Thursday, October 30, 2008

An Acorn Whistleblower Testifies in Court
The group's ties to Obama are extensive.

Acorn, the liberal "community organizing" group that claims it will deploy 15,000 get-out-the-vote workers on Election Day, can't stay out of the news.

The FBI is investigating its voter registration efforts in several states, amid allegations that almost a third of the 1.3 million cards it turned in are invalid. And yesterday, a former employee of Acorn testified in a Pennsylvania state court that the group's quality-control efforts were "minimal or nonexistent" and largely window dressing. Anita MonCrief also says that Acorn was given lists of potential donors by several Democratic presidential campaigns, including that of Barack Obama, to troll for contributions.

The Obama campaign denies it "has any ties" to Acorn, but Mr. Obama's ties are extensive. In 1992 he headed a registration effort for Project Vote, an Acorn partner at the time. He did so well that he was made a top trainer for Acorn's Chicago conferences. In 1995, he represented Acorn in a key case upholding the constitutionality of the new Motor Voter Act -- the first law passed by the Clinton administration -- which created the mandated, nationwide postcard voter registration system that Acorn workers are using to flood election offices with bogus registrations.

Ms. MonCrief testified that in November 2007 Project Vote development director Karyn Gillette told her she had direct contact with the Obama campaign and had obtained their donor lists. Ms. MonCrief also testified she was given a spreadsheet to use in cultivating Obama donors who had maxed out on donations to the candidate, but who could contribute to voter registration efforts. Project Vote calls the allegation "absolutely false."

She says that when she had trouble with what appeared to be duplicate names on the list, Ms. Gillette told her she would talk with the Obama campaign and get a better version. Ms. MonCrief has given me copies of the donor lists she says were obtained from other Democratic campaigns, as well as the 2004 DNC donor lists.

In her testimony, Ms. MonCrief says she was upset by Acorn's "Muscle for Money" program, which she said intimidated businesses Acorn opposed into paying "protection" money in the form of grants. Acorn's Brian Kettering says the group only wants to change corporate behavior: "Acorn is proud of its corporate campaigns to stop abuses of working families."

Ms. MonCrief, 29, never expected to testify in a case brought by the state's Republican Party seeking the local Acorn affiliate's voter registration lists. An idealistic graduate of the University of Alabama, she joined Project Vote in 2005 because she thought it was empowering poor people. A strategic consultant for Acorn and a development associate with its Project Vote voter registration affiliate, Ms. MonCrief sat in on policy-making meetings with the national staff. She was fired early this year over personal expenses she had put on the group's credit card.

She says she became disillusioned because she saw that Acorn was run as the personal fiefdom of Wade Rathke, who founded the group in 1970 and ran it until he stepped down to take over its international operations this summer. Mr. Rathke's departure as head of Acorn came after revelations he'd employed his brother Dale for a decade while keeping from almost all of Acorn's board members the fact that Dale had embezzled over $1 million from the group a decade ago. (The embezzlement was confirmed to me by an Acorn official.)

"Anyone who questioned what was going on was viewed as the enemy," Ms. MonCrief told me. "Just like the mob, no one leaves Acorn happily." She believes the organization does some good but hopes its current leadership is replaced. She may not be alone.

Last August two of Acorn's eight dissident board members, Marcel Reed and Karen Inman, filed suit demanding access to financial records of Citizens Consulting Inc., the umbrella group through which most of Acorn's money flows. Ms. Inman told a news conference this month Mr. Rathke still exercises power over CCI and Acorn against the board's wishes. Bertha Lewis, the interim head of Acorn, told me Mr. Rathke has no ties to Acorn and that the dissident board members were "obsessed" and "confused."

According to public records, the IRS filed three tax liens totaling almost $1 million against Acorn this spring. Also this spring, CCI was paid $832,000 by the Obama campaign for get-out-the-vote efforts in key primary states. In filings with the Federal Election Commission, the Obama campaign listed the payments as "staging, sound, lighting," only correcting the filings after the Pittsburgh Tribune-Review revealed their true nature.

"Acorn needs a full forensic audit," Ms. MonCrief says, though she doesn't think that's likely. "Everyone wants to paper things over until later," she says. "But it may be too late to reform Acorn then." She strongly supports Barack Obama and hopes his allies can be helpful in cleaning up the group "after the heat of the election is gone."

Acorn's Mr. Kettering says the GOP lawsuit "is designed to suppress legitimate voters," and he says Ms. MonCrief isn't credible, given that she was fired for cause. Ms. MonCrief admits that she left after she began paying back some $3,000 in personal expenses she charged on an Acorn credit card. "I was very sorry, and I was paying it back," she says, but "suddenly Acorn decided that . . . I had to go. Since then I have gotten warnings to 'back off' from people at Acorn."

Acorn insists it operates with strict quality controls, turning in, as required by law, all registration forms "even if the name on them was Donald Duck," as Wade Rathke told me two years ago. Acorn whistleblowers tell a different story.

"There's no quality control on purpose, no checks and balances," says Nate Toler, who worked until 2006 as the head organizer of an Acorn campaign against Wal-Mart in California. And Ms. MonCrief says it is longstanding practice to blame bogus registrations on lower-level employees who then often face criminal charges, a practice she says Acorn internally calls "throwing folks under the bus."

Gregory Hall, a former Acorn employee, says he was told on his very first day in 2006 to engage in deceptive fund-raising tactics. Mr. Hall has founded a group called Speaking Truth to Power to push for a full airing of Acorn's problems "so the group can heal itself from within."

To date, Mr. Obama has declined to criticize Acorn, telling reporters this month he is happy with his own get-out-the-vote efforts and that "we don't need Acorn's help." That may be true. But there is no denying his ties with Acorn helped turbocharge his political career.

Now comes Barack Obama, standing at the head of a progressive Democratic Party, his right hand rising to say, "Mothers, don't let your babies grow up to be for-profit cowboys. It's time to spread the wealth around."

What this implies, undeniably, is that the United States would move away from running with the high GDP, high-growth nations rising today as economic and political powers and move over to retire with the low-growth economies we displaced -- old Europe.

As noted in a 2006 World Bank report, spending in Europe on social-protection programs averages 19% of GDP (85% of it on social insurance programs), compared to 9% of GDP in the U.S. The Obama proposals send the U.S. inexorably and permanently toward European levels of social protection. This isn't an "agenda." It's a final temptation.

In partial detail:

Obama's federalized medical insurance system starts the transition away from private medical care and toward Obama's endlessly promised "universal health care." This has always been the sine qua non of planting a true, managed-market economy in the U.S.

Obama's refundable tax credits are direct cash transfers from the federal government. This would place some 48% of Americans, nearly half, out of the income tax system. More than a tax proposal, this is a deep philosophical shift, an American version of being "on the dole."

Monday, October 27, 2008



Note that Obama wouldn't be the first politician with Muslim roots to lead a major non-Muslim country. Carlos Menem, a Muslim of Syrian descent, served as Argentina's president from 1989 to 1999. But he dropped his Arab-Islamic first name and adopted his baptismal Christian name before entering politics.

Obama, by contrast, has retained his Arabic-Islamic names. (Barack means "blessed" and Hussein means "beautiful.") His family name is Swahili, an East African lingua franca based on Arabic. Arab commentators note that his siblings also all have Arabic Muslim names. His sister is called Oumah, Arabic for "the community of the faithful his older daughter, Malia, bears the name of a daughter of the Caliph Othman, who commissioned the compilation of the first edition of the Koran. That Obama's stepfather was also a Muslim (from Indonesia) strengthens the empathy that many Arabs feel for him.
Republicans fear a Barack Obama victory would turn America sharp left

My center is giving way. My right is in retreat. Situation excellent. I attack!”


That’s the message supposedly sent by General Ferdinand Foch of France to his commanding general, Joseph Joffre, during the crucial First Battle of the Marne in September 1914. The French and British counterattacks succeeded. The German Army, after advancing for a month, was forced back.

