Sunday, December 21, 2008

The new version of the old "New Deal" aka insanity making a comeback.

Insanity is continuously trying to do something that has been proven not to work over and over again yet expecting different result every time it's tried. The Obama idol worshiping loyalists continue to believe that Obama is very smart. If Obama is indeed as smart as they claim, why doesn't "the messiah" Obama understand the old passage of history? The passage is, "Those who don't learn from history are doomed to repeat it". The faithful became very upset when people referred to Obama as a socialist during the campaign. These very same people that were upset are about to get a lesson in real time on how much Obama is indeed a socialist and why his economic blue print from decades past is going to blow up in their faces. Franklin Dalino Roosevelt was sworn into office as President in the fall of 1932. He won in a landslide over President Herbert Hoover. The first lesson that needs to be made is that Presidents normally keep or lose their job based on the people's perception of how the economy is doing. That is the real reason why Obama won the election. Anyways when FDR took office, the great depression was already in it's four year. FDR believed that the federal government had the power to get the country out of the Great Depression. FDR enacted the banking reform laws, emergency relief programs, work relief programs, and agricultural programs. All of these socialist programs did nothing to address the problem of the economy. Many historians and economists say that it was because of FDR and his "New Deal" policies that the Great Depression was prolonged longer then it had too. Obama is going to make the same classic mistake FDR made, he's going to put his faith in government as the solution to fixing the economy instead of the free market system. Let me ask you all some questions. Can a beta tape work in a dvd player? Can a car that requires 93 octane premium gas run on 89 octane regular? The answers of course to both questions are no. Obama wants to emulate FDR in having the government to create construction jobs and build roads. On the surface it sounds good, but it was a stupid idea then and a stupid idea now. Government can't be the primary employer of a country. The economic system could never sustain itself for starters, and that country could never promote innovation and diversification to create a broad sector economic class. Let me try it a different way. Obama wants to " save OR create 2.5 million jobs" primarily in road construction, building schools etc. This is the same thing FDR did back during his time. The question should be blaring. How could FDR maintain or reverse job loses like Obama wants to do if the government is putting importance on one sector of the economy while the rest of the sectors continued to fail? Our country has way more the "2.5 million workers" spread out among several dozen different fields and professions. FDR wanted to try and fix the problem from the bottom up, when the cure was to let the free market systems work themselves out on their own. Another lesson that Obama could have learned from was with the Japanese Banking collapse during the ninety's. The Japanese Banks were buying up a lot of Real Estate in America during the 80's, when the U.S economy went into recession in the early 90's, the Real Estate downturn had an adverse impact on Japanese banks. The Japanese Government acted the exact same way our government is acting now during this banking/credit crisis. The Japanese Government tried to prop up bad banks and wouldn't let them fail. I'm sure you all heard the loud mouths in congress say that certain companies like AIG, Citi group and the big three auto companies were " TOO BIG TO FAIL" so they bailed them out. Originally the Secretary of the Treasury Henry Paulson who by the way is a liberal Democrat originally said, he was going to use the $700 billion dollar TARP fund to buy up the bad sub prime mortgages from the banks and lending institution. This would have ridden the bad loans off the bank's books and also freed up capital for the banks to lend out thus "thawing the credit market. Paulson didn't use the TARP money for it's intended purpose, he has used the money to bailout companies instead. So now as I type this, half of the $700 billion is gone and the bad paper mortgages are still clogging the credit markets. Like FDR, Obama would never let bad companies go under especially if they are companies with unions. If banks were allowed to fail, the bad mortgages of those banks would have to be written down in value until it would become attractive for investors or other rival banks to buy those mortgages. The end result would be the freeing up of the credit markets and no tax payer money would be needed. A body has the ability to heal itself in many ways, sometimes man can cause more damage then good by letting nature take care of itself. This is why Obama's New Deal version 2.0 is destine to fail and fail miserably. Obama will never learn that government tends to prolong problems and rarely fixes them. Japan and FDR are historical facts of that.


Blogger Pamela said...

I have a feeling that HR John Sullivan and Senator Tom Coburn may lose their seats in 2010. Both of them voted for the bailout and stated at the time that they did not know if it would work. Senator Jim Inhofe voted against is and is screaming right now because of the bait and switch. I believe he has a bill pending to try and reverse this.

If Obama does not change his mind true conservatives will probably will probably will the majority of the elections. Hopefully he will change his mind along with Congress. If not we will watch the show unfold. Maybe he will keep his word and consult with those that he may not see eye to eye with, especially about the economy.

Anyone that has had dealings with the government knows that it is not the most effective place to get problems solved in a timely manner. I am still amazed that he would even suggest a New Deal type solution and people actually rejoicing over this when it failed miserably before.

6:00 PM  
Blogger conservative brother said...

pamela "I have a feeling that HR John Sullivan and Senator Tom Coburn may lose their seats in 2010. Both of them voted for the bailout and stated at the time that they did not know if it would work."

