Is America in Decline?

Is America really in decline? The Drudge Report posted an editorial from the British paper The Financial Times entitles America Must Learn to Manage It’s Decline. The author claims that America must come to accept its decline in the world or risk having it worse than it is. He cited the United Kingdom in 1945 in coming to terms with the demise of Pax Britannia. He also stated that Britain prospered economically once it accepted its reduced role in the world.

Well, we aren’t Britain at the end of World War II which was dealing with massive destruction of its industrial capacity, an empire torn apart by the war, economically bankrupt, and incapable of reconstructing itself let alone any other part of the world. The British Empire didn’t decline. It collapsed in the war. Just like the Habsburgs and the Austro-Hungarian Empire did at the end of World War I. War is funny that way.

The fact that this editorial appeared in the Financial Times is indicative of how the world currently views Obama’s America. He views America as being in a zero sum game. Although he says he wants America to be number one, as in all things Obama, his actions are those of a person trying to manage a shrinking economy and shrinking power. And just in case it didn’t happen by itself, he would institute policies to make sure that it does.

America will never be a second class country. We are the third largest country in the world by population (behind China and India). We are blessed with abundant natural resources although Obama and his EPA cronies are doing their best to put them out of reach. The rest of the world still comes here for our universities and educational opportunities. Although the country is broke, most of our citizens are fairly well off and we still maintain a vibrant middle class contrary to progressive rhetoric.

That doesn’t mean other countries won’t advance as they achieve economic success based on one form of capitalism or another…whether it is state capitalism in China or crony capitalism in Russia or hard working capitalism like in India. After World War II, the United States was the only game in town. No one could expect that to last.

But just because other countries are finally achieving success doesn’t diminish our relevance or importance in the world. We have first and foremost a Constitution, Rule of Law, and a stable political system. The current gridlock in Washington isn’t a sign of our weakness. It is a sign of our strength. As the saying goes, we will finally stumble upon the correct policy after all others have failed. Notwithstanding the Standard and Poor’s debt downgrade, America is the ONLY safe haven in the financial world. That is the strength of our system and of our national character.

The risk of American decline will not be found in foreign countries overtaking our hegemony. The risk is found from within. Don’t listen to Obama. Don’t be fooled by utopian promises. Unlike Obama who has preyed on people’s fears, equality in America doesn’t mean that all people should have the same…that’s communism. In America, we are created equal by God who has given us equal opportunity to pursue life, liberty and the pursuit of happiness. Our strength is in striving to give everyone an equal opportunity, equal life chances. We obviously don’t always achieve that, but we try. That is the great American quest.

America in decline? That will happen only if we choose to let it happen.

"Occupy" These Three Things to Fix the Economy

In the midst of the Occupy something or other “movement”, I am stunned at the lack of understanding of the American system exhibited by these folks. Some want all debts forgiven. Others want the banks to be dismantled. Still others want all income to be equal. Another group wants doctors to only make $28,000.00/year. Others think that aliens are controlling all the corporations. Oh my. What have we wrought?

Obviously economics is not these folks' strong suit. For that matter, most of us are lacking in the fundamentals as to how our economic system works. That is why the times we are living in are so hard. People don’t know where to look for solutions, so they look in all the wrong places.  Here are two definitions just for the hell of it. Fiscal policy has to do with government spending and taxing policy. Monetary policy has to do with how the Federal Reserve sets interest rates, bank reserve requirements, and the increase and/or decrease of the money supply.  That was simple, wasn't it? 

Our economy cannot be fixed until the powers that be realize that this time monetary and fiscal policy will not work. Under normal circumstance and normal recessions fiscal and monetary policies work to a degree and can be very helpful. But this isn’t a normal recession. Someone has let the air out of the balloon. Changes in monetary and fiscal policy are simply moving deck chairs on the Titanic. Raise taxes on the rich to “stimulate” the economy under these circumstances is robbing Peter to pay Paul. It is smoke and mirrors with no substance and may actually be harmful as the most productive in our economy are penalized.

