More politically-correct inability to see the obvious

Both sides of the debate below seem to be assuming that it is upbringing that is responsible for the difference in children's intellectual achievement -- when all the research shows that genetics is the major influence -- with upbringing of negligible importance. Smart people tend to get rich and pass on their smart genes to their children -- and that is all there is to it. The finding is in fact just another confirmation of Charles Murray's well-known scholarly work that showed a strong link between social class and IQ. To be very blunt about it, the poor tend to be dumb and the rich tend to be smart. There are of course exceptions but that is the general tendency that is being detected below

A CHILD’S reading age and ability to count develop a month earlier for every extra £100 a month in family income, according to a government-funded study to be unveiled this week. Gaps in the development of children from different socio-economic backgrounds appear by the age of three and widen until 14. The findings, written by a panel chaired by Professor John Hills, are based on the Millennium Cohort Project which tracks 19,000 youngsters.

It will fuel divisions between Labour and the Tories over the link between a child’s prospects and household income.

Harriet Harman, Labour’s deputy leader, said last night: “[The report] provides an incontrovertible basis for us to move beyond inaccurate assertions made by the opposition ... David Cameron says that the differences in child outcomes between a child born in poverty and a child born in wealth are statistically insignificant when both have been raised by confident and able parents. “But what he fails to say is that you can’t separate out good parenting skills from family income. The two are so strongly correlated. So this is an utterly misleading portrayal of the evidence.”

The report says inequalities are exacerbated by differences in the mother’s education, the father’s job and deprivation in the area where they live. Details of how far up the salary scale the effect occurs are expected in the report.

SOURCE

********************

Brain areas linked to mental performance

What? It's not "poverty" that makes you dumb? Once again the data contradict Leftist nostrums. Many of the skills mentioned below are closely linked to IQ. Mental speed and brain size have long been known as correlated with IQ. So the research below confirms a lot in IQ research. Note the confirmation that IQ can't be "trained"

HOW well you play a video game can be predicted by measuring the size of structures in your brain. Researchers have found certain brain centres play a vital role in influencing traits crucial to video game success. The findings could lead to applications for education and treatment of dementia.

The study, published in the scientific journal Cerebral Cortex, adds to evidence that a collection of distinctive tissues deep in the brain influence the ability to refine motor skills, learn, plan, and adapt quickly to a changing environment. "This is the first time that we've been able to take a real-world task like a video game and show that the size of specific brain regions is predictive of performance and learning rates," said University of Pittsburgh psychology professor Kirk Erickson.

The study was done by Pittsburgh University, the Massachusetts Institute of Technology, the McGovern Institute for Brain Research, and the Beckman Institute for Advanced Science and Technology at the University of Illinois.

Researchers explored an anomaly between novice and veteran players. Research had shown expert players outperformed novices in areas such as attention and perception. But training novices for endless hours produced no measurable benefit to their cognitive abilities.

The study's authors believed existing differences between individual brains might explain the anomaly. They concentrated on an area known as the striatum. "Our animal work has shown that the striatum is a kind of learning machine - it becomes active during habit formation and skill acquisition," said McGovern Institute investigator Ann Graybiel. "So it made a lot of sense to explore whether the striatum might also be related to the ability to learn in humans."

The researchers used high-resolution magnetic resonance imaging to analyse brain regions of 39 adults aged between 18-28 who'd spent less than three hours a week playing video games in the previous two years.

Half were asked to focus on maximising their score; the rest were asked to periodically shift priorities, improving skills in one area before moving to something else. Players who had a larger brain "reward centre" did better early on; players whose brain centres for motor skills and adaptation were larger performed best overall.

SOURCE

**************************

Democrats now dissatisfied with Obama

At the end of Barack Obama’s worst week since taking power a year ago, the US president’s fortunes look set only to deteriorate over the coming days. Following the shock defeat of the Democratic candidate in Massachusetts on Tuesday, a move that deprived the president of his 60-seat super-majority in the Senate and left his legislative agenda in tatters, Mr Obama has just four days to reboot the system.

The US president had originally delayed next week’s State of the Union address to Congress in the hope he would get his signature healthcare reform bill enacted in time. That prospect, already waning, was killed dead by the voters in Massachusetts. A growing number of Democrats believe the nine-month effort could collapse altogether.

The death of the healthcare effort would rob Mr Obama of what he had hoped would be the centrepiece of his first State of the Union message. “It now looks extremely difficult, if not impossible, to get anything resembling a broad healthcare bill out of Congress,” said Scott Lilley, a senior fellow at the liberal Centre for American Progress, the think-tank that is closest to the White House. “In his State of the Union, Obama has to slim down his ambitions. It should be short and simple and focus on jobs.”

However, even a more modest agenda looks tough for Mr Obama now. Believing their strategy of total opposition was vindicated by the voters last Tuesday, Republicans are in even less of a mood to co-operate with Democrats than before. The difference is that with 41 seats in the Senate they are in a position to block almost anything Mr Obama proposes – including the Wall Street regulatory measures he announced on Thursday.

“Obama has to decide whether he wants to be a transformational president, which looks optimistic at this stage, or merely an effective president,” says Bruce Josten, head of government affairs at the US Chamber of Commerce, which has spent tens of millions of dollars opposing healthcare. “My advice would be that he pick up the phone and ask for Bill Clinton’s advice on how to recover from a situation like this.”

Nor can Mr Obama rely on unity within his own party, which has been in disarray, if not panic, since Tuesday. For example, Mr Obama’s more populist tack on Wall Street re-regulation failed to attract endorsement from Chris Dodd, chairman of the Senate banking committee, even though he was present when Mr Obama made the announcement.

Others, such as Tim Johnson, Democratic senator for South Dakota and a senior member of the banking committee, were already opposed to elements of Mr Obama’s regulatory proposals including the plan to establish a consumer financial protection agency.

Worse, most people do not think Mr Obama can even command unity within his own administration on the Wall Street proposals amid growing speculation about whether Tim Geithner, the Treasury secretary, can survive in his job. Mr Geithner was conspicuously sidelined during Thursday’s announcement by the presence of Paul Volcker, the former Federal Reserve chairman, who lent his name to the push to rein in Wall Street banks.

The speculation about Mr Geithner is only likely to grow. “The Obama proposals were clearly politically motivated and came from the White House not the Treasury,” says a Democratic adviser to the administration, who withheld his name.

Finally, there is increasingly open Democratic disaffection about the way Mr Obama is managing relations with Capitol Hill. Many believe that Rahm Emanuel, Mr Obama’s aggressive chief of staff, served Mr Obama badly by persuading the president that his election was a transformational moment in US politics that gave him the opportunity to push through long-cherished Democratic goals, such as healthcare reform.

In fact, exit polls from Mr Obama’s election showed that almost two-thirds of the voters cited the economy as their chief concern, with fewer than one in 10 mentioning healthcare. Mr Emanuel is also perceived to have mishandled the day-to-day logistics of getting healthcare through Congress.

By leaving the scripting of the details of the healthcare bill to Democratic leaders on Capitol Hill, the White House openly courted the risk of chaos. Tellingly, in his victory speech in Boston on Tuesday, Scott Brown, the new Republican senator, cited voter disdain for the sight of lots of “old men” on Capitol Hill bickering over healthcare reform at a time when their priority was jobs.

“I haven’t seen Rahm Emanuel except on television,” Jim Pascrell, a Democratic lawmaker from New Jersey, told Politico, the news website, on Friday. “We used to see him a lot; I’d like him to come out from behind his desk and meet with the common folk.”

In short, Mr Obama’s nightmare January could easily slip into a nightmare February. “Unless and until the president changes the way his White House, works, things are going to continue to go badly for him,” says the head of a Democratic think-tank. “Heads still have to roll.”

SOURCE

***********************

Oh what a tangled web we weave when first we practice to deceive

The Obamabots can't keep their lies straight

White House advisers appearing on the Sunday talk shows gave three different estimates of how many jobs could be credited to President Obama’s Recovery Act. The discrepancy was pointed out by a Republican official in an email to reporters noting that “Three presidential advisers on three different programs [gave] three different descriptions of the trillion-dollar stimulus bill.”

Valerie Jarrett had the most conservative count, saying “the Recovery Act saved thousands and thousands of jobs,” while David Axelrod gave the bill the most credit, saying it has “created more than – or saved more than 2 million jobs.” Press Secretary Robert Gibbs came in between them, saying the plan had “saved or created 1.5 million jobs.”

Their remarks in context:

Axelrod, on CNN’s State of the Union: “But understand that, in this recession that began at the beginning of 2007, we've lost 7 million jobs. Now, the Recovery Act the president passed has created more than — or saved more than 2 million jobs. But against 7 million, you know, that — that is — it is cold comfort to those who still are looking.”

Jarrett, on NBC’s Meet the Press: “The Recovery Act saved thousands and thousands of jobs. There are schoolteachers and firemen and— and— teachers all across our country, policemen, who have jobs today because of that recovery act. We're investing in infrastructure. We're investing in public education so that our kids can compete going forth into the next— generation.”

Gibbs, on “Fox News Sunday”: “Well, Chris, let's take for instance the example you just used of the stimulus package. We had four quarters of economic regression in terms of growth, right? Just last quarter, we finally saw the first positive economic job growth in more than a year. Largely as a result of the recovery plan that's put money back into our economy, that saved or created 1.5 million jobs.”

