So it’s all W’s Fault?

It’s time to set the record straight for those few that are not fully familiar with the facts, or God forbid, depend on the mainstream media for their news and information.

All too many people believe our current economic crisis is exclusively the fault of President George W. Bush and his reckless policies. For the most part this is because that’s what the President continues to say, over and over and over. And this is the story the mainstream media plays, over and over and over. But the real reason is because too damn few Americans recall what they learned, or should have learned, in their civic classes back in Junior High… only the House of Representatives can approve a budget and Only the House of Representatives can spend money and authorize debt.

Too few of us appear to know the truth and even fewer of us bother to check facts. Worse yet, those of us who do know the truth continue to keep quite rather than risk the wrath of the uniformed or just plain stupid! Like lemmings we simply move along the path set for us by the leaders in Washington and by the media. Too many of us believe whatever we are told; especially if we hear it on TV or read it in the newspaper or a magazine. Even when the lights and bells are going off in our head telling us something doesn’t sound right we just assume whatever the talking heads are saying or whatever is printed must be the truth. Way to many of us simply believe whatever we are told by the media and current regime.

We’ve all heard of the vast right-wing conspiracy but it appears very few want to accept that there is a very real left-wing conspiracy that is effectively blocking the masses from the truth and selling all of us propaganda aimed not at just distorting the truth but at forming our opinions for us!

As recently as Monday night, August 31, 2010, the President lied to the American people when he claimed our current economic problems were the result of Bush’s spending on the war in Iraq. He stated Bush spent $1 Trillion in unfounded money borrowed from foreigners. The truth is, the total expenditure for the wars in both Iraq and Afghanistan was $850 Billion over the period of 2001 through the end of 2009. That’s less than $90.5 Billion a year when averaged over the full time period. Yet we know the total cost of the wars were heavily front loaded during 2001 through 2003 to pay for the actual Iraq war and the initial foray into Afghanistan. And if you will remember, the decision to invade Afghanistan and Iraq was voted and approved in a truly bi-partisan manner. If you look at the chart at the bottom of this commentary you’ll clearly see this was not the cause of our current economic crisis. Please be sure, I’m not saying the wars did not contribute to the debt but neither President Bush nor those serving in the House and Senate were able to prevent the terrorist attack that was the catalyst behind both wars and the associated spending. We were attacked and we had no real option other than to defend ourselves and take the battle to the enemy. Of course much has been written about wasted and “lost” money funneled through the State Department as well as other internal country development programs that are included in this cost. But this is not the reason we have experienced runaway spending and exponential debt growth.

So what is the cause? It’s simple, it all boils down to one date: January 3rd, 2007.

The Democrats didn’t gain control of the House and Senate when the President was inaugurated. No, the day the Democrats took charge was not January 22nd 2009; it was on January 3rd 2007. This is the day the Democrats took over the House of Representatives and the Senate, the start of the 110th Congress. Since that date the Democratic Party has had an absolute majority in both chambers for the first time since 1995, the end of the 103rd Congress.

If you still think this is all “W’s” fault, and thus the fault of the Republicans, think about this. January 3rd, 2007 was the day the Democrats took over the Senate and
the Congress; at the time they took control:

ü The DOW Jones closed at 12,621.77

ü The GDP for the previous quarter was 3.5%

ü The Unemployment rate was 4.6%

ü George Bush's Economic policies had set a record of 52 straight months of job creation!

Another great accomplishment of this date, January 3rd, 2007: Barney Frank took control as Chairman of the House Financial Services Committee and Chris Dodd took over the Senate Banking Committee. Two critical positions that are directly linked to the economic disaster we are currently experiencing. How can you be sure of this? Ask yourself the question: what economic sectors were at the core of the economic meltdown just 15 months after the Democrats regained absolute control of the House and Senate? Banking and Financial Services!

And how can we forget the impact ACORN had on this? As a government funded and sponsored entity they used volunteers to harass and intimidate bankers and mortgage companies to assure unqualified individuals were given home mortgages they couldn’t afford and didn’t’ have sufficient equity to support the mortgage payments, insurance and taxes resulting in the highest foreclosure rate in the history of our country. Millions of poor and near poor obtained homes they couldn’t afford only to have them ripped out from underneath them when they defaulted on payment. And who was the biggest supporters of ACORN, (including having been a paid employee)? President Obama, Chris Dodd and Barney Frank!

Any more questions?

