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October 2008
Friday October 31, 2008
Barack Obama and the Strategy of Manufactured Crisis
Posted by: Iconoclast at 12:37AM CST on October 31, 2008

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September 28, 2008

Barack Obama and the Strategy of Manufactured Crisis

By James Simpson
America waits with bated breath while Washington struggles to bring the U.S. economy back from the brink of disaster. But many of those same politicians caused the crisis, and if left to their own devices will do so again.

Despite the mass media news blackout, a series of books, talk radio and the blogosphere have managed to expose Barack Obama's connections to his radical mentors -- Weather Underground bombers William Ayers and Bernardine Dohrn, Communist Party member Frank Marshall Davis and others. David Horowitz and his Discover the Networks.org have also contributed a wealth of information and have noted Obama's radical connections since the beginning.

Yet, no one to my knowledge has yet connected all the dots between Barack Obama and the Radical Left. When seen together, the influences on Obama's life comprise a who's who of the radical leftist movement, and it becomes painfully apparent that not only is Obama a willing participant in that movement, he has spent most of his adult life deeply immersed in it.

But even this doesn't fully describe the extreme nature of this candidate. He can be tied directly to a malevolent overarching strategy that has motivated many, if not all, of the most destructive radical leftist organizations in the United States since the 1960s.

The Cloward-Piven Strategy of Orchestrated Crisis

In an earlier post, I noted the liberal record of unmitigated legislative disasters, the latest of which is now being played out in the financial markets before our eyes. Before the 1994 Republican takeover, Democrats had sixty years of virtually unbroken power in Congress - with substantial majorities most of the time. Can a group of smart people, studying issue after issue for years on end, with virtually unlimited resources at their command, not come up with a single policy that works? Why are they chronically incapable?

Why?

One of two things must be true. Either the Democrats are unfathomable idiots, who ignorantly pursue ever more destructive policies despite decades of contrary evidence, or they understand the consequences of their actions and relentlessly carry on anyway because they somehow benefit.

I submit to you they understand the consequences. For many it is simply a practical matter of eliciting votes from a targeted constituency at taxpayer expense; we lose a little, they gain a lot, and the politician keeps his job. But for others, the goal is more malevolent - the failure is deliberate. Don't laugh. This method not only has its proponents, it has a name: the Cloward-Piven Strategy. It describes their agenda, tactics, and long-term strategy.

The Strategy was first elucidated in the May 2, 1966 issue of The Nation magazine by a pair of radical socialist Columbia University professors, Richard Andrew Cloward and Frances Fox Piven. David Horowitz summarizes it as:

The strategy of forcing political change through orchestrated crisis. The "Cloward-Piven Strategy" seeks to hasten the fall of capitalism by overloading the government bureaucracy with a flood of impossible demands, thus pushing society into crisis and economic collapse.

Cloward and Piven were inspired by radical organizer [and Hillary Clinton mentor] Saul Alinsky:

"Make the enemy live up to their (sic) own book of rules," Alinsky wrote in his 1989 book Rules for Radicals. When pressed to honor every word of every law and statute, every Judeo-Christian moral tenet, and every implicit promise of the liberal social contract, human agencies inevitably fall short. The system's failure to "live up" to its rule book can then be used to discredit it altogether, and to replace the capitalist "rule book" with a socialist one. (Courtesy Discover the Networks.org)


Newsmax rounds out the picture:

Their strategy to create political, financial, and social chaos that would result in revolution blended Alinsky concepts with their more aggressive efforts at bringing about a change in U.S. government. To achieve their revolutionary change, Cloward and Piven sought to use a cadre of aggressive organizers assisted by friendly news media to force a re-distribution of the nation's wealth.

In their Nation article, Cloward and Piven were specific about the kind of "crisis" they were trying to create:

By crisis, we mean a publicly visible disruption in some institutional sphere. Crisis can occur spontaneously (e.g., riots) or as the intended result of tactics of demonstration and protest which either generate institutional disruption or bring unrecognized disruption to public attention.

No matter where the strategy is implemented, it shares the following features:

  1. The offensive organizes previously unorganized groups eligible for government benefits but not currently receiving all they can.
  2. The offensive seeks to identify new beneficiaries and/or create new benefits.
  3. The overarching aim is always to impose new stresses on target systems, with the ultimate goal of forcing their collapse.

Capitalizing on the racial unrest of the 1960s, Cloward and Piven saw the welfare system as their first target. They enlisted radical black activist George Wiley, who created the National Welfare Reform Organization (NWRO) to implement the strategy. Wiley hired militant foot soldiers to storm welfare offices around the country, violently demanding their "rights." According to a City Journal article by Sol Stern, welfare rolls increased from 4.3 million to 10.8 million by the mid-1970s as a result, and in New York City, where the strategy had been particularly successful, "one person was on the welfare rolls... for every two working in the city's private economy."

According to another City Journal article titled "Compassion Gone Mad":

The movement's impact on New York City was jolting: welfare caseloads, already climbing 12 percent a year in the early sixties, rose by 50 percent during Lindsay's first two years; spending doubled... The city had 150,000 welfare cases in 1960; a decade later it had 1.5 million.  

The vast expansion of welfare in New York City that came of the NWRO's Cloward-Piven tactics sent the city into bankruptcy in 1975. Rudy Giuliani cited Cloward and Piven by name as being responsible for "an effort at economic sabotage." He also credited Cloward-Piven with changing the cultural attitude toward welfare from that of a temporary expedient to a lifetime entitlement, an attitude which in-and-of-itself has caused perhaps the greatest damage of all.

Cloward and Piven looked at this strategy as a gold mine of opportunity. Within the newly organized groups, each offensive would find an ample pool of foot soldier recruits willing to advance its radical agenda at little or no pay, and expand its base of reliable voters, legal or otherwise. The radicals' threatening tactics also would accrue an intimidating reputation, providing a wealth of opportunities for extorting monetary and other concessions from the target organizations. In the meantime, successful offensives would create an ever increasing drag on society. As they gleefully observed:

Moreover, this kind of mass influence is cumulative because benefits are continuous. Once eligibility for basic food and rent grants is established, the drain on local resources persists indefinitely.

The next time you drive through one of the many blighted neighborhoods in our cities, or read of the astronomical crime, drug addiction, and out-of-wedlock birth rates, or consider the failed schools, strapped police and fire resources of every major city, remember Cloward and Piven's thrill that "...the drain on local resources persists indefinitely."

ACORN, the new tip of the Cloward-Piven spear

In 1970, one of George Wiley's protégés, Wade Rathke -- like Bill Ayers, a member of the radical Students for a Democratic Society (SDS) -- was sent to found the Arkansas Community Organizations for Reform Now. While NWRO had made a good start, it alone couldn't accomplish the Cloward-Piven goals. Rathke's group broadened the offensive to include a wide array of low income "rights." Shortly thereafter they changed "Arkansas" to "Association of" and ACORN went nationwide.

Today ACORN is involved in a wide array of activities, including housing, voting rights, illegal immigration and other issues. According to ACORN's website: "ACORN is the nation's largest grassroots community organization of low-and moderate-income people with over 400,000 member families organized into more than 1,200 neighborhood chapters in 110 cities across the country," It is perhaps the largest radical group in the U.S. and has been cited for widespread criminal activity on many fronts.

Voting

On voting rights, ACORN and its voter mobilization subsidiary, Project Vote, have been involved nationwide in efforts to grant felons the vote and lobbied heavily for the Motor Voter Act of 1993, a law allowing people to register at motor vehicle departments, schools, libraries and other public places. That law had been sought by Cloward and Piven since the early1980s and they were present, standing behind President Clinton at the signing ceremony.

ACORN's voter rights tactics follow the Cloward-Piven Strategy:

  • 1. Register as many Democrat voters as possible, legal or otherwise and help them vote, multiple times if possible.
  • 2. Overwhelm the system with fraudulent registrations using multiple entries of the same name, names of deceased, random names from the phone book, even contrived names.
  • 3. Make the system difficult to police by lobbying for minimal identification standards.

In this effort, ACORN sets up registration sites all over the country and has been frequently cited for turning in fraudulent registrations, as well as destroying republican applications. In the 2004-2006 election cycles alone, ACORN was accused of widespread voter fraud in 12 states. It may have swung the election for one state governor.

ACORN's website brags: "Since 2004, ACORN has helped more than 1.7 million low- and moderate-income and minority citizens apply to register to vote." Project vote boasts 4 million. I wonder how many of them are dead? For the 2008 cycle, ACORN and Project Vote have pulled out all the stops. Given their furious nationwide effort, it is not inconceivable that this presidential race could be decided by fraudulent votes alone.

Barack Obama ran ACORN's Project Vote in Chicago and his highly successful voter registration drive was credited with getting the disgraced former Senator Carol Moseley-Braun elected. Newsmax reiterates Cloward and Piven's aspirations for ACORN's voter registration efforts:

By advocating massive, no-holds-barred voter registration campaigns, they [Cloward & Piven] sought a Democratic administration in Washington, D.C. that would re-distribute the nation's wealth and lead to a totalitarian socialist state.

Illegal Immigration

As I have written elsewhere, the Radical Left's offensive to promote illegal immigration is "Cloward-Piven on steroids." ACORN is at the forefront of this movement as well, and was a leading organization among a broad coalition of radical groups, including Soros' Open Society Institute, the Service Employees International Union (ACORN founder Wade Rathke also runs a SEIU chapter), and others, that became the Coalition for Comprehensive Immigration Reform. CCIR fortunately failed to gain passage for the 2007 illegal immigrant amnesty bill, but its goals have not changed.