SOURCE

********************

U.S. PRESIDENTIAL SPEECH

The President of the United States addressed 6th grade students at the Graham Road Elementary School in Falls Church, Virginia on Tuesday, January 19, 2010. For this speech, he brought along teleprompters, Presidential Seal podium, speakers, lighting etc.

What has this Presidency come to, when all the above props are needed to speak with 6th grade students?



SOURCE

**********************

ELSEWHERE

Obamabot laments that tea partiers keep Republicans honest: "NBC's Chuck Todd on Sunday said the Tea Party movement has made it impossible for President Obama to buy the Republican votes he needs to pass his agenda. Appearing on "Meet the Press," Todd told his fellow panelists, "I think the most striking thing about the minority party today...is that a Republican can't go home, and it's mostly because of this tea party crowd, cannot go home and sell a piece of pork that they got from Washington." In Todd's view, this makes it tough for Obama because "it's not as if he can trade, you know, go and have these trades with a Susan Collins or Olympia Snowe, or let's say Lamar [Alexander]...or something like this, because they're not getting a benefit at home of bringing something back" (video embedded below the fold with transcript):

There is a new lot of postings by Chris Brand just up -- on his usual vastly "incorrect" themes of race, genes, IQ etc.

My Twitter.com identity: jonjayray. My Facebook page is also accessible as jonjayray (In full: http://www.facebook.com/jonjayray). For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, SOCIALIZED MEDICINE, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena

List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)

****************************

The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)

****************************

Even the British Left think Obama is wrong about the banks

It's just an obvious stunt on Obama's part to distract attention from the meltdown of Obamacare. He's unlikely to get new laws through the Sanate anyway so it is just more of his usual hot air

Alistair Darling warns today that President Barack Obama’s proposals for shaking up the banks would not have prevented the crisis and risk undermining the international consensus on reforming the financial system.

In an interview with The Sunday Times, the chancellor made clear that he saw serious shortcomings in the American approach. “It is always difficult to say ex ante that you would never intervene to save a particular sort of bank,” he said. “In Lehman, for example, there wasn’t a single retail deposit, but the then American administration allowed it to go down and that brought the rest of the system down on the back of it.

“You could end up dividing institutions and making them separate legal entities but that isn’t the point. The point is the connectivity between them in relation to their financial transactions. “Equally, the large-small thing doesn’t run. Northern Rock was very small in global terms but systemically it was quite important when it got into trouble.”

The chancellor said Britain would continue to work with America on financial reform but that any proposals would have to be “workable and deliverable” and that he would not do anything to “disadvantage London relative to the rest of the world”.

Darling’s big worry is that Obama’s bombshell proposals, based on ideas set out last year by Paul Volcker, former chairman of the Federal Reserve Board, will shatter the consensus within the G20 nations on banking reform. “If everyone does their own thing it will achieve absolutely nothing. The banks are global — they are quite capable of organising themselves in such a way that if the regime is difficult in one country they will go to another one, and that doesn’t do anyone any good.”

More HERE

**************************

Why Did the “Stimulus” Fail to Help the Economy?

Spending Money Does Nothing to Address the Economic Factors Causing a Recession

When Congress was debating President Obama’s proposed “stimulus” last year, two of the watchwords for the near-trillion-dollar boondoggle were “jobs” and “shovel-ready.” Now, given what comes out of Washington, one needs a shovel to clean up the muck, and I appreciate the politicians and the media telling us we needed to have our shovels ready.

Now that the numbers are in, however, it seems that money spent had no appreciable effect on lowering unemployment:

A federal spending surge of more than $20 billion for roads and bridges in President Barack Obama’s first stimulus has had no effect on local unemployment rates, raising questions about his argument for billions more to address an “urgent need to accelerate job growth.”

An Associated Press analysis of stimulus spending found that it didn’t matter if a lot of money was spent on highways or none at all: Local unemployment rates rose and fell regardless. And the stimulus spending only barely helped the beleaguered construction industry, the analysis showed.

Keynesians, not surprisingly, have an answer: The government did not spend enough. They reason that economic growth can occur only if “aggregate demand” is great enough to prevent an overall “glut” of unsold goods. (Like the mercantilists before them, Keynesians believe that recessions occur because businesses cannot sell all the goods they produce. Socialists similarly claim that workers are “unable to buy back the products” they make.)

Therefore if government is to prevent the recession-causing “glut,” it must spend whatever is necessary to cover any “shortfall” in private consumption and investment spending. Out of this “theory” we get the present “stimulus,” complete with the blessing of Ivy League economists (who seem to perform the role of the High Priests in today’s political economy).

Such a “theory,” however, is doomed to fail every time, and I wish to give some reasons why.

* Individuals are purposeful creatures, so their spending also will reflect their own purposeful behavior. (It is interesting that many people who endorse the “aggregate demand” terminology also decry what they see as “mindless consumption of the masses.”)

* The economy is not a blob into which one stirs in money the way one stirs in an ingredient into a cake. In other words, the economy does not have a “just add money” in a recipe. It is driven by people making purposeful decisions.

* An economy has a structure of production that when working well directs resources, labor, and capital toward those areas of production that reflect the desires and needs of consumers.

* When governments expand money through the central bank, the rush of new money distorts the production structure and changes the relative value of assets and factors of production. In the early stages of this government-inspired boom, the malinvested assets (the ones that become more valuable as a result of the artificial boom itself) expand relative to other assets.

* The credit-fed boom ultimately cannot be sustained, and it becomes painfully clear that malinvested assets (see the housing-real estate bubble) quickly lose their value relative to other assets. This is the beginning of the recession, which is a period in which the economy begins to reassert the “consumer-preferred” value of economic assets.

Attempts to “stimulate” the economy through massive government spending may put money into the pockets of politically connected people, but it does nothing to restore the economic factors to their proper balances. Instead, the “stimulus” only serves to further distort the economic fundamentals and prolong the downturn.

That’s right. The stimulus has not staved off a major depression; instead, it has ensured the greater likelihood of a major economic collapse by keeping the factors unbalanced and distorting the structure of production.

The fact that the “elite” economists ignore (or even mock) what is known as the Austrian Theory of the Business Cycle does not change the fact that it explains why the Keynesian “solutions” are making things worse. Government can no more end a recession by pouring new money into the economy than one can end a fire by pouring on gasoline. But it can burn down our economic house.

SOURCE

********************

The TSA at work again

Why can't they empoy people with a few brains?

A college student returning to school after the winter break fell victim to a prank at Philadelphia's airport by a Transportation Security Administration worker who pretended to plant a plastic bag of white powder in her carryon luggage. The worker is no longer employed by the TSA after the incident this month, a spokeswoman said.

Rebecca Solomon, 22, a University of Michigan student, wrote in a column for her campus newspaper that she was having her bags screened on Jan. 5 before her flight to Detroit when the employee stopped her, reached into her laptop computer bag and pulled out the plastic bag, demanding to know where she had gotten the powder.

In the Jan. 10 column for The Michigan Daily, she recounted how she struggled to come up with an explanation, wondering if it was bomb-detonating material slipped in by a terrorist or drugs put there by a smuggler. "He let me stutter through an explanation for the longest minute of my life," Solomon wrote. "Tears streamed down my face as I pleaded with him to understand that I'd never seen this baggie before."

A short time later, she said, the worker smiled and said it was his. The worker "waved the baggie at me and told me he was kidding, that I should've seen the look on my face," she said.

Solomon said she asked to speak to a supervisor and filled out a complaint, and during that process was told that the man was training TSA workers to detect contraband. Two days later, she said, she was told he had been disciplined. "I had been terrified and disrespected by an airport employee," she said. "He'd joked about the least funny thing in air travel."

More HERE

*********************

Taxpayers, Shareholders Should Be Furious Over Olbermann Comments

After MSNBC talking head Keith Olbermann predicted the downfall of democracy due to yesterday's U.S. Supreme Court easing restrictions on political speech, a policy expert at The National Center for Public Policy Research notes that taxpayers should be outraged. Not only is Olbermann calling for reduced freedom in America, but the company that employs him has been using its own influence to save itself at taxpayer expense, says National Center for Public Policy Research Free Enterprise Project director Tom Borelli.

The decision in Citizens United v. Federal Election Commission eases certain restrictions on the free speech of businesses, associations, organized labor and certain advocacy groups with regard to their participation in political campaigns. Olbermann suggested the decision in the Citizens United case would lead to corporations and wealthy citizens essentially buying lawmakers. MSNBC is currently owned by General Electric.

Borelli said: "To call increased political participation a threat to democracy is ludicrous. What seems to be the case is that Keith Olbermann wants to keep the playing field clear for his employer. "Taxpayers kept GE solvent by bailing out GE Capital - the company's financial arm. Yet the company now escapes Obama's assault against the banking industry. Additionally, GE's lobbying army - which has a $20 million annual budget - helped secure hundreds of millions of dollars for the company's utility customers from Obama's economic stimulus package, and the Waxman-Markey cap-and-trade bill that passed the House of Representatives would mandate the purchase of renewable energy products such as GE's wind turbines.

"Let's also not forget that taxpayer money was also used to prop up GE during the credit crisis. Shockingly, it's our money that was used to pay Keith Olbermann's salary.

