Now, onto politics which is now and will always be my passion, besides making movies of course! It seems that President Obama finally did something right this morning. He told the United Auto Workers to: “take a long walk off a short pier.” Well, not in so many words, but in reality, that is what happened. I agree with this wholeheartedly. Although, the implications of the rest of his speech have more far reaching and detrimental effects to the United States and not just its economy.
Obama’s decision this morning that the US Government will not give any more money to Chrysler and/or GM unless they come up with an acceptable restructuring plan in 30 days for Chrysler and 60 days for GM is a direct blow to the auto unions as well as the companies’ other vendors. In the event they both fail to comply within the time periods allotted, both will be put into Chapter 11 proceedings under the US Bankruptcy Code. As I have already discussed in this column, that will give the bankruptcy judge in each instance the ability to void the union contracts in order to make the companies viable when they come out of bankruptcy. It is also gives the judge the ability to void any other obligations as well. The bloated UAW will finally be put into its place.
This is a good thing and I applaud President Obama for having guts to go against one of the Democratic Party’s strongest allies! However, this announcement from the Obama administration is not necessarily as good as it may sound. Another part of the announcement is that the President ordered the firing of the Chairman of GM in the process. The White House demanded that Rick Wagoner, resign before any more federal aid would be forthcoming. This, my friends, is beyond Socialism and represents a very large leap in the direction of Communism.
Is the Obama Administration heading us down the road to Central Planning? Is this what the administration is trying to use the power of the US Government for? Is the man occupying the White House trying to set back Capitalism more than 100 years? It really is beginning to look that way. I thought President Reagan and Bush Sr., had beaten Communism once and for all in the late 1980s.
In the past few weeks, President Obama has started putting limitations on major businesses that really looks like central planning by the federal government. It all started with the limitation on executive pay for companies taking public money about six weeks ago. Then, it got really scary recently when the administration announced it would start regulating and limiting executive pay on companies that were financially sound if they were in an industry that could effect the economy as a whole or if they were too big to fail. Sounds to me like every business out there that is not a ‘mom and pop’ operation is now subject to Federal regulation and control.
Then, there was the brouhaha over the AIG bonuses. Didn’t the Obama administration approve those bonuses in the last bailout arrangement with AIG? That is what the evidence shows. Of course, this was all forgotten when the bonuses became publicized and the Obama administration had to turn its back on the AIG board. Unfortunately, for the Obama administration, it was a no win situation either way. If they agreed with the bonuses, as they initially did, the public was against him. If they came out against the bonuses which is what they ended up doing, it looks more like Central Planning.
I suggest that all of you immediately write your Congressmen and Senators and inform them that you will not allow this extreme regulation to continue. We must get tough now because there will be no turning back once it gets into place. This is a Capitalist country and must remain as such. You should also think about contacting Timothy Geithner since he seems to be the “brain” behind all of this.
However, so that it does not appear that all I do is bash the President, I must state that on foreign affairs, I have to give him a little more credit. He is planning on taking a real hard line with the Taliban. The latest news report shows that the President is planning on increasing troops in Afghanistan and has also told the Pakistani government that they must be actively involved in defeating the Taliban. Also, as of this morning, the US deployed two destroyers towards North Korea to monitor North Korea’s pending missile tests. The destroyers are equipped with the necessary equipment to take down a missile in mid-air.
Leonard Volpe, a friend of my brother’s forwarded this link to me for review. I suggest that all of you review this at your earliest convenience. http://www.youtube.com/watch?v=cMnSp4qEXNM&NR;=1 This link makes a strong argument that the Bush Administration and Republicans argued to the Democratically controlled Congress the risks of Fannie Mae and Freddie Mac collapsing long before it became an issue and that the Dems did nothing about it. If this is true, then the majority of the blame for these economic crises should be on the Democratic Party.
The Wall Street Journal published an article on March 13, 2009, entitled “Obama’s Poll Numbers are falling to Earth.” In it, the newspaper makes a strong argument that Obama’s approval ratings are not as high as they appear to be on their face. In fact, it goes on to say that his approval ratings are lower than President Bush’s were at the equivalent time in his presidency in 2001. According to the Article and Rasmussen, Obama has lost all of his Republican support and a good part of his independent support and that the current trend is against him.
Well, that’s about it for now. I wish all of you the best in the coming few days. I will try to make these columns steadier in the weeks ahead as has been requested by a number of my readers.
©2009 by Frank T. DeMartini. Permission to use excerpts will be freely given upon request.