The Right Side of History Is Often Wrong

As a Republican, it’s hard for me to imagine the way liberals think. How does any American ever even consider that Democrats have any plans that are good for the country? Their socialist bent goes against the Founding Fathers’ ideals.

This morning, I took a trip to Democratville, transported courtesy of my kitchen cabinet installer.

“I see you’re a Republican,” he announced as he was finishing up the job. Since I have campaign pictures of Republicans in the hall and a sign over the garage that says “Republican Parking Only,” this was not an intellectual stretch for him.

Before I could finish saying “yes” he asked me what I thought of Romney and whether I would vote for him. I told him he wasn’t my first choice, but I would vote for him. “My wife says Mormon is a cult, and would never vote for him,” he announced, but “I voted for him in the primary.”

At that point a smug superior look came over his face, he drew himself up and said, “You see, I’m an independent.”

Yes, independent is an ever shifting mythical land inhabited by people who blow whichever way the hot breath of media anchors directs them. He went on to clarify. “Sometimes I lean Republican, but lately more Democrat. I don’t belong to any religion either. I have gone to Mormon services, Catholic churches and Baptist. I checked them all out. I don’t really think religion is that important.”

OK. God probably doesn’t think you’re important either.

“My friends were surprised that I voted in the Republican primary, but I didn’t like the other guys. Too much religion.” I guess he was speaking of Santorum.

“Last time I was leaning towards McCain, but when he said that we might be in Iraq for 100 years, my wife got furious and made me turn off the TV. We have a 12 year old boy and she didn’t want him to go over there. I turned from Bush because of his wars,” he said.

“And I didn’t like Sarah Palin.” I managed to squeeze into the conversation and ask if he thought Biden was preferable. “Well I looked into him and saw that he was the second least wealthy person in his 37 years in the Senate. I figured he was either stupid or an honest guy. I didn’t feel like Sarah Palin – who was very nice to look at – was ready for the job.”

His analysis of Biden was at least half right.

From there we leaped to FDR. “My dad lived in Hooverville,” he said. I started to say that economists now believe FDR actually prolonged the depression, but Marty plowed ahead. “He helped the unions and gave us Social Security. My dad said that no one ever refused to take a Medicare or Social Security check.”

That paternal Boswell also observed that the country is really liberal. “They just don’t realize they are, dad said.” Interesting, but again, wrong.

Marty admitted that he voted for Obama in ’08. “I wanted to be on the right side of history,” he said. That explained a lot. It showed the mind numbed quality of Democrats who don’t want to examine the issues, just jump where everyone else is. I’ve heard this before and never fail to be horrified by it. It’s the same mindset that worked for Hitler in Nazi Germany. It’s a dangerous route to the end of the American way of life.

I wanted to ask him if he was pleased with the economic direction of the country. How’s that working out for you? Do you like high unemployment? Are you aware that if Obama gets reelected, economists see Taxmaggedon hitting him before Obama even gets sworn in again? Does he like high gas prices? Are we out of Afghanistan? Are you ready for insurance rates to double if Obamacare passes muster with the Supreme Court? Do you see the housing crisis easing? Do you think you’ll be spared from the endless rules and strict regulations that will affect everything you eat and do?

Marty will probably press the lever for Barack again in ’12. But he might not get what he expects. He might find the U.S. on the wrong side of history.

Bank on More Problems

“Banking is key to economic recovery,” said “Gene Henson at last night’s Midtown Republican Club meeting.

Henson, the regional president of Trustmark Bank, spoke in November to the Lunch Hour Republican Club. He was more optimistic at that time than now about the recovery. “We’re starved to making good loans. The consumer is not borrowing and is not optimistic enough about the future.” Yet the government is hindering them with an overzealous response to the 2008 meltdown.

“Congress did some stuff in desperation,” he says. “I view TARP as not necessarily a bad thing. We took $220 million in TARP because the government asked us to. We paid it back in eight months. It carried a 5% coupon and cost us $20 million. As of now, banks have paid back 90% of the money.”

What happened next was more problematic. “Congress passed Dodd-Frank – 3,500 pages of new rules and regulations. Most of the senators who voted for it did not even read it. But, it will have a detrimental effect on mortgages. The average bank has 37 employees; now of those, 19 are engaged in compliance activities.” This, as he points out, costs banks more to fund these employees and takes them away from customer service.

Tacked on to Dodd Frank was an amendment by Senator Dick Durbin (D-Il). “There wasn’t even any debate on it. It concerned debit cards which used to be charged .54 cents a swipe. Durbin handicapped it at .24 cents at the urging of lobbyists from Walgreens and Lowe’s who didn’t want to have to pay part of that fee. The money had to come from somewhere. It transferred $50 billion from banks to retailers. Our industry is still searching for a way to get that money back.”

