1. The world is a dangerous place to live — not because of the people who are evil but because of the people who don't do anything about it. — Albert Einstein

2. The quickest way of ending a war is to lose it. — George Orwell

3. History teaches that war begins when governments believe the price of aggression is cheap. — Ronald Reagan

4. The terror most people are concerned with is the IRS. — Malcolm Forbes

5. There is nothing so incompetent, ineffective, arrogant, expensive, and wasteful as an unreasonable, unaccountable, and unrepentant government monopoly. — A Patriot

6. Visualize World Peace — Through Firepower!

7. Nothing says sincerity like a Carrier Strike Group and a U.S. Marine Air-Ground Task Force.

8. One cannot be reasoned out of a position that he has not first been reasoned into.

2010-12-19

2011 Looks A Bit GRIM!

Wake-Up Call: Top 11 Trends of 2011


After the tumultuous years of the Great Recession, a battered people may wish that 2011 will bring a return to kinder, gentler times.  But that is not what we are predicting.  Instead, the fruits of government and institutional action – and inaction – on many fronts will ripen in unplanned-for fashions.  Trends we have previously identified, and that have been brewing for some time, will reach maturity in 2011, impacting just about everyone in the world.

1.  Wake-Up Call 
 The reputation of Gerald Celente and The Trends Research Institute is based on its willingness to “tell it like it is.”  Neither optimists nor pessimists, no matter whose interests it challenges, no matter whose feathers get ruffled, we are beholden to nothing but the facts … and follow them where they take us.  Though unafraid to call a spade a spade, we do so with as much respect as is appropriate to the matter.

Thus, prevailing conditions and future trends require us to call it the way we see it, and with all due respect, this is what we see: the proverbial “s#%t has hit the fan.”  The chickens have come home to roost, the genie is out of the bottle, and yes, the jig is up.

In 2011, the people of all nations will fully recognize how grave economic conditions have become, how ineffectual and self-serving the so-called solutions have been, and how dire the consequences will be.  Only little kids, ideologues, the uniformed, and the out-of-their-minds will still believe what they are being told by politicians, pundits and experts who have higher-ups to answer to, agendas to fill, and something to sell.

Having become convinced of the inability of leaders and know-it-all arbiters of everything to fulfill their promises, the people will do more than just question authority – they will defy authority.  The seeds of revolution will be sown in the streets of failing nations, on the Internet, and at the polling places.


2.  Crack-Up 2011  Among our Top Trends for last year was the “Crash of 2010.”  What happened?  The stock market didn’t crash.  We know.  We made it clear in our Autumn Trends Journal that we were not forecasting a stock market crash – the equity markets were no longer a legitimate indicator of recovery or the real state of the economy.  We pointed out that the action in the Dow was “merely a reflection of the cheaply borrowed dollars that were being used to gamble.”
 
What we did regard as reliable indicators included the employment numbers, the real estate market, currency pressures, and sovereign debt problems – all of which have bordered between crisis and disaster.  We informed readers, “The Trends Research Institute cannot predict what undreamed-of-schemes Central Banks will dream up this time….”  And dream and scheme they did.  TARP and the Obama stimulus were only the financial props that the government made public.  Just recently has it been revealed that secret backdoor bailouts amounting to over $20 trillion were funneled from the Federal Reserve, by way of “emergency lending programs,” to banks both foreign and domestic, hedge funds, select financial institutions, and favored corporations.


It was no different on the other side of the pond.  The basic treaties agreed upon to establish the European Monetary Union were breached in order to bail out bankrupt banks and float nations sinking in sovereign debt.
In 2011, with the arsenal of schemes depleted, we predict that teetering economies will collapse, currency wars will ensue, trade barriers will be erected, economic unions will splinter, and the onset of the “Greatest Depression” will be recognized by everyone … even if they refuse to acknowledge it.

3.  Screw the People  
As times get even tougher and people get even poorer, the “authorities” will intensify their efforts to extract the funds needed to meet fiscal obligations.  The first round of “austerity measures” imposed by European governments provides the first taste of what to expect from recession-plagued nations.  As the Great Recession extends its global reach, those high-flying emerging markets, which “experts” claim are immune, will also be submerged beneath loads of crushing debt and will also resort to austerity measures of their own.
 
