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Getting Tougher to be Obama

The Wall Street Journal has done a reality check and finds that Obama is doing worse in approval polls than George W Bush did at the same period in time in 2001. If Obama keeps this up he will not only sink the economy and our currency into junk status, but he will also emerge from it as the least popular president of modern times. The only question is why the American people should pay the price for the teleprompter president's inability to recognize his own failure.
 
It is simply wrong for commentators to continue to focus on President Barack Obama's high levels of popularity, and to conclude that these are indicative of high levels of public confidence in the work of his administration. Indeed, a detailed look at recent survey data shows that the opposite is most likely true. The American people are coming to express increasingly significant doubts about his initiatives, and most likely support a different agenda and different policies from those that the Obama administration has advanced. Polling data show that Mr. Obama's approval rating is dropping and is below where George W. Bush was in an analogous period in 2001. Rasmussen Reports data shows that Mr. Obama's net presidential approval rating -- which is calculated by subtracting the number who strongly disapprove from the number who strongly approve -- is just six, his lowest rating to date. Overall, Rasmussen Reports shows a 56%-43% approval, with a third strongly disapproving of the president's performance. This is a substantial degree of polarization so early in the administration. Mr. Obama has lost virtually all of his Republican support and a good part of his Independent support, and the trend is decidedly negative.
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Predictable Problems for Obama with "Establishment"

For all those who thought that presidential skills originate in a teleprompter, Obama's disastrous start as president may come as a surprise. Others, who realize that experience matters, are having a see-I-told-you-so moment. But the most critical group that may turn against Obama are the vanity liberals, who make up a sizeable part of the Democrat party's voter base. They express liberal opinions for social reasons and - unlike genuine conservatives - are fundamentally racist, thinking blacks can only make it with the help of the superior white hand. Solid testimonies of this are in the way Democrats in Congress treated Justice Clarence Thomas and Secretary of State Condoleezza Rice.
 
These vanity liberals will turn on Obama not because of his incompetence, but because he is black, and they will do it when they think he is vulnerable enough. As a first indication that this might happen, Howard Fineman analyzes the view of Obama held by the "establishment".
 
Surfer that he is, President Obama should know a riptide when he's in one. The center usually is the safest, most productive place in politics, but perhaps not now, not in a once-in-a-century economic crisis. Swimming in the middle, he's denounced as a socialist by conservatives, criticized as a polite accommodationist by government-is-the-answer liberals, and increasingly, dismissed as being in over his head by technocrats. Luckily for Obama, the public still likes and trusts him, at least judging by the latest polls, including NEWSWEEK's. But, in ways both large and small, what's left of the American establishment is taking his measure and, with surprising swiftness, they are finding him lacking.
 
Except those who read his resume during the campaign...
 
They have some reasons to be concerned. I trace them to a central trait of the president's character: he's not really an in-your-face guy. By recent standards—and that includes Bill Clinton as well as George Bush—Obama for the most part is seeking to govern from the left, looking to solidify and rely on his own party more than woo Republicans.
 
That is because his advisors tell him to. Obama himself has no idea how to govern. Unlike a governor, he has never governed before. He has telepromptered.
 
And yet he is by temperament judicious, even judicial. He'd have made a fine judge.
 
In the town court in Poplar Bluff, Missouri, perhaps.
 
But we don't need a judge. We need a blunt-spoken coach. Obama may be mistaking motion for progress, calling signals for a game plan. A busy, industrious overachiever, he likes to check off boxes on a long to-do list.
 
The kind of things that give you a good appearance, not the things that build a substantial resume. For those things you actually have to work. Not his strongest character trait.
 
But there is only one question on this great test of American fate: can he lead us away from plunging into another Depression?

No, of course not.
 
If the establishment still has power, it is a three-sided force, churning from inside the Beltway, from Manhattan-based media and from what remains of corporate America. Much of what they are saying is contradictory, but all of it is focused on the president: The $787 billion stimulus, gargantuan as it was, was in fact too small and not aimed clearly enough at only immediate job-creation.
 
Wrong, of course - the stimulus bill was too big when the first dime of spending was put on paper. But be that as it may. What matters here is how the "establishment" is turning on Obama.
 
