A blog about whatever is going on in the life and/or mind of Paul Tannahill. You have been warned.
Tuesday, March 31, 2009
Monday, March 30, 2009
Government Cancels Right to Assemble
Remember this report from our nation’s history?
CNN (Continental News Network) Boston, 1773: The city of Boston canceled a proposed protest over tea taxes today, citing the fear that too many people dressed as Indians would be gathered near the wharves. Organizers expressed sadness over the cancellation, but meekly returned to their homes fearful of upsetting the officers of the Crown. Taxmen breathed a sigh of relief as the tar and feathers were put away not to be used this day.
Read more here.
CNN (Continental News Network) Boston, 1773: The city of Boston canceled a proposed protest over tea taxes today, citing the fear that too many people dressed as Indians would be gathered near the wharves. Organizers expressed sadness over the cancellation, but meekly returned to their homes fearful of upsetting the officers of the Crown. Taxmen breathed a sigh of relief as the tar and feathers were put away not to be used this day.
Read more here.
Al Gore Ignores 'Earth Hour'
"… the savior of the environment couldn’t be bothered to turn off the gaudy lights that show off his goofy trees."
Read more here.
Read more here.
Sunday, March 29, 2009
Saturday, March 28, 2009
Thursday, March 26, 2009
The Darwin Award-Winning Thief
I've seen this video on various sites, but it's one of those rare ones that never seems to get old. Enjoy!
Saturday, March 21, 2009
The Myth of Relativism and the Cult of Tolerance
"… relativism is not a new idea. Ever since Protagoras declared, “Man is the measure of all things,” people have been attracted to relativism. Human beings are attracted to relativism -- not because it is true -- they are attracted to it because relativism is easy."
Read this fascinating piece in its entirety at AmericanThinker.com.
Read this fascinating piece in its entirety at AmericanThinker.com.
Why I Carry a Gun
PEOPLE ASK WHY?
Why I Carry a Gun
My old grandpa said to me son, "There comes a time in every man's life when he stops bustin' knuckles and starts bustin' caps and usually it's when he becomes too old to take an ass whoopin'.
I don't carry a gun to kill people.
I carry a gun to keep from being killed.
I don't carry a gun to scare people.
I carry a gun because sometimes this world can be a scary place.
I don't carry a gun because I'm paranoid.
I carry a gun because there are real threats in the world.
I don't carry a gun because I'm evil.
I carry a gun because I have lived long enough to see the evil in the world.
I don't carry a gun because I hate the government.
I carry a gun because I understand the limitations of government.
I don't carry a gun because I'm angry.
I carry a gun so that I don't have to spend the rest of my life hating myself for failing to be prepared.
I don't carry a gun because I want to shoot someone.
I carry a gun because I want to die at a ripe old age in my bed, and not on a sidewalk somewhere tomorrow afternoon.
I don't carry a gun because I'm a cowboy.
I carry a gun because, when I die and go to heaven, I want to be a cowboy.
I don't carry a gun to make me feel like a man.
I carry a gun because men know how to take care of themselves and the ones they love.
I don't carry a gun because I feel inadequate.
I carry a gun because unarmed and facing three armed thugs, I am inadequate.
I don't carry a gun because I love it.
I carry a gun because I love life and the people who make it meaningful to me.
Police Protection is an oxymoron. Free citizens must protect themselves.
Police do not protect you from crime, they usually just investigate the crime after it happens and then call someone in to clean up the mess.
Personally, I carry a gun because I'm too young to die and too old to take an ass whoopin'.
..author unknown (but obviously brilliant).
Why I Carry a Gun
My old grandpa said to me son, "There comes a time in every man's life when he stops bustin' knuckles and starts bustin' caps and usually it's when he becomes too old to take an ass whoopin'.
I don't carry a gun to kill people.
I carry a gun to keep from being killed.
I don't carry a gun to scare people.
I carry a gun because sometimes this world can be a scary place.
I don't carry a gun because I'm paranoid.
I carry a gun because there are real threats in the world.
