View Full Version : Deja Vu

Constitutionally Speaking
11-07-2008, 04:20 AM
Here in Michigan, my home state, we had a model of good state government. The Republican governor left our state with a budget surplus and a rainy day fund for emergencies. In addition, our State was at the TOP of the list in creating jobs and we competed for, and often won the prize for the lowest unemployment rate.

After our Republican Governor left us because of term limits, the Unions bought the elections here and we were saddled with a photogenic, and charismatic Democrat who talked about change.

We got change all right.

We got a single state recession and both the surplus and the rainy day fund were spent on payoffs to Democrat constituencies.

Last year our government shut down over a fight about the budget deficit. The Democrats wanted to raise taxes to fix the problems and, being in the majority they eventually got their way. What happened??? That tax increase that was supposed to cure all of our budgetary ills failed to do so. We again have a budget that is hundreds of millions of dollars in the red.

I thought all of those tax increases they forced us to pay last year were supposed to solve our budget shortfalls???

Instead we get the TRUTH. Tax increases never raise the amount of money the Democrats expect because they DRIVE BUSINESSES and JOBS out of the state (or Country). It leads to a downward economic spiral.

In our ignorance, we are doing the same thing on a national basis.

The politics of envy and hate for "the rich" is like cutting off your nose to spite your face. It does nothing other than satisfy the sense of schadenfreude that those pre-disposed to jealousy and hatred (hyped up and exploited by the propaganda of the left), have.

Yep, let's stick it to "the rich" - will we never learn. Michiganders ESPECIALLY should have learned about how wonderful this Democrat economic plan works.

Everyone who voted Democrat will DESERVE what they have coming. Problem is, those of us who didn't will suffer also.

Every issue we currently have with the national economy can be traced to liberal policies - the housing crisis, at its very base was caused by government interference, by force and by incentive, with the mortgage industry. They encouraged, pressured and forced banks to make loans that would NEVER have been made under free market conditions.

They then multiplied those ills by pressuring, encouraging and forcing the quasi-governmental corporations of Fannie Mae and Freddie Mac to guarantee those loans with OUR money backing them up. We then again compounded the problems by having Ginnie Mae guarantee the derivatives the brokerage houses created to market these bad loans.

As bad as this was, none of it would have imploded - UNLESS the economy went bad, and that the Democrats ensured when they refused to let us explore and drill for the oil we KNOW exists RIGHT HERE in the United States.

Ten years ago it wasn't just ANWR that was put off limits. The Dems and the entrenched liberals in government dismissed this oil as not being significant enough to effect prices. IGNORANTLY saying it was only 5% of the total demand. They forget that the law of supply and demand is not about supply in a vacuum and demand in a vacuum. It is the RELATIONSHIP of supply to demand that matters. In the year 2000, worldwide supply of oil exceeded demand by roughly 1 million barrels per day. Earlier this year - at the peak of oil prices, instead of a surplus of oil, we had a shortage of oil - in the amount of @1 million barrels of oil per day.

That "puny" and "insignificant" 1 million barrels of oil per day that ANWR would be producing RIGHT NOW, amounted to 100% of the worldwide supply needed to offset the shortage. Offshore drilling would have provided the other million barrel per day needed to return to the 1 million SURPLUS we had when prices were in the $60-$80 per barrel range. In those two areas ALONE we could have been producing enough oil to stave off the price increases in oil that led to the rising costs of EVERY consumer good.

The price increases in gas and consumer goods - brought on by the high oil prices sapped the disposable incomes of our families. Those risky loans?? Remember them?? Well, now, with these increased prices, families began having trouble making payments and they began to default on the loans they took out.

ALL of this is the result of LIBERAL policies that interfere with the free market. They encouraged the banks to make bad loans, when that didn't work the "community organizers" demonstrated and pressured the banks to make bad loans. When that didn't work, they SUED the banks to FORCE them to make bad loans. They then loaded the gun by encouraging/pressuring and forcing the Fannie/Freddie and Ginnie's to remove the market risk by guaranteeing those bad loans and the security derivatives. They then struck the match by prohibiting the drilling for oil and letting the free market work to keep oil prices low.

Many here and elsewhere, argued with me about oil prices earlier this year and how insignificant our own oil reserves are.

We conservatives told them that all it would take to get prices back down to the $2 range was to return to the 1 million barrel per day surplus we had in 2000. We could do it by drilling or by "conservation" - or both.

Conservation had economic consequences and we said so at the time. Guess what, the recession forced on us by these high oil prices achieved that reversal in the supply/demand equation I was talking about – and prices have followed. Just like we conservatives said. The consequences of failing to drill, however, hurt REAL PEOPLE and caused the loss of TRILLIONS of dollars worldwide. TRILLIONS of dollars - taken not from stockbrokers, but from retirement funds and college funds of normal everyday Joe Six-packs (or Plumbers).

We now see the Republicans were RIGHT and have been RIGHT - but the press and the Democrat operative stifled and shut down debate on this. Just like they stifled and shut down debate about how the REPUBLICANS were warning of the mortgage crises and were TRYING to stop it way back in 2003. At every turn the Democrats (of both political parties!) prevented the legitimate oversight measures we tried to take to stop the abuses.

Legitimate oversight of Fannie Mae, Freddie Mac and Ginnie Mae - stopped by the Democrats.

Drilling for oil to keep it and other goods inexpensive?? - Stopped by the Democrats.

Encouraging/pressuring and forcing the bad loans?? Yep, that too.

All courtesy of the Democrats and a few liberal Republicans that sided with the Dems.

And now with Obama, we are going to get MORE government forcing bad loans (he was one of the lawyers who SUED Citibank to force them to make bad loans).

WE are going to get MORE prohibitions and deterrents to drilling our own oil. He is against drilling for our own oil - at least where we actually have oil. And his Windfall profits tax (as it has done in the past) will drive oil production out of the country. Creating bigger problems economically here at home.

And we will see Fannie Mae and the rest of the quasi-governmental corporations continue to be used as slush funds and payoffs to those who support the liberal agenda. Obama was the largest recipient of Fannie Mae donations BY FAR during the years he was in the Senate and the board and officers of these organizations are filled with Democrat operatives like Raines, Gorelick (remember her??) and our own Michigander (and supreme meddler), Joel Ferguson. These folks get million dollar salaries to perpetuate the liberal agenda.

Yet we are suckered by the class warfare anti-business propaganda put out by the Dems and their adoring press.

As I said earlier, those dumb enough to vote Democratic with HOPE of CHANGE, deserve what is coming, because they REALLY voted for more of the same, but unfortunately, those of us who did not, will have to suffer along with you.

11-08-2008, 12:06 PM
Yesterday Michigan, Today the US. Ain't the Dems great.