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Any rumors that the President and his muse were on the outs is pure folly, despite Obama been seen speaking out in public alone. From an interview with the TOTUS:

Teleprompter, is the president ever argumentative with you, or is he compliant with your instructions?

Teleprompter Of The United States

Teleprompter Of The United States


Good question. Look, like any relationship, we have our ups and downs. Last year on the campaign trail, The Big Guy came to me and told me that like the cigarettes, he really felt like he needed to start working through his dependency. Then he went out and did this townhall session on health care.

Suffice it to say, we aren’t having those unpleasant discussions any more.

[Photo by www.therightscoop.com; HT: HAHL]

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Good Thing That Doofus Bush Is Out Of Office (UPDATE)

Because Mr. Smooth is much less likely to commit the same sorts of gaffes he was:

Leno asked the president whether the White House bowling alley had been “burned and closed down” in light of Obama’s gutter ball embarrassment on the campaign trail last year.

Obama replied, “No, no. I have been practicing . . . I bowled a 129.”

The audience roared with laughter, and the late-night talk show host assured Obama “that’s very good, Mr. President.” To which Obama interjected, “It’s like — it was like Special Olympics, or something.”

The audience laughed. But the White House didn’t let the comment linger without clarification.

“The president made an offhand remark making fun of his own bowling that was in no way intended to disparage the Special Olympics,” White House spokesman Bill Burton told reporters flying aboard Air Force One after the taping of the show, according to a transcript released by the White House. “He thinks that the Special Olympics are a wonderful program that gives an opportunity to shine to people with disabilities from around the world.”

Ummm. Got it (and yes, I believe it – it was a poor attempt at humor by someone who still hasn’t figured out he needs to be very careful with his speech). That’s what you get when you let him go talk sans the teleprompter. And even with a teleprompter, he’s had some fun lately, hasn’t he?

Irish Prime Minister Brian Cowen was just a few paragraphs into an address at a St. Patrick’s Day celebration at the White House when he realized something sounded way too familiar. Turns out, he was repeating the speech President Barack Obama had just given.

Cowen was set to speak twice at the White House on Tuesday night because there were two different parties going on at the executive mansion. No matter — he would give the same speech to the two different audiences.

But Cowen was 20 seconds into his second address when it dawned on him that he was giving word for word the speech that Obama had just read from the same teleprompter.

Cowen stopped and looked back at the president to say, “That’s your speech.”

Obama laughed and returned to the podium to offer what might have been Cowen’s remarks. In doing so, President Obama thanked President Obama for inviting everyone over.

Of course no one expects these things to get the play they’d have gotten if the “Doofus-in-Chief” had still been in residence. You see, Mr. Obama is “brilliant” and consequently, these little gaffes are of no consequence or importance. On the other hand, Bush was a boob, and thus the same sorts of little gaffes pointed out how horribly the country had erred in picking him.

There. Glad we’ve settled that finally.

UPDATE: Apparently Obama was wrong about “Special Olympics” bowlers as well:

Kolan McConiughey, a Special Olympics competitor who has bowled three perfect 300 games, tells TMZ that the Prez has to score a lot higher than 129 to beat him. Kolan says he bowls an average of 266.

So with a 129, he might not even make the SO cut.

~McQ

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Constitution? We Don’t Need No Stinkin’ Constitution!

As the Senate takes up its version of the violation of Article 1, Section 9 of the Constitution, also known as the bill to tax the hell out of the AIG bonuses, one note of sanity sounds through. Sen. John Kyl:

“I don’t believe that Congress should rush to pass yet another piece of hastily crafted legislation in this very toxic atmosphere, at least without understanding the facts and the potential unintended consequences,” he said.

“Frankly, I think that’s how we got into the current mess,” he added.

Heh … ya think?

Not that it matters – this will most likely pass the Senate as well and be signed into law by “Constitutional Law Professor” and President Barack Obama, but when it ends up in court and is declared unconstitutional, it shouldn’t come as a surprise. The Constitution always takes a back seat to populism and CYA.

~McQ

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The Transcendant Brilliance of Timothy Geithner

So much for I only knew about this last Tuesday”.   And this was the guy Democrats said we had to have beceause his brilliance was such that we should over-look his tax problems?

Treasury Secretary Timothy Geithner told CNN Thursday his department asked Sen. Chris Dodd to include a loophole in the stimulus bill that allowed bailed-out insurance giant American International Group to keep its bonuses.

In an interview with CNN’s Ali Velshi, Geithner said the Treasury Department was particularly concerned the government would face lawsuits if bonus contracts were breached.

Freakin’ amazing.

Geithner told Velshi Thursday he takes full responsibility for the situation.