I don't carry a gun because I'm evil.
I carry a gun because I have lived long enough to see the evil in the world.
I don't carry a gun because I hate the government.
I carry a gun because I understand the limitations of government.
I don't carry a gun because I'm angry.
I carry a gun so that I don't have to spend the rest of my life hating myself for failing to be prepared.
I don't carry a gun because I want to shoot someone.
I carry a gun because I want to die at a ripe old age in my bed, and not on a sidewalk somewhere tomorrow afternoon.
I don't carry a gun because I'm a cowboy.
I carry a gun because, when I die and go to heaven, I want to be a cowboy.
I don't carry a gun to make me feel like a man.
I carry a gun because men know how to take care of themselves and the ones they love.
I don't carry a gun because I feel inadequate.
I carry a gun because unarmed and facing three armed thugs, I am inadequate.
I don't carry a gun because I love it.
I carry a gun because I love life and the people who make it meaningful to me.
Police Protection is an oxymoron. Free citizens must protect themselves.
Police do not protect you from crime, they usually just investigate the crime after it happens and then call someone in to clean up the mess.
Personally, I carry a gun because I'm too young to die and too old to take an ass whoopin'.
..author unknown (but obviously brilliant).
Friday, March 20, 2009
Monday, March 16, 2009
Sunday, March 15, 2009
Saturday, March 14, 2009
Thursday, March 12, 2009
Wednesday, March 11, 2009
Tuesday, March 10, 2009
Lack of Response by Obama is an Act of Treason
Fellow Americans,
My name is SSgt Brian Keith. In the past I have let myself blindly believe that serving in the military was as far as my responsibility went when protecting our country. I was wrong. Although I have not been in for 20 years, I did serve active duty, then served as a civil servant and as a reservist. When the election was over, I decided that I could not serve under the current elected president.
Never in my life did I fathom that certain words in the oath I swore would come to fruition, "enemies DOMESTIC". At first I figured that it was just rhetoric from individuals whose party lost in the election, and they were just grasping at radical straws. Although my views are somewhat conservative, I really didn't have a party that I associated with, because it seems that there aren't any representatives. To be representatives, they have to actually respond to and act on the behalf of their constituents. Since we as Americans have allowed this to happen by not getting involved. and not restricting those that we vote into office, I have decided that I must fight for our future. It is a dishonor to our forefathers that we have allowed such a destruction of the Constitution that they put in place to protect us. They protected us, but we are refusing to protect the future, "our children".
Because of the lack of response by Obama and his administration, it is evident to me that this is an act of treason against our country. The American people put their trust in him to protect this nation, the Constitution, and the principles from which it was founded. There is never a good reason to not be forthcoming with the American people, when you are given their trust in the highest office. There is no reasonable excuse not to have already shared what so many have requested, unless their is a direct attack against our foundation.
My fear now is that any information given to rebuff this inquiry will be false. If it is true that he is not legitimately the president, do we have enough patriots that understand how egregious this assault is, and would support the punishment that is warranted? Would our non-representatives actually do anything about it, when they do not even listen to our wishes on any small bill they wish to pass? The point for us to stand has come. We either refuse to let them tear our freedom apart, or we submit. If there are not enough true Americans out there to stop this false government, then I will not be around to see the end result. I swore to support and defend the US Constitution from all enemies foreign and domestic. I will gladly give my life to fulfill my oath if that is what the future of our nation requires.
It is unfortunate that we started to sew these seeds in the last administration. Although President Bush did many things that I know were the right thing, and I was proud he stood by his beliefs and principles, he violated our most important document as well. Yes, he was reacting to an unprecedented attack on our country (and personally I agreed with some of his reactions), I can not stand behind the violations of the Constitution that he perpetuated. I have to defend the constitution at all cost, even when I feel it restricts my desires. This is what order and freedom are founded on.