Another problem is the Consumer Financial Protection Bureau. “It’s a dangerous agency with unbridled power. They can assess criminal and civil charges without any oversight.” Henson mentioned that Elizabeth Warren, now running against Scott Brown for the Massachusetts Senate seat and a quasi Marxist, was involved in this fiasco.

Henson hopes that the real estate sector will improve. “Memphis was a big subprime market, although our bank was not involved in that. Where were the regulators then?” He fears that politics will overcome regulators in future doings.

In the House, Henson says Marsha Blackburn and Stephen Fincher have been receptive to his industry’s problems. “Fincher replaced Anthony Weiner on the banking committee, so that helps,” he said. “Corker has been on the Senate banking committee and that has been helpful, too.”

Henson doubts the consumer will emerge strong any time soon. High gas prices that keep rising are not going to help. “And there’s no hope for repealing Dodd- Frank,” he says.

Something Cheering At Last

A highly respected D.C. watcher, Matthew Continetti, pens this column in the Washington Free Beacon. He says the Democrats are in disarray and “a good week for the good guys – finally.” Read it and cheer:

Hoping to spend the week sliming Paul Ryan and screeching about the mythical Republican “war on women,” the Democrats instead have been set back as the news cycle spun out of their control. Foreign policy, health care, and energy have forced them into a defensive crouch. No wonder I’m in such a good mood.

David Axelrod most likely is not. He must have wished he could go back to bed on the morning of Mar. 26, when news broke of President Obama’s “hot mic” moment at the security summit in South Korea. ABC News had caught the president telling Putin stooge Dmitri Medvedev that he needed the Russian dictator to give him “space” on issues such as missile defense until after “my last election,” at which time he will have “more flexibility.” Medvedev nodded sympathetically throughout the conversation and said, in his best General Orlov imitation, “I will transmit this information to Vladimir.” All that was missing from the ridiculous exchange were fulminations over “moose and squirrel.”

The president embarrassed himself. Not only did Obama give us a glimpse of his backwards statesmanship, in which “diplomacy” involves telling a corrupt strongman that electoral concerns prevent him from further accommodation. He also reminded Republicans and independents of the high stakes in 2012. What would be the results, not a few conservatives wonder, if the president had all the “flexibility” he desires?

As it happened, the hot microphone mess was the least of the president’s troubles. The gaffe was still in the news when oral arguments over the Patient Protection and Affordable Care Act began at the Supreme Court. The first day of proceedings concerned whether the Court could rule on the law at all since the individual mandate will not be enforced until 2014. But even those arguments went poorly for the administration and its hapless solicitor general, Donald Verrilli Jr., who was unable to explain how the mandate could be a “penalty” one day and a “tax” the next day.

Yet the liberal panic did not truly begin until Mar. 27, when the Court heard arguments over the mandate’s constitutionality and even the president’s most hardened supporters had to acknowledge his signature policy was in trouble. No sooner had the proceedings concluded than a hysterical Jeffrey Toobin fled the courtroom, screaming that Obamacare was in “grave, grave” condition. The flimsiness of the administration’s arguments had transformed Toobin into a Henny Penny in drag, running around Capitol Hill and warning his fellow liberals that the Court could overrule Obamacare in “one big package” and that at the very least the mandate is “doomed.”

The administration and its friends in the media found themselves in a truly helpless position. If Toobin is proven right and the Court overrules Obamacare in part or in whole, Republicans will pounce, the president will look like a loser, and Democrats will be both demoralized and radicalized (not a winning combination). If Toobin is proven wrong, however, he will look like an idiot, Republicans and Tea Party activists will mobilize for the fall, and Democrats still will have to defend an unpopular law whose consequences grow worse with each passing minute.

The liberal reaction to this dilemma has been a predictable combination of spin and scapegoating. The noted legal mind Chuck Todd, who seems to have missed the class on Marbury v. Madison, asked guests on his show whether a Court decision against the health care overhaul might not be an unprecedented intrusion of one branch of government over the elected branches. Meanwhile, James Carville and Harry Reid lamely suggested an anti-Obamacare ruling would be good for the president and his party. The White House was reduced to using Newspeak, referring to the mandate as the “personal responsibility clause.”

It was Verrilli, however, who bore the brunt of the blow. After transcripts and audio of the arguments revealed little difference between his platform and that of a former Miss Teen South Carolina, left-of-center talking heads likened the longtime attorney to Bill Buckner and a clueless actor in a fifth-grade play. Mike Barnicle suggested that the administration would have been better off sending in Vincent LaGuardia “Vinny” Gambini to argue the case.

None of the commentators who hurled these insults dared to ask whether they might have done any better. They probably could not have improved on Verrilli’s performance for the simple reason that the arguments for the constitutionality of the federal health insurance mandate are weak. So it goes: Whenever liberals are dealt a setback, as has happened repeatedly during the last three years, they blame their defeat on a lack of message. Once again, they have failed to realize that the marketing is not the problem. The problem is what they are selling.

