Friday, December 5, 2008

Archive for September, 2008

Voter Fraud by Illegal Aliens Ignored by Government and Media

Posted by Jim Kouri On September - 30 - 2008

A recent study released by the conservative think-tank the Heritage Foundation provides proof that illegal aliens and immigrants with green cards are committing rampant voter fraud in the United States.

Reports of ineligible persons registering to vote have raised concerns about state processes for verifying voter registration lists. States usually base voter eligibility on the voter’s age, US citizenship, mental competence, and felon status.

Although individual states run elections, Congress has authority to affect the administration of the elections. The Help America Vote Act of 2002 (HAVA) had set a deadline for states to have a statewide voter registration list and list verification procedures.

For example, the methods used in seven selected states to verify voter eligibility and ensure accuracy of voter registration lists were varied and include relying on registrant self attestation, return mailings, and checking against lists of felony convictions or deceased individuals. Some states, for instance, failed to do any more than ask on their application forms if the registrant was a US citizen. The applicant will merely check off the “Yes” box, but there is no action taken to verify the authenticity of that answer.

“The voter registration officials simply take the word of the registrant with no follow-up,” said conservative political strategist Michael Baker.

“Some states that require some backup documentation merely ask for a utility bill or a driver’s license — neither of which prove citizenship. In other words, legal or illegal aliens can easily register to vote in local and national elections,” warns Baker.

According to a Congressional study of voter fraud, other challenges such as identifying duplicate registrations in other states or having insufficient information to match other data sources with voter registration lists may continue to be issues.
< http://www,gao.gov/htext/d05478.html >

While federal data sources have the potential to help state election officials identify registrants who may be convicted felons or non-citizens, few states communicate with federal agencies such as the Homeland Security Department’s immigration section.

Many government officials — mostly liberals — claim that illegal aliens voting is not a major problem, conservative activists respond that while the potential number identified may be small, an election can be decided by a few votes. In 2004, the presidential race between Democrat Al Gore and Republican George W. Bush was decided by a few hundred votes in Florida.

“While the news media perpetuated the assertion that Bush and the GOP ’stole’ the election, it could very well have been illegal aliens voting in Florida that made the outcome so close,” said former NYPD cop, now security firm owner, Sid Francis.

“Bush may have beaten Gore by more votes if illegals were excluded, since immigrants tend to vote for Democrats. Or Gore could have won decisively had there been prior screening before people were allowed into the voting booths,” said Det. Francis.

“There was absolutely no mention in the mainstream media regarding suspected voter fraud by illegal or legal aliens. It was much easier for the agenda-driven newspeople to accuse Republicans of stealing the election,” added Baker.

“Florida is not unique. Thousands of non-citizens are registered to vote in some states, and tens if not hundreds of thousands in total may be present on the voter rolls nationwide. These numbers are significant: Local elections are often decided by only a handful of votes, and even national elections have likely been within the margin of the number of non-citizens illegally registered to vote,” said Hans A. von Spakovsky, a researcher at the Heritage Foundation.

“There is no reliable method to determine the number of non-citizens registered or actually voting because most laws to ensure that only citizens vote are ignored, are inadequate, or are systematically undermined by government officials. Those who ignore the implications of non-citizen registration and voting either are willfully blind to the problem or may actually favor this form of illegal voting,” said Spakovsky, an expert on the subject of illegal aliens and immigration law, during an interview on Fox News Channel.

As far as felons, US Attorneys are required to notify state election officials of federal felony convictions, but the information is not always easy for election officials to interpret or complete, according to New Jersey GOP strategist Janice Martin.

“Americans would be shocked to discover that hundreds of thousands of general election voters are illegal aliens, green-card immigrants, and criminals who’ve murdered, raped and robbed US citizens. And guess which political party benefits the most from their votes? The one that’s pushing for amnesty and a bag full of free goodies,” said Martin.

Dr. von Spakovsky believes many government officials and politicians are complicit in the voter fraud problem.

“To keep non-citizens from diluting citizens’ votes, immigration and election officials must cooperate far more effectively than they have to date, and state and federal officials must increase their efforts to enforce the laws against non-citizen voting that are already on the books,” he wrote in his Heritage Foundation study on illegal alien voter fraud. < http://www.heritage.org/ >

“While the liberal media and the liberal establishment ignore what is a huge scandal, American voters are having their rights violated. When an illegal aliens or felon or other person prohibited by law to vote, their votes cancels out those of American citizens,” warns Baker.

“Liberals want illegal aliens and felons to vote. They benefit from such rampant fraud.”


Jim Kouri, CPP is currently fifth vice-president of the National Association of Chiefs of Police and he’s a staff writer for the New Media Alliance (thenma.org).  In addition, he’s the new editor for the House Conservatives Fund’s weblog. Kouri also serves as political advisor for Emmy and Golden Globe winning actor Michael Moriarty. 