The $275 billion home-mortgage-refinancing plan, assembled by Treasury Secretary Tim Geithner, is too complex and indirect. The president gave up the moral high ground on spending not so much with the "stim" but with the $400 billion supplemental spending bill, larded as it was with 9,000 earmarks.
 
Which, according to the president's teleprompter, did not contain any earmarks.
 
The administration is throwing good money after bad in at least two cases—the sinkhole that is Citigroup (there are many healthy banks) and General Motors (they deserve what they get). The failure to call for genuine sacrifice on the part of all Americans, despite the rhetorical claim that everyone would have to "give up" something. A willingness to give too much leeway to Congress to handle crucial details, from the stim to the vague promise to "reform" medical care without stating what costs could be cut.
 
Obama has gotten away with vague nonsense ever since college. Why change tactics now...?
 
A 2010 budget that tries to do far too much, with way too rosy predictions on future revenues and growth of the economy. This led those who fear we are about to go over Niagara Falls to deride Obama as a paddler who'd rather redesign the canoe.
 
Because that is why he wanted to be president in the first place. He is a Marxist theorist who had never had to go where the rubber meets the ground.
 
A treasury secretary who has been ridiculed on "Saturday Night Live" and compared to Doogie Howser, Barney Fife and Macaulay Culkin in "Home Alone"—and those are the nice ones. A seeming paralysis in the face of the banking crisis: unwilling to nationalize banks, yet unable to figure out how to handle toxic assets in another way—by, say, setting up a "bad bank" catch basin. A seeming reluctance to seek punishing prosecutions of the malefactors of the last 15 years—and even considering a plea bargain for Bernie Madoff, the poster thief who stole from charities and Nobel laureates and all the grandparents of Boca. Yes, prosecutors are in charge, but the president is entitled—some would say required—to demand harsh justice. The president, known for his eloquence and attention to detail, seemingly unwilling or unable to patiently, carefully explain how the world works—or more important, how it failed. 
 
He can't because he has no idea how the world works. He never had to learn that because he had never had to stand up to a challenge before.
 
Obama's worst problems are yet to come, though. Somewhere, someone is holding his birth certificate in his hand. Or her hand. And that someone is hungry for more power than she currently has. When the time is right - when Obama's approval ratings are low enough - that someone will slide a copy of that birth certificate under the office door of the appropriate newspaper editor.
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A Private Alternative to Obama's Socialized Compassion

While Obama and his compadres in Congress are busy socializing even more of the economy, guised as "compassion" for the poor and needy, others are setting examples of how you can be compassionate without the involvement of even a dime's worth of government.
 
Unemployed for a year and with an ailing wife at home, Mike Hammer stepped out of his truck in a Concord strip mall and walked into the heart of one of the most sophisticated private welfare systems in the country. Here, in a plain white box of a building, Hammer and other Mormons come to get groceries - everything from produce to meats, much of which comes from Mormon-owned farms and cattle ranches. Others come for counseling, employment help and a self-canning facility, where observant Mormons can up to a year's worth of food supplies in the event of an emergency. All services in the building, known as a Bishops' Storehouse, are intended to promote Mormon self-sufficiency. "I'm not asking for money or somebody to do things for me," said Hammer, 36, a Brentwood father of three who carried away bread, milk, eggs, cheese, fruits and vegetables. "It's eased up finances a little bit."
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How to Destroy America - Obama and His War on Business

Over at Bloomberg News, Kevin Hassett puts president Obama in his rightful context: as someone who is waging war on the United States from the inside, on behalf of her enemies.
 