Both shareholders and taxpayers should be outraged because GE CEO Jeff Immelt and Olbermann continue to use MSNBC to attack the American people in a failing effort to defend President Obama's left-wing policies. Ultimately, for them, this effort may be a marketplace failure. To wit, GE's NBC unit just today reported a 30 percent drop in profit. "Immelt and Olbermann may have secured favors from the Obama Administration, but they are just continuing to prop up a losing enterprise."

SOURCE

*********************

ELSEWHERE

Obama: Campaign finance ruling 'devastating': "President Barack Obama says he can't imagine "anything more devastating to the public interest" than the Supreme Court's decision to ease limits on campaign spending by corporations and labor unions. He also suggested in his radio and Internet address Saturday that the ruling could jeopardize his domestic agenda. In the 5-4 decision Thursday, the high court threw out parts of a 63-year-old law that said companies and unions can be prohibited from using their own money to produce and run campaign ads that urge the election or defeat of particular candidates by name. "This ruling opens the floodgates for an unlimited amount of special interest money into our democracy," the president said."

Union membership in the private sector falls to an all time low: "Union membership in the private sector declined in 2009 to a record low of 7.2 percent, as a recession eroded employment in labor-organized industries such as construction and manufacturing, a U.S. report showed. The figure compares with 7.6 percent in 2008, according to data released today by the Labor Department. Union membership made up 12.3 percent of the total workforce, down from 12.4 percent in 2008. It increased among government workers to 37.4 percent from 36.8 percent."

Socialism and death in Haiti: "As President Obama and his cohorts struggle over what to do now with their socialist health-care plan in response to the Democratic defeat in Massachusetts, now would be a good time to point out one of the biggest reasons for the enormous death toll in Haiti — socialism. Yes, I am referring to the economic philosophy of American liberals — the people who purport to love the poor but whose economic policies condemn the poor to destitution and even death.”

SarBox might be coming to an end: "Prospects for substantial relief from or repeal of one of the most burdensome corporate regulations in recent memory have suddenly grown in Congress and in a constitutional challenge before the U.S. Supreme Court. The regulation is known as the Sarbanes-Oxley Act of 2002, or SarbOx. Rushed through Congress and signed by President Bush in the wake of the Enron and WorldCom scandals in 2002, the law has quadrupled the costs of the audit process for public companies and achieved little in preventing fraud.”

Church of England congregations fall again, and half are retired people: "The Church of England has been hit by a new slump in its congregations, with the latest figures showing its fifth year-on-year decline. Also, the Church’s first analysis of its worshippers showed that nearly half are pensioners. The established Church has lost more than 40,000 worshippers since 2003, shortly after Dr Rowan Williams became Archbishop of Canterbury in December 2002. Average weekly attendance fell from 1.187 million in 2003 to 1.145 million in 2008. In spite of a rise in the number of children and young people at services, the average age of a member of a Church of England congregation is 61, according to statistics published yesterday. The figures also show a slight acceleration in the rate of decline in the past 12 months, indicating that there may be even worse news in years to come... Just under 3 per cent of the population, or 1.7 million people, go to a Church of England service at least once a month. The average Sunday attendance is down to 960,000, with the worst Sunday showing 611,000 adults in a Church of England service that week." [Not mentioned is that the more fundamentalist congregations remain strong]

Britain to cut public employee pay? "Alistair Darling, the chancellor, today warns public sector workers they need to follow the example of the private sector and accept wage cuts if they want to hang on to their jobs. Signalling an assault on public sector pay and bonuses, starting with the highest-paid employees, Darling said it was time for a change of culture. “What is being paid has sometimes lost the relationship it ought to have with what someone actually does. Once that happens, it’s not only unfair, it’s actually grossly inefficient,” he said in an interview with The Sunday Times. He cited the example of private sector firms, two-thirds of which are planning wage freezes or cuts this year as an alternative to redundancies. “There’s a lot of evidence that people in the private sector have taken pay cuts and held on to their jobs,” he said. He is drawing up plans to slash remuneration for some posts and end the routine awarding of extra “performance” payments. It follows an outcry over bonuses in Whitehall and among council and quango staff". [We'll believe it when we see it]

Obama's "gap" increases: "The Rasmussen Reports daily Presidential Tracking Poll for Saturday shows that 24% of the nation's voters Strongly Approve of the way that Barack Obama is performing his role as President. Forty-three percent (43%) Strongly Disapprove giving Obama a Presidential Approval Index rating of -19. These figures come from nightly telephone surveys and are reported on a three-day rolling average basis. Today’s update is the first based entirely upon interviews following Tuesday’s election in Massachusetts and the Approval Index has fallen eight points since Tuesday morning.... Sixty-one percent (61%) of voters nationwide now say Congress should drop health care and focus on the economy."

My Twitter.com identity: jonjayray. My Facebook page is also accessible as jonjayray (In full: http://www.facebook.com/jonjayray). For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, SOCIALIZED MEDICINE, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena

List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)

****************************

The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)

****************************

The Lies of Obama

When politicians are caught out in lies, their supporters often resort to the old cliché: all politicians lie. But that is itself a lie: most don’t. Even among those who do, there are enormous differences in the importance and frequency of the lies. And it is surely now clear that this nation has a far from routine problem in the scale and regularity of President Obama’s lying.

When politicians lie they are usually trying to avoid political damage, or to make themselves look good. Bill Clinton lied (and got himself impeached) to save himself from embarrassment about his relationship with Monica Lewinsky. Hillary Clinton lied about being under fire in Bosnia to enhance her non-existent foreign affairs profile. Richard Nixon was forced from office because he lied to cover up his involvement in a political dirty trick. John Kerry lied about his Vietnam combat experience to blunt his anti-military reputation.

But Barack Obama’s lies are far more corrosive and destructive, because they go the heart of legislation and governance, and so seriously undermine trust in government. His lies generally take a specific form: they attempt to persuade people to vote for him or his policies by categorically assuring them that they need not have the anxieties that they have been expressing. The lies say, essentially: trust me, support what I want, and I promise that what you fear will never happen. But in every case it soon becomes clear either that he knew perfectly well that what the public feared would in fact happen, or that he was giving a firm assurance that he was in no position to give, or that he had no intention of following through on his promise. The accumulated weight of Obama’s deceit is overwhelming:

* During his campaign for the presidency and since, Obama repeatedly assured us that he would protect Medicare against cuts; but he now presses for passage of bills that include savage cuts in Medicare.

* To obtain passage of his first stimulus bill, Obama assured us that 90% of the jobs created would be in the private sector; but as he well knew, most of them were to be in the public sector.

* Early in the health care debate, Obama assured us that he had not said that he favored a single payer system; but he was on record as having said exactly that.

* Obama gave primary voters a firm assurance that if he became the nominee of the Democratic party he would (unlike Hillary Clinton) abide by the campaign finance limits of public funding; but as soon as he became the party’s nominee, he reneged on that pledge.

* During the presidential campaign Obama criticized the presence of former lobbyists in the Bush administration and solemnly assured us that he would appoint no lobbyists to his administration; but once elected he proceeded to appoint even more lobbyists than his predecessors.

* Obama criticized the size of George Bush’s deficit and promised to stop deficit spending if elected; but he has already quadrupled the size of the deficit he objected to and recklessly continues new federal spending in the trillions.

* When campaigning Obama criticized bills before the congress that were too long for anyone to be able to read and promised to stop that; but the bills he has been backing throughout his first year are infinitely longer (2000+ pages) than the ones he criticized.

* Candidate Obama promised an end to the corruption of earmarks and pork, but in the bills he has supported this year there have been more and bigger earmarks than ever before.

* Candidate Obama promised us that CIA personnel involved in the interrogation of terrorists would not be prosecuted; but his administration is now doing exactly that.

* Obama assured a joint session of Congress that the health bill he supported (pre-Stupak) would not provide public funding for abortions; but bitter resistance on the part of House Democrats to inclusion of language to that effect soon proved that it did.

* Candidate Obama promised that he would make sure that there was always enough time for the public to read legislation before it was enacted; but he has done exactly the opposite, repeatedly pressing for even faster passage of even longer bills.

* Candidate Obama met fears that he would be a tax and spend liberal by promising, emphatically and repeatedly, that those earning under $200,000 would see no increase in their taxes of any kind; but he now urges passage of a healthcare bill that breaks that pledge in many different ways, and his unrestrained increase in federal spending makes more tax increases inevitable.

* Candidate Obama promised bipartisanship and an end to partisan bickering; but in a display of especially ruthless partisanship his allies have shut Republicans out of all key meetings on his health care initiative, with the unprecedented result that domestic legislation of historic importance garnered not a single Republican vote in the Senate.

* Candidate Obama criticized his opponent’s plan to tax employer paid healthcare benefits, and promised he would not tax them; but the bill he now backs will do just that.

* Obama had promised that he would not sign a healthcare bill that would add one dime to the federal deficit; but the bill he now backs adds trillions in new federal spending, offset only by new sources of revenue that are both uncertain and more properly seen as offsetting the already existing deficit.

* Obama coerced congress into passing his stimulus bill by promising that if it were passed unemployment could go no higher then 8%; but unemployment is now at 10%, and he could not possibly have had good reason to exclude that possibility.

* Obama promised that his cap and trade legislation will create jobs; but its massive tax increases will certainly hobble the economy and destroy jobs, while green jobs in significant numbers can at best be hoped for, but never promised.

* Obama has repeatedly assured the American people that if they like their current health plan they can keep it; but the House bill which he supported created huge incentives for employers to drop their coverage and shift their members to a public option.

