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Elizabeth Warren: Another stealth activist or a consumer advocate?

Where Barack Obama is concerned, every action needs to be examined critically and carefully lest he and his selected associates continue to fundamentally change the nature of our nation’s social and economic fabric – some say towards a European Marxist model and others say towards a United Nation’s single governance model.

With his appointment of certain non-Senate-confirmed czars, Obama and his minions have essentially established a shadow government with many of the powers of Cabinet-level officials. And with the danger of inappropriate decisions that skirt proper authorization and oversight.

Therefore, it is with some trepidation that I read reports of President Obama temporarily  appointing Elizabeth Warren as a special advisor to the Treasury Department with the mission of launching the Consumer Financial Protection Bureau (CFPB). A agency designed with enormous powers; both to capture confidential personal and proprietary data and to promulgate rules and regulations which bypass normal Congressional legislative processes.

While Warren appears to have superb credentials and a storied history, enough is known about her ideological inclinations and it appears fair to say that she appears to be a committed progressive democrat. A member in good standing in the ideology which believes in a ruling elite and the necessity for a strong, centralized government to manage “we the people” in the best interests of a collective society. With this inclinations, her motivation for protecting consumers may be secondary to promoting public policy which allows the progressives to exert greater control over the nation’s population, economy, social development and, ultimately, the military.

Perhaps the scariest indication of her intentions may have  been presented to the public in the form of an enthusiastic recommendation from the Chairman of the House Financial Services Committee, Barney Frank; a man who believes that the largest financial service companies in the nation, Fannie Mae and Freddie Mac should be regarded as instruments of public and social policy. She also is highly recommended by Representative Bernie Sanders, a self-described democrat socialist who openly admires European-style social democracy. Sanders, running as an independent, caucuses with the democrats.

As for those with a radical political ideology, there is the possibility of extreme danger as the ends are already defined and the means, both fair or foul, may be subject to interpretation. 

Consumer protection or something more malevolent?

The reason given for the agency’s existence is consumer protection. But it appears that the CFPB is a super-agency, housed in the Federal Reserve, but independent of its oversight, with a budget estimated to be at least $500 million.  From what I can determine, the CFPB will sit atop other, more established, regulatory agencies and present a significant jurisdictional overlap that may give rise to an ill-conceived patchwork of legislation which is overly complex, conflicting, chaotic and may be impossible to implement.

I am worried …

The two areas which worry me the most are the CFPB’s ability to access the personal financial records of any citizen without subpoena or notice – possibly to be stored in a giant government database and made available to law enforcement agencies without subpoena --  and their ability to interfere in the activities of most any private organization – going far beyond the traditional limitation of regulating only depository institutions or financial firms.

It is also possible, indeed likely, that the CFPB may claim for itself the same exemption from FOIA (Freedom of Information Act) requests that was exerted by the Securities and Exchange Commission under the recently passed 2000+ page Dodd-Frank Wall Street Reform and Consumer Protection Act.

Sidestepping Senate Confirmation …

President Obama appears to be avoiding a contentious Senate confirmation process that is mandated should he nominate her for a five-year term as the agency’s first head.

A clear and present danger …

Senator Bob Corker (R-TN) sent a letter to President Obama which expressed his concern about the interim appointment of Warren. In the letter, Corker states:

“This particular position, one that was created just months ago, is unprecedented in the nature of its unfettered and unchecked authorities, which makes the confirmation process even more important to the interests of the American people. The individual who heads this bureau will be able to make rules, with ultimately no checks and balances, that could have broad reaching implications for the U.S. economy as it relates to accessing credit, social justice and the safety and soundness of the U.S. banking system. The job is disproportionately reliant on the decisions of one individual with access to large sums of taxpayer monies to carry out the agency agenda. Taxpayers deserve better stewardship in the determination of who will take on this responsibility.” <Source: Corker Letter>

The agency’s concept and preliminary design is attributed to Elizabeth Warren, so it is assumed that she has a clear idea of the agency’s power, direction and impact on the nation’s economy.

Geithner, again …

As provided in the Dodd-Frank bill, Treasury Secretary Tim “Turbo Tax” Geithner is the titular head of the agency until the Senate confirms the agency’s first director. Geithner will also be intimately involved in transitioning and transferring  powers from existing regulatory agencies to the CFPB.

There is little or no evidence that Geithner is acting in the best interests of the average American citizen and not to benefit the financial institutions with which he is intimately familiar. His actions seem to be driven by Obama and his acolytes rather than from any sense of personal conviction.

But, considering that many of the positions anticipated by the Dodd-Frank legislation, it is possible that these positions might remain unfilled as Geithner and his associates consolidate their power. Which makes me wonder why Warren was not appointed by President Obama during the last recess and why she is assigned to the Treasury Department.

There appears to be something strange about Obama’s reluctance to take definitive action on any number of occasions. Some attribute this to laziness, incompetence or the over-reliance of factions fighting internally over turf. A prime example can be gleaned from the saga of the Comptroller of Currency (OCC), John Dugan. It was well known in the Administration, from the time of Obama’s inauguration, that Dugan’s term would expire in August, 2010 – and yet the OCC continues to function, lacking a permanent leader. Considering the importance of this agency within the regulatory pantheon, it is almost inexcusable for the Obama Administration to leave a major agency position unfulfilled.  Ditto, the FHFA (Federal Housing Financial Agency) which oversees the mortgage behemoths Fannie Mae and Freddie Mac which operate under an interim director.

One thought, perhaps Obama and his fellow travelers wish to place un-confirmable ideologues in positions of great power – to the extent they can survive the natural change of leadership which may occur as soon as 2012.  And which would further seed the inculcation of Marxism within the bureaucracy where it will be able to manage the public employee unions to finish the transformation so long sought by Barack Obama. 

Bottom Line …

Where Elizabeth Warren is mistaken is simply that more government control is not the answer to resolving the current financial crisis or preventing another crisis. That the proximate cause of all problematical behavior stems from government interference in the free markets and the self-serving behavior of politicians who continue to sell out the American public to the special interests in return for campaign contributions and voter support.

Without honest brokers to uphold the Constitution and serve “we the people,” Americans face a clear and present danger of a shift in political ideology towards a European socialist democracy. Higher taxes, expanded government, central planning along the lines of the old Soviet Union and a major loss of personal choice and freedoms.

We need to remove the democrats from office to restore the Constitutional checks and balances envisioned by our Founding Fathers. We need to remove the democrats from office to reverse some of the toxic and ill-advised legislative initiatives which have the potential to do great harm to our nation.

And we need to remove all politicians who have become creatures of the system, operating in self-interest in favor of the special interests rather than the public’s welfare.

And we need to do this before our country is irreversibly damaged.

-- steve

Reference Links:

Elizabeth Warren proposed the concept of a consumer protective agent modeled after the Consumer Product Safety Commission (CPSC) in a think piece titled Unsafe at Any Rate. Note that her work is highly derivative, both in title (modeled after Ralph Nader’s Unsafe at Any Speed) and in concept. 

The publication which published Warren’s work is  Democracy: A Journal of Ideas which claims “The mission of Democracy is to build a vibrant and vital progressivism for the twenty-first century that builds on the movement’s proud history, is true to its central values, and is relevant to present times.”