 
Imagine that some hypothetical enemy state spent years preparing a “Manchurian Candidate” to destroy the U.S. economy once elected. What policies might that leader pursue? He might discourage private capital from entering the financial sector by instructing his Treasury secretary to repeatedly promise a brilliant rescue plan, but never actually have one. Private firms, spooked by the thought of what government might do, would shy away from transactions altogether. If the secretary were smooth and played rope-a-dope long enough, the whole financial sector would be gone before voters could demand action. Another diabolical idea would be to significantly increase taxes on whatever firms are still standing. That would require subterfuge, since increasing tax rates would be too obvious. Our Manchurian Candidate would have plenty of sophisticated ideas on changing the rules to get more revenue without increasing rates, such as auctioning off “permits.” These steps would create near-term distress. These steps would create near-term distress. If our Manchurian Candidate leader really wanted to knock the country down for good, he would have to provide insurance against any long-run recovery. There are two steps to accomplish that. First, one way the economy might finally take off is for some entrepreneur to invent an amazing new product that launches something on the scale of the dot-com boom. If you want to destroy an economy, you have to persuade those innovators not even to try. Second, you need to initiate entitlement programs that are difficult to change once enacted. These programs should transfer assets away from productive areas of the economy as efficiently as possible. Ideally, the government will have no choice but to increase taxes sharply in the future to pay for new entitlements. A leader who pulled off all that might be able to finish off the country.
 
Obama has not been in office more than six weeks, and he is already well on his way to destroying America. Give him two full years in office, and...
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Obama's Stimulus Bill Ends State Independence

Contrary to the high-pitch rhetoric in Washington, the ARRA - American Recovery and Reinvestment Act - is not at all a stimulus bill. It does nothing to stimulate the economy. On the contrary, it reinforces a big-government welfare state policy that generates no jobs but makes people even more deeply dependent on government. So if you thought the "stimulus" bill was there to stimulate the economy, think of it instead as a "simulus" bill or the American Radicalism Reinforcement Act.
 
Three examples of what this scam bill does:
 
-More money to Title I school programs. Title I helps low income families put their children through public school. A good program (except charities could do the same job better and more efficiently) that is funded based on how big the population of poor happens to be. But in many states the ARRA almost doubles Title I funds! Does this mean that poverty has suddently doubled? Of course not. What it means is that there will be more bureaucrats with more money chasing something to spend it on. So the states who are responsible for the money will invent new uses of Title I - in effect, redefine the concept of "poor" to fit perhaps twice as many kids as before. A pure expansion of the welfare state, nothing else.
-Expansion of Vocational Training. While superficially this might seem like a good idea with unemployment above eight percent, it is a remarkably stupid idea against the background of academic research. Nowhere have labor market economists been able to prove that vocational training helps people find new jobs faster and more easily than they otherwise would. On the contrary, with the government - not the private sector - dictating what job training people should have, it becomes increasingly difficult to match the work force with available jobs. If instead the administration spared taxpayers the burden of this inefficient idea, the private sector will always match workers with jobs, either through on-the-job training (which, unlike with the U.S. presidency, works well in the hands of private companies) or by market-based vocational programs.
-Environmental/Water way programs. As if the two first examples were not bad enough, the ARRA/Stimulus bill also gives generously to states for the environmental protection of water. Such programs already exist, obviously, and are not exactly job creation machines as they are. With more money in them, all that is going to happen is that environmental restrictions will further rein in the opportunities for land owners to put their lands to commercial use, and for private businesses to grow. In other words, some of the items in the ARRA directly stifle growth while others hardly contribute to growth at all.
 
To top it all off, the ARRA forces states to cough up matching funds, which together takes federal control over state budgets up toward 50 percent. Or, in so many words: the end of state sovereignty is near. And once the stimulus money formally stop coming in 2011 the states will be on their knees begging for more.
 
Behold - the end of a federation through fiscal fiat. And not a single new job will come out of it...
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The Most Embarrassing President in Modern History

President Obama sure knows how to build good ties to our allies. Iain Martin, in a brilliant blog in The Telegraph, explains.
 
President Obama has been rudeness personified towards Britain this week. His handling of the visit of the Prime Minister, Gordon Brown, to Washington was appalling. First Brown wasn't granted a press conference with flags, then one was hastily arranged in the Oval office after the Brits had to beg. Obama looked like he would rather have been anywhere else than welcoming the British leader to his office and topped it all with his choice of present (*) for the PM. A box of 25 DVDS including ET, the Wizard of Oz and Star Wars? Oh, give me strength. We do have television and DVD stores on this side of the Atlantic. Even Gordon Brown will have seen those films too often already.
And this man is supposed to keep us safe from terrorists? To build alliances with other countries? To lead the nation through comprehensive health care reform?
 