Friday, October 24, 2008

Obama Meets Petraeus
GeoMacro Consulting© understands that a recent meeting between Obama and head of Centcom Gen Petraeus was anything but copasetic.
We understand from military sources that Obama "got up in the face" of Gen Petraeus about the need for a timetable and Obama accused the General of been a simple lobbyist for his strategy.
GeoMacro Consulting © also understands from Obama campaign sources that THE #1 policy initiative that Barack Obama will push on Day One is Alternative Energy


Americans unsure of accuracy of voting





'04's most accurate pollster: Obama 44.8%, McCain 43.7%
Republican making headway with middle- and working-class voters, Catholics



Newspaper shows Obama belonged to socialist party
Democrat's campaign denied allegations, but new evidence indicates membership
Previously documented that while running for the Illinois state Senate in 1996 as a Democrat, Obama actively sought and received the endorsement of the socialist-oriented New Party, with some blogs claiming Obama was a member of the controversial party.
The New Party, formed by members of the Democratic Socialists for America and leaders of an offshoot of the Community Party USA, was an electoral alliance that worked alongside the Association of Community Organizations for Reform Now, or ACORN. The New Party's aim was to help elect politicians to office who espouse its policies.
Among New Party members was activist Noam Chomsky.
The New Party News, the party's official newspaper, which show Obama posing with New Party leaders, list him as a New Party member and include quotes from him.
The party's Spring 1996 newspaper boasted: "New Party members won three other primaries this Spring in Chicago: Barack Obama (State Senate), Michael Chandler (Democratic Party Committee) and Patricia Martin (Cook County Judiciary). The paper quoted Obama saying "these victories prove that small 'd' democracy can work."
The newspaper lists other politicians it endorsed who were not members but specifies Obama as a New Party member.
New Ground, the newsletter of Chicago's Democratic Socialists for America, reported in its July/August 1996 edition that Obama attended a New Party membership meeting April 11, 1996, in which he expressed his gratitude for the group's support and "encouraged NPers (New Party members) to join in his task forces on Voter Education and Voter Registration."
Becoming a New Party member requires some effort on behalf of the politician. Candidates must be approved by the party's political committee and, once approved, must sign a contract mandating they will have a "visible and active relationship" with the party.
The New Party, established in 1992, took advantage of what was known as electoral "fusion," which enabled candidates to run on two tickets simultaneously, attracting voters from both parties. But the New Party went defunct in 1998, one year after fusion was halted by the Supreme Court.

Democrat: Obama's grandma confirms Kenyan birth
'This has been a real sham he's pulled off for the last 20 months'
The Pennsylvania Democrat and former Pennsylvania Deputy Attorney General who has sued Sen. Barack Obama demanding he prove his American citizenship – and therefore qualification to run for president – has confirmed he has a recording of a telephone call from the senator's paternal grandmother confirming his birth in Kenya.
The issue of Obama's birthplace, which he states is Honolulu in 1961, has been raised enough times that his campaign website has posted an image purporting to be of his "Certification of Live Birth" from Hawaii.
But Philip J. Berg, a former deputy attorney general for Pennsylvania, told the Michael Savage talk radio program tonight that the document is forged and that he has a tape recording he will soon release.
"This has been a real sham he's pulled off for the last 20 months," Berg told Savage. "I'll release it [the tape] in a day or two, affidavits from her talking to a certain person. I heard the tape. She was speaking [to someone] here in the United States."
Philip J. Berg

"Smears claiming Barack Obama doesn't have a birth certificate aren't actually about that piece of paper," says the "Fight the Smears" section of Obama's website, "they're about manipulating people into thinking Barack is not an American citizen.
"The truth is, Barack Obama was born in the state of Hawaii in 1961, a native citizen of the United States of America," the campaign website states. It also includes images of the Hawaii certificate bearing the name Barack Hussein Obama II.
The Washington claim states, "If in fact Obama was born in Kenya, the laws on the books in the United States at the time of his birth stated if a child is born abroad and one parent was a U.S. Citizen, which would have been his mother, Stanley Ann Dunham, Obama's mother would have had to live ten (10) years in the United States, five (5) of which were after the age of fourteen (14). At the time of Obama's birth, his mother was only eighteen (18) and therefore did not meet the residency requirements under the law to give her son (Obama) U.S. Citizenship much less the status of 'natural born.'"




What If The World Voted in America’s Presidential Election?






Stages Being Built
Barack Obama’s election night stage in Chicago, IL is being planned and Mayor Daly of Chicago is saying it will cost $2mln to host the Obama party in Chicago’s Grant Park.
He suggested the United Center as cheaper simpler alternative but was turned down.
The mayor said the cash-flushed Obama campaign has agreed to reimburse the city for those services because Chicago is grappling with a $465 million deficit and is in no position to pay for it.
Asked if he objected to Obama's decision to hold the rally in Grant Park, Daley said, "Could you see me saying no to Sen. Obama? Give me a break. I'm not that dumb."
The mayor said the indoor United Center "would be much easier but the campaign so far ... wants to do it in the open. They applied for the permit."
Daley acknowledged that the Grant Park rally would create a logistical nightmare. "You'd have to secure buildings, close down buildings," he said.
"You need sanitation. ... You have to secure the CTA. You have to have traffic people. ... You have close streets seven to eight hours before."
---The inauguration stage on the Capitol Bldng in Washington DC is already being built for the inauguration of Jan 20, 1009

McCain campaign worker says man robbed her, then cut a 'B' on her face when he saw her affiliation
The Republican presidential nominee has since called the volunteer, 20-year-old Ashley Todd, and spoken with her and her family. Barack Obama's local campaign team also issued well-wishes to the Texas resident. A source close to the alleged victim says that during her visit to the police station Thursday night she volunteered to take a polygraph test after some people question her account of what happened.
Executive director of the College Republicans National Committee, said Todd was volunteering through his organization and that she had taken a year off to work on the campaign.
He said that her attacker became enraged when he saw she had the McCain bumper sticker, and yelled, "You are one of those McCain people."

Tuesday, October 21, 2008

The Audacity of Barack Obama
He thinks liberals can get beyond the old debate by finally winning it.


Any politician who has taken on Bill and Hillary Clinton's national political machine and won should not be underestimated. Yet Republicans as well as many Democrats persist in underrating Barack Obama's electoral talents and, above all, his soaring political ambition.
[Claremont Institute]

His writerly mind, professorial bearing and effortless self-control make it difficult to take his measure as a politician. He can seem cool, detached, unusually introspective. As a wag at the Financial Times put it, if John McCain's life story is the stuff of Hollywood movies, Mr. Obama's is like an off-Broadway play—it lacks action but is full of internal monologues. Raised in Hawaii and Indonesia, his father a Kenyan, his mother a sweet Midwestern atheist, Mr. Obama as a young man thought himself something of an outsider wherever he went. Smart and popular, he seemed to prefer to maintain his emotional distance, partly because he was confused about his own identity (as he explains in "Dreams from My Father," the autobiography he published at age 33), and partly because he feared being trapped in places that were too small for his talents.

Eager to find himself by finding a community to which he could belong, he was struck, nonetheless, by the flaws or limits of every race, culture and country he encountered. Unlike other intelligent human beings who have made the same discovery, Mr. Obama did not lower his expectations but decided that, just as he could and did choose to refashion his own identity, communities could do the same, with a little help. He spent three years as a community organizer in Chicago, but was disillusioned with the results. Eventually he found in politics, and especially in political oratory, the path he was seeking: the way to redeem the sins of an existing community by leading it to a vision of its future, better self; and to introduce himself, proudly biracial, multicultural and progressive, as living proof that the divisions and disappointments of the past can be overcome, if never quite left behind.

A New Majority

Part of the past that Mr. Obama wants to transcend is the recent history of the Democratic Party. In "The Audacity of Hope," his second autobiography (focused on his Senate years, not quite two of them at that point) and the source of his most thoughtful campaign speeches, he treats the party elders respectfully, but not exactly warmly. He mentions Teddy Kennedy three times, calling him one of the Senate's best storytellers; devotes a page to Al Gore's emotions after his "precipitous fall"; and acknowledges "the Kerry people" who invited him to speak at the 2004 Democratic Convention. Mr. Obama goes out of his way to emphasize that he is a newcomer to the party who couldn't even get a floor pass to the 2000 convention. Reflecting on the elections of 2000 and 2004, he confesses that "I sometimes felt as if I were watching the psychodrama of the Baby Boom generation—a tale rooted in old grudges and revenge plots hatched on a handful of college campuses long ago."

Mr. Obama praises Bill Clinton more highly than any other contemporary Democrat, because Mr. Clinton recognized the staleness of the old political debate between left and right and came close to moving beyond it with his politics of the Third Way, which "tapped into the pragmatic, nonideological attitude of the majority of Americans." But Mr. Clinton blew it, and the author gradually lets you know it. First, he regrets Mr. Clinton's "clumsy and transparent" gestures to the Reagan Democrats, and his "frighteningly coldhearted" use of other people (e.g., "the execution of a mentally retarded death row inmate" before a crucial primary). Then Mr. Obama notes sadly that Mr. Clinton's policies—"recognizably progressive if modest in their goals"—had commanded broad public support, but that the president had never been able, "despite a booming economy," to turn that support into a governing coalition. Finally, he gently accuses Mr. Clinton of the worst offense of all: strengthening the forces of conservatism. Due to his "personal lapses" and careless triangulations that ceded more and more ground to the right, Mr. Clinton prepared the way for George W. Bush's victory in 2000.

In his campaign speeches, Mr. Obama can't afford to be so candid—he needs Hillary and Bill's supporters, after all—but he subtly makes his point. For example, in his acceptance speech in Denver, the single biggest speech of the campaign, he laid at Bill Clinton's feet the oldest backhanded compliment in the books, thanking the former president "who last night made the case for change as only he can make it." That's a disguised double insult: It reminds the discerning ear of Mr. Clinton's characteristic bloviation, and then of his political failings (when you see Mr. Clinton, you're reminded why the Democrats need Mr. Obama).

