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Friday with the ‘hammer – The scapegoat strategy

by Mojambo ( 35 Comments › )
Filed under Barack Obama, Elections 2012, Socialism at October 14th, 2011 - 11:30 am

Dr. K. points out what we here have written about many times – that it is impossible to run on his record so Obama will pivot and run against “the other” i.e. the most productive members of society. His tacit support of the pigs who “occupy” various cities shows that as a real Jacobin – he is playing to the ignorant and violent mob.

by Charles Krauthammer

What do you do if you can’t run on your record — on 9 percent unemployment, stagnant growth and ruinous deficits as far as the eye can see? How to run when you are asked whether Americans are better off than they were four years ago and you are compelled to answer no?

Play the outsider. Declare yourself the underdog. Denounce Washington as if the electorate hasn’t noticed that you’ve been in charge of it for nearly three years.

But above all: Find villains.

President Obama first tried finding excuses, blaming America’s dismal condition on Japanese supply-chain interruptions, the Arab Spring, European debt and various acts of God.

Didn’t work. Sounds plaintive, defensive. Lacks fight, which is what Obama’s base lusts for above all.

Hence Obama’s new strategy: Don’t whine, blame. Attack. Indict. Accuse. Who? The rich — and their Republican protectors — for wrecking America.

In Obama’s telling, it’s the refusal of the rich to “pay their fair share” that jeopardizes Medicare. If millionaires don’t pony up, schools will crumble. Oil-drilling tax breaks are costing teachers their jobs. Corporate loopholes will gut medical research.

It’s crude. It’s Manichaean. And the left loves it. As a matter of math and logic, however, it’s ridiculous. Obama’s most coveted tax hike — an extra 3 to 4.6 percent for millionaires and billionaires (weirdly defined as individuals making more than $200,000) — would have reduced last year’s deficit (at the very most) from $1.29 trillion to $1.21 trillion. Nearly a rounding error. The oil-drilling breaks cover less than half a day’s federal spending. You could collect Obama’s favorite tax loophole — depreciation for corporate jets — for 100 years and it wouldn’t cover one month of Medicare, whose insolvency is a function of increased longevity, expensive new technology and wasteful defensive medicine caused by an insane malpractice system.

[…]

Problem is, this kind of populist demagoguery is more than intellectually dishonest. It’s dangerous. Obama is opening a Pandora’s box. Popular resentment, easily stoked, is less easily controlled, especially when the basest of instincts are granted legitimacy by the nation’s leader.

Exhibit A. On Tuesday, the Democratic-controlled Senate passed punitive legislation over China’s currency. If not stopped by House Speaker John Boehner, it might have led to a trade war — a 21st-century Smoot-Hawley. Obama knows this. He has shown no appetite for a reckless tariff war. But he set the tone. Once you start hunting for villains, they can be found anywhere, particularly if they are conveniently foreign.

Exhibit B. Democratic Sen. Dick Durbin rails against Bank of America for announcing a $5-a-month debit card fee. Obama echoes the opprobrium with fine denunciations of banks and their hidden fees — except that this $5 fee is not hidden. It’s perfectly transparent.

Yet here is a leading Democratic senator advocating a run on a major (and troubled) bank — after two presidents and two Congresses sunk billions of taxpayer dollars to save failing banks. Not because they were deserving or virtuous but because they are necessary. Without banks, there is no lending. Without lending, there is no business. Without business, there are no jobs.

Exhibit C. To the villainy-of-the-rich theme emanating from Washington, a child is born: Occupy Wall Street. Starbucks-sipping, Levi’s-clad, iPhone-clutching protesters denounce corporate America even as they weep for Steve Jobs, corporate titan, billionaire eight times over.

These indignant indolents saddled with their $50,000 student loans and English degrees have decided that their lack of gainful employment is rooted in the malice of the millionaires on whose homes they are now marching — to the applause of Democrats suffering acute Tea Party envy and now salivating at the energy these big-government anarchists will presumably give their cause.

[…]

Read the rest: The scapegoat strategy

Tags: Charles Krauthammer
Posted in Barack Obama, Elections 2012, Socialism | 35 Comments »

Friday with the ‘hammer – Land without peace is a formula for suicide

by Mojambo ( 111 Comments › )
Filed under Israel, Palestinians, United Nations at September 30th, 2011 - 2:00 pm

Dr. K. here gives the history of long-time Palestinian rejectionism. In doing so he points out that territorial disputes are solvable but existential ones (the commitment that one side has to annihilate the other) are not.

by Charles Krauthammer

While diplomatically inconvenient for the Western powers, Palestinian Authority President Mahmoud Abbas’ attempt to get the U.N. to unilaterally declare a Palestinian state has elicited widespread sympathy. After all, what choice did he have? According to the accepted narrative, Middle East peace is made impossible by a hard-line Likud-led Israel that refuses to accept a Palestinian state and continues to build settlements.