If Obama is as incredibly intelligent as his disciples tell us, then how come he could not handle this routine diplomatic matter better than a 12-year-old? Imagine this guy in the midst of an international crisis. Like Israel taking out Iran's nuclear reactor.
 
This was coupled with Michelle Obama's casual choice of gifts for the Brown sons - matching models of the helicopter which ferry her husband around. While Sarah Brown had spent time choosing gifts for the Obama girls, Michelle had clearly sent an aide to the White House gift shop at the last moment. All in all, he doesn't think much of us [Brits].
 
Darn right he doesn't. Obama was raised in the context of radical islam and radical Marxism, which together create the perfect storm of anti-Western-Civilization demagoguery. He would rather cozy up with Hamas (to whom he just wrote a check for $900 million worth of American taxpayers' money) than preserve the free world that let him become something more than his hut-dwelling brother in Nairobi.
 
But what's this? Something, suddenly, seems to have made the Obama White House perk up and start to take an interest in the Brits. The Queen has invited the President to tea when he's here for the G20 in April. And he's in through the front door of Buckingham Palace faster than a Harley Davidson roaring along Route 66. Note how the coolness of Team Obama disappears when a bit of regal glamour is introduced into the equation. He might not like the Brits, but he can recognise a global superstar when he encounters one. He wants to be associated with her. He's shameless.
 
And unintelligent. After all, we are talking about a man who needs a teleprompter to order at McDonald's.
 
If Obama, or someone in his inner circle, had spent two minutes thinking about what present to get Brown then they could easily have come up with something appropriate. He likes books. He loves American history. Get him a signed first edition of a good Robert Dallek book such as the brilliant Flawed Giant  on LBJ. Come to think of it, Obama should read it too, if he hasn't yet, as it reveals a great deal about how a Presidency can go so wrong.
Well said.
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Global Intifada Ready to Strike in Sweden

As the Swedish and Israeli tennis teams prepare for their three-day match in Malmo, Sweden, the terrorist group Global Intifada is allegedly preparing to attack the match. The group Global Intifada is no novice to terror attacks - as if to prepare for a large-scale assault on the Israeli tennis team's visit, they have spent the winter attacking supermarkets around Sodertalje, an industrial city south-west of Stockholm. No arrests have been made in those attacks.
 
Sweden is becoming fertile ground for terrorists. Its increasingly weak central government is relentlessly focused on maintaining a failed welfare state. It does not provide law enforcement with the means appropriate to maintain law and order on a daily basis, let alone to hunt down and elminate terror groups. Should Global Intifada - or any other group, for that matter - succeed in attacking either the tennis match or some adjacent target in Malmo, it would serve not as a reason for clamp-down on terrorism, but as a catalyst for other groups to rise to similar occasions.
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The Problem with Gay Marriage Is the Welfare State

The welfare state hands out goodies and gives tax deductions to all kinds of groups, based largely on who the politicians want to cozy up to in order to get re-elected. Part of this voter buying comes in the form of benefits to traditional families, such as income tax deductions for married couples. But this has created a barrier in the way of gay marriage. Many gay couples want access to economic benefits, which they are barred from by other groups who oppose gay marriage and want to preserve the benefits for traditional families. If these benefits did not exist it would be much easier to defend gay marriage for what it is - and what all marriages are - namely a private contract between consenting adults. In a sense, therefore, the issue of gay marriage illustrates how one government incursion into private citizens' lives (redistribution of income between married couples and singles) creates another incursion (a ban on a private contract between consenting adults).
 
Mary Ritchie, a Massachusetts State Police trooper, has been married for almost five years and has two children. But when she files her federal income tax return, she's not allowed to check the "married filing jointly" box. That's because Ritchie and her spouse, Kathleen Bush, are a gay couple, and the federal Defense of Marriage Act makes them ineligible to file joint tax returns. Now Ritchie, Bush and more than a dozen others are suing the federal government, claiming the act discriminates against gay couples and is unconstitutional because it denies them access to federal benefits that other married couples receive, such as pensions and health insurance. Plaintiffs also include Dean Hara, the widower of former U.S. Rep. Gerry Studds, the first openly gay member of the House of Representatives. In Ritchie's case, she and her spouse say they have paid nearly $15,000 more in taxes than they would have if they had been able to file joint returns.
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More Corruption in the "Most Ethical Administration Ever"