Our economy is in systemic trouble. There has to be a change in priorities in order to fix things. Some of these changes will be painful…and others will be exciting and challenging and will represent a rebirth of American greatness.  All of them will be controversial because many political policies have become dogma and border on religion.  That is dangerous.

Start with fairness. Obama and friends get on television night after night and talk about the rich paying the fair share of taxes. When 50% of working Americans pay no taxes and the top 10% of wage earners pay more than 80% of collected income taxes, Obama is right. Just not in the way he thinks. While the blame game may prove popular to a degree, he is doing a disservice to the country by lying. The tax code needs to be reformed so everybody pays something. I don’t care if it is even a hundred bucks. REVISE THE TAX CODE.

Energy is the lifeblood of America. We are regulating ourselves out of business while our competitors pay lip service at the altar of environmentalism but then do whatever they want. Leading by example doesn’t cut it. We need to normalize energy policy in our country allowing for the production of domestic energy, including coal, natural gas, and off shore oil. I am also for alternative energy development. The government can push the country in that direction with reasonable tax incentives…but it CANNOT continue to regulate our country into oblivion based on some speculative junk science which over and over again is proven to look good in theory, but is not borne out by the empiric evidence. THE CURRENT ENERGY POLICY IS THE DEATH KNELL OF OUR ECONOMY.

As an appendage to our dysfunctional, ideological energy policy, General Electric closed its last light bulb plant in the United States and moved production of the new “green” light bulbs to China. Until the government gets tough with China, requiring it to float its currency like all of the other world players, we will continue to lose business and jobs to the Chinese. Add to that tough, enforceable intellectual property laws, maybe then we can make some headway.

I keep talking and nobody listens. Benanke and crew can continue to quantitatively ease the money supply. Obama and crew can continue to rail against the rich. The “occupy” jack asses can continue to call for dismantling the nuclear power plants. It will make no difference.

1) REFORM THE TAX CODE.

2) ALLOW FOR DOMESTIC ENERGY PRODUCTION

3) NORMALIZE FAIR TRADE WITH CHINA

Do these three things, and we are back in business.

Obamacare Meets the Supremes

In a stunning reversal of strategy, this past week the Obama administration changed its health care law strategy by asking the United States Supreme Court to agree to hear the challenge to its constitutionality sooner rather than later. Up until now, the strategy had been stall and delay. The administration believed that a delay in the decision to possibly late 2013 would allow it to get by the election before implementation of its provisions, plus allow promulgation of the associated regulations making it difficult for the court to overturn Obamacare. Now it is expected the Supreme Court will issue a decision on Obamacare around June of next year, just in time for the election.

There have been three appellate hearing on the matter. The 6th Circuit in Ohio ruled 2-1 in favor of the law. The 11th Circuit in Atlanta ruled 2-1 against the law. The 4th Circuit in Virginia refused to hear the case stating that the parties had no standing to challenge it because it didn’t take effect to 2014. It took no position on its constitutionality or lack thereof. The Virginia and Ohio decision were straight party line. The fly in the ointment for Obama was the Atlanta decision where a Clinton appointee sided on the side of unconstitutionality.

Originally the administration indicated it would appeal the Atlanta decision to the entire panel of 11th Circuit judges. There are eleven of them. But they counted up the votes, and decided they couldn’t win there, and it would actually bolster the opposition challenging the law. Those of you who followed Bush v Gore in 2000 should feel right at home at the 11th Circuit, which helped Bush be declared the winner of the hotly contested Florida primary.

The Supreme Court is a center right court, with Justice Kennedy being the swing vote between the four liberal justices and the four conservative justices. The issue is simple, can the United States government force a citizen to buy a product it does not want while outlawing all other reasonable alternatives. The liberals have gone orgasmic claiming the Commerce Clause of the Constitution has expanded to such a point that government does have the authority. Those opposing state that if this law stands, the government can force individuals to buy or not buy anything if it serves the “social good”, whatever that means. My money is on the opposition.