The past cannot be changed, so all I can do is dedicate my life to the future, and I will report for duty. Anyone who is not dedicated to these basic principles is not American, and doing nothing makes you a member to those ranks. May we have strength and be dedicated in our resolve to not dishonor our founding fathers and to defend the United States of America.
Veritas Vincit
SSgt Brian A Keith
American Patriot
United States Marine
First seen here.
My name is SSgt Brian Keith. In the past I have let myself blindly believe that serving in the military was as far as my responsibility went when protecting our country. I was wrong. Although I have not been in for 20 years, I did serve active duty, then served as a civil servant and as a reservist. When the election was over, I decided that I could not serve under the current elected president.
Never in my life did I fathom that certain words in the oath I swore would come to fruition, "enemies DOMESTIC". At first I figured that it was just rhetoric from individuals whose party lost in the election, and they were just grasping at radical straws. Although my views are somewhat conservative, I really didn't have a party that I associated with, because it seems that there aren't any representatives. To be representatives, they have to actually respond to and act on the behalf of their constituents. Since we as Americans have allowed this to happen by not getting involved. and not restricting those that we vote into office, I have decided that I must fight for our future. It is a dishonor to our forefathers that we have allowed such a destruction of the Constitution that they put in place to protect us. They protected us, but we are refusing to protect the future, "our children".
Because of the lack of response by Obama and his administration, it is evident to me that this is an act of treason against our country. The American people put their trust in him to protect this nation, the Constitution, and the principles from which it was founded. There is never a good reason to not be forthcoming with the American people, when you are given their trust in the highest office. There is no reasonable excuse not to have already shared what so many have requested, unless their is a direct attack against our foundation.
My fear now is that any information given to rebuff this inquiry will be false. If it is true that he is not legitimately the president, do we have enough patriots that understand how egregious this assault is, and would support the punishment that is warranted? Would our non-representatives actually do anything about it, when they do not even listen to our wishes on any small bill they wish to pass? The point for us to stand has come. We either refuse to let them tear our freedom apart, or we submit. If there are not enough true Americans out there to stop this false government, then I will not be around to see the end result. I swore to support and defend the US Constitution from all enemies foreign and domestic. I will gladly give my life to fulfill my oath if that is what the future of our nation requires.
It is unfortunate that we started to sew these seeds in the last administration. Although President Bush did many things that I know were the right thing, and I was proud he stood by his beliefs and principles, he violated our most important document as well. Yes, he was reacting to an unprecedented attack on our country (and personally I agreed with some of his reactions), I can not stand behind the violations of the Constitution that he perpetuated. I have to defend the constitution at all cost, even when I feel it restricts my desires. This is what order and freedom are founded on.
The past cannot be changed, so all I can do is dedicate my life to the future, and I will report for duty. Anyone who is not dedicated to these basic principles is not American, and doing nothing makes you a member to those ranks. May we have strength and be dedicated in our resolve to not dishonor our founding fathers and to defend the United States of America.
Veritas Vincit
SSgt Brian A Keith
American Patriot
United States Marine
First seen here.
Monday, March 09, 2009
Life in the 1500s
This just in via email. I don't know whether any or all of these "historical facts" are actually true, but more than one of them prompted me to scratch my head in wonder:
The next time you are washing your hands and complain because the water temperature isn't just how you like it, think about how things used to be. Here are some facts about the 1500s:
Most people got married in June because they took their yearly bath in May, and still smelled pretty good by June. However, they were starting to smell, so brides carried a bouquet of flowers to hide the body odor. Hence the custom today of carrying a bouquet when getting married.
Baths consisted of a big tub filled with hot water.The man of the house had the privilege of the nice clean water, then all the other sons and men, then the women and finally the children. Last of all the babies. By then the water was so dirty you could actually lose someone in it. Hence the saying, "Don't throw the baby out with the bath water."
Houses had thatched roofs-thick straw-piled high, with no wood underneath. It was the only place for animals to get warm, so all the cats and other small animals (mice, bugs) lived in the roof. During rainy weather, the roof became slippery and sometimes the animals would slip and fall off the roof. Hence the saying, "It's raining cats and dogs."