While there will be variations on the theme, the governments’ song will be the same: cut what you give, raise what you take.  Social safety nets will be torn and public services will be cut to the bone.  Getting a lot less will cost taxpayers a lot more.  While corporate tax rates are held sacrosanct and tax breaks and loopholes for the wealthy are maintained or widened, the arm of the revenuers and the arm of the law will reach ever deeper into the pockets of prols.  The dulled minds of bureaucrats, whose own jobs depend on a steady stream of public funds, will shine with creativity as they look for any angle to wring the last penny from working men and women.


Sales taxes, sin taxes, highway tolls, meter fees, park permits, license fees, water rates, and the fines for every minor violation – from nuisance laws to speeding tickets and jaywalking to litterbugging – will go as high as the traffic can bear … before it goes even higher.

 
4.  Crime Waves  
No job + no money + compounding debt = high stress, strained relations, short fuses.  In 2011, with the fuse lit, it will be prime time for Crime Time.  With little hope, few options, closed doors, and deep despair, Americans who had never thought of themselves as criminals will be driven to do what they have to in order to survive.

As Gerald Celente says, “When people lose everything and they have nothing left to lose, they lose it.”  Besides, from top to bottom, crime has become institutionalized.  In governments worldwide and from Broad Street to Wall Street, throughout corporate culture, and even at the bottom of the pile – among the welfare cheats and disability frauds – taking a stab at crime was already “as American as apple pie.”

Aside from the “filthy rich,” hardship-driven crimes will be committed across the socioeconomic spectrum by legions of the on-the-edge desperate who will do whatever they must to keep a roof over their heads and put food on the table.

 
5.  Crackdown on Liberty  
As crime rates rise, so will the voices demanding a crackdown.  Not only will fighting crime be a major plank in campaign platforms, it will provide yet another weapon in the crackdown on liberty.  Under the rubric of Homeland Security and with the avowed purpose of fighting a “War on Terror,” Americans have already been stripped of critical Constitutional Rights.  Now, with a new front opening up, a national crusade to “Get Tough on Crime” will be waged against the citizenry.  And just as in the “War on Terror,” where “suspected terrorists” are killed before proven guilty or jailed without trial, in the “War on Crime” everyone is a suspect until proven innocent.

Beyond the warrantless wire taps, computer intrusions, GPS monitoring, stop-and-frisk searches, full-body scanning, TSA groping, and CCTVs or Google Street View watching every move – even the skies will know no limit to surveillance.  Added to the satellite images taken from space, military-style aerial vehicles (UAVs) will soon bring the Afghanistan experience to American neighborhoods, starting with the Miami PD’s purchase of unmanned drones to hover over homes, follow suspects, and track enemies of the state.


6.  Alternative Energy  As gasoline prices speed past $3 a gallon and endless arguments about global warming wear on, the world is expecting the “usual suspects” of solar panels, wind and water turbines, geothermal, and biomass to provide tomorrow’s green, renewable power.  But our real energy future lies on the far side of these interim technologies.

In laboratories and workshops unnoticed by mainstream analysts, scientific visionaries and entrepreneurs are forging a new physics incorporating principles once thought impossible, working to create devices that liberate more energy than they consume.  Inventions that manipulate the hydrogen atom, spark low-temperature, radiation-free nuclear reactions, and capture useful power from the energy fields that surround us, are poised for commercialization.

What are they, and how long will it be before they can be brought to market?  Shrewd investors will ignore the “can’t be done” skepticism, and examine the new trend opportunities to determine the winners and reap the rewards.


And rewards there will be.  For those who are ahead of the times and on top of the trends of 2011 – developing, preparing, and planning for what lies ahead – there will be ample opportunities to be seized.  Fortunes, names, and careers will be made by tapping into the newly emerging energy trends that will come of age in 2011.