* Obama has just as often assured the public that under his health plan everyone will be able to keep their current doctor; but many are certain to lose their doctors when ObamaCare’s large cuts in Medicare funding induce more doctors to withdraw from Medicare coverage, as they also would were employers to transfer patients to a public option to save money.

* Obama assured a joint session of Congress that his health plan would not fund illegal aliens; but his allies had been busy voting down amendments to that effect. (This was the point of Joe Wilson’s outburst.)

* Obama claimed that Caterpillar’s CEO had told him that Caterpillar would begin hiring again as a result of the stimulus bill; but that individual immediately announced that he had said no such thing, and that Caterpillar would in fact be laying off more workers.

* Candidate Obama promised that Guantanamo would be closed by January 1, 2010; but it is still open.

* Candidate Obama promised that his administration (unlike his predecessor’s) would be so transparent that TV cameras (C-Span) would be there for key deliberations; but an unprecedented level of secrecy prevails as the final stages of Obamacare are negotiated behind closed doors and kept so secret that even the Senate majority whip admitted that he had no idea what was going on. Requests for Obama to honor the promise of C-Span cameras are being ignored.

* To gain traction for his attempt to return a would-be socialist dictator in Honduras to power, Obama claimed that he had been overthrown in an illegal coup; but the congressional research service pointed out correctly that ex-President Zelaya had been removed for constitutionally sufficient cause by legal and constitutional means.

* Obama claims that he wants a public option only to increase choice and competition; but the House bill would clearly reduce choice both by squeezing unsubsidized private health plans out of the market, and by setting rigid conditions on acceptable plans that would narrow available options.

* Candidate Obama claimed that violent radical Bill Ayers was just another guy in his neighborhood; but the record shows that the two had worked closely together.

* Obama assured us that his stimulus bill would create or save a million jobs; but he was claiming as fact what could never have been more than a wild (and highly improbable) guess, and his more recent attempts to justify that guess have been fraudulent.

* Obama assured us that his health plan would never ration care, or “pull the plug” on grandma; but the legislation he backs sets up panels to make crucial decisions on when to withhold care, and it makes such deep cuts in Medicare that rationing is inevitable.

* Obama now assures us that health insurance premiums will not go up if ObamaCare becomes law, insisting indignantly that people who say this have not read the bill; but the legislation forces insurers to cover preexisting conditions, which will compel them to raise premiums substantially.

This is an extraordinary record of serial mendacity. One or two instances might charitably be regarded as rash promises later regretted, or as the wishful thinking of someone who had not thought through the implications of what he was saying. But when it happens again and again—and my 30 instances are by no means exhaustive—only one judgment seems possible: this is the record of a habitual, shameless liar, a man who will say anything to get what he wants. Fool me once, shame on you, fool me twice, shame on me, goes the old saying. But scores of times? How shameful is that for our society when this disgraceful record is never the subject of a reproachful editorial in the New York Times, the Washington Post, or CBS news? Richard Nixon was removed from office, and Bill Clinton impeached for a single lie. Who could look at Obama’s record without concluding that his lying is in a completely different league to theirs?

President Obama evidently believes that he can solve any problem with a speech. But he really does not care whether what he says is true or not, nor does he feel any responsibility to honor the assurances and promises he makes. As a result, this nation is now in a position where it cannot believe a word that he says, and that amounts to an unprecedented crisis of confidence in the Presidency. Democratic government will atrophy if we allow lying on this scale to count as the business as usual of politics. When will the press and the Congress hold him accountable?

SOURCE

**************************

Obama's attack on the big banks may achieve little

Article below from the NYT!

President Obama wants to cut down to size those too-big-to-fail banks. But his vow on Thursday to rewrite the rules of Wall Street left many questions unanswered, including the big one: Would this really prevent another financial crisis?

The president’s proposals to place new limits on the size and activities of big banks rattled the stock market, but banking executives were perplexed as to how his plan would work. Indeed, many insisted the proposals, if adopted, would do little to change their businesses.

Moreover, it was unclear if the twin proposals — to ban banks with federally insured deposits from casting risky bets in the markets, and to resist further consolidation in the financial industry — would have done much if anything to forestall the crisis that pushed the economic system to the brink of collapse in 2008.

Mr. Obama appeared to be leaving crucial details to be hashed out by Congress, where partisan tussling has already threatened another reform the president supports — the creation of a consumer protection agency that would have oversight over credit cards, mortgages and other lending products.

Wall Street figures, many caught off guard by the news, reacted cautiously. “I am somewhat skeptical about how much the federal government can actually regulate,” said John C. Bogle, the founder of Vanguard, the mutual fund giant. “We need to try, but all the lawyers and geniuses on Wall Street are going to figure out ways to get around everything.” Indeed, Mr. Obama acknowledged that “an army of industry lobbyists” had already descended on Capitol Hill, but vowed, “If these folks want a fight, it’s a fight I’m ready to have.”

Shares of big banks — potentially the biggest losers should the proposals be enacted — fell sharply, dragging the broader market down by about 2 percent. Even as the markets stumbled, Mr. Obama — still stinging from the Democrats’ loss on Tuesday of the Massachusetts seat formerly held by Senator Edward M. Kennedy — ramped up his populist approach, one week after he proposed a new tax on large financial institutions to recoup projected losses from the 2008 bailout.

Mr. Obama said the banks had nearly wrecked the economy by taking “huge, reckless risks in pursuit of quick profits and massive bonuses.” The administration wants to ban bank holding companies from owning, investing in or sponsoring hedge funds or private equity funds and from engaging in proprietary trading, or trading on their own accounts, as opposed to the money of their customers. Mr. Obama called the ban the Volcker Rule, in recognition of the former Federal Reserve chairman, Paul A. Volcker, who has championed the proposal. Big losses by banks in the trading of financial securities, especially mortgage-backed assets, precipitated the credit crisis in 2008 and the federal bailout.

It was not clear, however, how proprietary trading activities would be defined. Officials said that banks would not be permitted to use their own capital for “trading unrelated to serving customers.” Such a restriction would most likely compel banks that own hedge funds and private equity funds to dispose of them over time. Officials said, however, that executing trades on a client’s behalf and using bank capital to make a market or to hedge a client’s risk would be permissible.

Federal regulators have already leaned hard on banks to curb pure proprietary trading, and the banks expect that regulators will demand more capital if they keep making risky bets, making the practice far less profitable. Some of the biggest firms, applying a narrow definition, say that pure proprietary trading constituted less than 10 percent of their revenue, and in some cases far less. Morgan Stanley, for example, already abandoned all but two proprietary trading desks last year.

The Buckingham Research Group estimated that the new rules would reduce revenue at Citigroup, Bank of America and JPMorgan Chase by less than 3 percent. Goldman Sachs, which typically derives a tenth of its revenue from such trading, said it would be able to contend with the new rules. “I would say pure walled-off proprietary-trading businesses at Goldman Sachs are not very big in the context of the firm,” David A. Viniar, the firm’s chief financial officer, said in a conference call....

Reaction on Capitol Hill also was muted, partly because neither party wanted to be seen as beholden to unpopular banks. The House bill passed last month would consolidate oversight, require stronger capital cushions for the largest banks and impose regulation of some derivatives. In many ways, the new White House proposal amplifies provisions in that bill that would have left regulators discretion over proprietary trading and excessive liability.

More here

************************

BrookesNews Update

The US economy: A quick survey of the pathetic, the fallacious and the ignorant : If business is neither spending nor hiring then government spending will have a negative effect on the economy. As I have said elsewhere, even if business was hiring and spending the Obama administration's spending, borrowing, regulatory, energy and taxation policies will still cripple economic growth
This economy is no rose garden : The same commentators who didn't see the recession until it ran over them and who still cannot grasp what the hell caused the financial crisis are now telling us that happy days are on the horizon and apart from a few troubled spots the Australian economy can now look forward to steady growth and a falling unemployment rate. But falling unemployment is not in itself a sign of a healthy economy
Is China's economy the world's biggest bubble? : While most observers focus on China's asset boom they are missing an even bigger picture. Her massive boom in fixed capital is running its course. Once it is terminated the bubble will burst
No shock: stimulus is a money loser : The results are in, and last year's $787 billion stimulus not only failed to do what it was supposed to do, but it has also turned out to be one of the worst investments in economic history GOP:
It's Sink or Swim in 2010 : Republicans remain a center-right country. In fact, a recent Gallup poll established that Americans identify as conservative vs. liberal by a nearly two-to-one margin. So, whose advice will Republicans follow in 2010? Will it be that of a fork-tongued Democratic emissary like Tim Kaine? Or will it be that of the GOP's highly motivated, itchin'-to-vote, grass-roots Party faithful?
You can't say that, Senator Reid! : "Harry Reid's dared to not only notice, but comment upon, 'the Negro dialect.' You know, the dialect white Democrats mimic when addressing black churches. The dialect currently in use by young black men struggling to show that they haven't joined Uncle Sam's plantation
Obama's jobs hole: "The unemployment rate will probably rise to about 11 percent. The corrupt mainstream media will have to summon all their considerable journalistic talent to remind the American people in objective news reports that despite the harrowing unemployment numbers, the nation's economy is really in good hands

My Twitter.com identity: jonjayray. My Facebook page is also accessible as jonjayray (In full: http://www.facebook.com/jonjayray). For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, SOCIALIZED MEDICINE, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena

List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)

****************************

The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)

****************************

Bloomberg Hammers Obama, Congress Over Bank Plan

Mayor Says President's Idea To Limit Size And Investments Will Lead To Big Problems For NYC, Including Layoffs

President Barack Obama's demand Thursday that Congress clamp down on the size of banks and their investments got major blowback from New York City Mayor Michael Bloomberg, who said it could cause layoffs and hurt the city.

