Wednesday, July 27, 2011

Is the Media to Blame for the Debt Crisis. Why Not. It Certainly Isn't Obama

The causes of the current economic crisis are many, but we should look at how the mainstream news media influenced the crash of 2008. We, of the social media understand that NBC, ABC, CBS with FOX and CNN are biased in their reporting of the current Debt Ceiling crisis. We don't need a Congressional investigation, just channel surf and you will find vastly different information.
So, how did the news media effect the crash of 2008?

An article by by Andrew Klavin explains it all:

In the book Reckless Endangerment: How Outsized Ambition, Greed, and
Corruption Led to Economic Armageddon
, authors Gretchen Morgenson and
Joshua Rosner tell how, in the early nineties, faulty or skewed studies by ACORN
and other groups fed the idea that there was pervasive racial bias by mortgage
lenders, with blacks and Hispanics being unfairly rejected for loans.

“The findings lit up the media, confirming many people’s suspicions
about banks’ lending practices,” the authors write of one such study. In fact,
properly interpreted, the data suggested that banks were making their loans not
on the basis of race but on the basis of credit-worthiness. But as the
misinformation confirmed left-wing ideas, the media pressure was on for a
government fix.

To put it in simplified but not inaccurate terms, what
happened as a result was this: The Clinton administration essentially gave
orders to lenders to give unwise loans to people based on their race. Those
orders required banks to adopt bad lending practices. The dangerously easy
credit made house prices rise. And unscrupulous sharks on Wall Street and
elsewhere rushed in to make a profit off the housing bubble by luring investors
into funding the crummy mortgages. Thus the poison of the government-mandated
bad loans flooded the system. When housing prices inevitably fell, the system

At the center of all this were Fannie Mae and Freddie Mac, dishonestly run lenders with government backing and a mandate to make housing somehow affordable to those who couldn’t afford it. Republicans George W. Bush and John McCain, warned about the coming disaster and calling for regulatory legislation to bring the madness at Fannie Mae under control. Democrats, most especially and most perfidiously Congressman Barney Frank of Massachusetts, repeatedly claiming nothing is wrong.

If our mainstream news media had not been so politically one-sided, all of this might have been prevented. The reports that falsely claimed racial discrimination in lending could easily have been debunked. The entire premise of giving loans to people who couldn’t afford them might have been questioned.

And the warnings of Bush and McCain would have been given at least equal weight. It was the left-wing assumptions of the news media that prevented proper reporting and created at least some of the pressure on politicians to act irresponsibly — and then provided them with the cover of silence when they did.

The chief political correspondent of ABC News is George Stephanopoulos, a former Democrat operative who says Barack Obama’s Mr. Bean presidency is going “remarkably well.” NBC anchorman Brian Williams once implied Jimmy Carter was the greatest American president of all time and suggested the founding fathers were essentially terrorists.

And CBS has just replaced the leftist Katie Couric with Ted Baxter lookalike Scott Pelley, who once called Mahmoud Ahmadinejad “incorruptible” and compared global warming skeptics to holocaust deniers.

They work in an echo chamber of agreement where opinions are more likely to become radicalized and important stories that challenge leftist assumptions simply become invisible. For the reasons given above, this echo chamber is partially to blame for our current economic troubles, and is currently contributing to future woes by skewing the story of the debt ceiling negotiations against Republicans rather than telling it from both sides.


Tuesday, July 26, 2011

Cut, Cap & Balance Act, Is It Enough?

Cut, Cap & Balance Act (CCB Act), Is It Enough? In a word NO. Don't get me wrong it is a great start in the right direction and that is why I support the CCB Act. But, we can do better and will have to because of the economic conditions that we unfortunately find ourselves in today and for the foreseeable future.

Let's review what the CCB Act actually is.


Cuts total spending by $111 billion in FY 2012. The savings is divided as follows:
  • Reduce non-security discretionary spending below 2008 levels, which saves $76 billion.
  • $35 billion cut to non-veterans, non-Medicare, non-Social Security mandatory spending.
  • Defense budget at President's level.
"Cuts total spending by $111 billion in FY 2012." This is a good start but remember we are expected to run a 1.5 Trillion dollar deficit in 2011 and will probably be close to 1 Trillion dollars in 2012. We still have a long wway to go.