This is the big enchilada for Obama. All other issues pale in comparison to his administration’s signature piece of legislation. Everything else he has done is haunted by the shadow of this 2400 page disaster which sets up a bureaucracy the likes of which this country has never seen before, enforced by the power of the Internal Revenue Service.

Obama’s supporters claim this is no different than Social Security and Medicare. They are wrong. In those programs, there was a benefit for everyone where there was none. In Obamacare, there are winners and losers. Most of the country has good health care plans and ends up at the losing end of the stick, and they are unhappy. At the height of the debate, 75% of Americans opposed it. Today, it is around 60%.

Obama’s people believe that it will be a political boon to the President if the law is upheld. And if the law is defeated, it would rally his base to re-elect him in order to make sure the next Supreme Court appointee will be liberal, and shift the balance on the court.

That is a bonehead position, and they are wrong. If the law is upheld, the right will rise up and show up at the polls unlike anything this country has seen before to politically get rid of it. If the law is overturned, the right will be celebrating in the streets, and still show up in droves to get rid of Obama.

One last thing!!! Obama shouldn’t be too sure to count on at least four votes in the Supreme Court. At the end of the day, these folks are independent lawyers and judges. Political leanings are one thing, but they also are trained to enforce and interpret the law according to the Constitution. They don’t live in a vacuum, and are well aware of the problems in the country and the political unpopularity of Obamacare. You may see a 6-3 decision, or even a 7-2 decision against the law. One of my friends who is the most liberal person I know told me that he admires the tea party. I asked him why. He said that there is very little difference between progressive Democrats and libertarian Republicans. They wanted the government out of their lives in the era of the 60’s protests, and they want the government out of their lives now.

And of course there was that little matter of the President of the United States dissing the Supreme Court on national television at a State of the Union Address no less. As they say….what goes around, comes around. It’s not nice to fool Mother Nature, or the Supreme Court.  Hi boys...good to see you.  Make some arguments.

Descending to Irrelevance

There has been only one other time America has witnessed a presidential meltdown, and that was Richard Nixon. Add to the list President Obama. Not only has he managed to disengage himself from the pulse of America, he has managed to combine it with the arrogance of Jimmy Carter, who also didn’t understand why America didn’t love him. Over the past few weeks, Obama has managed to piss off just about everybody…except the Muslims. Give him time. He will do that, too. Who is advising this guy?

Those of us who work for a living continue to look on with amazement. The surprise isn’t that the economy is so bad. The surprise is that it isn’t worse. While Obama goes traipsing off across the country spewing hatred against the “rich” who pay most of the taxes now, but apparently not enough for Barack, and telling African Americans to quit whining, the business community has quietly deserted him (except for Warren Buffett) and is cautiously making plans for the post Obama era, which will take years of recovery. Who wants to hire anyone when the President of the United States has hammered business with health care, added environmental regulation upon environmental regulation, saddled banks with all sorts of new rules, and refuses to drill for oil while loaning untold sums of money to a green energy company owned by one of his chief fundraisers that went belly up with your tax money? Hello!!! Are you listening?

Even the newspapers are backing away from this guy. The Washington Post is all of a sudden running critical editorials about him. The Chicago Tribune says he should not run for office again. Progressives are scared out of their minds. If Obama loses next fall, and loses big, the Progressive Movement in America will be dead. The grand experiment will be a failure with more poor than ever, and an economy at a complete standstill.  In order to survive, the Progressives will have to disassociate themselves from Obama.

Bill O’Reilly in his talking points on Monday night did an outstanding job of reviewing the history of the Progressive Movement in America. He framed the debate this way. Is this going to be an America built on capitalism and the Judeo-Christian ethic? Or is this going to be a society based on central planning by a secular, all encompassing government? It’s that simple.

