That State of the Delusional

[sirs]

[Xavier_Onassis]

Consider that we heard all this before: from Ross Perot, decades ago.

[sirs]

The debt was a mere fraction of what it is now, decades ago.  Sorry, neither you nor Obama can hide from the current facts and state of the economy

[sirs]

Only a president long shielded from criticism and accountability could make the kind of State of the Union speech President Obama did Tuesday night. It's hard to know where to begin, given his repetition of tired ideas from his previous SOTUs, his taking credit for successful policies he resisted and omitting failed ones he promoted, his numerous misrepresentations on issues big and small, and his glaring refusal to address the main issues that threaten the nation.

Let me touch on just a few highlights in this brief space.

Excessive spending is the primary threat to our nation's and Americans' financial future, yet Obama glossed over it and distorted his record.

He said, "We've already agreed to more than $2 trillion in cuts and savings. But we need to do more." But everyone knows he's had to be dragged kicking and screaming to the cutting table. His unrelenting passion is spending. Even The Washington Post said, "Obama does not mention that Republicans forced him to accept $2 trillion in budget cuts during the debt-ceiling impasse."

Obama said, "I'm prepared to make more reforms that rein in the long-term costs of Medicare and Medicaid and strengthen Social Security, so long as those programs remain a guarantee of security for seniors." Well, that's mighty magnanimous of him, but why is he so grudging about it? As president, he should be singularly focused on entitlement reform. Yet he has obstructed and demagogued such reforms. His condition that the "programs remain a guarantee of security for seniors" is completely dishonest, because Paul Ryan's plan did just that and he rejected it while ridiculing and demonizing Ryan.

Obama said, again, that to avoid Warren Buffett's secretary's paying a higher tax rate than her boss, we should adopt the "Buffett rule," prescribing that "if you make more than $1 million a year, you should not pay less than 30 percent in taxes." The Heritage Foundation tells us that according to Congressional Budget Office data, the top 1 percent of income earners already pay 30 percent of their income in all federal taxes. In addition, when wealthy people pay a lower effective income tax rate, it's a result either of lawful deductions (often charitable) or of capital gains and dividends on property they've acquired with money that has already been taxed. Also, before the wealthy realize many of these gains, the businesses that produce these gains have already paid a corporate income tax rate of 35 percent (the highest in the world).

This means that Buffett, on much of this income, pays an effective rate of 50 percent (35 percent corporate plus 15 percent capital gains).

Indeed, 99.4 percent of millionaires and billionaires pay far more in taxes in actual and relative terms than middle- and low-income earners, and for Obama to suggest otherwise is not only deeply deceitful but also damaging -- because of the class envy he constantly stokes -- to the social fabric of this country.

Obama said he wants to lure American companies home yet has steadfastly refused, notwithstanding his SOTU rhetoric, to agree to rectify the primary reasons they leave: punitive corporate income tax rates and onerous regulations.

Obama suggested that he is not only a pioneer in clean energy but also bullish on domestic energy. His record on the former is disgraceful, and both his claim and record on the latter are insulting. He has wasted billions of taxpayer dollars on quixotic green-energy programs with Solyndra and its cousins, spending $5 million for every single "renewable energy" job he has created.

He has defiantly refused to take responsibility and is continuing to pursue more. He has waged war on domestic coal, natural gas and oil. He not only imposed a punitive moratorium on offshore drilling in the Gulf but also lawlessly reinstituted another one after federal district and appellate courts shot down his initial moratorium. When he lifted this revised moratorium, drilling remained in limbo because of the administrative obstacles his administration had imposed on drilling permits. His actions caused devastating losses to the Gulf economy and jobs, which rippled throughout the nation's economy.

Most recently, to placate his environmental extremist base, he blocked the job-producing Keystone XL pipeline for no legitimate reason.

Obama threatened to withhold federal subsidies to colleges unless they hold tuition costs down without recognizing that one of the main reasons they've skyrocketed is the profligate subsidies he continues to increase.

He railed against bailouts after having established a record as President Bailout. He blamed banks again for causing the housing crisis and economic meltdown by making loans to people who couldn't afford them, without admitting that government, mainly his party, was the primary culprit.

He said he'd established the closest military cooperation with Israel in history, but he has bullied that nation for three years, and our relationship has rarely been more strained.       

Believe me, I could go on.

[Christians4LessGvt]

[Christians4LessGvt]

[sirs]

Had I been asked to deliver the State of the Union address, it would not have delayed your dinner plans:

"The State of our Union is broke, heading for bankrupt, and total collapse shortly thereafter. Thank you and goodnight! You've been a terrific crowd!"

I gather that Americans prefer something a little more upbeat, so one would not begrudge a speechwriter fluffing it up by holding out at least the possibility of some change of fortune, however remote. Instead, President Obama assured us at great length that nothing is going to change, not now, not never. Indeed the Union's state – its unprecedented world-record brokeness – was not even mentioned.