He’s former chief at a New York City housing project in Washington Heights nicknamed “Crack City” by reporters covering the drug war in the 1980s. In addition, he served as director of public safety at a New Jersey university and director of security for several major organizations.  He’s also served on the National Drug Task Force and trained police and security officers throughout the country.   Kouri writes for many police and security magazines including Chief of Police, Police Times, The Narc Officer and others. He’s a news writer for TheConservativeVoice.Com and PHXnews.com.  He’s also a columnist for AmericanDaily.Com, MensNewsDaily.Com, MichNews.Com, and he’s syndicated by AXcessNews.Com.   He’s appeared as on-air commentator for over 100 TV and radio news and talk shows including Oprah, McLaughlin Report, CNN Headline News, MTV, Fox News, etc.  His book Assume The Position is available at Amazon.Com. Kouri’s own website is located at http://jimkouri.us

Obama Campaign Stifles Free Speech At University Rally

Posted by Warner Todd Huston On September - 30 - 2008

The candidate of change, the shining proponent of a “new way” in national politics, says that you aren’t allowed to bring a sign to his rally. So much for the right of free political speech. To add insult to injury, this rally was held at the publicly funded University of Mary Washington in Fredericksburg, Virginia. So, now the government is lending the weight of its authority to squelch free speech. So, where is the hue and cry about this unAmerican activity? Did the media even note this heavy-handed policy?

But, it is all true nonetheless. The rally was held and weak-spined school officials bent over and meekly accepted the rules derived from the fascistic penchant of the Obama campaign with its anti-first amendment proclivities. Some few small voices questioned this oppression of American rights, but for the most part no one seems to have noticed that Virginians had their Constitutional rights quashed that day. Shockingly, some even thought it was a good idea.

The Obama campaign, falling back on the oldest dodge in the book, claimed that campaign signs were not allowed because of “security concerns.” Who can doubt, though, that it was instead because of “camera concerns”? The Obama campaign was far more interested in photo ops clear of McCain signs or other unwanted reminders that there are other opinions out there among the unwashed masses than that of sycophancy for The One.

On one hand, I see the logic in a campaign making sure that it controls the atmosphere of a campaign stop. It’s only good sense. And if this control were to be exerted on private property with the full acceptance and participation of the property owners, well who can deny that? But it wasn’t. This rally happened on public land.

Now, let us harken back to the “reason” that Sarah Palin was refused the podium at the anti-Iran rally last week, shall we? She was denied because of the so-called “equal time” rule, remember? This is a shadowy “rule” that seems to state that no politician may speak in public unless his opponent also appears to speak.

So, one wonders: did the University of Mary Washington invite the McCain campaign to the rally with Obama? And if not, why not? After all, this is a publicly funded institution. Are we to accept that such a place would violate that sacrosanct “equal time” rule? Are we to believe that a place funded by our money not only didn’t invite the opposing candidate, but used its publicly derived authority to squelch free speech by disallowing signs?

I suppose we’ll have to believe such a thing, after all.

Of course, the media doesn’t mind. Who can deny that such heavy-handed campaign policies smoothes the waters for their messiah. I can only chuckle at this. I mean, Obama is the first messiah that needs average men to smooth the waters for him instead of being all powerful enough to smooth them himself. How shallow must be the water he walks upon?

No wonder Obama’s campaign posters remind one of Stalinist propaganda.

Military, Business Leaders Release Comprehensive Energy Security Plan

Posted by Jim Kouri On September - 30 - 2008

(The following article is based on information obtained by the National Association of Chiefs of Police’s National Security Committee.)

The Energy Security Leadership Council (ESLC), a project of Securing America’s Future Energy (SAFE), yesterday released A National Strategy for Energy Security, a comprehensive plan that offers the public and policymakers specific solutions to the very real threats posed by our nation’s dependence on oil.

The National Strategy lays out a pathway toward a long-term goal of an electrified transportation system that is no longer dependent on oil, along with the interim policies needed to reach that goal while keeping our economy and our nation strong and secure.

“Our oil dependence has put our nation at unacceptable risk,” ESLC Co-Chairman Frederick W. Smith, Chairman, President and CEO of FedEx Corp., said.

“The plan we are offering today includes details about exactly how we can reduce that risk. Most important, we must electrify our transportation system to end its complete dependence on oil. But that is not a simple task, which is why we lay out the specific steps needed to reach it. It is also a goal that will take many years to reach, which is why we recommend policies — including expanded domestic supply of oil and natural gas, reformed and improved fuel economy standards, and increased support for R&D — that will strengthen our economic and national security while we work toward the long-term goal,” he said.

“Our safety and our prosperity are in peril,” ESLC Co-Chairman General P.X. Kelley (Ret.), 28th Commandant of the U.S. Marine Corps, said. “Yet too many look for scapegoats or offer half-measures. Blaming someone else is not a solution, and half of a plan is not a plan. The report we are releasing today is the culmination of six months of careful, in-depth examination of our oil dependence and the ways to reduce it. This plan is unique: it is bold, it is comprehensive, it is detailed, and it has the unanimous support of the business and military leaders on the Energy Security Leadership Council.”

The Energy Security Leadership Council is a group of business leaders and retired senior military officers who are committed to improving America’s energy security. They have received strong praise from lawmakers, particularly for their 2006 Recommendations to the Nation on Reducing US Oil Dependence, which helped to shape the landmark Energy Independence and Security Act of 2007 (EISA).

