There is an increasingly nasty battle brewing in the Republican race for the nomination to run against Democrat incumbent Tim Bishop in the First Congressional District in New York.  With jobs and the economy the number one issue across the nation, the petty personal attacks may result in potential Republican voters staying home in disgust.

In an excellent article in the Wall Street Journal titled, “New York’s GOP Never Learns,” Kim Strassel concludes her article by saying, “The effect has been to enrage and divide a New York party that should have bigger things on its mind. Say, winning this fall.” 

Chris Cox is trying to play catch-up to the front runner Randy Altschuler who has been actively campaigning for more than a year.  The difficulty for Mr. Cox is that his positions are not that different than those of Mr. Altschuler.  So, while Mr. Altschuler has been taking on the Democratic incumbent Tim Bishop and Bishop’s lockstep voting with Nancy Pelosi, Mr. Cox has resorted to attacking Mr. Altschuler.  Not to leave his flank unprotected, Mr. Altschuler has been forced to respond and now the race, with two weeks to go before the primary on September 14^th, has degenerated into a mudslinging contest.  There is a third candidate, George Demos, who is lobbing attacks from the rear with little effect.

Each candidate is calling themselves the “true conservative,” and Mr. Cox has garnered the support of the Suffolk County 9-12 Project the self-proclaimed “Largest Tea Party organization in Suffolk County.”  Mr. Cox’s father, Ed Cox, is the head of the New York State GOP.  Ms. Strassel reports that the senior Mr. Cox, backed Steve Levy over Rick Lazio for governor to curry favor with the Suffolk County GOP chairman to back his son.  It is all the kind of backroom political dealing that have attracted a rush of newcomer candidates and put incumbents of both parties on the endangered species list.

The Tea Party Endorsement

What caught my eye was the endorsement of the Suffolk County 9-12 Project and the announcement by Bob Meyer, co-founder.  He gave as one of his primary reasons that, Randy Altschuler was one of those people, “getting rich off the backs of hardworking Americans by outsourcing their jobs.”  That sounds more like Jimmy Hoffa, Andy Stern, or Barack Obama’s class warfare than any Tea Partier I know.  A commenter on the 9-12 Project’s site, Judyann Joyner added, “Randy is credited with the creation of ‘white collar sweatshops in India.’”  Pretty strong stuff.  I don’t know if Ms. Joyner or Mr. Meyer visited the company that Mr. Altschuler co-founded in India, but Business Week magazine did.

“The lights burn day and night in the gleaming glass-and-chrome building that towers over a leafy street in the southern Indian city of Madras. Here at OfficeTiger, 1,500 young men and women peer into computers 24 hours a day, analyzing and processing U.S. Securities & Exchange Commission reports and other documents drawn up by lawyers and bankers on Wall Street. Walking the floor, sometimes even at 3 a.m., is 34-year-old co-founder and co-Chief Executive Joseph Sigelman.”

Just because the office operates 24 hours per day, don’t been conned into thinking the same people are at their desks 24 hours a day.  “Gleaming glass-and-chrome building that towers over a leafy street,” yup, sounds like a hellhole to me.  Business Week added, “Indeed, OfficeTiger is the only successful startup in India’s $5 billion outsourcing industry that is owned and managed by a U.S. entrepreneur.”  So we have an American company making money in India, in what seems to be a rather large and competitive field, and this is a bad thing?  Since when did conservatives turn into protectionists?  But what about the jobs they replaced?  Okay, let’s examine that. 

You have some Wall Street firms that are in a competitive business.  A young entrepreneur comes up with an idea to reduce operating expenses by having an external company handle routine clerical tasks that are not one of the firm’s key competencies, that is, people don’t buy that firm’s services because of their typing skills.  The company outsources and reduces costs.  By reducing costs, they prosper and grow; by growing they create more high skill jobs like lawyers, accountants, financial analysts, IT people, etc.  Perhaps even some of the former typists, because of their computer skills can move of the ladder to spreadsheets, and databases.  Do some people lose their jobs, yes, just as buggy whip makers lost their jobs when the automobile came on the scene.  Okay, let’s shift to India.

In India white collar jobs are created; their standard of living improves; they buy consumer goods like iPods and iPhones and their offices need sophisticated IT equipment from companies like Cisco Systems which grow companies like Apple and Cisco creating jobs in the U.S. We live in a global economy and if we want prosperity and peace, the best way to get there is through free markets.  Even Mr. Cox in the policy section of his website blames government policies for companies outsourcing jobs overseas.  If it is the government’s policies that make these jobs uncompetitive here and Mr. Cox knows it, why is Mr. Altschuler wrong for reacting to it and helping American companies that use these services remain competitive?