Granted, Mr. Obama holds Mr. Clinton to higher standards than he does the other party elders. Jimmy Carter, Mr. Gore, Mr. Kerry—these gentlemen lacked the political talent that Mr. Clinton squandered, in Mr. Obama's estimation, and they were innocent of political daring. Their shortcomings are palliated, to some extent, by the fact that the times were not auspicious. Still, Mr. Obama is fairly clear that if the party is to move forward it must return to earlier exemplars, and especially to its heroes who brought about major political changes lasting for a generation or more. This was the context of his comparison of Mr. Clinton to Ronald Reagan, which raised such a ruckus early in the campaign:

I do think that, for example, the 1980 election was different. I think Ronald Reagan changed the trajectory of America in a way that Richard Nixon did not and in a way that Bill Clinton did not. He put us on a fundamentally different path because the country was ready for it.

The comparison of Mr. Clinton to Nixon is delicious in its own right, but Mr. Obama's larger point is that Mr. Clinton was no Reagan, partly because the times were different but mostly, as he points out in his book, because Mr. Clinton was undisciplined and conceded too much to the right. As tokens of Mr. Obama's seriousness about fundamental political change, "The Audacity of Hope" mentions Franklin D. Roosevelt more often that it does any living Democratic politician; and it features a long, interesting discussion of the Declaration of Independence and the Constitution, the political point of which is to re-establish the Democrats' claim to speak for American ideals, the touchstone of every electoral realignment.

Thus the commentators who interpret Mr. Obama as a new kind of postpartisan political figure get it exactly wrong. It's true that he wants to stop "arguing about the same ole stuff," as he told Planned Parenthood; he wants to move beyond the decades-long debate between liberalism and conservatism. Bill Clinton wished for the same thing in 1992, as did George W. Bush in 2000. The 42nd and 43rd presidents had doctrines that they hoped would precipitate this magic synthesis—the Third Way and compassionate conservatism, respectively. What's interesting, as political scientist James W. Ceaser noted in these pages, is that Mr. Obama does not feel the need for such a doctrine. Nor does John McCain. The 2008 race is taking place squarely within the familiar ideological framework of liberalism and conservatism, but with Mr. McCain promising some maverick departures from the norm (while still accepting the norm), and Mr. Obama talking up hope and the need for change. The change needed, however, is for nothing less than a full-blown electoral earthquake that will permanently shatter the 50/50 America of the past four presidential elections. He thinks liberals can get beyond the old debate by finally winning it.

"Eking out a bare Democratic majority isn't good enough," he writes in "The Audacity of Hope." "What's needed is a broad majority of Americans—Democrats, Republicans, and independents of good will." After the New Hampshire primary, he told his supporters, "You can be the new majority who can lead this nation out of a long political darkness." A month later, after winning the Wisconsin primary, he explained what he called "my central premise," that "the only way we will bring about real change in America is if we can bring new people into the process, if we can attract young people, if we can attract independents, if we can stop fighting with Republicans and try to bring some over to our side. I want to form a working majority for change." That's easier said than done, of course, and likely would require several elections. Speaking to the AFL-CIO in 2003, he laid out the long march that would be necessary:

I happen to be a proponent of a single-payer universal health care program . . . a single-payer health care plan, a universal health care plan. And that's what I'd like to see. But as all of you know, we may not get there immediately. Because first we have to take back the White House, we have to take back the Senate, and we have to take back the House.

As a matter of fact, he is not officially a proponent of a single-payer health care plan; his 2008 platform stops far short of that. Nor has he repeated this sweeping, candid endorsement of his ultimate goal, which might be described by that hoary but accurate epithet, socialized medicine. In the meantime, however, the Democrats in 2006 recaptured both the Senate and the House. If after 2008 the Democratic Party controls all three elective branches, then his "working majority for change" will be in a position to go to work.

A New Lincoln

If the leading edge of Mr. Obama's audacity is his desire to bring about fundamental political change at a time when every other leading Democrat has given up on it or lacks the gifts to achieve it, his daring shows itself too in his confidence that he is the man for the job, the man of the hour. His self-confidence has been noted, of course, and well parodied. It's even been parodied unconsciously, as by Mark Morford, an online columnist in San Francisco:

Many spiritually advanced people I know (not coweringly religious, mind you, but deeply spiritual) identify Obama as a Lightworker, that rare kind of attuned being who has the ability to lead us not merely to new foreign policies or health care plans . . . but who can actually help usher in a new way of being on the planet, of relating and connecting and engaging with this bizarre earthly experiment. These kinds of people actually help us evolve. They are philosophers and peacemakers of a very high order, and they speak not just to reason or emotion, but to the soul.

Yet the fact is that the precise character of Mr. Obama's ambition has not been well understood. In his own terms, he seeks to bring about enduring political change even as (to mention those he invokes in this connection) Ronald Reagan, John F. Kennedy, Franklin Roosevelt, Abraham Lincoln, and Thomas Jefferson did before him. (He didn't concur with Reagan's change, to be sure.)

It's Mr. Obama's account of Lincoln that deserves particular attention. Lincolnian language appears and reappears in Mr. Obama's speeches. In fact, he compares himself indirectly and sometimes directly to the first Republican president. The speech that initially put Mr. Obama on the map, his 2002 denunciation of the pending Iraq war, concludes in a poor paraphrase of the Gettysburg Address: "Nor should we allow those who would march off and pay the ultimate sacrifice, who would prove the full measure of devotion with their blood, to make such an awful sacrifice in vain." He announced his candidacy in Springfield, Ill., a place central to Lincoln's political career and site of some of his great speeches, including the "House Divided" and his affecting farewell to the city as he left to assume the presidency. In his speech, Mr. Obama does his best to appropriate Lincoln's memory:

And that is why, in the shadow of the Old State Capitol, where Lincoln once called on a divided house to stand together . . . I stand before you today to announce my candidacy for president. . . . By ourselves, this change will not happen. Divided, we are bound to fail. But the life of a tall, gangly, self-made Springfield lawyer tells us that a different future is possible. He tells us that there is power in words . . . in conviction. That beneath all the differences of race and region, faith and station, we are one people. He tells us that there is power in hope. As Lincoln organized the forces arrayed against slavery, he was heard to say: "Of strange, discordant, and even hostile elements, we gathered from the four winds, and formed and fought the battle through." That is our purpose here today. That's why I'm in this race. Not just to hold an office, but to gather with you to transform a nation. . . . Together, starting today, let us finish the work that needs to be done, and usher in a new birth of freedom on this Earth.

Mr. Obama identifies himself (as we say today) with Lincoln: Abe is not the only "tall, gangly, self-made" lawyer primed for greatness that the audience is supposed to recognize. Though it ends with another paraphrase of the Gettysburg Address, the passage—and the whole speech—is meant to recall Lincoln's "House Divided" speech, which kicked off the Illinois Senate campaign in 1858 against Stephen Douglas. The quotation about the "four winds" is Lincoln's description of the new Republican Party, forged from fragments of the fading Whig and Free Soil parties, and reaching out to antislavery Democrats and centrists.

Thus Mr. Obama compares the new majority he seeks to build to the majority party that Lincoln helped to create. He tries to inspire Democrats by appealing to the founder of the generations-long postbellum Republican majority. This is partisan ambition of a high order, masquerading as high-toned bipartisanship or post-partisanship: Mr. Obama speaks as though Lincoln were trying to overcome the country's divisions by calling for unity, for cooperation in the spirit of national renewal. In fact, Lincoln's point was that the Union would "become all one thing, or all the other." It would become either all free, or all slave. Lincoln's road to unity ran through division, through forcing the country to choose. Mr. Obama's point is similar, despite his soothing language: Our divisions will be healed once the country is safely in the hands of a new liberal, Democratic majority.

MR. Obama spoke in 2005 at the opening of the Lincoln Presidential Library and Museum in Springfield. On that occasion, he talked more of the man himself. Lincoln exhibits "a fundamental element of the American character," he said, "a belief that we can constantly remake ourselves to fit our larger dreams." He hailed Lincoln's "repeated acts of self-creation, the insistence that . . . we can recast the wilderness of the American landscape and the American heart into something better, something finer." The wilderness of the American heart—now that's an expression, and a sentiment, that Lincoln never uttered. Is it Mr. Obama's own view of the American soul's desolation?

Lincoln's life ends up sounding a lot like Mr. Obama's. "Lincoln embodies our deepest myths," Mr. Obama averred. "It is a mythology that drives us still." Here is the stark difference between the two men. Lincoln never thought of himself as pursuing or being driven by a myth, even though his life and death acquired, in the eyes of others, mythic significance. At any rate, when Mr. Obama later contributed a version of the speech to Time magazine, he altered a line to read:

In Lincoln's rise from poverty, his ultimate mastery of language and law, his capacity to overcome loss and remain determined in the face of repeated defeat—in all this, he reminded me not just of my own struggles. He also reminded me of a larger, fundamental element of human life—the enduring belief that we can constantly remake ourselves to fit our larger dreams.

Peggy Noonan, with her usual keen perception, took him to task in The Wall Street Journal for having explained "that he's a lot like Abraham Lincoln, only sort of better." In "The Audacity of Hope," Mr. Obama charmingly relates the story, pooh-poohing the notion that he was seriously "comparing myself to Lincoln." But Ms. Noonan had it right.