The burden of illegal immigration on our already overstressed welfare system has been widely documented. Some towns in California have even been taken over by illegal immigrant drug cartels. The disease, crime and overcrowding brought by illegal immigrants places a heavy burden on every segment of society and every level of government, threatening to split this country apart at the seams. In the meantime, radical leftist efforts to grant illegal immigrants citizenship guarantee a huge pool of new democrat voters. With little border control, terrorists can also filter in.

Obama aided ACORN as their lead attorney in a successful suit he brought against the Illinois state government to implement the Motor Voter law there. The law had been resisted by Republican Governor Jim Edgars, who feared the law was an opening to widespread vote fraud.

His fears were warranted as the Motor Voter law has since been cited as a major opportunity for vote fraud, especially for illegal immigrants, even terrorists. According to the Wall Street Journal: "After 9/11, the Justice Department found that eight of the 19 hijackers were registered to vote..."

ACORN's dual offensives on voting and illegal immigration are handy complements. Both swell the voter rolls with reliable democrats while assaulting the country ACORN seeks to destroy with overwhelming new problems.

Mortgage Crisis

And now we have the mortgage crisis, which has sent a shock wave through Wall Street and panicked world financial markets like no other since the stock market crash of 1929. But this is a problem created in Washington long ago.  It originated with the Community Reinvestment Act (CRA), signed into law in 1977 by President Jimmy Carter. The CRA was Carter's answer to a grassroots activist movement started in Chicago, and forced banks to make loans to low income, high risk customers. PhD economist and former Texas Senator Phil Gramm has called it: "a vast extortion scheme against the nation's banks."

ACORN aggressively sought to expand loans to low income groups using the CRA as a whip. Economist Stan Leibowitz wrote in the New York Post:

In the 1980s, groups such as the activists at ACORN began pushing charges of "redlining"-claims that banks discriminated against minorities in mortgage lending. In 1989, sympathetic members of Congress got the Home Mortgage Disclosure Act amended to force banks to collect racial data on mortgage applicants; this allowed various studies to be ginned up that seemed to validate the original accusation.

In fact, minority mortgage applications were rejected more frequently than other applications-but the overwhelming reason wasn't racial discrimination, but simply that minorities tend to have weaker finances.

ACORN showed its colors again in 1991, by taking over the House Banking Committee room for two days to protest efforts to scale back the CRA. Obama represented ACORN in the Buycks-Roberson v. Citibank Fed. Sav. Bank, 1994 suit against redlining.  Most significant of all, ACORN was the driving force behind a 1995 regulatory revision pushed through by the Clinton Administration that greatly expanded the CRA and laid the groundwork for the Fannie Mae, Freddie Mac borne financial crisis we now confront. Barack Obama was the attorney representing ACORN in this effort. With this new authority, ACORN used its subsidiary, ACORN Housing, to promote subprime loans more aggressively.

As a New York Post article describes it:

A 1995 strengthening of the Community Reinvestment Act required banks to find ways to provide mortgages to their poorer communities. It also let community activists intervene at yearly bank reviews, shaking the banks down for large pots of money.


Banks that got poor reviews were punished; some saw their merger plans frustrated; others faced direct legal challenges by the Justice Department.

Flexible lending programs expanded even though they had higher default rates than loans with traditional standards. On the Web, you can still find CRA loans available via ACORN with "100 percent financing . . . no credit scores . . . undocumented income . . . even if you don't report it on your tax returns." Credit counseling is required, of course.

Ironically, an enthusiastic Fannie Mae Foundation report singled out one paragon of nondiscriminatory lending, which worked with community activists and followed "the most flexible underwriting criteria permitted." That lender's $1 billion commitment to low-income loans in 1992 had grown to $80 billion by 1999 and $600 billion by early 2003.

The lender they were speaking of was Countrywide, which specialized in subprime lending and had a working relationship with ACORN.


The revisions also allowed for the first time the securitization of CRA-regulated loans containing subprime mortgages. The changes came as radical "housing rights" groups led by ACORN lobbied for such loans. ACORN at the time was represented by a young public-interest lawyer in Chicago by the name of Barack Obama. (Emphasis, mine.)

Since these loans were to be underwritten by the government sponsored Fannie Mae and Freddie Mac, the implicit government guarantee of those loans absolved lenders, mortgage bundlers and investors of any concern over the obvious risk. As Bloomberg reported: "It is a classic case of socializing the risk while privatizing the profit."

And if you think Washington policy makers cared about ACORN's negative influence, think again. Before this whole mess came down, a Democrat-sponsored bill on the table would have created an "Affordable Housing Trust Fund," granting ACORN access to approximately $500 million in Fannie Mae and Freddie Mac revenues with little or no oversight.

Even now, unbelievably -- on the brink of national disaster -- Democrats have insisted ACORN benefit from bailout negotiations! Senator Lindsay Graham reported last night (9/25/08) in an interview with Greta Van Susteren of On the Record that Democrats want 20 percent of the bailout money to go to ACORN!

This entire fiasco represents perhaps the pinnacle of ACORN's efforts to advance the Cloward-Piven Strategy and is a stark demonstration of the power they wield in Washington.

Enter Barack Obama

In attempting to capture the significance of Barack Obama's Radical Left connections and his relation to the Cloward Piven strategy, I constructed following flow chart. It is by no means complete. There are simply too many radical individuals and organizations to include them all here. But these are perhaps the most significant.

Cloward Piven Strategy

The chart puts Barack Obama at the epicenter of an incestuous stew of American radical leftism. Not only are his connections significant, they practically define who he is. Taken together, they constitute a who's who of the American radical left, and guiding all is the Cloward-Piven strategy.

Conspicuous in their absence are any connections at all with any other group, moderate, or even mildly leftist.
They are all radicals, firmly bedded in the anti-American, communist, socialist, radical leftist mesh.

Saul Alinsky

Most people are unaware that Barack Obama received his training in "community organizing" from Saul Alinsky's Industrial Areas Foundation. But he did. In and of itself that marks his heritage and training as that of a radical activist. One really needs go no further. But we have.

Bill Ayers

Obama objects to being associated with SDS bomber Bill Ayers, claiming he is being smeared with "guilt by association." But they worked together at the Woods Fund. The Wall Street Journal added substantially to our knowledge by describing in great detail Obama's work over five years with SDS bomber Bill Ayers on the board of a non-profit, the Chicago Annenberg Challenge, to push a radical agenda on public school children. As Stanley Kurtz states:

"...the issue here isn't guilt by association; it's guilt by participation. As CAC chairman, Mr. Obama was lending moral and financial support to Mr. Ayers and his radical circle. That is a story even if Mr. Ayers had never planted a single bomb 40 years ago."

Also included in the mix is Theresa Heinz Kerry's favorite charity, the Tides Foundation. A partial list of Tides grants tells you all you need to know: ACLU, ACORN, Center for American Progress, Center for Constitutional Rights (a communist front,) CAIR, Earth Justice, Institute for Policy Studies (KGB spy nest), National Lawyers Guild (oldest communist front in U.S.), People for the Ethical Treatment of Animals (PETA), and practically every other radical group there is. ACORN's Wade Rathke runs a Tides subsidiary, the Tides Center.

Carl Davidson and the New Party

We have heard about Bomber Bill, but we hear little about fellow SDS member Carl Davidson. According to Discover the Networks, Davidson was an early supporter of Barack Obama and a prominent member of Chicago's New Party, a synthesis of CPUSA members, Socialists, ACORN veterans and other radicals. Obama sought and received the New Party's endorsement, and they assisted with his campaign. The New Party also developed a strong relationship with ACORN. As an excellent article on the New Party observes: "Barack Obama knew what he was getting into and remains an ideal New Party candidate."

George Soros

The chart also suggests the reason for George Soros' fervent support of Obama. The President of his Open Society Institute is Aryeh Neier, founder of the radical Students for a Democratic Society (SDS). As mentioned above, three other former SDS members had extensive contact with Obama: Bill Ayers, Carl Davidson and Wade Rathke. Surely Aryeh Neier would have heard from his former colleagues of the promising new politician. More to the point, Neier is firmly committed to supporting the hugely successful radical organization, ACORN, and would be certain back their favored candidate, Barack Obama.

ACORN

Obama has spent a large portion of his professional life working for ACORN or its subsidiaries, representing ACORN as a lawyer on some of its most critical issues, and training ACORN leaders. Stanley Kurtz's excellent National Review article, "Inside Obama's Acorn." also describes Obama's ACORN connection in detail. But I can't improve on Obama's own words:

I've been fighting alongside ACORN on issues you care about my entire career (emphasis added). Even before I was an elected official, when I ran Project Vote voter registration drive in Illinois, ACORN was smack dab in the middle of it, and we appreciate your work. - Barack Obama, Speech to ACORN, November 2007 (Courtesy Newsmax.)

In another excellent article on Obama's ACORN connections, Newsmax asks a nagging question:

It would be telling to know if Obama, during his years at Columbia, had occasion to meet Cloward and study the Cloward-Piven Strategy.