After selling Office Tiger to RR Donnelly, Mr. Altschuler started another company in the U.S., CloudBlue, that recycles old IT equipment.  So we have an entrepreneur that has started a couple of companies that have created jobs around the world and that makes him a villain?  Perhaps Mr. Meyer should go back and read some of the quotes on his own website:

“You cannot legislate the poor into freedom by legislating the wealthy out of freedom.” – Dr. Adrian Rogers

“I have a right to life, liberty, and the pursuit of happiness.” – Thomas Jefferson

Mr. Meyer’s key criticism of Mr. Altschuler smacks of the government picking winners and losers.  This business is okay, but not that one.  If your business creates jobs overseas that is bad, but if it creates jobs here it is okay.  Well, Mr. Altschuler has done both and he has firsthand experience doing so, which is what we sorely lack in Washington.  If the strategy of Mr. Cox continues, including creating another party, the TaxPayer party, to run on and split the vote further, Mr. Cox might as well mail his strategy over to the Bishop campaign as I am sure they will find it very useful in the general election.  Not my cup of tea.

The focus should be on defeating the out of control spenders in Congress who got us into this mess, not fighting each other to the death and let the incumbent waltz back into office.  The time is now.  Mr. Cox should focus on what he would do as a Congressman that is better than Tim Bishop and Mr. Altschuler.  If he can’t articulate that, he should drop out.  He is not going to win a lot of support by throwing mud at his fellow Republicans.

Note: In the spirit of full disclosure I have done some volunteer work for the Altschuler campaign

In today’s New York Times there is a story about Rick Lazio latching on to the Ground Zero mosque issue as his new campaign theme.  The first television ads I have seen regarding his run for governor are about this issue.  He is strongly opposed.  Okay, but he wants us to  elect him governor to do what, exactly?  New York has a lot of problems, from a state government that is completely dysfunctional to being broke and since everyone seems to agree that the mosque at Ground Zero is not about the right to build there but about the propriety of building there, what does it have to do with the office of governor?

When he pinch hit for Rudy Giuliani running for the senate against Hillary Clinton, after Mr. Giuliani dropped out of the race with prostate cancer, Mr. Lazio took a similar tack.  You probably remember their first debate when Mr. Lazio famously walked across the stage to a startled Mrs. Clinton and asked her to sign his pledge on campaign finance reform.  She refused and that was his theme.  The problem is that although many people feel our political process is corrupt, when it comes to campaign finance reform, most people don’t care about it.  Those who care about it are incumbents, who want to cripple those who run against them.  Some of the so called “reforms” have politicians spending so much time chasing $50 donations that they can’t do what they were elected to do.  Either that or we can only run multi-millionaire candidates who can spend their own money without limits.  (Simple solution: let anyone contribute any amount to any campaign at any time and just post the information on the Internet within 72 hours in a database that is fully searchable. Done.)  It only took a little time for the novelty of the debate video to fade and Mr. Lazio had no campaign.

Another challenger in this year’s governor’s race, Carl Paladino, one of the aforementioned millionaires, has been hitting the airwaves more frequently and more effectively than Mr. Lazio.  He is not a one trick pony.  His first ads hit Andrew Cuomo on being a career politician and that he, Paladino, was a business man who knows how to create jobs.  What do we desperately need now?  Jobs.  What are we sick of? Career politicians, like Mr. Cuomo, who played a role as HUD Secretary in the Clinton administration of feeding the real estate frenzy and the subsequent housing collapse that created the financial crisis.

On the mosque situation, agree or disagree with him but Mr. Paladino says exactly what he will do about it.  He will take the property away under Eminent Domain (thanks to the activist judges on the Supreme Court who gave us Kelo v. City of New London) and use the property to create a war memorial.  He doesn’t just say he will oppose it he tells us what he will do about it.

In the interest of full disclosure, I contributed to Rick Lazio’s senate run in 2000 and I have no connection with the Paladino campaign.  But if Mr. Lazio is serious about defeating Andrew Cuomo for governor, he has to find some issues that not only resonate with the people of New York but that are the responsibility of the governor to address.  If not, rather than split the conservative vote, he should step aside and help ride the anti-incumbent wave that Carl Paladino is surfing.

St. Nicholas Greek Orthodox Church stood in the shadows of the World Trade Center until September 11, 2001.  It was destroyed when one of the towers fell on it.  For nine long years the congregation has been trying to rebuild the church but has been stonewalled by government officials.  In 2008 a deal was struck with the Port Authority where the Port Authority would provide land and $20 million to rebuild the church, but the deal appears to be dead.  According to the Port Authority:

 “the church was making additional demands — like wanting the $20 million up front and wanting to review plans for the surrounding area. They say the church can still proceed on its own if it wishes.

“’The church continues to have the right to rebuild at their original site, and we will pay fair market value for the underground space beneath that building,’ a spokesperson with the Port Authority told Fox News.”