Wright and Wrongs

To make possible a new liberal majority, Mr. Obama has to rehabilitate liberalism's reputation, to separate it from the extremist cultural politics of the 1960s and the burden of defending big government. Bill Clinton began this renewal in the 1990s, proclaiming "the era of big government is over" and preaching the Third Way gospel of opportunity, responsibility, and community. Mr. Obama's politics is a continuation and deepening of Mr. Clinton's efforts, aided by a much more favorable political environment—further removed from Reagan's shadow; coming after two terms of a deeply unpopular Republican president; in the midst of two wars, one of them tainted by shifting (and frequently extravagant) aims, premature claims of victory, and strategic mistakes; and with the final two months before the election dominated by a market meltdown frequently said to be the most serious since the Great Depression.

Mr. Obama's debt to Mr. Clinton is real, though usually (especially lately) unacknowledged. Mr. Obama far outdistances Mr. Clinton, however, in telling the story of America in a way that reinforces a renascent liberalism. The term is perhaps inexact, because Mr. Obama (like Hillary Clinton now) prefers to call himself "progressive" rather than liberal. But the difference is tactical and semantic, not substantive. More than any Democratic presidential candidate since JFK and especially FDR, Mr. Obama has an interpretation of American history that justifies what he wants to do. Not incidentally, Mr. Obama's version also has the advantage of countering Reagan's view of the country's history as the working out of American exceptionalism (including divine favor), popular good sense, limited government, free-market economics and moral traditionalism.

Mr. Obama is a good writer whose strength is narrative, and his account of America is a kind of story, mixing social, intellectual and political history, that begins with the founding—with the Declaration of Independence and Constitution. (Not for him is Reagan's emphasis on the Puritans and their "shining city on a hill." In profound ways, for Mr. Obama the black church replaces the Puritans in his understanding of America.) He tries to construct a new consensus view of the country that acknowledges, and contextualizes, traditional views in a way meant to be reassuring. In "The Audacity of Hope" he quotes the Declaration's famous sentence on self-evident truths and then comments: "Those simple words are our starting point as Americans; they describe not only the foundations of our government but the substance of our common creed." Though few Americans could "trace the genesis of the Declaration . . . o its roots in eighteenth-century liberal and republican thought," every American understands its "essential idea":

that we are born into this world free, all of us; that each of us arrives with a bundle of rights that can't be taken away by any person or any state without just cause; that through our own agency we can, and must, make of our lives what we will.

It sounds Lincolnian, until you notice that the "bundle of rights" is not said to be natural, exactly, nor true exactly, but simply understood by Americans without their quite grasping those rights' origin in 18th-century political thought. Would that old understanding, say Jefferson's, still be authoritative for us now, or are we permitted (or forced?) to understand them in a way more congenial to our own felt needs and desires? Mr. Obama soon makes clear that Jefferson and the other founders were less than faithful to the universal principles they proclaimed. Like a good law professor, he lines up evidence and argument on both sides before concluding that, in fact, the founders probably did not understand those principles as universal but rather as confined to the white race. The "spirit of liberty," he writes, "didn't extend, in the minds of the founders, to the slaves who worked their fields, made their beds, and nursed their children." In the end, then, Mr. Obama's interpretation is the opposite of Lincoln's, who devoted some of his finest pages to proving that the founders regarded slavery as a moral and political evil because it violated the rights of man.

The dog that didn't bark is Mr. Obama's renowned speech on race, the one devoted to starting a national conversation on the subject and to putting the Rev. Jeremiah Wright's notorious comments in their proper context. The words "all men are created equal" do not appear in it. And so it is a very different appeal, with a very different view of America, than one would find in, say, Martin Luther King's great speech at the Lincoln Memorial. Mr. Obama mentions the Constitution briefly, noting its "ideal of equal citizenship" and that it "promised its people liberty, and justice, and a union that could be and should be perfected over time." But he does not mention the conclusion that he arrives at in his book, namely, that the Constitution's "people" did not refer to or include blacks, and especially not black slaves. Although he regards both the Declaration and the Constitution as racist documents originally, he does not emphasize the point in his speech because it would confirm Mr. Wright's fundamental charge, that the U.S. is a racist country. And the point of Mr. Obama's speech in Philadelphia, at the National Constitution Center, was not merely to repeat his condemnation of Mr. Wright's remarks "in unequivocal terms" but to put the whole controversy behind him.

In truth, Mr. Obama's evaluation of Mr. Wright's statements was very equivocal. He calls the reverend's charges "not only wrong but divisive," that is, untimely, because the American people are "hungry" for a "message of unity" right now, as delivered by the junior senator from Illinois. Mr. Wright expressed "a profoundly distorted view of this country," Mr. Obama says, "a view that sees white racism as endemic, and that elevates what is wrong with America above all that we know is right with America." What that means becomes clearer a little later, when Mr. Obama declares that "the profound mistake of Rev. Wright's sermons is . . . that he spoke as if our society was static; as if no progress has been made." But Mr. Obama's own candidacy confirms "that America can change. That is the true genius of this nation. What we have already achieved gives us hope—the audacity to hope—for what we can and must achieve tomorrow." In short, Mr. Wright was not wrong that America was a racist nation, with racist principles; he was wrong, however, to speak as though the country is as racist as it used to be. "America can change," not in the sense of living up to its first principles but in the opposite sense of moving away from them. Except, that is, from the deepest principle of all, which expresses "the true genius of this nation"—our belief in change itself.

Mr. Wright's eruptions were dangerous to Mr. Obama not merely because they raised questions about his judgment in having Mr. Wright as his pastor, and because they raised doubts about his ability to be a unifying, postracial figure. They were dangerous above all because they represented a particularly virulent strain of the spirit of 1960s radicalism, and shook Mr. Obama's claim to have left all that behind him and behind his new movement for change. As he said in his second, more decisive repudiation of Mr. Wright (April 29, 2008), "The reason our campaign has been so successful is because we had moved beyond these old arguments." Because he did not actually disagree with Mr. Wright's fundamental charge but could not say so openly, Mr. Obama's reasons for denouncing the reverend became oddly personal. "I don't think that he showed much concern for me," Mr. Obama told reporters. Indeed, Mr. Wright's performance at the National Press Club was "a show of disrespect to me. It's . . . also, I think, an insult to what we've been trying to do in this campaign."

A Renewed Liberalism

But Mr. Obama disagrees emphatically with Mr. Wright on the question of change. He thinks Mr. Wright is trapped in the past, even as Mr. McCain and the Republicans are—two very different pasts, doubtless, but equally out of touch with the country and its future. A proper understanding of America's past—centered on change and the country's openness to it—will make sense of the present and liberate us to make a brighter, more unified future, claims Mr. Obama. His understanding of the past thus pays lip service to such terms as self-evident truths, original intent and first principles, but quickly changes the subject to values, visions, dreams, ideals, myths and narratives. This is a postmodern "move." We can't know or share truth, postmodernists assert, but we can share stories, and thus construct a community of shared meaning.

At times, Mr. Obama seems to agree with this. "Implicit . . . in the very idea of ordered liberty," he writes in "The Audacity of Hope," is "a rejection of absolute truth, the infallibility of any idea or ideology or theology or 'ism,' any tyrannical consistency that might lock future generations into a single, unalterable course." Is the idea that human freedom is right, slavery wrong, thus to be rejected lest we embrace an "absolute truth"? After criticizing the founders for allegedly overlooking precisely this universal principle, Mr. Obama now warns against all such truths. More remarkable still, he praises the same founders for being "suspicious of abstraction"! "It may be the vision of the Founders that inspires us," he writes, "but it was their realism, their practicality and flexibility and curiosity, that ensured the Union's survival." In other words, the founders' integrity is shown precisely by their not believing too deeply in their own principles. Their deepest principle, so to say, was their sheer flexibility or openness to change.

Yet Mr. Obama is by no means a complete postmodernist. As a decent man, he believes in justice. (Accordingly, in yet another twist, he honors Lincoln for pursuing Lincoln's "own absolute truths" with a saving "humility.") And as a self-described progressive, he believes in change, i.e., he believes that change is almost always synonymous with improvement. He is heartened by the fact that political and constitutional change led to the Union becoming all free. He doesn't dwell on the fact that change could have led, instead, as Lincoln had feared, to the Union becoming all slave.

As an African-American, he knows of course that blacks had to wait a long time for change to be their friend. So he is no simpleminded progressive. In fact, what's most interesting about him as a writer is his struggle with these powerful, and conflicting, intellectual currents.

As a politician, however, he treads an easier, more familiar path. He sets up, in "The Audacity of Hope," a debate between Justice Antonin Scalia's and Justice Stephen Breyer's opinions on how to interpret the Constitution. After much toing-and-froing—"I'm not unsympathetic to Justice Scalia's position. . . . I understand the strict constructionists' reverence for the Founders . . ."—Mr. Obama comes down, surprise, on Justice Breyer's side. The Constitution "is not a static but rather a living document, and must be read in the context of an ever-changing world." He expressed the same point when he announced his presidential candidacy: "The genius of our founders is that they designed a system of government that can be changed." That sounds, and is, anodyne—in an "ever-changing world," how much genius does it take to design a government that can change?—but it's the only formulation that permits him to show that the founders were the original progressives.