I ask you, is it possible ACORN would train Obama to take leadership positions within ACORN without telling him what he was training for? Is it possible ACORN would put Obama in leadership positions without clueing him into what his purpose was?? Is it possible that this most radical of organizations would put someone in charge of training its trainers, without him knowing what it was he was training them for?

As a community activist for ACORN; as a leadership trainer for ACORN; as a lead organizer for ACORN's Project Vote; as an attorney representing ACORN's successful efforts to impose Motor Voter regulations in Illinois; as ACORN's representative in lobbying for the expansion of high risk housing loans through Fannie Mae and Freddie Mac that led to the current crisis; as a recipient of their assistance in his political campaigns -- both with money and campaign workers; it is doubtful that he was unaware of ACORN's true goals. It is doubtful he was unaware of the Cloward-Piven Strategy.

Fast-forward to 2005 when an obsequious, servile and scraping Daniel Mudd, CEO of Fannie Mae spoke at the Congressional Black Caucus swearing in ceremony for newly-elected Illinois Senator, Barack Obama. Mudd called, the Congressional Black Caucus "our family" and "the conscience of Fannie Mae."

In 2005, Republicans sought to rein in Fannie and Freddie. Senator John McCain was at the forefront of that effort. But it failed due to an intense lobbying effort put forward by Fannie and Freddie.

In his few years as a U.S. senator, Obama has received campaign contributions of $126,349, from Fannie and Freddie, second only to the $165,400 received by Senator Chris Dodd, who has been getting donations from them since 1988. What makes Obama so special?

His closest advisers are a dirty laundry list of individuals at the heart of the financial crisis: former Fannie Mae CEO Jim Johnson; Former Fannie Mae CEO and former Clinton Budget Director Frank Raines; and billionaire failed Superior Bank of Chicago Board Chair Penny Pritzker.

Johnson had to step down as adviser on Obama's V.P. search after this gem came out:

An Office of Federal Housing Enterprise Oversight (OFHEO) report[1] from September 2004 found that, during Johnson's tenure as CEO, Fannie Mae had improperly deferred $200 million in expenses. This enabled top executives, including Johnson and his successor, Franklin Raines, to receive substantial bonuses in 1998.[2] A 2006 OFHEO report[3] found that Fannie Mae had substantially under-reported Johnson's compensation. Originally reported as $6-7 million, Johnson actually received approximately $21 million.

Obama denies ties to Raines but the Washington Post calls him a member of "Obama's political circle." Raines and Johnson were fined $3 million by the Office of Federal Housing Oversight for their manipulation of Fannie books. The fine is small change however, compared to the $50 million Raines was able to obtain in improper bonuses as a result of juggling the books.

Most significantly, Penny Pritzker, the current Finance Chairperson of Obama's presidential campaign helped develop the complicated investment bundling of subprime securities at the heart of the meltdown. She did so in her position as shareholder and board chair of Superior Bank. The Bank failed in 2001, one of the largest in recent history, wiping out $50 million in uninsured life savings of approximately 1,400 customers. She was named in a RICO class action law suit but doesn't seem to have come out of it too badly.

As a young attorney in the 1990s, Barack Obama represented ACORN in Washington in their successful efforts to expand Community Reinvestment Act (CRA) authority. In addition to making it easier for ACORN groups to force banks into making risky loans, this also paved the way for banks like Superior to package mortgages as investments, and for the Government Sponsored Enterprises Fannie Mae and Freddie Mac to underwrite them. These changes created the conditions that ultimately lead to the current financial crisis.

Did they not know this would occur? Were these smart people, led by a Harvard graduate, unaware of the Econ 101 concept of moral hazard that would result from the government making implicit guarantees to underwrite private sector financial risk? They should have known that freeing the high-risk mortgage market of risk, calamity was sure to ensue. I think they did.

Barack Obama, the Cloward-Piven candidate, no matter how he describes himself, has been a radical activist for most of his political career. That activism has been in support of organizations and initiatives that at their heart seek to tear the pillars of this nation asunder in order to replace them with their demented socialist vision. Their influence has spread so far and so wide that despite their blatant culpability in the current financial crisis, they are able to manipulate Capital Hill politicians to cut them into $140 billion of the bailout pie!

God grant those few responsible yet remaining in Washington, DC the strength to prevent this massive fraud from occurring. God grant them the courage to stand up in the face of this Marxist tidal wave.

Jim Simpson is a former White House staff economist and budget analyst. His writings have been published in American Thinker, Washington Times, FrontPage Magazine, DefenseWatch, Soldier of Fortune and others. His blog is Truth and Consequences..



At Daily Kos Hate Website Obama Told Far Left to Fool Public To Further Cause
Posted by: Iconoclast at 12:33AM CST on October 31, 2008

At Daily Kos Hate Website Obama Told Far Left to Fool Public To Further Cause


At the Far Left anti-Semitic Daily Kos website, Barack Obama told moonbats to pretend to be less radical to further the progressive cause.
Via Sweetness and Light:

I thought this might be a good opportunity to offer some thoughts about not only judicial confirmations, but how to bring about meaningful change in this country.

Maybe some of you believe I could have made my general point more artfully, but it’s precisely because many of these groups are friends and supporters that I felt it necessary to speak my mind.

There is one way, over the long haul, to guarantee the appointment of judges that are sensitive to issues of social justice, and that is to win the right to appoint them by recapturing the presidency and the Senate. And I don’t believe we get there by vilifying good allies, with a lifetime record of battling for progressive causes, over one vote or position. I am convinced that, our mutual frustrations and strongly-held beliefs notwithstanding, the strategy driving much of Democratic advocacy, and the tone of much of our rhetoric, is an impediment to creating a workable progressive majority in this country.

According to the storyline that drives many advocacy groups and Democratic activists - a storyline often reflected in comments on this blog - we are up against a sharply partisan, radically conservative, take-no-prisoners Republican party. They have beaten us twice by energizing their base with red meat rhetoric and single-minded devotion and discipline to their agenda. In order to beat them, it is necessary for Democrats to get some backbone, give as good as they get, brook no compromise, drive out Democrats who are interested in “appeasing” the right wing, and enforce a more clearly progressive agenda.

The country, finally knowing what we stand for and seeing a sharp contrast, will rally to our side and thereby usher in a new progressive era.
Read the whole thing. Clearly, this man is no moderate.

Monday October 20, 2008
Obama Voted 'Present' on Mortgage Reform
Posted by: Iconoclast at 10:25PM CST on October 20, 2008

Obama Voted 'Present' on Mortgage Reform

The only banking 'deregulation' in recent years was that of Fan and Fred.

In each of the first two presidential debates, Barack Obama claimed that "Republican deregulation" is responsible for the financial crisis. Most viewers probably accepted this idea, especially because Republicans generally do favor deregulation.

But one essential fact was missing from the senator's narrative: While there has been significant deregulation in the U.S. economy during the last 30 years, none of it has occurred in the financial sector. Indeed, the only significant legislation with any effect on financial risk-taking was the Federal Deposit Insurance Corporation Improvement Act of 1991, adopted during the first Bush administration in the wake of the collapse of the savings and loans (S&Ls). FDICIA, however, substantially tightened commercial bank and S&L regulations, including prompt corrective action when a bank's capital declines below adequate levels and severe personal fines if management violates laws or regulations.

If Sen. Obama had been asked for an example of "Republican deregulation," he would probably have cited the Gramm-Leach-Bliley Act of 1999 (GLBA), which has become a popular target for Democrats searching for something to pin on the GOP. This is puzzling. The bill's key sponsors were indeed Republicans, but the bill was supported by the Clinton administration and signed by President Clinton. The GLBA's "repeal" of a portion of the Glass-Steagall Act of 1933 is said to have somehow contributed to the current financial meltdown. Nonsense.

Adopted early in the New Deal, the Glass-Steagall Act separated investment and commercial banking. It prohibited commercial banks from underwriting or dealing in securities, and from affiliating with firms that engaged principally in that business. The GLBA repealed only the second of these provisions, allowing banks and securities firms to be affiliated under the same holding company. Thus J.P. Morgan Chase was able to acquire Bear Stearns, and Bank of America could acquire Merrill Lynch. Nevertheless, banks themselves were and still are prohibited from underwriting or dealing in securities.

Allowing banks and securities firms to affiliate under the same holding company has had no effect on the current financial crisis. None of the investment banks that have gotten into trouble -- Bear, Lehman, Merrill, Goldman or Morgan Stanley -- were affiliated with commercial banks. And none of the banks that have major securities affiliates -- Citibank, Bank of America, and J.P. Morgan Chase, to name a few -- are among the banks that have thus far encountered serious financial problems. Indeed, the ability of these banks to diversify into nonbanking activities has been a source of their strength.

Most important, the banks that have succumbed to financial problems -- Wachovia, Washington Mutual and IndyMac, among others -- got into trouble by investing in bad mortgages or mortgage-backed securities, not because of the securities activities of an affiliated securities firm. Federal Reserve regulations significantly restrict transactions between banks and their affiliates.

If Sen. Obama were truly looking for a kind of deregulation that might be responsible for the current financial crisis, he need only look back to 1998, when the Clinton administration ruled that Fannie Mae and Freddie Mac could satisfy their affordable housing obligations by purchasing subprime mortgages. This ultimately made it possible for Fannie and Freddie to add a trillion dollars in junk loans to their balance sheets. This led to their own collapse, and to the development of a market in these mortgages that is the source of the financial crisis we are wrestling with today.

