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I had no idea. I thought that runaway spending was a bad thing. I know that in business as well as in our personal lives when we borrow and spend far beyond the amount of money we take in, trouble comes calling. How did I get it so mixed up?

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Tim Bishop is in a tough spot. He can’t rely on earmarks to get himself reelected, those have been banned. He has a reputation of strong constituent service but if you peel back that onion you will see that the service is based on helping folks deal with the massive regulatory programs he typically votes for. Run on his record? His record consists of voting with Nancy Pelosi 97% of the time; in return the leadership gave him his share of pork to pass around and “buy” votes.

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New Brady Bill to Outlaw Dangerous Speech

by Bill O'Connell on January 11, 2011

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I for one must say it’s about time.  Representative Robert Brady (D-Pa.) is planning to introduce legislation that would make it a federal crime to use language or symbols that could be perceived as threatening or inciting violence against a federal official or member of Congress.  On Fox News he said emphatically that “you can’t put a bull’s-eye or crosshairs on a United States congressman or a federal official.”  He also said, “The rhetoric is just ramped up so negatively, so high, that we have got to shut this down.”  Amen, brother.  But let’s not stop at just bull’s-eyes or crosshairs.  We need to make sure nothing triggers another individual like this.  After all, we don’t know for sure he even saw the map on Sarah Palin’s web site.  Maybe he’s was a basketball fan.

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The Rush to Judgment

by Bill O'Connell on January 10, 2011

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“Now, I don’t know, not having been there and not seeing all the facts, what role race played in that. But I think it’s fair to say, number one, any of us would be pretty angry; number two, that the Cambridge police acted stupidly.”  President Obama commenting on a police incident in Cambridge, Mass. involving Sgt. Crowley and Professor Gates

“We don’t know all the answers yet and I would caution against jumping to conclusions,” President Obama speaking about Major Nidal Hasan after he killed 13 at Fort Hood.

“There is no credible evidence so far that this attack was more than at least one person, the driver,” said Mayor Mike Bloomberg. “After that there is no evidence that anyone else was involved. It may be, but we can’t say that it is.”…“If I had to guess, twenty five cents, this would be exactly that,” Bloomberg said. “Homegrown maybe a mentally deranged person or someone with a political agenda that doesn’t like the health care bill or something. It could be anything.” – New York Mayor Michael Bloomberg commenting on the Times Square bomber

“You know, at this point I have no information that it’s anything other than a one-off,” – Homeland Security Secretary Janet Napolitano commenting on the Times Square bomber

“The odds are quite high that this was a lone wolf.” – New York Senator Charles Schumer commenting on the Times Square bomber

“Rep. Andre Carson said he and Rep. John Lewis had racial slurs yelled at them as they left the Cannon House Office Building, with protesters chanting what he referred to as “the N-word” fifteen times.” – CBS News report on the Health Care Vote.  Andrew Breitbart put up $100,000 to anyone who came forward with video or audio proof of Carson’s accusations.  To date, no one has come forward.

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The Truth about Taxes

by Bill O'Connell on December 16, 2010

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In an interview on Bloomberg radio yesterday, New York Lieutenant Governor Richard Ravitch talked about the perilous state of New York’s economy.  Mr. Ravitch was a key player in the rescue of New York City from the brink of financial collapse in the 1970s.  He talked about bankruptcy being an option and how New York City’s possible bankruptcy really brought banks to the negotiating table.  He also talked about how important the financial services industry is to New York as a source of tax revenue.  Then he let the cat out of the bag.

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The Earmark Victory

by Bill O'Connell on November 16, 2010

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The American Republic will endure until the day Congress discovers that it can bribe the public with the public’s money – Unknown (often attributed to Alexis de Tocqueville)

That, in my mind, pretty much sums up earmarks.  It is a way for Congress to bribe the public with the public’s money.  As Tip O’Neill once said, “all politics is local,” and the way it is made local is that the members of Congress get money from the Treasury, put there by their constituents (the public) to show what a great job the member is doing at bringing home the bacon (bribe).

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How to Repeal ObamaCare Now

by Bill O'Connell on September 14, 2010

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Have you ever heard of an arcane legislative procedure called a discharge petition? Well, pull up a chair and I promise to keep this brief. 

There is a bill in the House of Representatives H.R. 4972 – “To repeal the Patient Protection and Affordable Care Act”, which, if passed would repeal ObamaCare.  Naturally, Nancy Pelosi is determined to never let this see the light of day and has it buried in committee.  Here’s where the discharge petition comes into play. 