Mr. Obama sees the American story as a blend of two themes, individualism (symbolized in the Declaration) and unity (symbolized in the Constitution's commitment to "a more perfect Union"). The latter phrase, plucked from the Preamble, has long been a favorite of liberals, and was used in the same way by, for example, Bill Clinton. Unity means being your brother's, and sister's, keeper; it means coming together "as one American family." Mr. Obama explains: "if fate causes us to stumble or fall, our larger American family will be there to lift us up." He doesn't explain who get to be the parents in our new national family. Membership in this community confers or protects our "dignity," in the sense of guaranteeing "a basic standard of living" and effectively sharing "life's risks and rewards for the benefit of each and the good of all." Conservatives prefer to leave us "to face fate by ourselves," he notes, because they believe in "the Social Darwinist idea," which "requires no sacrifice on the part of those . . . who have won life's lottery."

Thus unity is for the sake of "dignity and respect," which require both "social justice" and "economic justice." The latter ramifies widely, demanding, for instance, that "if you work in America you should not be poor"; that a college education should be every child's "birthright"; and that every American should have broadband access. Mr. Obama does not follow FDR, who turned such socioeconomic goods into rights and called for enshrining them in a Second Bill of Rights. Chastened by the right-wing and middle-class backlash against welfare rights, MR. Obama again follows the example of Bill Clinton, who reconceived such benefits as components of "opportunity." As Mr. Obama presents it: "Opportunity is yours if you're willing to reach for it and work for it. It's the idea that while there are few guarantees in life, you should be able to count on a job that pays the bills; health care for when you get sick; a pension for when you retire; an education for your children that will allow them to fulfill their God-given potential." These are not rights, exactly, because that would imply big government to provide them. These are things that government will guarantee

Friday, October 17, 2008

A Liberal Supermajority
Get ready for 'change' we haven't seen since 1965, or 1933.


If the current polls hold, Barack Obama will win the White House on November 4 and Democrats will consolidate their Congressional majorities, probably with a filibuster-proof Senate or very close to it. Without the ability to filibuster, the Senate would become like the House, able to pass whatever the majority wants.

Though we doubt most Americans realize it, this would be one of the most profound political and ideological shifts in U.S. history. Liberals would dominate the entire government in a way they haven't since 1965, or 1933. In other words, the election would mark the restoration of the activist government that fell out of public favor in the 1970s. If the U.S. really is entering a period of unchecked left-wing ascendancy, Americans at least ought to understand what they will be getting, especially with the media cheering it all on.

The nearby table shows the major bills that passed the House this year or last before being stopped by the Senate minority. Keep in mind that the most important power of the filibuster is to shape legislation, not merely to block it. The threat of 41 committed Senators can cause the House to modify its desires even before legislation comes to a vote. Without that restraining power, all of the following have very good chances of becoming law in 2009 or 2010.

- Medicare for all. When HillaryCare cratered in 1994, the Democrats concluded they had overreached, so they carved up the old agenda into smaller incremental steps, such as Schip for children. A strongly Democratic Congress is now likely to lay the final flagstones on the path to government-run health insurance from cradle to grave.

Mr. Obama wants to build a public insurance program, modeled after Medicare and open to everyone of any income. According to the Lewin Group, the gold standard of health policy analysis, the Obama plan would shift between 32 million and 52 million from private coverage to the huge new entitlement. Like Medicare or the Canadian system, this would never be repealed.

The commitments would start slow, so as not to cause immediate alarm. But as U.S. health-care spending flowed into the default government options, taxes would have to rise or services would be rationed, or both. Single payer is the inevitable next step, as Mr. Obama has already said is his ultimate ideal.

- The business climate. "We have some harsh decisions to make," Speaker Nancy Pelosi warned recently, speaking about retribution for the financial panic. Look for a replay of the Pecora hearings of the 1930s, with Henry Waxman, John Conyers and Ed Markey sponsoring ritual hangings to further their agenda to control more of the private economy. The financial industry will get an overhaul in any case, but telecom, biotech and drug makers, among many others, can expect to be investigated and face new, more onerous rules. See the "Issues and Legislation" tab on Mr. Waxman's Web site for a not-so-brief target list.

The danger is that Democrats could cause the economic downturn to last longer than it otherwise will by enacting regulatory overkill like Sarbanes-Oxley. Something more punitive is likely as well, for instance a windfall profits tax on oil, and maybe other industries.

- Union supremacy. One program certain to be given right of way is "card check." Unions have been in decline for decades, now claiming only 7.4% of the private-sector work force, so Big Labor wants to trash the secret-ballot elections that have been in place since the 1930s. The "Employee Free Choice Act" would convert workplaces into union shops merely by gathering signatures from a majority of employees, which means organizers could strongarm those who opposed such a petition.

The bill also imposes a compulsory arbitration regime that results in an automatic two-year union "contract" after 130 days of failed negotiation. The point is to force businesses to recognize a union whether the workers support it or not. This would be the biggest pro-union shift in the balance of labor-management power since the Wagner Act of 1935.

- Taxes. Taxes will rise substantially, the only question being how high. Mr. Obama would raise the top income, dividend and capital-gains rates for "the rich," substantially increasing the cost of new investment in the U.S. More radically, he wants to lift or eliminate the cap on income subject to payroll taxes that fund Medicare and Social Security. This would convert what was meant to be a pension insurance program into an overt income redistribution program. It would also impose a probably unrepealable increase in marginal tax rates, and a permanent shift upward in the federal tax share of GDP.

- The green revolution. A tax-and-regulation scheme in the name of climate change is a top left-wing priority. Cap and trade would hand Congress trillions of dollars in new spending from the auction of carbon credits, which it would use to pick winners and losers in the energy business and across the economy. Huge chunks of GDP and millions of jobs would be at the mercy of Congress and a vast new global-warming bureaucracy. Without the GOP votes to help stage a filibuster, Senators from carbon-intensive states would have less ability to temper coastal liberals who answer to the green elites.

- Free speech and voting rights. A liberal supermajority would move quickly to impose procedural advantages that could cement Democratic rule for years to come. One early effort would be national, election-day voter registration. This is a long-time goal of Acorn and others on the "community organizer" left and would make it far easier to stack the voter rolls. The District of Columbia would also get votes in Congress -- Democratic, naturally.

Felons may also get the right to vote nationwide, while the Fairness Doctrine is likely to be reimposed either by Congress or the Obama FCC. A major goal of the supermajority left would be to shut down talk radio and other voices of political opposition.

- Special-interest potpourri. Look for the watering down of No Child Left Behind testing standards, as a favor to the National Education Association. The tort bar's ship would also come in, including limits on arbitration to settle disputes and watering down the 1995 law limiting strike suits. New causes of legal action would be sprinkled throughout most legislation. The anti-antiterror lobby would be rewarded with the end of Guantanamo and military commissions, which probably means trying terrorists in civilian courts. Google and MoveOn.org would get "net neutrality" rules, subjecting the Internet to intrusive regulation for the first time.

It's always possible that events -- such as a recession -- would temper some of these ambitions. Republicans also feared the worst in 1993 when Democrats ran the entire government, but it didn't turn out that way. On the other hand, Bob Dole then had 43 GOP Senators to support a filibuster, and the entire Democratic Party has since moved sharply to the left. Mr. Obama's agenda is far more liberal than Bill Clinton's was in 1992, and the Southern Democrats who killed Al Gore's BTU tax and modified liberal ambitions are long gone.

In both 1933 and 1965, liberal majorities imposed vast expansions of government that have never been repealed, and the current financial panic may give today's left another pretext to return to those heydays of welfare-state liberalism. Americans voting for "change" should know they may get far more than they ever imagined.

Thursday, October 16, 2008

Mortgage Mess
Speaking of blame, another scheduled witness is Eugene Ludwig, who was Bill Clinton's Comptroller of the Currency in the 1990s. In 2000, Haverford College's magazine reported that "Ludwig remains proudest . . . of his efforts to compel bank compliance with fair-lending laws and his revitalization of the Community Reinvestment Act (CRA), a 1977 law requiring banks to invest in poorer neighborhoods and improve lending and service to low- and moderate-income borrowers. Although branded an 'activist' for his vigorous support of the act . . . he points to the cold, hard facts to justify his tactics. After just one Justice Department referral in the OCC's previous 129 years, Ludwig's tenure witnessed 27 fair-lending cases, resulting in tens of millions of dollars in fines against violators." Will he testify today that noneconomic loans were entirely the fault of bankers?

What do you think of Mayor Bloomberg’s attempt to change the term-limit laws (not by referendum but rather legislative directive)?