It's a clash between the president and the mayor. President Obama wants to whittle away at the size of the financial services industry. "The American people will not be served by a financial system that comprises just a few massive firms," the president said.

But Mayor Bloomberg said the banks and Wall Street are part of the bedrock of the city's economy, and efforts to slash their business just means less tax revenue for the city, which brings up the dreaded "L" word. "If that's the case then we'll have to lay off people because it will really hurt our industry," Bloomberg said.

The mayor was so upset about the move -- and a suggestion that Wall Street bonuses be put in escrow, which means the money wouldn't be spent here, wouldn't help the city economy -- he responded with a proposal of his own for members of Congress. "Maybe we should hold back their salaries for a decade or so and see whether the laws they pass work out," Bloomberg said.

The mayor also demanded that the members of our congressional delegation go to the mat to protect the financial services industry, much like senators from Texas protect the oil industry.

Senator Charles Schumer said he will try to protect New York, but that some reforms are necessary. "It's a careful balance. You can't say do nothing because we all know the banks made mistakes, but you can't be so draconian that you cause job loss or make the institutions not function properly," Schumer said.

The banking reforms still have to be negotiated by Congress, where people are still reeling by the effects of the Massachusetts Senate race, so it's anybody's guess what will happen.

Mayor Bloomberg also said that limiting the size of banks will hurt their competitiveness in the global economy.

SOURCE

*************************

ACORN's California Makeover

With help from docile Democratic politicians and journalists, ACORN is attempting to perpetrate yet another spectacular fraud on the American people.

After the American public saw the true face of ACORN last year, hidden camera videos showing its workers across the nation bending over backwards to facilitate underage prostitution, fraud, immigrant smuggling, and tax evasion in the name of social justice, ACORN realized it needed to take emergency action to protect its revenue streams. So among other measures the embattled radical advocacy group is changing the name of its largest state chapter in an effort to keep tax dollars and foundation grants flowing into its coffers. ACORN feels it needs to do this because California ACORN is a critical component of the ACORN empire, boasting 37,000 dues-paying members.

With the fallout from the hidden camera videos, congressional funding of ACORN's election fraud and racketeering business is no longer guaranteed, so ACORN decided to reconstitute its California operation as the "new" group Alliance of Californians for Community Empowerment (ACCE). ACCE claims that it is "up and running as an independent state-wide organization with no legal, financial or structural ties to ACORN."

Of course we know that ACCE is lying. How do we know this? For starters, because ACCE's new executive director is Amy Schur. Schur is a loyal 20-year-plus ACORN employee who has shown her willingness to get her hands dirty for the cause. Marcel Reid, a former member of ACORN's national board, said Schur is corrupt and hopelessly tainted. "If there was true reform, why would Amy Schur be the head of ACCE?" she said. Reid, who with other ACORN whistleblowers formed a group called ACORN 8, was expelled from ACORN in 2008 when she tried to investigate a nearly $1 million embezzlement by founder Wade Rathke's brother. According to the ACORN 8, Schur participated in an eight-year long cover-up of the theft whose exposure in 2008 led to Rathke's ouster.

ACORN insiders say Schur has intimate knowledge of how ACORN operates. Schur has been in charge of the group's national campaigns and is likely to testify later this year in Nevada when ACORN goes on trial for illegally paying canvassers to register Nevada voters in the 2008 presidential campaign. Her testimony could be devastating to ACORN because it could publicly air many of the group's skeletons.

ACCE's office address is shown in the registration as 3655 S. Grand Ave., Suite 250, Los Angeles 90007. That address just so happens to be the address of California ACORN's headquarters too. A new splinter group trying to make a clean break with the original group would presumably have the good sense not to operate out of the original group's office. Or not.

More HERE

***********************

How conservative is Scott Brown? More conservative than you might think

There's been a lot of fretting about exactly how jubilant conservatives should be over Scott Brown's election. Sure, his election may spike health care legislation -- but the Senate has just inherited a Pro-Choice Northeastern Republican who may buck the party on a number of issues going forward.

It's clear that Scott Brown is no Jim DeMint, and it remains to be seen how Brown will assert his independence after repeatedly asserting he wasn't beholden to Washington interests in the campaign. But there's evidence that Brown is much more conservative than your typical Northeastern Republican.

For one thing, while Brown may be pro-choice he's not a social liberal. Last month, the Boston Phoenix published what in retrospect is an hilariously wrong thumbsucker on Brown's Senate race. The theory was that Brown was simply running in the Senate race to elevate his profile so he could run for Governor. Whoops. However, the piece does contain this telling observation: "Throughout his political career, Brown has been considered a staunch conservative. His first race for the State Senate, in 2004, was defined largely by the issue of same-sex marriage, which Brown opposed. He is extremely popular among the conservative base of the state party, say insiders."

That's worrisome to those in the wing of the state GOP — personified by gubernatorial candidate Charlie Baker — who believe the party needs moderate candidates who focus on job creation and fiscal responsibility. They want to downplay social issues like same-sex marriage and abortion, and to distance themselves from the hard-line rhetoric of the Tea Party movement.

The liberal Republicans in the Massachusetts state party actually saw him as a threat because he was too conservative? After last night, it's hard to say Brown's more conservative detracted from his campaign rather than benefited him.

It's also not clear that Republicans in Massachusetts are all that fiscally conservative, even as they try and dodge socially conservative issues. As discussed in my column today, "Are the Reagan Democrats back?", former Democratic state treasurer Tim Cahill renounced his Democratic partisanship on the grounds Democrats are fiscally reckless. Cahill has teamed up with a pro-life Republican state Represenative to run for Governor in Massachusetts. It's now a three way race against an unpopular Democratic incumbent Governor where an independent former Democrat(!) is credibly running to the right of the Republican in the race. That's how liberal the Republican party is in the state.

And Massachusetts may be Democratic, but it's not necessarily liberal. In his report from Massachusetts yesterday, Reason writer Michael Moynihan -- a Boston native -- summed up Massachusetts voters this way: "These guys support labor unions, not civil unions."

Given Brown's demonstrable personal appeal and the fact he campaigned specifically against the Democratic economic agenda, Brown might prove to be able to get away with being more socially conservative and economically conservative than anyone could expect from a Massachusetts Republican.

SOURCE

*************************

Out-of-touch Democrats and the Kamikaze Congress

Democrats across the country are switching parties or retiring, probably because they place greater value on their political careers than in blind party loyalty or supporting a far-left agenda. A new Rasmussen poll indicates that 36% of Democrats “believe their representatives in Congress have lost touch with the party’s voters”, while only 54% say they “have done a good job representing their party’s values over the past several years.”

Obviously, Democrats are not on the same page as their supporters, let alone independents and Republicans. Which page are they on? Whose interests are they representing? And how can they possibly believe that ignoring their constituents will be helpful in winning reelection in November?

Some don’t, which is why they’re getting out of the game with their reputations intact. The rest, who go along with Obama’s disastrous agenda, seem to be committing political suicide, sacrificing their careers to implement long-lasting changes in U.S. government and society that the people do not want. Like Japanese kamikaze pilots of the Second World War, they fly a one-way mission. But this brand of liberalism is no “divine wind,” and the inevitable crash will affect the entire country.

The House of Representatives was designed to reflect shifting public opinion. Today’s problem is that opinion is shifting, and House Democrats aren’t reflecting. They continue to pursue federal health care reform that is unnecessary, unpopular, and unconstitutional. They ignore, or support, the president’s alarming use of policy “czars,” sidestepping Congress and the voters in an unprecedented increase of the Executive Branch’s power. If Democrats refuse to address the problems in the Obama administration, and continue to disparage the legitimate dissent of concerned citizens, they will be dealt a severe blow in the coming 2010 election, which could result in a lost Democratic majority and lame duck presidency only halfway through Obama’s first (and possibly last) term.

This is not to say that Republicans are safe, either. Some in Washington, like Representative Ron Paul and Senator Jim DeMint, are active and vocal in their opposition to the current mad dash toward big government and socialism. Others are disturbingly silent. So-called RINOs (Republicans in name only) may find their seats to be equally at risk in the coming election.

Both major parties have an opportunity to represent the best interests of the American people by embracing the Constitution and the free market, and slowing Obama’s progressive agenda. They have less than ten months until Election Day. There is no doubt that voters will be watching their actions very carefully.

SOURCE

**************************

ELSEWHERE

I am finally able to say something good about Senator Ted Kennedy: He timed his death superbly -- not a moment too soon and not a moment too late. The result: Scott Brown.

New Senate math means rough road for more "stimulus": "The road for another stimulus bill just got tougher following Tuesday’s election of Republican Scott Brown to the Senate in Democratic stronghold Massachusetts. After health care, Congress’ next big priority is to pass something that shows voters in an election year that they’re on top of the nation’s unemployment scourge.”

