Obama not the Man to Lead a Great Nation

By Con George-Kotzabasis

The Washington Post columnist Krauthammer’s stethoscope detects the “jarring” beats of Obama’s ‘unwavering’ liberal democratic heart. A “uniter” in words, a “disuniter” in practice. On Iraq, not only he ‘denigrated the surge’ as a Democrat, but by saying, which is laughable, ‘that the Sunnis turned against al-Qaeda and joined us because of the Democratic victory in the…midterm elections,’ Obama removed the “crown” from the head of the American troops, who were the true facilitators of making the Sunnis to join the US against al Qaeda under the new and imaginative leadership of General Petraeus, and attempted to place it on the empty heads of the Democrats. Obama is hardly the man to be the president of a great nation (speaking as an Australian) facing maliciously fiendish and implacable enemies.

Over to you

Social Engineering is the Devil in the Detail of the Collapse of Wall Street

By Con George-Kotzabasis

This is the time for all the intellectual Lilliputians to raise their head. Before our two authors send to the gallows Milton Friedman and Frederick Hayek, they ought to be reminded of some facts. The dragon teeth that mauled the only system, i.e., capitalism that brought relative prosperity to the peoples of the world were spawned by government intervention in the first place. Roosevelt’s creation of the publicly funded Fannie Mae, and many years after its twin Freddie Mac, followed by the Community Reinvestment Act, under Jimmy Carter, and which was resurrected by Bill Clinton, were all the offspring of government intervention. They were the putty in the frame of social engineering by which all Americans would have realized their dream, to have and own their own homes.

Clinton’s decision in 1999 put pressure on lenders to “widen the pool of home borrowers.” New York Times article on September 1999 stated: “In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae corporation is easing the credit requirements on loans…encourage banks to extend home mortgages to individuals whose credit is generally not good…Fannie Mae officials say they hope to make it a nationwide program by next spring.” (The Australian, October 20, 2008) Latinos and African Americans are the biggest minorities and the more numerous mortgage defaulters in the US housing market. Fannie and Freddie were providing the easy loans and the …Reinvestment Act were enforcing bankers to render their credit services to all and sundry irrespective of the financial position of the borrowers. (Barack Obama as community organizer was the ‘Enforcer’ as he was threatening banks with prosecution if they did not take riskier lending practices with non-credit worthy customers.) And the whole saga of the sub-prime loans was resting on these rotten foundations created by Democratic administrations. The profligacy of ‘ghetto’ loans in astronomical digits was replacing Gekko greed.

 Hence Wall Street collapsed through the derivatives market multiplier leveraging founded on the sub-prime loans by which the moguls of finance made for a while their ephemeral profits. And this collapse released the nightmare that was always embedded in the dream of mass home ownership when it became evident that many ordinary Americans were not only going to lose their homes but also their jobs all by the grace of government intervention and its blessing of easy loans. Easy come easy go.

Your opinion…

Will America Rise from its “Comatose” State?

By Con George-Kotzabasis

A reply to a very clever American Open Salon

The Global Credit Crunch and the Crisis of Legitimacy

By RCMoya612

 

RCMoya, after your excellent and resplendent analysis I feel, if I captiously quibble about few points, like a bat squeaking in the dark. First, inequality might have “continued its forward march” but I would argue that it did so on a higher level of general economic prosperity in America following the up till now unassailable historical paradigm of capitalism and free markets that has made the poor ‘richer’ in relative terms, as Amartya Sen has contended.

Secondly, America’s “hectoring and ignoring” has its counterpart in Europe and in other continents whose countries were strong allies of the US during the Cold War but with the collapse of the Soviet Union have reappropriated their independence both geopolitically and culturally and expressing this in their own hectoring and ignoring against America, thus continuing the irreversible law of the political and cultural competition of nation-states.

Thirdly, I would argue that as long as America continues to be the centripetal force attracting the “best and the brightest” to its shores and not stifling the Schumpeterian spirit of entrepreneurship and “creative destruction”, it will be able to rise again even from the ashes of a ‘comatose’ state and will continue to be  in the foreseeable future the paramount power in world affairs.

And fourthly, the rejection by Congress of the funding plan that would have a better chance than none to prevent the economy from collapsing was inevitable in the present political climate where reason cannot compete with populist emotionalism and when a swirl of weak politicians, like Nancy Pelosi, and, indeed, Barak Obama, are its ‘slaves’.  Only by cleaning out these wimpish politicians from positions of power will the political narrative reassert its legitimacy.   

Obama Plays his Victory Fiddle While America is Burning

By Con George-Kotzabasis

Barack Obama in another crucial test of leadership–the others were his withdrawal of troops from Iraq and his diplomatic parlay with Iran—has irretrievably failed. In his response to John McCain’s proposal to suspend their campaign and postpone their debate that is to take place next Saturday and concentrate all their efforts in persuading Congress to pass immediately and urgently, in a modified form, the financial measures of Paulson-Bernanke– measures that were elaborated by the experts in the field and not by primitive “tzu-tzu” practitioners nor by populist nostrums–that would have a better chance than none in saving America from descending into depression, that they should not postpone their debate and by having it they would allow the American people to have their say on the financial package, shows Obama to be abjectly and callously irresponsible to the “main street” people whom he presumably professes to represent and protect, all in the name of a stampede of voters rushing toward him on the heels of the debate that would facilitate him to capture the White House.

In his delirious manic run to catch the fleeing damsel of the ‘oval shape’, he is completely careless and unconcerned that this unprecedented financial crisis since the 1930’s depression that threatens many millions of Americans of losing their jobs and their houses, and, indeed, their life-savings, as there is a high probability if the Paulson-Bernanke measures are not passed promptly and expeditiously by Congress might engender a stampede, a run on the banks by ordinary Americans that would bring the collapse of the whole American economy.

Thus Obama’s sinister aim to have his debate for the purpose of bringing a stampede of votes to his side might turn out to be a stampede on the banks. And while he gives his glorious victory speech to Americans the latter will ingloriously be losing their savings. Hence, his ‘victory’ will rest on a pile of ashes, on the ashes of ordinary Americans’ life savings.  

Your opinion…