Thursday, October 3, 2013

Hang Tough _ The Shutdown Will Backfire on Our Former Messiah, Dour Harry and Noodnick Nancy!

QE 3 and the Titanic. (See 1 below.)
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My argument.

After Democrats shoved 'Obamascare' through without one Republican vote, failed to read it before signing the monstrosity that went  some 2000 pages and  some 10,000 pages of rules and regulations drawn up by Democrat staffers, Obama made 19 exclusions by the stroke of his pen.

This is basically an unconstitutional action on his part but let's not quibble. He did it because he began to get complaints from various liberal constituents.

Obama has now refused to negotiate any changes Republicans seek and blames them for shutting down government  accompanied by dour Harry and noodnick Nancy.

This is all political theater meant to gain points for the 2014 election.  I suspect it will backfire if Republicans hang tough, keep offering legislation to fund parts of government while seeking  a quid pro quo to defer the impact of 'Obamscare" until it has been more thoroughly digested and modified.

History of government shutdowns do not necessarily have to take the same course and I doubt this one will because Obama is no longer viewed in the same light as he was when he burst upon the scene.

Voters have experienced five years of Obamanomics and most now find him inexperienced, incompetent, petulant and lacking leadership skills.

He ain't the same messiah voters thought he was when they elected and re-elected him.  If you do not believe this ask Putin and the Mullahs! (See 2 below.)
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men 'n fishing

A man calls home to his wife and says, "Honey, I have been asked to fly to Canada with my boss and several of his friends for fishing.  We'll be gone for a long weekend.  This is a good opportunity for me to get that promotion I've been wanting so could you please pack enough clothes for a 3 day weekend... and also would you get out my rod and tackle box from the attic?

We're leaving at 4:30 pm from the office and I will swing by the house to pick my things up.

Oh! and please pack my new navy blue silk pajamas." The wife thinks this sounds a bit odd, but, being the good wife, she does exactly what her husband asked.

Following the long weekend he came home a little tired, but, otherwise, looking good.  The wife welcomes him home and asks if he caught many fish?

He says, "Yes!  Lots of Walleyes, some Bass, and a few Pike";  He said "but why didn't you pack my new blue silk pajamas like I asked you to do?"

You'll love the answer.

The wife replies, "I did, they're in your tackle  box."

Never, Never, Never try to outsmart a woman!!
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Obama does not understand The Constitution but at least he knew enough to teach it! 

Thank God when I attended law school my professors were excellent and knowledgeable!  (See 3 below.)
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Dick
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1)

James Rickards: QE Will Go Down as 'One of the Greatest Economic Blunders in History'

By Dan Weil




The Federal Reserve should drop its quantitative easing (QE) and just focus on controlling inflation, says James Rickards, a partner at Tangent Capital Partners. 

"My own view, which has no chance of happening, is that they should stop asset purchases completely and start to sell assets and raise interest rates," he told Hard Assets Investor

The Fed should simply declare, "We don't do stimulus. We're a central bank. Our job is to maintain price stability. We're not in the business of boosting the economy or propping up the stock market or propping up the housing market."

Rickards understands the Fed's rationale. "But it has gone way outside the mandate," he explained.

QE will go down as "one of the greatest economic blunders in history." 

Gold may slip a bit in the short term because of "Fed blunders," he noted. But "over three or four years, we're looking at a much more serious risk of financial panic and collapse and a rise in gold to significantly higher levels."

The precious metal could reach $5,000 to $7,000 an ounce, Rickards predicted.

As for the Fed, star bond fund manager Jeffrey Gundlach, CEO of DoubleLine Capital, told Bloomberg the central bank won't reduce its QE before a new chairman takes over Feb. 1.

Addressing the possibility of a tapering at the Fed's policy meeting Oct. 29 and 30, Gundlach said, "It's hard to believe the data will have such a monumental change in the next couple of weeks." 