Unsafe at Any Rate

Slamming Ronald Regan … “… The difference between the two markets is regulation. Although considered an epithet in Washington since Ronald Reagan swept into the White House, the ‘R-word’ supports a booming market in tangible consumer goods.”

More government is not a solution … “How did financial products get so dangerous? Part of the problem is that disclosure has become a way to obfuscate rather than to inform.”

Notice that she did not say anything about the obvious: political influence on disclosure  legislation that permitted this egregious behavior. That is, politicians were bought and paid for by the financial institutions. The regulatory agencies were populated by ex-industry people.

And the proximate cause of the current financial crisis was federal policies, legislation serving the special interests and the failure of our regulatory agencies.  Also true under Carter, Clinton, Bush, and yes, Obama. And not likely to change in spite of Warren’s progressive efforts.

“Nullius in verba.”-- take nobody's word for it!

“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw

“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”

“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS

"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius

“A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell

“Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar

“Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS

Unthinking robots: Obama needs your help ...

Obama’s democrat congress is in jeopardy. They can’t take back what they have done, so they need to con you into believing that black is white, down is up and evil is good.

Let’s take a look at another Obamacon-job e-mail …

Friend --

The special interests in Washington are not happy, and it's because of something you did. 

Since President Obama moved into the White House, this movement has stripped them of their influence, proving we could take on the lobbyists and corporate cash with good, old-fashioned organizing. 

Now these groups are vowing to get payback in the fall elections -- and they have put all their chips on one man: Congressman John Boehner.  '

Third-party organizations have already spent millions to help Republicans take over the House and make him Speaker -- and you can bet there are millions more to come in the form of nasty TV ads and shadowy robo-calls before November.

Here's how we fight back: the largest-scale voter turnout effort this party has ever assembled in an election like this.

Another grassroots supporter has promised to match, dollar for dollar, whatever you can chip in today. These matched donations add up fast -- and right now there are 541 donations across California waiting to be doubled.

Don't leave this money on the table -- donate $5 or more today and double your impact.

It's easy to see why these special interests picked John Boehner. This is a guy who first made national news 14 years ago when he was caught handing out checks from tobacco lobbyists on the House floor.
John Boehner said he did nothing wrong -- he was simply helping out his lobbyist friends.

And, in all of the fights we've waged together these past 20 months, he's been these special interests' right-hand man.

He teamed up with financial lobbyists to do everything he could to stall Wall Street reform and even took time before the vote on health reform to scream "Hell no!" over and over again from the podium. 

‘If John Boehner is handed the Speaker's gavel, all that is wrong with Washington is back in business. Their plans are simple -- unravel what this movement has done and stand in the way of the rest of President Obama's agenda.

Some Republican leaders have even threatened to shut down the government to get their way -- a heartless move that would hold Social Security checks hostage and shut down veterans' hospitals across the country.

With just 48 days to go until the election, this movement is the only thing standing in John Boehner's way.

Take advantage of this opportunity to piggy-back on another grassroots supporter's promise. Help fund our effort to fight back against Republicans and keep America moving forward.

Chip in $5 today to get your donation doubled:
<link deleted>


Mitch Stewart
Organizing for America

Now let’s take a look at the truth …

The only “special interests” that are upset with what is happening are President Obama and his congressional democrats who see a tidal wave of unhappy citizens revolting against the system; especially the corrupt and complacent politicians who have traded their influence and votes in return for campaign donations and voter support. The public’s disgust extends to both the corrupt democrats and complacent republicans. And polls show that it is not citizens of just one party, but the democrats, republicans and independents all revile the current politicial situation and politicians.

How can Mitch mention the lobbyists and corporate cash when those who were secretly crafting Obamacare were doing special interest deals with the insurance industry, the pharmaceutical industry, medical device makers and others who were promised significant carve-outs, exemptions and other  benefits in return for their silence or token opposition?

Old-fashioned organizing? You mean the organizing techniques developed by radical communist Saul Alinsky and taught to radical activists by that famous organizer, Barack Obama?

Communist organizing tactics …

So if you can’t successfully defend your record and members of your party are ethically challenged, you turn to  Saul Alinsky's Rule #13: “Pick the target, freeze it, personalize it, and polarize it.” ...

Here President Obama, in a most petty and un-Presidential act, has decided that the democrat party must demonize one man – Representative John Boehner who they believe is in line to replace House Speaker Nancy Pelosi. Princess Pelosi who demanded a large private jet to ferry her and her friends back-and-forth between Washington, D.C. and her home, ultra-liberal San Francisco. A city that is so out of touch with mainstream thinking and values as to be its own little world. A place where the ruling elite and their fellow travelers set policies – not to be followed by them, but to be followed, under the penalty of law, by the “little people.”

It is next to impossible to believe that one man, John Boehner, is responsible for the success or failure of the democrat party’s electoral efforts. But that’s what the dishonest democrats would have you believe as they beg you for money. By the way, who is this mysterious party who will match donations – the SEIU (Service Employees International Union), radical activist and billionaire George Soros, or some other deep-pockets “special interest” who wants to curry favor with the Obama administration?

Oh my heavens …

Again, the democrats have trotted out their old scary predictions – which never seem to come true.

They are going to destroy our good work. Even though the efforts of the democrats have squandered billions of ineffective stimulus dollars as payoffs to special interests and demanded that each citizen purchase “government insurance” or be fined by the Internal Revenue Service. Legislation which, if continued, will bankrupt the United States.

“… heartless move that would hold Social Security checks hostage and shut down veterans' hospitals across the country.” How many times can they attempt to scare senior citizens and veterans? This is ludicrous. Truth-be-told, Obamacare not only increases taxes and reduces personal choices and freedom – but results in a panel of so-called experts telling you what medical services you can access. Stupidly dumping millions of new people into plans without increasing the numbers of physicians, nurses, medical facilities, diagnostic devices and critical medical equipment. Any rational person can see that this would result in the denial or delay in healthcare – or possibly death if you don’t meet the qualifications.

Bottom line …

This is not a vote about one man … be it John Boehner or former President Bush (who coincidently is not running).

This is about restoring constitutional checks and balances and electing honest brokers to serve we the people.

I am not going to tell you how to vote. But I am asking you to elect “honest brokers” that will respect our Constitution and serve “we the people.” If it means not electing traditional republicans, so be it. If it means throwing all of the democrats out of office for what they have done to the American people, so be it.

We cannot continue with 2000+ page bills crafted by the special interests and passed by legislators who do not read nor understand what they are signing. Or its impact on the citizens they have sworn to serve and protect.

All I can urge is: do the right thing. You know the difference between good and evil, between right and wrong. Do the right thing.

-- steve

“Nullius in verba.”-- take nobody's word for it!

“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw

“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”

“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS

"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius

“A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell

“Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar

“Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS


There is no doubt in my mind that the United States is facing a clear and present danger. Our Congress and our Administration has never been more corrupt; their votes available to the highest bidder – possibly including foreign sovereign nations who do not wish America well.  

The legal means to convey funds to members of Congress and the Administration seems fairly simple. The special interests contribute to so-called tax-exempt charitable foundations which, in turn tailor their activities to support the politician and his political agenda.

Precisely the means used to convey lobbyist and special interest cash to Arnold Schwarzenegger so he can claim that the citizens of California are not paying for his celebrity- lifestyle food, lodging and travel expenses.

