Thursday, January 26, 2012

The Go-To On SOTU


From Hugh Hewitt:
SOTU: Did I hear that right?
By Clark S. Judge: managing director, White House Writers Group, Inc.; chairman, Pacific Research Institute.
 

Let me get this straight: 

1) banks will be punished (do I understand this right, by a committee headed by Eric Holder?) if their lending is too risky, 

2) and they will be required (by the same committee) to give more home loans (meaning, it must be, to people who would otherwise not qualify for the loans, or else the government would not have to be involved) at lower rates (which means rates that do not compensate them as much as the market says they need to be compensated for the risks they are taking, all of which sounds like a new edition of the policies that brought on the financial collapse), 

3) which must mean that they will have to pull back on risky lending someplace other than homes, 

4) the only place that most banks would be able to pull back on riskier customers would be loans to small and new businesses, 

5) but these are the businesses that have created just about all the jobs over the last 20 years and he said early in the speech he wants to encourage them, 

6) so maybe their growth capital will come from selling stock to the kinds of people who invest in new and small businesses, 

7) but through the Buffet Rule he’s going to double the tax rate on investment income for those people, meaning that, like the banks, they can’t be fully compensated for the risk of backing small and new businesses, 

8) so they will not invest more in small and new companies but in big established firms, 

9) so more of those small and new firms will have to turn to the government for capital, 

10) which luckily he said would up its investing in early stage businesses with “the best” ideas, 

11) “the best” ideas meaning, I guess, as with Solyndra, ideas that advance his agenda through companies whose owners support his candidacy), 

11) or maybe it would be companies that agree to invite unionization (since the unions have failed to organize the new and dynamic sectors of the economy, which is why they have been shrinking), 

12) but then with the big businesses, he wants to punish American companies if they invest overseas, 

13) and he wants to increase exports, 

14) but being competitive in the global markets often means having part of your production near your markets, which is why many companies have opened production facilities abroad and many foreign companies (BMW and Honda, for example) have opened their facilities here, 

15) so he’ll make these companies less competitive, meaning less able to export anything that might be paired with some other product the company makes abroad in order to attract buyers, 

16) and it also means he’ll have the U.S. ignoring many of the international trading rules of which we have been the principal sponsor since the end of WWII, rules that have led to an incredible growth in widely shared wealth all over the planet, 

17) which means that, if he follows through, he’ll blow up the post-WWII global economic system, 

18) which in the very short run may help the uncompetitive American labor unions but in the not-so-long run would devastate every economy on earth, 

19) but it would also mean he would be in a position to decide where big companies could invest, and when, just as he’ll be in control of all new and small businesses, too, 

20) meanwhile he is going to tell states and localities what their budget priorities should be, 

21) and make them adopt his policies for running their schools, leaving me to wonder, when he’s through, what won’t he control?

I believe that’s what I heard the president advocate last night.  But one term I didn’t hear, maybe I missed it: “The Constitution.”  Then again, wasn’t he suggesting that, in brave times like these, we need to put aside those old rules.  
Do I have this straight?

5 comments:

Frances said...

Yeah, I think you got it right.

Bunkerville said...

Makes sense, now doesn't it?

Anonymous said...

Not mentioned above, behold the rise of a man becoming an American dictator. (according to Obama’s prepared remarks):

"The executive branch also needs to change. Too often, it’s inefficient, outdated and remote.
That’s why I’ve asked this Congress to grant me the authority to consolidate the federal bureaucracy
so that our Government is leaner, quicker, and more responsive to the needs of the American people."


You can watch it starting at 50:36 here.

Unknown said...

Hi Pasto.Nice to see you 'Alive & kicking':)
Yeas read it earlier.
Came across something that fits in to all this 'rise of the...'?
Total Federalization of Police Under New Homeland Security Mission.
DHS says other agencies can handle the all-encompassing threat of terrorism that was used to justify the super-agency’s own existence and powers.
And funding should be cut from terrorism-focused areas.
Remember 2008 :"Obama:"We cannot continue to rely only on our military in order to achieve the national security objectives that we've set. We got to have a civilian national security force that is just as powerful, just as strong, just as well funded".

"Dictatorship naturally arises out of democracy, and the most aggravated form of tyranny and slavery out of the most extreme liberty". ~ Plato.

http://www.prisonplanet.com/shock-docs-total-federalization-of-police-under-new-homeland-security-mission.html

Pastorius said...

Anonymous,
That's an example of the banality of evil, isn't it?