It is remarkable how this gross inversion of the truth has become conventional wisdom. In fact, Benjamin Netanyahu brought his Likud-led coalition to open recognition of a Palestinian state, thereby creating Israel’s first national consensus for a two-state solution. He is also the only prime minister to agree to a settlement freeze — 10 months — something no Labor or Kadima government has ever done.

[…]

Abbas unwaveringly insists on the so-called “right of return,” which would demographically destroy Israel by swamping it with millions of Arabs, thereby turning the world’s only Jewish state into the world’s 23rd Arab state. And he has repeatedly declared, as recently as last week in New York: “We shall not recognize a Jewish state.”

Nor is this new. It is perfectly consistent with the long history of Palestinian rejectionism. Consider:

— Camp David, 2000. At a U.S.-sponsored summit, Prime Minister Ehud Barak offers Yasser Arafat a Palestinian state on the West Bank and Gaza — and, astonishingly, the previously inconceivable division of Jerusalem. Arafat refuses — and makes no counteroffer, thereby demonstrating his unseriousness about making any deal. Instead, within two months, he launches a savage terror war that kills a thousand Israelis.

— Taba, 2001. An even sweeter deal — the Clinton Parameters — is offered. Arafat walks away again.

— Israel, 2008. Prime Minister Ehud Olmert makes the ultimate capitulation to Palestinian demands — 100 percent of the West Bank (with land swaps), Palestinian statehood, the division of Jerusalem with the Muslim parts becoming the capital of the new Palestine. And incredibly, he offers to turn over the city’s holy places, including the Western Wall — Judaism’s most sacred site, its Kaaba — to an international body on which sit Jordan and Saudi Arabia.

Did Abbas accept? Of course not. If he had, the conflict would be over and Palestine would already be a member of the United Nations.

This is not ancient history. All three peace talks occurred over the past decade. And every one completely contradicts the current mindless narrative of Israeli “intransigence” as the obstacle to peace.

Settlements? Every settlement remaining within the new Palestine would be destroyed and emptied, precisely as happened in Gaza.

So why did the Palestinians say no? Because saying yes would have required them to sign a final peace agreement that accepted a Jewish state on what they consider the Muslim patrimony.

The key word here is “final.” The Palestinians are quite prepared to sign interim agreements, like Oslo. Framework agreements, like Annapolis. Cease-fires, like the 1949 armistice. Anything but a final deal. Anything but a final peace. Anything but a treaty that ends the conflict once and for all — while leaving a Jewish state still standing.

[…]

Read the rest: Land without peace: Why Abbas went to the U.N.

Tags: Charles Krauthammer, Mahmoud Abbas
Posted in Israel, Palestinians, United Nations | 111 Comments »

Friday with the ‘hammer – The real Obama returns

by Mojambo ( 105 Comments › )
Filed under Barack Obama, Elections 2012, government, Polls, Socialism at September 23rd, 2011 - 2:00 pm

The class warfare, tax raising, anti small business, anti-capitalist, “spread the wealth” Obama has returned. Actually he never really left. Barren of any knowledge of economics and how to create a favorable environment to create jobs, all Obama cares about is his own job and fanning the resents that those who are underachievers have against those who are great achievers. As Dr. K points out – at heart he is a Social Democrat. Obama appeals to a mob mentality of those who have a striking sense of entitlement. As Krauthmamer says “Obama is a member of his base”.

by Charles Krauthammer

In a 2008 debate, Charlie Gibson asked Barack Obama about his support for raising capital gains taxes, given the historical record of government losing net revenue as a result. Obama persevered: “Well, Charlie, what I’ve said is that I would look at raising the capital gains tax for purposes of fairness.”

A most revealing window into our president’s political core: To impose a tax that actually impoverishes our communal bank account (the U.S. Treasury) is ridiculous. It is nothing but punitive. It benefits no one — not the rich, not the poor, not the government. For Obama, however, it brings fairness, which is priceless.

[…..]

He also insists again upon raising marginal rates on “millionaire” couples making $250,000 or more. But roughly half the income of small businesses (i.e., those filing individual returns) would be hit by this tax increase. Therefore, if we are to believe Obama’s own logic that his proposed business tax credits would increase hiring, then surely this tax hike will reduce small-business hiring.

But what are jobs when fairness is at stake? Fairness trumps growth. Fairness trumps revenue. Fairness trumps economic logic.

Obama himself has said that “you don’t raise taxes in a recession.” Why then would he risk economic damage when facing reelection? Because these proposals have no chance of being enacted, many of them having been rejected by the Democratic-controlled Congress of Obama’s first two years in office.

Moreover, this is not an economic, or jobs, or debt-reduction plan in the first place. This is a campaign manifesto. This is anti-millionaire populism as premise for his reelection. And as such, it is already working.

Obama’s Democratic base is electrified. On the left, the new message is playing to rave reviews. It has rekindled the enthusiasm of his core constituency — the MoveOn, Hollywood liberal, Upper West Side precincts best described years ago by John Updike: “Like most of the neighborhood, she was a fighting liberal, fighting to have her money taken from her.”

