Browsing the archives for the Obama administration tag.

An Historic Event by Any Standard

Bias, Education, Liberty, Media, Obama, Politics, Race

To say today’s “Restoring Honor” event in Washington will be historic is an understatement.  Gauging by the biased reporting on the news pages of the New York Times and the seething, sputtering outrage from Bob Herbert and Charles Blow on the Op-Ed pages should give you a pretty good indication of the focus this event will garner.

Kate Zernike opens her report, titled “Where Dr. King Stood, Tea Party Claims His Mantle”, saying it is the ultimate “thumb in the eye” to stand on the anniversary of Dr. Martin Luther King’s “I Have a Dream Speech” in the place he stood and talk about restoring honor.  How dare he?  Isn’t that what racists said of Dr. King when he stood in front of the Lincoln Memorial with these words?

“Five score years ago, a great American, in whose symbolic shadow we stand today, signed the Emancipation Proclamation. This momentous decree came as a great beacon light of hope to millions of Negro slaves who had been seared in the flames of withering injustice. It came as a joyous daybreak to end the long night of their captivity.”

 

Ms. Zernike reminds us of the case of Shirley Sherrod, who was fired by the Obama administration when a videotape of her redemptive speech about how she first discriminated against a white farmer but later helped him was shown across the Internet.  She writes about video tape being heavily edited by failing to show how she mended her ways and helped that farmer.  But Ms. Zernike doesn’t finish the story where later in her speech Ms. Sherrod says that those who opposed Obama’s health care plan had racist motives because President Obama is black.  Ms. Sherrod’s redemption is far from complete.

She then says that the Tea Party’s talk of states’ rights raises the specter of Jim Crow and George Wallace.  But it was the federal government that passed and enforced the Fugitive Slave laws and it was independent states of the north, exercising their states’ rights, who supported the Underground Railroad and refused to actively assist returning slaves to the South.  So states’ rights cut both ways.

She concludes that, “Even if Tea Party members are right that any racist signs are those of mischief-makers, even if Glenn Beck had chosen any other Saturday to hold his rally, it would be hard to quiet the argument about the Tea Party and race.”  It’s hard to quiet the argument because those on the left keep falsely making it.  They cannot prove racism so they feel that by repeating often enough, they can make it stick.

I was at a street fair manning a booth for a Tea Party organization this spring.  An African-American teacher approached us tentatively to ask what we were about.  I asked her if she wanted the rumors or the truth and she opted for the truth.  I told her that we were a policy based organization focusing on accountable government, fiscal responsibility, limited federal government and following the Constitution.  She said she didn’t know any of that, she got e-mails from Moveon.org all the time and before leaving she signed our e-mail list.  When the truth reaches the ears of people over the screeching of the New York Times and the main stream media, it is generally well received.  The racial of mix of the Tea Party rallies will change over time when we can speak to the folks one on one without the lies of the left.

The Opionators

Bob Herbert begins his Op-Ed piece in a very open minded fashion, “America is better than Glenn Beck. For all of his celebrity, Mr. Beck is an ignorant, divisive, pathetic figure.”  Thank you for sharing that, Bob, but there’s no need to pull punches here.

“There is a great deal of hatred and bigotry in this country, but it does not define the country. The daily experience of most Americans is not a bitter experience and for all of our problems we are in a much better place on these matters than we were a half century ago.”

 

So why to you and your fellow travelers throw down the race card every time someone disagrees with a policy, if they are not of the same race?  Object to ObamaCare, that’s racism.  Object to the stimulus, racism.  Wanting Obama to fail to turn America into a socialist states, racism straight up.  Yes there is hatred and bigotry in this country, but it is primarily coming from the left.

Not to be outdone in the outrage department, Charles Blow titled his Op-Ed piece, “I Had a Nightmare.”  Mr. Blow said the following, “I find it curious that many of the same people who object so strenuously to the Islamic cultural center proposed for Lower Manhattan, many on the grounds that it is inappropriate and disrespectful, are virtually silent on the impropriety and disrespect inherent in Beck’s giving a speech on the anniversary of King’s address.”  This would be an excellent point, if he could point to 3,000 blacks that Glenn Beck has murdered in the name of restoring honor.  But Mr. Blow can make no such connection, so his analogy to the Ground Zero mosque falls flat.  Curious indeed.