“SAFE and the Energy Security Leadership Council have become an important part of our nation’s energy debate. Their commitment and their effectiveness have made them valuable partners in the ongoing effort to pass comprehensive legislation to improve our nation’s energy security. I look forward to continuing to work with them as we tackle these vital issues together,” Senator John Thune (R-SD) said.

The National Strategy for Energy Security is the natural successor to the 2006 Recommendations. This set of recommendations, however, encompasses an even bolder vision than in 2006, by proposing specific policies in the following areas:

 --  Electrifying the U.S. transportation sector to diversify energy       supplies   --  Accelerating the development and deployment of new energy-related       technology   --  Reducing demand for oil through improved vehicle efficiency   --  Increasing energy access through expanded domestic supply   --  Managing risks and global issues

Web Site: http://www.secureenergy.org/

Jim Kouri, CPP is currently fifth vice-president of the National Association of Chiefs of Police and he’s a staff writer for the New Media Alliance (thenma.org).  In addition, he’s the new editor for the House Conservatives Fund’s weblog. Kouri also serves as political advisor for Emmy and Golden Globe winning actor Michael Moriarty. 

He’s former chief at a New York City housing project in Washington Heights nicknamed “Crack City” by reporters covering the drug war in the 1980s. In addition, he served as director of public safety at a New Jersey university and director of security for several major organizations.  He’s also served on the National Drug Task Force and trained police and security officers throughout the country.   Kouri writes for many police and security magazines including Chief of Police, Police Times, The Narc Officer and others. He’s a news writer for TheConservativeVoice.Com and PHXnews.com.  He’s also a columnist for AmericanDaily.Com, MensNewsDaily.Com, MichNews.Com, and he’s syndicated by AXcessNews.Com.   He’s appeared as on-air commentator for over 100 TV and radio news and talk shows including Oprah, McLaughlin Report, CNN Headline News, MTV, Fox News, etc.  His book Assume The Position is available at Amazon.Com. Kouri’s own website is located at http://jimkouri.us

Even Old Time Socialist Says SEIU is Corrupt

Posted by Warner Todd Huston On September - 30 - 2008

Bill Fletcher is all about the wringing of hands over the corruption scandal of the Service Employees International Union (SEIU) and is afraid that it will get in the way of the upcoming presidential campaign. Fletcher, a long time union activist, pseudo “Africanist,” anti-American, and anti-Jew agitator, who is also a self described “socialist,”, and Barack Obama volunteer, was interviewed recently on the website of the extremist organization Democracy Now.

Little of what he had to say is of much surprise or interest nor is there any truth to it. It is filled with your run-of-the-mill psychotic hate for business and the U.S.A. like the content of all of his interviews. But, his lament about the troubled SEIU is interesting… maybe even heartening for those who wish to see the union curtailed.

Talking about the late split between the AFL-CIO, Fletcher likened that instance to some of the troubles the SEIU is having with the Washington Office’s attack on its California Local, the United Healtcare Workers-West (UHW-W).

In SEIU, as you mentioned, what we’re witnessing is, in the West Coast there have been allegations of very serious corruption among locals that have been allied very strongly with SEIU President Andy Stern, and in the middle of this, this absurd attack on one of the largest SEIU locals by the SEIU President Andy Stern—and this is United Healthcare Workers-West–an attack that comes at absolutely the worst time, in an attempt to trustee the local, that is, to take it over by the international.

Fletcher says how earlier in the year, many in the labor movement had thought the UHW workers were being “paranoid” with their worry that Andy Stern of the SEIU was out to get them. Fletcher remembers saying to members of the UHW that, “No, no, no. You’re paranoid. This is ridiculous!” But, now that Stern has pretty much proven that he is, indeed, out to get them, everyone is shocked and surprised as well as saddened.

On one hand, Fletcher is worried that this whole thing will detract from the unions being effective in helping out Barack Obama’s campaign for the White House and, on the other — and as is his boringly prosaic penchant — he thinks it ultimately comes down to race.

I know. Race, you ask? It makes your head spin, right?

First his thoughts on the SEIU’s internal fight:

… if SEIU goes forward with this ridiculous idea of a trusteeship of United Healthcare Workers-West, they are going to have to dedicate many staff to dealing with this situation, because the members of that local are very, very clear: they’re not accepting a trusteeship. So what that means is that people that could otherwise be around the country working on various campaigns are going to be tied up in trying to impose this trusteeship. This is going to be absolutely horrible.

Let’s hope that this internal fight really does distract the power mad, thug in the SEIU’s Washington office, Andy Stern, from exerting his baleful influence on the elections. Stern is definitely proving that he’ll allow NO other voice but his own to be heard in his little fiefdom. His sort of dictatorial attitude is not needed in politics.

But, more absurdly, Fletcher sees the racist boogyman behind the SEIU’s internal fight. See, it isn’t mere power that is driving the SEIU fight, it’s “racism.” Why, it MUST be thinks Fletch. After all, if these union members weren’t all racists, why they’d put aside their petty differences to elect Barack Obama to the White House. That they are allowing their little power grabs to distract them, well it’s all because they are racists, Fletcher posits.