Now we find that the New York Times is reporting …

“Congressional Charities Pulling In Corporate Cash”

“Representative Joe Baca has achieved near celebrity status in his suburban Los Angeles district, as much for his record of giveaways — Thanksgiving turkeys, college scholarships, spare boots for firefighters — as for anything he has done in Congress.”

“That generosity is made possible by the Joe Baca Foundation, a charity his family set up three years ago to aid local organizations. It provides another benefit, too: helping the Democratic congressman run something akin to a permanent political campaign.”

“Joe Baca T-shirts and caps are given out at the charity’s events, where banners display his name. Local newspapers mention the charity’s donations, and cable stations show appearances by Mr. Baca and his family at functions his foundation supports.”

“But unlike most private foundations, Mr. Baca’s gets little of its money from its founders’ pockets. Instead, local companies and major corporations that have often turned to Mr. Baca’s Washington office for help, and usually succeed in getting it, are the chief donors.”

“A review by The New York Times of federal tax records and House and Senate disclosure reports found at least two dozen charities that lawmakers or their families helped create or run that routinely accept donations from businesses seeking to influence them. The sponsors — AT&T, Chevron, General Dynamics, Morgan Stanley, Eli Lilly and dozens of others — contribute millions of dollars annually in gifts ranging from token amounts to a check for $5 million.”

“Despite rules imposed in 2007 to curb the influence of special interests in Congress, corporate donations to lawmakers’ charities have continued, thanks to a provision that allows businesses to make unlimited gifts to them. And while business executives say they want to give to a good cause, their pattern of spending — contributions that often are not disclosed, in apparent violation of ethics rules — suggests another reason.”

Plausible deniability …

“Like Mr. Baca, other members of Congress benefit from the good will that their corporate-financed philanthropy generates among voters. The lawmakers defend the donations, saying they have no influence on the politicians’ positions on legislation or policy. They also say that they typically do not serve on the charities’ governing boards or solicit contributions themselves.”

The simple truth is that corporations do not spend money foolishly or needlessly; using their corporate contributions in random acts of kindness. Their charitable contributions, often linked to the desires of their top executives are designed to incur favorable publicity and influence in both local communities, the state and federal governments.

Buying influence?

One merely need look at the hundreds of millions of dollars washing through the Clinton Foundation – much of it not reported by name to the authorities or the public – to know how dangerous this practice may be in relationship to foreign sovereign governments like Saudi Arabia which has reportedly given tens of millions of dollars to various Clinton initiatives.

I have little or no faith in the Clintons; especially considering Clinton’s dodgy pardons which seem to be granted to some of his largest financial supporters or to secure political support in various communities. <Source>

You help me, I help you …

Even for politicians out of favor or out of power, directed foundation funds can be used to help those politicians who seek the aid of other politicians. The circle of influence is not just limited to the politician in office.  There is absolutely no doubt in my mind that Clinton’s travels and political activities are supported by his foundation – as a way to keeping the Clintons in the political mix; possibly for assisting those who will be helping Hilary in 2012.

Not limited to politicians …

Key aids and individuals who support political causes and politicians have created their own foundations and think tanks to churn out favorable publicity and position papers to aid political parties and/or individual politicians. Whether promoting cap-and-trade or demonizing the right-wing media, these foundations are also benefiting for contributions from the special interests – all with a “wink-wink, nod-nod) knowledge of what they money will be used for.

Bottom line …

We need to take back our government from those who have sold it to the highest bidders.

We need to restrict Presidential Libraries and politician-related foundations before we find that corruption has become as pervasive as it is in third-world nations.

The democrats talk about raising taxes and closing loopholes – but do little or nothing to restrict the flow of influential “tax-free” funds which are corrupting America.  People like John McCain and Russ Feingold have actually subverted campaign finance reform with their loop-hole ridden, unconstitutional efforts.

We need to take action now. To elect “honest brokers” to serve “we the people.” And we need to start in November by restoring the Constitutional checks and balances to our government and removing the disastrous, corrupt one-party rule that is responsible for the continuing damage to the American economy and our ability to defend ourselves from our enemies, both foreign and domestic.

Vote as if your life depended on it – because this time is surely does.

-- steve

Reference Links:

Congressional Charities Pulling In Corporate Cash -

“Nullius in verba.”-- take nobody's word for it!

“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw

“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”

“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS

"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius

“A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell

“Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar

“Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS

Alan Caruba gets it: Government's actions are becoming more unconstitutional ...

With Alan’s permission, I am reposting Alan’s recent blog entry on government, constitutionality and global warming. You will find that Alan is both articulate and knowledgeable. I greatly enjoy both his content and writing style and am pleased to introduce my readers to this extraordinary man.

-- steve

Turning Off the (Incandescent) Light of Liberty

By Alan Caruba
What if the government banned air conditioning? What if flat-screen televisions were determined to use too much electricity and were ordered phased out of production? What if the use of all plastic grocery bags were banned? What if the incandescent light bulb, one of the greatest inventions of Thomas Edison in the 1870s was banned? Oh wait, it has been banned!

In a nation where the Medicare “reform” requires Americans to purchase health insurance they may not want and may not be able to afford, was rammed through Congress, what can stop the government from dictating just about any choice you have regarding any purchase you make? The answer? Nothing. 

Only it would no longer be a Constitutional government, a nation of laws that reflect anything resembling the truth. The ban on incandescent light bulbs turns off the light of liberty throughout America. 

Here are some truths to keep in mind. (1) Carbon dioxide (CO2) along with other “greenhouse gas emissions” does not cause global warming. (2) There is no global warming. (3) The Earth has gone through known warming and cooling cycles for millions of years. (4) The Earth is in a cooling cycle.
(5) Beginning January 1, 2012, government rules will make it impossible to purchase a 100-watt incandescent light bulb. After that, in time, all such light bulbs will be phased out leaving Americans with only dim, over-priced, mercury-filled light bulbs. And (6) they will be made overseas, primarily in China.

By 2012, by order of the government, Americans will no longer be able to purchase any incandescent light bulbs. Why? Because Congress banned them, citing the need to reduce “greenhouse gas emissions” to reduce global warming that isn’t happening.

It’s the same Congress that had already determined how much water your toilet can use to flush. It’s the same Congress that determined “cafe” rules that determine how many miles per gallon your automobile must achieve. It’s the same government that requires ethanol be added to gasoline, thus reducing the mileage a gallon of adulterated gasoline can produce, while also driving up the cost of gasoline as well as of corn, a food product, used to produce ethanol.

It’s the same Congress that has blessed a Renewable Electricity Standard that requires utilities to use electricity produced by wind and solar power even though both sources also require 24/7 backup by traditional coal-fired, natural gas, or nuclear plants because they cannot be relied upon to generate electricity in a predictable fashion or during periods of peak capacity.

It’s the same Congress that initiated Fannie Mae and Freddie Mac, two “government entities” that purchased the sub-prime mortgage loans that banks and mortgage loan firms were required to make to people who clearly could not afford to repay them. The result is the financial crisis that occurred when those “bundled” mortgages turned out to be “toxic”, worthless paper sold to investment firms and banks as assets.