There was nothing to stop things from falling into the house.This posed a real problem in the bedroom where bugs and other droppings could mess up your nice clean bed. Hence, a bed with big posts and a sheet hung over the top afforded some protection. That's how canopy beds came into existence.
The floor was dirt. Only the wealthy had something other than dirt. The rest were "dirt poor." The wealthy had slate floors that would get slippery in the winter when wet, so they spread thresh (straw) on floor to help keep their footing. As the winter wore on, they added more thresh until, when you opened the door, it would all start slipping outside. A piece of wood was placed in the entranceway as a "thresh hold."
In those old days, they cooked in the kitchen with a big kettle that always hung over the fire. Every day they lit the fire and added things to the pot. They ate mostly vegetables and did not get much meat. They would eat the stew for dinner, leaving leftovers in the pot to get cold overnight and then start over the next day. Sometimes stew had food in it that had been there for quite a while. Hence the rhyme, "Peas porridge hot, peas porridge cold, peas porridge in the pot nine days old."
Sometimes they could obtain pork, which made them feel quite special. When visitors came over, they would hang up their bacon to show off. It was a sign of wealth that a man could "bring home the bacon." They would cut off a little to share with guests and would all sit around and "chew the fat."
Those with money had plates made of pewter. Food with high acid content caused some of the lead to leach onto the food, causing lead poisoning death. This happened most often with tomatoes, so for the next 400 years or so, tomatoes were considered poisonous.
Bread was divided according to status. Workers got the burnt bottom of the loaf, the family got the middle, and guests got the top, or the "upper crust."
Lead cups were used to drink ale or whiskey. The combination would sometimes knock the imbibers out for a couple of days. Someone walking along the road would take them for dead and prepare them for burial. They were laid out on the kitchen table for a couple of days and the family would gather around and eat and drink and wait and see if they would wake up. Hence the custom of "holding a wake."
England is old and small and the local folks started running out of places to bury people. So they would dig up coffins and would take the bones to a bone-house, and reuse the grave. When reopening these coffins, 1 out of 25 coffins were found to have scratch marks on the inside and they realized they had been burying people alive. So they would tie a string on the wrist of the corpse, lead it through the coffin and up through the ground and tie it to a bell. Someone would have to sit out in the graveyard all night (the "graveyard shift.") to listen for the bell; thus, someone could be "saved by the bell" or was considered a "dead ringer."
And that's the truth. Now, whoever said History was boring?
The next time you are washing your hands and complain because the water temperature isn't just how you like it, think about how things used to be. Here are some facts about the 1500s:
Most people got married in June because they took their yearly bath in May, and still smelled pretty good by June. However, they were starting to smell, so brides carried a bouquet of flowers to hide the body odor. Hence the custom today of carrying a bouquet when getting married.
Baths consisted of a big tub filled with hot water.The man of the house had the privilege of the nice clean water, then all the other sons and men, then the women and finally the children. Last of all the babies. By then the water was so dirty you could actually lose someone in it. Hence the saying, "Don't throw the baby out with the bath water."
Houses had thatched roofs-thick straw-piled high, with no wood underneath. It was the only place for animals to get warm, so all the cats and other small animals (mice, bugs) lived in the roof. During rainy weather, the roof became slippery and sometimes the animals would slip and fall off the roof. Hence the saying, "It's raining cats and dogs."
There was nothing to stop things from falling into the house.This posed a real problem in the bedroom where bugs and other droppings could mess up your nice clean bed. Hence, a bed with big posts and a sheet hung over the top afforded some protection. That's how canopy beds came into existence.
The floor was dirt. Only the wealthy had something other than dirt. The rest were "dirt poor." The wealthy had slate floors that would get slippery in the winter when wet, so they spread thresh (straw) on floor to help keep their footing. As the winter wore on, they added more thresh until, when you opened the door, it would all start slipping outside. A piece of wood was placed in the entranceway as a "thresh hold."