Thank you Democrats and Moderate Republicans for taking us from an expanding economy, steady job expansion and low unemployment to where we are now in just 3 short years and, to what by all economic indicators tell us, the beginning of the 2^nd dip in the Recession, a lethargic GDP of +/- 1.2% and Unemployment that is officially rated at 9.6% but in actuality is much closer to 16% with the official rate certainly to rise once again above 10%. (On Friday the unemployment figures will be released and are expected to show at least 450,000 Americans have had to apply for unemployment for the first time.)

All of this is the price we are being forced to pay as result of social engineering, graft, corruption and plain stupidity of government policy set and administered by the Democrat Party which appears to be hell bent for leather to turn our capitalistic economy into true European style socialism. The meltdown of the economy, which came with little or no warning caused the loss of personal wealth for everyone with a 401K or similar retirement program, IRAs, as well as individual stock and mutual fund investments, with most people experiencing a loss of 50% or more. Add to that the crushing loss of home values and the mortgage market shakeup caused by the unloading of toxic loans on the economy from your Fannie Mae and Freddie Mac Fiascos and almost every one of us has witnessed our net worth devalued by at least half with millions of our fellow citizens forced out of their homes due to an unprecedented volume of foreclosures! (BTW: Bush asked Congress 17 Times to stop Fannie & Freddie - starting in 2001 because it was financially risky for the US economy – see video on file).

And just for more shits and grins, let’s not forget Frank and Dodd, as a means of getting rid of risky home mortgages, created the entire issue of “derivatives” and actively encouraged the use as a trading product. The very instrument they both foolishly and shamelessly spoke so harshly of once they crashed was their personal baby!

Continuing down this trip of memory lane, remember who took the third highest pay-off from Fannie Mae and Freddie Mac???? Then Senator Obama. And who took the first and second highest campaign contributions from Fannie May and Freddie Mac? Congressman Barney Frank and Senator Chris Dodd! Both sat on the board for both organizations and both served on the compensation committees! Both Frank and Dodd voted to approve the more than $20 Million in year-end “bonuses” for the Chairmen of these two organizations when they had “cooked the books” to show profits that didn’t exist! And who fought against reform of Fannie and Freddie??? Barney Frank, Chris Dodd, Barrack Obama and the Democratic Congress

And, just for the record, when did we begin to see the dramatic increase in deficit spending and an increase in the total Federal Deficit? 2008, the first full year of Democrat control of the budget and all expenditures! (See chart below).

So when “someone” blames Bush... just remember January 3^rd, 2007. That awful black day when the Democrats took control of both the House and the Senate – the day the Democrats took charge of destroying our economy. (To be fair, they had plenty of help from “Moderate” Republicans and they too share the blame for our current and future economic condition.)

Bush may have been in the car but the Democrats were in charge of the gas pedal and steering wheel -- they were driving. (I stole this line from an unknown author.) Set the record straight on who’s truly at fault for the economic disaster we’ve all been forced to endure as a result of illogical social experiments and fiscal irresponsibility along with blatant disregard for the Constitution each and everyone swore to uphold and defend.

One more little fact to add to this argument, you probably remember that in January 2007 the new Speaker of the House, Nancy Pelosi, stated she would not accept the budget developed and approved by the previous congress and would create her own. For the remainder of that year the country operated without a budget, running on “continuing resolutions”. The 2008 budget was written by and approved by the Democrats. This was their budget and their policies that were implemented. This was the year when government deficits reemerged as the elephant in the room no one wanted to talk about.

During the past three years we’ve seen an all out effort by the progressives, liberals and “moderate” Republicans to dismantle our capitalist economy, grow the Federal Government and take power that is clearly unconstitutional. This move towards European style socialism is not without cost. Clearly our massive deficit is part of the cost but the real cost is going to be the massive and unavoidable taxes that will be imposed in the near future coupled with draconian cuts to our defense leaving us vulnerable to more terrorist and rouge nation attacks. To appreciate the tax burden we are about to experience see the chart at the bottom that lays out the tax rates being paid by European’s who have already come to enjoy the thrill of socialism.

So is it really all W’s fault? The next time someone pisses on your leg and tries telling you it’s raining… just remember January 3^rd, 2007.

As I see it, this is where we currently stand:

Referenced charts :

Note: The actual deficit for 2009 was more than $1.9 Trillion and the revised estimate of the deficit for 2010 is in excess of $2 Trillion. This Does Not include “off-budget” spending for such items as the most recent $450 Billion Stimulus to pay teacher salaries, SSI expenditures in excess of revenues, increased cost of Medicare and Medicaid, the war in Afghanistan and Iraq and numerous other expenditures. Further, as of 1 September 2010 we still do not have a budget (as is required in the Constitution).

The Cost of Socialism to those who still bother to work in Europe

Why would anyone think our experience would be any different when the government is attempting to model our economy on that of these countries?