In early September, The Washington Post, published an article, “Light bulb factory closes; End of era for U.S. means more jobs overseas.” It reported that “The last major General Electric factory making ordinary incandescent light bulbs in the United States is closing this month…the remaining 200 workers at the plant here (Winchester, Virginia) will lose their jobs.”

In June, The Washington Times reported that the Federal Trade Commission earlier this month (released) 91 pages of regulations that will force manufacturers to revise their packaging and make costly compact fluorescent bulbs appear more appealing to consumers,” that they have refused to willingly purchase them. “Congress wants to force the pale, cold fluorescent curlicue fixtures on everyone because it makes members feel that they are doing their part to ‘save the planet’.”

While the ban was initiated in 2007 before the Obama administration took power, it has not gone unnoticed that the CEO of General Electric, Jeffrey Immelt, “sits on Obama’s Economic Recovery Advisory Board.” And recovery is no where in sight while GE closes its factory making incandescent light bulbs.

There’s more. GE was the recipient of bailout funds and, according to an article on, “stands to benefit from current and future contracts with the U.S. government.” Connect the dots. GE owns MSNBC, a cable news channel famous for its adulation of Obama before and since his election.
The issue, however, is far less about GE than it is about the vast global warming fraud, the equally vast matrix of U.S. laws and regulations that is based on it, and most importantly, the way they are being used to undermine and destroy the U.S. economy along with the freedoms that Americans take for granted.

One of the many tasks facing a Congress in which Republicans are expected to regain control in November is to repeal the ban on incandescent light bulbs. After that, the mountain of other laws and regulations strangling consumer freedom and even threatening the health of Americans must also be repealed.

All nations must evolve, but America is moving toward less freedom of choice; more control over the choices that a free market requires. It is rejecting its founding principles and it is doing so based on environmental lies.

© Alan Caruba, 2010

Bottom Line …

Global warming is a global political hoax that is being promoted by the special interests who will profit greatly from its mandated prescriptive efforts.

The government – implementing a Marxist political agenda on the back of faux environmentalism. This allows for the downstream population control, de-industrialization, control over national economies, a perpetual  political class of ruling elites and the worst side-effect of this malignant cancer, the reduction and loss of initiative and liberty.

The special interests who obtain access to the treasury for their personal enrichment. If you think excessive bonuses for people who did nothing but trade paper back and forth among themselves was outrageous, this will make those bonuses of tens or hundreds of millions seem like a waiter’s tips.

America is facing a clear and present danger from our internal enemies: the corrupt and complacent political parties and the politicians they put forth. We have never seen this level of Marxist and communist subversion in every level of our government. Whatever Senator Joseph McCarthy may have thought about communists in government, he would be shocked to find that these anti-America ideologues are being welcomed into highest levels of government by our own President.

Now is the time to elect “honest brokers” to serve we the people. I am not telling you how to vote, but your vote in the upcoming 2010/2012 election cycle is likely to be the tipping point in congressional politics; restoring some measure of  constitutional checks and balances to our government or allowing our nation to continue on the slippery slope of Marxism.

-- steve

Reference Links …

Warning Signs

“Nullius in verba.”-- take nobody's word for it!

“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw

“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”

“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS

"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius

“A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell

“Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar

“Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS


The liar-in-chief, oops, I mean the campaigner-in-chief wants your money to preserve his hard-won gains …

*  The stimulus which rewarded dysfunctional municipalities and states with funds to keep the public employees unions happy for political reasons. To insure that this protected and pampered voting block suffered little or no pain during the current financial crisis which has greatly affected the private sector. So much for the President’s concept of shared sacrifice and wealth re-distribution.

*  Obamacare, an overly-complex and unmanageable bureaucratic nightmare that takes control of your healthcare from your physician and turns it over to a faceless board of political and academic appointees who will decide what healthcare you might get based on your age, physical condition and the cost of the treatment.

A system which overlooks the obvious need for the denial, delay or rationing of medical services because it demands the system accommodate tens of millions of new patients (many of them illegal aliens) without expanding the number of physicians, nurses, medical facilities, diagnostic devices and other critical supplies.

A dishonest system that provides preferential care to the unions and the states where representatives held out their votes until the very last minute. Not to mention the special deals that were negotiated with the insurance, pharmaceutical, medical device and other key industries – if not for their direct support, for their silence in not opposing this abomination.

*  Financial regulatory reform which gives the White House-directed regulatory agencies, which failed to do their job the first time,   even more power and control over the nation’s financial institutions.

*  All led by tax cheats, czars, people who openly declare their socialist and communist affiliations – people who you would not invite into your house, let alone the White House – the house of “we the people.”


*  Hollywood is cranking out propaganda – but then again, they honor and respect murderous dictators like Hugo Chavez and Fidel Castro.

*  The mainstream media is helping: by portraying everything Obama does as historic, by eliminating or minimizing negative coverage which speaks the truth to power.

And now they want us – you and I to help make our America into a third-world European-style Marxist nation. A cross between France and Mexico.

I say NO! HELL NO!

Read it for yourself …

Friend --

When Michelle and I decided that I would run for President, it was because of a shared belief in the power of community and connection, a commitment to the idea that we are our brothers' keepers.

With your help, that is how I have tried to govern.
Now -- with just 50 days until the November elections -- the progress we have achieved together is under attack.

But I have seen what you can do when the stakes are high, and I have never been more confident in your ability to deliver.

Today, I am asking you to take the next step in your support for Organizing for America.

Because this moment is so critical, another supporter has pledged to match any donation you make right now. A $5 donation will become $10.

Will you make a donation today and answer your fellow supporter's pledge to match whatever you can give?

Here's how it works:

-- You choose the amount you are able to give -- and it will be doubled by someone willing to match that amount.

-- You will be able to write a note to the person who matched your donation and let them know why you decided to own a piece of this movement.

There are a lot of people out there who do not believe we can continue this work.

But we've defied the naysayers before. It was supporters like you who stood up and said, I can call my neighbor and ask her to vote. I can write a letter to my member of Congress. I can volunteer a few hours to go door to door -- even after a hard day at work.

It was this commitment that ensured millions of Americans will no longer suffer the indignity of inadequate care, simply because an illness came too soon, or a procedure too late.

It was this commitment that allowed us to pass the toughest financial reform regulations since the Great Depression.

And it is with this commitment in mind that I have gone to work every day. Over the coming months, I will continue to fight for what is right and for what is necessary -- but I cannot do this alone.

Republicans have made it clear what they will do if elected this fall -- attempt to repeal our historic achievements and obstruct progress on the work that lies ahead.

But if we remember what we can build together, we can continue moving America forward.

Today, it starts with you. Your matched donation this month will enable us to execute the largest, most ambitious plan our party has ever run in an election of this kind. It will fund our Vote 2010 efforts in all 50 states. And it will help us stand up to the special interests trying to take over Congress.

It can shake up this fall's elections.

We built this movement with support from people like you, with small donations from millions of donors. And that was a conscious choice -- a choice that required us to demand more of our friends, our neighbors, and ourselves.

A fellow grassroots supporter is asking you to join them today -- and has pledged to match your individual donation.

Please donate $5 or more to help grow this movement in the critical weeks ahead:
<Link Deleted>

Thank you,

President Barack Obama

Bottom line …

It is now time to take a stand: With corruption, public employee unions, illegal aliens and Obama


with the ideas of our founding fathers which authored the Constitution that makes our nation great.