  
7.  Journalism 2.0
  Though the trend has been in the making since the dawn of the Internet Revolution, 2011 will mark the year that new methods of news and information distribution will render the 20th century model obsolete.  With universal access to publishing and broadcast technology, web news is able to escape the stultifying and elitist agendas of the mainstream media.  With its unparalleled reach across borders and language barriers, “Journalism 2.0” has the potential to influence and educate citizens in a way that governments and corporate media moguls would never permit.  Of the hundreds of trends we have forecast over three decades, few have the possibility of such far-reaching effects.
  
8.  Cyberwars 
 Just a decade ago, when the digital age was blooming and hackers were looked upon as annoying geeks, we forecast that the intrinsic fragility of the Internet and the vulnerability of the data it carried made it ripe for cyber-crime and cyber-warfare to flourish.  In 2000, even while downplaying the severity of the risk, governments and e-commerce titans boasted that they could provide ample defenses.

In 2010, every major government acknowledged that Cyberwar was a clear and present danger and, in fact, had already begun.  Stuxnet, WikiLeaks and a host of “Anonymous” battles have disrupted infrastructures, compromised government secrets, planted malware (secret digital agents) deep in the most crucial government, military and control centers, and closed down e-commerce at will.

  
The demonstrable effects of Cyberwar and its companion, Cybercrime, are already significant.  Equally disruptive will be the harsh measures taken by global governments –  in the name of Internet Security and fighting the “War on Terror” – to control free access to the web, identify its users, and literally shut down computers that it considers a threat to national security … however they define it.

9.  Youth of the World Unite  
University degrees in hand yet out of work, in debt and with no prospects on the horizon, feeling betrayed and angry, forced to live back at home, with time on their hands and testosterone surging through their bodies –  young adults and 20-somethings are mad as hell, and they’re not going to take it anymore.
  
Educated enough to understand that they will ultimately have to shoulder the debt burden acquired by their governments, as well as suffer from austerity measures, they are also savvy enough to know that if they don’t fight “against the machine” now, they will be run over by it for the rest of their lives.  Filled with vigor, rife with passion, but not mature enough to control their impulses, the confrontations they engage in will often escalate disproportionately.

  
Anyone wondering about what happened to the protest spirit of earlier decades, will discover that all it takes to get youth back into the streets is a developed sense of the personal price that is being exacted from them.  

Government efforts to exert control and return the youth to quiet complacency will be ham-fisted and ineffectual.  Each small success and perceived incidence of government “caving” will lead to intensified protest.  The Revolution will be televised … and blogged, YouTubed and Twittered.


10.  End of The World!
  Get ready for Armageddon. The closer we get to 2012, the louder the calls will be that the “End is Near!”
 
Of course there have always been sects, at any time in history, that saw signs and portents proving the end of the world was imminent.  But 2012 seems to hold a special meaning across a wide segment of “End-time” believers.

  
Among the Armageddonites, the 
actual end of the world and annihilation of the planet in 2012 is a matter of certainty.  Some point to scripture, be it Revelations or Luke, as the source for their prophesies.  Others say it was written in stone over a thousand years ago, in the detailed and sophisticated Mayan/Hopi calendar.  These believers pinpoint the coming of the “end” to occur on 21 December 2012.

Even the rational and informed who carefully follow the news of never-ending global crises, may sometimes feel the world is in a perilous state.  Both streams of thought are leading many to reevaluate their chances for personal survival, be it in heaven or on earth.


For the non-religious/non-prophesy prone, who fear economic, social and military chaos, “Survivalism” – and all that it entails – is a trend that will dominate in the year to come.

 
For the others, repenting, converting, doing penance and praying will take up much of the energy that could otherwise be directed toward securing their safety in the here and now.


11.
  The Mystery Trend ... will be revealed the second week of January. 

Rest assured if there are any major developments or events that transpire between now and when the Trends Journal comes out, you will be notified via a Trend Alert.


Best wishes for a joyous holiday season and a healthy and prosperous new year.

Gerald Celente



CC: MMX The Trends Research Institute

2010-12-06

Bernanke in Review

Kass: In Bernanke We Trust?