If, as I was, you happened to be stuck at Gate 27 at one of the many U.S. airports laboring under the misapprehension that pumping CNN at you all evening long somehow adds to the gaiety of flight delays, you would have watched an address that gave no indication its speaker was even aware that the parlous state of our finances is an existential threat not only to the nation but to global stability. The message was, oh, sure, unemployment's still a little higher than it should be, and student loans are kind of expensive, and the housing market's pretty flat, but it's nothing that a little government "investment" in green jobs and rural broadband and retraining programs can't fix. In other words, more of the unaffordable same.

The president certainly had facts and figures at his disposal. He boasted that his regulatory reforms "will save business and citizens more than $10 billion over the next five years." Wow. Ten billion smackeroos! That's some savings – and in a mere half a decade! Why, it's equivalent to what the Government of the United States borrows every 53 hours. So by midnight on Thursday, Obama had already re-borrowed all those hard-fought savings from 2017. "In the last 22 months," said the president, "businesses have created more than 3 million jobs." Impressive. But 125,000 new foreign workers arrive every month (officially). So we would have to have created 2,750,000 jobs in that period just to stand still.

Fortunately, most of the items in Obama's interminable speech will never happen, any more than the federally funded bicycling helmets or whatever fancies found their way onto Bill Clinton's extravagant shopping lists in the Nineties. At the time, the excuse for Clinton's mountain of legislative molehills was that all the great battles had been won, and, in the absence of a menacing Russian bear, what else did a president have to focus on except criminalizing toilet tanks over 1.6 gallons. President Obama does not enjoy the same dispensation, and any historians stumbling upon a surviving DVD while sifting through the ruins of our civilization will marvel at how his accumulation of delusional trivialities was apparently taken seriously by the assembled political class.

An honest leader would feel he owed it to the citizenry to impress upon them one central truth – that we can't have any new programs because we've spent all the money. It's gone. The cupboard is bare. What's Obama's plan to restock it? "Right now, Warren Buffett pays a lower tax rate than his secretary," the president told us. "Asking a billionaire to pay at least as much as his secretary in taxes? Most Americans would call that common sense."

But why stop there? Americans need affordable health care and affordable Master's Degrees in Climate Change and Social Justice Studies, so why not take everything that Warren Buffett's got? After all, if you confiscated the total wealth of the Forbes 400 richest Americans it would come to $1.5 trillion.

Which is just a wee bit less than the federal shortfall in just one year of Obama-size budgets. 2011 deficit: $1.56 trillion.

But maybe for 2012 a whole new Forbes 400 of Saudi princes and Russian oligarchs will emigrate to the Hamptons and Malibu and keep the whole class-warfare thing going for a couple more years.

The so-called "Buffett Rule" is indicative not so much of "common sense" as of the ever-widening gap between the Brobdingnagian problem and the Lilliputian solutions proposed by our leaders. Obama can sacrifice the virgin daughters of every American millionaire on the altar of government spending, and the debt gods will barely notice so much as to give a perfunctory belch of acknowledgement. The president's first term has added $5 trillion to the debt – a degree of catastrophe unique to us. In an Obama budget, the entire cost of the Greek government would barely rate a line-item.

Debt-to-GDP and other comparative measures are less relevant than the hard-dollar numbers: It's not just that American government has outspent America's ability to fund it, but that it's outspending the planet's.

Who gets this? Not enough of us – which is exactly how Obama likes it. His only "big idea" – that it should be illegal (by national fiat) to drop out of school before your 18th birthday – betrays his core belief: that more is better, as long as it's government-mandated, government-regulated, government-staffed – and funded by you, or Warren Buffett, or the Chinese Politburo, or whoever's left out there.

What of his likely rivals this November? Those of us who have lived in once-great decaying polities recognize the types. Jim Callaghan, Prime Minister at 10 Downing Street in the Seventies, told a friend of mine that he saw his job as managing Britain's decline as gracefully as possible. The United Kingdom certainly declined on his watch, though not terribly gracefully. In last Monday's debate, Newt Gingrich revived the line and accused by implication Mitt Romney of having no higher ambition than to "manage the decline." Running on platitudinous generalities, Mitt certainly betrays little sense that he grasps the scale of the crisis. After a fiery assault by Rick Santorum on Romney's support for an individual mandate in health care, Mitt sneered back at Rick that "it wasn't worth getting angry over." Which may be a foretaste of the energy he would bring to any attempted course correction in Washington.

Newt, meanwhile, has committed himself to a lunar colony by the end of his second term, and, while pandering to an audience on Florida's "Space Coast," he added that, as soon as there were 13,000 American settlers on the moon, they could apply for statehood. Ah, the old frontier spirit: I hear Laura Ingalls Wilder is already working on "Little House In The Crater."

