence” – to use Pelosi-Obama metaphors – by passing their “health care” bill, which is actually a bill to turn America towards unstoppable socialism, they will have a clear field in front of them.

The Left’s “long march through the institutions” brought Obama to the most powerful position in the world. Now the purpose of the long march can be realized: a collectivist world.

Then the brief American experiment in liberty – successful though it has been while it lasted – will be over: over for America, and so for the world. There have been only a few periods and places in which people have been able to live in freedom under law. Britain managed it for a while. The United States has managed it triumphantly for about 234 years. Ahead, if the bill passes and the Democrats continue in the direction Obama and Pelosi are leading them, lies collectivism, poverty, serfdom, misery. There will be hunger and want as there was in collectivist Russia and collectivist China; not immediately, but once the Capitalist Goose is killed, there can be no more golden eggs and the store will soon be bare.

However the swing to socialism is accomplished, whether by majority vote in a corrupt Congress, or by hook-and-crook, deem-and-wangle, if this measure becomes law it will be a victory for evil.

Jillian Becker March 19, 2010.

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