Finally, on the matter of deregulation and the financial crisis, Sen. Obama should consider his own complicity in the failure of Congress to adopt legislation that might have prevented the subprime meltdown.

In the summer of 2005, a bill emerged from the Senate Banking Committee that considerably tightened regulations on Fannie and Freddie, including controls over their capital and their ability to hold portfolios of mortgages or mortgage-backed securities. All the Republicans voted for the bill in committee; all the Democrats voted against it. To get the bill to a vote in the Senate, a few Democratic votes were necessary to limit debate. This was a time for the leadership Sen. Obama says he can offer, but neither he nor any other Democrat stepped forward.

Instead, by his own account, Mr. Obama wrote a letter to the Treasury Secretary, allegedly putting himself on record that subprime loans were dangerous and had to be dealt with. This is revealing; if true, it indicates Sen. Obama knew there was a problem with subprime lending -- but was unwilling to confront his own party by pressing for legislation to control it. As a demonstration of character and leadership capacity, it bears a strong resemblance to something else in Sen. Obama's past: voting present.


Since Maurice Asked: An Argument Against Obama's Tax Plan
Posted by: Iconoclast at 10:09PM CST on October 20, 2008

"Make no mistake about it: Obama's plan to raise taxes on households making more than $250,000 will raise taxes on most small-business profits in America." -- Grover Norquist

"An Argument Against Obama's Tax Plan"
Grover G. Norquist
Politico
July 11, 2008

The Tax Policy Center and the Barack Obama campaign used some sleight of hand this week in Politico. To quote Eric Tolder of the TPC, "Most small-business people, like most everyone else, are not really high-income." While this is true, it completely and totally misses the point.

Let's start with the definition of a "small business." Most will tell you that small-business income constitutes income derived from sole proprietorships, partnerships and Subchapter S corporations.

The conservative argument (and that of the John McCain campaign) is that Obama's stated plan to raise taxes on households making $250,000 or more in income is a tax increase on small business. The simple answer to this dilemma can be found in the IRS Statistics of Income Bulletin (Table 1.4, for those who are interested).

So what do the data say?

In 2006 (the latest year available), $706 billion of such income was reported to the Internal Revenue Service. Of this, about half was reported by households in the top marginal income tax rate. Interestingly, two-thirds of this income was reported by households making $250,000 per year or more -- the very same households that Obama wants to increase taxes on.

The Obama campaign maintains that the number of small-business owners is what's important. Economists know what matters is the tax rate that's applied to the bulk of small-business income. Make no mistake about it: Obama's plan to raise taxes on households making more than $250,000 will raise taxes on most small-business profits in America.

What type of tax rate are we talking about? Currently, S corporations face a top tax rate of 35 percent, while sole proprietors and general partners face a tax rate of 37.9 percent (since they're responsible for paying both income tax and the Medicare component of the payroll tax).

Under Obama's plan to let the scheduled 2011 tax rate hikes occur, and his plan to raise the self-employment tax on those making more than $250,000, the S corporation rate would rise from 35 percent to 39.6 percent. The sole proprietor and partner rate would rise from 37.9 percent all the way up to a staggering 50.3 percent. Many Democrats in Congress have proposed making all small businesses (including S corporations) pay this 50-plus percent rate. A small business tax rate that high would be the highest marginal rate faced by them in nearly a quarter-century.

What would a world look like where two-thirds of all small-business income would be taxed at a 50 percent rate? The economic law that "taxing something more and getting less of it" would apply. Fewer Americans would be interested in opening or expanding small businesses. Tax evasion and legal tax avoidance would spike, as tax shelters would once again become a booming industry. Since small businesses create a majority of jobs in America, Main Street closing up shop will have a direct impact on the family budget, as well. Plants and equipment will go unused. Despite the misguided opinions of static scorers in Washington, federal tax revenues will likely decline as the economy staggers into a full-on recession.

What's the alternative? One place to look is the optional alternate tax system originally proposed by Congressman Paul Ryan (R-Wis.) and now endorsed by McCain. It would give households (including those with small business income) a choice between the current tax code and one with a top rate of 25 percent on all income over $100,000. This would have the beneficial effect of lowering the tax rate on most small-business income by 10 percentage points. Small businesses haven't faced a tax rate that low in quite some time and would be likely to respond with the creation of new businesses and more investment in existing businesses.

The McCain small business tax plan doesn't end there. For those businesses that are organized as conventional corporations, the top tax rate would fall from 35 percent to 25 percent, the European average. For all businesses, technology and equipment -- which now must be slowly "depreciated" over many years -- would be immediately expensed in year one.

Stepping back, voters and policymakers should ask themselves whether they want two-thirds of small business income taxed at a 50 percent tax rate or if they want nearly all small-business income taxed at a 25 percent tax rate. They should ask themselves whether it's healthier for small businesses to write off a computer over six calendar years or to simply write it off in year one. To America's small business sector, the answer is obvious.


In Defense of "The Rich"
Posted by: Iconoclast at 11:57PM CST on October 19, 2008
In Defense of "The Rich"
by Larry Elder

So, what do "the rich" pay in federal income taxes? Nothing, right? That, at least, is what most people think. And Democratic presidential candidate Barack Obama wants to raise the top marginal rate for "the rich" -- known in some quarters as "job creators."

A recent poll commissioned by Investor's Business Daily asked, in effect, "What share do you think the rich pay?" Their findings? Most people are completely clueless about the amount the rich actually do pay.

First, the data. The top 5 percent (those making more than $153,542 -- the group whose taxes Obama seeks to raise) pay 60 percent of all federal income taxes. The rich (aka the top 1 percent of income earners, those making more than $388,806 a year), according to the IRS, pay 40 percent of all federal income taxes. The top 1 percent's taxes comprise 17 percent of the federal government's revenue from all sources, including corporate taxes, excise taxes, social insurance and retirement receipts.

Now, what do people think the rich pay? The IBD/TIPP poll found that 36 percent of those polled thought the rich contribute 10 percent or less of all federal income taxes. Another 15 percent thought the rich pay between 10 and 20 percent, while another 10 percent thought the rich's share is between 20 and 30 percent. In other words, most people thought the rich pay less -- far less -- than they actually do. Only 12 percent of those polled thought the rich pay more than 40 percent.

Let's try this another way. A U.S. News & World Report blogger went to the Democratic National Convention in Denver and conducted an informal poll of 24 DNC delegates. He asked them, "What should 'the rich' pay in income taxes?" Half the respondents said "25 percent"; 25 percent said "20 percent"; 12 percent said "30 percent"; and another 12 percent said "35 percent." The average DNC delegate wanted the rich to pay 25.6 percent, which is lower than what the rich pay now -- both by share of taxes and by tax rate!

Thirty percent of American voters pay nothing -- zero, zip, nada -- in federal income taxes. And, not too surprisingly, compared with taxpaying voters, they are more likely to support spending that benefits them. The majority of the 30 percent who don't pay federal income taxes agree with Obama's $65 billion plan to institute taxpayer-funded universal health coverage. But the majority of the 70 percent who pay federal income taxes are opposed to Obama's health care plan.

Non-taxpayers support Obama's plans for increased tax deductions for lower-income Americans, along with higher overall tax rates levied against middle- and upper-income households. The majority of non-taxpayers (57 percent) also favor raising the individual income-tax rate for those in the highest bracket from 35 percent to 54 percent. And the majority (59 percent) favors raising Social Security taxes by 4 percent for any individual or business that makes at least $250,000.

Obama calls increasing taxes and giving them to the needy a matter of "neighborliness." Vice presidential running mate Joe Biden calls it a matter of "patriotism."

Yet when it comes to charitable giving, neither Obama (until recently) nor Biden feels sufficiently neighborly or patriotic to donate as much as does the average American household: 2 percent of their adjusted gross income.

Liberal families earn about 6 percent more than conservative families, yet conservative households donate about 30 percent more to charity than do liberal households. And conservatives give more than just to their own churches and other houses of worship. Conservatives, especially religious conservatives, give far more money and donate more of their time to nonreligious charitable causes than do liberals -- especially secular liberals.

In 2007, President George W. Bush and his wife had an adjusted gross income of $923,807. They paid $221,635 in taxes, and donated $165,660 to charity -- or 18 percent of their income. Vice President and Mrs. Cheney, in 2007, had a taxable income of $3.04 million. And they paid $602,651 in taxes, and donated $166,547 to charity -- or 5.5 percent of their income.

Barack Obama and his wife, Michelle, earned between $200,000 and $300,000 a year between 2000 and 2004, and they donated less than 1 percent to charity. When their income soared to $4.2 million in 2007, their charitable contributions went up to 5 percent.

Joe and Jill Biden, by contrast, made $319,853 and gave $995 to charity in 2007, or 0.3 percent of their income. And that was during the year Biden was running for president. Over the past 10 years, the Bidens earned $2,450,042 and gave $3,690 to charity -- or 0.1 percent of their income.

So let's sum up. The "compassionate" liberals -- at least based on charitable giving -- show less compassion than "hardhearted" conservatives. The rich pay more in income taxes than people think. Voters, clueless about the facts, want the rich to pay still more.