Here’s some historical context of how the NY Times thinks about changing the term-limit law:

While some call for changing the rules so that Bloomberg could stand for re-election next year, the NYT opinion is noteworthy. The New York Times complained that the term-limits law "is particularly unappealing now because . . . it would deny New Yorkers -- at a time when the city's economy is under great stress -- the right to decide for themselves whether an effective and popular mayor should stay in office."
The paper took the opposite view seven years ago, when there was talk of extending the second term of Bloomberg's predecessor, Rudy Giuliani, in the wake of 9/11. "To suggest that the city would be incapable of getting along without Mr. Giuliani . . . undermines New York's sense of self-sufficiency," said the Gray Lady. "While Mr. Giuliani has been a great leader during this crisis, the truth is that no one is indispensable."
How Times change.

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Wednesday, October 15, 2008

The Barack Obama You Should Know
1. Jesse Jackson Says
The most important change would occur in the Middle East, where "decades of putting Israel's interests first" would end. Jackson believes that, although "Zionists who have controlled American policy for decades" remain strong, they'll lose a great deal of their clout when Barack Obama enters the White House.

"Share the wealth" is scary for those trying to create it..
2. Plumber Asks Obama
Conservatives ripped Obama after he was caught on video telling an Ohio plumber that he intends to take the profits of small-business owners and "spread the wealth around" to those with lesser incomes.
The fracas over Obama's tax plan broke out Sunday outside Toledo when Joe Wurzelbacher approached the candidate.
Wurzelbacher said he planned to become the owner of a small plumbing business that will take in more than the $250,000 amount at which Obama plans to begin raising tax rates.
"Your new tax plan is going to tax me more, isn't it?" the blue-collar worker asked.
After Obama responded that it would, Wurzelbacher continued: "I've worked hard . . . I work 10 to 12 hours a day and I'm buying this company and I'm going to continue working that way. I'm getting taxed more and more while fulfilling the American Dream."
"It's not that I want to punish your success," Obama told him. "I want to make sure that everybody who is behind you, that they've got a chance for success, too. ab
Then, Obama explained his trickle-up theory of economics.
"My attitude is that if the economy's good for folks from the bottom up, it's gonna be good for everybody. I think when you spread the wealth around, it's good for everybody."

Barack Obama tells Ohio plumber Joe Wurzelbacher he intends to "spread the wealth around."


3. New Poll
80% of American CEOs prefer John McCain to Obama 920%) in a new CEO Magazine poll

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Monday, October 13, 2008


Can you image Bill Ayers Sleeping in the Lincoln Bedroom?

Given that unremorseful Bill Ayers has said in speaking of his Weather Underground/terrorist days “I didn’t do enough”(1) and given that the Obama campaign has said that the two are “friends” If Obama wins the presidency and given that presidents very often have friends sleep over at the White House, should we be concerned that Bill Ayers might blow up, say the Lincoln Bedroom?

Before you fall into the trap of "that was a long time ago", consider this quote from Ayers:

So, would Mr. Ayers do it all again, he is asked? "I don't want to discount the possibility,'' he said.



(1) NY Times interview September 11, 2001
http://query.nytimes.com/gst/fullpage.html?res=9F02E1DE1438F932A2575AC0A9679C8B63&scp=1&sq=bill%20ayers%20interview%20september%2011,%202001&st=cse

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Nobel Joke

This is nothing short of a joke…
Princeton University Professor Paul Krugman wins the Nobel Prize in Economics.

IT goes to show that all one has to do is criticize the US govt in general and Pres Bush specifically to win the “hearts and minds” of the Swedes.
He used to be an economists abut has turned into a liberal hatchet-man.

Just to give you a sample of this "economist's" "intellectual" thinking:
``Mr. Bush has degraded our government and undermined the rule of law,'' Krugman wrote in a column on May 18, 2007. ``He has led us into strategic disaster and moral squalor.''=Krugman

``Paul Krugman the economist died a long time ago; the man named Paul Krugman is a public intellectual,'' Luskin, a contributing editor for National Review Online, said in an interview. ``He is not in the same category as John Maynard Keynes, he is in the same category as Oprah Winfrey. To give it to him is to dishonor the Nobel Prize.''

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Friday, October 10, 2008

Global Poverty Initiative
Obama’s “Global Poverty Act” (S.2433) was submitted to the US Senate, but didn’t pass. The legislation would commit the U.S. to spending 0.7 percent of gross national product on foreign aid, which amounts to a phenomenal 13-year total of $845 billion over and above what the U.S. already spends.

A release from the Obama Senate office about the bill declares, “In 2000, the U.S. joined more than 180 countries at the United Nations Millennium Summit and vowed to reduce global poverty by 2015. We are halfway towards this deadline, and it is time the United States makes it a priority of our foreign policy to meet this goal and help those who are struggling day to day.”

The legislation itself requires the President “to develop and implement a comprehensive strategy to further the United States foreign policy objective of promoting the reduction of global poverty, the elimination of extreme global poverty, and the achievement of the Millennium Development Goal of reducing by one-half the proportion of people worldwide, between 1990 and 2015, who live on less than $1 per day.”

Jeffrey Sachs, who runs the U.N.’s “Millennium Project,” (and he is an Obama supporter) says that the U.N. plan to force the U.S. to pay 0.7 percent of GNP in increased foreign aid spending would add $65 billion a year to what the U.S. already spends. Over a 13-year period, from 2002, when the U.N.’s Financing for Development conference was held, to the target year of 2015, when the U.S. is expected to meet the “Millennium Development Goals,” this amounts to $845 billion. And the only way to raise that kind of money, Sachs has written, is through a global tax, preferably on carbon-emitting fossil fuels.

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Dodd and Countrywide

The Senator should take the witness stand.

Former Lehman Brothers CEO Dick Fuld was under oath Monday when he was grilled on Capitol Hill about his role in the current financial meltdown. But if Members really want to understand the credit mania, they should also call Chris Dodd.

[Review & Outlook]

Senate Banking Committee Chairman Chris Dodd, (D., Conn.).

The Connecticut Senator has been out front denouncing the "companies that form the foundation of our financial markets," for "their insatiable appetite for risk." He has also decried "reckless, careless and sometimes unscrupulous actors in the mortgage lending industry" and he has proclaimed that "American taxpayers deserve to know how we arrived at this moment." To that end, we propose he take the stand -- under oath.

Former Countrywide Financial loan officer Robert Feinberg says Mr. Dodd knowingly saved thousands of dollars on his refinancing of two properties in 2003 as part of a special program the California mortgage company had for the influential. He also says he has internal company documents that prove Mr. Dodd knew he was getting preferential treatment as a friend of Angelo Mozilo, Countrywide's then-CEO.

That a "Friends of Angelo" program existed is not in dispute. It was crucial to the boom that Countrywide enjoyed before its fortunes turned. While most of the company was aggressively lending to risky borrowers and off-loading those mortgages in bulk to Fannie Mae and Freddie Mac, Mr. Feinberg's department was charged with making sure those who could influence Fannie and Freddie's appetite for risk were sufficiently buttered up. As a Banking Committee bigshot, Mr. Dodd was perfectly placed to be buttered.

In response to the charge that he knew he was getting favors, Mr. Dodd at first issued a strong denial: "This suggestion is outrageous and contrary to my entire career in public service. When my wife and I refinanced our loans in 2003, we did not seek or expect any favorable treatment. Just like millions of other Americans, we shopped around and received competitive rates." Less than a week later he acknowledged he was part of Countrywide's VIP program but claimed he thought it was "more of a courtesy."

Mr. Feinberg, who oversaw "Friends of Angelo" from 2000 to 2004, begs to differ. He told us that as the loan officer in charge he was supposed to make sure that the "VIP" clients knew at every step of the process that they were getting a special deal because they were "Friends of Angelo."

"People are referred into that department as 'very important people.' You're told that your loan is priced from Angelo. As the 'Friends of Angelo department,' [the department] has to give them a sense of importance and explain the reduction of fees and the rate as a result of being a 'Friend of Angelo,'" he says. According to a report by Dan Golden in Condé Nast Portfolio in August, other VIPs included Senator Kent Conrad. Mr. Golden reported that "Countrywide also offered special discounts to congressional staffers involved in housing issues."

As to Mr. Dodd, Mr. Feinberg says he spoke to the Senator once or twice and mostly to his wife and that like other FOAs Mr. Dodd got "a float down," which means that even after he had a preferred rate, when the prevailing rate dropped just before the closing, his rate was reduced again. Regular borrowers would pay extra for a last-minute adjustment, but not FOAs. "They were aware of it because they were notified and when they went to the closing they would see it," Mr. Feinberg says, adding that he "always let people in the program know that they were getting a very good deal because they were 'Friends of Angelo.'" All of this matters because Mr. Dodd was one of those encouraging Fan and Fred to plunge into "affordable housing" loans made by companies like Countrywide.

One indicator of his influence is the $165,400 in campaign contributions -- more than to any other politician -- that Fan and Fred have given him since 1989, according to the Center for Responsive Politics. These contributions are legal. But favors like those Mr. Dodd is alleged to have received may not be. Mr. Feinberg says he went public with his story because when he heard Senator Dodd on TV talking about predatory lending, he felt it was "hypocritical" and he says, "I just thought, 'This is wrong.'"