I have problem with the vague "Defence budget at President's level." I'm not sure exactly what that means. Hopefully that doesn't mean what ever the President determines is an acceptable level of spending for the defence of our coutry and the service men and women who serve. I personally do not trust this President to do the right thing. They say it will be at the same level the House passed for the FY 2012 budget.


Total federal spending is scaled back based on the glide path for the fiscal years below:
  • 2012, 22.5% of GDP.
  • 2013, 21.7% of GDP.
  • 2014, 20.8% of GDP.
  • 2015, 20.2% of GDP.
  • 2016, 20.2% of GDP.
  • 2017, 20.0% of GDP.
  • 2018, 19.7% of GDP.
  • 2019, 19.9% of GDP.
  • 2020, 19.9% of GDP.
  • 2021, 19.9% of GDP.

I understand the theory behind capping it at 20% of the GPD. Here is their reason. "This would place spending in line with average spending over the last 30 years." Every year over the last 30 years except for a couple we have had a deficit. So here is my question. If we keep spending at 20% of GDP and we are still running a deficit does that mean we will have to increase taxes?


Requires the passage of a Balanced Budget Amendment (BBA) before raising the nation's debt limit.

This sounds great but the devil is in the details. Here are the details they list on BBA.
The legislation would require that any Balanced Budget Amendment include the following:
  1. A balanced budget component;
  2. A super-majority requirement to raise taxes; and
  3. A limit on spending as a percentage of GDP.
This means they do not have a BBA drafted yet. I like the outline in general but I want to see the details. I hope it will included a "Budget Line Item Veto."

All things considered it is a good start but I believe you will agree that it is just a start! November 6, 2012, cannot come soon enough!


Sunday, July 24, 2011

July 24, 2011, A Day Of Reckoning?

We all knew that the "Day of Reckoning" was coming for our fiscal irresponsibility at the Federal level. Has that day arrived? According to Speaker John Boehner today Sunday, July 24, 2011 may be D-Day for the Debt Ceiling negotiations.

At 6:00pm ET today the markets will open in Japan to begin the trading week. The fear is without an agreement on a plan to raise the Debt Ceiling and Cut Spending that the markets will react very badly ala the TARP vote witch the failure of that first vote on TARP caused the Dow Jones Industrials to fall over 777 points which is the worse single day point loss in history. Now we all I know that most of us including myself and many who voted for TARP did not like that legislation at all and were very much against it. The last thing the leaders in Washington want to see in a flat economy is a market free fall like the first TARP vote. They are very fearful that a market plunge like that would send us deeper into a recession that we have been trying very to get out of despite the efforts of President Obama's agenda.

Folks what we are watching unfold before us is the "Ultimate High Stakes Poker Game." They are eyeball to eyeball. Who is bluffing? The President? The Senate? Or is it the House? We may very well know by 6pm today.

One thing is certain, if it wasn't for the "Patriot/Tea Party Movement" that rose up in the winter of 2009 none of this would be going on today. They would have hiked the Debt Limit without any talk about cutting spending. They would not have extended the so called "Bush Tax Cuts." They would be even further along in spending us into oblivion than they are today.

I am rather certain that the "Patriot/Tea Party Movement" will not get everything we would like to see happen with the budget. We want REAL CUTS! NO NEW TAXES! BALANCE THE BUDGET! The reality of Washington DC is that we have real influance in the House, only enough in the Senate to make things difficult for the Democrats and absolutly none in the White House which makes November 2, 2012, all that more important.

Regardless what the outcome may be the "Patriot/Tea Party Movement" has become a major player in the politics of Washington DC and the World. The "Patriot/Tea Party Movement" could not have accomplish this achievement if it wasn't for the Patriots who flooded the Congress with phone calls and emails, held rallies, marched on DC and voted in large numbers on November 3, 2010.

So who is going to blink in this "Ultimate High Stakes Poker Game?" For the sake of "We The People" let's hope it is Barry and the Democrats!


Friday, July 22, 2011

U.S. Government Ends Chrysler Investment With $1.3 Billion Loss

Wow! What a surprise! I never saw that one coming!

Published July 21, 2011,|

The U.S government has sold its shares in Chrysler LLC at a likely loss of $1.3 billion in taxpayer money, the Treasury Department said Thursday, announcing the end of a controversial investment that resurrected the troubled auto company.