Sunday October 12, 2008
Obama's Weathermen pals should worry voters
Posted by: Iconoclast at 7:19AM CST on October 12, 2008

Obama's Weathermen pals should worry voters

DEROY MURDOCK Seattle Post-Intelligencer

Barack Obama's supporters have trivialized his connections to former Weather Underground terrorists William Ayers and Bernardine Dohrn. "This is a guy who lives in my neighborhood," Obama told ABC's George Stephanopoulos on April 16. Campaign strategist David Axelrod told CNN Monday that Obama "certainly didn't know the history" of these two barbarians when they hosted a reception for him when he launched his political career.

Obama might not have heard of Ayers and Dohrn's brutality from the '60s through the '80s had they merely tossed a rock or two in anger. But these two went much, much farther.

In 1970, Ayers encapsulated the Weathermen's worldview: "Kill all the rich people. Break up their cars and apartments. Bring the revolution home. Kill your parents." In his 2001 memoir, "Fugitive Days," Ayers brags that he helped blast NYPD headquarters in 1970, the U.S. Capitol in 1971, and the Pentagon in 1972.

Dohrn was an equally stalwart subversive. In July 1969, while John McCain languished in the Hanoi Hilton, Dohrn and five other Weathermen flew to Cuba to conspire with the National Liberation Front, America's North Vietnamese enemies. Dohrn was on the FBI's 10 Most Wanted List. FBI Director J. Edgar Hoover called her "the most dangerous woman in America."

Throughout the 1970s, under Ayers and Dohrn's leadership, the Weathermen blasted the State Department, Gulf Oil's Pittsburgh headquarters, and New York's Queens Courthouse, among at least 16 targets.

Thankfully, one particular bomb detonated early. Three Weathermen fatally blew themselves up in March 1970 while building it in a Greenwich Village townhouse. The Weathermen wanted the nail-filled device to explode at New Jersey's Fort Dix Army base during a non-commissioned officers' dance. Soldiers, their spouses, and dates would have been maimed and likely killed. As Ayers said, the bomb would have ripped "through windows and walls and, yes, people too."

No wonder Obama has been so evasive about his ties to Ayers and Dohrn. His relationship with these extreme Leftists goes far beyond waving at some folks who live nearby. It defies belief that Obama never learned that Ayers and Dohrn hated the USA and loved TNT.

Obama chaired the Chicago Annenberg Challenge, which Ayers inaugurated. They jointly attended at least seven of that charity's top-level oversight meetings between March 1995 and September 1997. They jointly met a dozen times as board members of Chicago's Woods Fund between December 1999 and December 2002. They appeared together on two academic panels in 1997 and 2002. Obama concisely reviewed one of Ayers' books in the Chicago Tribune.

Ayers and Dohrn invited Windy City liberals into their living room to meet Obama when he began his 1995 State Senate run. Ayers donated $200 to re-elect Obama in 2001.

These considerable ties might be irrelevant if Ayers and Dohrn regretted their actions. But they are far from remorseful.

"I don't regret setting bombs. I feel we didn't do enough," Ayers said in an interview published Sept. 11, 2001 -- while Obama knew Ayers. That August, Ayers posed for a Chicago Magazine photo in which he stomped on an American flag crumpled in the dirt. Headline: "No regrets."

"We'd do it again," Dohrn told ABC in 1998. "I wish that we had done more. I wish we had been more militant."

If these facts are news to Obama, he must be the most oblivious man on Chicago's South Side. But if he knew about Ayers and Dohrn's background, he is being untruthful about it. At the very least, Obama showed dreadful judgment by closely and repeatedly associating with these violent traitors.

Obama today calls Ayers' behavior "detestable acts." But what did Ayers and Dohrn see in Obama? What inspired these unrepentant, hard-Left bomb throwers to hand the chairmanship of Ayers' foundation and then share their home and friends with the charismatic then-35-year-old whose current 95.5 percent Left-wing vote record made him The National Journal's "Most Liberal Senator In 2007?"


Friday October 10, 2008
Obama's Magic
Posted by: Iconoclast at 7:00AM CST on October 10, 2008

Return to the Article



Obama's Magic

By Kimberley Strassel

And now, America, we introduce the Great Obama! The world's most gifted political magician! A thing of wonder. A thing of awe. Just watch him defy politics, economics, even gravity! (And hold your applause until the end, please.)

To kick off our show tonight, Mr. Obama will give 95% of American working families a tax cut, even though 40% of Americans today don't pay income taxes! How can our star enact such mathemagic? How can he "cut" zero? Abracadabra! It's called a "refundable tax credit." It involves the federal government taking money from those who do pay taxes, and writing checks to those who don't. Yes, yes, in the real world this is known as "welfare," but please try not to ruin the show.

For his next trick, the Great Obama will jumpstart the economy, and he'll do it by raising taxes on the very businesses that are today adrift in a financial tsunami! That will include all those among the top 1% of taxpayers who are in fact small-business owners, and the nation's biggest employers who currently pay some of the highest corporate tax rates in the developed world. Mr. Obama will, with a flick of his fingers, show them how to create more jobs with less money. It's simple, really. He has a wand.

Next up, Mr. Obama will re-regulate the economy, with no ill effects whatsoever! You may have heard that for the past 40 years most politicians believed deregulation was good for the U.S. economy. You might have even heard that much of today's financial mess tracks to loose money policy, or Fannie and Freddie excesses. Our magician will show the fault was instead with our failure to clamp down on innovation and risk-taking, and will fix this with new, all-encompassing rules. Presto!

Did someone in the audience just shout "Sarbanes Oxley?" Usher, can you remove that man? Thank you. Mr. Obama will now demonstrate how he gives Americans the "choice" of a "voluntary" government health plan, designed in such a way as to crowd out the private market and eliminate all other choice! Don't worry people: You won't have to join, until you do. Mr. Obama will follow this with a demonstration of how his plan will differ from our failing Medicare program. Oops, sorry, folks. The Great Obama just reminded me it is time for an intermission. Maybe we'll get to that marvel later.

We're back now. And just watch the Great Obama perform a feat never yet managed in all history. He will create that enormous new government health program, spend billions to transform our energy economy, provide financial assistance to former Soviet satellites, invest in infrastructure, increase education spending, provide job training assistance, and give 95% of Americans a tax (ahem) cut -- all without raising the deficit a single penny! And he'll do it in the middle of a financial crisis. And with falling tax revenues! Voila!

Moving along to a little ventriloquism. Study his mouth carefully, folks: It looks like he's saying "I'll stop the special interests," when in fact the words coming out are "Welcome to Washington, friends!" Wind and solar companies, ethanol makers, tort lawyers, unions, community organizers -- all are welcome to feed at the public trough and to request special favors. From now on "special interests" will only refer to universally despised, if utterly crucial, economic players. Say, oil companies. Hocus Pocus!

And for tonight's finale, the Great Obama will uphold America's "moral" obligation to "stop genocide" by abandoning Iraq! While teleported to the region, he will simultaneously convince Iranian leaders to peacefully abandon their nuclear pursuits (even as he does not sit down with them), fix Afghanistan with a strategy that does not resemble the Iraqi surge, and (drumroll!) pull Osama bin Laden out of his hat!

Tada!

You can clap now. (Applause. Cheers.) We'd like to thank a few people in the audience. Namely, Republican presidential nominee John McCain, who has so admirably restrained himself from running up on stage to debunk any of these illusions and spoil everyone's fun.

We know he's in a bit of a box, having initially blamed today's financial crisis on corporate "greed," and thus made it that much harder to call for a corporate tax cut, or warn against excessive regulation. Still, there were some pretty big openings up here this evening, and he let them alone! We'd also like to thank Mr. McCain for keeping all the focus on himself these past weeks. It has helped the Great Obama to just get on with the show.

As for that show, we'd love to invite you all back for next week's performance, when the Great Obama will thrill with new, amazing exploits. He will respect your Second Amendment rights even as he regulates firearms! He will renegotiate Nafta, even as he supports free trade! He will .

Ms. Strassel is a member of The Wall Street Journal's editorial board.


Tuesday October 7, 2008
Do Facts Matter?
Posted by: Iconoclast at 8:30PM CST on October 7, 2008

Do Facts Matter?

By Thomas Sowell





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http://www.JewishWorldReview.com | Abraham Lincoln said, "You can fool all the people some of the time and some of the people all the time, but you can't fool all the people all the time."


Unfortunately, the future of this country, as well as the fate of the Western world, depends on how many people can be fooled on election day, just a few weeks from now.


Right now, the polls indicate that a whole lot of the people are being fooled a whole lot of the time.


The current financial bailout crisis has propelled Barack Obama back into a substantial lead over John McCain— which is astonishing in view of which man and which party has had the most to do with bringing on this crisis.


It raises the question: Do facts matter? Or is Obama's rhetoric and the media's spin enough to make facts irrelevant?


Fact Number One: It was liberal Democrats, led by Senator Christopher Dodd and Congressman Barney Frank, who for years— including the present year— denied that Fannie Mae and Freddie Mac were taking big risks that could lead to a financial crisis.


It was Senator Dodd, Congressman Frank and other liberal Democrats who for years refused requests from the Bush administration to set up an agency to regulate Fannie Mae and Freddie Mac.


It was liberal Democrats, again led by Dodd and Frank, who for years pushed for Fannie Mae and Freddie Mac to go even further in promoting subprime mortgage loans, which are at the heart of today's financial crisis.


Alan Greenspan warned them four years ago. So did the Chairman of the Council of Economic Advisers to the President. So did Bush's Secretary of the Treasury, five years ago.


