I apologize in advance for this somewhat tedious answer to the President’s speech. As they say, it’s a dirty job but someone has to do it – lest the President’s lies and half-truths go unchallenged.

“Remarks by the President on the Economy”

“Hello, everybody.  Trying a little change of venue here, mix it up.” 

“I want to talk about the progress that we made this week on three fronts, as we work to repair the damage to our economy from this recession and build a stronger foundation for the future.”

“First, I signed a Wall Street reform bill that will protect consumers and our entire economy from the recklessness and irresponsibility that led to the worst recession since the Great Depression.” 

The proximate cause of this recession was and is the government’s intervention in our free-market economy.

• The Federal Reserve holding the Federal Funds Target Rate artificially low to help banks recapitalize after the dot-com bubble burst which forced the global pool of capital to invest in mortgages rather than low-yield government Treasuries.
• The government’s  regulatory agencies which failed to detect and prosecute the violations of laws currently on the books. And the government’s interference in the mortgage industry for purposes of pandering to their minority constituency.
• The massive lobbying and special interest favors which have subverted consumer protection legislation in favor of the special interests who pay the freight for political campaigns.

Since the same people and the same regulatory agencies will mostly prevail under the new “reform” legislation, I do not see how the government is protecting consumers and our economy from the recklessness and irresponsibility that led to the worst recession since the Great Depression.

“It’s a reform that will help us put a stop to the abusive practices of mortgage lenders and credit card companies, and ensure that people get the straight, unvarnished information that they need before they take out a loan or open a credit card. “

It was the government’s sworn duty to detect and prosecute the egregious actions and abusive practices of mortgage lenders and credit card companies. Yet, the Administration’s regulatory agencies did nothing of note to protect consumers.

As for the straight, unvarnished information you need before you take out a loan or open a credit card, who can read or understand the densely-written disclosures which are offered as government-mandated compliance. With respect to loans and credit cards, most people’s only choice is to take it or leave it. And most people are just happy to qualify in the first place. The government simply regards “disclosure” as adequate consumer protection. In other words, it is ok to screw a consumer as long as you tell them they can be screwed in the fine print.

“It will bring the shadowy deals that caused the financial crisis into the light of day. “

It was the Administration’s approval of Enron-like accounting standards that allowed financial institutions to hide failing assets in “off the balance sheet accounts.” Right up until the point where no one would believe what the corporations were reporting – thus sparking a liquidity crisis that resulted in government intervention to save technically insolvent firms.

“And it will end taxpayer bailouts of Wall Street firms and give shareholders a say on executive compensation.”

It appears that the reform legislation does nothing to end taxpayer bailouts of Wal Street firms and give shareholders a say on executive compensation. The two biggest mortgage companies, Fannie Mae and Freddie Mac, are still too big to fail; being operating under government conservatorship and need government handouts to remain solvent. As for giving shareholders a say in compensation, the truth is this is a non-binding advisory to corporate executives. In reality it is only a political talking point and means nothing at the corporate level. Government agencies such as the FDIC and the non-government Federal Reserve are being granted extraordinary powers which allows them to tap federal funds in various ways.

“The need for this reform, by the way, was underscored by the report issued by Ken Feinberg this morning, identifying a number of financial companies that continue to pay out lavish bonuses at the height of the financial crisis even as they accepted billions of dollars in taxpayer assistance.”

This is not Russia and the government should not be the determinant of private sector salaries.  This is an openly Marxist tactic involving class warfare and pitting the rich against the poor and the haves versus the have-nots for the purpose of political advantage.

And I might ask, why are you continuing to reward these very same people who were complicit in the crisis with huge sums of government money, outrageous multi-million dollar salaries and bonuses to help fix the problem? 

Perhaps we should ask about the multi-million dollar salaries and bonuses given to Fannie Mae and Freddie Mac executives who operate under a government conservatorship. Even the President doesn’t earn that type of money (yet?)

“Second, I signed a law that will improve our ability to crack down on improper payments made by our government.  Every year the government wastes tens of billions of dollars -- taxpayer dollars -- on erroneous payments to companies that haven't paid their taxes, or to prison inmates, or even to people who died a long time ago.  Today we have the technology to block these payments.  And the law I signed will give us new tools to do so.  I've set a target to save at least $50 billion in -- by 2012, savings that are more important today than ever because we simply don't have any money to waste.”

Notice that the President did not comment on the billions of dollars that have been lost to corrupt foreign governments or simply “lost in transit.” The government should worry less about the dollars lost to prison inmates and people who died and start working on the billion dollar frauds involving Medicare, Medicaid,  foreign aid and politically-connected government contractors.

“Third, we finally overcame the procedural blockade of a partisan minority in the Senate to restore unemployment insurance for about 2.5 million Americans who are out of work and looking for a job.”

Partisan minority? The democrat-controlled Congress and Administration developed this legislation, in secret and behind closed doors, using language and ideas provided by far-left radical foundations.  The “partisan minority” which represents approximately 46% of our population was not consulted nor given an chance to provide valuable input.

“So, taken together, we made enormous progress this week on Wall Street reform, on making sure that we're eliminating waste and abuse in government, and in providing immediate assistance to people who are out there looking for work.”

This is an absolute lie. Waste, abuse and corruption was increased as was the size of the government bureaucracy and their intrusiveness into every facet of American’s financial affairs.  