After frantically having tried to stuff his administration with as many tax cheaters as possible, Obama now turns to corrupt local politicians to fill the remaining positions. His new office on urban policy is headed by Adolfo Carrion, the borough president ("mayor") of Bronx in New York City. In that capacity Carrion demanded cash from firms and colleges who wanted to build something that required a change in zoning or other types of administrative action by the borough president's office.
The man who is President Obama's newly minted urban czar pocketed thousands of dollars in campaign cash from city developers whose projects he approved or funded with taxpayers' money, a Daily News probe found. Bronx Borough President Adolfo Carrion often received contributions just before or after he sponsored money for projects or approved important zoning changes, records show. Most donations were organized and well-timed. In one case, a developer became a Carrion fund-raiser two months before the borough president signed off on his project, raising more than $6,000 in campaign cash. In another, eight Boricua College officials came up with $8,000 on the same day for Carrion three weeks before the school filed plans to build a new tower. Carrion ultimately approved the project and sponsored millions in taxpayer funds for it. Carrion resigned as borough president effective Sunday and begins his new job as director of the White House Office on Urban Policy Monday.
 
With such ethical standards, Obama should offer Governor Blagojevic the job as chief ethics czar of the administration. And why not hire Jason Blair as press secretary?
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Obama Wants U.S. Taxpayers to Fund Global Welfare State

As if a trillion dollars in new taxes on the American people is not enough, president Obama also wants Americans to pay for a global welfare state. And he has already found a buddy in socialist British prime minister Gordon Brown:
 
Gordon Brown hopes to forge a partnership with President Barack Obama in Washington this week, to call for a “global new deal” to lift the world out of recession. As he prepares for his first White House visit since the president’s inauguration, the prime minister has hinted that he is ready to make further tax cuts to boost the UK economy.
 
Gordon Brown does not cut taxes. He moves the tax burden around. The Maastricht Treaty, which effectively still is the EU constitution, mandates that every EU member state balances its budget each year. That means, by definition, that a $100 tax cut for Joe must be "paid for" by a $100 tax increase for Jill. Brown has adhered to this throughout his career as Chancellor of the Exchequer (Treasury Secretary) and as prime minister. So let no one be fooled - there are no tax cuts coming out of his administration.
 
And now for the globo-socialist juice in this London Times article.
 
Brown is under pressure to persuade American political leaders to sign up to bold aims for the G20 summit of industrial and leading developing nations, which is to be held in London next month. Many US politicians believe economic policy should put America first, and have shown little interest in concerted global action. Brown will argue for a renewal of the transatlantic relationship, with the two powers working together to solve global economic problems.
 
And what problems might he be referring to...?
 
The prime minister will borrow from the rhetoric of Franklin Roosevelt, who introduced the government-financed New Deal to tackle the US Depression of the 1930s. He will argue that his 21st century “global new deal” will also require public spending on a huge world-wide scale.
 
Let's repeat that one:
 
He will argue that his 21st century “global new deal” will also require public spending on a huge world-wide scale.
 
And who is going to spend that money? The governments of poor countries do not have any money to spend, primarily because they do not respect the individual and economic freedom of their citizens. Instead, they are corrupt, authoritarian leaders who amass wealth for themselves while leaving their peoples behind. The poverty problems in the world correlate very strongly with totalitarianism, collectivism and government corruption. More government spending by the U.S. and U.K. taxpayers in those poor, corrupt countries will only benefit the incumbent tyrants. And since Obama has already shown that he has little respect for individual freedom he will put no freedom strings on the money (seized from American taxpayers) that he intends to give away to anti-democratic leaders in Africa and Asia.
 
A poor country does not become wealthier by receiving welfare checks from taxpayers in wealthy countries. They still do not pay for their own expenses - someone else does. This does not help them elevate themselves from poverty. On the contrary, it is another form of colonialism where the kind Uncle Barry comes to town and gives out what he thinks the people of the poor village needs. And when Uncle Barry finally runs out of money because he has - as he pledged during the election campaign - taxed the heck out of the American people, then Uncle Barry will come no more to the poor village. The villagers will once again be left as poor as they were before Uncle Barry started giving away the American people's hard earned money.
 