Yet, today, what are we hearing? That it was the Bush administration "right-wing ideology" of "de-regulation" that set the stage for the financial crisis. Do facts matter?


We also hear that it is the free market that is to blame. But the facts show that it was the government that pressured financial institutions in general to lend to subprime borrowers, with such things as the Community Reinvestment Act and, later, threats of legal action by then Attorney General Janet Reno if the feds did not like the statistics on who was getting loans and who wasn't.


Is that the free market? Or do facts not matter?


Then there is the question of being against the "greed" of CEOs and for "the people." Franklin Raines made $90 million while he was head of Fannie Mae and mismanaging that institution into crisis.


Who in Congress defended Franklin Raines? Liberal Democrats, including Maxine Waters and the Congressional Black Caucus, at least one of whom referred to the "lynching" of Raines, as if it was racist to hold him to the same standard as white CEOs.


Even after he was deposed as head of Fannie Mae, Franklin Raines was consulted this year by the Obama campaign for his advice on housing!


The Washington Post criticized the McCain campaign for calling Raines an adviser to Obama, even though that fact was reported in the Washington Post itself on July 16th. The technicality and the spin here is that Raines is not officially listed as an adviser. But someone who advises is an adviser, whether or not his name appears on a letterhead.


The tie between Barack Obama and Franklin Raines is not all one-way. Obama has been the second-largest recipient of Fannie Mae's financial contributions, right after Senator Christopher Dodd.


But ties between Obama and Raines? Not if you read the mainstream media.


Facts don't matter much politically if they are not reported.


The media alone are not alone in keeping the facts from the public. Republicans, for reasons unknown, don't seem to know what it is to counter-attack. They deserve to lose.


But the country does not deserve to be put in the hands of a glib and cocky know-it-all, who has accomplished absolutely nothing beyond the advancement of his own career with rhetoric, and who has for years allied himself with a succession of people who have openly expressed their hatred of America.


Sunday October 5, 2008
The Friends Obama Keeps - Part 1
Posted by: Iconoclast at 12:13AM CST on October 5, 2008
 Obama was hired by Bill Ayers to head the failed Annenberg Challenge, an effort to promote radicalism in Chicago's public schools.  According to records of the board meetings of the project, Ayers and Obama worked together closely.  Obama launched his political career with an event held at Ayers' home, a half block from Obama's Hyde Park mansion.

Who is Obama's friend and patron William Ayers?  This article, published in the New York Times on September 11th, 2001 tells us a little about the kind of person Obama chooses to surround himself with.

 


September 11, 2001

No Regrets for a Love Of Explosives; In a Memoir of Sorts, a War Protester Talks of Life With the Weathermen

''I don't regret setting bombs,'' Bill Ayers said. ''I feel we didn't do enough.'' Mr. Ayers, who spent the 1970's as a fugitive in the Weather Underground, was sitting in the kitchen of his big turn-of-the-19th-century stone house in the Hyde Park district of Chicago. The long curly locks in his Wanted poster are shorn, though he wears earrings. He still has tattooed on his neck the rainbow-and-lightning Weathermen logo that appeared on letters taking responsibility for bombings. And he still has the ebullient, ingratiating manner, the apparently intense interest in other people, that made him a charismatic figure in the radical student movement.

Now he has written a book, ''Fugitive Days'' (Beacon Press, September). Mr. Ayers, who is 56, calls it a memoir, somewhat coyly perhaps, since he also says some of it is fiction. He writes that he participated in the bombings of New York City Police Headquarters in 1970, of the Capitol building in 1971, the Pentagon in 1972. But Mr. Ayers also seems to want to have it both ways, taking responsibility for daring acts in his youth, then deflecting it.

''Is this, then, the truth?,'' he writes. ''Not exactly. Although it feels entirely honest to me.''

But why would someone want to read a memoir parts of which are admittedly not true? Mr. Ayers was asked.

''Obviously, the point is it's a reflection on memory,'' he answered. ''It's true as I remember it.''

Mr. Ayers is probably safe from prosecution anyway. A spokeswoman for the Justice Department said there was a five-year statute of limitations on Federal crimes except in cases of murder or when a person has been indicted.

Mr. Ayers, who in 1970 was said to have summed up the Weatherman philosophy as: ''Kill all the rich people. Break up their cars and apartments. Bring the revolution home, kill your parents, that's where it's really at,'' is today distinguished professor of education at the University of Illinois at Chicago. And he says he doesn't actually remember suggesting that rich people be killed or that people kill their parents, but ''it's been quoted so many times I'm beginning to think I did,'' he said. ''It was a joke about the distribution of wealth.''

He went underground in 1970, after his girlfriend, Diana Oughton, and two other people were killed when bombs they were making exploded in a Greenwich Village town house. With him in the Weather Underground was Bernardine Dohrn, who was put on the F.B.I.'s 10 Most Wanted List. J. Edgar Hoover called her ''the most dangerous woman in America'' and ''la Pasionara of the Lunatic Left.'' Mr. Ayers and Ms. Dohrn later married.

In his book Mr. Ayers describes the Weathermen descending into a ''whirlpool of violence.''

''Everything was absolutely ideal on the day I bombed the Pentagon,'' he writes. But then comes a disclaimer: ''Even though I didn't actually bomb the Pentagon -- we bombed it, in the sense that Weathermen organized it and claimed it.'' He goes on to provide details about the manufacture of the bomb and how a woman he calls Anna placed the bomb in a restroom. No one was killed or injured, though damage was extensive.

Between 1970 and 1974 the Weathermen took responsibility for 12 bombings, Mr. Ayers writes, and also helped spring Timothy Leary (sentenced on marijuana charges) from jail.

Today, Mr. Ayers and Ms. Dohrn, 59, who is director of the Legal Clinic's Children and Family Justice Center of Northwestern University, seem like typical baby boomers, caring for aging parents, suffering the empty-nest syndrome. Their son, Malik, 21, is at the University of California, San Diego; Zayd, 24, teaches at Boston University. They have also brought up Chesa Boudin, 21, the son of David Gilbert and Kathy Boudin, who are serving prison terms for a 1981 robbery of a Brinks truck in Rockland County, N.Y., that left four people dead. Last month, Ms. Boudin's application for parole was rejected.

So, would Mr. Ayers do it all again, he is asked? ''I don't want to discount the possibility,'' he said.

''I don't think you can understand a single thing we did without understanding the violence of the Vietnam War,'' he said, and the fact that ''the enduring scar of racism was fully in flower.'' Mr. Ayers pointed to Bob Kerrey, former Democratic Senator from Nebraska, who has admitted leading a raid in 1969 in which Vietnamese women and children were killed. ''He committed an act of terrorism,'' Mr. Ayers said. ''I didn't kill innocent people.''

Mr. Ayers has always been known as a ''rich kid radical.'' His father, Thomas, now 86, was chairman and chief executive officer of Commonwealth Edison of Chicago, chairman of Northwestern University and of the Chicago Symphony. When someone mentions his father's prominence, Mr. Ayers is quick to say that his father did not become wealthy until the son was a teenager. He says that he got some of his interest in social activism from his father. He notes that his father promoted racial equality in Chicago and was acceptable as a mediator to Mayor Richard Daley and the Rev. Dr. Martin Luther King Jr. in 1966 when King marched in Cicero, Ill., to protest housing segregation.

All in all, Mr. Ayers had ''a golden childhood,'' he said, though he did have a love affair with explosives. On July 4, he writes, ''my brothers and I loved everything about the wild displays of noise and color, the flares, the surprising candle bombs, but we trembled mostly for the Big Ones, the loud concussions.''

The love affair seems to have continued into adulthood. Even today, he finds ''a certain eloquence to bombs, a poetry and a pattern from a safe distance,'' he writes.

He attended Lake Forest Academy in Lake Forest, Ill., then the University of Michigan but dropped out to join Students for a Democratic Society.

In 1967 he met Ms. Dohrn in Ann Arbor, Mich. She had a law degree from the University of Chicago and was a magnetic speaker who often wore thigh-high boots and miniskirts. In 1969, after the Manson family murders in Beverly Hills, Ms. Dohrn told an S.D.S. audience: ''Dig it! Manson killed those pigs, then they ate dinner in the same room with them, then they shoved a fork into a victim's stomach.''

In Chicago recently, Ms. Dohrn said of her remarks: ''It was a joke. We were mocking violence in America. Even in my most inflamed moment I never supported a racist mass murderer.''

Ms. Dohrn, Mr. Ayers and others eventually broke with S.D.S. to form the more radical Weathermen, and in 1969 Ms. Dohrn was arrested and charged with resisting arrest and assaulting a police officer during the Days of Rage protests against the trial of the Chicago Eight -- antiwar militants accused of conspiracy to incite riots at the 1968 Democratic National Convention.

In 1970 came the town house explosion in Greenwich Village. Ms. Dohrn failed to appear in court in the Days of Rage case, and she and Mr. Ayers went underground, though there were no charges against Mr. Ayers. Later that spring the couple were indicted along with others in Federal Court for crossing state lines to incite a riot during the Days of Rage, and following that for ''conspiracy to bomb police stations and government buildings.'' Those charges were dropped in 1974 because of prosecutorial misconduct, including illegal surveillance.

During his fugitive years, Mr. Ayers said, he lived in 15 states, taking names of dead babies in cemeteries who were born in the same year as he. He describes the typical safe house: there were usually books by Malcolm X and Ho Chi Minh, and Che Guevara's picture in the bedroom; fermented Vietnamese fish sauce in the refrigerator, and live sourdough starter donated by a Native American that was reputed to have passed from hand to hand over a century.