Mr. Dodd hasn't yet released his copies of the mortgage documents, though he promised to do so more than two months ago. His office told us this week they'd get back to us on that. Meanwhile, presumably the Justice Department can have Mr. Feinberg's Countrywide documents, if it's interested.

Thursday, October 09, 2008

It is worse than you think….here's why:
As stated previously, the magical # that everyone - politicians, media, etc. use for the so-called "uninsured" is 40mn or 47mn what no one will talk about - except the US Census, is that many of the uninsured are not even Americans(1) . The way the media and politicians speak about this subject is coded. They say "40mn people in this country don't have health insurance" .The reason is that neither McCain or Obama want to have to discuss providing health insurance to millions of illegal aliens. Now should the society decide to make the expenditure -that will surely incentivize non-Americans to come here, to provide healthcare for every person in this country -, well that would be a different question and the media and politicians should speak truthfully about it. We already do cover emergency healthcare -just ask the hospital in California and Texas how much it costs them to cover illegal aliens. A debate worth having….but a different debate than "universal healthcare" in today's context.

From US Census:….
Uninsured who are NOT U.S. CITIZENS IS 45% of the 47 million.

Broken down by age, 18 - 24 years old - 29.3% of the 47 million.

25 - 35 years old - 26.9% of the 47 million.

Broken down by salary, $75,000 or more per year - 8.5% of the 47 million

IF mandatory health care is required for everyone in the USA -legally or otherwise, than that is a big incentive for people from, for example, Mexico where the health care system isn't as advanced, to come into the country. Therefore what how much higher than 15mn figure goes…and thus the cost of healthcare in the US.

Of the remaining 25mn or 31mn depending on one's #, a good portion are single men between the ages of 18 and 29 who have under their own analysis based on cost/benefit decided that paying a $1k p/month for health insurance is not worth it.

All children(2), by the way, that don't have parental coverage, are covered by Medicaid. There is also State Children's Health Insurance Program (SCHIP), so anyone trying to say we need insurance for children is misrepresenting the truth.


(1) http://www.census.gov/prod/2007pubs/p60-233.pdf
American Enterprise Institute
(2) http://www.cbpp.org/mcaidprt.htm

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Wednesday, October 08, 2008

Barney Breaks It Down

Who really caused the credit crisis?

[Barney Breaks It Down]

Rep. Barney Frank (D., Mass.)

No one thinks poor or black people are to blame for the lending mania at the root of the mess. But there is little question that it resulted, at least in part, from a push to relax lending standards so as to make it easier for poor and minority borrowers to get mortgages. This in turn created incentives for banks to make bad loans, many of which Fannie Mae and Freddie Mac acquired.

An influential 1992 report from the Boston Fed recommended: "Policies regarding applicants with no credit history or problem credit history should be reviewed. Lack of credit history should not be seen as a negative factor. Certain cultures encourage people to 'pay as you go' and avoid debt." The head of the Boston Fed at the time, Richard Syron, was ousted last month as CEO of Freddie Mac.

Not all Democrats agree with Mr. Frank that such policies are off-limits to criticism. Last week Representative Artur Davis of Alabama said in a statement: "Like a lot of my Democratic colleagues I was too slow to appreciate the recklessness of Fannie and Freddie. I defended their efforts to encourage affordable homeownership when in retrospect I should have heeded the concerns raised by their regulator in 2004. Frankly, I wish my Democratic colleagues would admit when it comes to Fannie and Freddie, we were wrong."

Mr. Davis is a Member of the Congressional Black Caucus.

Monday, October 06, 2008

Biden's Fantasy World

Sarah Palin may not know as much about the world, but at least most of what she knows is true.

In the popular media wisdom, Sarah Palin is the neophyte who knows nothing about foreign policy while Joe Biden is the savvy diplomatic pro. Then what are we to make of Mr. Biden's fantastic debate voyage last week when he made factual claims that would have got Mrs. Palin mocked from New York to Los Angeles?

[Biden's Fantasy World]

Start with Lebanon, where Mr. Biden asserted that "When we kicked -- along with France, we kicked Hezbollah out of Lebanon, I said and Barack said, 'Move NATO forces in there. Fill the vacuum, because if you don't know -- if you don't, Hezbollah will control it.' Now what's happened? Hezbollah is a legitimate part of the government in the country immediately to the north of Israel."

The U.S. never kicked Hezbollah out of Lebanon, and no one else has either. Perhaps Mr. Biden meant to say Syria, except that the U.S. also didn't do that. The Lebanese ousted Syria's military in 2005. As for NATO, Messrs. Biden and Obama may have proposed sending alliance troops in, but if they did that was also a fantasy. The U.S. has had all it can handle trying to convince NATO countries to deploy to Afghanistan.

Speaking of which, Mr. Biden also averred that "Our commanding general in Afghanistan said the surge principle in Iraq will not work in Afghanistan." In trying to correct him, Mrs. Palin mispronounced the general's name -- saying "General McClellan" instead of General David McKiernan. But Mr. Biden's claim was the bigger error, because General McKiernan said that while "Afghanistan is not Iraq," he also said a "sustained commitment" to counterinsurgency would be required. That is consistent with Mr. McCain's point that the "surge principles" of Iraq could work in Afghanistan.

Then there's the Senator's astonishing claim that Mr. Obama "did not say he'd sit down with Ahmadinejad" without preconditions. Yet Mr. Biden himself criticized Mr. Obama on this point in 2007 at the National Press Club: "Would I make a blanket commitment to meet unconditionally with the leaders of each of those countries within the first year I was elected President? Absolutely, positively no."

Or how about his rewriting of Bosnia history to assert that John McCain didn't support President Clinton in the 1990s. "My recommendations on Bosnia, I admit I was the first one to recommend it. They saved tens of thousands of lives. And initially John McCain opposed it along with a lot of other people. But the end result was it worked." Mr. Biden's immodesty aside, Mr. McCain supported Mr. Clinton on Bosnia, as did Bob Dole even as he was running against him for President in 1996 -- in contrast to the way Mr. Biden and Democratic leaders have tried to undermine President Bush on Iraq.

Closer to home, the Delaware blarney stone also invited Americans to join him at "Katie's restaurant" in Wilmington to witness middle-class struggles. Just one problem: Katie's closed in the 1980s. The mistake is more than a memory lapse because it exposes how phony is Mr. Biden's attempt to pose for this campaign as Lunchbucket Joe.

We think the word "lie" is overused in politics today, having become a favorite of the blogosphere and at the New York Times. So we won't say Mr. Biden was deliberately making events up when he made these and other false statements. Perhaps he merely misspoke. In any case, Mrs. Palin may not know as much about the world as Mr. Biden does, but at least most of what she knows is true.

Friday, October 03, 2008

Comments about last night's vice-president debate

Firstly, thought it was funny that the two VP nominees tried to use a catchy phrase – “the ultimate bridge to nowhere” and “say it ain’t so Joe”.

Secondly, he looks like a professional –he looks like someone who has spoken at the podium in the well of the Senate; she obviously does not;

Thirdly, nice of Gwen Ifill to bring up Dick Cheney and use him in a question to Palin; saved Biden from having to make that link Bush=McCain; If Ifill wanted to ask a constitutional question of the two candidates, she didn’t have to bring up Cheney;

Fourthly, you know I have to argue constitutional law….

What Role VP?

Biden incorrectly outlined the constitutional role of the job he's seeking. Biden said the vice president's only role is to support the president and to preside over the Senate "only in a time when in fact there's a tie vote. The Constitution is explicit." The Constitution, though, actually says the vice president is always president of the Senate and legal scholars say he has the right to preside at any time. Early vice presidents, such as Thomas Jefferson, actively exercised that role, the vice president still keeps offices at the Capitol, and scholars say it wasn't until the middle of the 20th century that the vice president had an office at the executive office building.

The president pro tempore, usually the senior senator from the majority party, takes over only when the vice president is absent. In recent practice, as the vice president has taken a bigger role in the executive, that's meant the Senate operates almost all of the time without the vice president in the chair.

The executive branch is not defined in Article I of the Constitution as Biden said last night. In fact, Article I describes the legislature, while Article II lays out the executive.

As a matter of a constitutional law debate in regards to VP Cheney in my opinion the true controversy is not that he claims VP is part of the legislative branch. I think the problem is that he, in other times ALSO makes the argument that the VP is part of the Executive Branch as in the energy talks, declassifying top-secret intell.

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Thursday, October 02, 2008

Most important presidential characteristic....
We want is someone who can think logically, some to the right answer under stressful conditions….now I disagree that “experience” is a necessary prerequisite to achieve the latter, but it can help. BUT as I stated, there are plenty of examples of people with lots of experience who also turn out to make the wrong decisions- remember Biden wanted to split Iraq up into 4 partitions (his webpage has taken down that plan by the way).

The Founders most definitely considered experienced for example (they set a minimum age requirement for president) but only in relation to being righteous There has been plenty of leaders in the old world that had tons of experience but were abhorrent to the Founders. They fully understood that they were creating a presidential republic and not a parliamentary democracy.