The only sustaianble remedy for poverty is individual and economic freedom.

Many US politicians believe economic policy should put America first, and have shown little interest in concerted global action. Brown will argue for a renewal of the transatlantic relationship, with the two powers working together to solve global economic problems.

The prime minister will borrow from the rhetoric of Franklin Roosevelt, who introduced the government-financed New Deal to tackle the US Depression of the 1930s. He will argue that his 21st century “global new deal” will also require public spending on a huge world-wide scale.

Writing in The Sunday Times today, Brown calls for “universal action to prevent the crisis spreading, to stimulate the global economy and to help reduce the severity and length of the global recession”.

His stress on continued economic “stimulation” will increase speculation about next month’s budget. No 10 sources said that, while no final decision had been taken about further tax cuts, the prime minister would do “whatever it took” to pull the UK out of recession.

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Anti-American Terrorism in Sweden

While Obama's new secretary of homeland security refuses to use the word "terrorism" about "incidents" around the world, the left in Europe has not stopped being anti-American just because Obama is in the White House. The most recent example of this is a series of firebombing attacks on the outskirts of Stockholm, Sweden. Writes the local newspaper:
 
Since the first firebombing at Coop [supermarket] just before Christmas there have been seven other firebombings in Sodertalje [south west of Stockholm]. About the same time as the firebombings started leaflets appeared around town that encouraged firebomb attacks on shops and department stores that sell American products, with reference to the super power's invasion of Iraq. The leaflets also contain images on how to make a time-delayed firebomb.
 
Just this week there were three firebomb attacks on one night. The police is unable or unwilling to stop the attacks, either because - due to perpetual budget cuts - they lack the resources, or because they suspect that the attackers are non-European immigrants. Tensions around immigration policy are very high in Sweden and the anti-Western sentiments among radical Muslims are stronger than perhaps ever since 9/11.
 
This terrorism with openly anti-American motives should not go un-noticed. While Obama ostensibly is lowering the American guard against terrorism, the terrorists are raising their aims. Europe is a perfect long-term base for many anti-American movements, and Sweden, with its ever weaker law enforcement and ever growing political radicalization, is becoming the most fertile ground for radical terrorism in the West.
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Wake Up: Deficits Galore Is Deliberate Obama Strategy

Republicans have slowly come to grips with the fact that there is an out-of-control socialist in the White House. But they are still two steps behind Obama and his radical cohorts. Unless they catch up very fast, the United States will be in grave danger.
 
The first step toward catching up with Obama is to realize that this man deliberately wants to run the federal government into the financial grounds. The model for doing this is Latin America. Countries like Argentina and Brazil created welfare states that were funded by the monetary printing presses and foreign borrowing. Eventually the situation became untenable as inflation rose to double digits and the currency took a nose dive.
 
At that point the country came to a point of social unrest, and since the cause was monetary it was easy for the governments to blame "capitalism". That made it easier to motivate authoritarian takeovers and infringements on individual freedom.
 
The GOP must not forget that Obama has said that he wants to build a civil security corps, as strong and well funded as the military. It is not far-fetched to assume that he wants that civil security corps to be ready by the time the American economy has been reduced to Brazilian or Argentinian rubble. At that time he can suspend the Constitution with the help of his civil security corps (which effectively will be his own party militia).
 
The best comparison to Obama's security force is Hitler's SS or the Iranian Revolutionary Guard.
 
If the GOP is willing to see that this is a deliberate long-term goal of Obama's, then they can also realize to the fullest extent what is at stake:
 
The United States of America.
 
But this is not enough. The GOP must also realize that it is perfectly OK to criticize and even make fun of Obama, even though he is black. It  is the likes of John McCain that will do this country in. That is ironic, given how much he sacrificed in defense of our values. But McCain is a perfect example of a Republican who thinks that black people are inferior to white people because they cannot endure criticism. He also thinks that the vast majority of white Americans are just as miserably racist as he is. But in reality the vast majority of Americans know that the color of your skin does not matter one iota. They have black, white, Hispanic and Asian colleagues and they only care about a man's or a woman's character. They know that if you criticize a black man's political views, you do not derogate him for his race.
 