He also writes about the Weathermen's sexual experimentation as they tried to ''smash monogamy.'' The Weathermen were ''an army of lovers,'' he says, and describes having had different sexual partners, including his best male friend.

''Fugitive Days'' does have moments of self-mockery, for instance when Mr. Ayers describes watching ''Underground,'' Emile De Antonio's 1976 documentary about the Weathermen. He was ''embarrassed by the arrogance, the solipsism, the absolute certainty that we and we alone knew the way,'' he writes. ''The rigidity and the narcissism.''

In the mid-1970's the Weathermen began quarreling. One faction, including Ms. Boudin, wanted to join the Black Liberation Army. Others, including Ms. Dohrn and Mr. Ayers, favored surrendering. Ms. Boudin and Ms. Dohrn had had an intense friendship but broke apart. Mr. Ayers and Ms. Dohrn were purged from the group.

Ms. Dohrn and Mr. Ayers had a son, Zayd, in 1977. After the birth of Malik, in 1980, they decided to surface. Ms. Dohrn pleaded guilty to the original Days of Rage charge, received three years probation and was fined $1,500. The Federal charges against Mr. Ayers and Ms. Dohrn had already been dropped.

Mr. Ayers and Ms. Dohrn tried to persuade Ms. Boudin to surrender because she was pregnant. But she refused, and went on to participate in the Brink's robbery. When she was arrested, Ms. Dohrn and Mr. Ayers volunteered to care for Chesa, then 14 months old, and became his legal guardians.

A few months later Ms. Dohrn was called to testify about the robbery. Ms. Dohrn had not seen Ms. Boudin for a year, she said, and knew nothing of it. Ms. Dohrn was asked to give a handwriting sample, and refused, she said, because the F.B.I. already had one in its possession. ''I felt grand juries were illegal and coercive,'' she said. For refusing to testify, she was jailed for seven months, and she and Mr. Ayers married during a furlough.

Once again, Chesa was without a mother. ''It was one of the hardest things I did,'' said Ms. Dohrn of going to jail.

In the interview, Mr. Ayers called Chesa ''a very damaged kid.'' ''He had real serious emotional problems,'' he said. But after extensive therapy, ''became a brilliant and wonderful human being.'' .

After the couple surfaced, Ms. Dohrn tried to practice law, taking the bar exam in New York. But she was turned down by the Bar Association's character committee because of her political activities.

Ms. Dohrn said she was aware of the contradictions between her radical past and the comforts of her present existence. ''This is where we raised our kids and are taking care of our aging parents,'' she said. ''We could live much more simply, and well we might.''

And as for settling into marriage after efforts to smash monogamy, Ms. Dohrn said, ''You're always trying to balance your understanding of who you are and what you need, and your longing and imaginings of freedom.''

''Happily for me, Billy keeps me laughing, he keeps me growing,'' she said.

Mr. Ayers said he had some of the same conflicts about marriage. ''We have to learn how to be committed,'' he said, ''and hold out the possibility of endless reinventions.''

As Mr. Ayers mellows into middle age, he finds himself thinking about truth and reconciliation, he said. He would like to see a Truth and Reconciliation Commission about Vietnam, he said, like South Africa's. He can imagine Mr. Kerrey and Ms. Boudin taking part.

And if there were another Vietnam, he is asked, would he participate again in the Weathermen bombings?

By way of an answer, Mr. Ayers quoted from ''The Cure at Troy,'' Seamus Heaney's retelling of Sophocles' ''Philoctetes:'' '' 'Human beings suffer,/ They torture one another./ They get hurt and get hard.' ''

He continued to recite:

History says, Don't hope

On this side of the grave.

But then, once in a lifetime

The longed-for tidal wave

Of justice can rise up

And hope and history rhyme.

Thinking back on his life , Mr. Ayers said, ''I was a child of privilege and I woke up to a world on fire. And hope and history rhymed.''

Saturday October 4, 2008
Obama Speech in 2007: Obama says sub-prime mortgages that gave houses to people WHO COULDN'T AFFORD THEM were a GOOD IDEA!!
Posted by: Iconoclast at 6:47PM CST on October 4, 2008
Thursday October 2, 2008
More from RUSD Guest Speaker Cynthia McKinney
Posted by: Iconoclast at 10:15PM CST on October 2, 2008

This is the same nutcase who thinks her own government - our own soldiers - perpetrated 9/11.  This is the same nutcase that Racine Unified seems to think makes an appropriate guest speaker - a lunatic fringe candidate spewing hate-filled conspiracy theories.

 

McKinney Accuses Government of Slaughtering Prisoners, Dumping Bodies During Katrina

WASHINGTON: Green Party presidential candidate Cynthia McKinney claims the Department of Defense executed 5,000 prisoners with one bullet to the head and then dumped their bodies in a Louisiana swamp during Hurricane Katrina.

FOXNews.com

Thursday, October 02, 2008

Green Party presidential candidate Cynthia McKinney, known for her provocative statements when she was a congresswoman from Georgia, accused the Department of Defense this week of using Hurricane Katrina to cover up the slaughter of 5,000 prisoners.

At a news conference in Oakland, Calif., on Sunday, McKinney claimed the Pentagon authorized the execution of the prisoners with one bullet to the head three years ago and then dumped their bodies in a Louisiana swamp.

McKinney said she heard the story from the mother of a National Guard soldier who said her son was assigned to help dispose of the bodies.

"And these were mostly males and her son was afraid to talk because he had signed a silence agreement," McKinney told the crowd. "So he only complained to his mother. But the data was entered into a Pentagon computer."

McKinney said she verified the story from "insiders" who wanted to remain anonymous.

"I suspect that these are prisoners. ... So this investigation of the whole prison industrial complex is extremely important and it should not end with just a question of the nature of prisons in our country," she said to a captivated audience. "These 5,000 souls also need some justice too."

A Defense Department spokesman dismissed McKinney's accusation.

"The claim is outrageous on the very face of it and doesn't merit any further consideration," said  Lt. Col. Les' Melnyk. "It would be inconceivable that 5,000 people would go missing in America without anyone noticing it prior to this."

Psychologists and psychology professors contacted by FOXNews.com wouldn't comment on McKinney's mental condition, but they expressed shock at her assertion.

"Wow! What a conspiracy theory," one professor exclaimed before declining comment and hanging up the phone.

Dr. Celia Ward, a clinical psychologist in Washington, D.C., said she wouldn't speculate on McKinney's state of mind because McKinney heard the story from someone else.

"This sounds like a game of telephone," Ward said, explaining how a rumor can change as it passes from one person to another. "But to take something that has so many questions attached to it and to treat a rumor as fact is the basis for mass distortion. It's really a good example of Swift-boating."

Ward said McKinney could have easily verified the story by checking prison records.

"This is the kind of rumor that warrants fact-checking," she said.

McKinney's presidential campaign did not respond to a request for comment.

A member of the House for 12 years until 2007, McKinney is no stranger to controversy. Shortly after the Sept. 11, 2001, terrorist attacks, she suggested that President Bush knew about the plot in advance but failed to warn Americans because of his father's business interests. Some political analysts say that statement contributed to her defeat in 2002.

After McKinney was re-elected in 2004, she tried to impeach Bush, Vice President Cheney and Secretary of State Condoleezza Rice on charges that they lied and manipulated intelligence to justify the war in Iraq.

McKinney hit a career low point in 2006 when she was accused of striking a Capitol Police officer who grabbed her after she passed a security checkpoint without wearing a congressional lapel pin. She later apologized for the incident. She was defeated in a Democratic primary later that year and left the Democratic Party in 2007. She was nominated in July to run for president on the Green Party ticket. There are 245 other Green Party candidates running for office this fall.

Click here to watch Cynthia McKinney charge that 5,000 people were executed by the Pentagon


Wednesday October 1, 2008
What Caused the Financial Crisis?
Posted by: Iconoclast at 6:32AM CST on October 1, 2008

 You should watch this video:  http://www.youtube.com/watch?v=sIrzlFYaSks


Wrecks, Lies and Barney Frank

By Marc Sheppard
Democrats have a lot to hide about their role in creating the current financial crisis and are doing their best to appear blameless with charges directed elsewhere.

Within hours of the fall of their affirmative-action-lending-policies house-of-cards, they rose united to wag accusing fingers at Wall-Street greed and the failures of an unregulated free market.  And even as new transcripts and videos surface daily revealing an irrefutable connect to a decades-old liberal push to increase availability of home mortgages to high-risk minority borrowers, the counterfeit clarion call against "predatory" capitalism continues.   This fraudulent tactic is meant to not only exonerate accountable Democrats -- and one Massachusetts congressman particularly -- but to provide them cover to insist the same quixotic liberalism fueling the problem be included in any government-sanctioned solution.

Did you notice that during Monday's debate over H.R. 3997, the failed Emergency Economic Stabilization Act of 2008, Democrats spoke often of strengthening both regulation and oversight, yet mentioned nothing of illiquid debt, government coerced or not?  Or that some, including the House Speaker, promised the guilty will ultimately suffer the wrath of House Oversight and Government Reform Committee chairman Henry Waxman?  How about the incongruity of those crying for justice and then thanking Barney Frank for reputedly making workable a bill originally delivered to him otherwise?  Even Pelosi's obscenely partisan post-debate speech, which may have hammered the final nail into the Bill's coffin with its inopportune and wrath-filled Bush and Wall Street bashing, included a salute to the "extraordinary leadership" of the Massachusetts Democrat she was about to throw under the bus.

