Free Markets, Free People

Daily Archives: April 1, 2009


“For anyone who questions why the President has offered this plan, these pledges will be the answer.”

Obama’s army of cultists is very hard at work.

Like (I assume) most other news junkies who closely followed the election, I am still receiving emails from Obama’s political action people. Much of it is aimed at getting the recipients to participate in the “Organizing for America” politicking. It has always seemed a little creepy to me because the election is over. I mean, why the endless campaign unless the real purpose is to propagandize the voters? But I also figured that my biases made it seem worse than it really is. That is, until viewing this video:

Neo-neocon provides an excellent analysis of why this sort of White House driven organizing just seems wrong. For example, she notes the rather troublesome fact that the Obama administration intends for people to simply pledge blind support to his agenda:

Some of the most disturbing things about this video are its vagueness, its focus on Obama himself in what I can only call his cult of personality, and its use of the word “pledge” (at minute :56, note the words, under “The Pledge” and next to a check box, “I support President Obama’s bold plan….”)

The vagueness comes from the fact that whatever people are pledging to support is never described in any detail whatsoever. The petition, or pledge sheet, or loyalty oath, or whatever you want to call it, is very short. It appears that each policy area—energy, health care, education—has but a single sentence describing it.

Think about this for a moment: people are blindly pledging loyalty to policies about which they know virtually nothing except the fact that Obama is behind them, and he says it’s for our own good.

Moreover, reasonable dissent from Obama’s agenda is not possible according to the training video:

The trainer gives only one reason that “the establishment in Washington” would oppose this: opposition to change. Never mind principled opposition; there is no such thing where Obama is concerned. Never mind the cost of these policies in a recession.

Never mind; just sign on the dotted line. And is anyone else as perturbed as I am by this statement: For anyone who questions why the President has offered this plan, these pledges will be the answer.

I think that definitely qualifies as creepy, biases or not.

[HT: Bird Dog]


Our Watchdog Compliant Media

Good to know that the American press is so ready and capable of holding our elected officials accountable in these trying times:

0952 Jeff McCallister from Time magazine tells the BBC: [Obama's] a rock star, he has a gorgeous wife, he is charismatic, young and vital. It’s echoes of the Kennedys in early 1961. It’s hard for me to imagine even if he doesn’t fix the world economy in a day that this is going to go badly for him in political terms in the US or elsewhere.

Just imagine what he would have said if Time magazine were a biased publication!


China Toughens Stance On Greenhouse Gas Emissions

China has stated it won’t be left holding the financial bag in order to cut greenhouse gas emissions. Calling itself a “poorer” nation, China wants the 7 most developed countries to spend 1% of GDP on helping them and others.

China raised the price of its co-operation in the world’s climate change talks yesterday by calling for developed countries to spend 1 per cent of their domestic product helping poorer nations cut greenhouse gas emissions.

The funding – amounting to more than $300bn (£190bn, €240bn) based on Group of Seven countries – would be spent largely on the transfer of “green” technologies, such as renewable energy, to poorer countries.

Gao Guangsheng, head of the climate change office at the National Reform and Development Commission, the Chinese government’s main planning body, said that even such large funds “might not be enough”.

China’s toughened stance comes weeks ahead of United Nations talks in Poland aimed at forging a successor to the Kyoto protocol, whose main provisions expire in 2012.

China also suggests that to this point, emissions reduction has been mostly talk:

“Climate change policies need a lot of money to be invested, however developed countries have not made any substantive promises about how much they are going to spend on,” said Mr Gao. “And they did not fulfil some of the promises they made in the past very well either.”

Of course a number of reasons relate to why those previous promises haven’t been fulfilled. Most of them relate to economics and the realization that their promises are potentially crippling to their economies. That’s effecting the G20 meeting as we speak:

Fears are mounting that environmental issues could be almost entirely sidelined at tomorrow’s G20 summit in London as leaders of the world’s largest economies resist calls to make clear green commitments as part of the meeting’s closing communiqué.

According to Guardian reports, UK officials are leading a last-ditch effort to have clear environmental commitments incorporated into the global economic recovery package that will back up politicians’ repeated calls for a ” green new deal”.

Gordon Brown has said that the inclusion of a commitment on the environment would be one of the tests of the summit’s success, but he admitted that the negotiations were likely to be tough.

The draft version of the communiqué leaked at the weekend made only a passing reference to climate change and it is thought some nations are resisting more detailed commitments to dedicate a proportion of the global stimulus package to green projects that they fear could provide an excuse for protectionist measures.

There is also reluctance to incorporate climate change commitments that could be seen to step on the toes of the UN’s climate change negotiations, which are continuing this week at a separate conference in Bonn, Germany.

This, of course, is good news. Why?

“Everybody seems to be focusing on short-term recovery and getting long-term regulation of the banks right,” he said. “I haven’t heard anything that suggests green recovery and climate change are a major part of the [G20] agenda.”

That’s because that is the priority – not that anyone should expect the G20 to get any of financial part of it right either. However, the priority does keep them from making commitments that would cripple economic growth. And they, of course, know that – which is why they’re avoiding it and spinning it as a desire not to “step on the toes of the UN’s climate change negotiations”.

But back to China – you’ll enjoy this. It is called “having your cake and eating it too”:

[China's climate ambassador Yu Qingtai]… said that China was willing to make a “due contribution” to curbing emissions, but warned that the country would not see its citizens “left in the dark” as a result of binding emission targets and was within its rights to continue to invest in coal power that allows its economy to grow.