Just look at the mental sickness that is Fletcher…

But the other problem that goes a little bit beyond this, Juan, is that within the union movement there is this question of race that is starting—a few months ago, started to be raised by some leaders, including, and very notably, AFL-CIO Secretary-Treasurer Richard Trumka, but also by other leaders who have encountered resistance among a segment of the white membership to the idea of backing Obama for the presidency. And we can see it around the country, that there is this squeamishness in some sectors about pushing the envelope in terms of supporting the Obama candidacy. Actually, more than anything else, this concerns me. The SEIU situation in California is horrible, and I think it’s absurd that there would be any thought of a trusteeship, but this issue of race, which for years union leaders have refused to talk about, beyond this idea of diversity–you taste my food, I’ll taste yours–we haven’t confronted this issue of race.

And so, now what do we have? People saying, “Well, you know, I’m not sure whether I really want to support him,” when the basic question is simple: are you better off now than you were eight years ago? And if you are not, then you had better be supporting Senator Obama. Yet, this is–there’s some squeamishness, as I noted. And so, I think this, over the next several weeks, this will be the critical question. And I’m hoping that unions on both sides of the split will be forthright in tackling this question. Let’s not play any games. The race card, the race issue, is central in this race. There’s no question about it.

Have you ever seen a more convoluted, absurd conspiracy theory in your life? In a nation where blacks head the largest corporations, are the most famous entertainers, politicians, teachers and artists… this guy thinks we are all racists? Have we not come an inch past 1950? For that matter is this still a climate just like that of the Antebellum South!?

Remember an important point here. Fletcher isn’t talking about we Republicans. He’s talking about his own, Democratic Party, union members. It is they he is claiming are the racists.

I dearly, dearly hope that this agitator, this socialist hate spreader, does succeed in spreading his bile in amongst unions. It can only serve to really help put them at each other’s throats in vitriolic self-hate. They are beginning to feed on each other folks. Let’s hope they keep it up!

Christian Pastors Stand Up

Posted by Doug Patton On September - 29 - 2008

Contrary to popular belief, conservative Christian pastors have never been monolithic in their willingness to engage in anything close to partisan political activity in their churches. The stereotypical perception of the “religious right” in America is a myth. I know. I was there in the cultural trenches in the mid-1990s, trying to inform Christian voters of the records of the candidates for office.

As a state executive director and organizer for one of the largest pro-life, pro-family organizations in the country, I was frustrated constantly by the reticence of pastors to allow even a simple, informative voter guide to be placed into their church bulletins. A handful was bold enough to speak out. Some were willing to allow the voter guides. Most were just plain timid and afraid.

Afraid of what? Why, the IRS, of course — or, as my great aunt used to refer to it, “the Infernal Revenue Service.”

Far too many on the Christian right have been bamboozled into believing that it is somehow against the law to engage in any sort of political activity whatsoever within the four walls of a church. In fact, many pastors are so paranoid about it they shun vital information that could help their congregations know right from wrong once they get into the voting booth.

Now comes word that a tiny cadre of three dozen or so activist pastors, working in conjunction with the Arizona-based religious rights legal firm known as the Alliance Defense Fund, are not only exercising their constitutional rights but also stand ready to challenge a 1954 amendment to the tax code that says nonprofit, tax-exempt entities may not “participate in or intervene in…any political campaign on behalf of any candidate for public office.”

These church leaders have come to realize that there is nothing in the law that forbids them, as pastors, from telling their congregations whom they personally endorse — and why. And they are challenging the notion that they should be proscribed from putting forth a church endorsement based on a candidate’s positions on issues that may be contrary to the moral teaching of that church.

One of these pastors is the Rev. Ron Johnson, Jr., of Crown Point, Indiana, who says that ministers of the Gospel have a responsibility to guide their flocks in worldly matters, including politics.

“The issue,” says Rev. Johnson, “is not ‘Are we legislating morality?’ The issue is, ‘Whose morality are we legislating?’”

Although he has stopped short of endorsing Republican John McCain, Rev. Johnson has rightly told his congregation that Democratic presidential nominee Barack Obama’s positions on abortion and homosexual relationships are “in direct opposition to God’s truth as He has revealed it in the Scriptures” and has shown slides in his church contrasting the two candidates’ views on key issues important to pro-family voters.

Of course, the Religious Left, especially as it has traditionally promoted liberal Democrats in black churches across the country, has been engaging in highly partisan political activity for as long as many of us can remember. In one particularly blatant case, I recall an inner city church van covered with political posters of Democrat candidates encouraging black voters to “vote Democrat.”

This van was sent out into the community to register Democrats, transport them to the polls and bring them to a makeshift Democrat campaign headquarters being run out of the church basement. When the state Republican Party chairman took photos of the van and sent them to the local news media, they were officially ignored.