In those old days, they cooked in the kitchen with a big kettle that always hung over the fire. Every day they lit the fire and added things to the pot. They ate mostly vegetables and did not get much meat. They would eat the stew for dinner, leaving leftovers in the pot to get cold overnight and then start over the next day. Sometimes stew had food in it that had been there for quite a while. Hence the rhyme, "Peas porridge hot, peas porridge cold, peas porridge in the pot nine days old."
Sometimes they could obtain pork, which made them feel quite special. When visitors came over, they would hang up their bacon to show off. It was a sign of wealth that a man could "bring home the bacon." They would cut off a little to share with guests and would all sit around and "chew the fat."
Those with money had plates made of pewter. Food with high acid content caused some of the lead to leach onto the food, causing lead poisoning death. This happened most often with tomatoes, so for the next 400 years or so, tomatoes were considered poisonous.
Bread was divided according to status. Workers got the burnt bottom of the loaf, the family got the middle, and guests got the top, or the "upper crust."
Lead cups were used to drink ale or whiskey. The combination would sometimes knock the imbibers out for a couple of days. Someone walking along the road would take them for dead and prepare them for burial. They were laid out on the kitchen table for a couple of days and the family would gather around and eat and drink and wait and see if they would wake up. Hence the custom of "holding a wake."
England is old and small and the local folks started running out of places to bury people. So they would dig up coffins and would take the bones to a bone-house, and reuse the grave. When reopening these coffins, 1 out of 25 coffins were found to have scratch marks on the inside and they realized they had been burying people alive. So they would tie a string on the wrist of the corpse, lead it through the coffin and up through the ground and tie it to a bell. Someone would have to sit out in the graveyard all night (the "graveyard shift.") to listen for the bell; thus, someone could be "saved by the bell" or was considered a "dead ringer."
And that's the truth. Now, whoever said History was boring?
Sunday, March 08, 2009
Mystery Men Carry Weapons on WOU Campus!?
In case you haven't heard the story of Jeffery Maxwell, the former Marine (Semper Fi, Jeffery!) who was detained for carrying weapons on the campus of Western Oregon University, read up on some of the stories out there on the issue. And look what I found:
I can neither confirm nor deny knowing the identities of the gentlemen in this picture (taken March 5, 2009), nor whether the weapons appearing on their persons is actually the work of a person skilled in the use of Adobe® Photoshop®. I report. You decide.
"If handguns cause crime, mine is defective."
I can neither confirm nor deny knowing the identities of the gentlemen in this picture (taken March 5, 2009), nor whether the weapons appearing on their persons is actually the work of a person skilled in the use of Adobe® Photoshop®. I report. You decide.
"If handguns cause crime, mine is defective."
Tuesday, March 03, 2009
Wall Street Journal: The Obama Economy
As the Dow keeps dropping, the President is running out of people to blame.
As 2009 opened, three weeks before Barack Obama took office, the Dow Jones Industrial Average closed at 9034 on January 2, its highest level since the autumn panic. Yesterday the Dow fell another 4.24% to 6763, for an overall decline of 25% in two months and to its lowest level since 1997. The dismaying message here is that President Obama's policies have become part of the economy's problem.
Americans have welcomed the Obama era in the same spirit of hope the President campaigned on. But after five weeks in office, it's become clear that Mr. Obama's policies are slowing, if not stopping, what would otherwise be the normal process of economic recovery. From punishing business to squandering scarce national public resources, Team Obama is creating more uncertainty and less confidence -- and thus a longer period of recession or subpar growth.
[Review & Outlook]
The Democrats who now run Washington don't want to hear this, because they benefit from blaming all bad economic news on President Bush. And Mr. Obama has inherited an unusual recession deepened by credit problems, both of which will take time to climb out of. But it's also true that the economy has fallen far enough, and long enough, that much of the excess that led to recession is being worked off. Already 15 months old, the current recession will soon match the average length -- and average job loss -- of the last three postwar downturns. What goes down will come up -- unless destructive policies interfere with the sources of potential recovery.