People have a problem with Palin and Obama due to their lack of experience. I cite a recent example of a man from a small town who was a haberdasher and considered too “naive” and “ignorant” –excuse me I am thinking of the Nobel Prize Committee member who used those words to criticize American writers…I digress…

Back to the haberdasher, his name was Harry Truman and even though he had no idea of the biggest US govt military plan (at its peak The Manhattan Project was using 1/7th of the entire electricity generation of the USA), he was able to think clearly, act decisively and end the WWII. It was by no means an easy decision. In fact from three years after WWII till 50yrs after, Truman was criticized for dropping the bomb. From Time Magazine in 1948 to CBS (Rather), ABC (Jennings) 50yrs later many people thought it wrong.

The estimates of the # of Americans that would die trying to take the main island of Japan ranged from 200k to 1mln.

Do you know what the country would have done to a president if after losing 1mln lives the public found out about a single weapon that could have prevented all those deaths?

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Obama Palin No Experience? No Problem

The word "experience" appears 91 times in the Federalist Papers, those distillations of conservative sense and sensibility. Madison, Hamilton and Jay said that truths are "taught" and "corroborated" by experience. These writers were eager to "consult" and be "led" by experience. They spoke of "indubitable" and "unequivocal" lessons from experience, the "testimony" of experience and "the accumulated experience of ages." "Accumulating" experience is "the parent of wisdom" and a "guide" that "justifies," "confirms" and can "admonish."

In 1856, James Buchanan, 65, was 29 years and eight months older than his running mate, John Breckinridge, who was 35. Buchanan could run with that stripling because Buchanan was the most qualified person to run for president, before or since.

At least he was if varied experience in high offices fully defines who is "qualified." But it does not.

Buchanan had been a five-term congressman, then ambassador to Russia, then a two-term senator, then secretary of state, then ambassador to Britain. Buchanan then became perhaps the worst president.

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Who Said What and When in Regards to Fannie Mae and Freddie Mac

House Financial Services Committee hearing, Sept. 10, 2003:

Rep. Barney Frank (D., Mass.): I worry, frankly, that there's a tension here. The more people, in my judgment, exaggerate a threat of safety and soundness, the more people conjure up the possibility of serious financial losses to the Treasury, which I do not see. I think we see entities that are fundamentally sound financially and withstand some of the disaster scenarios. . . .

[What They Said] AP

Clockwise from top left: Sen. Thomas Carper, Rep. Barney Frank, Sen. Robert Bennett, Rep. Maxine Waters, Sen. Chris Dodd and Sen. Charles Schumer.

Rep. Maxine Waters (D., Calif.), speaking to Housing and Urban Development Secretary Mel Martinez:

Secretary Martinez, if it ain't broke, why do you want to fix it? Have the GSEs [government-sponsored enterprises] ever missed their housing goals?

* * *

House Financial Services Committee hearing, Sept. 25, 2003:

Rep. Frank: I do think I do not want the same kind of focus on safety and soundness that we have in OCC [Office of the Comptroller of the Currency] and OTS [Office of Thrift Supervision]. I want to roll the dice a little bit more in this situation towards subsidized housing. . . .

* * *

House Financial Services Committee hearing, Sept. 25, 2003:

Rep. Gregory Meeks, (D., N.Y.): . . . I am just pissed off at Ofheo [Office of Federal Housing Enterprise Oversight] because if it wasn't for you I don't think that we would be here in the first place.

[nowides]

Fannie Mayhem: A History

A compendium of The Wall Street Journal's recent editorial coverage of Fannie and Freddie.

And Freddie Mac, who on its own, you know, came out front and indicated it is wrong, and now the problem that we have and that we are faced with is maybe some individuals who wanted to do away with GSEs in the first place, you have given them an excuse to try to have this forum so that we can talk about it and maybe change the direction and the mission of what the GSEs had, which they have done a tremendous job. . .

Ofheo Director Armando Falcon Jr.: Congressman, Ofheo did not improperly apply accounting rules; Freddie Mac did. Ofheo did not try to manage earnings improperly; Freddie Mac did. So this isn't about the agency's engagement in improper conduct, it is about Freddie Mac. Let me just correct the record on that. . . . I have been asking for these additional authorities for four years now. I have been asking for additional resources, the independent appropriations assessment powers.

This is not a matter of the agency engaging in any misconduct. . . .

Rep. Waters: However, I have sat through nearly a dozen hearings where, frankly, we were trying to fix something that wasn't broke. Housing is the economic engine of our economy, and in no community does this engine need to work more than in mine. With last week's hurricane and the drain on the economy from the war in Iraq, we should do no harm to these GSEs. We should be enhancing regulation, not making fundamental change.

Mr. Chairman, we do not have a crisis at Freddie Mac, and in particular at Fannie Mae, under the outstanding leadership of Mr. Frank Raines. Everything in the 1992 act has worked just fine. In fact, the GSEs have exceeded their housing goals. . . .

Rep. Frank: Let me ask [George] Gould and [Franklin] Raines on behalf of Freddie Mac and Fannie Mae, do you feel that over the past years you have been substantially under-regulated?

Mr. Raines?

Mr. Raines: No, sir.

Mr. Frank: Mr. Gould?

Mr. Gould: No, sir. . . .

Mr. Frank: OK. Then I am not entirely sure why we are here. . . .

Rep. Frank: I believe there has been more alarm raised about potential unsafety and unsoundness than, in fact, exists.

* * *

Senate Banking Committee, Oct. 16, 2003:

Sen. Charles Schumer (D., N.Y.): And my worry is that we're using the recent safety and soundness concerns, particularly with Freddie, and with a poor regulator, as a straw man to curtail Fannie and Freddie's mission. And I don't think there is any doubt that there are some in the administration who don't believe in Fannie and Freddie altogether, say let the private sector do it. That would be sort of an ideological position.

Mr. Raines: But more importantly, banks are in a far more risky business than we are.

* * *

Senate Banking Committee, Feb. 24-25, 2004:

Sen. Thomas Carper (D., Del.): What is the wrong that we're trying to right here? What is the potential harm that we're trying to avert?

Federal Reserve Chairman Alan Greenspan: Well, I think that that is a very good question, senator.

What we're trying to avert is we have in our financial system right now two very large and growing financial institutions which are very effective and are essentially capable of gaining market shares in a very major market to a large extent as a consequence of what is perceived to be a subsidy that prevents the markets from adjusting appropriately, prevents competition and the normal adjustment processes that we see on a day-by-day basis from functioning in a way that creates stability. . . . And so what we have is a structure here in which a very rapidly growing organization, holding assets and financing them by subsidized debt, is growing in a manner which really does not in and of itself contribute to either home ownership or necessarily liquidity or other aspects of the financial markets. . . .

Sen. Richard Shelby (R., Ala.): [T]he federal government has [an] ambiguous relationship with the GSEs. And how do we actually get rid of that ambiguity is a complicated, tricky thing. I don't know how we do it.

I mean, you've alluded to it a little bit, but how do we define the relationship? It's important, is it not?

Mr. Greenspan: Yes. Of all the issues that have been discussed today, I think that is the most difficult one. Because you cannot have, in a rational government or a rational society, two fundamentally different views as to what will happen under a certain event. Because it invites crisis, and it invites instability. . .

Sen. Christopher Dodd (D., Conn.): I, just briefly will say, Mr. Chairman, obviously, like most of us here, this is one of the great success stories of all time. And we don't want to lose sight of that and [what] has been pointed out by all of our witnesses here, obviously, the 70% of Americans who own their own homes today, in no small measure, due because of the work that's been done here. And that shouldn't be lost in this debate and discussion. . . .

* * *

Senate Banking Committee, April 6, 2005:

Sen. Schumer: I'll lay my marker down right now, Mr. Chairman. I think Fannie and Freddie need some changes, but I don't think they need dramatic restructuring in terms of their mission, in terms of their role in the secondary mortgage market, et cetera. Change some of the accounting and regulatory issues, yes, but don't undo Fannie and Freddie.

* * *

Senate Banking Committee, June 15, 2006:

Sen. Robert Bennett (R., Utah): I think we do need a strong regulator. I think we do need a piece of legislation. But I think we do need also to be careful that we don't overreact.

I know the press, particularly, keeps saying this is another Enron, which it clearly is not. Fannie Mae has taken its lumps. Fannie Mae is paying a very large fine. Fannie Mae is under a very, very strong microscope, which it needs to be. . . . So let's not do nothing, and at the same time, let's not overreact. . .

Sen. Jack Reed (D., R.I.): I think a lot of people are being opportunistic, . . . throwing out the baby with the bathwater, saying, "Let's dramatically restructure Fannie and Freddie," when that is not what's called for as a result of what's happened here. . . .

Sen. Chuck Hagel (R., Neb.): Mr. Chairman, what we're dealing with is an astounding failure of management and board responsibility, driven clearly by self interest and greed. And when we reference this issue in the context of -- the best we can say is, "It's no Enron." Now, that's a hell of a high standard.