After venting his spleen, Mr. Blow suggests we re-read Dr. King’s speech “and to recommit ourselves to the nobility of righteous pursuits.”  Let’s do that.

“But there is something that I must say to my people, who stand on the warm threshold which leads into the palace of justice: In the process of gaining our rightful place, we must not be guilty of wrongful deeds. Let us not seek to satisfy our thirst for freedom by drinking from the cup of bitterness and hatred. We must forever conduct our struggle on the high plane of dignity and discipline. We must not allow our creative protest to degenerate into physical violence. Again and again, we must rise to the majestic heights of meeting physical force with soul force.” –“I Have a Dream Speech”

 

How do the actions of the left, throwing down the race card at every turn, accusing everyone who disagrees with Barack Obama to have racism at the core of that disagreement comport with not “drinking from the cup of bitterness and hatred”?  It arrogantly assumes that it is impossible not to see the glorious benefit of the government running every last aspect of our lives, therefore the only reason to disagree has to be racism.  With regard to violence, where do we see the violent demonstrations on the left or the right?  Breaking windows, looting, SEIU members beating down street vendors for selling anti-Obama buttons, etc. are all on the left.  When the police show up at rallies organized by the left they show up in riot gear, at Tea Party rallies the mounted police have to decide whether to let people pet their horses or not.

“I have a dream that one day this nation will rise up and live out the true meaning of its creed: ‘We hold these truths to be self-evident, that all men are created equal.’” –“I Have a Dream Speech”

 

Didn’t America elect an African American President of the United States with 53% of the vote?  More than voted for Clinton either time, or Jimmy Carter?  Barack Obama wasn’t elected by minority votes alone.

“I have a dream that my four little children will one day live in a nation where they will not be judged by the color of their skin but by the content of their character.” –“I Have a Dream Speech”

 

Who more closely shares that dream, Glenn Beck, or those on the left who insist that forty years after Dr. Martin Luther King gave his speech that blacks can’t get into college or get a job without affirmative action; that black families have not been destroyed by government programs like welfare that drove fathers away; that government run schools that can’t graduate its students are far better for blacks than school vouchers that will let them escape those hellholes?  Dr. King’s speech says nothing about racial preferences.  Dr. King’s speech talks about color blindness.  Dr. King’s speech says give us an equal chance.  Glenn Beck believes that.  Those on the left do not.  It is those on the left who believe African Americans cannot compete without more government programs to help them.  Glenn Beck believe they can succeed if government gets out of their way and if the left stops the lies of dependency that hold them back.  It is the New York Times, Charles Blow, Bob Herbert who wrap themselves in racial division and then say, “Why can’t we come together?”  If you want us to come together, stop standing in the way.

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When Does It Become Obama’s Economy?

2010 Election, Bailouts, Clinton, Economy, Fiscal Crisis, Liberty, Obama, Politics, Taxes

The talking points have been established that it was eight years, eight, of failed Bush and/or Republican policies that got us into this mess and President Obama and the Democrats are working hard to get us out of it.  Let’s take a closer look.

What blew up in 2008?  It was the housing market.  The underlying cause of the problem has Democrat/liberal/progressive fingerprints all over it going back to Franklin Roosevelt who created Fannie Mae.  Add into that mix Lyndon Johnson privatizing Fannie Mae to hide it from the budget and creating HUD; Jimmy Carter creating the Community Reinvestment Act; Bill Clinton pushing for more home ownership among those who could least afford it, Andrew Cuomo as HUD Secretary pushing Fannie and Freddie to take on riskier mortgages; Barney Frank and Chris Dodd fighting against regulation before they were fighting for it (and where have we heard that formulation before?); and when housing prices run out of gas and the house of cards that the Democrats built collapses, it’s all Bush’s fault.

Let’s look at the timeline.  When he took office, President Bush was handed a recession from Bill Clinton resulting from the dot.com bubble.  In less than a year we had 9/11.  In spite of that, Bush pushed through tax cuts and got the economy to grow through most of his presidency.  The Democrats took control of Congress in January 2007 and in December 2007 the economy went into recession.  One year later Barack Obama is elected President of the United States.  Now, more than a year and a half after Obama is in office the economy looks like it is slipping into a double dip recession, and this is the Republican’s fault?  Who has been spending like a drunken sailor?  Who wasted almost $1 trillion on a stimulus plan that was so ineffective the Obama administration had to invent a new statistic, “jobs saved”, to hide its dismal performance.  They add on ObamaCare, which no one in Congress read before voting on it and no one knows what is in it and so no small business is going to hire anyone until they know what it costs.  How is that the Republican’s fault or Bush’s?