The church sees it differently:

“But Karloutsos [assistant to the Archbishop] called the Port Authority’s claims ‘propaganda’ and said the church has complied with all conditions. He said the government should honor agreements that date back to 2004, under former New York Gov. George Pataki.

“Pataki, speaking with Fox News on Tuesday, agreed that the church should be rebuilt.

“’I don’t understand it,’ Pataki said. ‘Why the Port Authority now has so far put roadblocks in the way of its reconstruction is beyond me. It’s not the right thing to do.’”

Contrast this nine year marathon to the sprint that the mosque at Ground Zero is running.  The proponents are waving the flag of religious freedom, but is that the real flag?  Or is it a triumph of the radicals who knocked down the World Trade Center and now want to plant their victory flag in its place?  Consider the following:

1. It is called the Cordoba Initiative.  Historically speaking Cordoba was the high point of Islamic advance in Europe in the Middle Ages.  They built their grand mosque on the foundation of a cathedral.  If nothing else it’s an interesting choice of names.
2. The Imam behind the project said, only days after 9/11, that the US was an accessory in the attack and that Osama bin Laden was “made in the USA”
3. Who is funding the project?  If this is to build bridges between Muslims and non-Muslims in America, why isn’t being funded by all the moderate Muslims in America?  It is believed that money is coming from Saudi Arabia and Iran.  Why is that necessary?

The primary objection to the mosque is not that they don’t have a right to build it but that in building it so close to Ground Zero that it is incredibly insensitive.  How do you begin to build bridges by sticking your thumb in the eye of the people you are trying to win over?  It seems to suggest other motives.  Remembering the glee around the Middle East immediately following 9/11, I can imagine a similar celebration upon the completion of a mosque at Ground Zero.  If that is their real motive and it gets built, it will forever be a stake piercing the hearts of the families of those who died.

Republicans have to learn to stop fighting by the Marquis of Queensbury rules, while Democrats, bite, kick, pull hair, scratch and hit below the belt.  Yes, Christ told us to turn the other cheek, but he also overturned tables, formed a whip out of cords and drove the money changers from the temple.  In other words, sometimes you have the hit the bully hard between the eyes before he learns to stop being a bully.

So if the Republicans regain control of Congress in November, they should open the new Congress in January with detailed hearings on what happened to Fannie Mae and Freddie Mac and don’t pull any punches.  By that I mean if they need to put Andrew Cuomo in the witness chair, even if he is the governor of New York, which he probably will be, then they should do so.  It’s time to stop playing patty-cake.

For all the hoopla of the Dodd-Frank Act, Fannie Mae and Freddie Mac were left out of the new regulations.  Oh, we’ll get to those later.  Okay, let’s get to them with the Republicans in charge.  Let’s expose how it was our government that got us into the housing mess and let’s do this before the Democrats re-write history and paper over their culpability in the greatest financial crisis since the Great Depression.  It’s time to put the big lie to “it’s all Bush’s fault and Republican policies.”

The papering over has already started by none other than Franklin Raines the former head of Fannie Mae who received bonuses of over $90 million while at the helm of Fannie Mae and was also charged with cooking the books that helped him receive those bonuses.  He reached a settlement with the SEC and gave back about $1.8 million from the profits in the sale of Fannie Mae stock and gave up $5.3 million in future benefits related to his pension.  But he essentially kept the rest, what the Wall Street Journal called a “paltry settlement.” 

Mr. Raines claims the demise of Fannie Mae and Freddie Mac, to which taxpayers have already coughed up $145 billion, was due to bad credit decisions made after he left the firm.  To put it in his own words:

 “The Journal had been warning for years that the on-balance sheet portfolios of Fannie and Freddie would lead to their demise. Mr. Carney suggests that excessive leverage was the culprit. Unfortunately, neither of these were involved. Nope. Just bad credit judgments. Decisions made, by the way, while operating under close regulatory scrutiny.”

According to the Wall Street Journal “What he doesn’t say is that Fan and Fred had a political and legal mandate to support low-income housing.”  To meet this mandate which had increasing goals each year, Fannie and Freddie had to cast a wider net to find these borrowers and the wider they cast the net the lower their standards had to be.  Thus more creative types of mortgages were created to lower the bar such as, interest only loans.  This scheme would continue to work as long as housing prices kept rising but that could not go on forever.  When the music stopped a lot of people were left standing without chairs and we all lost.  People’s credit ratings were destroyed, mortgage securities were worth far less than face value, people walked away from houses, and taxpayers were forced to pick up another “too big to fail” enterprise.  By the way, where in the Constitution does it authorize the federal government to get involved in helping people buy houses?