Obama told you he wanted to fundamentally change America. He just didn’t tell you how. But if you had looked, you would have seen his friends, most of which were left wing, violent, sixties radicals. Look at where he went to church. Reverend Wright preached a radical religion rooted in violent social justice. That’s what counts to Barack Obama. That is what he knows. In the meantime, his wife is dancing wearing $40,000.00 cuff bracelets, and flying off to Spain for one of her own personal vacations.  Can you say "tone deaf"?

There are those who hoped he would move to the center. Not going to happen!!!! It’s not because he doesn’t want to. It’s because he doesn’t know what the center is. He has led a charmed life of privilege not fed by work, but by his appealing personality. He was the black guy the white folks could behind to show how tolerant they are.  No one taught him anything else.  He is truly living what he believes. 

His poll numbers have yet to reflect his speech to the Black Congressional Caucus. If you think they are bad now, you ain’t seen nothing yet. His class warfare themes are not ringing true to the American public. They know why there are no jobs and the economy is tanking: No energy. No money. Too much regulation. Too much uncertainty, and a hostile environment for business the likes of which this country has never seen before. 

America has stopped listening to him. Finally America is beginning to absorb what this man has done and who he is. He is descending to irrelvance. For a politician, that is a career death knell.

Here We Go a-Gerrymandering Among the Leaves So Green

Ohio’s new congressional district lines have been drawn. Democrats are howling and Republicans are cheering. It reminds me of Boss Don Hanni’s old line when people complained to him that he only hired his friends. His answer: Who am I going to hire, my enemies?

Unfortunately for the Democrats, Obama’s primary legacy is gerrymandered districts favoring Republicans all across the country. The statewide elections both parties definitely don’t want to lose are in the year of a census. In this case, the historic Republican sweep of state elections in 2010 will shape Congress for the next ten years, and help consolidate Republican power.

There is the usual pissing and moaning. The Democrats complain that we all need to work together for the good of the country. The Republicans retort that elections have consequences. Ironically, both parties were arguing the opposite points of view during the health care debate when the Democrats swept both houses of Congress, and along with a Democratic president, shoved an unpopular health care bill down the throat of an unsuspecting American public. The current Democratic redistricting debacle is a direct result of that sneaky Christmas Eve health care vote by the Democratic Senate. It’s not nice to fool the voting public.

Notwithstanding, it is what it is. The Republicans in Columbus have adjusted Ohio’s districts from 18 to 16 as a result of a stagnant population, and the Democrats are the big losers. Of the new congressional districts 10 are strongly Republican, 4 are strongly Democratic, and 2 are toss-ups but can be characterized as leaning Republican. If I lived in Akron, I would be furious. It was vivisected. God knows who represents whom in Summit County.

In this area, Tim Ryan’s 17th District is now the 13th District. District lines were expanded further into Summit County (Akron), Portage and Stark counties. It lost some of Trumbull County, but gained Boardman and Poland Village in Mahoning County.

The monster 6th District now goes all the way from New Middletown 315 some miles down along the Ohio river to the Southern-most tip of the tip of the state. There is major expansion to the west making it the largest geographic district in the state, and I suspect among the largest in the country. If anyone can figure out what New Middletown and Canfield have in common with Marietta, let me know!!! Nonetheless, there it is. Just so you know, within this monster 6th District, you can’t get there from here. You actually have to drive through West Virginia to reach the southern netherworld of the 6th district.

And to some extent this remodel of Ohio’s congressional districts has received “bi-partisan” support. Several Democratic members of Ohio’s House of Representatives voted to approve it because minority districts remained intact. At least 5 Republicans voted against it on principle opposing massive districts that cross the state like the Ohio 6th.

Next on the agenda is the redrawing of the Ohio state representative and senate districts. My understanding is the plan will be released sometime in October. Rumor has it Gerberry and Hagan’s districts will be combined leaving one of them out of a job. But I am not too worried. Both of these guys seem to have nine lives. No matter what…when they lose one government job, they always walk away with another.

The more things change, the more they stay the same!!!