We are just a few months away from the tax cuts put in place by President Bush expiring.  President Obama wants them to expire.  This will place an additional massive burden on small businesses and just about everyone else and he wonders why aren’t companies hiring?  The man came into office with no executive experience and the year and a half he has been in office he hasn’t seemed to pick up any.  Could it be because he is surrounded by advisors who have little to no executive experience themselves?

To my fellow Americans I say, hang in there it is less than 100 days to vote the bums out.  Perhaps not all of them, but at least we can bring in some adult supervision.  It’s time to stop steamrolling the American people with the socialist programs and to let “We the People” take back our government.

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Fire, Ready, Aim

2010 Election, Bias, Media, Obama, Politics, Race

The Sherrod incident is the latest in a long line of shoot from the lip misfires from the Obama administration, from the president on down.  Here is a review of some of the more egregious of them:

  • President Obama, without waiting for the facts says the Cambridge, Massachusetts police department “acted stupidly,” in an incident involving African American  professor Henry Louis Gates.  A picture from the “beer summit” shows the president confidently striding toward the cameras while in the background Sergeant Crowley takes Professor Gates arm to help him negotiate the stairs, as Professor Gates walks with a cane.  Racist?
  • With 13 dead Americans at the hands of terrorist Nidal Hasan, Janet Napolitano comes out and claims, “The system has worked really very, very smoothly over the course of the past several days.”  A few days later she would eat those ridiculous words.
  • Not to be outdone by herself, after another terrorist attempt on our soil in Times Square, Secretary Napolitano quickly came out to label the attempt a “one-off” and the suspect a lone wolf.  As the investigation picked up steam there were all sorts links to terror groups in the Middle East.
  • When the president of Honduras tried to override term limits and become the next Hugo Chavez, the Honduran government enforced its laws against the changes that its president was trying to illegally implement.  The Obama administration immediately labeled the legitimate actions of the democratically elected Honduran government a coup.  Hillary Clinton’s State department cancelled the visas of all members of the Honduran Supreme Court.  Not to be intimidated by Chavez, Castro, or Obama, Honduras stood its ground.  The Congressional Research Service looked at the Honduran Constitution and the actions of its government and found that the government acted properly and within the law.
  • When Arizona reached the end of its rope and could not get the Obama administration to enforce the law on the border, they passed a law to give their police greater flexibility to determine the legal status of people stopped for another police matter.  The Obama administration immediately called the law unconstitutional.  When asked if they read the massive 10 page law, that’s right 10 pages, both Attorney General Eric Holder and Secretary Janet Napolitano (yes, her again) both said they hadn’t read it before declaring it unconstitutional.  This administration pushes through legislation running thousands of pages each and they can’t find time to read a ten page law before condemning it.
  • Department of Agriculture employee Shirley Sherrod gave a speech to the NAACP where she spoke about her transformation from having a racial bias in a decision she made 24 years ago, to today where she tries to treat all individuals regardless of race.  Only the first part of the story was headed toward the airwaves, the part about her past discrimination, and before the news hit the air she was fired by the Obama administration.  Had they watched the whole tape before acting, they wouldn’t be swimming in apologies right now.

 

Is this just the lack of experience or does the Obama administration need adult supervision?  They jump to these wild conclusions and then end up backtracking days later.  After eighteen months in office you would think they would have learned by now how to govern.

Another case without as quick a trigger is the passage of the Dodd-Frank financial reform bill.  After taking office President Obama appointed a commission, the Financial Crisis Inquiry Commission to investigate the root causes of the crisis.  A prudent person might say, let’s hear what the commission finds out and then write legislation to address those root causes.  With months more to go before that commission’s work will be done, we have another 2,000+ page bill coming out of Congress and signed by the president to put new regulations in place on the financial services industry.  Why the rush?  Wouldn’t it be better to fix the real problems rather than what Chris Dodd and Barney Frank think are the problems and let them paper over their own culpability in the creating the crisis?  Why were Fannie Mae and Freddie Mac excluded?  In one of the hearings before the commission an argument was made that AIG did not have to be bailed out, that there were measures in place to ride out the crisis and that in the long run their policies would be fine.  Whether that is true or not, will have to wait for the final report, but the “just don’t stand there, do something,” mentality is disconcerting.  I certainly hope we are never faced with another Cuban Missile Crisis with this team in place.