The choice is clear: we need to eliminate the clear and present danger that is facing America by voting the corrupt democrats out of office and restoring the congressional checks and balances which keep us from allowing the Presidency from becoming a Marxist dictatorship.

Vote!  Vote for “honest brokers” to serve “we the people.” That is all I ask.

-- steve

“Nullius in verba.”-- take nobody's word for it!

“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw

“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”

“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS

"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius

“A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell

“Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar

“Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS


I am growing increasingly frustrated with the mainstream media that continues to identify illegal aliens as immigrants or undocumented workers.

First, they are not immigrants –immigrants have followed the law and are here as guests of America – they are illegal aliens who have breached our sovereignty and have no legal right to be in our country and in our cities.

Second, they are not undocumented workers, most have some form of documentation – mostly stolen, forged or simply borrowed from other illegal aliens.

While it is true that some of these people are hard-working, family-oriented people; looking to assimilate into American culture; many others are not – they do not plan to assimilate and are here only for economic reasons.

These people tend to cluster in areas which they rapidly make their own. With their own language, food and standard of living. Noticeably bringing poor living conditions, poverty, illiteracy, disease and crime into areas which the police are reluctant to patrol.

These people are supported by politicians who pander to their plight instead of performing their sworn duties and upholding the law. Political correctness and multiculturalism are the rationale behind such acceptance; but the truth is often much uglier. Politicians and the police benefit greatly from the presence of illegal aliens: one,  in terms of ever-diminishing thinking citizens within their districts so they can be elected with small minority votes and two , in terms of expanded social services and the need for police which expands their own budgets and personnel.

All exploited by the activists who seek political power, the lawyers who earn a very good living from handling immigration issues and those who want to subvert the existing American way of life in favor of the chaotic and socialist governments that exist elsewhere.

Welcome to the third-world …

This is all illustrated in a story published by the Associated Press …

“LA protests underscore frustration of immigrants”

“LOS ANGELES (AP) -- The smell of corn roasting on sidewalk grills, the oompah beat of Latin music blasting from mom-and-pop stores, colorful signs touting tongue-twisting names like Atitlan and Quetzaltenango.”

“This central Los Angeles neighborhood could almost be plucked right out of Guatemala City.”

“Long ago a well-heeled area of Los Angeles, in more recent decades the Westlake district surrounding MacArthur Park has become a densely packed enclave of Central American immigrants fleeing brutal civil wars and grinding poverty in their home countries.”

Wonderful, through our sanctuary policies and corrupt politicians, we have apparently allowed illegal aliens and others to recreate a third-world environment in a modern city. Instead of enforcing building codes, health standards and providing normal policing, we apparently have allowed the inmates to rule the asylum.

“This week, the bustling community turned into a hotbed of unrest after a police officer shot and killed a Guatemalan day laborer who allegedly lunged at him with a knife. The incident Sunday sparked three days of protests by people who felt that killing Manuel Jaminez, a 37-year-old illegal immigrant, was an unfair and unnecessary use of police force.”

This is where the mainstream media echoes the politicians in calling for calm and the maintenance of good order while the facts are investigated. Unfortunately, like third world countries, protests erupted – egged on by professional agitators and activists with their own agenda of self-interest.

“The demonstrations surprised officials, who blamed the blowback on outsiders who had come to the area to stir up trouble. A visit to the neighborhood of grimy tenements with curlicued cornices and portals that belie a more elegant past reveals a social tapestry fraying from increasingly hardscrabble living and widespread frustration.”

“The neighborhood has long been a first stop for new arrivals who have made the risky journey to ‘el Norte.’ More than two-thirds of residents are foreign-born, almost three-quarters are Hispanic, almost half live in poverty.”

“Drawn to a neighborhood with flavors of home, about 118,000 residents jam the area's 2.7 square miles, making it one of the most crowded districts in Los Angeles.”

What is the city planning commission doing when it is not pandering to politically-connected developers?

What justifies the degradation of this neighborhood in the middle of a modern city?

Why would the City of Los Angeles maintain their sanctuary policy when it is a clear and present danger to all concerned?  Especially when a significant portion of our social and legal infrastructure is consumed with dealing with illegal aliens?

“Here, they find everything from comfort foods such as tamales and Pollo Campero - Central America's beloved fast-food fried chicken chain - to fake Social Security cards and driver's licenses to cheap lodging in shared bedrooms and living rooms.”

Should we be looking for well-heeled and politically well-connected slum lords who are profiting from the misery of those living on the edge of poverty and exposed to the brink of gang violence over drug dealing?

“Jobs are few and far between, rents are high, and unfamiliar laws are stringently enforced. Crime is also high, with much of it related to the neighborhood's homegrown Mara Salvatrucha or MS-13, a gang formed by Salvadoran immigrants in the 1980s that has morphed into one of the most vicious in the nation.”

Why are our political leaders at the local, state and federal level tolerating an invasion by a well-organized army of foreign gang members – which could easily serve as the well-armed beach-head of a foreign invasion and/or insurrection?

Will this become the type of intimidating armed force that required the United States government to post signs warning legal U.S. citizens that certain property within the continental United States – and 80 miles from the nearest border – to stay away or fear for their lives?

“Particularly vulnerable are campesinos, subsistence farmers from the indigenous communities of rural Mexico and Guatemala who often are far less prepared to cope than other immigrants.”

“Many have only a few years of formal schooling and may barely be able to read and write. Some speak little Spanish, having grown up in isolated areas where native indigenous languages are mainly spoken.”

Pardon the lack of political correctness, which is often a way to make the ugly truth presentable in polite company, but these are the people who are being taught by the city’s politicians, the activists, the unions, the Catholic Church to work the system.

To have anchor babies and all of the entitlements of the system.

To get social benefits which are rapidly being diminished for legal, law abiding citizens facing the one of the worst economic climates of modern times.

To use critical, emergency health facilities as primary care doctors and birthing stations; the cost of which is resulting in closed and restricted facilities that are increasingly needed by a legal and aging population.

All supported by the politicians, bureaucrats and special interests whose entire reason for being is to serve this increasing horde of non-assimilating parasites who are feeding on the body politic.

With California – and its generous social policies – why should it not come as a surprise that California supports one-third of all of the welfare recipients in the entire nation?

Even the Los Angeles Police Chief is pandering to the illegal community – as if they are a legitimate community with the rights and privileges of American citizens.

Speaking to the media about the recent shooting that occasioned street demonstrations, Chief Beck said “They want a voice in government and sometimes and sometimes they are not represented adequately.”

Their voice is well-heard as it is the community activists, notably the ones with legal operations suing the LAPD, the city and others on their behalf.

Why they should have legal standing in an American court of law seeking redress from a city where they do not legally belong – either as a resident or a visitor -- is beyond me.

And for being represented at the highest level within the city, let us not forget that the Mayor of Los Angeles Tony Villar (his real name, Villaraigosa is a made-up name) was a Mexican activist supporting a socialist group wanting to return California to Mexico.

Bottom line …

Through the corruption of our public officials and politicians, we are witnessing the demographic destruction of America. Just as the Muslims are moving into Europe and taking over parts of cities, we are seeing similar actions here in the United States, and particularly in Los Angeles. All aided and abetted by the special interests who profit from the presence of these people in our population.

