Archive for January, 2010

Obama Dials Up the Whambulance on Supreme Court Decision

By Caomhin

Free speech in America?  Obama is really mad about that:

In the 5-4 decision Thursday, the high court threw out parts of a 63-year-old law that said companies and unions can be prohibited from using their own money to produce and run campaign ads that urge the election or defeat of particular candidates by name.

“I can’t think of anything more devastating to the public interest,” he said

Obama said the decision will make it harder to enact financial, tax, health care and energy changes.

Anything that upsets a Liberal’s agenda demands immediate scorn from our statist friends.  After Scott Brown’s win, Democrats are looking at trying reconciliation to pass Obamacare and are openly talking about ending the filibuster.  They’re like spoiled children who throw fits when they can’t get their way.  It’s rather amusing to watch yet at the same time highly annoying.

Obama is now in a tizzy because the Supreme Court (Obama, who has a background in law surely knows the term “Checks and Balances”) made the right call here which has severely upset him and now he may not get his way.  Hey it’s not as if the media hasn’t been spending all their money and stumping for Democrats for years.  Hell, MSNBC is practically just a giant campaign commercial for liberals.  All the Supreme Court did was allow corporations and the Unions among other entities the option to spend their money as they see fit.  I have no doubt that if this decision was strictly for the Unions and ignored corporations, Obama wouldn’t be out on TV crying.  As we all know Union money and efforts constantly go toward trying to get Democrats elected anyway. He’s just pissed because he may see an increase in funds going towards opposing his job killing, tax raising, government takeover agenda.

Ed Morrissey at Hot Air has a very good write up that you should check out. He focuses on the hypocrisy of Obama and of course, the New York Times. As always, Ed is on point.

What’s really got liberals and Obama pissed off is highlighted in the last sentence in the selection from the article.  Obama knows how strongly the American people are opposed to his bank tax and financial regulation schemes.  He knows how much Americans are opposed to efforts to increase their taxes.  He knows how strongly Americans are opposed to Obamacare and the government take over of the health care industry.  He knows how staunchly Americans are opposed to the horrendous Cap and Trade scheme which will bring even more job losses and taxes to Americans.  Now, corporations have the choice to weigh in if they so choose to exercise their rights to free speech.

Obama also asserts that he “can’t think of anything more devastating to the public interest.” Allowing for free speech is not devastating to the public interest whatsoever.  Government take over of sectors our economy and job killing policies are, however, devastating the public interest and of course there is another thing which is, in my opinion, causing the most devastation to the public interest, and Obama has accelerated its growth exponentially.

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More Errors in Climate Change Science

By Caomhin

In a perfect world, I would know at least envirofascist who would admit they were wrong about taking a Chicken Little stance.  However, as we all know, the world is not perfect and I’m not holding my breath.  I wonder where Al Gore is right now:

The head of a panel of United Nations climate scientists said Saturday he would not resign despite a recent admission that a panel report warning Himalayan glaciers could be gone by 2035 was hundreds of years off.

The claim, made in the Intergovernmental Panel on Climate Change’s voluminous, Nobel-winning report, came in a paragraph with several errors. Data indicates the ice could melt by 2350. The assertion went virtually unnoticed until The Sunday Times said the projection seemed to be based on a news report.

I’ve taken the liberty of highlighting a key word in the text above: could. I could win the Powerball, but I’m not holding my breath on that either. It’s possible that the Himalayan glaciers could melt in 340 years, but they are not positive about that scenario either.  As many of us have asserted, the panic infused nature of the Green Movement is and was unwarranted.

I’ve never advocated destroying the environment and accusations of such are humorous to me.  We can all do things to help the environment such as recycling, reusing plastic bags (I think it’s common practice now that grocery bags are used as trash can liners), properly dispose of batteries, used oil, etc.  I find littering to be a horrible practice, basically it’s nothing more than sheer laziness.  I love going to the zoo or just seeing animals out running around (and here in Pennsylvania, believe me, you will see deer in abundance as well as many other animals).  The point I’m making here is that there are many common sense and easy measures each of us can take to protect our environment.

That being said, however, I find it reprehensible when politicians and individuals use the environment for their personal gain.  I also find it to be sure insanity to handicap the ability of Americans to economically heat their homes, provide for the their transportation, consume goods, or to have a strong economy and a path to prosperity in order to satisfy those in the Green Movement.  There is little doubt that absent of government action we have seen a response from corporations to develop more efficient products from vehicles to paper products.  This has more to do with reacting to consumer needs and demands as well as advances in technology than it does with government intervention.