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Congress Gets Aggressive on Oil Spill

2010 Election, Energy, Liberty, Obama, Politics

I received an e-mail from my Congressman telling me how he was on top of the situation in the Gulf:

“I am a member  of the Committee on Transportation and Infrastructure, which is at the forefront of an aggressive (sic) Congressional response to BP’s oil spill.  Last week, I voted in Committee to approve a comprehensive legislative response to environmental and economic liability issues raised by the spill.”

As I had written about previously (The Regulators are Dead, Long Live the Regulators), this was just one more case of government failing us but then rushing out more legislation and control so it won’t happen again.  If government was doing its job, it shouldn’t have happened in the first place.  So I wrote back to the Congressman.

 Dear Congressman Bishop,

I read with interest your e-mail to me about the Committee on Transportation and Infrastructure, which you say is at the forefront of an aggressive Congressional response to BP’s oil spill.  Excuse my skepticism but this sounds like one more “we’re really gonna fix it this time,” response to the failure of government to do what they are already empowered to do.

You say the Oil Spill Accountability and Environmental Protection Act of 2010 “will ensure that responsible parties will be responsible for 100% of the oil pollution cleanup costs.”  If I am not mistaken it was the Congress that passed a law limiting the damages from an oil spill to $75 million, which created a moral hazard that perhaps encouraged BP to cut corners.  But wasn’t it BP who voluntarily waived the $75 million limit and has promised from the start that they would pay the full costs, thereby helping Congress remove the egg from their collective faces for including the limit in the first place?  Don’t get me wrong, BP has a lot to answer for but at the same time BP applied to the government regulators for several waivers of safety tests and requirements that the government granted.  If government had been doing their job, perhaps this would never have happened in the first place.

Aside from closing the barn door after the horse has escaped, I see no mention in your e-mail about holding Congressional hearings to ask the Obama Administration why they have not yet suspended the Jones Act and accepted the offer of help from twelve countries in the cleanup effort. When asked, Thad Allen and Carol Browner offered the weak excuse that no one asked them for a waiver.  Why did the administration stand in the way of Louisiana building sand berms to stop the oil from reaching the coast because of environmental reasons?  From an environmental disaster standpoint, doesn’t the oil gushing in the Gulf trump other concerns?  We seem to have multiple agencies operating in the Gulf and each one is getting in the way of each other and no one in the administration is taking the lead to clear the red tape.  Why is that Congressman?

Instead of talking about preventing avoidable disasters in the future, why don’t you find out why this avoidable disaster was not prevented by the regulations we have on the books and by the agencies in charge of doing so?  For once, perhaps you can wait until those facts are known before you rush out to craft more legislation to fix a problem like you did with the financial services industries when it will be months before the Angelides Financial Crisis Inquiry Commission has finished its investigation. 

Government that works is more important than signing ceremonies for ill considered legislation that is rushed and voted upon but unread by our representatives.

Sincerely yours,

William R. O’Connell

 I am sure there will be a signing ceremony and tough talk about how we’re really putting an end to this wild unfettered market, but if you trace it back this disaster had government leading the way.  It forced the oil companies to drill in deeper water; it created a moral hazard by capping their liability for any spills to $75 million (which BP waived and accepted responsibility for the full costs); the regulatory agency in charge both collects royalty payments from the oil companies and assesses penalties for failure to comply with regulations; and that same agency granted BP several waivers to take shortcuts before the well failed.  But don’t worry Congress is really going to get tough now.

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Is Lying the New Status Quo?

2010 Election, Bias, Clinton, Health Care, Liberty, Media, Obama, Politics, Race, Supreme Court

I do not like to throw around a charge of mendacity without good reason particularly after listening to the mainstream media and liberal blogosphere accuse Bush of this all day long.  But the more I listen to what comes out of this administration and the actions they take it is getting harder to hold my fire.