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2)

Why This Shutdown Is Different

By Richard Winchester



In covering the effects of the partial government shutdown, the mainstream media are behaving as expected. Those who watched events leading up to the government closure understand that a major responsibility for the 17th government shutdown in American history rests on Senate Democrats led by Harry Reid, and especially Barack Obama, but of course the mainstream media are blaming the Republicans.
Democrats' intransigence over funding the central government, especially Obamacare, and soon over raising the nation's debt limit, should have made "headlines" in print and electronic media.
But, no, the MSM -- shilling for Obama -- lambaste Republicans of all stripes, but especially conservatives. Every Left-wing canard aimed at conservatives generally, and Tea Partiers in particular, gets repeated by the MSM.
Bad press is always problematic, and since there is a segment of the public that is entirely dependent on the MSM for political information, conservatives should expect these people to buy into the MSM template on the government shutdown question.
Even though many of the MSM-dependent people are the "low-information voters" we've heard about lately, and the MSM's audience is much smaller than it was 40-50 years ago, there are still enough of them to register in public opinion polls. Hence, it should not surprise if future polls show a shift away from a recent (9/19-22/13) poll for the Pew Research Center that revealed the public was almost evenly balanced in assigning responsibility for the then-impending government closure. One must expect polls in the next few days or so will indicate Jane and John Q. Public place more blame (for the shutdown) on Republicans than on Democrats.
That was certainly the case during the last government shut down (1995), when a poll for Pew found 46% of the public blamed the GOP, 27% blamed the Clinton Administration, and 20% blamed both sides.
Having seemed to lose the battle for public opinion, the Republicans caved.
Today, however, MSM shilling for the Democrats and Obama carries far less weight, and the GOP (and their supporters) should appreciate just how political communication processes have changed in 17+ years, and take that change into account.
Now we come to why Republicans and conservatives should discount MSM braying about who's to blame for the government's closure.
An obvious reason is that the audience for the MSM is considerably smaller than it was in the mid-1990s. A poll conducted for Pew in 1996, just months after the short-lived government shutdown of the previous fall, found that 71% of those interviewed claimed they "regularly" read a daily newspaper, 81% said they "regularly" watched TV newscasts, and 51% reported they "regularly" listened to the news on radio.
(These are probably generous estimates, since poll respondents frequently misreport how often they follow the news. Even so, the answers are "good enough for government work.")
Pew's midsummer 2012 "Media Consumption" poll, using identical questions, found that reports of "regularly" reading daily newspapers had sagged to 49%, "only" 71% of the poll's respondents claimed "regularly" to watch TV newscasts, and "only" 42% said they "regularly" listened to radio news broadcasts. (Once again, we're probably looking at generous estimates.)
These are useful figures (to those seeking reasons to discount MSM reporting), but they are only part, and not the most important at that, of the story that Republicans, and especially conservatives, need to appreciate.
Bluntly put, polls show significant erosion in the public's reported trust and confidence in the news. Gallup polls from the early 1990s to mid-2012, for example, show that the percentage of the public expressing "a great deal of" or "quite a lot" of confidence in television newscasts fell from 46% in the early 1990s to just 21% in early June, 2012. A year later, the percentage was 23%. A recent (6/1-4/13) Gallup poll reported that the percentage of the public who have "a great deal of" or "quite a lot" of confidence in newspapers has fallen to 23%, down 28 percentage points since 1980 and down 14% points since 2000. Another Gallup poll found that 60% of the public in early September, 2012, distrusted the MSM, while only 40% expressed "a great deal" or "a fair amount" of trust in the media. (As recently as 2004, a majority [55%] of Americans had trusted the media.)
One could point to polls from other survey agencies, such as the University of Chicago's National Opinion Research Center's "General Social Survey," which show the same, or similar, trends, but it would amount to gilding the lily.
So what? People who don't trust a news source don't believe that source. They probably don't listen to (or read) it.
In short, the government closure of 2013 is not the same as the one in 1995 or the eight government shutdowns engineered by Tip O'Neill when Ronald Reagan was president. 2013's government closure is not the same as the one in 1979, which occurred after Congress voted a pay raise for its members.
Consequently, don't expect future polls to show massive public opprobrium attached to the GOP for government's closure. Furthermore, keep in mind that most of the time, public opinion tends to be short-lived.
The MSM's declining audience, and especially their waning public trust, mean that Republicans and conservatives are on good ground in contesting Senate Democrats and especially the paper tiger in the White House.
Much as I shrink from disagreeing with Charles Krauthammer, the government's closure this time around need not be a boon to Obama.
To get maximum benefit from what they've done so far, Republicans need to do several things. First, they've got to stop the in-fighting. (Democrats don't do this, and the GOP needs to learn not to as well.)
Were they to do so, nervous Republicans would observe three things. First, the MSM very likely have negative influence. Second, the antics of Harry Reid and President Obama offer a variety of opportunities to be used as fodder for a smart GOP public-relations strategy.
The House succeeded in getting its bill funding the military passed by the Senate and signed by the president. This is a good beginning, and should be followed by other bills, such as funding national parks, veterans' affairs, as well as a new farm bill.
After World War II vets tore down barriers so they could visit the World War II Memorial, passing bills to reopen national parks and fund veterans' affairs ought to be good politics. One also wonders if Senate Democrats, especially those from so-called "Red" states who will be up for re-election in 2014, would want their vote against such legislation on the record.
Finally, weak-kneed Republicans need to see how the American public is reacting thus far. Press reports indicate that the predominant public reaction to the news about the government closure is a loud yawn.
Why is that? Many reasons, I suspect, but one is that the MSM can't shape public opinion like it once might have.
There's a lesson here for the GOP: Stick to your guns!