It is encouraging to see a small but determined group of Godly men and women reach out to their congregations with the truth about Barack Obama’s radical political views and culturally toxic voting record. It is time for evangelical Christians to stop being taken in by lofty rhetoric. It is time for men of God to stand up and be heard on the great issues of our time.
____________________________________________________________________________

© Copyright 2008 by Doug Patton
____________________________________________________________________________

Doug Patton is a freelance columnist who has served as a political speechwriter and public policy advisor. His weekly columns are published in newspapers across the country and on selected Internet web sites, including Human Events Online, TheConservativeVoice.com and GOPUSA.com, where he is a senior writer and state editor. Readers may e-mail him at dougpatton@cox.net.
____________________________________________________________________________

Refundable-oney: Tax credits are not tax cuts

Posted by Daniel Clark On September - 29 - 2008

When Barack Obama positions himself as a fiscal conservative, he’s not just kidding around. He fully expects the voters to accept this characterization, as evidenced by the tax plan from his campaign’s website. The six-page policy statement evokes the name of Ronald Reagan five times, while promising to cut the taxes of 95 percent of all Americans.

In fact, there are many items in Obama’s plan that would make him very unpopular among his fellow Democrats, if only they thought he meant them. Among them are pledges to renew most of the Bush tax cuts, eliminate capital gains taxes for small businesses, repeal most estate taxes, reduce farm subsidies, and pursue a constitutionally viable line-item veto. If sincere, these promises amount to the most brazen act of economic heresy committed by any Democrat since Jerry Brown proposed a flat income tax.

If these proposals are intended to mimic Reagan, however, they only succeed insofar as they recall his famous line from King’s Row, “Where’s the rest of me?”

The bulk of the Obama plan, and the basis for his 95 percent claim, is a series of proposed “refundable tax credits.” What exactly is meant by this is obscured by typically dubious IRS terminology. A “non-refundable” tax credit is one that is deducted from the amount of the taxes one owes. Since most of us have our taxes withheld before such a credit would be factored in, this results in an overpayment, which means that we will then receive refunds for our “non-refundable” tax credits.

Whereas a “non-refundable” tax credit cannot exceed the amount of taxes owed, a “refundable” one may. In other words, it “refunds” taxes that have not been paid in the first place. The Earned Income Tax Credit is an example, in that it is “refunded” only to those who have earned so little that they haven’t paid any income taxes. Of course, if there is no tax to cut, then the “refund” from a “refundable tax credit” is not a tax cut. Rather, it is direct wealth redistribution, by which the government seizes the earnings of some Americans, and hands them out to others, all in a single motion.

Among Obama’s “refundable tax credits” are a so-called “Making Work Pay” credit of $500 for individuals or $1,000 for couples filing jointly, a $4,000 college tuition credit, a 10 percent mortgage interest credit, an expansion of the EITC, the expansion and making “refundable” of the Child and Dependent Care Tax Credit, the expansion and making “refundable” of the retirement Savers’ Credit, and a health care credit of unspecified magnitude.

Who among Obama’s fellow fiscal conservatives knew that an allowance from Uncle Sam was necessary to “make work pay”? Most of them probably thought that work pays because an employer must compensate his employees so that they’ll agree to work for him. As it happens, work doesn’t really pay until The Ones We’ve Been Waiting For descend from the clouds and start administering “economic justice.”

Let’s assume, for the sake of argument, that he’s serious about his proposed tax cuts and spending controls, and that, as president, he includes them in the budget he presents to a Democrat-controlled Congress. By the time the finished bill found its way to his desk, those measures would be stripped out of it, while the massive taxpayer-funded giveaways would remain. Does anybody believe he’d do the fiscally conservative thing, and veto it?

If Obama is intent on constructing a massive new welfare state (and he is), John McCain is at least willing to help lay the cornerstone. The Republican candidate is proposing a $5,000 “refundable” health care tax credit of his own. At least for this election cycle, the argument over whether the government should be redistributing wealth appears to be over. The only disagreement is over how much.

During his August 16th interview with pastor Rick Warren, Obama said that he’d been concerned about the Republican welfare reform bill that President Clinton signed in 1996, but that he’s since changed his mind. That seemed like a curious admission, coming from a former “welfare rights” activist from the Association of Community Organizations for Reform Now (ACORN), who now touts that experience as a “community organizer” as qualification for the presidency.

Now we know what his idea of “reform now” is. He means to change the administration of welfare so that it is done primarily through the tax code – and with McCain’s unwitting help, to disguise it as conservative economic policy.

Do we really want to socialize our financial system? [Part 3, updated]

Posted by Vincent Gioia On September - 29 - 2008

Speaker Nancy Pelosi has released a draft proposal of the “save the United States” plan for government to nationalize a large segment of our economy, seemingly agreed to by those we had assumed represent Democrat opponents. Here are the sound bites we will here on TV about the plan:

“The Three Phases of a Financial Rescue with Strong Taxpayer Protections

• Reinvest in the troubled financial markets … to stabilize our economy and insulate Main Street from Wall Street

• Reimburse the taxpayer … through ownership of shares and appreciation in the value of purchased assets

• Reform business-as-usual on Wall Street with strong Congressional oversight and no golden parachutes.”

Don’t believe it.