I argued against government regulations demanding increases in fuel efficiency, not because I’m against more fuel efficient vehicles, but because government intervention will do more harm that good.  There’s no doubt that the auto manufacturers have been developing and have produced much more fuel efficient vehicles than they have in the past.  This has been a steady progression with the occasional jump in efficiency as new and/or improved technologies have been introduced.  However, once a government edict is introduced, in order to accelerate this process, the business model suddenly and violently shifts, which disrupts business and cash flows as well as the ability to maintain manufacturing levels of current vehicles, which results in government mandated increases of R&D while slamming the brakes on production (affecting auto workers as layoffs become a more likely over a prolonged period of time) of current vehicles whether or not demand exists in the marketplace.  It is through government action that the American worker and consumer is harmed while pursuing a governing “goal.”  Regardless of whether you find the goal worthy or noble, the action undertaking has severe and debilitating side effects, the strength of which depends on the scope and size of the regulation.

The rush to decision making in order to help certain causes often ends with negative side effects.  Many times, especially with regards to the Green Movement, we have seen politicians and acolytes of the movement try to dictate to the citizens of American and the world how to live and have attempted to brow built and instill a guilt trip on them for how they live.  You should not feel guilty for trying to provide for you families or to improve the quality of your life.  You shouldn’t doubt in humanity’s ability to develop new and improved technologies as our scientific understanding develops.  We have solutions and energy sources that will work, some of which can be implemented now (nuclear), some of which are still being perfected (hydrogen and clean coal).  We will get there but it will take time to perfect the science. Efforts to bend the learning curve, demand unrealistic measures, and to spread fear about proven, workable solutions (again, you can reference nuclear) will only serve as draw backs.  In the meantime, don’t be afraid to live your life and certainly don’t let the apostles of control make you feel bad about taking care of yourself and your families.

More Obamanomics Lessons

By Caomhin

Obama talks, the markets listen. From Market Watch:

The dollar gave up earlier gains in afternoon trading on Thursday in a volatile session marked with conflicting signals from economic data, and stocks dropping as President Obama outlined plans to rein in banks. “Talk from the president of a major overhaul of how banks can operate appears to have scared foreign interest away from the greenback,” said analysts at Action Economics.

I have written before about Obama’s horrific plan to handicap financial institutions and drag down the economy.  Today, Obama took some time and expanded on his tax raising, job killing scheme and the markets, as expected, responded negatively.  It’s a shame those “fat cats” in the White House don’t have a 401(k) like the vast majority of Americans, or maybe they’d have been personally affected by this proposal like so many us have and will be should this idea pass.

Fox News has a bit more of the detail of his plan:

Obama is placing a new emphasis on Wall Street regulations, with a goal of limiting the financial sector to smaller, less interconnected firms.

The proposal would seek to limit bank consolidation and ensure that banks, and financial institutions that contain banks, cannot invest in hedge funds or other funds “unrelated to serving customers” for profit.

I have a goal too, to make government less complex, small, and less interconnected to the rights of individuals.  Of course that goal makes sense and empowers individuals and embraces the free markets.  Therefore, do not expect any liberal to endorse that particular idea.

All financial transactions involve risk and every single corporation has a duty to its owners (the shareholders) to maximize profits.  Financial decisions are based on a risk/reward matrix and each individual falls somewhere within this matrix.  You are willing to accept a certain level of risk in order to reach a certain level of POTENTIAL profit.  This is understood.  Now, however, Obama is essentially saying that owner of a corporation and the individuals who are consuming this product (in this case banking products) should not be allowed to make decisions based on their own needs and risk levels.  Additionally, the taxes Obama is proposing will be directly passed on to the American consumer, it is simply a lie for the Administration to state otherwise.  Furthermore, this will limit the freedom and choices available to consumers.  This is socialist, or at perhaps statist, but it runs counter to freedom.

Lastly for tonight, let me just mention that the Associated Press and every other liberal outfit in the land needs to pull their heads out of the sand and recognize that the economic policies that Liberals have imposed on this country are a complete and utter failure.  They have damaged our nation and put us into a depression.  Further, more, articles such as this one, where initial claims for unemployment increase yet again, are not “unexpected.”  This is precisely what I and others have long said would continue to happen as government intervention hampers the ability of the economy to rectify itself through the free market.  As I have long said, the economy will recover in spite of, and not because of, the role of government in the marketplace.