Obama's Jobs Speech - Another Day Older and Deeper in Debt

Is anybody there? Does anybody care? These words taken from the musical 1776 most aptly describe President Obama’s long awaited job speech. As in all things Obama, his handlers tried to raise this speech to mystical heights by calling for a joint session of Congress. He ought to fire those guys. They scored the unassisted triple play against their boss.

1) The scheduling conflict with the Reagan Library Republican Debate was a political maneuver one too cute.

2) He had to talk fast to get the speech over before the NFL opener.

3) The news cycle was completely co-opted by a terrorist warning issued by Homeland Security simultaneously with the speech.

1-2-3 strikes… you’re out! What were his political advisers thinking?

At the end of the day, his speech contained nothing new. The Republicans demurred not offering a response. None was needed. Economics 101 says this will not work. All Obama is going to do is rob Peter to pay Paul…but then he did promise redistribution of wealth, didn’t he? This time next year we will be another year older and deeper in debt. Keynesian economics anticipates that stimulus is a temporary measure that will melt away in an economy in which the government has no permanent debt. Somebody forgot to tell that fine point of economics to the current administration.

In today's American, any stimulus to be successful has to come from unconventional sources that are not already in the economic bubble. For example, a massive relief of regulation to allow the energy industry to boom would generate billions of dollars of NEW revenue from NEW work and NEW private industry jobs. It also would allow money to stay in the country that is currently being converted into petro dollars as we import our oil. THAT would be something that would work.

Obama did have one idea I found appealing. He wants to prod lenders into allowing mortgage holders current with their mortgage to be allowed to refinance their current mortgage to a lower interest rate even if their house is “under water.” It wouldn’t reduce the amount of the mortgage, but simply allow borrowers to take advantage of the record low mortgage rates right now at about 3.75%. This would put hundreds of dollars a month into family coffers. THAT is stimulus not coming from the government, and one that would be helpful.

As for the rest…three years of unemployment insurance…really? And here we go again with shovel ready jobs. NOW he is touting those white blue collar construction jobs his last plan said we didn’t need any more of. I guess he blew that one.  But you know what?  With all of the new regulations, it will be years before most of those jobs get started.  Environmental impact statement, anyone?

In the last $800 billion stimulus package, less than 10% of the amount was actually earmarked for construction and hard asset projects…less than 10%. I haven’t seen the figures in the Son o’ Stimulus plan…$450 billion....but I understand that it is pretty much following the same configuration with much of the money allocated to state salaries. Here we go again.

True growth can be achieved through energy policy, calling off the EPA, putting a moratorium on Obamacare, quit promulgating regulations on everything from dust to salt, get off the union bandwagon and quit suing American companies and states, and dump the Keynesians!!! That's the ticket!

Unfortunately, to quote Michele Maklin, out ticket is on the Obama Express to bankruptcy. All Aboard!!!

Smothering America: 12 Reasons for Zero Job Growth

If you hold the pillow over the patient’s mouth long enough, sooner or later the patient is going to die. That’s what happened to the American economy. There is no doubt that President Obama inherited a mess. The financial collapse in September of 2008 was about as scary event as I have experienced. Obama makes claim that he “saved” the world from economic Armageddon, but the fact of the matter is the most draconian measures after the financial collapse were a bi-partisan solution orchestrated by the outgoing Bush administration and the incoming Obama administration. Credit or blame belongs to both.

But after he assumed office, as Obama continued to administer the bi-partisan medicine to a very sick U.S. economy, his ideology simultaneously acted as a smothering blanket preventing the patient’s own natural recuperative power from restoring it to health. Think A Charlie Brown Christmas as he tried to decorate the little tree… “I killed it!”

Starting with Obamacare which has a more than 50/50 chance of being declared unconstitutional, Obama implemented a MASSIVE regimen of regulation and income redistribution. The American people cannot comprehend the massive amount of regulation percolating just below the surface. The amount is so massive it is taking the government years to promulgate the regulations. Some of them are so draconian that by design they are not scheduled to be implemented until after the election.