If a majority of the House of Representatives signs the discharge petition (Discharge Petition 11), then H.R. 4972 has to come to the House floor for an up or down vote, over Nancy Pelosi’s dead body, objection.  Isn’t this fun?  Now, here’s where it gets interesting.  It seems that every Democrat it running and hiding from ObamaCare, because they know most Americans oppose it.  They can claim that it was too big to read, they were drunk, their families were being held hostage if they didn’t sign it, so they reluctantly went along.  Eureka! Now they can have a second chance to vote against it before Election Day!  And if they don’t, we’ll be watching.

So contact your Representative, especially those Blue Dogs out there and get them to sign Discharge Petition 11 and watch the fireworks begin.  Who said politics wasn’t fun?  Have a nice day.

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The Regulators are Dead, Long Live the Regulators

by Bill O'Connell on June 28, 2010

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As written about extensively here, government regulators have failed us in so many ways that to continue the practice of putting more control in the hands of government is lunacy.  To wit:

  • The financial crisis, although typically blamed on Wall Street greed, was due in large part to government agencies and programs (Fannie Mae, Freddie Mac, HUD, Community Reinvestment Act, National Homeownership Strategy) that opened the door through which Wall Street followed.
  • The oil spill in the Gulf happened after regulators either signed off on waiver applications from BP or just didn’t enforce the regulations on the books
  • Anywhere from $60 billion to $100 billion is stolen from Medicare/Medicaid every year and our government can’t seem to stop it
  • First time homebuyer tax credit was claimed, to the tune of $9 million, by incarcerated felons.

But the current administration insists that government must get bigger to tackle our nation’s problems and must tax us more to do so.

Senator Chris Dodd and Representative Barney Frank were at the heart of the financial debacle, claiming that Fannie Mae and Freddie Mac were in sound financial shape.  Meanwhile Senator Dodd was getting a sweetheart mortgage from Countrywide as a “Friend of Angelo” Mozillo, the CEO of Countrywide.  Now we are to believe that Senator Dodd and Representative Frank have ridden to the rescue and have crafted the solution we have all been waiting for, just don’t ask about Fannie and Freddie, they aren’t included in this master work.

The Federal Reserve will now have more power to regulate banks, after failing to monitor what was going on at Citibank and having the government step in because they were “too big to fail.”  The Treasury stepped into to bail out some banks and let other financial firms like Lehman Brothers to go under, will now have more power to determine which financial institutions are sound and which ones are not and step in to take control without allowing the bankruptcy courts to get involved.  The SEC which was asleep at the switch, or too busy watching porn on taxpayer purchased computers,  when the Bernie Madoff scam was delivered to them wrapped in a bow, will now have more power to decide how easy it will be to allow union pension funds to place their candidates on boards of directors.

The new legislation, which does nothing really new, runs to 2,000 pages (did you expect something less?) and leaves much of the details to the regulatory agencies themselves to fill in the blanks.  And never to miss an opportunity to slip a new tax into the mix there are $19 billion in new taxes to pay for this new regulatory oversight.

So when regulators fail, the government’s response is not to look at government’s role in creating the original problem, but to blame any private interests and add more regulations that will increase the scope and power of the government, take away your liberties, and do nothing to fix the original problem.  When the next crash comes, and it will, these same folks will say, “oh, dear, how did this happen?”  They will blame any private interests that are anywhere near the problem, absolve government agencies of all blame, and layer on more regulations.

The only way to fix this problem is to make sure these same folks are not around in the future and to cut the government down to size.

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Let The Sun Shine In

by Bill O'Connell on March 27, 2010

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In their pledge of openness and transparency in government the House of Representatives takes some pride in putting the health care bill online for 72 hours before voting on it.  Sounds like a good step, no?  Well… that is until you to the math.  If the bill they are voting on is 2,500 pages long you would only have 1.7 minutes to read each page provided you did not eat, sleep, rest your eyes, use the restroom for three straight days!

We have Nancy Pelosi’s famous cry for support, “we have to pass the bill so that you can find out what is in it”.  Turn one-sixth of the economy over to the government, first, then find out what’s behind door number 1, door number 2, or door number 3.  If you remember from that game show, what was behind one of the doors was a real stinker.  The problem here is we got all three doors.

AT&T reports that they are writing off $1 billion to pay for compliance with the new health care bill.  Guess where they are going to get that $1 billion?  That’s right watch your phone bill.  You are going to be paying for this health care monster in places you never imagined.  Caterpillar announced they were writing off $100 million, John Deere $150 million, and AK Steel $31 million.  So look for more expensive roads, farm equipment (food), and more expensive cars.  This is from companies that have figured this out in less than a week.  It will take time for thousands of other companies to tally up the cost.

