Insanito Ad Reductum
By: Eddie Clements
Mission accomplished; another Obama gambit pays off. These media writers just donâ€™t understand when they are outclassed. Give it up, punditos (rhymes with burritos.) You have, once again, successfully been rhetorically outmaneuvered by a guy whose greatest talent is outmaneuvering people with rhetoric.
AIG was a perfectly good company run by a capable manager, Hank Greenberg. The demonic Eliot Spitzer intimidated AIG with long investigation while attorney for New York. Spitzer frightened their board of directors into ousting the honorable Greenberg in 2005, though no charges could be made. The company has gone downhill since. Greenberg had committed a crime he could not be formally charged with: he was a Republican. Spitzer subsequently suffered his own fall, but he escaped prosecution and will probably be back to be hailed as a Democrat hero.
MSM was eager to investigate Enron from its origins to the second it collapsed, but with few exceptions no mention is made of AIGâ€™s history. That would be off-message, as they say in drive-by-media-propaganda circles. One sordid outcome of Enronâ€™s failure was Congressâ€™ passage of Sarbanes-Oxley, referred to as â€œmark-to-marketâ€. Intended to prevent Enron-like excesses, assets like mortgages had to reflect market value at the time of reporting. Instead, it has contributed to the economic crisis.
The law makes mortgages in default worth zero. However, mortgages are backed by the property as collateral, so there is intrinsic value in the asset. One may not be able to sell it at any price today, but that doesnâ€™t make it worthless â€“ unless Congress passes a law saying it is worthless, then it is. Would that we could pass such a law against Democrats.
The outrage against AIG bonus payments is a distraction (seen in the Wall Street Journal here, http://online.wsj.com/article/SB123725551430050865.html), so that Obama may appear to be acting dynamically and quickly to protect the interests of citizens, which is his plan. Also, Congress needs to call attention away from the pay raise they gave themselves. Hypocrisy, thy name is Congress.
What follows is conjecture based on some facts, some knowledge of the way things work, and firm belief in the utter lack of honesty and integrity among Democrats and their MSM propaganda arm. These two entities along with Obama as the most effective spokesman Democrats have had for years have completely abandoned their duty to both the Constitution and service to U.S. citizens. They are initiating a power grab unseen in a large nation since the rise of NAZIâ€™s in Germany.
AIG distributed funds to European banks to cover for the political debacle caused by what started in Jimmy Carterâ€™s term and has been strengthened since: The Community Reinvestment Act. Both Republicans and Democrats passed the bill and now must cooperate to some extent to smooth out the mess they caused. The more conscientious Republicans are navigating through this as best they can, to prevent world-wide ruin, while trying to extricate U.S. citizens from further erosion of their freedoms. Democrats, meanwhile, are scheming to extend more loans to high-risk borrowers, as the CRA has evolved to in modern form. The current crisis affords an opportunity to the elected revolutionaries to control the largest insurer in America today that was involved in holding and selling derivatives (toxic assets).
At the same time, private business and the wealthy are attacked as the evidence of unfair outcomes produced by capitalism. The strategy is to gin up popular sentiment for government intervention in contracts specifically and commerce in general. A majority of Americans are against revolution, but that is coming if Obama and Democrats get their way. Trying to pass bills in the dark of night that do not have wide support can fail, like the recent â€œamnestyâ€ bill for illegal aliens. Even though that bill had indirect impact, it went to the issue of equal application of law, fundamental to Americans. Congress can pass a law much easier if the bill has popular acceptance. Acceptance is necessary because the effects of socializing companies will be widespread. Government ownership and intervention in private business, control of utilities, automobile production, and energy supplies will directly affect everyone. The extent of this control will be far greater, much more detailed, than it is now.
Incremental changes are easier; many have been made, such as the CRA. Sweeping changes like Obamaâ€™s require â€œcrisis that shouldnâ€™t be wasted.â€ That explains such odd and seemingly disparate events as complaining about bonuses to AIG employees, which were a known contractual obligation, and the Presidentâ€™s leaving town to appear on Jay Lenoâ€™s Tonight Show. He will make a pitch for socialism to a sympathetic audience, on the heels of trumped-up â€œpublic outrageâ€ over the bonuses. Look for more such trips to the hinterlands to sell the socialist program.
Meantime Rush Limbaugh is one of the few who are onto the scam and have it in perspective. The airwave and print media are spewing words over the bonuses. Analysis has been printed and blogged, that will seriously cogitate the wisdom of someone holding the office of POTUS doing a TV show. So what? Being unconventional, even confrontational, is part and parcel of the Obama mystique. How else to explain direct insult to our oldest ally, disparagement of citizens by name, scaremongering on the economy, ignoring the stock market, and naming pathetic ethics-challenged apparatchiks to high posts? Distractions that will occupy energies and deflect attention from the true meaning of these actions is the plan.
I will go further than Rush, who says there is incompetence (which by itself is correct, of course.) I say things are proceeding as planned, except for the unanticipated backlash and sinking poll numbers. Those are a real concern for Obama because it goes to his ability to persuade voters to accept what he called change. â€œChangeâ€ he was talking about is really a power grab based in socialism. He convinced voters he was talking about THEIR definition of change, which is to get Congress to behave responsibly and do the jobs they were sent to Washington to do. Things like reduce ridiculous regulations, keep taxes low, cut back out-of-control entitlements, enhance the business environment so it can create jobs and grow wealth, and develop a winning strategy for terrorism. He has not done one of these things, quite the opposite in fact; he never intended to.
Obamaâ€™s agenda simply is not Americansâ€™ agenda. Recall Obama believes the Constitution is flawed. I have never heard of that from anyone in my life. There are probably many people out there of good will who think he means something quite innocuous, like it needs improvement. Well, Obamaâ€™s definition of improving the Constitution is to force people to equally share the wealth, which he let slip with Joe the Plumber â€“ a major gaffe, which had to be covered quickly, before anyone caught on. If not for the camera present, the MSM would never have reported it, because they are perfectly in step with Obama.
To enact such a program requires changing everything in the Constitution. Property rights, contracts, all the amendments must go. To prevent popular resistance, gun ownership must be neutralized. First Amendment rights must be altered; proposals are being made in states for legislative control of church finances. Look for licensing of journalists and opinions expressed by citizens to come under strict controls. Assembly will be tightly controlled by permit, in which reasons must be stated. Conservatism will thus be effectively curtailed. Homes will no longer be safe from unreasonable searches and seizures.
Look for martial law, if necessary, to be initiated due to the projected â€œBiden emergencyâ€. It is being ginned up through enmity against capitalists. Rush says when order breaks down the public will demand Obama â€œdo somethingâ€ to bring the chaos to order.
Believe it, it CAN happen here. It IS happening here.