Unless McCain and others like him take a big, fat step to the side, Obama will be shielded from valid political criticism in next year's election cycle - and his Acorn-sponsored radical buddies will be able to solidify their hold on power, nationally as well as at the state level. As they do, they will introduce more and more fraud in the election system to keep Republicans out.
 
 If on the other hand the GOP wakes up and makes itself immune to the "racist" attacks from the left, they have a really good chance to re-take at least the House in 2010. That would significantly slow down Obama's power grab and put GOP in a good position to oust Obama in 2012.
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Obama Keeps Zig-Zagging on Banks

Like a downhill slalom skier, Obama keeps going back and forth all over the issue of bank socialization. Having first said that he wanted the Swedish model, he smoothly forgot all about nationalization, only to stir up concerns about it again. This has of course sent bank shares down in the basement, as no one wants to invest in a corporation that will be seized by the government. Now Federal Reserve chairman Ben Bernanke has been forced to step forward and try to bring order to the president's self-made verbal labyrinth on the issue.

Stress tests of big US banks that start this week are unlikely to lead to any of them being seized by regulators and nationalised outright, Federal Reserve chairman Ben Bernanke told
Congress on Tuesday. His comments provided the clearest signal yet that US authorities hope to support major banks as going concerns in the private markets, taking equity stakes as necessary to shore up their capital in what would amount to partial nationalisations. Stocks rose in response, with the S&P 500 index rising 4 per cent from the previous session’s 12-year lows. Both Citigroup and Bank of America rose about 21 per cent to lead the market higher. Asked whether the stress tests will lead regulators to move in to take outright control of some banks under powers used to deal with failing institutions, the Federal Reserve chairman said: “No, I don’t think so.”
 
However, Bernanke also does not exclude that somewhere down the road (when Obama has learned to make both his feet walk in the same direction) the federal government may find it necessary to seize banks anyway.
 
Alas, yesterday's news. Which, of course, is no news at all. The Obama administration has shown significant skills in contradicting itself already from the get-go. The incoming-outgoing health secretary, Tom Daschle, wanted a universal, single-payer health care system. Obama said no to that. Then another, more permanent cabinet member expressed interest in Big Brothering all vehicles in America to track their whereabouts on highways and byways. Obama quickly said he did not want that either.
 
A president that shows such amateurish leadership skills is bound to lose in popularity. No wonder his approval ratings are slowly sinking.
 
Maybe next time more voters will realize that nice speeches do not make up for lack of leadership experience. There is a reason why every president between LBJ and Obama has been either a vice president or a governor.
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Obama's Bank Socialization Agony

A couple of days ago president Obama said he wanted to follow the Swedish route to bank recovery. That would have disastrous consequences for the U.S. economy. When the Swedish government took over ailing banks in the early '90s they forced the banks to halt virtually all lending, which plunged auto sales by more than half and brought the entire housing/construction market to a complete standstill. Sweden still has not gotten over the macroeconomic meltdown that followed. I have elaborated on the consequences of the Swedish bank "bailout" here.
 
Today, though, president Obama has made a one-eighty and is no longer advocating government takeover of the banks. His spinning, making John Kerry look stand-up reliable, is certainly not going to reassure already turbulent financial markets.
 
The White House on Friday insisted it's not trying to take over two ailing financial institutions, even as stocks tumbled again. On Wall Street, talk of nationalization of Citigroup Inc., and Bank of America Corp., prompted investors to continue to balk, worried that the government would have to take control and wipe out shareholders in the process. Citigroup fell 20 percent, while Bank of America fell 12 percent in afternoon trading but also came off their lowest levels.
 
Unless Obama is purposely trying to wreak havoc - which, based on his ideological schooling, cannot be ruled out - he is doing a phenomenally poor job at winning the confidence of the financial market.
 