Take for example the brouhaha over the immigration law that hasn’t even gone into effect yet in Arizona.  From the start the administration has falsely portrayed the law as racial profiling, but when asked if they had actually read the ten page law, both Attorney General Holder and Homeland Security Secretary Napolitano said they had not.  How do people in such senior positions in any administration make such a bold claim without reading what they are opposing?  It begs the question, do they know they are talking about?

The federal government has gone forward and is suing Arizona over the law claiming that it preempts federal law.  But here are some interesting questions:

  • If the Arizona law preempts federal law and that is a bad thing, why does the federal government not sue San Francisco and other cities who have openly professed that they are Sanctuary Cities and immigration law will not be enforced therein?
  • A recent news report is that there is a law on the books in Rhode Island that is virtually identical to the law in Arizona and it has withstood judicial challenge?  Why isn’t the federal government suing Rhode Island?
  • The thrust of the federal government’s pique with the Arizona law is their claim that it is discriminatory.  But this same administration has just ordered that a case be dropped against a radical hate group, the Black Panthers, for putting armed thugs outside a polling place in Philadelphia on Election Day in 2008.  According to six career Civil Rights attorneys in the Justice Department, the case was a slam dunk and they had already gotten a default judgment from the court, but this administration chose to snatch defeat from the jaws of victory.  The Justice Department’s claim is that the facts did not fit the law.  Anyone who has seen the video of the incident knows that is a bald faced lie.  Is this administration for discrimination or against it?

The latest move by this administration against the rest of us is the recess appointment of Donald Berwick as the head of Medicare.  The lie in this case, is that the Republicans were stalling the appointment for “political purposes.”  Now other presidents have used recess appointments.  Both Clinton and Bush used them many times, however it was typically when they could not get the Senate to act on their nominee.  In this case, Max Baucus (D – MT), had not even scheduled hearings and eleven weeks after the nomination, the administration had not yet completed the nominating paperwork.  So was this action taken because of inaction on the part of the Senate or was the administration lying because they really didn’t want a public debate on Dr. Berwick?

Dr. Berwick has said he is, “Romantic about the National Health Service,” of Britain.  For all the false claims by the Obama Administration that if you are happy with your current health insurance you will be able to keep it, they stealthily appoint a socialized medicine disciple.  Dr. Berwick has also famously said:

 “The decision is not whether or not we will ration care – the decision is whether we will ration with our eyes open.”

Let’s see, the Obama Administration appoints Dr. Berwick head of Medicare.  Medicare is the health care program for the elderly.  Dr. Berwick is plain about health care rationing and suggests the way to do it is with our eyes open.  While the term “death panel” may have been used by Sarah Palin partially for its shock value to drive home her point, changing the name to a “rationing” panel would make it different in what way?

Here is the key distinction.  In the hands of the individual and their family, they can decide what kind of care they want to provide their loved ones.  They can decide when enough is enough or whether to press on.  In a free market, insurance policies would be true insurance not medical payment plans.  But regardless you would have the liberty to decide.  In this administration’s world, some bureaucrat makes the decision and after they have driven all the alternatives out of business, other than those available to the wealthy, you will have no choice but to succumb to the will of Big Brother.

We are currently surrounded by news of massive government failures in regulation in the areas of finance and the oil industry and we are to believe that they will be superb in running one-sixth of the economy.  Do you believe the lies?

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Obama Suspends the End of Racism

2010 Election, Bias, Liberty, Media, Obama, Politics, Race

His election was a major milestone in the history of the United States.  Leaving aside his political philosophy which a number of us opposed and more are seeing that philosophy more clearly now, electing the first African American to the presidency with 53% of the popular vote no less, truly shows how far our nation has come from the dark days of slavery.

Having achieved this milestone has proved a two edged sword to the progressives and statists.  By celebrating the election of Barack Obama it also signaled the defusing of the most potent weapon in their arsenal, the race card.  How can you routinely call America a racist country when we just elected an African American President of the United States?  By winning with 53% of the popular vote, more than Bill Clinton in two elections and more than Jimmy Carter, it was clear that the black vote alone could not have elected him.  It required him winning over many white voters as well.  How do you continue to justify Affirmative Action when an African American was chosen by his fellow citizens to the most powerful position on earth?  But the progressives and the statists continue to pull the trigger on this dud, particularly where the Tea Party movement is involved, without proof and without shame.

 A New Dark Chapter?

Ironically, it is the Obama administration that is practicing a new kind of racism that the mainstream media is conspiring with them to hide.