The secret veil put in place by the main stream media has been lifted.  With the Internet and the bloggers and cable television and talk radio, the main stream media can no longer keep information that does not comport with their agenda hidden from the American people.  The American people are energized and informed but that may not last long after the election, if we don’t continue to engage them.  Uncovering the true “swamp” that is our federal government and draining it should begin by letting the sun shine in.  So let’s do away with the good ol’ boy politics of not rocking the boat when you gain control so that they won’t rock the boat when they get it back.  If we don’t have a new class of non-incumbents who are willing to go to Washington and clean it up, really clean it up, we need to get rid of them and put new people in their place.  If that means replacing Republicans with better Republicans or Democrat incumbents with better Democrats, so be it.  We have to end the process of only being able to choose between two pathetic life time politicians who have never lived in the real world.

Two disparate news items this weekend got me thinking.  The main stream media is all abuzz with Chelsea Clinton’s wedding, even to the point of throwing the term royalty around.  It is estimated that the wedding will cost $3-$5 million, although Sally Quinn of the Washington post puts the bill at closer to $1 million.  The comparison was then made to the cost of Jenna Bush’s wedding, a mere $100,000.  This became fodder for The Joy Behar Show.  Comedian Judy Gold leaped at the opportunity to take a shot at Bush, “Yeah, well, if he could have found a way for us to pay for Jenna`s wedding, he would have done that, okay, he likes to spend other people`s money.”  An interesting perspective on other people’s money that I will return to later.

The other news items was an article in The New York Times, by Bob Herbert titled “A Sin and a Shame,” lamenting that corporations are hording cash and not hiring people and it is all so unfair, in fact, sinful.  This is while this government is spending huge amounts of money that someone will have to pay back, massive new programs like ObamaCare that we are still uncovering what that will cost, and enormous tax increases about to kick in on January 1 when the Bush tax cuts expire.  Perhaps they are hording cash for a reason?  Perhaps they are not hiring because they don’t know what any new employees will cost under these new programs, or for that matter what their existing employees are going to cost?  Perhaps it is because the latest economic reports show GDP shrinking and if that continues why would you start hiring if your business is going to slow down with the rest of the economy?

We have two very divergent views of the economy today.  One view is held by those who actually work in the private economy and the other view is held by those in the ivory towers of government, which brings me back to the weddings.  I really don’t care what the Clintons or the Bushes spend on their daughter’s weddings.  It’s their money.  But perhaps it is instructive to look at where that money came from.

George Herbert Walker Bush, Jenna’s grandfather, was born into a successful family.  His father was a banker and a Senator.  But after getting out of the Army after WWII he went to Yale and upon graduation, moved away from that family and settled in Texas to start an oil company.  He went into private business and put his own money at risk.  What that means, to those who never took that chance, is you may be successful and make a lot of money, you may be successful and make a little money, you may fail and lose your money.  Chances are greater that you will lose than win, but that is the American Dream.  If you lose, you have to start over by trying to earn and save up what you lost to try again, if you have the guts and drive.  Bush succeeded in forming Bush-Overby and later with Zapata Petroleum.  He became President of Zapata for ten years and then Chairman for another two, before going into politics.  By then he was a millionaire in his own right.

George Walker Bush, Jenna’s dad, attended public school in Midland, Texas, where his parents had settled.  He went to private school after the family moved to Houston.  He later attended Yale University and became the only president to get an MBA which he did, from Harvard.  Like his father, he went into the oil business starting several independent oil exploration companies.  He later bought a stake in the Texas Rangers baseball team for $800,000 and was instrumental in building the team’s attendance.  He later sold his stake for $15 million.  Then he went into politics.

The two Bushes know risk, know about taking chances and became millionaires on their own before going into politics.  They also learned lessons about spending money and doing so prudently. 

Bill Clinton went into politics almost immediately after getting his law degree.  He was Attorney General and then Governor of Arkansas.  As governor he had a governor’s mansion.  He ran for president and upon winning traded in his governor’s mansion for the Executive Mansion, aka the White House.  He had been on the government payroll and living in government provided housing almost his entire working life.  The sweat of the people in who paid their taxes paid him.  After leaving office, Mr. Clinton was able to write books about his experience and make speeches commanding six figures a pop.  His wife did pretty much the same.  They lived off the people and ended up very rich.  They didn’t create a product or service, they didn’t create jobs, and they didn’t meet a payroll. 

I can hear the screams from the left right now, “What do you mean he didn’t create a job or meet a payroll?”  Try this test.  If Bill Clinton’s opponent was elected rather than Bill Clinton, would there still be a government payroll and government jobs?  If yes, Bill Clinton didn’t create them.  If either of the Bushes didn’t create their companies would there be jobs at those companies or payrolls?  No.

What about some other famous politicians who tell us what to do?  Let’s look at Al Gore.  Here is another individual that spent the bulk of his career in government.  He was a member of Congress, a United States Senator, Vice President and presidential candidate.  Today he is very rich.  It is said he may become the first “green billionaire”.  If he went into his current endeavors before a life in government, would the story be the same?  Or is it because of his name, reputation, and connections that he made at the public trough, that he is wallowing in riches, and telling the rest of us to reduce our carbon footprint while his mansions consume ten times the energy of his neighbors?