For good measure Pelosi also tells us that giving government control by tax payer acquisition of “toxic” mortgages will benefit Americans in the following ways:

Protecting taxpayers by ensuring THEY share IN ANY profits

Cutting the original $700 billion requested for the ‘bailout’ to $350 billion (not an insignificant amount of money); and conditions future payments on Congressional review

Giving taxpayers an ownership stake and profit-making opportunities with participating companies (meaning; it gives the government an opportunity to receive more money to squander away on ‘feel-good’ programs in the future – tax payers will never actually get any money to pay their bills)

‘Guaranteeing taxpayers are repaid in full’ if other protections have not actually produced a profit (from whom?)

Allowing the government to purchase troubled assets from pension plans, local governments, and small banks that serve low- and middle-income families” (thereby further enlarging government socialistic take over of businesses)

Limiting compensation of the new managers (while doing nothing to recover the millions scammed by previous managers like Democrats Raines, Johnson, Gorelick, and the politicians, largely Democrats, who were rewarded for not interfering with management of Fannie Mae and Freddie Mac). Of course there is other window dressing to give the appearance the government “will monitor against corruption” to make it more palatable to a gullible public.

Now let’s consider what is not told to the public about the government take-over scheme.

First, the $350 or $700 billion fund will likely be managed by either Goldman Sachs (where Democrat Paulson came from) or Morgan Stanley, for a fee, of course, but the government will not pay the low, real-world prices for the bad debt. The market price of the bad assets is what Bernanke calls a “fire-sale” price; and “that is bad.” (Why?)

The banks owning the securities will be forced to sell at fire-sale prices, which don’t improve their capital position. Note also, it is the government requirement that banks use the real world fire-sale prices to identify their assets that led to the cash and credit problems leading to the so-called “crisis” in the first place, but the government wants the tax payer to pay the “hold-to-maturity” price for the securities. That price, as you might guess, is much higher than the “fire sale” (market) price.

What is the “hold-to-maturity” price? No one knows! Paulson and Bernanke argue that many of the mortgages will come good once the crisis is over, and that the assets the taxpayer buys today at “hold-to-maturity” price might actually be a good investment in the proverbial “long term”; what do you think now that you know this? Are Paulson and Bernanke making any sense paying higher than market price for securities bought by the government?

In principal I don’t see anything wrong with Government coming to the rescue of financial institutions where mismanagement has caused risk of failure in a way that jeopardizes the stability of the entire financial system. However what is wrong, partly because is both a violation of public trust and rewards professional incompetence, is that it uses taxpayer money to benefit managers and owners of these companies rather than the taxpayers.

We now know that these financial firms manufactured, distributed, and inventoried near-fraudulent debt (financial securities) at 30:1 leverage. Investors don’t want to buy these securities at the current high offer price, and if the securities were priced and bought at a realistic market clearing price, it would likely bankrupt the sellers.

Paulson and Ben Bernanke are orchestrating a plan that provides huge sums of taxpayer money to Paulson’s buddies at Goldman Sachs, along with various others, including Morgan Stanley, to purchase the unwanted securities in a manner that directly enriches the management and shareholders of these nearly bankrupt companies. With AIG it was demanded that taxpayers be rewarded with any profits of the rescue but the current plan sticks taxpayers with the downside, while management, creditors and shareholders of these firms reap tens of billions in stock and bond appreciation.

Paulson and Bernanke could have handled the financial system as they did with AIG by taking ownership (I don’t agree with this practice but simply note the difference in the treatment of AIG and Goldman Sachs/Morgan Stanley) but then their buddies would not have gained. Instead, of rescuing the financial system in a responsible way, they rescued their rich friends who created the mess and left the taxpayer holding the bag.

Unfortunately because I like Christopher Cox, SEC Chairman, I believe the SEC was complicit in falsely pointing the blame for the near-demise of these financial institutions at short sellers who are a convenient scapegoat, but this was merely a diversion.

The real causes of the demise of these firms were:

Mismanagement by applying 30:1* leverage to volatile illiquid mortgage assets that these firms manufactured, distributed, and inventoried;

The failure of regulatory oversight, in allowing these firms to use 30:1 leverage on collateral known to more than occasionally suffer 30% to 50% downside fluctuations (real estate);

The failure to respond properly to the demise of Lehman and AIG and artificially increasing the value of share prices of distressed companies in a way that enriched management and shareholders at the direct expense of innocent market participants, their financial competitors who were prudent in avoiding overexposure to leveraged toxic debt, and at the expense of free market principles.

The SEC says that it is not responsible for market manipulation but John Mack at Morgan Stanley and Paulson’s colleagues at Goldman Sachs have received tens of millions of upside stock profit in just two days.

All other businesses that take risks that don’t work out fail and are not bailed out by the government. The difference I see here is that nationalizing these small businesses doesn’t have the same socialist effect on our economy as nationalizing the huge financial system.