The coming grab at your wealth and retirement: "Unfortunately, you cannot protect yourself or your family from the feds as long as you stay within American borders. And the most disturbing grabs for your wealth are likely to come from the federal government. Consider just one. … Bloomberg reports that the U.S. Department of the Treasury is officially formulating ways to force a portion of every 401k/IRA account into ‘fixed payment annuities’ — that is to say, into long-term Treasury bonds. In other words, your retirement dollars would be converted into government IOUs. This is the same government debt that Obama cannot peddle overseas anymore because places like China know the greenback is unsustainable in the long run … perhaps in the short run as well.”

Muslim convicted of planning Canadian terror plot: "A member of a homegrown terrorist group was found guilty Thursday of participating in a plot to set off truck bombs in front of Canada’s main stock exchange and two government buildings. Shareef Abdelhaleem, 34, was a member of the so-called Toronto 18 plot to set off bombs outside Toronto’s Stock Exchange, a building housing Canada’s spy agency and a military base.”

Nobody wants to listen to Leftist whining: "Air America Radio, a progressive radio network that once aired commentary from Al Franken and Rachel Maddow, said Thursday it is shutting down immediately. The company founded in April 2004 said it ceased airing new programs Thursday afternoon and will soon file to be liquidated under Chapter 7 bankruptcy. It began broadcasting reruns of programs and would end those as well Monday night. Air America said 10 consecutive quarters of declining ad revenue and the difficulty of making money on the Internet contributed to its financial woes. ‘The very difficult economic environment has had a significant impact on Air America’s business. This past year has seen a `perfect storm’ in the media industry generally,’ the company said in a statement on its Web site. The network had some 100 radio outlets nationwide.”

Report: Army betting big on ray guns: "The ray gun is real … or at least it will be soon. The U.S. Army is betting big on laser warfare — designing, testing and perfecting ultra-precise weapons based on devastatingly powerful beams of light. And given recent developments, it’s only a matter of time until the military has in its arsenal a weapon that until now has been the staple of science fiction — the ray gun. Set your phasers to kill. Boeing, one of the Pentagon’s top contractors, already has a laser weapon that will improve the military’s ability to counter artillery, mortar, drone aircraft and even rockets, a spokesman tells FoxNews.com.”

Earthquakes and economic development: "Think of all the jobs that will be created in rebuilding Port-au-Prince’s presidential palace, its port facilities and other infrastructure destroyed by nature’s wrath! Money will pour in from the United States, China, and Western Europe to succor the earthquake’s victims and to finance repairs and new construction activity. Haiti will rise from the ashes and be lifted out of poverty. Or so the story goes. Nothing could be further from the truth.”

Haiti’s real crisis is poverty: "Haiti’s poverty — 80 percent of Haitians live on less than $2 per day — is especially tragic given the strong link between poverty and vulnerability to natural disasters. A study by the Belgium-based Centre for Research on the Epidemiology of Disasters looked at a recent 30-year period comparing natural disasters in the world’s 10 richest countries to those in the 10 poorest countries. The center found that the average annual number of victims per 100,000 population per rich country was 36; for the poor countries it was 2,879 even though rich countries experience the same amount of disasters. Why is Haiti so vulnerable? Its insular economic policies and dysfunctional institutions have kept Haitians poor.”

My Twitter.com identity: jonjayray. My Facebook page is also accessible as jonjayray (In full: http://www.facebook.com/jonjayray). For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, SOCIALIZED MEDICINE, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena

List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)

****************************

The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)

****************************

A revolution begins

By Boston Herald Editorial Staff

It was - for the second time in Massachusetts history - the shot heard round the world, or at the very least from coast to coast and surely in the halls of Congress. Scott Brown won this one fair and square with his down-to-earth charm, his hard work and his forthright position on issues - and with the help of that much-disparaged by the opposition pick-up truck.

But it is also true that Brown was the right candidate at the right time with the right message. And it’s that message that the White House and congressional Democrats can no longer ignore. After all, if the people of Massachusetts can send a Republican to the U.S. Senate to fill the seat Ted Kennedy had a lock on for 47 years, then the revolution has indeed begun. And like that battle in Concord more than two centuries ago, this is only the opening round.

Her fellow Democrats will attempt to blame the loss entirely on Martha Coakley, her inability to connect with voters, her verbal blunders and on assuming her primary victory was all she needed. Much of that is true, but it is also true that Coakley promised to be simply more of the same. And voters here are tired of more of the same.

They don’t see the point of an expensive new health care bill that threatens to damage the health care industry here, disrupt service to Medicare recipients and tax us all - especially when we already insure 97.4 percent of our people.

They don’t see the point of paying higher and higher energy costs, when the world’s pollution is not our fault.

They don’t see the point of growing the deficit so that our children and grandchildren will be paying for today’s policy mistakes - including a $787 stimulus bill that didn’t.

Most of all they are simply tired of the kind of Washington arrogance that says “don’t worry, we know what’s best for you.” Voters of Massachusetts wanted to take back the power that has been so sorely abused. Yesterday they did.

SOURCE

***************************

A blessing in disguise for the Democrats?

By Jeff Jacoby

IT REALLY IS the people's seat, and on Tuesday the people of Massachusetts took it back. But in electing Scott Brown instead of Martha Coakley to replace Ted Kennedy in the US Senate, the Bay State's voters did more than hand the GOP its most improbable and thrilling come-from-behind victory in a generation. They did more than embrace a charismatic, upbeat Republican and reject a dour, gaffe-prone Democrat. And they did more than prove that no political party has a permanent lock on any state's electoral loyalties.

They also gave President Obama and the Democratic left a blessing in disguise -- if only they are wise enough to recognize it.

Brown ran explicitly against Obama's polarizing domestic agenda -- especially the radical health-care overhaul that the president has made his No. 1 priority. Not long ago, such a campaign strategy would have been dismissed as suicidal. But the harder the administration and the Democratic leadership in Congress have pushed their health legislation, the more unpopular it, and they, have grown. At a Coakley rally in Boston on Sunday, it spoke volumes that Obama made not a single direct reference to the health-care bill he has championed -- and that Brown promises to be the 41st vote against.

Politically, ObamaCare has backfired. No president in the modern era has ended his first year in office with disapproval ratings so high. Much of the goodwill with which he entered the White House has been squandered, and any effort to try to force the health bill through Congress now would drive what's left of that goodwill right over a cliff.

But that isn't going to happen. Brown and the voters of Massachusetts have killed ObamaCare for good. In so doing they have given the president a priceless second chance to adjust his political course, move toward the center, and deliver at least some of the bipartisan cooperation that was at the heart of his once-enormous appeal. They have given him that chance, moreover, nearly 10 months before the 2010 midterm elections. If Obama seizes the opportunity that Massachusetts and its likable senator-elect have just given him, those elections need not be a calamity for his party. With some restraint and wisdom now, the brightest days of his presidency may be still to come.

SOURCE

**************************

A blue collar approach pays off for GOP

Republican Scott Brown shocked the nation and turned Massachusetts politics on its head. But how did he do it? A Suffolk University poll taken Nov. 8 showed Democratic candidate Martha Coakley leading by 31 points -- a staggering advantage most political observers believed could not be surmounted by Brown, one of just five Republicans in the Massachusetts state Senate.

But a series of factors conspired to allow Brown to do what seemed impossible in November, and his luck began to change right after the state's Democratic primary that month, when Coakley made what many now view as an unwise decision to take a break from campaigning.

Brown, on the other hand, hit the ground running, going door to door in working-class neighborhoods across the commonwealth in his old pickup truck, delivering a populist message that resonated with people suffering under the state's sour economy. Brown talked about job creation, the deficit and overspending in Washington. And he pledged to put the brakes on the unpopular Democratic plan to reform health care. "He's been going door to door, town to town," said Brown backer Shawn Littlehale, of Norwell. "Martha Coakley has been hiding."

Brown also put out a series of well-received ads, including one in which he seemed to appear in a campaign ad produced by John F. Kennedy when he ran for the same seat in the 1950s and promised a tax cut. Brown also used social media like Facebook, Twitter and text messages to supporters to get voters to the polls and for a massive rally to counter a Sunday appearance by President Obama.

While Brown capitalized on Coakley blunders that became almost too numerous to count, it was his substance and style that eventually won over voters, even in the face of an onslaught of negative campaign ads put forward by the Democratic National Committee. "Brown focused the discussion on the issues that really matter in Massachusetts," Ron Kaufman, former adviser to Mitt Romney's presidential campaign, told The Examiner. "And it connected with the voters in a big way."

Voters said that aside from his political stance, they liked Brown's low-key, authentic style, which contrasted to what many perceived to be an aloof and out-of-touch Coakley. His appeal was so great, even Coakley volunteers were swayed by him, including phone bank worker Carol Caryl, 70. "He has a certain amount of charisma, driving that truck," Caryl said.

SOURCE

***********************

Can You Say "Lame Duck"?!

Albert Einstein, whom even the most zealous Obamatons would have to admit was at least a trifle smarter than their own icon, once defined insanity as "doing the same thing over and over again and expecting a different result. Mr. Obama, welcome to your padded room. We trust you will find the straight-jacket more than comfortable.

Even as Scott Brown was obliterating Martha Coakley in the race for "Ted Kennedy's seat," a typically petulant Barack Obama was sending out the word that he was right, the American people were wrong – and they had better change their ways. As the popular Washington newspaper Politico reported just before the results begin pouring in: "President Barack Obama plans a combative response if, as White House aides fear, Democrats lose Tuesday's special Senate election in Massachusetts, close advisers say."