Charlie Rangel spent most of his life in government.  He rose through the ranks and now has a waterfront condominium in the Dominican Republic, writes the tax laws but does not observe them, and is a wealthy man.  Conservatives don’t believe in rent control or rent stabilized apartments, but Charlie does.  After all, how can poor and middle income people afford to live in places like Manhattan if greedy landlords have their way.  So Charlie Rangel who makes $174,000 per year, plus his chairmanship pay, has not one, not two, not three, but four rent controlled apartments.  Is he poor or middle class?  No, he is the political class.  He took three adjoining rent controlled apartments and had them joined together, while the fourth apartment served, illegally, as his campaign headquarters.  What about the poor and blue collar workers who could live in Manhattan if three of your four rent controlled apartments weren’t being horded by you?  Let them eat cake.

John Kerry is in the news for trying to avoid $500,000 in taxes on his new yacht.  Here is another individual who spent his entire working life in government.  He can tell the rest of us to pay more taxes while he garners favors spending our money. He is the richest man in the Senate but with prenuptial agreements with his wife he only lists personal assets of between $400,000 and $1.8 million and joint assets with his wife of $300,000 – $600,000.  So how does he buy a $7 million yacht?  I am not suggesting anything nefarious, it’s obvious his wife paid for it, but do you think he is in touch with someone trying to make a payroll in the private sector?  You pay taxes; John Kerry has advisors to figure out how to avoid them.

So those evil corporations started by those evil men like George Herbert Walker Bush and George Walker Bush, know the value of a dollar.  They know we are not out of the woods yet and so to protect the jobs that their companies still have they are not hiring but are building their rainy day funds.  Perhaps Bob Herbert should ask why his employer is shedding jobs left and right.  Perhaps this is his safe way of doing so, but on the other hand the New York Times is hardly hording cash.  Its circulation is crashing because people like Bob Herbert are so out of touch with the rest of America; no one wants to read his rants any longer.

So perhaps Bill Clinton spends millions on Chelsea’s wedding because he didn’t learn the value of a dollar.  He lived of the government for many years and then just held out a basket and it was miraculously filled with more money than he can count.  George Bush spent $100,000 on a wedding because he knows how hard it is to earn a dollar.  What we need is less of the political class telling us what to do, and then handing us the bill and more entrepreneurial Americans who risk their own money, watch it like hawks, create jobs and generate wealth that they then reinvest in America.

Best wishes to Chelsea and Marc.

Not surprisingly, we hear the administration telling us how they have been in charge since day one regarding the BP oil gusher.  But as I have often said before, if there is a major problem in America look for government to be right in the thick of it and this is no exception.

Statists like to blame the free market for such problems and that more government is the answer.  You will also hear them mistakenly say that conservatives don’t want any government involvement in the marketplace.  Conservatives believe in government, albeit limited government, but we also expect that the government that is in place do its job.  There was plenty of regulation in the BP case, perhaps too much government in that there was no one clear responsible agency but an overlapping mess.  When it comes to regulation I like to use the sports analogy of a baseball umpire.  Congress writes the rulebook and the executive branch is the umpire that makes sure the rules are followed.  If the umpire is looking at an attractive girl in the stands instead of the play on the field, he is apt to blow the call.  Blown calls seemed to be a way of life in the BP case. 

Deepwater exploration progressed faster than the regulations could keep up with the technology, and government was providing incentives to accelerate that exploration.  So there we have our first example of the government acting in a push-me, pull-you fashion, that is, incentives to explore but lacking regulations to make sure it is done safely and orderly.  Rather than looking at deep water drilling where the physics are different as a different animal needing a comprehensive review of the regulations, the regulations were piecemeal approvals of shallow water regulations. 

When BP first looked at drilling in this area they requested from the federal regulators an exemption from a rigorous environmental review.  That exemption was granted.  They also used riskier equipment that deviated from their own company safety policies.  Regulators also approved testing the blowout preventer at a pressure that was lower than federally required.  When BP wanted to delay mandatory testing of the blowout preventer when they lost “well control” in the weeks before the rig exploded, again the regulators granted the delay.

One federal agency, the Minerals Management Service, is in the dual role of both promoting drilling and regulating it.  They both collect royalty payments and issue fines for violations.  Do you think there may be a conflict here?  Is this the most effective form of government?  Here is a core beef of mine and of other conservatives.  The free market should provide the incentives for off shore drilling.  Either it is worth doing from a business standpoint or it is not.  The government’s role should be in the regulation.  When government wades into the middle trying to work both sides, it is doomed to fail.

There are multiple agencies that all have responsibility for regulation in this area in addition to the Minerals Management Service including, the Environmental Protection Agency, the Coast Guard, and the National Oceanographic and Atmospheric Administration.  Where there are gaps in regulation, whose responsibility is it to plug the gap?  When there is overlap, whose regulations controls? 