Democrats Gearing up to Increase the Debt Limit by $1.9 Trillion

By Caomhin

$1.9 Trillion.  In order to finish up the current fiscal year.  To avoid putting the United States in default.

Let this sink in:

Senate Democrats on Wednesday proposed allowing the federal government to borrow an additional $1.9 trillion to pay its bills, a record increase that would permit the national debt to reach $14.3 trillion.

The unpopular legislation is needed to allow the federal government to issue bonds to fund programs and prevent a first-time default on obligations.

Less than a decade ago, $1.9 trillion would have been enough to finance the operations and programs of the federal government for an entire year. Now, it’s only enough to make sure Democrats can avoid another vote before Election Day.

Democrats are fine with a national debt of $14.3 Trillion, at least until after the elections in November, when they will vote to increase the limit again.  They are looking to increase the debt $1.9 Trillion dollars over the next ten months.  It’s no secret that the liberals in Congress have many, many schemes that they are looking to unveil, all of which would accelerate the accumulation of debt.  This level of debt is unsustainable and, frankly, it is immoral of this Congress to continue to find ways to spend money, unveil new programs, and increase the size of government and foot every man, woman, and child in this nation, for untold generations, the bill for doing so.

The amount of money that the Obama Administration and the Liberal controlled Congress have spent is staggering, and from all indications, this is just a microcosm of what they are looking to do.  Not only have they demonstrated that they possess no restraint or self control, they have also demonstrated a complete and utter lack of common sense and decency.  The spin and the lies they have been perpetrating provide no cover from the truth, and as such, they must deal with the consequences of their actions.

It is imperative that spending be dramatically cut.  The crushing debt threatens to break the back of our economy and severely impacts each and every American.  There is no excuse for the amount of spending and complete and utter fiscal irresponsibility.  The madness must stop or we are literally facing a bankrupt nation and a myriad of troubles that could make our current situation look like economic times of the Roaring 20s.

Obama’s Bank Tax and Economic Failures

By Caomhin

Only an idiot would raise taxes during an economic downturn.  Obama is proposing to raise taxes during an economic downturn.  I guess the logical flow there is self evident.

Obama is seeking to impose new taxes on the financial industry for engaging in risky business, such as lending to consumers even when firms know the risk but are forced to do so by government regulation.  As we all know, people like Barney Frank refused to let anyone investigate Fannie or Freddie prior to the financial meltdown, which was a key component to the exposure that tax payers faced when TARP was enacted.  Government laws and regulations, such as the Community Reinvestment Act, signed into law by Jimmy Carter and approved by a liberal Congress, helped to create and exacerbate the financial crisis by lowering underwriting standards on lending.  As the government and elected officials provided cover for the bubble to grow, when it finally popped, they immediately tried to shift blame to the private marketplace, which in fact, would not have allowed the bubble to grow to point that it did, absent government interference.  Liberal backing media supported the government in shifting the blame onto financial firms and the free market despite overwhelming evidence to the contrary.

When the bubble forced, TARP was enacted to shore up the bottom line of financial firms, essentially to cover them from insolvency due to the number of bad loans that were issued, which were, in part, issued due to government regulations.  As you also know, many firms, have already paid back TARP funds with interest.  Some firms never wanted TARP funds in the first place but were forced to do so.  They have also paid these funds back.  Yes, there are firms out there who have yet to pay back the funds are are not back on solid footing as of yet, but Obama’s new tax scheme punishes all financial firms as well as consumers alike and must not be allowed to pass.

From Fox News:

The proposed 0.15 percent tax would last at least 10 years and generate about $90 billion over the decade, according to administration estimates. It would apply to about 50 of the nation’s biggest banks, those with more than $50 billion in assets, and include many institutions that accepted no money from the $700 financial industry bailout.

Fees and taxes, as history have taught us, are passed down to consumers as they increase the cost of operation.  If input costs are increased, we know then, that output costs are increased.  Economics is very clear on this lesson, both in theory and in practice.  At least part, if not all of these fees will be passed directly onto the consumer.  Obama is also seeking to “recoup” TARP funds from companies who didn’t receive TARP funds at all. Funny how that works, huh?

Also important to note per Market Watch:

The fee would also not apply to General Motors Co., Chrysler, Fannie Mae (FNM 1.10, -0.02, -1.79%) or Freddie Mac (FRE 1.38, 0.00, 0.00%) , but would cover most other large firms that benefited either from the TARP or from other federal assistance, including help from the Federal Reserve.