This was politics at its very worst, softening the blow they were about to strike against the Bush-backed Bill its House Democrat champion had all but staked his reputation on, while simultaneously spreading the same fertilizer Frank is using to rewrite his (and, of course, his party's) culpability engraved within the debacle's history.  And Frank is spreading it wherever, whenever and however he can.

Indeed, the list of blameworthy Democrats is long and distinguished.  However, Frank's recent thin-skinned written and spoken admonishments to those daring to confront previous related actions and statements betray a man whose hands may be deeper into this fiasco than any other sitting politician's. 

Barney and Friends

As prelude to Monday's vote, Barney appeared on C-SPAN's Washington Journal Sunday morning purportedly to discuss the modified Bill.  For a while, he actually managed to remain on point.

But then a caller challenged Frank's continued insistence that the meltdown was brought on by Republican deregulation, citing the 1999 NY Times article concerning Clinton Administration efforts to force Fannie to ease mortgage standards in order to provide more minority and lower-income lending. The caller reminded Barney of his own words as ranking member from a 2003 Times piece reporting Bush's initiative to reign in Fannie and Freddie by creating new oversight under the Treasury Department:

''These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis. The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.''   

Recognizing the now-familiar accusation that he supported bad loans for the advancement of minority home ownership, Frank flew into a rambling tirade, blaming a right-wing-blogger conspiracy working to wrongly paint the good guy Democrats as the bad guys.  As advocates of complete deregulation, he roared, "the Conservatives were very embarrassed."  Adding that the "right-wingers" had left out that:

"Republicans were in control of the Congress from 1995 until 2006.  They got a lot through -- they got the Iraq war through; they got the Patriot Act through; they got tax cuts for the wealthy, a prescription drug program .....  But in twelve years, they never got a bill through the Congress to tighten up the regulation of Fannie Mae and Freddy Mac.

"I became chairman of the committee that has jurisdiction in February of 2007.  Within two months, the committee had passed a bill that did all of the increased regulation that the Bush Administration ever wanted.  I was a supporter of the regulation, but the Bush Administration couldn't get it through Congress. When the Democrats took over Congress, we passed exactly that regulation, and while the Senate didn't do it until July of this year, here's the record: Twelve years of Republican control, no legislation to increase the regulation of Fannie Mae and Freddy Mac.  Nineteen months of the Democrats, and we have done it."

That's been Frank's stock response whenever his glaring complicity is underscored, be it in the blogosphere or by the few news agencies willing to hold his feet to the fire [Must see Fox News Video]. 

You've likely already heard it a dozen times or more.

But you may not have heard that last week, Rep. Michele Bachmann (R-Minn) wrote an op-ed for her state's Star Tribune, also blaming misguided liberal policies for the mess:

"The recklessness of government is a primary culprit here. For years, Congress has been pushing banks to make risky, subprime loans. Using the authority of the Community Reinvestment Act, the big push for subprime mortgages began in earnest during the Clinton years. Banks that didn't play ball were subject to serious fines and lawsuits, and regulatory obstacles were placed in their way. While expanding access to the American Dream is a worthy goal, by blindly pursuing that goal and allowing the end to justify any means, we put millions of Americans at financial risk."

She then went on to specifically blame Congressional leaders, singling out her own committee chairman, Barney Frank, who "resisted reforming Fannie and Freddie at every turn."

Frank somehow found time in his busy schedule to submit a rebuttal to Bachmann's words, claiming in its title that Republicans set the table for this crisis and again insisting:

"The truth is that the Republicans failed in every year of their 12-year hold on Congress to create a strong, independent regulator to oversee Fannie and Freddie. And despite their rhetoric, the Bush administration also failed to enact strong regulation in the first seven years of its tenure."

I repeat -- Barney has sung this same tune virtually every time in the past few weeks he found an audience willing to listen.

But the congressman's continual karaoke resonates painfully off key.

Let's be perfectly Frank

In truth, the Bill that would have likely averted the Fannie/Freddy failure -- the Federal Housing Enterprise Regulatory Reform Act of 2005 (S. 190) -- was Republican legislation introduced by Sen. Charles Hagel [R-NE] in January of 2005.  And it was the Democrats who opposed it in committee, fearing that its restrictions and portfolio caps might impair mortgage market liquidity, and subsequently, affordable housing.  Despite the "nay" votes of all 9 Democrats on the Senate Committee on Banking, Housing, and Urban Affairs, the bill moved to the Senate floor, where it died in limbo lacking a filibuster-proof majority.  The Bill was reintroduced in the 110th Congress as S. 1100, but was kept on ice by committee chairman Chris Dodd, who, coincidently, received $133,900 in grease from Fannie and Freddie over the past decade.

What's more, the "regulation" Frank now takes credit for was not his (H.R.1427 passed the House last year but never escaped Senate committee) but rather Nancy Pelosi's (H.R. 3221 - The Housing and Economic Recovery Act of 2008). And Pelosi's version, not surprisingly and unlike its Republican predecessors, was signed marked up with over 66 pages of Liberal wealth redistribution wish-fulfillment under the guise of assuring "affordable housing."  While it did establish (and way too late, Barney) the Federal Housing Finance Agency, with regulatory authority over Fannie Mae, Freddie Mac, the Federal Home Loan Banks, and the Office of Finance, it's bogged down with tons of pork-fat. This oinker even increased the national debt limit from $9.82 trillion to $10.62 trillion, and commissioned a boatload of programs for low income families to spend it on.

Frank did, however, introduce legislation of his own in October of last year. Would you believe that H.R. 3838 was actually an attempt to temporarily increase the caps on Fannie/Freddie portfolios and to mandate the "use of 85% of such increase for refinancing subprime mortgages at risk of foreclosure?"

Funny how the congressman neglected to mention that when he assured another C-SPAN caller that:

"Yes, I did want to help affordable housing, but I also wanted to prevent bad loans."

Simply hilarious, especially considering the joyous September 18th 2007 announcement on the congressman's own website that Maxine Waters' H.R.1852 had passed the House.  As proudly emphasized by co-sponsor Frank at the time, the Bill authorized "zero and lower down payment loans for borrowers that can afford mortgage payments, but lack the cash for a required down payment."  It also "more than doubled" funding to counsel "subprime homebuyers and borrowers late on mortgage loan payments" and directed the FHA "to provide mortgage loans to higher risk (but qualified) borrowers, without authorizing unnecessary fee hikes on such borrowers." It also raised "FHA single family loan limits, which now bar loans above 95% of the median home price in each local area and shut FHA out of higher cost home markets."

That was last year.  Four years after the Bush Administration had sounded the alarm.  Yet, shortly after his C-SPAN appearance last Sunday, Frank responded to the Boston Herald questioning his awful projections of half a decade ago with "in 2003, nobody that I knew of foresaw the crisis of subprime lending, and that is what caused this problem."   

Does anybody really believe that the chairman of Financial Services somehow fails to understand the ingredients of the bad loans that have created all of the toxic paper at the root of this problem?

Frankly My Dear, They Don't Give a Damn (Unless, Of Course, You're Destitute)

The Democrats' campaign to sully the President and Conservative fiscal policies is a childish ruse to shield their own failed politically correct credit ideology. And their shockingly deceitful insistence that it was they who foresaw peril and championed regulation is equally sophomoric.

Yet without acceptance, there can be no transcendence. 

Not only was their so-called "regulation" Bill loaded with the same irresponsible disregard for reality that created the need to regulate in the first place, but they continue to inject their disastrous PC claptrap into all attempts to remedy the nightmare they have created.

On September 9th, The Wall Street Journal pointed out that when asked about the bailout condition which would force Fannie/Freddie to "reduce the size of their high-risk mortgage-backed securities portfolios starting in 2010," Frank responded "‘Good luck on that,' and that it would never happen."  The Journal also reported that Frank had coerced the creation of an "affordable housing" trust fund in backing the bailout, stating that:

"This fund siphons off a portion of Fannie and Freddie profits -- as much as $500 million a year each -- to a fund that politicians can then disburse to their favorite special interests."

Frank took issue and again found time to submit a rebuttal, again taking bizarre bows for July's too-little-too-late legislation, and referred to WSJ writers as "right-wing ideologues" who believe that "funding to build affordable residential housing is ‘loot.'"

Of course, he's not the only left-wing-nutjob in town that just doesn't get that some people simply do not earn enough to be homeowners - precisely the reason rentals exist.

On Tuesday morning's Morning Joe on MSNBC, Majority Whip Jim Clyburn (D-SC) announced that the Congressional Black Caucus voted against the measure largely because it didn't include bankruptcy protection for homeowners.  The CBC backs a fantasy-land proposal that would allow bankruptcy judges to unilaterally restructure home mortgages for those facing bankruptcy.

During Pelosi's poison-Bill speech on Monday, she blamed "failed economic policies -- policies built on budgetary recklessness, on an anything goes mentality, with no regulation, no supervision, and no discipline in the system."  Actually, the Speaker was right on the money describing the policies that precipitated this credit wreck.  

But she couldn't have been more wrong in her choice of targets at which to aim her rage.  





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