The Minerals Management Service approved BP’s drilling plan that projected a “worst case” blowout as producing 250,000 barrels per day of escaping oil.  However, the agency did not require BP to develop a contingency plan on how they would deal with such an occurrence.  The agency also did not require companies to have a backup systems to trigger in the event a blowout preventer failed.

There were early indications of problems with the well but federal regulators approved proceeding with the drilling rather than order it be halted until the issues were addressed.

So once this disaster spun out of control how did our government respond?  Based on laws written after the Exxon Valdez spill the government and BP were supposed to cooperate.  How did the administration show their cooperation?  They said they were going to keep their “boot on the neck of BP.”  Do you feel inspired to cooperate with someone who tells the world they will keep their boot on your neck, or do you start looking for ways to protect yourself?  Instead of concentrating on giving BP whatever assistance it needs to cap the well and focusing on containing the spread of oil, the administration sends in lawyers to start a criminal investigation.  Can’t that wait until the well is capped?  Why divert attention from the problem and have BP start losing focus on the well and more on assembling a legal team?

When governor Bobby Jindal of Louisiana wanted to build a sand barrier to stop the oil from reaching the wetlands in his state, he was told to wait while our federal government dithered for three weeks haggling among the White House, Coast Guard, Army Corps of Engineers, Fish and Wildlife Service, National Oceanic and Atmospheric Administration, and Environmental Protection Agency over the best approach.  If this administration, as they have claimed, has been in charge since day one and all of these agencies fall under the administration, why couldn’t this be hashed out in a day or two?  They finally approved one barrier rather than the 23 that were requested but eventually allowed more.  For an in depth story see New York Times

For the last year and a half we have been told we don’t have enough government running our lives and telling us what to do.  Yet here is a classic case of government regulator piled on top of regulator, and regulators trying to promote and control businesses at the same time.  We have regulators granting waiver after waiver of regulations that ultimately led to disaster and our administration instead of stepping up and taking responsibility is trying to look like they are in charge while at the same time blaming everyone else, yes even Bush, for what happened.  The head of the Materials Management Service resigned and President Obama says he learned about it afterwards.  Interior Secretary Salazar said she resigned on her own volition and that she wasn’t fired.  Why not?  For all the exemptions and waivers that were granted by the government that could have prevented the worst environmental disaster in history, this administration doesn’t think anyone other than BP should be responsible.

So we are supposed to let this administration grow government and control more of our lives when they can’t take responsibility for what is already under their control.  But don’t look for a serious investigation of government’s responsibility unless a large number of incumbents are flushed out of Congress and replaced by new members who actually represent the people.

Yesterday, at a joint session of Congress, Filipe Calderon the President of Mexico addressed the joint body.  In his address he openly criticized the new immigration law recently passed in Arizona.  This law was passed by a duly elected legislature in Arizona and signed by the governor.  To their great disgrace most, if not all, Democrats as well as President Obama’s cabinet members gave the Mexican president a standing ovation.  These Members of Congress took an oath to support and defend the Constitution of the United States against all enemies foreign and domestic.  Are these Members of Congress going to now claim, well… Mexico is a friend, not an enemy so we can actually help them wipe their feet on the Constitution?

An analysis done by Megyn Kelly, an anchor on Fox News and an attorney, compared federal law and Supreme Court decisions to the new Arizona law. She found that current federal law is tougher than what was recently passed in Arizona.  Under federal law, police can stop anyone for any reason or no reason and ask them for their immigration status.  In Arizona, a police officer can only ask immigration status if, while in the course of stopping the individual for another reason and they suspect the individual may be in the country illegally, for example, if they don’t have a valid driver’s license.  If they can produce a valid driver’s license, the inquiry is over.

So let’s recap.  Existing federal law is tougher than the recently passed Arizona law regarding asking an individual for proof they are here legally.  The federal government is AWOL on enforcing immigration law.  Arizona acted where the federal government failed.  Attorney General Eric Holder calls the Arizona law discriminatory and a potential law suit target, but without actually reading the law.  It is also clear, he does not know the federal laws he has sworn to uphold.  Janet Napolitano also has not read the law and she has a sworn duty to secure the homeland.  She also does not know the federal laws in place that she should be enforcing.  Both of these individuals along with most, if not all, Democrats in Congress give a standing ovation to a foreign head of state who criticizes a properly passed state law.  The whole lot of them are a disgrace to this country and should be booted out of office at the first opportunity.

I was watching Mike Huckabee’s show this weekend when a curious exchange took place.  Governor Huckabee tried to be fair to President Obama by saying “I believe in his heart that President Obama believes he is doing what is best for the country.”  The governor is not alone among those who oppose President Obama who graciously say this.  Perhaps it is a preemptive strike to avoid being tarred as a racist.  At the same time, however, they will say they think President Obama is a smart man.  How do you reconcile those two positions?