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3)This Shutdown Is Just Democracy At Work
 By 

Conventional wisdom in Washington is that our nation’s government was shut down by a group of uncompromising tea party extremists. While this is demonstrably untrue – the House of Representatives has now compromised on its position twice while Senate Democrats have refused to budge an inch – it masks a more important debate. That debate is over what type of democracy we want to live in: A real one or one on auto-pilot.
Official Washington regularly casts scorn on the “brinksmanship” that has characterized our nation’s fiscal debates for the last three years. There has been brinksmanship in recent years, but it’s only offensive if you wish to place our nation on perpetual cruise control.
Government on auto-pilot suppresses public opinion. It means Congress gets to tinker around the edges, but has few opportunities to change course. It is a radical change to our democracy, and fortunately not the nation we live in.
The Constitution grants the House of Representatives the power of the purse, and Congress has chosen to impose a statutory debt ceiling on itself. If these are extreme or irresponsible ideas then they should be altered, not simply ignored.
The President lectures Congress that “you don’t get to extract a ransom for doing your job.” This misunderstands our government on every level. Congress’s job is, indeed, to fund the operations of government. But it’s a mistake to view the appropriations process as a rubber stamp on government. Rather, it is a vital part of our nation’s separation of powers.
James Madison explained, in Federalist No. 58:
“This power over the purse may, in fact, be regarded as the most complete and effectual weapon with which any constitution can arm the immediate representatives of the people, for obtaining redress of every grievance, and for carrying into effect every just and salutary measure.”
The American people have a grievance with ObamaCare. It is unfair, unaffordable and unpopular. Every day, new evidence is coming out about how unworkable the law is. If ever there were a time for Congress to use its power over the purse to obtain redress of grievance, ObamaCare is it.
That’s not extremism; that’s constitutional democracy.
Obama’s refusal to engage in our nation’s system of government extends to the next fiscal fight that will present itself: The battle over whether and how to raise our nation’s debt ceiling.
Our nation, by law, established a debt ceiling in 1917 as part of the Second Liberty Bond Act. The non-partisan Congressional Research Services explains the debt ceiling “imposes a form of fiscal accountability that compels Congress and the President to take visible action to allow further federal borrowing when the federal government spends more than it collects in revenues.”
In other words, it is as if a smoke alarm has been installed in our nation’s fiscal policy to provide the American people and their elected representatives the opportunity to periodically determine whether or not the house is on fire and, if so, what to do about it.
Don’t tell that to President Obama, however. “No Congress before this one has ever, ever, in history been irresponsible enough to threaten default, to threaten an economic shutdown, to suggest America not pay its bills,” he said last week.
This is, however, completely false. Gramm-Rudman was attached to a debt limit increase in the 1980s and played a role in getting our nation to a balanced budget a decade later. In 1996, an increase in the Social Security earnings limit for the benefit of senior Americans was attached to a debt limit showing that debt limits can also be used to increase spending.
So let’s just be honest about how official Washington wants our nation to function, and the fact that it has few similarities to the system set up by our nation’s Constitution and laws. Washington politicians, and their media enablers, want a system of government that is on perpetual cruise control and highly challenging to alter.
If they believe that would be a better system of government, they should take their case to the American people, amend the Constitution to remove the power of the purse from Congress and eliminate the statutory debt limit.
Perhaps such a proposal would fly with the American people. My guess is it would be overwhelmingly rejected. And, if that’s the case, people should start being honest about who really represents the unreasonable and radical faction in Washington.
Michael A. Needham is the chief executive officer of Heritage Action for America.
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