Italian automaker Fiat SpA, which has run the company since it emerged from bankruptcy protection in June 2009, purchased the U.S. government's remaining 98,000 shares in the auto company for $560 million.

The financial loss irritated Republican lawmakers."I am deeply disturbed to learn that the Obama administration left $1.3 billion taxpayer dollars on the table in resolving its bailout of Chrysler," said Rep. Darrell Issa, R-Calif., chairman of the House Oversight and Government Reform Committee.

"The administration has sold out an American icon to a foreign company using TARP funds underwritten by taxpayers. Now they are essentially give that same company $1.3 billion of taxpayer money," he said.

"At a time when American taxpayers must make tough choices to repay their mortgages -- even on houses worth less than they paid -- it is unfathomable that Italian automaker Fiat and its subsidiary Chrysler got away with repaying less than the full amount borrowed from the U.S. government," he added.

Treasury provided a total of $12.5 billion to Chrysler and its financing arm after the recession hampered auto sales and sent Chrysler and General Motors to the brink of collapse. The funds came from the government's $700 billion bank bailout fund.

Since then, $11.2 billion of the assistance has been repaid, Treasury said. Chrysler repaid $5.1 billion in loans from the government in May. But the $1.3 billion remaining is unlikely to be recovered, Treasury said.

"With today's closing, the U.S. government has exited its investment in Chrysler at least six years earlier than expected," said Tim Massad, assistant secretary for financial stability.

"This is a major accomplishment and further evidence of the success of the administration's actions to assist the U.S. auto industry, which helped save a million jobs during the worst economic crisis since the Great Depression."

Chrysler has made a remarkable turnaround from two years ago, when it was rescued by the government.

The company earned net income of $116 million in the first quarter and is forecasting 2011 earnings of $200 million to $500 million. Under the leadership of Fiat CEO Sergio Marchionne, the company has cut costs and revived its sales by refurbishing most of its lineup of Jeep, Chrysler, Dodge and Ram vehicles.

Its sales rose 30 percent in June compared to the previous year.

The purchase of the government's stake gives Fiat 52 percent ownership of Chrysler. That's likely to rise to 57 percent before the end of the year when Chrysler begins producing a 40 mpg small car in the U.S.

Fiat received a 20 percent stake in Chrysler after the bankruptcy in exchange for management expertise and technology. The Italian automaker has gradually raised its stake by meeting benchmarks set by the government.
The Associated Press contributed to this report.
This is just a small example of why the Federal Government should NEVER bailout anyone. The whole idea of the bailout was to keep the automaker afloat and keep it from going into bankruptcy. How did that work? Not so good.

I believe that the Obama Administration's main goal was to protect the Unions at the expense of everyone else. The Obama Administration broke every bankruptcy law in the book just to protect their union buddies.

November 2012 cannot come soon enough!


Wednesday, July 20, 2011

Last night, I attended the Christians United For Israel gala in Washington, DC. Before dinner, while a band played, we waved American and Israeli flags, with images of Israel displayed on 14 large screens . Some danced the Jewish Hora and some of us attempted to dance the Hora. I won't name names...
Pastor John Haggee reported that 5,000 were in attendance for the conference. I was told by one of the singers that 9,000 were there for the gala.

Glenn Beck as the Keynote speaker said:
If the world goes down the road of dehumanizing Jews again,
“then count me a Jew and come for me first.”

Standing up for Israel “may be the cause of our lifetime. Each of us will be judged as a people and a nation by how we treat Israel. This still is America 2011. We are not the Christians of the Crusades. We are the Christians United for Israel.”

Here are some highlights of Glenn's speach:

Beck said that he had just toured the Auschwitz–Birkenau concentration camps and there, he realized how the rights in the Declaration of Independence were crucial to preventing such evil from occurring.

“The founders had the answer 150 years before Hitler showed up,” he said. But he realized that the Jewish people were not able to guard those rights with no home base until they had the creation of Israel. “No one can protect your rights better than you … To rely on others is to ensure economic slavery at best, and death camps at worst.”