So, there you have it. And one is reminded of the late Dick Tuck's concession speech after his loss in the 1966 California State Senate election: "The people have spoken, the bastards."

Make no mistake about it: The Coakley defeat in Massachusetts was an outright and utter rejection of Barack Hussein Obama and his entire leftist agenda. He can twist and spin it anyway he wants; he can bob and weave, shuck and jive, attempt to end run the legislative system, and attack the American people as much as his unrepentant heart desires.

But, the fact is: Denial is not just the name of a river in Egypt. Martha Coakley ran as an Obama Democrat. She embraced his every deficit spending spree, tax increase, and Big Government takeover scheme – just as she embraced the man, himself, when he journeyed north to give her his ringing endorsement. That endorsement was supposed to turn the tide. It was supposed to make people's eyes once again glaze over and prompt them to pull the leftwing lever as they had done for the Wizard of Ooze barely a year ago.

But something has clearly changed – and that something is the view the American people now have towards a president who openly rejects their values, cynically denigrates their mores, and angrily denounces their "trifling" objections to his overriding will.

So, now, over the next four to five days, the world will watch while Barack Obama makes a decision that will fix his place in history: will he reorder his steps and work the people's will – or will he double down on insanity? Let's put it this way: If the smart money could talk, it would likely query, "Can you say "lame duck"?

SOURCE

*****************************

White House Hopes for Economic Growth But Wont Change Its Counterproductive Policies

Yeah, well, good luck with that! The irrational policies coming from this administration couldn’t be more wrong. If they were truly trying to promote an economic expansion, without a doubt they would change them. The tried and true methods to promote economic growth don’t include any of the following: tax hikes, a weak dollar, trade wars, additional regulatory burdens, increased energy costs or a takeover of the health-care industry.

Only a year ago, Democrats were mouthing phrases denoting the sheer folly of raising taxes in a recession. Having passed their massive public spending free for all they called a “stimulus” and wasting a mountain of taxpayer dollars are results that are, at best, unimpressive. It has resulted in the creation of a large number of bogus jobs but very few real ones. But it has been fairly good at increasing the wages of public sector employees (people who are already employed) and building a few skate parks.

Now their sensible tone along with any notion that fixing the economy as job one is gone. The Obama Administration, along with Congress, has been thrown under the progressive bus in favor of their standard class warfare vernacular, an ideology they are much more comfortable articulating. Once again they’ve wrap themselves in the mantle of public savior, guarding the poor and saving the planet and the workingmen and women of America from evil capitalists and business owners everywhere. Righteous crusaders, who but for the lack of an extra trillion or so more tax dollars can make all of our wildest dreams come true.

It is the focus of their ire, businesses and the rich whom I call capitalists (you know, the ones with capital) who will actually lead us out of this economic malaise. Whether the time is right for them to lead is dependent solely upon their own very rational assessment of the business climate going forward, and that outlook is not promising. The President and his advisers hope that browbeating bankers will lead to more business borrowing to expand output and create additional jobs. He acts as though CEO’s will plow ahead, willy nilly, borrowing and investing no matter how many additional burdens he and his political allies on the hill ask them to bear.

As far as private sector job creation goes, the Obama has missed the point entirely. This is quite possibly because very few of his advisers know anything about the private sector, as most of them have never worked in it. So I’m going to let him in on the dirty little secret of job creation, one that those of us out here in the real world already know. Businesses borrow money only so that they can earn additional profits, jobs that are created are really incidental to their focus, which is to grow the bottom line. Many of the policies the President promotes serve only to diminish the ability of a business to earn a profit. No Profit! No Growth! No Jobs!

The Business world is totally different than the political world. Companies don’t have to expand. Investors don’t have to risk their capital. They only do so when the conditions in place enable them to forecast an increased profit. When CEO’s look at projections showing a bottom line that is shrinking, their thoughts are not of expansion and job creation, but rather they work nonstop trying to rationalize their cost structures to insure profitability, enabling them to survive the downturn. Labor savings is at the top of the heap when it comes to cutting expenses.

The good news is that an accelerated recovery can get underway any time the administration wants, but it will require them to make that hard pivot they have been talking about. They need to turn away from raising taxes, encourage the production of our domestic energy resources and stabilize the value of the dollar.

Domestic drilling will directly create thousands of jobs in US oil fields and have the added benefit of reducing energy prices, enabling a more robust economic recovery and the jobs that come along with it. The prospect of lower taxes and a stable dollar will renew the incentive for investors and their capital who are clearly watching from the sidelines to get back into the game of providing the fuel for economic growth. The nightmare of a health care bill, which seeks to punish healthy people with higher premiums and younger folks with fines for being young needs, to be scrapped in order to promote an economic environment that is, if not employer friendly, at least not hostile.

SOURCE

***************************

ELSEWHERE

Stealth propaganda: "An obscure 2008 academic article gained traction with bloggers over the weekend. The article was written by the head of Obama’s Office of Information and Regulatory Affairs, Harvard Law Professor Cass Sunstein. He’s a good friend of the president and the promoter of the contradictory idea: ‘libertarian paternalism.’ … Obama’s Regulation Czar is so concerned about citizens thinking the wrong way that he proposed sending government agents to ‘infiltrate’ these groups and manipulate them. This reads like an Onion article: Powerful government official proposes to combat paranoid conspiracy groups that believe the government is out to get them … by proving that they really are out to get them.”

Russia diversifies into Canadian dollars: "Russia’s central bank announced on Wednesday that it had started buying Canadian dollars and securities in a bid to diversify its foreign exchange reserves. Analysts said the move could be a sign of increased diversification of emerging market central bank assets away from the dollar and into investments denominated in other commodity-linked currencies, such as the Australian dollar. Adam Cole at RBC Capital Markets said if taken in isolation, Russia’s announcement that it was buying Canadian dollars was not significant, but if it was part of a broader trend, then it was an important step. “If it is a barometer for the activity of other central banks, then its is structurally positive for the currencies of countries like Canada and Australia that have a commodity bias in their economies,” he said. Although not officially confirmed, traders said that other emerging market central banks, including some in Asia which hold large foreign exchange reserves, have also been active in the foreign exchange market in recent weeks buying both Canadian dollars and Australian dollars. [Obama's red-hot printing press has destroyed confidence in what was for many years the world's most trusted currency -- the U.S. dollar]

My Twitter.com identity: jonjayray. My Facebook page is also accessible as jonjayray (In full: http://www.facebook.com/jonjayray). For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, SOCIALIZED MEDICINE, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena

List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)

****************************

The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)

****************************

A kick in the teeth for Obama, Reid and Pelosi

The Massachusetts Senate result has shown that lies and fancy talk might get you into office but in the USA you still have democracy to deal with -- and arrogance will get you nowhere there.

Scott Brown is every American conservative's hero today.

*********************

‘Barack Obama made a lot of promises but they meant nothing’

Voters in Massachusetts cast their votes yesterday amid freezing temperatures and falling snow. They provided a window to America’s sour mood, even in this traditional Democratic stronghold.

Voters spoke of disappointment that President Obama had not made good on his soaring rhetoric. Pat Tobin, a saleswoman who voted Republican yesterday, said: “When people say ‘change’ there should be something behind it. Obama made a lot of promises of ‘change’ but I don’t think it meant anything.”

Craig Provost, an industrial designer who voted Democrat, said: “I think there is a backlash against Obama because he has not fulfilled all his campaign promises. But I think he is doing a good job.”

Voters in traditionally Irish-American South Boston, known as “Southie”, backed Mr Obama by 59-40 per cent over John McCain in the 2008 presidential election. But the area is more conservative than Boston as a whole. It is these “Reagan Democrats” — white working-class voters who defected to the Republican Ronald Reagan in the 1980s — who are now having second thoughts about Mr Obama and the Democrats.

During the campaign, Scott Brown, the Republican candidate, a lawyer, state legislator, US Army National Guard officer and former model, aired an advert showing himself strolling around “Southie” shaking hands. Martha Coakley, his opponent, alienated many white working-class men by failing to know her baseball facts and mocking her opponent for campaigning in the cold outside Fenway Park baseball stadium.

Jean Holland, an accountant who voted for Mr Brown yesterday, said she felt let down by Mr Obama. “I really thought when Obama got in he would be more for the working class people,” she said. “He’s not doing much right now. He’s dragging his feet. He has got a lot going on with the wars.”

Matthew Gagliano, a mechanical engineer, also voted for Mr Brown. Many voters voiced deep misgivings about the Democrats’ healthcare reform proposal, saying neither the country nor they could afford it. “Obama is doing a good job but I don’t like the healthcare situation,” he said. “It’s too much government control. I do not want taxes to go up.” Christine Creed, a bank worker who voted for Ms Coakley, said: “A lot of people are afraid of healthcare reform. People are nervous. But there is hope. In 2010 the economy should pick up.”

SOURCE

*********************

Why is academe so Leftist?

The NYT has just come out with some half-reasonable thoughts on that and I have added a few comments in my leading post today on EDUCATION WATCH. For readers in a hurry, however, I will repeat below my preamble to the article:

There is much that is reasonable in the NYT article below but it ignores the numerous reports from conservative academics of the discriminatory treatment that they have received in their workplaces. My own experience is typical. Probably because I was an obvious high-flyer from the beginning, I was APPOINTED (at age 27) with tenure. I didn't have to wait for tenure. So when they found out that I was a conservative, they could not kick me out. But they COULD block my promotion. And they did. Although I was in some years getting as much published in the journals as the whole of the rest of the Department put together, I only ever managed to get one step up the ladder. With the amount I was getting published, I should have FLOWN up the ladder.