As a possible anti-Obamacare majority was forming inside the Supreme Court chambers, the magnitude of this week’s Democratic rout was becoming apparent across First Street. Senate Democrats had hoped to spend the last few days before Easter Recess reminding Americans that Republicans are the protectors of those horrible, greedy oil companies. To that end Harry Reid, Chuck Schumer, and Dick Durbin had Bob Menendez introduce a bill eliminating tax breaks for carbon energy producers and replacing them with tax breaks for green energy companies. The Democratic leadership had expected the Republican caucus to block debate on the Menendez proposal, handing liberals and the White House a tactical victory.

This is your Democratic-controlled Senate at work: No budget in three years but plenty of votes to score partisan points. What the oaf from Nevada had not anticipated, however, was that Republican leader Mitch McConnell would allow debate on the bill, thereby providing the Senate GOP an opening to blame Obama’s anti-drilling policies for high gas prices. The Menendez proposal went down in the end as expected, but not before Republicans turned the tables on Democrats.

The week ends, then, with the Democrats in disarray as a result of the president’s gaffe, unanticipated trouble at the Court, and shrewd maneuvering by McConnell. Having spent most of 2012 under fire for the mind-numbing Republican primary and for not properly appreciating Sandra Fluke’s unique contributions to society, this was the first good news cycle for conservatives in a long time. Might as well enjoy it while it lasts. Rarely do politics get better than this. Though they might on Nov. 6.

“A Devastatingly Bad Decision”

Douglas Holtz-Eakin, former CBO director under the Bush administration, appeared on Varney & Co. this morning.
Varney asked him about the effect of high gas prices on the economy.

In the first quarter, “I see 1.5% (GDP) at best. It might pick up a little bit in the second quarter if we get some moderation, but we don’t have anything that looks like a robust recovery and I expect the next unemployment report to be down from the 240-odd thousand jobs that we’ve seen to under 200,000.”

As for the CBO now pegging the cost of Obamacare in the next ten years to go from the original estimate of 960 billion to 1.7 trillion, Holtz-Eakin commented “There really are two big things going on here. Time has passed. With each year that goes by we lose some zeroes up front…each ten years includes more full years and that price tag looks more real.

“The second thing is a big estimation error. At the time Obamacare was passed, the CBO expected the unemployment numbers to come down relatively quickly. It’s not so there are many more people out there who do not have employment insurance who will show up to take the subsidized insurance and that price tag is much bigger.”

Varney asked him to comment on whether Obamacare will bankrupt the country.

“I think it’s an extraordinarily bad decision at a key moment in our nation’s history. We’re already at a point where our debt is larger than our economy; countries that get in that position typically grow more slowly – about a percentage point slower per year – that’s a million jobs. And we already had big problems in Medicare and Medicaid that cause that debt to get even bigger.

“Take a country that is already in bad shape and projected to get in worse shape, and then add a new entitlement of this size and it’s just a devastatingly bad decision.”

On the Ryan plan and the budget, he said “We have big problems. Doing nothing is a recipe for disaster and the Senate has not seen to pass a budget in three years, the president’s budgets don’t address the fundamental problems, tax reform and entitlement reform, so we have one plan on the table and that’s out of the House.

“With debt above the size of the economy, we’re already in the danger zone. This is when the probability of a sovereign debt crisis gets elevated.”

Today’s Economic Numbers

Thursday’s here and that means the weekly jobless claims. For the 16th week, the jobless claims were over 400,000. They came in at 418,000, up from last Thursday’s 405,000. In other words, no improvement.

Making it worse, oil touched $100 a barrel today and is likely to continue upwards.

A report from Bloomberg says that the high gas prices are continuing to hurt the consumer. They are increasingly “using credit cards to pay for basic necessities as income gains fail to keep pace with rising food and fuel prices.” That is not a pretty picture.

The data comes from credit card transaction processor First Data which reported that the dollar volume of charged purchases rose 10.7% in June, according to Zero Hedge blog, a 6.8% increase in the number of transactions. Not a pretty picture.

Bank of America executive Joshua Dennerlein notes the end of the year will see 3.7 million Americans stop receiving jobless benefits. “This will act as a hit to consumption in the first quarter of 2012.”

Dems as Carnack

Remember Johnny Carson’s Carnack skit? He always had the answer even before the question was asked. For the Democrats whatever the issue, the answer is taxes. And by that I mean RAISING taxes. Social Security a problem? Raise taxes and voila, it’s solved. High gas prices, low supplies? Raise the gas tax as one Dem congressman has suggested. Don’t like the war? How about a surplus tax to pay for it.

Do they ever have a forward thinking idea? Next time an issue is discussed, check it out. They can tax their way out of anything.

Just watch your wallet.