CUFI is supporting a college program featuring the discrimination of Israel. Beck donated $10,000 and is working on his own college based education on Israel on GBTV. The following Youtube was shown, please watch:

Pastor John Haggee said that there is a truth Americans don’t want to face: President Obama is not pro-Israel.”

“Mr. President, go tell Russia what to do. Go tell the Chinese what to do. Go tell Iran to stop building a nuclear bomb. The Jewish people are not occupying the land of Israel, they own the land of Israel,” he said. “American should never pressure Israel to give up land for peace, not for any reason, not to anyone, ever.”

"For Zion's sake I will not keep silent,
for Jerusalem's sake I will not remain quiet,
till her righteousness shines out like the dawn,
her salvation like a blazing torch."
Isiah 62:1

Thursday, July 14, 2011

Reid: Cantor should not be in debt limit talks

Ahhhhh, the headline says it all. Anytime Harry Reid doesn't like someone then that person's stock goes up in my book!
It seems to me that House Majority Leader Eric Cantor has been getting under the skin of a few people lately. Like the House Minority Leader Nancy Pelosi, The Senate Majority Leader Harry Reid and yes even POTUS himself Barack Hussein Obama, Mmmmm! Mmmmm! Mmmmm!

Could it be that Mr. Cantor has been actully standing up for what most of us would like to see the Federal Governmnet do and that is "CUT SPENDING!!!" Could it also be that Mr. Cantor is actully making a stand against and saying "NO NEW TAXES!!!"

If that is true then I tip my hat to Mr. Cantor for a job well done so far.

Anytime you get under the skin of Barack Hussein Obama Mmmmm! Mmmmm! Mmmmm!, you deserve the "Golden Oar Award" for stirring the pot if you get my drift.

Tony Hall

Wednesday, July 13, 2011

Hezbollah In Mexico

Tucson Police Department memo from September 2010 has been leaked onto the Internet by hackers, and it warns that Hezbollah has linked up with the Mexican drug lords, and may have a large arms stockpile in the country.

From Frontpage Magazine:

The memo recalls that a member of Hezbollah was arrested in Tijuana in July 2010
who was tasked with setting up a network for the terrorist group. It also mentions the April 2010 arrest of Jamal Yousef in New York City, who told the authorities that he worked with his cousin to steal weapons from Iraq for Hezbollah.

According to Yousef, a stockpile of 100 M-16 assault rifles, 100 AR-15
rifles, 2500 hand grenades, C4 explosives and anti-tank weapons is presently in

The police document says there is a “strong suspicion” that car bombs set off by
the drug lords last summer were created with the help of Hezbollah. On June 23
of last year, Rep. Sue Myrick said that a senior Mexican military officer
informed her that Hezbollah was giving explosives training to members of the
drug cartels. “This might lead to Israel-like car bombings of Mexican/USA border
personnel or National Guard units in the border regions,” her letter to the
Department of Homeland Security cautioned. Myrick’s warning was prescient. In
the first week of July 2010, a car bomb killed four people in Ciudad Juarez that
had “Hezbollah-like sophistication.” Car bombs have become part of the drug war
since then.

Michael Braun, a former Drug Enforcement Agency chief of
operations, said in 2009 that the group utilizes “the same criminal weapons
smugglers, document traffickers and transportation experts as the drug cartels.”
During his July 7 testimony to Congress, Roger Noriega, former assistant
secretary of state for the Bureau of Western Hemisphere Affairs, predicted that
Iran and Hezbollah will carry out an attack on the U.S. using their networks in
Latin America.

“If our government and responsible partners in Latin
America fail to act, I believe there will be an attack on U.S. personnel,
installations or interests in the Americas as soon as Hezbollah operatives
believe that they are capable of such an operation without implicating their
Iranian sponsors in the crime,” Noriega said.

Hezbollah isn’t the only terrorist organization salivating at the instability in Mexico. In February 2010, Anthony Joseph Tracy was arrested in Virginia for his links to al-Shabaab, an al-Qaeda affiliate in Somalia. He is thought to have smuggled at least 270 Somalis into the U.S. through Mexico, few of which have been located or even identified. It is very likely that a number of these Somalis are al-Shabaab operatives, given Tracy’s involvement with the terrorist group. Mexico has
arrested and released members of al-Shabaab on their way to the U.S. before.

