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  • Morning Bell: Washington's Unprecedented Power Grab

    On Nov. 9, the communist Chinese government announced a $586 billion economic stimulus plan that party leaders hailed as a “New Deal” for the people. Here in the United States, a supposedly “conservative” administration has already enacted $333 billion in “emergency” spending bills and another $105 billion in tax rebate checks. But that is just the beginning. The Treasury Department has also already given away $300 billion to an undisclosed number of banks and financial institutions as part of its Wall Street bailout plan. That’s over $700 billion in new government spending in the past year alone. Our government has also guaranteed the debt of Bear Stearns, American International Group, and Fannie Mae and Freddie Mac. And guess what? Economists now predict that eventual cost of the Fannie and Freddie bailout will exceed $200 billion. All told Washington is on the hook for over $5 trillion — so far.

    While Senate Banking Chairman Chris Dodd (D-CT) is admitting that conservatives have the power to block a bailout of the auto industry now, Detroit will get its money eventually. If a more liberal Congress does not give the big three and their labor unions all the taxpayer money they want, President-elect Obama will use the Wall Street bailout funds to do it anyway. Of course, once you’re bailing out banks and automakers, there will be no justification for excluding other big businesses from feeding at the taxpayer trough. Airlines, hotels, construction, computers — all these industries are hurting as consumption retracts, and all of them have just as good a case that they need to be bailed out to protect jobs as the auto industry. Then there are the spendthrift states like California and New York that all want federal money not to mention all the major U.S. cities who are equally deserving. The bailout parade has no end.

    All of these bailouts come at a heavy cost, and not just to the American taxpayer. Just like the mafia that wants to “wet its beak,” government money comes with government interference. Hence Obama’s promise that any money for automakers comes with an auto czarwho would have the authority to push for reforms.” With liberals in power in Washington, bureaucrats will be able to decide what kind of car you drive, how much you should pay for your house, and what medical procedures you can and can not have. What’s the difference between us and China again?

    Quick Hits:

    • About 100 proposed coal-fired power plants in the USA will be required to cut power production after a court blocked a permit for a new plant in Utah.
    • The FDIC unveiled a $24.4 billion dollar plan yesterday that they say will prevent 1.5 million foreclosures.
    • Barack Obama’s election has touched off “a mini-boom on K Street” as businesses hire liberals to help them get a piece of the bailout parade.
    • Bundlers who raised millions of dollars for Barack Obama’s campaign are starting to land significant posts on his transition team.
    • A teenager accused of stabbing a 14-year-old boy to death in a gang-motivated attack had been given sanctuary from deportation under San Francisco’s practice of ignoring federal law.
    Posted in Ongoing Priorities [slideshow_deploy]

    21 Responses to Morning Bell: Washington's Unprecedented Power Grab

    1. Ken St. Amour, Kings says:

      What would we call this, a catastrophe or just a crying shame. The last thing a business needs is Uncle Sam has a partner. There is no reason why GM, Ford, and Chrysler can't find themselves in Bankruptcy court. They would need to regroup, re-organize themselves and make it back on their own. I certainly don't want them to fail as I love American made vehicles, but having Congress or the Bureaucrats pulling the strings will ultimately destroy three fine companies. Perhaps the Unions will see the light.

    2. kent/virginia says:

      I am a very small, independent businessman. Since the beginning of the new century, due to changes in the economy and other realities over which I have no control, I do a third of the business I did in the 90's. My credit card debt has grown. My work has no union, no high paid lobby, no influence peddlers at all. Who do I see for some of these bailout bucks?

      Those millions of American families where both parents must now work full time to grab their small piece of the American Dream, who all carry an average per person unsecured debt greater than $15,000, who have become so desperate in their longing for a 'bailout' from the financial pressures–and taxes– already imposed on them that they elected an untested and unqualified empty suit to the Nation's highest office in the hopes he will grant them some relief– who do they see for a share of the bailout? Why should they be required to simply sit like sheep while a government whose growth and inaction over the last twenty plus years has led us to the abyss of another Great Depression takes their money from their pockets and spends it in ways that only insure that they and their children and their children's children will be forced to pay and pay and pay?

      The people in management positions in all these banks and auto companies and brokerages like Fannie Mae and Freddie Mac, how much has their personal financial worth grown over the years their organizations were sliding towards this massive bailout? Shouldn't they be required to pay back the millions they made while leading their business towards bankruptcy?

      What will America be like years hence, when our country recovers from this age of greed and inept management of the public trust? Will it even remotely resemble the Nation of Freedom and Promise that it once was, or will it be just another socialist state?

    3. Doris Morgan, Oklaho says:

      Or they can pull a goodie like Williams Companies of Tulsa: declare a false bankruptcy, rid themselves of older employees and their benefits, gobs of debt, and stay in business….much healthier for the exercise. But Tulsa now has some poor old people, many with PHD's and MBA's greeting you at Walmart's and substitute teaching.