And since when does using the taxpayer’s money to provide two years of unemployment payments incentivize people to find a job or increase the likelihood that people will be encouraged to abandon areas of economic desperation and move towards areas of opportunity?

“But ultimately, our goal is to make sure the people who are looking for a job can find a job.  And that's why it’s so important for the Senate to pass the additional steps that I’ve asked for to cut taxes and expand lending for America’s small businesses, our most important engine for hiring and for growth. And a small business jobs bill that contains these measures may come up for a final vote in the Senate in the next few days.”

The Special Inspector General of the Troubled Asset Relief Fund has testified that the Obama Administration cut tens of thousands of jobs for no other reason than that of “shared sacrifice.” More Marxism and class warfare.

The only jobs available seem to be in the public sector as government expands or as temporary union jobs involving public sector contracting for government projects. 

“Cut taxes?”  With Obamacare and this financial regulation reform, the small businessman will be facing increased taxes in the coming years. In fact, sole proprietorships, S-corporations and limited liability concerns are facing a massive tax hike as the Bush-era tax cuts expire.

As for “passing additional steps,” you, Mr. President,  are incompetent and are more about victimhood, community organizing and government entitlements – I doubt you know how to create private sector jobs with your Marxist and anti-capitalist policies.

“With this small business bill, we’ll set up a new lending fund to help community banks offer small businessmen and women the loans they need to grow and to hire.  We’ll help states encourage more private sector loans to small businesses in industries like manufacturing or construction that have been especially hard hit by this recession.  We’ll expand our most successful small business initiatives and more than double the size of loans our small business owners can take out.”

Unlike the public sector, small business companies in the private sector do not hire if there is no business or their business faces the uncertainty of greater taxes and more regulatory paperwork.  Why bother expanding your business if your money is going to pay for more indigent illegal aliens and government programs which simply transfer your hard-earned money to the undeserving, both here and abroad?

“And to unlock the growth of our entrepreneurs, we’ll finally do what I’ve been advocating since I ran for President, which is to eliminate capital gains taxes entirely for key investments in small businesses.”

Again, who wants to tie up capital in a risky political environment where the government can unilaterally change the business climate overnight?  You do not unlock the doors to entrepreneurship by increasing risks and limiting rewards. Wealth distribution is an anathema to entrepreneurs and investors. Un-American to say the least.

“Now, last night, after a series of partisan delays, the Senate took an important step forward by supporting a lending fund in the overall small business jobs bill.  I want to thanks Senators Mary Landrieu and George Lemieux for their leadership and advocacy on behalf of the millions of small business people for whom this will make a meaningful difference.  I was heartened that Senator LeMieux and Senator George Voinovich crossed party lines to help pass this lending provision last night, and I hope we can now finish the job and pass the small business jobs plan without delay and without additional partisan wrangling.”

It’s not a joke: Why did they cross party lines? Blackmail, arm-twisting, promise of employment, promise of future pork? Or simply a compatible political ideology which makes them traitors to their American constituency? It should be noted that your significant pieces of legislation were passed with the slimmest of margins and without bipartisan support. If you were doing “good for the people” one would assume everyone would be on the bandwagon and eager to share in the credit. This, more than anything else, says something about your Presidency, your Administration and the Congressional democrats. And that something is not good.

Enter the anecdotes …

“You know, the small businessmen and women who write to me every day, and the folks who I’ve met with across this country, they can’t afford any more political games.”

With Obama, his Administration and the democrat-controlled Congress it is all about politicial games and every calculation is a political one. 

And the biggest lie of all …

“They need us to do what they sent us here to do.  They didn't send us here to wage a never-ending campaign.  They didn't send us here to do what’s best for our political party.  They sent us here to do what’s best for the United States of America and all its citizens, whether Democrats or Republicans or independents.  In other words, they sent us here to govern.  And that's what I hope we will do in the remaining days before the Congress takes its August recess.”

“Thank you very much.”

The people did not send you to introduce radical socialism and communism into America. The people wanted the hope and change you promised – not Chicago-style corrupt politics, pursuit of a radical agenda and the expansion of government and growing deficits beyond any bounds of decency or belief. Almost as if you wanted to shove America into bankruptcy and subservience to nations such as China and Saudi Arabia.

The people did not send you a mandate to bring incompetence and a lack of transparency and accountability into the government.

Bottom line …

“YOU LIE!”  ,… AND CONTINUE TO LIE EACH AND EVERY TIME YOU OPEN YOUR MOUTH! 

“We the people” need to replace you, members of your Administration and all of the Congressional democrats with honest brokers who respect our Constitution. Who listen to the will of the people instead of acting against them at every turn. We told you we did not care for your party’s 2000+ page bills, filled with lies and loopholes, and yet you signed them into law – even when members of your own party did not take the time to read nor understand what they were casting their ballots for. You have done everything in your power to put our nation at risk. You are a menace to the people and need to be thrown out of office.

You could have simply posted your birth certificate on the Internet to stop all of the crazy talk – yet you stuck your thumb in the people’s eye and spend millions of dollars fighting the release of your records: birth, school and passport. An honest man would have ended the debate once and for all – but you sir, do not seem to be an honest man. And you must relish sticking your thumb into America’s eye.

-- steve

Reference Links …    

Remarks by the President on the Economy | The White House