The more moderate, and I use the term loosely, of Obama’s advisors have deserted the ship leaving him with an uber left wing cadre of people who agree with him and his leftist views. If he appears conflicted, he has yet to figure out how to make the American people understand that he knows best, as polls and politics drag him kicking and screaming to a more left of center position, even if just by an inch.

His speech to Congress on Thursday evening will be a combination of recycled ideas plus a lecture to Congress and the American people. It will appear shrill and defensive and accusative as he wags his finger. It will not sit well with an America that is tired of words. Slowly they have realized the truth of the mantra of right wing pundits… when it comes to Obama, look at what he does, not what he says. They are two different things. The business community looks at the former. The mainstream media looks at the latter.

Let’s look at what he has done to stifle job growth:

1) His supplicants at the NLRB sued Boeing for building a plant in a right to work state. Do you really think Boeing, one of the largest employers and exporters in the United States, will ever build another plant here again?

2) Boeing may not have to worry about it as Obama’s good buddy Jeff Imelt, chairman of General Electric, has just announced a partnership with the Chinese to compete with Boeing with planes built in China. As in all things Chinese, General Electric will be transferring proprietary technology to the Chinese. Don’t forget that GE has closed down a significant portion of its medical imagery plants and is moving them to China. This from Obama’s chairman of his Job Creation and Retention Council.

3) He sued Arizona and other states from enforcing border protections not only from illegal workers coming across the Mexican border, but from the violent drug cartels which for all intents and purposes control northern Mexico.

4) In the process, he has implemented regulations to protect both legal and illegal workers in the United States, with assurances that the illegal workers will not be deported if they report work rule violations.

5) He has announced a policy that in effect gives blanket amnesty to illegals, ordering that only illegals who are violent felons will be deported. The rest can stay.

7) He has ordered the EPA to implement the terms of Cap and Trade even though both houses of Congress have overwhelmingly voted not to implement it. Even his own party is opposed to this.

8) Speaking of going against Congressional votes, Congress voted to defeat "card check."  This would allow unions to unionize shops by getting the signatures of 51% of the employees (think intimidation if you say no) rather than by secret ballot.  Nobody says no to Obama, so he is attempting to do it through new regulations from this Department of Labor and the NLRB.  Nevermind what Congress said. 

9) He has sued the major banks relating to “fraud” in packaging all those bad loans that went belly up and then selling them to Freddie and Fannie. But that’s only ½ the story. It was Freddie and Fannie that told them to do this, EXPLICITLY, with the advice and consent of Congress, specifically Barney Frank and friends. If he thinks he will make political points with this one, he should think again. There is lots of blame to go around on this one…reference people who live in glass houses!! All this does is make getting a loan even more difficult than it now is.

10) Obamacare was a lie. Even members of the Democratic Party are admitting that the “you can keep the health care you got” promise is not quite true. That is why he has granted exemptions from compliance to all of his friends. You will get the shaft AFTER THE ELECTION. Of course, as in all things liberal, the lie was necessary to promote the greater good. Meanwhile, employers are left holding their rears as they try to figure out what is going to happen.

11) He has done everything in his power to discourage the development of the energy industry in the United States, demonizing just about everyone and everybody associated with it. At the end of the day, alternative fuels need to be developed, but it will be the market that will determine when that will be. If he would call off his dog…the EPA… energy development will prove to be the stimulus which will revive America to greatness.

12) Finally, last but not least, he has intruded into the farm industry with massive regulations now forbidding anyone from under 16 years of age from driving a tractor (ridiculous to those who farm) to the amount of dust a farm can kick up…HE IS REGULATING DUST ON FARMS.

The last one pretty much says it all. This doesn’t even begin to touch new regulations on the banking industry. The regulation on the restaurant industry by food police is staggering. It just never ends with Obama and friends.  Would you open a business with this type of government activity swirling around you?  Would you hire more workers under these circumstances?

And you want to know why there are no jobs. Mr. President, take the pillow off the face of America and allow us to breathe again.