After spending most of a week denying he even knew about it prior to last week. I don’t think Geithner understands what taking “full responsiblity” really means (or should mean).  Oh, and see Goodwin’s quote below.

~McQ

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Quote Of The Day

Disgust is a bi-partisan concept. Michael Goodwin again:

Ronald Reagan’s famous line that “government is the problem” kept going through my head as the AIG hearing demonstrated the dangers of Washington’s role in the economy. The very people, Republicans and Democrats alike, who can’t balance America’s budget now claim the expertise to run banks, insurance companies and automakers.

If we let them, we’re dumber than they are.

Amen.

~McQ

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The New Gitmo Plan – Release Terrorists In US

Al Qaeda having difficulty establishing sleeper cells in the US? Not a problem – let the Attorney General help:

European justice ministers met with Mr. Holder earlier this week and pressed for details on how many Guantanamo prisoners the U.S. planned to release domestically, as part of any agreement for allies to accept detainees. Mr. Holder said U.S. officials would work to respond to the questions European officials have over U.S. Guantanamo plans.

For “people who can be released there are a variety of options that we have and among them is the possibility is that we would release them into this country,” Mr. Holder said. “That process is ongoing and we’ve not made any determinations or made any requests of anybody at this point.”

Seriously, anyone – sound like a better option than keeping Gitmo open and these prisoners there until and unless another country can be found to take them?

~McQ

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Quote Of The Day

Even AP seems to be figuring it out. Here’s an analysis by AP’s David Espo discussing the AIG debacle:

Which goes to the crux of the Democrats’ current political problem.

Gone are the days when they could merely bludgeon the Bush administration and promise to seek bipartisan solutions to the nation’s economic problems.

Now, in control of the White House and Congress, they are struggling to come up with an explanation for what no one in either party seems moved to defend.

You can’t help but snicker a bit, can you?

~McQ

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Rudderless and Sinking

Here’s about as succinct a summary of the Obama administration to date that I’ve seen:

President Obama still enjoys the popularity that comes with not being George Bush, especially in a city top-heavy with Democrats. But his initial response to the global calamity that he found on entering the Oval Office has not inspired popularity’s more sober elder brother, confidence. Large constituencies, notably business, are voicing their scepticism openly. The President’s much-vaunted $787 billion stimulus package is being widely interpreted, even by some of those (such as Warren Buffett, America’s second-richest man) who openly supported Mr Obama for the presidency, as a serious failure.

And I don’t foresee it getting much better. Of course the summary comes to us via the British press (Simon Heffer) who have the luxury of being once removed from the situation and therefore have the ability to be somewhat more objective than much of our own media.

For instance, the much more perceptive analysis of the AIG mess:

Conscious that he has made mistakes, and conscious especially of the increasing perception that he is simply throwing cash at unreformed institutions in the hope that something will happen, Mr Obama is trying to raise his game. He had a soft target two days ago, when he joined in America’s outrage at the paying of bonuses to executives of AIG, the sinking insurance giant now buoyed by public money. This provoked further attacks on him from the Right. Why was he using US taxpayers’ money to bail out a company whose main investors were French, German, Swiss and British banks? And wasn’t he merely jumping on the bandwagon of attacking the bonuses to distract attention from his own policy failings – creating a bogeyman in the same way that Gordon Brown and Harriet Harman did with Sir Fred Goodwin last month?

And of course, we’re witnessing how poorly that’s turning out (you know there’s a political problem when the CEO of AIG comes off as a more sympathetic figure than Barney Frank and Chris Dodd).

Heffer says that instead of concentrating on what ails us financially, Obama has another much broader agenda:

Instead he has been trying, on a broad front, to fulfil the reformist ideal that informed his election campaign. Rather like a would-be government in Britain that talked of “sharing the proceeds of growth”, the candidate who wanted to redistribute wealth now, as President, has no wealth to redistribute. A $3.6 trillion budget showed little sign of addressing the problem of stimulating demand. Both big corporations and small businesses feel overtaxed, their competitiveness hampered, and incapable of creating jobs at a time when they are desperately needed. Mr Obama’s green agenda, which was also a significant part of his election promises, entailed higher taxation that will retard the economy just when it needs to grow. His greatest ambition – of starting a national health service – seems impossible in the present climate. As he seeks to move forward on this broad front Warren Buffett himself has attacked him, saying that his first three priorities should all be the economy. Paralysed by inexperience and a Blairish desire to be liked, and hampered by inadequate senior staff, he is now finding that even some of his own party in Congress feel he has gone too far in the socialist experiment. Mrs Pelosi admitted at the weekend that a second stimulus package – which leftist Democrats are calling for, to the horror of much of the rest of America – was not yet on the cards.