The corruption is most prevalent in the democrat party – now infiltrated by socialists and communists who do not wish America well.

Think before you vote. Let’s elect “honest brokers” to serve “we the people.” No more politicians who cannot or refuse to support, protect and defend the United States Constitution and America from its enemies, both foreign and domestic.

-- steve

Reference Links … - News From AP

“Nullius in verba.”-- take nobody's word for it!

“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw

“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”

“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS

"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius

“A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell

“Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar

“Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS


On September 11, 2001, the United States was viciously attacked by Muslim extremists acting in the name of their Islamic religion. The death toll that single day was 2,996, including the 19 hijackers. Approximate 6,000+ others were injured. To this day, Islamic holy books claim that Jihad or Holy War in the name of Allah is a requirement of every devout Muslim. The “Religion of Peace” commands the faithful to kill the infidels or place them in perpetual servitude. There is absolutely no tolerance for other religions or human rights; especially the rights of women. The religion permits barbaric torture, rape, mutilation and being stoned to death. It appears that the majority of Muslims are content to live in an archaic world and resent the influence of foreign culture. This is a religion which will administer 99 lashes for a woman appearing in a picture without the proper head covering.

Here is all I need to know about the Islam, the religion of peace – which is creating havoc around the world …

Capture9-8-2010-10.31.54 PM

Hoping against hope …


A fateful decision …


Beginning of the end …


You want to build a triumphal Mosque near here?


George Bush’s answer …


My answer …

Capture9-8-2010-10.03.56 PM

Barack Obama’s answer …


Today, we the American people mourn the loss of those Americans who were killed in this terror attack. It was not the first terrorist attack on the United States nor will it be the last.


The Muslims should remember that while we may have our political differences and  may loudly protest our government and its actions, the next serious attack on the American people will result in almost unimaginable consequences. Personally, I would return  Mecca, Medina and the capital city of Saudi Arabia into the desert from which it sprang. Letting Allah sort out the militant Muslims from the moderate Muslims who said nary a word, nor lifted a finger to stop their own people from bringing about their own destruction.

On this day …


-- steve

P.S. I strongly believe that the Ground-Zero Mosque equals stealth jihad and the entry of sharia law to govern Mosque members.

Explain why:

- The choice of the location is near Ground Zero;

- The planned grand opening date of September 11, 2011, ten years to the date after the attacks; and

- The choice of the name “Cordoba House” — The first mosque in Spain was built by the Islamic conquerors in Cordoba?

“Nullius in verba.”-- take nobody's word for it!

“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw

“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”

“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS

"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius

“A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell

“Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar

“Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS


For those of you who enjoy the almost effortless delivery of streaming audio and video content on the Internet  …

Today is a sad day for our nation and it is a shame that very few people know,  according to the FAA investigation, that it is believed that the first man to die at the hands of the 9/11 hijackers was Danny Lewin, an American born in Colorado and brought up in Israel.

Danny was a brilliant computer researcher whose research at MIT resulted in the algorithms for managing internet traffic. His work was the technology behind the company he co-founded, Akamai Technologies (Hawaiian for Smart or clever), one of the least advertised and most successful Internet companies in the world. A company devoted to providing rich content almost effortlessly to thousands of  simultaneously users.

The first man to die …

Danny was aboard American Airlines Flight 11 (inbound from Logan Airport in Boston with hijack group leader Mohammad Atta on board) and the FAA believes that he was the first man killed as he attempted to foil the hijackers.

This was the plane that first hit the North Tower at 8:46 a.m. on that fateful morning. One of the flight attendants managed to communicate with the Airlines base during the hijacking and was able to relay that two flight attendants were stabbed and Danny’s throat was cut while attempting to intervene in the hijacking.

Danny was probably not unaware of the dangers as he sat near Mohammad Atta and possibly in front of another hijacker.

And he was not an ordinary passenger. Along with being a brilliant and rich computer entrepreneur, Danny was also  member of Israel’s elite Sayeret Matkal group in the Israel Defense Force for four years. Same as Benjamin Netanyahu and his brother Yonatan who led the successful raid on Entebbe. And being fluent in Hebrew, English and Arabic, Danny most certainly knew what was being shouted back and forth in the aircraft. 

Bottom line …

I could provide further details of the hijacking and recap Danny’s almost magical life, but the bottom line is that he was one of us, a man with a  common touch, willing to talk with anybody about any subject.

It should be noted that this single man contributed more to modern society than all of the religious crazies living in Muslim nations.

If there are any lessons to be learned from Danny’s death, they are:

one, life is fragile -- no matter how smart, wealthy or well-connected you might at any time be the victim of circumstance;

two, there exists in this world, hundreds of thousands of religious crazies who are willing to trade their lives to cause suffering, death and destruction to those whom they believe are their religious and ideological enemies; and

three, the government’s bureacracy is often so slow, inefficient and wound up in turf and budget wars that they can hardly connect the dots – and when they do – are afraid to take decisive action. Not always, but enough to be troublesome to ordinary Americans.

Had any of these people had access to atomic weaponry, destroying New York, Chicago or Los Angeles would not bring a second thought.

Danny led the way – fighting against a clearly defined enemy.

Do not let the far-left liberals in our government convince you otherwise: unless Islam is reformed it represents a clear and present danger to both America and the non-Muslim world.

We need to elect leaders and keep our eyes open from those who pretend they are friends of the United States, Saudi Arabia and Pakistan both come immediately to mind. There are no moderate Muslims – and if there are, they are ineffective in controlling the crazies among them.

We need to understand that our Constitution is not a suicide pact – and that we can take decisive action against religious threats as if they were any other enemy combatant.

“Vigilance and Peace Through Strength” are concepts that are not well understood by the democrat party and its far-left liberal Marxist infiltrators.

Unfortunately, I am not even sure that we can depend on the President of the United States, Barack Obama, and his fellow travelers to protect America from its enemies both foreign and domestic.

Now is the time to honor both nations dear to Danny: America and Israel. It is what he would have wanted and what he died fighting for.

Rest in Peace Danny

“Nullius in verba.”-- take nobody's word for it!

“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw

“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”

“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS

"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius

“A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell

“Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar

“Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS

General Motors IPO: I smell a rat ... (updated)


From Investor's Business Daily, we see

"Yes, last week's GM IPO did fetch $33 a share, somewhat north of what was expected. But was it a success, really?"

"Start with the IPO. American taxpayers ponied up $50 billion to bail out GM, in exchange for which we got a 61% share in the company. In the IPO, we cut our government holdings to 33%, netting an estimated $13.6 billion or so. Good deal? Check the math. The U.S. lost an estimated $9.4 billion on the deal."

Worse than this is the claim GM made earlier that it had paid back its bailout 'in full, with interest, five years ahead of the original schedule.' As Reason's Nick Gillespie pointed out, GM 'repaid' its loan with other taxpayer-provided bailout funds. It was another useful lie, a fraud, all intended to show GM on the mend, thanks to the help of the federal government.

Continue reading this sad tale of governmental misdirection here.

Original Blog Entry ...

The people who created the problem are now in charge of its solution …

One needs only to review the Obama Administration’s allegedly illegal and imprudent handling of the General Motors takeover to be suspicious of their motives, timing and actions.