Doug Kass


"It is better to keep your mouth closed and let people think you are a fool than to open it and remove all doubt."-- Mark Twain
Last night, Fed Chairman Ben Bernanke appeared on "60 Minutes." Here is the tape.

Among the more interesting comments was Bernanke's statement that he is 100% sure that the Fed can contain inflation.

As everyone is now acutely aware, I have long been skeptical of the Fed's QE2 program (and the equity market's positive response) and, for that matter, the monetary policies of Federal Reserve Chairmen Greenspan and Bernanke.

On this subject, I have previously chronicled numerous misguided comments made by the Fed Chairman over the past five years on derivatives, the financial crisis, housing and the economy (hat tip from Bill King for calling it to my attention).


On the Economy

  • In February 2006, Ben Bernanke, as President Bush's Chairman of the Council of Economic Advisers, was responsible for drafting the Economic Report of the President, which claimed the following: "The economy has shifted from recovery to sustained expansion.... The U.S. economy continues to be well positioned for long-term growth." In this report, Bernanke projected the unemployment rate to be 5% from 2008 through 2011.
  • On July 20, 2006, Fed Chairman Bernanke referred to the economy as "robust" and "strong."
  • On February 15, 2007, Fed Chairman Bernanke said, "Overall economic prospects for households remain good. The labor market is expected to stay healthy. And real incomes should continue to rise. The business sector remains in excellent financial condition."
  • On July 18, 2007, Fed Chairman Bernanke said, "Employment should continue to expand.... The global economy continues to be strong ... financial markets have remained supportive of economic growth."
  • On February 27, 2008, Fed Chairman Bernanke said, "The nonfinancial business sector remains in good financial condition with strong profits, liquid balance sheets and corporate leverage near historic lows.... Projections for the unemployment rate in the fourth quarter of 2008 have a central tendency of 5.2% to 5.3%, up from the level of about 4.75% projected last July for the same period. By 2010, our most recent projections show output growth picking up to rates close to or a little above its longer-term trend, and the unemployment rate edging lower. The improvement reflects ... an anticipated moderation of the contraction in housing and the strains in financial and credit markets."
  • On June 9, 2008, Fed Chairman Bernanke said, "The risk that the economy has entered a substantial downturn appears to have diminished over the past month or so."
  • On May 5, 2009, in front of the Joint Economic Committee, Fed Chairman Bernanke said, "Currently, we don't think [the unemployment rate] will get to 10%." In November the unemployment rate hit 10.2%.

On the Housing Market

  • July 1, 2005: Bernanke, then President Bush's Chairman of the Council of Economic Advisers had the following exchange with CNBC:
    CNBC interviewer: Ben, there's been a lot of talk about a housing bubble, particularly, you know, from all sorts of places. Can you give us your view as to whether or not there is a housing bubble out there?Bernanke: Well, unquestionably, housing prices are up quite a bit; I think it's important to note that fundamentals are also very strong. We've got a growing economy, jobs, incomes. We've got very low mortgage rates. We've got demographics supporting housing growth. We've got restricted supply in some places. So, it's certainly understandable that prices would go up some. I don't know whether prices are exactly where they should be, but I think it's fair to say that much of what's happened is supported by the strength of the economy.
    Interviewer: Tell me, what is the worst-case scenario? We have so many economists coming on our air saying, "Oh, this is a bubble, and it's going to burst. And this is going to be a real issue for the economy." Some say it could even cause a recession at some point. What is the worst-case scenario if in fact we were to see prices come down substantially across the country?
    Bernanke: Well, I guess I don't buy your premise. It's a pretty unlikely possibility. We've never had a decline in house prices on a nationwide basis. So, what I think what is more likely is that house prices will slow, maybe stabilize, might slow consumption spending a bit. I don't think it's gonna drive the economy too far from its full employment path, though.
  • On February 15, 2006, Fed Chairman Bernanke said, "The housing market has been very strong for the past few years.... It seems to be the case, there are some straws in the wind, that housing markets are cooling a bit. Our expectation is that the decline in activity or the slowing in activity will be moderate, that house prices will probably continue to rise but not at the pace that they had been rising. So we expect the housing market to cool but not to change very sharply."
  • On February 15, 2007, Fed Chairman Bernanke said, "The weakness in housing market activity and the slower appreciation of house prices do not seem to have spilled over to any significant extent to other sectors of the economy."
  • On March 28, 2007, Fed Chairman Bernanke said, "The impact on the broader economy and financial markets of the problems in the subprime markets seems likely to be contained."
  • On May 17, 2007, Fed Chairman Bernanke said, "We do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system."
  • On February 27, 2008, Fed Chairman Bernanke said, "By later this year, housing will stop being such a big drag directly on GDP.... I am satisfied with the general approach that we're currently taking."