They deserve to lose in 2010 pamela.Giving money to weak banks and financial institutions that are holding tens of billions of dollars worth of bad paper is beyond stupid, For them to say they don't know if it would work says that they aren't fiscal conservatives and don't believe truly in free market capitalism. The remaining Republicans in both the house and senate would be wise to read the tea leaves from their voters if they want to keep their jobs in two years. I don't think Obama will change his mind, even though it would only benefit him if he did. He owes so many favors to the ultra liberal special interest groups, he couldn't go mainstream economically if he wanted too. The green jobs ploy he keeps talking about is payback to the mental environmental nuts. Eliminating the secret ballot process as well as saving the big three is payback for the unions and much more. Pamela, all I can say is keep a close eye the valuation of the U.S dollar. I have a strong feeling that next year the dollar will start to sink in value due to the amount of debt and continuous debt that our country is taking on.

pamela "Anyone that has had dealings with the government knows that it is not the most effective place to get problems solved in a timely manner. I am still amazed that he would even suggest a New Deal type solution and people actually rejoicing over this when it failed miserably before."

lol, you can say that again pamela and then some lol. The reason why people are rejoicing over it is because most people are functional illiterates, and they have no idea that the New Deal under FDR didn't work in getting the United States out of the Great Depression. To their credit Pamela, they don't know that Obama is historic and they know who won the last five American Idols contests. lol It's basically a lock that the economy is going to be worse in four years then it is now. Even Obama is now saying the recovery is year(s) away not months.

Obama "It will take longer than any of us would like — years, not months. It will get worse before it gets better"

This puts Obama in a very ticklish situation. Most of the people that elected him expect him to turn this economy around on. Obama ran stating that he had the silver bullet to do it. Now that he is safely elected, now he's down playing people's expectations of him. What ever happened to Obama's rallying chant of "yes we can"? Obama suckered his voters pamela using the economy as a carrot on a string. It was the same strategy that Democrats used with Iraq in 2006 in part to gain control of congress. The real question will be pamela is how much pain and suffering are the true Obama faithful willing to endore before finally abandoning Obama when the economy don't turn around by 2012?

8:58 PM  
Blogger Pamela said...

Senator Coburn was one that pretty much was one of the most fiscally conservative senators there. This is why so many of us cringed when he voted for this madness. We lovingly refer to him as Dr. No. John Sullivan was a staunch supporter of Medicare Plan D. This is the only thing that I can remember that he supported that I feel was probably a huge tax grab.

I do not know if Coburn will run again. This will be his second term in the Senate. He only served three terms as a HR before taking a break. He is an ob/gyn so he has something to go back to. I do not remember if he said that he would only serve two terms in the Senate. He did keep his promise in only serving three terms in the House. Sullivan may be a bit more vulnerable than Coburn. Inhofe has written legislation that would reverse of of this madness. I think if Sullivan and Coburn support similar legislation they will probably be forgiven. I'm sure both of them regret their votes.

2010 will be interesting indeed here in OK.

I forgot about Obama's comments about how long it will take for the economy to recover. He is in a bad situation since he promised the moon.

11:00 AM  
Blogger JMK said...

"Many historians and economists say that it was because of FDR and his "New Deal" policies that the Great Depression was prolonged longer then it had too." Tyrone)
That is very true. FDR's government expansion deepened and prolonged the Depression and it was WW II, NOT any federal social programs that ended the Great Depression.

But what fewer people realize is that Herbert Hoover was far from a free market advocate himself. In fact, Hoover himself, was a great believer in the Efficiency Movement (a major component of the Progressive Era), arguing that a scientific/technical solution existed for every social and economic problem. That movement sprang from the failed and idiotic movement called "Scientific Socialism."

During his tenure, Hoover expanded civil service coverage of Federal positions, canceled private oil leases on government lands, and by instructing the Justice Department and the Internal Revenue Service to go after gangsters for tax evasion.

In 1931, then President Hoover, urged the major banks in the country to form a consortium known as the National Credit Corporation (NCC). Hoover encouraged the member banks of the NCC to provide loans to smaller banks in order to prevent them from collapsing. Unfortunately, the banks within the NCC were often reluctant to provide loans.

Shortly after that he instituted the Federal Home Loan Bank Act, to spur new home construction, and reduce foreclosures. The plan seemed to work, as foreclosures dropped, but it was seen as too little, too late.

The final attempt of the Hoover Administration to rescue the economy was the passage of the Emergency Relief and Construction Act which included funds for public works programs and the creation of the Reconstruction Finance Corporation (RFC) in 1932. The RFC's initial goal was to provide government-secured loans to financial institutions, railroads and farmers.

FDR actually adopted many of Hoover's "alphabet soup" and went forward with it.

One could reasonably argue that the U.S. had turned away from its free market roots in the administration PRIOR to FDR's!

All FDR did was to continue down that disastrous least until WW II mercifully (or perhpas better put, merciLESSLY) ended that Depression once and for all.

12:55 PM  
Anonymous Chilerkle said...

Wow I guess there is a lot of things my teachers didn't tell me about the great depression. They gave me the impression that his social programs saved our economy. I'm glad there are some people who know the truth about the Great Depression and the New Deal or I'd be just as in the Dark as everyone else.

12:36 PM  

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