Another member of a Somali terrorist network was arrested in San
Antonio. He admitted that he is a member of the al-Ittihad al-Islami terrorist
group and also works with al-Barakat. From June 2006 to March 2008, he made at
least $3,000 for each person he snuck into the U.S., earning up to $75,000 in a
single day. He confirmed smuggling members of al-Ittihad al-Islami, and was
recorded saying that “he believed they would fight against the U.S. if the jihad
moved from overseas locations to the U.S. mainland.”

The South American
terrorist group called the Revolutionary Armed Forces of Colombia (often
referred to as the FARC) has also gotten in on the action. The FARC’s former
leader, Raul Reyes, wrote a letter excitedly discussing his collaboration with
the Mexican drug gangs, projecting a doubling of profits from it. It has been
estimated that the FARC makes $1 billion every year through its partnership with
the Mexican traffickers. The FARC is also doing business with al-Qaeda to ship
cocaine in West Africa.

Over 35,000 people have died in Mexico’s drug war since 2006, yet it is rarely mentioned in the news.

Monday, July 4, 2011

Wounded Warrior Family Support Family Support High Five Tour With Col. John Folsom

On July 2nd, Col. John Folsom came rolling into town on his 18,000 mile High Five Tour across the country to every state capital (including Hawaii & Alaska) to drum up support for the “Wounded Warrior Family Support” project.

The “Wounded Warrior Family Support” mission is to provide support to the families of those who have been wounded, injured or killed during combat operations. The families of our casualties suffer in many ways: some financially, some psychologically.

Wounded Warriors Family Support mitigates their trauma by allowing them to find peace and solace as a family once more in family-friendly resorts that we provide free of charge. The resort condominium that we own in Orlando, Florida are quiet havens where war torn families can reunite and become stronger.

Please Support the families of our Wounded Warriors by making a donation today! Here is a link to their website…

Wounded Warriors Family Support

The Central Virginia Mustang Club had the honor of meeting Col. Folsom at Richmond Ford. Many of us made donations and signed his 2011 Ford Shelby Mustang GT500. Richmond Ford also gave a generous donation along with many of their employees.

When the time came for Col. Folsom to hit the road the Central Virginia Mustang Club had eight Mustangs escorting him down the highway. Most of the Mustang had peeled off by the time they got to Petersburg except for three of us; we escorted him to South Hill, Virginia.

CVMC wishes Col. Folsom and “Wounded Warrior Family Support” happy trails on the rest of his journey.

Thanks to Alan Caraba for reminding us that the Fourth is about Freedom.
"Republicans believe every day is the Fourth of July, but Democrats believe every day is April 15th”
“Freedom is never more than one generation away from extinction.
We didn’t pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same, or one day we will spend our sunset years telling our children and our children’s children what it was once like in the United States where men were free.”
“An almost unbroken 50 years of deficit spending has finally brought us to a time of reckoning. We have come to a turning point, a moment for hard decisions. I have asked the Cabinet and my staff a quetion, and now I put the same question to all of you: If not us, who? And if not now, when? It must be done by all of us going forward with a program aimed at reaching a balanced budget. We can then begin reducing the national debt.”
Second Inaugural Address, January 21, 1985., Ronald Reagan , President, 1981-1989

Michelle Obama: "he NEVER takes a day off!"
But, Uncoverage posts: 'last weekend Obama played his 72nd golf game as president, 11th weekend in a row. It brings a tear to your eye, doesn't it? How HARD he's working...with no days off? waaaaaaaaaaaa.'

Michelle's mantra at all 4 California fundraisers is: Barack is SUCH a hard-worker. Who believes that?

Michelle’s speech to supporters in Los Angeles was hip-deep in hyperbole (my nice way of saying….she LIED.) She actually stood at a podium and said that Barack Obama is working so hard he “never takes a day off.” It was such a ridiculous claim, immediately refuted by liberal and conservative media, that she removed that sentence during her Tuesday fundraisers in the San Francisco bay area.

Keith Koffler of White House Dossier comments: “It’s just not clear to me anymore that the $400,000 a year salary, the chauffeured limousine, the free mansion, the catered meals, and the opportunity to be the most powerful man in the world is enough compensation for what he has to go through. Gosh, all of you out there who are unemployed, count your blessings that you don’t have to work like this.”