On the Financial Crisis

  • On February 15, 2007, Fed Chairman Bernanke said, "The Federal Reserve takes financial crisis management extremely seriously, and we have made a number of efforts to improve our monitoring of the financial markets to study and assess vulnerabilities, and to strengthen our own crisis management procedures and our business continuity plans."
  • On February 28, 2008, Fed Chairman Bernanke said, "Among the largest banks, the capital ratios remain good, and I don't expect any serious problems ... among the large, internationally active banks that make up a very substantial part of our banking system."
  • On July 16, 2008, Fed Chairman Bernanke said that Fannie Mae (FNM) and Freddie Mac (FRE) are "adequately capitalized" and "in no danger of failing." Since then, Fannie Mae and Freddie Mac have received a $200 billion bailout and have been taken over by the federal government.

On Derivatives

While Warren Buffett warned that derivatives were "financial weapons of mass destruction" that pose a "mega-catastrophic risk" to the economy in 2003, Bernanke supported the deregulation of these risky schemes.
  • In November of 2005, Mr. Bernanke was questioned by then-Senate Banking Committee Chairman Paul Sarbanes:
    Sarbanes: Warren Buffett has warned us that derivatives are time bombs, both for the parties that deal in them and the economic system. The Financial Times has said so far, there has been no explosion, but the risks of this fast-growing market remain real. How do you respond to these concerns?Bernanke: I am more sanguine about derivatives than the position you have just suggested. I think, generally speaking, they are very valuable. They provide methods by which risks can be shared, sliced and diced, and given to those most willing to bear them. They add, I believe, to the flexibility of the financial system in many different ways. With respect to their safety, derivatives, for the most part, are traded among very sophisticated financial institutions and individuals who have considerable incentive to understand them and to use them properly. The Federal Reserve's responsibility is to make sure that the institutions it regulates have good systems and good procedures for ensuring that their derivatives portfolios are well managed and do not create excessive risk in their institutions.
  • On February 27, 2008, Fed Chairman Bernanke said, "If you have two investment banks doing an over-the-counter derivatives transaction, presumably they both are well-informed and they can inform that transaction without necessarily any government intervention."
  • On July 10, 2008, Fed Chairman Bernanke said, "Since September 2005, the Federal Reserve Bank of New York has been leading a major joint initiative by both the public and private sectors to improve arrangements for clearing and settling credit default swaps and other OTC derivatives.... I don't think the system is broken, but it does need some improvement in execution.
Doug Kass writes daily for RealMoney Silver, a premium bundle service from TheStreet.com. For a free trial to RealMoney Silver and exclusive access to Mr. Kass's daily trading diary, please click here.

2010-12-05

No Way to Run a War!