By what Constitutional authority does the President of the United States have to remove the President of a private corporation who is answerable only to his stockholders through the corporation’s Board of Directors?

By what Constitutional authority does the Administration have the right to circumvent civil law and place the unsecured claims of the unions ahead of the secured claims of the senior debt holders?

By what Constitutional authority does the Administration stage a coup d'état that avoids a court-supervised bankruptcy for a pre-planned and pre-staged government solution?

Who in the right mind would allow a neophyte with little or no real auto business experience to dictate settlement terms to General Motors? But then again he was married to the head of the former National Finance Chair for the Democratic Party and a committed Obama man.

So given the previously stacked deck, why should I take anything the Obama Administration says at face value?

Reuters is reporting …

“UPDATE 2-Taxpayers likely to face initial loss on GM IPO-sources”

* Treasury to sell first shares below break-even-sources

“The U.S. government is likely to take a loss on General Motors Co [GM.UL] in the first offering of the automaker's stock, six people familiar with preparations for the landmark IPO said.”

“Subsequent offerings of the government's holdings may be profitable depending on how investors trade the newly listed stock, the sources said.”

“But the question of whether taxpayers are ultimately made whole on GM's $50 billion bailout could be left open for years, the people said.”

So if the American taxpayers are the losers, who might be the winners …

Insiders who can actually purchase stocks relatively cheaply in the hopes that an immediate run-up in price will yield a quick profit without too much risk.

The unions who can purchase additional stock relatively cheaply and increase their control over this one proud American icon of industry.

The Wall Street Wizards who are likely to broker the transactions and whose commission income on trading will add to their executive bonuses.

Spinning the story …

“It could take more than three years for the Treasury to sell down its remaining stake in GM after the IPO, one person said. That would push a final accounting into the next presidential term.”

“A decision to price the initial GM shares below the cost to taxpayers would follow the usual Wall Street practice of giving the first investors in a new stock a discount, but it could also help allay investor concern in the face of the slow recovery of the U.S. economy and flat auto sales.”

Here all all the reasons why the stock valuation is so low: Yada, yada, yada. Of course, the true value of the stock is a function of its book value should the assets be sold off in bankruptcy proceedings, the cost and availability of purchase funds and the investor bid-up premium based on nothing more than pure optimism – that is if you discount insider knowledge.

“GM in August filed paperwork for an IPO that could potentially be worth as much as $20 billion, making it one of the biggest IPOs of all time.”

What is it really worth, according to Reuters’ sources …

“Analysts and potential investors have projected a market value for GM of between $50 billion to around $90 billion, based on projections for the automaker's cash flow, comparisons with rival Ford Motor Co and trading in bonds in the old GM which are convertible into shares in the new company.”

“A market value at the high end of that range would be above the roughly $70 billion in market capitalization that GM needs to achieve for the U.S. government to break even on its $43 billion remaining investment in the automaker.”

“But IPOs typically price at a discount of 10 percent to 15 percent to theoretical fair value to reward investors for taking a risk on a new issue and pave the way for future stock floats. In tough market conditions, that discount can be even larger.”

“Another of the sources said the discount could be as much as 20 percent on the GM IPO compared with the U.S. Treasury's break-even point.”

"You have to sell people on the notion that there is an upside to what they are buying," one of the sources said.”

But it is quite another thing to build-in a predictable upside to reward those in the enviable position to purchase stock at the opening levels; later to resell it for a profit. This is the definition of rigged speculation, rather than preparing an investment opportunity.

“The U.S. Securities and Exchange Commission is now reviewing the automaker's S-1 filing.”

But can you even trust the SEC? An open-ended question given its historical reluctance to do its job (think Bernie Madoff where they were handed the case on a silver platter years before the crash) and the fact that the administration’s agency is headed by a hyper-partisan democrat.

The current chairman, Mary L. Schapiro is a democrat and the former chairperson and CEO of the Financial Industry Regulatory Authority, the securities industry self-regulatory organization for broker-dealers and exchanges in the United States. And we all know about self-regulation (wink-wink, nod-nod). Plus, she is not without controversy regarding her actions.

“In 2009, under the direction of Schapiro, the SEC attempted to settle a case with Bank of America regarding the disclosure of bonuses paid to Merrill Lynch executives just before their take over by Bank of America. U.S. District Judge Jed Rakoff threw out the proposed $33 million dollar settlement saying it ‘does not comport with the most elementary notions of justice and morality.’” <Source>

Can you trust what the government is saying?

“The U.S. government pumped $49.5 billion worth of taxpayer money into the automaker and took nearly 61 percent of its common stock.”

GM has paid back $6.7 billion in debt to the Treasury and returned another $700 million in interest and dividends. The U.S. government also holds $2.1 billion in perpetual preferred shares in the automaker.”

“That leaves the government with a roughly $40 billion investment in the GM common stock that will debut in an IPO along with a new class of preferred shares that will convert into common shares under a mandatory provision.”

One might ask where the money came from if not from car sales – even with the government’s “cash-for-clunkers” incentive program. Some say it came from manipulation of government TARP (Troubled Asset Relief Program).

"Mr. Neil Barofsky, the Special Inspector General for TARP, testified before the Senate Finance Committee. During his testimony Mr. Barofsky addressed GM’s recent debt repayment activity, and stated that the funds GM is using to repay its TARP debt are not coming from GM earnings. Instead, GM seems to be using TARP funds from an escrow account at Treasury to make the debt repayments.” <Source>

Someone is not telling the whole truth and it appears to be General Motors and the White House.

Bottom line …

We need to clean house – remove the corrupt democrats and their special interest cronies – replacing them with “honest brokers” who serve “we the people.”

Let’s start draining the swamp in November – by restoring constitutional checks and balances to the Congress. No more democrats to carry Obama’s Marxist agenda and those former Goldman Sachs cronies who are salivating over a guaranteed General Motors stock play.

-- steve

Reference Links …

UPDATE 2-Taxpayers likely to face initial loss on GM IPO-sources | Reuters

Obama to GM CEO Wagoner: You're Fired!

“Nullius in verba.”-- take nobody's word for it!

“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw

“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”

“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS

"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius

“A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell

“Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar

“Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS

I like my mailman, I hate his union ...

USPS on Wednesday kicked off collective bargaining talks with the American Postal Workers Union, which represents 211,000 agency employees. Negotiations with the National Rural Letter Carriers Association, which includes 67,000 career and 48,000 non-career workers, are scheduled to begin Sept. 13. Current contracts for both unions expire Nov. 20.

It is no secret that I oppose public employee unions – mostly because they are an antiquated, Marxist-infiltrated political construct which promotes corruption and collectivist ideology in almost everything it touches.

Be very clear, I am not opposed to the workers, only their corrupt leadership. The leadership that enjoys the salaries, perks and privileges of  major corporate executives – sitting atop the union’s own bureaucracy. 

Leaders which reward politicians for ignoring the best interests of “we the people” by providing campaign funding and voter support and threatening others with “dire consequences” should they put the interests of the people over the union.

Non-sense …

It is counterintuitive to allow the functions of government to be controlled by entities which openly advocate the Marxist collective over the individual. Rewarding seniority instead of individual merit and achievement. Promoting work norms and discouraging members from outstanding performance. With a result that has traditionally reduced productivity while incurring higher costs and more chaos and confusion. All at our expense.