During the 2008 election, several members of the Black Panthers dressed in paramilitary uniforms and brandishing a nightstick, stood outside of a polling place in Philadelphia intimidating voters by their physical presence and through verbal taunts.  The Black Panthers were caught on video tape and as this was a clear violation of the Voting Rights act, charges were filed against them.  J. Christian Adams, one of the attorneys at the Department of Justice handling the case called it the “easiest case I’ve ever had.”  The facts were clear, the video tape provided irrefutable evidence and the defendants didn’t show up in court to dispute the charges.  Because they didn’t show up, the judge issued a default judgment, meaning the Justice Department won the case and only the punishment remained.  That is, until the new leadership of the Justice Department weighed in.

 This case was originally filed in the last days of the Bush administration.  So with the victory in hand, the Justice attorneys handling the case were told to dismiss the charges and drop the case.  The reason given was that the “facts and the law don’t support the case.”  It was further ordered that these kinds of cases were “not going to happen out of the Civil Rights Division” of the DOJ.  In other words, where the plaintiff was white and the defendant was black, the Civil Rights Division of the Department would not pursue the case.  If a regional United States Attorney brought a case, the DOJ would permit it to go forward, but not from within the Civil Rights division.

The individuals who delivered this order were Loretta King and Steve Rosenbaum, political appointees.  Adams went further to say that Assistant Attorney General Thomas Perez of lying under oath to a federal commission about the circumstances surrounding the decision to drop the probe.   The Justice Department denied Adams allegation:

 “It is not uncommon for attorneys within the department to have good faith disagreements about the appropriate course of action in a particular case, although it is regrettable when a former department attorney distorts the facts and makes baseless allegations to promote his or her agenda,” she said in a written statement.

Mere partisan politics?  Sour grapes?  You might think that until you hear from Bartle Bull, a lifelong Democrat and Civil Rights attorney who was an eye witness to the incident.  Here is an interview with Mr. Bull and Megyn Kelly of Fox News.  It is nothing less than stunning.  Interview.   He describes how one of the Black Panthers said to him and a person with him, “Now you will see what it’s like to be ruled by the black man, cracker.”

The first African American president has people in his administration who will not enforce the Voting Rights Act if the person whose rights are being violated is white.  I need not point out that if  the Ku Klux Klan was standing in front of the polling place and the Justice Department dropped the case against them what the outrage would be.  But with the mainstream media merely the propaganda arm of the administration, this news is only being carried by Fox News and on the Internet.

President Obama and Attorney General Holder must answer to this outrage.  They have to tell the American people why they refuse to carry out their sworn duty and enforce the law, particularly when the case was already won and they demanded that the charges be dropped and that no new cases would originate from the Civil Rights Division of the Department of Justice.  A great moment in American history will have a stain upon it unless President Obama immediately reverses course.

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Will Obama Face Another Defeat?

2010 Election, Economy, Fiscal Crisis, Foreign Policy, Obama, Politics

The news on the economy this morning is not encouraging.  The GDP numbers have been revised downward to an anemic 2.7%.  When asked to identify the Obama administration’s greatest accomplishments so far, one of his ardent supporters identified: 1) ObamaCare and 2) Afghanistan.  Yikes!  60% of the country remains opposed to ObamaCare with 55% supporting its repeal and Afghanistan is in need of a complete overhaul, especially on the civilian side meaning the Ambassador and special envoy Holbrooke.

President Obama now travels to the G8 and G20 meetings this weekend to try to get the rest of the major economies in the world to follow Obama’s leadership into recreating the Great Depression.  The good news is that the other heads of state are not members of the Democratic Party or beholding to Obama.  They are responsible to the citizens of their own countries.  For the European countries, they cannot go on a similar spending binge that Team Obama has embarked upon, if for no other reason than their declining birth rates will not create a new generation of people to hand the bill to.  They see the flashing warning lights that emanated from Greece and are rapidly changing course.

Either President Obama will use his silver tongue to convince the others to open the spending spigot or he will come home with his tail between his legs, his policies discredited worldwide.  Either way it will not be positive for the United States of America.