In Pakistan, Drones Won't Be Enough


Posted 11/29/2010 06:55 PM ET
 War On Terror: Three troubling developments in Pakistan call into question the effectiveness of the administration's drone-centered strategy there. It may be time to rethink it.
To be sure, the graveyard of "No. 3" al-Qaida figures eliminated by drones is deep. But many of these "kills" have turned out to be midlevel operatives outside al-Qaida's inner circle. 
The fact remains that no top-tier al-Qaida leader has been successfully targeted. Those still at large include: Osama bin Laden; his son, Saad bin Laden; Ayman al-Zawahiri; Adnan El Shukrijumah; Adam Gadahn; Suleiman al-Gaith; Mahfouz al-Walid; and Saif al-Adel.
The FBI's Most Wanted Terrorists list today is almost identical to its pre-9/11 list. The only difference is these monsters are in Pakistan instead of Afghanistan.
It bears repeating: Almost a decade after ordering the 9/11 attacks on America, al-Qaida's core leadership has not been decapitated from its body of followers. It's still intact and still calling the shots.
Take al-Adel, recently appointed by bin Laden to command al-Qaida's war against the West. He's believed to be behind the terror group's new "death by a thousand cuts" strategy of launching smaller, more frequent attacks — including Mumbai-style terror across Europe and cargo bombings of planes over U.S. cities.
As they continue to plot against us, we're going after these al-Qaida leaders in virtually the same way we did before 9/11 — lobbing missiles at them, only this time from drones instead of ships.
Over the past two years alone, the U.S. has carried out an astounding 154 drone missile strikes in Pakistan. Yet not a single one hit a truly high-value al-Qaida target.
Now the administration, according to the Washington Post, has asked the Pakistani government to let the CIA expand its target range from Pakistan's tribal region to areas around the city of Quetta, where intelligence suggests al-Qaida and Taliban leaders are holed up.
Islamabad reportedly has turned down the request, citing growing anger over civilian casualties from other drone strikes.
Meanwhile, Pakistan's military has further delayed its long-promised offensive against terrorists in North Waziristan, despite $2 billion in U.S. military aid for the campaign.
Washington has pushed for several years for Islamabad to launch a major military operation in the region, in lieu of our own boots on the ground there.
But Pakistan wouldn't budge, blaming a lack of resources. Now that the army has its money, it still won't march into the region.
The Joint Chiefs of Staff chairman, Adm. Mike Mullen, said last month that he was assured by Pakistan's army chief that there will be an offensive in the tribal region along the Afghan border.
Only the Pakistani is still not moving his forces into the region. The Pakistani government this week indicated it might delay the offensive by four to six months.
So here's what we're left with: an ineffective air campaign against al-Qaida's leadership, and no ground campaign at all against it.
The White House, in the words of security aide John Brennan, says it will continue to rely on "the scalpel" instead of "the hammer" to dismantle al-Qaida in Pakistan.
Clearly more is needed. It can start with tougher diplomacy. Tying aid closer to Islamabad's cooperation and anti-terror results is an obvious step.
In addition, the White House must issue a stern warning to Pakistan's leaders: Should a major U.S. attack be linked back to Pakistan, the U.S. will declare their country a terror state and deny it all aid — military and economic — as well as reinstate sanctions.
The risks are too great to continue to let this putative ally play a double game.

Obama: One Bad Job!