Henry Waxman to the Rescue

But don’t worry folks, Congressman Henry Waxman is riding to the rescue:

Representative Henry A. Waxman, Democrat of California and chairman of the Committee on Energy and Commerce, said he would hold a hearing next month to investigate the effects of the law on big companies. He asked the chief executives of Caterpillar, Deere & Company and Verizon for financial data to document the projected impact of the law on their companies, and he asked them to explain their accounting methods.

“The new law is designed to expand coverage and bring down costs,” Mr. Waxman said, adding that he would be concerned if it drove up costs.

I’m sorry to have to say this, but he has to be the dumbest man in the House of Representatives.  Members of the House are supposed to REPRESENT  the people.  The people have been screaming their opposition to this for months.  Obama dared his opposition to campaign on repealing his prized piece of…er, work.  Here’s news for you Mr. President, according to a Rasmussen poll 55% of Americans favor repealing this monstrosity.

But let me get back to Mr. Waxman, who is surprised that health care costs could actually increase.  Listen to the American people:

Most voters still believe cost is the biggest problem with health care in America today, but most also think passage of the health care plan proposed by President Obama and congressional Democrats will drive costs even higher.

A new Rasmussen Reports national telephone survey finds that 54% rate cost as the biggest problem, a finding that has been consistent for months.

If Mr. Waxman got his head out of the sand or wherever else he conveniently parks it, and out into the fresh air, he might have realized that he is among the very few who actually believe this was going to lower costs, because there is nothing in this bill that addresses costs.  It’s all about tweaking reimbursements to health care providers, which will accomplish nothing but drive doctors and other providers out of business, ration health, and expand government control.  Oh, but wait, that is the Democrats plan.

The Silver Lining

But there is a silver lining.  Communist dictator Fidel Castro loves it! 

Cuban revolutionary leader Fidel Castro on Thursday declared passage of American health care reform “a miracle” and a major victory for Obama’s presidency

Bill O’Reilly, do you still think President Obama is not  a socialist?

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Pick My Pocket. Please!

by Bill O'Connell on December 28, 2009

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Who doesn’t love a freebie?  Who does not get a thrill of good fortune by finding money in the street, no matter how insignificant the amount?  We may not believe in the Tooth Fairy, but many of us believe we have a rich benevolent uncle, Uncle Sam, who is willing to lavish upon us his wealth if only we would ask.  The sad truth is that Uncle Sam is not rich, but penniless and is running a ponzi scheme that would make Bernie Madoff blush.

Health Care for $20

One of the major reasons that health care costs are rising out of control is that no one is minding the store.  While Washington twists itself in knots to rearrange deck chairs on the Titanic of health care, we have little to no say in how our health care dollars are spent.  Our health care “insurance” system is not really insurance.  Insurance is meant to protect us from a financial catastrophe.  Going to the doctor for a checkup is not a catastrophe.  Paying a $20 co-pay for that checkup is like finding money on the street.  There is no way anyone can get a physical exam, except by a hooker, for $20.  It is a good idea to get a physical checkup every year?  Yes, then pay the bill and ask what you are paying for and make sure you need it.  You take your car in for service don’t you?  Do you file an insurance claim when you do?  Can you get it done for $20.  Let’s get real.  What we have is called third party payer and when someone else is picking up the tab, do we care what it costs?  Really?  But someone is picking up the tab.  Look in your other pocket, because you are.  If you are generally healthy and you get your annual checkup, your insurance premium (here in New York at least) will probably run around $10,000 per year.  But, hey, you only paid $20 for that physical!  What if you paid the full amount for the physical, say, $500.  What if your insurance premium was cut to $5,000 because you would pay most routine medical costs out of your pocket and what if you could put the $4,500 left over ($10,000 original premium, minus $5,000 current premium, minus $500 cost of checkup), into a tax free account that can be used for future medical expenses or retirement if you don’t use it?  If you are a young person and stay healthy into your mid-40s, you would have accumulated over $90,000 in your medical savings account and you still have catastrophic insurance coverage and the government stays out of the picture.

Retirement for Free

Like many well intentioned Government programs, Social Security, enacted during the Great Depression, seemed like a good idea at the time.  When enacted there was about 15 workers paying in for each recipient drawing out.  Today there are about a little over 3 workers paying in for each beneficiary.  Bernie Madoff would blush at the audacity of it.  On top of that the money that is paid into Social Security can only be “invested” in Treasury Securities so the return is lousy, but safe.  People reacted to Social Security by saving less because the government safety net was there.  Had people been encouraged to save for their own retirement, they would not be leaving their children this legacy of a ticking time bomb.  So today, many young people feel the government’s hand in their pocket when they look at the FICA line on their pay stub, but don’t believe they will ever get a penny back.  Nice concept.