Dead on right. The line “paralyzed by inexperience and a Blairish desire to be liked, and hampered by inadequate senior staff”, strikes home. It is a particularly lethal political combination which we’re seeing displayed in spades. It is no longer a comedy show, it has become a horror show. And with the move by the Fed to buy back long-term bonds, the horror is only deepening.

And we’re stuck looking to Timothy Geithner, Barack Obama and Chris Dodd for salvation? Lord help us all.

~McQ

[HT: Joel C.]

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Obama, NAFTA, Mexico, China, Trade and Tariffs

Our congratulations go out to the Obama administration on their latest foreign policy and trade triumph. Last week, apparently without consultation, they did away with a NAFTA pilot program which allowed Mexican trucks to deliver goods to certain areas of the US. Mexico has responded:

Mexico has released the list of U.S. products that will see tariffs of 10 percent to 45 percent. The move is in retaliation for the U.S. scrapping a test program allowing Mexican trucks to deliver goods beyond a U.S. border zone.

Among affected goods are certain fruits and vegetables, wine, juices, sunglasses, toothpaste and coffee, according to a government statement. Most tariffs are 10 percent to 20 percent, with unspecified fresh products subject to a 45 percent charge. The tariffs will apply to $2.4 billion of goods and take effect today.

Just what you need in a down economy – punitive tariffs for political stupidity. And there won’t be a solution anytime soon:

Talks to diffuse the first [self-inflicted -ed.] trade dispute of President Barack Obama’s administration can’t begin until the U.S. has a Commerce Secretary, Economy Minister Gerardo Ruiz Mateos said.

So far I’m really not at all impressed with the status of the “better relations” throughout the world promised by the Obama administration.

Oh, and for an encore, how about this little goodie:

Energy Secretary Steven Chu on Tuesday advocated adjusting trade duties as a “weapon” to protect U.S. manufacturing, just a day after one of China’s top climate envoys warned of a trade war if developed countries impose tariffs on carbon-intensive imports.

Mr. Chu, speaking before a House science panel, said establishing a carbon tariff would help “level the playing field” if other countries haven’t imposed greenhouse-gas-reduction mandates similar to the one President Barack Obama plans to implement over the next couple of years. It is the first time the Obama administration has made public its view on the issue.

“If other countries don’t impose a cost on carbon, then we will be at a disadvantage…[and] we would look at considering perhaps duties that would offset that cost,” Mr. Chu said.

Brilliant.

~McQ

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“Inflation is Our Friend”

So, the Fed, for the first time since the 1960s, is buying back long-term bonds as part of it’s new policy, announced today, of buying back $1.2 trillion in securities to pump out cash into the economy.

With the country sinking deeper into recession, the Federal Reserve launched a bold $1.2 trillion effort Wednesday to lower rates on mortgages and other consumer debt, spur spending and revive the economy. To do so, the Fed will spend up to $300 billion to buy long-term government bonds and an additional $750 billion in mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac.

On top of this, short-term interest rates are already at 0%.  The fed has one monetary policy tool left–massive increases in the money supply–and they’re using it with a vengeance.  This purchase of $300B in treasury  bonds will be a signifigant increase in demand, pushing treasury prices up, and yields down.  The 10-year note’s yield dropped to 2.5% in the aftermath of this announcement.

Our fundamental problem is still that the banking sector has their balance sheets all out of whack, and the Obama Adminsitration still has no apparent plan for clearing up bank balance sheets via recapitalization, or…well…anything else. Now, theoretically, that much new money being created would lower mortgage rates signifigantly.  I wouldn’t be surprised to see 20-year fixed rates at 5% or less.

This action, however, opens the door for massive inflation.  The inflationary implications of this move are so huge, that there’s simply no way the loans could be anything but a money-loser for the banks, because a 5% mortage rate may well be far below the rate of inflation.  That will kill banks already weakened by their bad loan portfolios.

This is an extraordinary gamble of the Fed’s part.  If this new money doesn’t stimulate a signifigant increase in demand for money, then we are going to have a huge pool of money chasing a very small pool of goods.  The market knows it, too, and understands the inflationary implications.  The dollar cratered in the FOREX market today, and analysts aren’t excited about the long-term implications:

Bernanke’s view that currency devaluation may be beneficial to economic growth speaks for itself,” writes Mr. Merk. “But even if there are no active efforts to debase the currency, we are cautious about the U.S. dollar. That’s because we simply do not see a viable exit strategy to all the money that is being thrown at the system.”

“[W]e simply do not see a viable exit strategy to all the money that is being thrown at the system” because there is no viable exit strategy.  We are either going to have serious inflation, or the Fed will have to tighten up so severely at some point in the near future that it will kill economic growth anyway.

In “Texas Hold ‘Em” terms, this is the equivalent of the Fed going “all in”.  We’ve essentially reached the limits of our monetary policy tools with this action.

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