More CEOs Seeing Obama As Bad Hire


Posted 09/21/2010 07:03 PM ET
The Presidency: He doesn't look or sound radical. President Obama, in fact, is so calm, almost regal, he makes government takeovers and redistribution schemes seem almost reasonable. But the facade is wearing thin.
Fortune 500 leaders who believed Obama's moderate rhetoric, and even raised cash and voted for him, have soured on him. They now believe he's bad for business and hostile to the American free enterprise system.
Even die-hard Obama fan Tom Wilson, head of Allstate, says the president could have used some executive experience on his all-academic economics team. Not a single former corporate executive is in Obama's Cabinet or among his top economic advisers. "I think it was a hiring mistake for the administration," Wilson told CNN last week.
Wilson also suggests Obama convene a summit with business leaders to clear the air. "I'd spend less time on the G-20 and more time on the U.S. 100," he advised.
Problem is, CEOs have walked away from prior White House luncheons shocked at (1) Obama's dismissive reaction as they try to explain the harm of his anti-business policies and (2) his shallow understanding of business and economic matters.
They're not just put off by the president's harsh depiction of "fat cat bankers" and other anti-business bashings. They're more disturbed by his arrogant ignorance. "The truth is that not even the Franklin Roosevelt administration was as hostile to and ignorant about free enterprise as this administration is," said publisher Steve Forbes.
Few before the election dared call Obama the "s" word. Independent voters, who ensured Obama's victory, generally considered him to be a centrist or slightly left of center. Now they view him as extremely liberal. And by Democrats' own polling, a solid majority — 55% — of all likely voters now think "socialist" is a more accurate way to describe Obama.
Hate to say we told you so. But we did.
In 2008, we ran a 16-part series called "The Audacity of Socialism" that warned that Obama was a closet socialist and, if elected, would lead the most anti-business administration in U.S. history. As proof, we offered countless examples of Obama's past associations with not just socialists, but also out-and-out communists, and dug into his voting record as the most liberal member of the Senate. We also explained how Obama used his training as an Alinsky street organizer to disguise his radicalism and appeal to the middle class.
Our series was panned by some as over the top and alarmist. But the record was there for anyone to see. If only others had called things by their proper names back then, to vet rather than anoint, we might be well into a robust recovery now, possibly even closing in on the Dow's pre-crisis peak of 14,000.
Instead, we have an economy that's a basket case, tied up by reams of new government red tape, and a market mired in uncertainty, trading in a narrow band reminiscent of the 1970s.
The reason: We have an administration that meddles in virtually every part of the economy, "injecting uncertainty into the marketplace and making it harder to raise capital and create new businesses," said Verizon Communications Chairman Ivan Seidenberg, an early Obama supporter now suffering buyer's remorse.
Capital is the lifeblood of the economy. Yet Obama is deliberately trying to downsize the financial sector. He says his sweeping new regulations are designed to clamp down on bank profits and shrink the sector as a share of the U.S. economy.
"What I think will change, what I think was an aberration, was a situation where corporate profits in the financial sector were such a heavy part of our overall profitability over the last decade," he says, adding that his "more vigorous regulatory regime" will "inhibit" the industry's growth.
Think about it: The president is engineering a controlled starvation of America's most important industry — financial capital — as punishment for allegedly causing a crisis that anti-bank community organizers and housing-rights zealots like him caused.
Intel CEO Paul Otellini, another early Obama supporter, now thinks the president "does not understand what it takes to create jobs." Yet he denies Obama is "anti-business."
It's time we stopped giving this president the benefit of the doubt, stopped holding back candid criticism. Too much is at stake. The signs that he's implementing a radically anti-capitalist agenda are too many and too obvious to ignore.
Given Obama's background, what could possibly make anybody think he would be pro-business?
As we argued before the election, it's no coincidence that:
• Practically every hero, mentor, adviser or friend in Obama's life has supported Marxism, including: Raila Odinga, James Cone, Dwight Hopkins, Jeremiah Wright, Frank Davis, Jim Wallis, Saul Alinsky, John McKnight, Cornel West and William Ayers, who launched Obama's political career in his living room.
• He was drawn to Marxists as a student and regularly attended "socialist conferences" (his words) at Columbia University.
• He devoted his first memoir to his late communist-sympathizing father, who proposed massive taxes and redistribution of income in Kenya. ("What is more important is to find means by which we can redistribute our economic gains to the benefit of all," wrote Barack Hussein Obama Sr., a Harvard-educated economist, in a 1965 policy paper completely ignored by the big media. "This is the government's obligation.")
• He eschewed the private sector after college to work as a community organizer for radical Alinsky groups in Chicago, agitating against banks and other businesses.
Ward Connerly, a conservative former University of California regent, says he's known many community organizers and all believed capitalism was evil and needed to be replaced by socialism.
"Every community organizer I've known believes that the system is inherently flawed," he said. "Capitalism doesn't work in their view, because it doesn't distribute enough of its benefits to enough people."
Perhaps Obama has outgrown such idealism? Not a chance.
"My views are not so much more refined than they were when I labored in obscurity as a community organizer," Obama revealed the year before he launched his run for the White House.
Obama's not a liberal in the tradition of Bill Clinton, Jimmy Carter or even Roosevelt. Obama's a liberal like we've never seen before. And he's planning to do even more damage to the economy, making November's election one of the most important in history.