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Government Fails Again

2010 Election, Liberty, Obama, Politics

 

An in depth article in the New York Times titled, “Lapses Found in Oversight of Failsafe Device on Oil Rig,” covers at length the problems surrounding the technology and methods employed to prevent the disaster that we see every day on our television screens, newspapers, and the Internet.  It also points to the nearly complete lack of oversight and enforcement by the federal government to protect us.  Politicians like to write legislation and put flowery titles on the same and gather for the cameras for signing ceremonies, but when it comes to the heavy lifting of enforcing the laws put in place they often fall down on the job.

When disaster strikes the typical Washington reaction is to add more regulations that eventually become so complex and contradictory that compliance becomes nearly impossible (e.g., Internal Revenue Code).  In the case of the oil spill in the Gulf the article points out that studies were conducted in 2003, seven years ago, on failure points to prevent the situation we are living with today, but no requirements to put them in place or test them were instituted.

The article focuses on a device called a blind shear, whose purpose is, in the event of an accident like what happened on the Deepwater Horizon, to activate a pair of shear blades to cut the pipe that rises from the well and seal the well shut.  The reliability of single blind shears has only proved to be about 46%.  With this empirical data, new wells are installing two such devices for redundancy and backup.  Such a recommendation was made to the Materials Management Service (the government agency regulating drilling) in 2001, nine years ago, but the MMS took no actions on the recommendation.  In 2003, the MMS received a recommendation that would require the necessary underwater robots and testing of emergency backup systems, but again the MMS, demurred.  The practice has been that the MMS simply took the drilling industries word that they were taking steps to prevent problems.

In 2003, the Deepwater Horizon rig has a problem in a storm that caused the rig to break away from the well it was drilling, the blind shear worked perfectly in that case giving the company a false sense of confidence in the technology.  What happened next is revealing:

The following year, BP opted to remove a layer of redundancy from the blowout preventer. It asked Transocean to replace one of the blowout preventer’s secondary rams with a “test ram” — a device that would save BP money by reducing the time it took to conduct certain well tests. In a joint letter, BP and Transocean executives confirmed that BP was aware that the change “will reduce the built-in redundancy” and raise Transocean’s “risk profile.” – New York Times, 20 June 2010, pA1

Since the MMS did not require two blowout preventers, BP was in the clear to remove one.  Also, consider the term “risk profile,” and think of this in terms of a free market where insurance companies played a role.  If you increased the risk profile and didn’t want to have your policy canceled in its entirety for hiding that fact, the insurance company would no doubt increase BP premiums for the increased “risk profile.”  Since this effort was a cost saving measure, having to pay more in insurance might have changed the equation such that BP would leave things as they were with two blowout preventers.  But the government encouraged deep water drilling, the government put a cap on the amount of damages that a drilling company would have to pay that created a moral hazard, the government ignored recommendations to required greater safety measures and the government was lax in enforcing those regulations it had in place, instead relying on taking the industry’s word that all was well.

On a separate issue regarding the cleanup, in an article in the Wall Street Journal titled, “The President Does a Jones Act,” it states that in the two weeks following the disaster, thirteen countries contacted our government offering assistance with the clean up.  Our government turned the offers down.  As the State Department put it:

“While there is no need right now that the U.S. cannot meet, the U.S. Coast Guard is assessing these offers of assistance to see if there will be something which we will need in the near future.” One month later, many of these offers are still outstanding. – Wall Street Journal, 19 June 2010

The Belgians reportedly have the ships and technology that could clean up the mess in the Gulf in one-third the time than is currently estimated.  All it requires is suspending the Jones Act of 1920.  Bush did it almost immediately in the wake of Hurricane Katrina so that foreign ships could come in and provide temporary housing for the hurricane victims.  Officials in the Obama Administration weakly respond that “no one has asked them yet,” to suspend the Jones Act.  What are they waiting for?  Doesn’t Obama and everyone in his administration to hit the Sunday talk shows tell us that they has been on top of this since day one?  One plausible reason for the hesitation is that it might offend the maritime unions. 

We are continually told by this administration that we need more government expertise telling us how to run our lives.  Surrender your liberties, we’ll take care of you.  I don’t think so.  What do you think?

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The Anti-Business Obama

2010 Election, Bailouts, Bias, Economy, Energy, Fiscal Crisis, Liberty, Media, Obama, Politics

President Obama has demonstrated, as much as he would like to deny it, a strong anti-business sentiment.  He has acted in ways that remind one of a Castro or Chavez in that he is doing it in the name of the people against the greedy profiteers.