Which brings me to a fundamental question: why do we need public employee unions?  Protection from what?

Why my mailman needs protection from a government “of the people, by the people and for the people” is beyond me. What protections does he require that he cannot obtain as can every other private sector worker with a grievance?

He is not a coal miner faced with life-and-death safety violations. He does not face any additional dangers that are not faced by any other hardworking private sector employee that provides customer-facing services.

The truth be told, he is an employee of a buggy whip manufacturer who is seeking to maintain his standard of living while his company’s business model becomes more and more obsolete. The union protection he seeks is job security and guaranteed benefits – something that is increasingly not being offered in the more competitive private sector. And the unions are capitalizing on his fear of having to live and compete in the real work – to their benefit and political ideology.

Arrogance …

Even as our economy disintegrates and the private sector is suffering from the rules and regulations imposed by union-controlled politicians, union members are not sharing the sacrifice or pain  being experienced in the private sector. And their leadership is arrogantly demanding more.

Even though we can see that the politicians have created a privileged class of workers --  whose lack of performance only leads to the employment of more unionized workers – I find it ironic that they portray themselves as victims of society and “the man.” Truth be told, they are the functionaries of “the man” and seek to oppress “we the people” with the rules, policies and procedures which give reason and meaning to their very existence.

Consider how many union workers shirk their normal duties during business hours only to capitalize on the overtime necessary to finish their work? And nobody calls foul – they just sit there and listen to the unions demanding more money, benefits and control over the workflow.

Don’t believe me, listen to a union leader …

In an interview with Government Executive, APWU [American Postal Workers Union, which represents 211,000  employees]  President William Burrus said he is guardedly optimistic about collective bargaining negotiations, given the Postal Service's financial woes and declining volume of mail. But he plans to ask for additional wages and benefits for his members, he said.

"More -- more control over activities at work, more money, better benefits -- we want more," said Burrus. "We will try to fashion our proposals to reflect the entitlement to more." <Source>

So why are we openly tolerating a union which is demanding more money, more benefits and more control over the work process at a time when the United States Postal Service is serving fewer and fewer people who are relying on alternative methods of communications. For general conversation, we have both wireline and wireless telephone, internet messaging and e-mail. For shipping physical packages, we have common carriers such as FedEx and UPS.

Note: The unions controlling UPS are going so far as to demand that the government penalize FedEx because it is operating under a different business model and union; allowing it to achieve significant cost savings and allowing them to offer lower prices to the consumers. The essence of  “capitalist” competition. 

Typical union behavior is not concerned about profit through lower costs and superior performance, it wants profits and larger wages through government-mandated tariffs and fees. And they want FedEx to play by the rules restricting UPS from competing for the value-conscious consumer’s business.

I am not the only one objecting …

Consider an editorial in Investor’s Business Daily which asks much the same question …

“Entitlement to more? By what standard does he believe the workers of a failing ‘business’ are entitled to more, let alone a job? Neither jobs nor high and ever-escalating wages are rights. But that's the union mindset: Demand more no matter what difficulties a business, or in this case a government-protected monopoly, is facing.”

You decide if the following is an example of the union’s leadership acting in its own self-interest and not in the best interests of its members?

“That same mindset believes that no jobs is better than moderate- or low-paying jobs. In just the last year, unions helped kill a mall project worth 2,220 jobs in the Bronx because the developer wouldn't guarantee that all tenants would pay workers at least $10 an hour. They also set a GM plant in Indiana on course to be shut down because members refused to take a pay cut.”

Why the unions need the democrats …

Its payback time. In return for providing major campaign funding and voter support for the democrats, they need the democrats to go beyond the billions that they have provided through the financial stimulus and the healthcare initiative – to pay for at least a trillion of unfunded pension obligations which exist in both the private and the public sector.

Whether through corruption, mismanagement or just the vagaries of the declining economy, pension funds are woefully underfunded, some say to the tune of at least $3 TRILLION dollars.

“States report that their public-employee pensions are underfunded by a total of $438 billion, but a more accurate accounting demonstrates that they are actually underfunded by over $3 trillion, writes Andrew G. Biggs in a new AEI Retirement Policy Outlook. The accounting methods that states currently use to measure their liabilities assume plans can earn high investment without risk.” <Source>

The unions need the democrats in order to pass legislation allowing their pension funds to be guaranteed by a government entity – thus insuring that the taxpayers will pick up the costs for this privileged class of workers.

How do you feel about working harder and harder for less and less – so your local government workers can live like royalty while you continue to scrape and beg to provide for your family?

The great hold-up …

Of course, if you fail to voluntarily surrender your wallet, meet Los Angeles Sheriff Lee Baca who threatens to release prisoners into your neighborhood to meet the budgetary challenges of running his department.

Somehow, politicians and the unions are great at telling you the services of front-line first-responders: the police, firemen, paramedics and medical personnel will be cut. Why does no one stand up and demand that thousands of cubicle workers and functionaries be terminated before public safety is compromised. Isn’t that what government is really about: public safety – not insuring benefits for politicians, special interest and their co-dependent union friends.

Investor’s Business Daily also notes:

“Making matters worse is a Democratic Congress that owes unions political favors and a White House that told the United Nations High Commissioner for Human Rights that labor organizing is a human right in need of expansion in the U.S.”

With Barack Obama, a Marxist in the White House and a democrat-controlled Congress, “we the people” face a clear and present danger from the corrupt practices and socialist ideology being put forth by both our government and the public employee unions. A danger which should be met with political resistance lest our beloved country become a cross between France and Mexico.

Bottom line …

I like my mailman, but not enough to sacrifice the health and safety of myself and my family in order to provide him with a privileged existence – not earned by commensurately competing for employment by offering a unique and valuable service – but by being a government functionary in a union/politician-controlled bureaucracy.

I do not want to find myself working harder and harder for less and less – and face a longer offset to retirement – in order to satisfy the needs of a pampered, privileged class of public employees.

We need to restore Congressional checks and balances before we find the Treasury looted and our America bankrupt.

We need your vote people – not for Republicans or Democrats, but for “honest brokers” to serve “we the people.” We must insure that there are political consequences for those who served us poorly, failed to enforce the financial laws and who are now being paid to “reverse the financial and social difficulties they themselves left behind – earning even more millions for cleaning up their own mess.

November is rapidly approaching. Vote as if your life depended on it – because it surely does. And if you remember nothing else in the ballot-box, the democrats are responsible for this fiasco. They took a bad situation, and while promising us they knew how to fix it, made it infinitely worse.

Also beware of the mainstream media which, to this very day, refuses to report the whole truth to the American public lest their corporate owners be denied the use of the public airwaves and other financial considerations.

Do what is right – revolt against the democrats and restore checks and balance to our corrupt and lopsided government.

-- steve 

Reference Links …

Check's In The Mail - IBD -

Postal Service looks for ways to reduce labor costs

UPS vs FedEx: Labor law as a corporate weapon

“Nullius in verba.”-- take nobody's word for it!

“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw

“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”

“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS

"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius

“A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell

“Fere libenter homines id quod volunt credunt." (The people gladly believe what they wish to.) ~Julius Caesar

“Describing the problem is quite different from knowing the solution. Except in politics." ~ OCS