Added Updike: “For all her exertions, it never was.” But now with Obama — it will be! Turns out, Obama really was the one they had been waiting for.

That is: the new Obama, today’s soak-the-rich, veto-threatening, self-proclaimed class warrior. Except that the new Obama is really the old Obama — the one who, upon entering office in the middle of a deep economic crisis, and determined not to allow “a serious crisis to go to waste” (to quote his then-chief of staff), exploited the (presumed) malleability of a demoralized and therefore passive citizenry to enact the largest Keynesian stimulus in recorded history, followed by the quasi-nationalization of one-sixth of the economy that is health care.

[……]

But this is more than a political calculation. It is more than just a pander to his base. It is a pander to himself: Obama is a member of his base. He believes this stuff. It is an easy and comfortable political shift for him, because it’s a shift from a phony centrism back to his social-democratic core, from positioning to authenticity.

The authentic Obama is a leveler, a committed social democrat, a staunch believer in the redistributionist state, a tribune, above all, of “fairness” — understood as government-imposed and government-enforced equality.

That’s why “soak the rich” is not just a campaign slogan to rally the base. It’s a mission, a vocation. It’s why, for all its gratuitous cynicism and demagoguery, Obama’s populist Rose Garden lecture on Monday was delivered with such obvious — and unusual — conviction.

He’s returned to the authenticity of his radical April 2009 “New Foundation” address (at Georgetown University) that openly proclaimed his intent to fundamentally transform America.

Good. There’s something to be said for authenticity. A choice, not an echo, said Barry Goldwater. The country will soon choose, although not soon enough.

Read the rest – Return of the real Obama

Tags: Charles Krauthammer
Posted in Barack Obama, Elections 2012, government, Polls, Socialism | 105 Comments »

Friday with the ‘hammer – Social Security is a Ponzi scheme that has to be fixed

by Mojambo ( 55 Comments › )
Filed under Economy, Politics at September 16th, 2011 - 2:00 pm

Social Security is a Ponzi scheme by any definition of the term and yet it needs to be fixed and strengthened. Too many people do not have fixed pensions and 401(k) plans. As I see it the problem with raising the social security age is that it freezes jobs for younger people when older people are not retiring early. Also how many employers want a bunch of 70 year olds around the office falling asleep at 2:00 PM at their desks?

by Charles Krauthammer

The Great Social Security Debate, Proposition 1: Of course it’s a Ponzi scheme.

In a Ponzi scheme, the people who invest early get their money out with dividends. But these dividends don’t come from any profitable or productive activity — they consist entirely of money paid in by later participants.

This cannot go on forever because at some point there just aren’t enough new investors to support the earlier entrants. Word gets around that there are no profits, just money transferred from new to old. The merry-go-round stops, the scheme collapses and the remaining investors lose everything.

Now, Social Security is a pay-as-you-go program. A current beneficiary isn’t receiving the money she paid in years ago. That money is gone. It went to her parents’ Social Security check. The money in her check is coming from her son’s FICA tax today — i.e., her “investment” was paid out years ago to earlier entrants in the system and her current benefits are coming from the “investment” of the new entrants into the system. Pay-as-you-go is the definition of a Ponzi scheme.

[…]

Proposition 2: The crucial distinction between a Ponzi scheme and Social Security is that Social Security is mandatory.

That’s why Ponzi schemes always collapse and Social Security has not. When it’s mandatory, you’ve ensured an endless supply of new participants. Indeed, if Charles Ponzi had had the benefit of the law forcing people into his scheme, he’d still be going strong — and a perfect candidate for commissioner of the Social Security Administration.

But there’s a catch. Compulsion allows sustainability; it does not guarantee it. Hence . . .

Proposition 3: Even a mandatory Ponzi scheme such as Social Security can fail if it cannot rustle up enough new entrants.

You can force young people into Social Security, but if there just aren’t enough young people in existence to support current beneficiaries, the system will collapse anyway.

When Social Security began making monthly distributions in 1940, there were 160 workers for every senior receiving benefits. In 1950, there were 16.5; today, three; in 20 years, there will be but two.

[…]

Demography is destiny. Which leads directly to Proposition 4: This is one Ponzi scheme that can be saved by adapting to the new demographics.

Three easy steps: Change the cost-of-living measure, means-test for richer recipients and, most important, raise the retirement age. The current retirement age is an absurd anachronism. Bismarck arbitrarily chose 70 when he created social insurance in 1889. Clever guy: Life expectancy at the time was under 50.

When Franklin Roosevelt created Social Security, choosing 65 as the eligibility age, life expectancy was 62. Today it is almost 80. FDR wanted to prevent the aged few from suffering destitution in their last remaining years. Social Security was not meant to provide two decades of greens fees for baby boomers.

Of course it’s a Ponzi scheme. So what? It’s also the most vital, humane and fixable of all social programs. The question for the candidates is: Forget Ponzi — are you going to fix Social Security?