      Ain't that a kick in the butt?

    4. Michael J O'Bri says:

      There has never been anything fiscally conservative about the Bush administration, nor the current crop of congressional republicans. Simply look at the lection results, the republicans lost their way and were justly rewarded.

      The problems facing Detroit are not related to the economy, but rather to years of horrifically poor management and strong union influence. The unions care about one thing; work less and make more. The unions ruined Detroit, and the U.S taxpayer coffers are next in line. Detroit should be allowed to fail, and possibly with that carrot, management and unions will decide how to run a business. Wall street analyst recently rated GM stock as a sell, with a future price target of 0 [ZERO], that’s even with a bail out. These bail outs have no end in sight, and what is disturbing is that congress, this president, and the next president believe we have unlimited money to give away. Just ask the average household about that concept. Let them fail! No one is watching out for the taxpayer.

    5. Walt in El Paso, TX says:

      We conservaties all saw this coming, and we sat on our hands. Maybe will learn to work as party and be a committed and dedicated to winning as the libs?

    6. Dennis Aderholt Geor says:

      This bail out is a bunch of junk. I bought and paid for my house based on what I could afford, not on the hope that someone would help me pay for it. the American people have been spoon fed a line of crap about how they have been duped in this whole thing and the blame has been placed on Presiden Bush. Well lets go back and look who first said that everyone should be able to buy a home. Then see who in the head of the banking committee, I believe the one in charge is a democrat, not a Republican. I blame both parties to an extent, but the consumer is the one really to blame. They knew when the loan was made taht their income was not enough, especially when they had to have new furniture and cars to go with the new home. Do not make them responsible for their mistake, it was some one else that caused this. I am really glad to knwo that the socialist government is being put in plce to solve all the problems. the American people are to blind with greed to see where this country is heading in the near future. The USA will soon be known as the SRA- Socialist Republis of America- land of the dumb lead by the ignorant.

    7. Dan Foster, Augusta says:

      After reading this e-mial newsletter I wonder if there is any good news in the world. Heritage please give me something positive. Despite this bad news I will forge ahead with optimism. Must be the Reagan influence on me.

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    10. Ireland, Alabama says:

      People need to educate themselves on what exactly socialism is because they believe the governments will actually “spread the wealth” they would know that those government leaders NEVER pass that wealth onto their public, they keep it for themselves. Most socialist countries are run by tyrants and dictators who exploit their citizens and they have no intention of helping them. They want them to remain uneducated by the facts, providing those funds would educate some. There press corp. is controlled by the governments who spoon feeds information to the awaiting public, who never tells the truth but only manufacturers it.

      They count on their public to be gullible and needy because they can maintain control by withholding the things that they need. If they gave them what they crave they’ll lose that control. There is a reason why all socialist countries have high human rights and civil rights violations. If those who voted for Obama, educated themselves on what socialism is about, I don’t believe he would have won this election. Like the press in socialist countries our press is also controlled by the liberals in our government, as they spoon feed us facts that correlate with their agenda. They call it the destruction of the American dream.

    11. George says:

      Until we,the people of the United States, find the guts to jail, deport of execute the Traitor Jane Fonda, for her treasoness actions during the Vietnam War, the traitors in our Federal Government will continue to feel secure and continue their destruction of our nation.

    12. David A. White says:

      The difference between the US and China is that china has a hech of a lot more money than the us. We buy their garbage, and they buy our infrastructure.

    13. Spiritof76, New Hamp says:

      It makes me sick to read about how this country is being torn apart by the socialists and communists-they can be found now in the so called main stream political parties. We are no longer a country founded on life, liberty and pursuit of happiness. Majority of our population is totally ignorant of our Constitutional roots, how we got there and why that is relevant today and forever. People don't even have any idea where the government gets its money, if it doesn't print it or borrow it.

      Our national debt is over $10 Trillion ($4-5 Trillion in just the last year due to the bailouts, Fannie Mae/Freddie Mac, stimulus checks and giveaways)with our unfunded liability reaching $50Trillion. The country is bankrupt. People have to wake up. The ignorant masses think that Barack Obama is going to correct all those institutional problems with more socialism. In the next four years, my fear is, that we will become a third world country with a single party in power and dictatorial presidency.

      What we are not talking about is how to reverse it and rescue the country. Heritage Foundation is great as a think tank pointing us towards the founding principles. There is tremendous paucity of actionable items for discussion. Writing to the Congressmen is of no use.