And those sources have been forming for some time. The price of oil and other commodities have fallen by two-thirds since their 2008 summer peak, which has the effect of a major tax cut. The world is awash in liquidity, thanks to monetary ease by the Federal Reserve and other central banks. Monetary policy operates with a lag, but last year's easing will eventually stir economic activity.
Housing prices have fallen 27% from their Case-Shiller peak, or some two-thirds of the way back to their historical trend. While still high, credit spreads are far from their peaks during the panic, and corporate borrowers are again able to tap the credit markets. As equities were signaling with their late 2008 rally and January top, growth should under normal circumstances begin to appear in the second half of this year.
So what has happened in the last two months? The economy has received no great new outside shock. Exchange rates and other prices have been stable, and there are no security crises of note. The reality of a sharp recession has been known and built into stock prices since last year's fourth quarter.
What is new is the unveiling of Mr. Obama's agenda and his approach to governance. Every new President has a finite stock of capital -- financial and political -- to deploy, and amid recession Mr. Obama has more than most. But one negative revelation has been the way he has chosen to spend his scarce resources on income transfers rather than growth promotion. Most of his "stimulus" spending was devoted to social programs, rather than public works, and nearly all of the tax cuts were devoted to income maintenance rather than to improving incentives to work or invest.
His Treasury has been making a similar mistake with its financial bailout plans. The banking system needs to work through its losses, and one necessary use of public capital is to assist in burning down those bad assets as fast as possible. Yet most of Team Obama's ministrations so far have gone toward triage and life support, rather than repair and recovery.
AIG yesterday received its fourth "rescue," including $70 billion in Troubled Asset Relief Program cash, without any clear business direction. (See here.) Citigroup's restructuring last week added not a dollar of new capital, and also no clear direction. Perhaps the imminent Treasury "stress tests" will clear the decks, but until they do the banks are all living in fear of becoming the next AIG. All of this squanders public money that could better go toward burning down bank debt.
The market has notably plunged since Mr. Obama introduced his budget last week, and that should be no surprise. The document was a declaration of hostility toward capitalists across the economy. Health-care stocks have dived on fears of new government mandates and price controls. Private lenders to students have been told they're no longer wanted. Anyone who uses carbon energy has been warned to expect a huge tax increase from cap and trade. And every risk-taker and investor now knows that another tax increase will slam the economy in 2011, unless Mr. Obama lets Speaker Nancy Pelosi impose one even earlier.
Meanwhile, Congress demands more bank lending even as it assails lenders and threatens to let judges rewrite mortgage contracts. The powers in Congress -- unrebuked by Mr. Obama -- are ridiculing and punishing the very capitalists who are essential to a sustainable recovery. The result has been a capital strike, and the return of the fear from last year that we could face a far deeper downturn. This is no way to nurture a wounded economy back to health.
Listening to Mr. Obama and his chief of staff, Rahm Emanuel, on the weekend, we couldn't help but wonder if they appreciate any of this. They seem preoccupied with going to the barricades against Republicans who wield little power, or picking a fight with Rush Limbaugh, as if this is the kind of economic leadership Americans want.
Perhaps they're reading the polls and figure they have two or three years before voters stop blaming Republicans and Mr. Bush for the economy. Even if that's right in the long run, in the meantime their assault on business and investors is delaying a recovery and ensuring that the expansion will be weaker than it should be when it finally does arrive.
As 2009 opened, three weeks before Barack Obama took office, the Dow Jones Industrial Average closed at 9034 on January 2, its highest level since the autumn panic. Yesterday the Dow fell another 4.24% to 6763, for an overall decline of 25% in two months and to its lowest level since 1997. The dismaying message here is that President Obama's policies have become part of the economy's problem.
Americans have welcomed the Obama era in the same spirit of hope the President campaigned on. But after five weeks in office, it's become clear that Mr. Obama's policies are slowing, if not stopping, what would otherwise be the normal process of economic recovery. From punishing business to squandering scarce national public resources, Team Obama is creating more uncertainty and less confidence -- and thus a longer period of recession or subpar growth.