Another thing the article below ignores is that the unrealistic ideas of Leftists make them unsuitable for work in business. My realistic conservative ideas meant that I did well in both business and academe but the only Leftist I know who went into business eventually went broke. Academe is a refuge for dreamers who couldn't make it elsewhere. I look at the issues concerned in greater detail here

******************

Republicans learn to play the technology game

A year ago, many journalists and political pundits believed that a paradigm shift had occurred in the 2008 election. In electing the first black president, Democrats won states that had been out of reach for decades (Virginia, North Carolina and Indiana) and showed surprising strength in the reddest of red states (Montana, North Dakota, and Arizona). There was considerable sentiment on the Left that like 1968 or 1932, Obama’s win in 2008 had been a realigning event. John Judis of the New Republic and other liberal political analysts believed the election, held amid an economic meltdown, had sped up emerging trends and would give Democrats the upper hand for years to come.

Democratic success among Latinos, urban professionals, and women had helped build a new coalition that would endure as white males receded like mastodons at the end of the Pleistocene epoch. As Washington Post columnist Harold Myerson gushed after Obama’s win: “The future in American politics belongs to the party that can win a more racially diverse, better educated, more metropolitan electorate. It belongs to Barack Obama’s Democrats.”

Except in Virginia, and New Jersey and maybe Massachusetts. And to the 60 percent of respondents in the latest National Journal poll who thought that things would be the same or better if John McCain had been elected in 2008. Democrats argue that these are only bumps in the road – that George W. Bush had been even worse than they said (which hardly seems possible) and that it will take a couple of years for the transformation to take hold.

But the liberal euphoria was based on two erroneous assumptions: First, that the Republicans would be frozen in time on the day after the election; second, that Barack Obama would govern as he campaigned, as a cool, competent centrist open to new ideas. President Obama has wielded power awkwardly and behaved like an unimaginative partisan. Watching clips of the candidate talking about televising the health-care negotiations on C-SPAN reminds us how much difference there has been between the dream and the reality of Obama. But even if Obama rediscovers the magic that made Myerson and Judis believe that a new era of Democratic dominance had arrived, the question of how the GOP would react was still to be settled.

When the Franco-Prussian War began in 1870, the French believed the outcome would be the same as it had been in previous generations: an easy victory over a weak Germanic foe. Instead, France rushed into war and swiftly lost 140,000 men to Kaiser Wilhelm’s army and, perhaps, the national will to fight. The French mistake was to believe that their old enemy had stayed the same.

Of all of the rhapsodies composed by journalists about the 2008 Obama campaign, some of the most fervent were devoted to technology. Obama was the guy with Scarlett Johansson’s e-mail on his BlackBerry. John McCain thought that Google had a definite article. Obama had a YouTube channel with 1,110 videos, 13 million names on an e-mail list and his own social networking site (MyBO). Obama’s foot soldiers were mobilized by texts sent directly to their smartphones, and more than a half-billion dollars came in from online contributors.

New York Times media columnist David Carr sneered at the “crude and expensive” networking technology of the Bush administration, and suggested that Obama might use the new technologies of the Facebook and Twitter era to transcend party politics. “Political parties supply brand, ground troops, money and relationships, all things that Mr. Obama already owns,” Carr wrote. It turns out that Obama’s network has had limited value since he took office, in no small part because his digital army includes many of the young voters likely to be disillusioned by his old-fashioned approach to governing.

Even so, Republicans learned some valuable lessons during the campaign. GOP members of Congress have more than twice as many Twitter followers than their Democratic counterparts and tweet five times more often. Minority Leader John Boehner may look like a character from Mad Men, but the Don Draper of the House has a “director of new media” and more than 30,000 Facebook fans – almost four times as many as Nancy Pelosi.

SOURCE

**************************

Feds find little fraud at big Wall Street firms

While the American public and Capitol Hill lawmakers appear to blame wrongdoing on Wall Street as the primary cause of the global financial crisis, federal law enforcement agencies have had little success in finding and prosecuting instances of fraud at the nation's major investment firms. Attorney General Eric H. Holder Jr.s testimony before the Financial Crisis Inquiry Commission last week, while boasting of thousands of cases against small-time defrauders running mortgage scams, was notable for the absence of a single example of successful prosecution of crimes by the big firms on Wall Street.

The Justice Department last year lost the only case it has brought against Wall Street executives involving suspected fraud in connection with risky subprime mortgage securities. A U.S. District Court last year acquitted two Bear Stearns hedge fund managers whom the government accused of fraud.

The Justice Department and other federal agencies have beefed up the administration's financial crimes task force to ferret out more wrongdoing, but the cases thus far overwhelmingly target small, local operators — including mortgage brokers, appraisers and real estate agents — as well as borrowers who lied to get home loans. The department has opened 2,800 investigations of mortgage fraud throughout the country. Hundreds of cases are pending in states that were tied to the housing bubble, such as Florida and California. Criminal charges have been filed against 826 suspects, but only two of whom — the Bear Stearns traders — worked on Wall Street.

While public outrage has largely targeted Wall Street, the government has consistently said that fraudulent operations were spread across the country and encompassed every sector related to housing and mortgage finance. "Mortgage fraud has swept through our economy," Assistant Attorney General Lanny A. Breuer told the commission, and it has continued in the aftermath of the financial crash. New scams, he said, are taking advantage of people who are in default on their mortgages and in danger of losing their homes to foreclosure.

Steven Malanga, a senior fellow at the Manhattan Institute, said the department's findings show that pervasive cheating helped create the housing crisis. Some borrowers, he said, lied to obtain loans or took on risky mortgages to make quick profits but walked away from their obligations when the market turned. "During the housing bubble, cheating became so commonplace that those who did it were barely considered to be engaging in fraud," he said. "It is possible that hundreds of thousands, and even millions, of borrowers, brokers and salespeople cheated over the space of just a few years, helping to bring down themselves and an entire industry, and contributing mightily to the economic and fiscal predicaments in which we find ourselves."

The public frenzy against Wall Street has resulted in proposals in Washington for hefty new taxes on bonuses and securities transactions and for breaking up the biggest financial firms....

More here

**********************

Kangaroo court for the banks

The big banks were bit players compared to what the politicians and "regulators" did

As a general rule, diagnosis should precede treat -ment, but last week, we saw in both the legislative and executive branches examples of the treatment-before-diagnosis" mentality. In Congress, the first hearing of the congressionally created Financial Crisis Inquiry Commission was held under the chairmanship of Phil Angelides, former California treasurer and former chairman of the California Democratic Party. The commission was "mandated" by law to report back to Congress by December 2010 "with a series of conclusions about what occurred, and recommendations as to how to avoid future market breakdowns.

Mr. Angelides led off his first hearing, to which he had called the chief executives of some of the leading New York banks with a demand that they accept blame for the financial crisis, by saying he was "troubled by [the bankers'] inability to take responsibility." With the chairman having decided on the first day that the bankers were responsible for the financial meltdown, what is the point of the commission? Can't they even bother to fake an intent to carry out their responsibilities as the law requires?

Even weirder, the Democratic leaders have made it clear that they plan to pass their financial re-regulation act before the November elections - even though legally they call for recommended changes from the commission to be reported back to them after the election - in December.

Sadly, Mr. Angelides' kangaroo-court attitude does not seem to be an aberration. On Saturday, President Obama, in the words of The Washington Post, "unleashed a verbal barrage against the nation's largest banks, accusing them of wanton selfishness by refusing to accept new regulations he and his party are proposing, and for fighting a new tax that Obama wants to impose."

The president proposes enacting a Financial Crisis Responsibility Fee, which would be a $90 billion tax leveled against the 50 largest banks, which, according to the Post "Obama called responsible for pushing the nation into economic crisis. By paying the tax, the nation's largest banks would settle their debt to taxpayers." That the banks paid back, with interest, the money lent to them by the taxpayers does not excuse them from this new tax.

Note that not only are the president and the commission chairman assuming they know the cause that the commission is assigned to find, but also that this new tax would establish a precedent that any person or business can be taxed or fined for any harm Congress thinks he or it did to the economy.

On this theory, everyone who contributed to the real estate and stock market bubbles, the breaking of which "caused" the crisis, could be taxed for the "effects" of their economic conduct. Under that theory, everyone who bought real estate or a stock after, say, 2005, should be taxed for a crime against society. Perhaps the Democrats would apply this theory to education. They could tax the teachers' unions and their members for "causing" generations of ill-educated children.

But beyond such foolishness, the fundamental danger of this mentality is that if they are wrong that the banks caused the crisis, their remedies in the form of new regulations and taxes may not make the economy safer. Rather, they may needlessly encumber and tax our financial institutions and drive financial business to unregulated Asia - and with it, our future prosperity....

Three-quarters of a century later, serious economists are still vigorously debating the causes for the Great Depression and its persistence. Wouldn't it be wise to spend at least a few months trying to find out the real causes of our current economic crisis before committing major surgery on a financial system that has over the past century permitted the United States to become the greatest economic engine in human history?

More here

My Twitter.com identity: jonjayray. My Facebook page is also accessible as jonjayray (In full: http://www.facebook.com/jonjayray). For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, SOCIALIZED MEDICINE, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena

List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)

****************************

The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)

****************************