Gotta love the Chinese – they make some of our spin merchants seem like rookies. China will decide what its “due contribution” will be while it builds thousands of coal fired plants. In the meantime, per China, it is up to the rest of the world to do what is necessary to curb emissions because, you know, the poorer nations just aren’t up to it. Su Wei, Chinese delegation chief to the UN climate change talks in Bonn:

Su said the success of the Copenhagen summit lies in whether or not the developed countries would make “substantial arrangements” for transferring climate-friendly technologies to and providing funds for developing countries.

Su noted the establishment of three international “mechanisms” is very important among the “substantial arrangements.”

“The first is to set up an international mechanism on climate-friendly technology development and transfer, to eliminate barriers hindering technology transfer, so that developing countries can get access to such technologies,” he said.

“Secondly, we should set up an effective financing mechanism to ensure the developed countries provide adequate funds for developing countries in their bid to cut emissions and fight climate change,” he added.

Thirdly, Su said an “effective supervision mechanism” should beset up to monitor the above-mentioned technology transfer and funding.

Nice. Known as the “you pay, we take” program, this pretty much excuses China (and the rest of the poorer BRIC nations) from doing much of anything. As long as China is convinced that a) enough technology hasn’t been transfered, or b) there hasn’t been enough “effective financing” of the effort, it can c) exempt itself from any cuts while insisting the rest of the developed world stick by its commitments.

Now that is how a master loots your wallet.

~McQ


Geithner Off By A $100 Billion?

It gives you great confidence in someone when they can’t even tell you how much is  left in a fund which they control.  Apparently Treasury Secretary Tim Geithner thinks he has about $132 billion left in TARP funds.

But the Government Accountability Office, a non-partisan federal agency, reports that figure is closer to $32 billion, which is what ABC News and other independent analysts thought.

The Treasury Department continues to insist GAO and others are double-counting commitments and underestimating potential paybacks.

So everyone but Treasury is wrong. I’m willing, at this point, to wait until a final determination is forthcoming, but I have to tell you, if I were a betting person, I wouldn’t be backing Geithner’s position.  And don’t forget how cooperative his department has been with the oversight folks.  

~McQ


The Obama Budget

Senator Tom Coburn’s office provides a few facts about the budget the Obama administration has submitted to Congress. Budget buster would most likely be a better description:

Total Spending:

Total spending under this budget is $3.9 trillion in 2009, or 28% of GDP, the highest level as a share of GDP since World War II.

Discretionary Spending:

This budget provides $1.2 trillion in discretionary budget authority for FY 2010 and increases discretionary spending by $490 billion over 5 years. Total spending in 2009 is 28 percent of GDP.

Mandatory Spending:

The Democrat budget includes $2.2 trillion in mandatory spending for FY 2010, which includes Social Security, Medicare and Medicaid spending.

So there are the basics. And remember the pledge that by 2012 the deficit will be cut in half. Well, with this budget, that doesn’t mean a whole bunch in terms of what’s left in the deficit. It will still most certainly be higher than any deficit prior to this one.

Deficit is one thing, debt is another. Politicians like to use smoke and mirrors with deficit and debt, preferring to ignore debt and talk about how they’re dealing with debt. Well let’s get serious about this – the debt is what we owe, the deficit is just how much more we’re piling up.

Total National Debt Today:

$11.055 trillion

Under the Democrat Budget:

FY 2010: $12.2 trillion
FY 2011: $14.3 trillion
FY 2012: $15.3 trillion
FY 2013: $16.1 trillion
FY 2014: $17.0 trillion

So now we see the bottom line. In FY 2011, we will have more debt than GDP (the US GDP is 13.84 Trillion). And, in all honesty, we don’t have to be – unless we pass this budget. You cannot spend yourself out of debt. And you cannot cure a credit problem by extending more credit.

More:

Public Debt:

This budget adds $4.96 trillion to the public debt by 2014. Debt will be about two-thirds of GDP for the entire budget window, and deficits will be at least $500 billion in each year of the budget window.

Deficit:

The Democrat Budget sets total outlays in FY 2010 at $3.53 trillion and total revenues at $2.29 trillion, for a deficit of $1.24 trillion.

This is truly the beginning of the end. And without cap and trade involved, without universal health care is factored in, just to pay for this mess, taxes are going to go up. The question is how high. And as you’ll see, it’ll be higher than the spin is spinning:

Tax Increases:

Against a baseline that assumes current law tax policy is extended, S. Con. Res. 13 raises taxes by $361 billion and allows for $1.3 trillion in additional tax increases. In addition their budget paves the way for additional tax increases from a proposed cap-and-trade tax in reconciliation.

If you’re wondering where the additional $1.3 trillion in taxation might (will?) come from, Coburn provides a little behind the scenes look at how the Democrats procedurally set up phantom funds that they can initiate through a majority vote anytime they wish to fund favored initiatives:

Deficit Neutral Reserve Funds:

The Democrat budget includes 15 “reserve funds,” which essentially “phantom spending” policy statements that allow the majority to say that they would like to fund a certain initiative. The deficit neutral requirement associated with the reserve funds typically require that taxes be raised in order to pay for the new policy initiative. If all reserve funds were to be fully enacted, total spending would increase by $1.3 trillion, financed by tax increases or spending decreases.

Welcome to “hope and change”. More debt, more spending, bigger deficit, and no end in sight.

Someone will end up paying for all of this mess, and my guess is it will be all of us – for generations.

~McQ