Maybe Newt's on to something. Except for the statehood part. One day, when America gets the old foreclosure notice in the mail, wouldn't it be nice to close up the entire joint, put the keys in an envelope, slide it under the door of the First National Bank of Shanghai, and jet off on Newt's Starship Government-Sponsored Enterprise?

There are times for dreaming big dreams, and there are times to wake up. This country will not be going to the moon, any more than will be the British or French. Because, in decline, the horizons shrivel. The only thing that's going to be on the moon is the debt ceiling. Before we can make any more giant leaps for mankind, we have to make one small, dull, prosaic, earthbound step here at home – and stop. Stop the massive expansion of microregulatory government, and then reverse it.

Obama has vowed to press on.

If Romney and Gingrich can't get serious about it, he'll get his way.

[sirs]

It's the Republicans, to lose
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Once upon a time, small ball was not Barack Obama’s game. Tuesday, it was the essence of his State of the Union address. The visionary of 2008 — purveyor of hope and change, healer of the earth, tamer of the rising seas — offered an hour of little things:
- tax-code tweaks to encourage this or that kind of behavior (manufacturing being the flavor of the day),
- little watchdog agencies to round up Wall Street miscreants and Chinese DVD pirates,
- even a presidential demand “that all students stay in high school until they graduate or turn 18.” Under penalty of what? Jail? The self-proclaimed transformer of America is now playing truant officer?

It sounded like the Clinton years with their presidentially proclaimed initiatives on midnight basketball and school uniforms. These are the marks of a shrunken presidency, thoroughly flummoxed by high unemployment, economic stagnation, crushing debt — and a glaring absence of ideas.

Onward civilian soldiers

Of course, this being Obama, there was a reach for grandeur. Hope and change are long gone. It’s now equality and fairness.

That certainly is a large idea. Lenin and Mao went pretty far with it. As did Clement Attlee and his social-democratic counterparts in postwar Europe. Where does Obama take it? Back to the decade-old Democratic obsession with the Bush tax cuts, the crusade for a tax hike of all of 4.6 points for 2 percent of households — 10 years of which wouldn’t cover the cost of Obama’s 2009 stimulus alone.

Which is why Obama introduced a shiny new twist — the Buffett Rule, a minimum 30 percent rate for millionaires. Sounds novel. But it’s a tired replay of the alternative minimum tax, originally created in 1969 to bring to heel all of 155 underpaying fat cats. Following the fate of other such do-goodism, the AMT then metastasized into a $40 billion monster that today entraps millions of middle-class taxpayers.

There isn’t even a pretense that the Buffett Rule will do anything for economic growth or job creation (other than provide lucrative work for the sharp tax lawyers who will be gaming the new system for the very same rich). Which should not surprise. Back in 2008, Obama was asked if he would still support raising the capital-gains tax rate (the intended effect of the Buffett Rule) if this would decrease government revenue.

Obama said yes. In the name of fairness.

This is redistribution for its own sake — the cost be damned. It took Indiana Gov. Mitch Daniels about 30 seconds of his State of the Union rebuttal to demolish that idea. To get the rich to contribute more, explained Daniels, you don’t raise tax rates. This ultimately retards economic growth for all. You (a) eliminate loopholes from which the rich benefit disproportionately (tax reform) and (b) means-test entitlements so that the benefits go to those most in need.

Tax reform and entitlement reform are the really big ideas.
The first produces social equity plus economic efficiency;
The second produces social equity plus debt reduction.

And yet these are precisely what Obama has for three years steadfastly refused to address. He prefers the easy demagoguery of “tax the rich.”

After all, what’s he got?
Can’t run on his record. Barely even mentioned Obamacare or the stimulus, his major legislative achievements, on Tuesday night. Too unpopular.
His platform is fairness, wrapped around a plethora of little things, one mini-industrial policy after another — the conceit nicely encapsulated by his proclamation that “I will not cede the wind or solar or battery industry to China or to Germany.” As if he can command these industries into existence. As if Washington funding a thousand Solyndras will make solar economically viable.

Soviet central planners mandated quotas for steel production, regardless of demand. Obama’s industrial policy is a bit more subtle. Tax breaks for manufacturing — but double tax breaks for high-tech manufacturing, which for some reason is considered more virtuous, despite the fact that high tech is less likely to create blue-collar jobs. Its main job creation will be for legions of lawyers and linguists testifying before some new adjudicating bureaucracy that the Acme Umbrella Factory meets its exquisitely drawn criteria for “high tech.”

What Obama offered the nation Tuesday night was a pudding without a theme:
- a jumble of disconnected initiatives,
- a gaggle of intrusive new agencies
- and a whole new generation of loopholes to further corrupt a tax code that screams out for reform.

If the Republicans can’t beat that in November, they should try another line of work.

[Christians4LessGvt]

It's the Republicans, to lose

Exactly.....lets take a Romney who may not be perfect and re-take the Senate!
With both houses of Congress and Romney....we can get a lot done.

[sirs]

If he's the candidate, he has my support