GM, Chrysler, Fannie, and Freddie, all have direct ties to the government, hence they are going to be exempt from Obama’s proposed fees.  I guess this means that if you are in part controlled by the government you are exempt from laws.  See my earlier post on Unions that also illustrates how those with close ties to Democratic Party are also being exempted from laws and taxes that Obama is attempting to implement.

Two things here seem to jump out almost immediately.  The first is that the Obama administration has no economic or business acumen.  With unemployment at 10% and rising, Obama has no answers, and the proposals he is generating will only exacerbate, not alleviate the issue.  His refusal to allow the free market to operate is crushing the American people.  The second is that Obama will only seek to punish those who oppose him and will attempt to shield his supporters from being subject to the laws that he wants to impose upon our nation.

With regards to government intervention in the mortgage market place, at least the President of the Federal Reserve Bank of Philadelphia, Charles Plosser, is speaking out:

“I believe it is important that we [complete the purchases] and reduce our participation in this market, so the private market can once again resume a significant role,” Plosser said. “It cannot do so as long as the Fed is the dominant player, and we would risk delaying the return to normal market functioning rather than promoting that return were our sizable purchases to continue.”

Plosser added that the Fed had been “crowding out” private-sector investors in the MBS market.

The Fed must unwind its other stimulus programs as well. “An appropriate exit strategy to withdraw or restrict the massive amount of liquidity that we have made available to the economy will have to be put into action to keep the inflation rate from rising to unacceptable levels,” he said.

The extra-low federal funds rate must be raised as the economy returns to growth, Plosser remarked. He expects the economy to grow between 3% and 3.5% this year and the next. However, the unemployment rate will probably remain elevated, restraining consumer spending.

There are those who recognize the disruptive force the government is having on the marketplace and it is a positive note that they are speaking up.  Not explicitly mentioned here is that Plosser is also warning about stagflation.  Reading those bolded sections makes this abundantly clear.  Plosser, as many others, included myself, have long argued, is alluding to the fact that government intervention is going to result in high rates of unemployment and inflation, aka stagflation.

Unless or until the Obama administration gets out of the way and allows the free market to operate, Americans will suffer and the economy will not be allowed to reach its full potential.  Foolish policies such as government take over of huge sections of the economy, raising taxes (see also the impending tax hikes coming next year if the Bush Tax Cuts are not expanding, impacting every tax bracket in the United States), a lack of transparency into the operations of quasi-government agencies, as well as poor fiscal and monetary policies will prolong the depression that the government has essentially created.  Whether it is pride, politics, or lack of knowledge guiding this administration we continue to pay the price for their failure.  Now, with looming tax increases, we are seeing it increasingly quantified.

Rendell Still Refuses to Give up on Dream of Raising Taxes

By Caomhin

Hardcore liberal seeks to raise taxes, and again, it is met with anything but surprise.  I don’t know why Rendell has it out for the natural gas industry in particular, but he wants a tax on natural gas extraction like he wants a cheesesteak.  I’ve blogged on this issue at least a few times before, and that may be an understatement.

After bids for six tracts of state forest land came in over twice what the state had budgeted, Gov. Ed Rendell renewed calls for an extraction tax on the Marcellus Shale, a natural gas source deep under the Pennsylvania surface.

Think of the logic behind Rendell’s thinking here.  The state received bids that came in twice what they project, which is more revenue than they had planned on receiving, and he immediately calls for…a tax increase.  Let’s rephrase that, the Commonwealth received nearly twice the amount of money they were expecting from to a competitive bidding process and Rendell wants even more money.  Nothing will satisfy this buffoon short of signing yet another tax increase and I have no idea why he wants to raise costs on consumers (which is precisely what his idiotic tax idea will do) especially when the economy is hurting so badly, in part in the Commonwealth because of his ineptitude, and nationally because of Liberal policies that are choking out any potential growth.  I probably can’t properly put into words how badly I’m itching to vote for a new governor and to see this tool pack his bags and get the hell out of Harrisburg.

Tom Corbett talks Cornhusker Kickback

By Caomhin

In yet another prime example of why I’m excited to help him become the next governor of our great Commonwealth, Corbett talks about the deal bribe that Ben Nelson solicited for his vote on Obamacare.  This link takes you over to Fox News to watch the clip of Corbett’s discussion about this issue, in which he sticks up for Pennsylvania and the rest of the nation as well, while highlighting the unconstitutional nature of this provision.

To sign up for campaign updates or to help Tom out, head on over to his website. Let’s work hard to ensure Pennsylvania gets the kind of governor we deserve, one who cares about the people of this Commonwealth and who will restore confidence in Harrisburg.