Sunday, January 2, 2011

Government as a Criminal Enterprise

By Alan Caruba

The Obama administration is “one of the most corrupt administrations in modern times” said Rep. Darrell Issa (R-CA) Sunday, January 2st. As the incoming chairman of the House Oversight and Government Reform Committee, we can expect some explosive revelations.

The larger question is how long can a nation survive when its east and west coasts are occupied by liberals who are so out of touch with reality they cannot understand why the rest of the nation would disagree with them about anything? Two States alone, California and New York, are so broke and so laden with red tape they exist by mercy alone.

Liberals are people who still think bigger government, more regulations and more spending is the answer to every problem and need.

These are people who still talk about “global warming”, often in the midst of a raging blizzard.

These are people who refuse to consider the daily headlines of Muslim bombings of Christians, often in their churches, poses a threat to Western civilization.

In the middle, in “fly over country”, the bulk of the population simply stares in disbelief at the White House and Congress and keeps asking, “What are those people thinking?”

Having sent a small army of new people, conservatives, to the House of Representatives and narrowed the Senate’s ability to do further damage, these are independents who now expect change of a different kind than Obama’s.

It’s not so much change as a “return” to smaller government, less borrowing and spending, and such, but those days essentially ended in the last century as progressives got an income tax written into the Constitution, took away the right of State legislatures to name Senators who would represent their State’s interests, and then went on a binge of “entitlement” programs such as Social Security and Medicare.

A century of liberal government has bankrupted the government.

Indeed, just about anything one wants to do, go to college, start a small business, begin raising alpacas, whatever, the government will provide a loan or a grant or a tax exemption. The federal government determines how much each State receives for road and bridge repair, for its school systems, for just about everything for which States were formerly responsible.

The so-called Stimulus Act was nothing more than Representatives and Senators throwing every state and local project into a huge spending bill and then claiming it would create jobs. As has been the case for decades, the only jobs that get created from such largess are government jobs, while businesses large and small are required to waste thousands of hours and thousands of dollars filling out government forms.

There’s a word for that. It’s called communism. To avoid the ugliness of that, it is also called socialism, but it is still communism when the government makes the most important decisions about virtually everything affecting one’s life.

The financial collapse of 2008 was the result of the utter failure of two “government entities”, Fannie Mae and Freddie Mac, that so distorted the housing mortgage marketplace that it finally collapsed from an excess of incoherence. No one knew who owned the mortgage. Not Fannie or Freddie, not the banks, investment firms or AIG that used them as “bundled” assets.

The current bank failure rate is testimony to the need to shut down Fanny and Freddy.

Those mortgages were loans made to people that often didn’t have a job, bought homes so large they were beyond their ability to make the monthly payments, or just got fired and couldn’t pay. Whose fault was that? The lenders who knew they could turn around and sell the mortgage to Fannie and Freddie, and stick the American taxpayer with the cost to the tune of billions.

Beyond the mortgage fiasco, there is the government’s steady erosion of American’s vast energy industries. They cannot drill for oil anywhere. They cannot mine coal. If, however, you want to build a wind or solar farm, the government will give you millions to produce minimal amounts of electricity and require utilities to purchase it.

Or perhaps you want to be an ethanol producer? The government requires that all gasoline be mixed with ethanol, thus raising the cost per gallon for a chemical that actually reduces the mileage you’d get without it. In addition, since it’s mostly made from corn it forces up the cost of feed to livestock which in turns forces up the cost of meat at the supermarket and the countless other food products that utilize corn in some fashion.

In a free market ethanol would not exist. Even Al Gore has disowned it!

What kind of government would insist on regulating carbon dioxide, claiming it is causing “global warming” when it is obvious to everyone there is no “global warming” and CO2 is not causing anything except the growth of every form of vegetation on planet Earth.

When a government lies that much to everyone in an effort to control all energy use, it has become a criminal enterprise.

While all this is going on, that same government is borrowing and borrowing and borrowing, mostly from China, to keep the monstrosity it has created going. Our government is flat broke.

When you add in a President who thinks America is too arrogant and represents people who eat too much, drive too much, and need to expect less if they get sick, it is little wonder people are beginning to lose faith in him.

We need a lot of change in a big hurry or one day we will all wake up and there will be no United States of America because it had to default on nearly $14 trillion in present debt. That's equal to our current Gross Domestic Product. The U.S. dollar continues to lose its value and we have two more years of a President who cannot sign more spending bills fast enough.

© Alan Caruba, 2011


LarryOldtimer said...

Alan, the difference between socialism and communism is that other people's money is gone in a whisk under communism, and with socialism, it takes longer.

Under socialism, there is a pretence that there is such a thing as private property. Under communism, only those few who rule have private and guarded property.

Jazzie Casas said...

Last year was bizzare for the mortgage market. In the first half of the year, you had a decent number of home sales keeping mortgages for purchases stable, thanks to the home buyer credit. In the second half of the year, that changed as demand crumbled when the credit was withdrawn. At the same time, you had very low mortgage interest rates throughout much of the year cause a mini-refinancing boom. 2011 will look very different, as the housing demand continues to struggle and mortgage interest rates have begun rising.

home buyer

Ronbo said...

No doubt about it: Twenty Eleven will be the year the rubber hits the road.

We will either see the rise of yet another failed socialist nation, or the rebirth of the American Republic.

My heart is with the Republic, but my mind knows of only a few countries who have pulled back this close to the abyss.

onecitizenspeaking said...

The GSEs, Fannie Mae and Freddie Mac, and AIG were only symptoms of the same disease: government intervention in the free market with their manipulation of financial organizations as instruments of social policy and the failure of the regulatory agencies to actually detect and prosecute "fraud."

David A. Turner, Jr. said...

Communism (the natural evolution of socialism, progressivism, liberalism) is actually worse than simply a failed idea (see Cuba, California, USSR, Michigan, North Korea, etc.) but it violates our constitution, and citizens' God-given rights. So we agree, but what do we do to destroy it so it no longer can hurt us?

Alan Caruba said...

@David: I am hopeful we are watching the process of reversing the ills of liberalism in progress now. The midterm elections returned power to the GOP in the House, the Tea Party movement will keep the GOP's feet to the fire, and with a new president and GOP congress, at long last some remedy may be instituted. The mere fact that Social Security is being debated is a long overdue step in the right direction.