Bring Home the Bacon!

What’s the measure of a good Congressman or Senator?  Bringing home pork for the district, no?  If you are like me, you get flyers every year or several times per year, touting how Congresswoman Jones obtained federal funding for that pier at the amusement park.  With 435 Congressmen you can count on this, for each $1 that your Representative brings home $434 leaves the Treasury for each of the other Congressional districts and probably more, depending on the power and seniority of your Representative.  Guess who’s paying for that Turtle Crossing in Florida?  that bridge to nowhere in Alaska? that airport in Johnstown, PA that no one uses?  That’s right, you are.  What if we decided locally if we really needed a pier at the amusement park, and if we did, pay for it ourselves?  Then we could let the people of Florida decide if they want to build a turtle crossing, the people of Alaska decide if they wanted a bridge to nowhere and the people of Pennsylvania decide if they wanted an airport that no one used.  Then we could cut federal taxes by an equal amount to keep them out of mischief and help us pay for these projects if we really wanted them.

Let’s Get Organized

There was a time in our history where labor unions performed a valuable service.  In those times when many industrial jobs were unskilled or semi-skilled, employers could dismiss someone on a whim and replace them within the hour.  Unions gave those workers some counterbalancing power and fairer treatment.  Today, we have a much more sophisticated economy and workers have more skills and mobility.  Union membership has declined accordingly, in the private sector at least.  Why is union membership still growing in the public sector?  What is different about workers in the public sector that they still need unions?  Are we suggesting that all government workers are unskilled?  Why do teachers need a union?  Are they not skilled such that they could sell their services to the highest bidder?  Why do unions fight merit pay for teachers?  Why are school principals, the de facto CEO of the school and who in New York easily make six figures, unionized?  Do you get an idea why our K-12 public school system is trailing the world in performance?

In Michigan, privately owned small businesses that provided day-care services suddenly discovered that they were part of a union and union dues were being withheld from their government contractual payments.

Ms. Berry owns her own business—yet the Michigan Department of Human Services claims she is a government employee and union member. The agency thus withholds union dues from the child-care subsidies it sends to her on behalf of her low-income clients. Those dues are funneled to a public-employee union that claims to represent her. The situation is crazy—and it’s happening elsewhere in the country.

Ms. Berry, runs “The Berry Patch” a private day care center she operates from her home catering to low income clients.  The money that was once paid to her, now goes to a union that does little for her.  She is “self employed and wants nothing to do with the union.”  Don’t you think we need more of these tactics in America?  Card Check anyone?

Going Postal

And let’s not forget the Postal Service.  As postal rates are again scheduled to increase on January 4, let’s look at this paragon of efficiency, that is actually authorized by the Constitution.  In 2008, the Postal Service lost $3 billion, and the Postmaster General John Potter pulled down $800,000 in compensation including $135,000 in incentive bonuses.  What do we have to pay this guy if he actually breaks even?  Also, let us not forget this is also a very heavily unionized operation.

Don’t Worry, You Won’t Feel a Thing

During World War II, FDR needed to raise more revenue to pay for the war.  Fearing a backlash, his team hit upon the idea of payroll withholding.  Knowing the potential backlash that would result when taxpayers had to write that big check on April 15th, he rightly figured that if he took a little bit each week, he could take a lot more in total.  Statists in Washington have never looked back.  It’s like the tax that was imposed on telephone service to pay for the Spanish American War that is still in place today.  Instead of picking our pockets every week, what do you think most Americans would say about the size of the federal government if they had to write one big check on April 15th?  There would be no tax rebates, because there would be no tax withheld.  Do you think Americans would force Congress to sharpen their pencils and scale back the size of government?

Help is On the Way

Ronald Reagan said, “The nine most terrifying words in the English language are, ‘I’m from the government and I’m here to help!’”  But perhaps the best example of how far from our founding principles our government has strayed comes from Congresswoman Rosa DeLauro of Connecticut as she spoke during a House End of Year Wrap Up Session:

“This House–we understand, we’re there,” she said.  “You can count on us because we believe that it’s our moral responsibility to make sure that you and your family need our help.” 

I don’t know about you, but I don’t need the House of Representatives making sure I need their help.  I need as little interference as possible from them.  Their meddlesome intrusions in our lives is killing what made this country great.  It is a point we cannot make often enough.

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