Goldman Sachs is known as one of the most opportunistic and predatory firms on Wall Street. When Goldman Sachs identifies companies in distress it has a long history of rushing in and providing assets in return for majority equity stakes, thereby earning the upside for this risk ahead of the existing management or owners. Paulson was the direct beneficiary of Goldman Sachs business practices while CEO at Goldman. He made more than $500 million selling Goldman Sachs stock, tax-free, when he accepted the job as Secretary of the Treasury. Now that Goldman Sachs has a problem, Paulson wants to hand Goldman Sachs taxpayer money without demanding a controlling equity stake for tax payers from Goldman Sachs in return. The public should ask Paulson who he is really working for. Paulson should resign or be fired.

Instead of getting an honest explanation about what is occurring, we are now being sold a story manufactured by government officials who have been complicit in irresponsible behavior. The question is; are the American people gullible enough to buy it?

Note: This morning we woke to one of those headlines I just dread. Right there, on the front page of the New York Times, “Breakthrough Reached in Negotiations on Bailout.”

“We have made great progress toward a deal, which will work and be effective in the marketplace,” announced Treasury Secretary Henry M. Paulson Jr.

That’s the same Paulson who this past July told us that “It’s a safe banking system, a sound banking system. Our regulators are on top of it. This is a very manageable situation.”

It’s also the same Paulson who told Chinese officials last year “The reality of the situation is that an open, competitive, and liberalized financial market can effectively allocate scarce resources in a manner that promotes stability and prosperity far better than governmental intervention…”

Americans had a chance three years ago to prepare for and avoid the financial calamity we now have when John McCain co-sponsored legislation to provide more oversight of Fannie Mae and Freddie Mac. This bill if not obstructed by congressional Democrats would have prevented the situation which Paulson, Bush, Senate Majority Leader Harry Reid, House Speaker Nancy Pelosi and gullible Republicans want House want Americans to accept. All they had to do was pay attention to the only man vying for the nation’s top job who wanted to do something about this, John McCain.

In the debate Barach Obama said he warned about this pending problem but that is totally untrue, he actually wasn’t yet in the Senate then; just like his attempt to have voters believe he warned against the Iraq war despite the fact he was in the Illinois legislature when the Iraq war began and hardly had Iraq in his sights at that time.

*Banks generally loan money based on a ratio that allows lending 12 time the assets owned by the banks; however, banking practices raised the ratio to 30:1, thus lending much more money than they had in assets. Since much of the assets are in bundled mortgages which include mortgage loans doomed to failure because they were made to borrowers unable to repay the loan, as home prices fell, these securities became lower valued assets under accounting practices force by law. The effect was that bundled securities could not be sold and the banks and other financial companies, like Lehman, and including insurance companies like AIG, failed.

Vincent Gioia is a retired patent attorney living in Palm Desert, California. His articles may be read at www.vincentgioia.com and he may be contacted at gioia@gte.net.

Give Us Our Money Back. We’ll Fix It!

Posted by Frank Salvato On September - 29 - 2008

The ultimate example of opportunistic politics before good government was displayed in Washington over the past several days. Political operatives from both sides of the aisle did everything in their power to create a government-based solution to the financial crisis facing our country; a government-created problem. In the end the US House of Representatives voted down the highly contentious Wall Street bailout bill mostly due to the fact that we are within the 30-day window when voters do not forget actions taken by their elected officials. If only the public’s attention were always so focused.

In the end 90 House Democrats joined with 133 House Republicans in an effort to stop a measure that would have seen the biggest expansion of government in US history. In effect, it would have placed the coyote in charge of the hen house.

Many in our citizenry viewed the now-dead proposal as a “no fault” measure that would have allowed those responsible for this financial malfeasance to escape culpability and with good reason. Watching US Rep. Barney Frank (D-MA) and US Sen. Chris Dodd (D-CT) – along with their leadership, Nancy Pelosi (D-CA) and Harry Reid (D-NV) and Senior Senator from New York, Charles Schumer – harangue about how Democrats were taking the lead in crafting “bi-partisan” legislation to “rescue” the average American from the evils of Wall Street was the ultimate exercise in political hypocrisy.

Frank and Dodd, both chairmen of their respective committees that over see the financial community on matters directly related to this crisis and the malfeasance that brought us to this point, were derelict in their duties not only as chairmen charged with oversight, but in their duties to their respective constituencies in that they were not providing good government.

Without doubt, Frank and Dodd should resign from their chairmanships immediately and without question. If the GOP had been in control of Congress at this point in time Democrats would have been screaming for the chairmen’s resignation not only from their chairmanships but from Congress. So, let’s exact some “what’s good for the goose” here.

But the buck doesn’t stop with Frank and Dodd. Nor does it stop with Pelosi, Reid or Schumer. The indefensible governmental actions that led to the enabling of Wall Street’s greed merchants and the coercion of responsible financial institutions began with Jimmy Carter and continued under Bill Clinton.

Jimmy Carter’s Community Reinvestment Act, is defined as:

“…a United States federal law that requires banks and savings and loan associations to offer credit throughout their entire market area and prohibits them from targeting only wealthier neighborhoods with their services, a practice known as “redlining.” The purpose of the CRA is to provide credit, including home ownership opportunities to under-served populations and commercial loans to small businesses. It has been subjected to important regulatory revisions.”