General Motors and Chrysler were bled dry by union contracts.  Management is culpable for agreeing to those contracts so they don’t get a pass in my view.  But government also piled on with CAFÉ mileage requirements that forced the auto companies to build cars at a loss (because of the union contracts) to meet this standard.  In the midst of the financial crisis the auto companies were running out of cash.  The Obama administration, rather than let them go into bankruptcy, muscles in and turns over major ownership stakes in GM and Chrysler to the unions who are loyal supporters of the Democrat Party, rather than pay bondholders who were entitled to be paid first.

The housing bubble was driven by government policies going back years.  The stated goals of the Clinton administration was to increase home ownership to as many people as possible.  When the bubble burst, the Obama administration forced TARP money on healthy banks who neither needed it nor wanted it.  The reason was to avoid showing who the real basket case banks were.  But these banks were forced by their government to take the money and then the Obama administration created a pay czar to make sure any company that took TARP money, voluntarily or not, could not pay their executives more than Team Obama said they could.

Lax regulation on the Deepwater Horizon platform in the Gulf of Mexico permitted BP to take short cuts that led to disaster.  President Obama is put in an embarrassing position, so he cranks up the Public Relations machine to throw maximum ire upon BP.  He then tries to be a hero by shaking down BP for $20 billion.  BP has never said they would not pay.  BP waived the limit on damages that was set by, you guessed it, the government and has steadfastly said they would make things right.  But President Obama wanted to look like he was actually doing something and by taking $20 billion and putting it under his control it might look like he was.  I agree with many that President Obama did not cause the leak in the Gulf any more than Bush created Hurricane Katrina, but if, as Obama likes to say, the buck stops here, then he is responsible for the lax enforcement by his administration that could have prevented it.

To create jobs this administration created a $787 billion bailout package that did next to nothing to create real jobs.  It was pork to be paid to union members such as teachers, contractors, and not to grow the economy and create sustainable jobs.

If a business that is solidly behind the Obama agenda, like General Electric who owns the NBC and MSNBC cheerleaders, and wants to be a key player in the cap and trade exchanges, this President will treat them kindly.  But if you are an independent business trying to grow, you will be taxed to your eye sockets.

We pride ourselves on being a nation of laws not a nation of men, but since this President has taken office he has a view that he is above the law and can do whatever he feels he needs to do.  It was somewhat surreal to have Congressman Joe Barton, apologize to BP for the shakedown.  No one owes BP an apology but I understand Congressman Barton’s distaste for the administrations boorish behavior.  No one has the right to demand another’s property without due process of law, and that’s what happened.  Perhaps Tony Heywood should be fired for going along with it.

Let’s keep this in mind.  We need BP to continue to be a viable profitable company, so that every last claim can be paid.  If this administration succeeds in driving BP into the ground, guess who will be next in line to pick up the tab?  That’s right, gentle readers, you and me;  the American taxpayers.

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The Truth Deficit

2010 Election, Economy, Obama, Politics

The above chart was produced by President Obamas’s economic team to pitch the stimulus.  As you can see, they projected that with the stimulus unemployment would peak at about 8% by the third quarter of 2009 and then steadily fall, passing through about 7.3% by now.  But if we didn’t spend $787 billion dollars to enact the stimulus plan, unemployment would grow to about 9% in mid 2010 before falling.  The Obama administration passed the stimulus by a straight party line vote and the unemployment rate is currently at 9.7%.

So what does the president have to say about this? 

“If the just-say-no crowd had won out—if we had done things that way—we’d be in a deeper world of hurt,” he told workers at the V&M Star steel plant in Youngstown. “The steady progress we are beginning to see across America just wouldn’t exist. … So I invite anyone who thinks we shouldn’t have taken those actions or made those investments to come to places like this and tell us why.”

Does the man have no shame?  In February he tells us that if we did nothing we would be better off than we are today (9% unemployment vs. 9.7%).  Today, he says wasting $787 billion on dubious pork barrel spending is working just swell.  So, let me tell you Mr. President, we shouldn’t have made those investments because we are worse off now than you said we would be and you added nearly a trillion dollars to our national debt.  We knew it.  We opposed it.  You ignored us.  Now you are trying to tell us up is down and down is up. 

President Obama is telling us that if we did nothing unemployment would be much worse.  He didn’t know then.  He doesn’t know now.

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