      I suggest we do what Ayn Rand wrote in Atlas Shrugged. It may not happen judging by the way all the corporations go to Washington begging for handouts shamelessly. On January 21, the producers of this country, small and large shut down all their plants and furlough everybody for the day. I just saw a news story about how coal power plants will have to shut down due to a court order because of emissions. Good. Shut them down and plunge the country into darkness. At the end of that day in January, issue a joint declaration by all the manufacturers that the government must reduce its spending to one third of the current level, with another third directly going to pay off the debt. In concert with that, the taxes will be cut for the corporations and individuals and all subsidies will end. Government borrowing will be outlawed unless there is 75% majority in both Houses and in the State Houses. There will be no interference in energy production, free market labor-no card check, no socialized medicine, no federal government involvement in education, energy, social welfare and health care. Individual bureaucrats can be prosecuted for not enforcing the laws of the land in the areas of illegal immigration so that all the officials elected or not in various sanctuary cities and towns can be prosecuted individually and severally. Phase out social security and medicare. The declaration must make it clear that within three months the proposals put forth must be implemented. Otherwise prolonged shut down of the economy will result. The government will be powerless without tax receipts and people revolting due to layoffs. It is a non violent protest.

      Yes it can be done so that the USA rises again with its founding principles (which are encroachment by any human intervention)intact. Personal freedom and responsibility and private property rights must be restored beyond the reach of any judge. As a matter of fact, the terms of judges must be restricted to 5 years maximum and they must not be party oriented. Any judge who legislates from the bench can be recalled with a petition in that jurisdiction and it will be binding-no appeals.

      I would like to see more discussion about how we can take back our country from those that are in power in Washington.

    14. Pingback: Washington’s Unprecedented Power Grab « Conservative Thoughts and Profundity

    15. Sandra, Florida says:

      All of us who truly trust and believe in GOD'S Holy word or at least are conservatives know most of the above comments to be true and factual. We knew the facts before the election and were over run, out voted, by the greedy, corrupt and the just plain ignorant. Now that the election is over we can see all of our fears coming true. If we couldn't do anything then, what other than voice our disdain can we do to fix the situation or at least protect ourselves and our families. Whether we wanted this or not we are in a situation that we will have to suffer all of the consequences that those who did vote in these liberals are going to be made to face. SO what if anything can be done. I am up to the challenge just let me know what are our options. In the mean time I will continue with prayer and so should all of you.

    16. Mayme, NY says:

      In June 2002, President Bush announced an aggressive homeownership agenda to remove the barriers that block American families from achieving homeownership with the goal of creating 5.5 million new minority homeowners by the end of this decade. The Zero Down Payment Program would move the nation significantly closer toward this goal.

      http://www.hud.gov/offices/cir/test032404.cfm

      Zero Down Payment Initiative. "We should remove the 3 percent down payment rule for first time home buyers with FHA-insured mortgages. This change could help as many as 150,000 people become homeowners in the first year alone." George Bush at Home Builders Conference.

      The American Dream Downpayment Initiative (ADDI) was signed into law on December 16, 2003. The American Dream Downpayment Assistance Act authorizes up to $200 million annually for fiscal years 2004 – 2007. ADDI will provide funds to all fifty states and to local participating jurisdictions that have a population of at least 150,000 or will receive an allocation of at least $50,000 under the ADDI formula. ADDI will be administered as a part of the HOME Investment Partnerships Program, a formula grant program.

      http://www.hud.gov/offices/cpd/affordablehousing/

      Zero-down mortgage initiative by Bush is hit

      Budget office says plan likely to spur more loan defaults

      By Chris Reidy, Globe Staff | October 5, 2004

      http://www.boston.com/business/articles/2004/10/0

    17. mark kohn, buckley w says:

      I cant get rid of this sick feeling in my stomach, my country , the country that i love, the country that my grandfather and his grandfather fought to protect is now being attacked from the inside by its own people.THese people have no respect for our founding princables, they look at other countrys and wish we could be like them. Well im one TRUE American who will not stand by and let a bunch of malcontents hijack my country, my freedoms i em prepared for the fight we conservitives have before us, we will prevale..

    18. Terry,Lincoln, Ne. says:

      I'm not sure I can communicate my view of the situation in our country or the world in general, but here I go. If you believe God is sovereign over the universe then His will is that Obama would be our next president. What ever He is doing is certainly beyond our ability to comprehend, but we can have confidence that it is for His glory and our good. What then do we do? We use the means God has provided for us ,first we pray for wisdom, we use our resources to fight against the enemies of freedom , we unite in a common goal and trust God for the outcome. We do not ever become fatalistic about our situation ,if God is for us who can be against us? I can already see many positive things happening as a result of our economic dilemma . Let's admit we didn't think there would be a day of reckoning for our decadent way of living, we thought there would be blue skies forever. Lets take our concerns to the King of kings and seek His will in these matters. Do not despair God really is in control.

    19. Crippy, Michigan says:

      It is hard to imagine "more liberal" than we already have but I fear the worst.

      God help us!

      -Crippy

      http://crippy.me

    20. William Wynne, Atlan says:

      If anyone doubts the seriousness of the direction our government is taking, please read Hayek's Road To Serfdom and/or Socialism by Mises.

    21. Zeleroovect says:

      folks, cute page

      in what way to write blog posts and smash in people:
      http://tinyurl.com/ygoucz2

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