[Review & Outlook]
The Democrats who now run Washington don't want to hear this, because they benefit from blaming all bad economic news on President Bush. And Mr. Obama has inherited an unusual recession deepened by credit problems, both of which will take time to climb out of. But it's also true that the economy has fallen far enough, and long enough, that much of the excess that led to recession is being worked off. Already 15 months old, the current recession will soon match the average length -- and average job loss -- of the last three postwar downturns. What goes down will come up -- unless destructive policies interfere with the sources of potential recovery.
And those sources have been forming for some time. The price of oil and other commodities have fallen by two-thirds since their 2008 summer peak, which has the effect of a major tax cut. The world is awash in liquidity, thanks to monetary ease by the Federal Reserve and other central banks. Monetary policy operates with a lag, but last year's easing will eventually stir economic activity.
Housing prices have fallen 27% from their Case-Shiller peak, or some two-thirds of the way back to their historical trend. While still high, credit spreads are far from their peaks during the panic, and corporate borrowers are again able to tap the credit markets. As equities were signaling with their late 2008 rally and January top, growth should under normal circumstances begin to appear in the second half of this year.
So what has happened in the last two months? The economy has received no great new outside shock. Exchange rates and other prices have been stable, and there are no security crises of note. The reality of a sharp recession has been known and built into stock prices since last year's fourth quarter.
What is new is the unveiling of Mr. Obama's agenda and his approach to governance. Every new President has a finite stock of capital -- financial and political -- to deploy, and amid recession Mr. Obama has more than most. But one negative revelation has been the way he has chosen to spend his scarce resources on income transfers rather than growth promotion. Most of his "stimulus" spending was devoted to social programs, rather than public works, and nearly all of the tax cuts were devoted to income maintenance rather than to improving incentives to work or invest.
His Treasury has been making a similar mistake with its financial bailout plans. The banking system needs to work through its losses, and one necessary use of public capital is to assist in burning down those bad assets as fast as possible. Yet most of Team Obama's ministrations so far have gone toward triage and life support, rather than repair and recovery.
AIG yesterday received its fourth "rescue," including $70 billion in Troubled Asset Relief Program cash, without any clear business direction. (See here.) Citigroup's restructuring last week added not a dollar of new capital, and also no clear direction. Perhaps the imminent Treasury "stress tests" will clear the decks, but until they do the banks are all living in fear of becoming the next AIG. All of this squanders public money that could better go toward burning down bank debt.
The market has notably plunged since Mr. Obama introduced his budget last week, and that should be no surprise. The document was a declaration of hostility toward capitalists across the economy. Health-care stocks have dived on fears of new government mandates and price controls. Private lenders to students have been told they're no longer wanted. Anyone who uses carbon energy has been warned to expect a huge tax increase from cap and trade. And every risk-taker and investor now knows that another tax increase will slam the economy in 2011, unless Mr. Obama lets Speaker Nancy Pelosi impose one even earlier.
Meanwhile, Congress demands more bank lending even as it assails lenders and threatens to let judges rewrite mortgage contracts. The powers in Congress -- unrebuked by Mr. Obama -- are ridiculing and punishing the very capitalists who are essential to a sustainable recovery. The result has been a capital strike, and the return of the fear from last year that we could face a far deeper downturn. This is no way to nurture a wounded economy back to health.
Listening to Mr. Obama and his chief of staff, Rahm Emanuel, on the weekend, we couldn't help but wonder if they appreciate any of this. They seem preoccupied with going to the barricades against Republicans who wield little power, or picking a fight with Rush Limbaugh, as if this is the kind of economic leadership Americans want.
Perhaps they're reading the polls and figure they have two or three years before voters stop blaming Republicans and Mr. Bush for the economy. Even if that's right in the long run, in the meantime their assault on business and investors is delaying a recovery and ensuring that the expansion will be weaker than it should be when it finally does arrive.
Monday, March 02, 2009
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