In a nutshell, this legislation forced financial institutions to offer loans to people that didn’t qualify for loans; that could satisfy the terms of loans based on sound financial qualifications.

Bill Clinton continued this march to financial disaster with his National Homeownership Initiative, which saw Community Reinvestment Act mortgage loans explode by 39 percent from 1993 to 1998. In comparison other loans increased by a market bearing 17 percent.

Much to the chagrin of the mainstream news media and the Democrats who are cohesive in their propaganda in that they are placing the blame for this financial debacle at the feet of President Bush and congressional Republicans (and let’s not forget their never-ending attempt to marry every crisis to John McCain), the president, John McCain and congressional republicans were sounding the alarm on this looming crisis ever since 2001. In fact, the GOP controlled Senate passed a bill out of committee in 2005 increasing oversight on Fannie Mae and Freddie Mac only to see it stonewalled by the Senate Democrats when it came time to move it out of committee and to the Senate floor for a vote.

So, on the eve of the 2008 General Election – which also sees many in Congress up for re-election – we witness a Congress, led by the very people who caused the crisis in the first place, scrambling to fix decades worth of governmental mismanagement by setting up yet another government controlled program.

Are you starting to see the incredible inanity of the situation?

To be certain, action must be taken to avert a considerable financial crisis, but the solution does not rest with bailing out the financial sector and it certainly doesn’t rest in empowering a government that was ultimately responsible for enabling Wall Street greed merchants at the start. The answer rests with empowering the people, the citizen, the taxpayer.

Our elected officials - our US Representatives, US Senators and the White House – must understand we the taxpayers – We the People – have had enough and are exercising our constitutionally mandated right to provide oversight to our elected officials. To do that we must make our voices heard.

Just as We the People stopped the sham of an immigration bill we can apply enough pressure on our elected officials to bring them to craft a piece of legislation that affords taxpayer monies to the taxpayers so that they can lift themselves out of this financial crisis by paying their own bills. Approaching the existing crisis in this manner would:

▪ Make available liquid assets to the banks and financial institutions currently strapped for cash because of the “bad paper” they hold.

▪ Eliminate the immediate threat of foreclosure to those who were afforded loans they couldn’t afford.

▪ Eliminate any need for a massive expansion of federal government, thus reducing the proposal for a greater “governmental footprint” in our private lives.

▪ Allows taxpayers to use their own money to rectify private sector matters without governmental interference.

The solution for this “crisis” rests with the people, not the government; government will be responsible for repealing Bill Clinton’s National Homeownership Initiative and eliminating Jimmy Carter’s Community Reinvestment Act, and disciplining US Rep. Barney Frank and Sen. Chris Dodd for their dereliction of duty with regard to their obligation to provide congressional oversight.

In the beginning, when our Framers and Founders created the incredible documents that are The Charters of Freedom – the Declaration of Independence, the US Constitution and the Bill of Rights – they understood that government was to be executed from the local to the federal; they maintained that because we had a citizen government, created to serve the people rather than to lord over the people, that the power needed to rest with the people.

Ladies and Gentlemen, it is time to exercise our constitutional duties of civic responsibility. Let’s tell government to give us our own money back so we can fix the mess they have created. It is time to put good government before opportunistic blame-game politics. Anything else would be to ignore the will of the people.


Contact Information:

White House
President George W. Bush
1600 Pennsylvania Avenue
Washington DC
Email:
president@whitehouse.gov
Comments: (202) 456-1111
Switchboard: (202) 456-1414
FAX: (202) 456-2461

US Senate
CHYPERLINK “http://rs6.net/tn.jsp?e=001GXZ8Xvlm33tU_nDgX0zIPjlMKjCmpJ7wDRipMbu4jA4sUHR_v_7NP1QgNAMnxIXa9On_ewkTQMpWWLols7WWufttC1a-MjSRvYzy-1c7NZAU6Z8LdMMwYOqTR9b4Xt0vUhdaL84XmZlI69GjBEVQfHPlfaf4Pnwp”lick Here to access contact information for your US Senators

US House of Representatives
Click Here
to access contact information for your Congressman

Media
Click Here for a comprehensive, state-by-state database of media contacts.
Frank Salvato is the Executive Director and Director of Terrorism Research for BasicsProject.org a non-profit, non-partisan, 501(c)(3) research and education initiative. His writing has been recognized by the US House International Relations Committee and the Japan Center for Conflict Prevention. His organization, BasicsProject.org, partnered in producing the original national symposium series addressing the root causes of radical Islamist terrorism. He also serves as the managing editor for The New Media Journal. Mr. Salvato has appeared on The O’Reilly Factor on FOX News Channel and is a regular guest on talk radio including on The Right Balance with Greg Allen on the Accent Radio Network and on The Captain’s America Radio Show catering to the US Armed Forces around the world. His opinion-editorials have been published by The American Enterprise Institute, The Washington Times & Human Events and are syndicated nationally. He is occasionally quoted in The Federalist. Mr. Salvato is available for public speaking engagements. He can be contacted at newmediajournal@comcast.net.