"This administration continues to strongly believe that a privately held banking system is the correct way to go, ensuring that they are regulated sufficiently by this government," White House press secretary Robert Gibbs said when asked about nationalizing the banks. "That's been our belief for quite some time, and we continue to have that," Gibbs said.
Let's take that last one again:
 
"That's been our belief for quite some time, and we continue to have that," Gibbs said.
 
So before "quite some time" they had another belief. When was that? During the campaign last summer? This past fall? While he was preparing for the inauguration? This is yet more confidence-shattering nonsense out of an administration that does not seem to understand that it is in fact in charge of the executive branch of the U.S. government.
 
Investors have shown decreasing confidence that U.S. banks can right themselves. Citigroup and Bank of America have already received significant help from taxpayers as the government has rushed in to try to save the financial sector, which has been choked by bad assets and seen the flow of credit shrink.
 
On the contrary. What has happened is that the Obama administration has scared away investors from the banks, which in turn has made it increasingly difficult for those banks to raise money for lending. Banks do not print their own money - they attract lenders whose money they then lend in turn. With tumbling stock values and an unsure ownership future, few want to take the risk of lending to U.S. banks.
 
Gibbs was pressed for more details on his answer - specifically whether Obama would not nationalize banks. He said it was hard for him to be any clearer. When a reporter suggested Gibbs could do that by saying point bank that Obama would never nationalize banks, Gibbs would not make that statement, but emphasized: "I think I was very clear about the system that this country has and will continue to have."
 
In other words: Gibbs is saying that Obama may change his mind again in a few days, just like he did now. That's really going to help the banks, isn't it...?
 
Obama's indecision on this issue appears to be consistent with his inability to do anything but give speeches. This leaves the executive branch without fortitude and the field open for yet more power grabs by Nancy Peligroso and her political consort in the U.S. Senate.
 
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Obama Disregards Human Rights to Pursue Big Government

[Welcome to my blog. With this blog article I am moving my blog from Blogger to Townhall; my older articles are posted here.]
 
In yet another testimony to Obama's ideological radicalism he has sent his foreign policy errand runner, a.k.a., Hillary Clinton, to China on a mission to ask the ChiComs to keep buying US Treasury bonds. Obama knows darn well that his Big Goverment agenda is going to cost enormous amounts of money. He also knows that if he tries to tax the heck out of people, as he talked about during the campaign, he will be yet another one-term wonder of a president. His only chance is therefore that the ChiComs commit to funding his reckless spending program. In order to get that pledge from the ChiComs Obama needs to look the other way when Chinese human rights activists ask for help to pressure the Chinese government.

Put bluntly: Obama is selling out the human rights of the Chinese people to pursue his own socialist agenda in the United States.

Relegating human rights, U.S. and Chinese officials on Saturday emphasized the economy, security and climate change as priorities for cooperation. U.S. Secretary of State Hillary Rodham Clinton welcomed Beijing's continued investment in U.S. government securities and hoped the Chinese would avoid the kind of environmental "mistakes" that accompanied development in Western countries. After a day of talks on her first visit to China as America's top diplomat, Clinton and Chinese Foreign Minister Yang Jiechi said a regular dialogue between their countries on economic issues would now include troubling security issues. Details will be finalized by U.S. President Barack Obama and Chinese President Hu Jintao at an economic summit in London in April. ... "I appreciate greatly the Chinese government's continuing confidence in United States treasuries. I think that's a well-grounded confidence," Clinton told reporters at a news conference with Yang. "We have every reason to believe that the United States and China will recover and together we will help lead the world recovery," she said. ... The emphasis on the global economy, climate change and security highlight the growing importance of U.S.-China relations, which have often soured over disagreements on human rights. Authorities in Beijing are facing a difficult year on the rights front as they deal with politically sensitive anniversaries. It has been 20 years since the crushing of the Tiananmen Square democracy movement and 50 years since the failed Tibetan uprising that forced the Dalai Lama to flee into exile. Activists complained Saturday that Chinese police were monitoring dissidents and had confined some to their homes during Clinton's two-day visit. Several of those targeted had signed "Charter 08," an unusually open call for civil rights and political reforms that circulated in December, according to the China Human Rights Defenders. But ahead of her talks, Clinton signaled that China's poor human rights record, while still of deep concern to the United States, would not be at the top of her agenda.
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