 Either the man is an idiot and he is stumbling toward socialism without realizing it, or he is an intelligent man who is taking the country to socialism by design.  I don’t see a middle ground.  The only possibility is that he is a man with an arrogance so breathtaking in scope, that he ignores the will of the people and is implementing programs and policies that he believes is better for the unintelligent masses, and mistakenly thinks it is still capitalism.  I can’t square the man’s intelligence, which I believe he has, with him not knowing the difference between capitalism and socialism/Marxism.

 Okay, so what prompted this train of thought?  It was prompted by some little know activity south of the border and I don’t mean Mexico.  Earlier in his term, President Obama, Secretary Clinton and others tried to help return a Hugo Chavez puppet to the presidency in Honduras.  Manuel Zalaya was following tactics of Chavez and Castro, to remain in office beyond his term which is limited.  By doing so, he was immediately in violation of Honduran law and their constitution.  He was removed by order of the Honduran Supreme Court with the backing of the Honduran legislature.  The only step they might have taken which was too far was they put him on a plane out of the country.

 Chavez, Castro, et al, were outraged.  Did the Obama administration come down on the side of democracy and democratic institutions? No, they tried to strong arm Honduras to put Zalaya back in office, by cancelling visas, affecting trade and other measures.  Honduras proceeded, ignoring these threats, to hold a general election to peacefully choose a new president which they did.  The United States has reluctantly agreed to recognize the new president, but it was not easy for small Honduras to stand up to the United States and based on what they were fighting for and they shouldn’t have had to.

 What other signs do I find troubling?  After going against the will of the American people in forcing through ObamaCare, Fidel Castro heaped praise upon Obama for the law’s passage only criticizing him for taking so long.  In April of 2009, President Obama embraced Hugh Chavez.  Today Hugo Chavez is in the process of shutting down the last television outlet that is critical of him while forming closer ties to Ahmadinejad of Iran.

 In Ecuador, President Rafael Correa is following the Chavez model.  He is also chummy with Iran, is constantly threatening the free press, and the economy is in shambles.  He fired congressmen who disagreed with him and replaced them with others who saw things his way.  When the constitutional court said the fired congressmen had to be reinstated, Correa took to the airwaves to declare he was ignoring the court’s decision.  Shortly thereafter an angry mob marched on the court, the police who are supposed to protect them stood aside.  Do we have a statement of concern from the White House regarding this trampling of democracy?  No, we have the State Department’s Assistant Secretary for Western Hemisphere Affairs, Arturo Valenzuela, calling on President Correa.  According to the Wall Street Journal’s Mary Anastasia O’Grady:

 During Tuesday’s meeting before television cameras, Mr. Valenzuela expressed concern about Iran’s nuclear ambitions and its budding relationship with Ecuador. According to Reuters, Mr. Correa told him: “We don’t want to get involved in that discussion. But what does it have to do with selling bananas to Iran or with Iran financing our hydroelectric plants?” Translation: Ahmadinejad is my friend. You butt out.

 The U.S. response? Mr. Valenzuela would not rule out a meeting between Mr. Correa and Barack Obama. If that happens, prepare for a redux of the Obama embrace of Hugo Chávez in Port of Spain, Trinidad, in April 2009—more humiliation for Americans who used to think of their government as a noble defender of liberty against despots.

 Creeping Socialism

Obama has given government control over one-sixth of the U.S. economy with the implementation of ObamaCare.  He has nationalized two automobile companies.  He has nationalized the student loan program.  Unions, for the first time, have more members in the government than the private sector, but President Obama wants to increase their numbers in the private sector as well with Card Check.  Who are the unions beholding to and vice versa?  The Democratic Party.  With more union members to do his bidding where does the average citizen stand?  In a July speech President Obama said the following:

 ”We cannot continue to rely on our military in order to achieve the national security objectives that we’ve set. We’ve got to have a civilian national security force that’s just as powerful, just as strong, just as well-funded.” (emphasis added)

 If this doesn’t send chills up your spine conjuring up dark images from the 1930s, you need to put down the Playstation and pick up a newspaper or a book.  Consider that when he graduated from Columbia he became a follower of Saul Alinsky, a Marxist community organizer.  Barack Obama did not cut his teeth by starting a small business.  He cut his teeth learning how to take down capitalism using Alinsky’s Rules for Radicals.  As he gets chummy with America’s enemies, he gives the back of his hand to our allies: Israel, Great Britain, Poland,and the Czech Republic.  Do you still believe this is a coincidence Governor Huckabee?

“We have to pass the bill so that you can find out what is in it” – Nancy Pelosi 

The White House claimed, incredibly, that most Americans support ObamaCare.

“If you take the last 12 independent polls, and you throw out four by Rasmussen, whose results the White House doesn’t like, and you throw out six others that show a wide margin of opposition, then you have two polls with results consistent with the Washington Post poll showing a fairly small margin of opposition to the Democrats’ national health care plan. And that is Benenson’s case. By the way, the headline of his article? “Most Americans want health care reform.”  – Byron York, National Examiner

Governor Ed Rendell of Pennsylvania, gushed on Fox News last night, about how ObamaCare was good for Pennsylvania.  Why?  Well, he said, today Pennsylvania is only reimbursed 50% for Medicare while under ObamaCare Pennsylvania will be reimbursed 90%.  Very cool.  Er, who’s picking up the tab for that extra 40%?  That question goes to the heart of the Liberal/Progressive movement which is basically you are too damn stupid to recognize a shell game when you see one.

Unless the plan is to have ObamaCare paid for with the profits from GM and Chrysler, the only thing the government does for a profit, it is all a giant shell game.  The giddy governor of Pennsylvania knows that this is a shell game and that extra 40% will either come out of Pennsylvanians federal tax pocket instead of their state tax pocket or it will be subsidized by citizens in other states through their taxes.  Oh wait, no, there is always those evil drug and medical device companies to tax.  But where do they get their money?  That’s right taxes are built into the price of their products, so expect drugs and medical devices to cost more.

The Evil Health Insurance Company Myth

Obama & Co. jumped all over a 39% premium increase by Anthem Blue Cross in California as Exhibit A justifying their takeover of the health care industry.  This is not going to be fixed with ObamaCare but only made worse.  An example is given by a doctor who says for the last seven years he has been reimbursed $50 for an office visit under Medicare.  In that time his expenses have risen 30%. (Quick check — if the good doctor gives his staff a 4% raise each year for 7 years that comes out, compounded, to about 30%).  Under ObamaCare they are proposing a 21% reduction in Medicare reimbursement, so the doctor will now get a $40 reimbursement for an office visit.  The doctor can do one of two things.  He can stop seeing Medicare patients, or he can charge his other patients more to make up the difference.  If he chooses the latter course of action, then private insurance companies, like Anthem, will have to pay for the increase.  How do they recover their costs?  That’s right by increasing premiums.

Just like you never hear statists blaming government polices of HUD, Fannie Mae, and Freddie Mac for the housing bubble that triggered the financial crisis and recession (it was all those greedy, evil bankers), you won’t hear them mention their policies regarding Medicare as triggering the premium increases.  It was all about greed.  So government will need to step in and make sure those greedy insurance companies cannot increase prices like they have.  So expenses rise, premiums are capped, insurance companies fold, and voila you have a public option, which becomes the only option.  Next to keep expenses from rising, health care will have to be rationed because there are no market mechanisms in ObamaCare to actually reduce costs.  No tort reform.  No elimination of 3rd party payers.  No true insurance that protects against catastrophic costs while you pay for the routine, like all other insurance.  Just government fiat.  Obama can no more order health care costs to decline than he can turn off gravity. 

News flash to people around the world living under socialized medicine who travel to the United States for critical care when they need it, that door will soon be closed.

Who Is Really Stupid?

Statists believe the average American is too stupid to make decisions, or should I say the right decisions, about their lives, health, safety, etc.  We need the really, really smart people in government to tell us what is good for us and follow their instructions.  Or…in November we can send them the message that they were really, really stupid to ignore what the American people were screaming at them, STOP!!!! If Jefferson, Madison, Washington, Adams, Hamilton, et al, thought Americans were smart enough to look out for their own best interests, who are Pelosi, Reid, Waxman, Boxer, Rangel, Schumer, Dodd, et al, to say otherwise?

The US Postal Service is contemplating increasing postage rates and eliminating Saturday delivery.  Really?  They lost approximately $4 billion last year.  But don’t worry the CEO got a bonus.  It is reported that their labor costs, heavily unionized, exceed 80% of revenues.  Did you know that the only place where unionization is growing is in the public sector?  Union representation in the public sector surpassed the private sector for the first time this year.

But don’t worry, President Obama has a handle on it.  He appointed Andy Stern, president of the Service Employees International Union to the board to figure out how to reduce the deficit.  Do you see a problem between these two news items?  Can you see a problem with the objectives of an Andy Stern and you and me?

As a side note, Rick Perry just won the Republican primary for governor of Texas and in his campaign he used no yard signs, no phone banks, and no direct mail.  As one commentator said “paper is dead.”

I know this is completely anecdotal, but my local post office just completed an expansion project increasing the size of the building.  I have noticed more than one post office being expanded as well.  Again, this is just my limited, personal observation, not a scientific study, but with the drop in mail volume, “paper is dead”, $4 billion in losses, performance bonuses for lackluster performance, heavy unionization, am I being unreasonable in thinking the government couldn’t handle health care even if it was a good idea?