Wednesday, June 16, 2010

SEC’s Senior Staff/Inmates Are Running the Asylum **STRONGLY RECOMMENDED**

Any employee in any organization knows that an internal disciplinary double standard is the quickest way to kill morale. Happens all the time, right? Likely even worse in organizations with lots of bureaucracy? Uncle Sam would not know how to operate otherwise, you say? The answers to all those questions may be the affirmative, but that does not make a double standard right nor does it mean that it should be tolerated. Why do I broach this topic?

Our friends at the Project on Government Oversight (POGO) released a report just yesterday highlighting the pathetic disciplinary measures and massive double standard at the SEC in responding to recommendations from its own Office of Inspector General (OIG). POGO reports:

….this is not the first time the SEC has refused to follow an OIG recommendation for disciplinary action. A report recently released by House Oversight and Government Reform Committee Ranking Member Darrell Issa (R-CA) made note of the fact that the SEC has repeatedly failed to implement reforms or hold wrongdoers accountable. The report mentioned an investigation by POGO which revealed that the SEC has failed to act on hundreds of recommendations made by the OIG in recent years.

Following up on that investigation, we’ve prepared a new document summarizing the agency’s response to reports in which the OIG specifically recommended disciplinary action. This information mostly comes from the OIG’s semiannual reports to Congress and documents obtained through the Freedom of Information Act (FOIA). As you can see, the SEC has taken little to no action on many of these recommendations, especially when the individual cited is a senior official.

By failing to take disciplinary action against the two senior officers named in the OIG’s FWRO (Fort Worth Regional Office) report, the SEC continues to broadcast the message that senior management will not be held personally accountable for misconduct, no matter how egregious.

Just how egregious are some of the findings made by the OIG? Let’s navigate and review the report from POGO highlighting 18 separate instances in which the OIG recommended disciplinary action and in which ‘no action’ was taken. I found the following six to be the most outrageous. The OIG’s findings include (I recommend you take a deep breath first!!):

1. Disclosure of non-public information
2. Inappropriate conduct
3. Misuse of official position
4. Misuse of government computer resources to assist Ponzi scheme and violations of standards of ethical conduct. (Are you kidding me? This is not a major front page story? A Supervisor in the SEC’s Office of Administrative Services is found by the OIG to have engaged in these behaviors and is allowed to retire without disciplinary action being taken?? What a joke!!)
5. Suspicions of insider trading and appearances of impropriety in financial transactions. (In light of this reality, we should certainly not expect the SEC’s OCIE to pursue the insider trading and front running at FINRA in its liquidation of auction-rate securities in 2007!!)
6. Conflict of interest and improper solicitation of gifts.

For those interested in viewing the POGO report in its entirety, please click on the image:


Yes, boys and girls, that is your government and your tax dollars at work. Accountability? Transparency? Integrity? A ‘new’ SEC? Talk is cheap. This report is strong evidence that the senior inmates are running the asylum at the SEC.

In light of this report, is there truly any surprise how and why Wall Street has run roughshod over Main Street?

What happened to our country?

LD

P.S. Hats off to POGO for great work!!

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153. We Ain’t Seen Nothin’ Yet

What does the state-bank-military complex plan next? As the second stage of the financial crisis hits, says Gerald Celente, we can expect them to start another war to divert people’s attention from the wholesale robbery of the productive. He also fears that WWIII will start when Israel or the US attacks Iran. It could go nuclear, or involve biological WMD. But that won’t prevent the default of the UK, Spain, Ireland, and the rest, and the continued rip-off the people by the “Harvard-Princeton-Yale-Bullets-Bombs-Banks” regime. The result, says Gerald, will be worldwide civil unrest. This is, after all, a bunch that can’t stop an oil leak. He tells us what he is doing to protect himself.

BP Gets OK To Burn Off Captured Oil, Gas At Sea

PASS CHRISTIAN, Mississippi (AP) ― BP won permission to start burning oil and gas piped up from its broken seafloor well as part of a pledge to more than triple how much crude it stops from spewing into the Gulf of Mexico.

Federal authorities gave permission late Monday for BP PLC to use a new method that involves pumping oil from the busted wellhead to a special ship on the surface, were it would be burned off rather than collected.

The British oil giant announced Monday it hopes to trap as much as 2.2 million gallons (8.3 million liters) of oil daily by the end of June as it deploys additional containment equipment, including the flaring system.

But BP suffered a setback on Tuesday when a bolt of lightning struck the Discoverer Enterprise, which is the ship capturing oil from the blown-out well, and ignited a fire that halted containment efforts.

The fire was quickly extinguished and no one was injured. BP said it resumed containing oil from the well Tuesday afternoon after a five-hour interruption in operations.

The new BP plan, unveiled after the federal government pressed BP to work faster on containing the gusher, came as President Barack Obama paid his fourth visit to the stricken Gulf and promised residents that life would return to normal after the worst oil spill in U.S. history, which has disrupted fishing and tourism and spoiled ecologically rich estuaries.

Some Gulf Coast residents seemed skeptical of the promises from the president and the oil company.

"I think that as long as BP is still in control, there's not a lot he can do other than show support for the residents of these Gulf states," Jennifer Jenkins, 34, of Long Beach, said of Obama.

The president visited Mississippi and Alabama Monday as part of a two-day stop. He sought to assure residents — and the country — that the government will "leave the Gulf Coast in better shape than it was before." He visits Florida on Tuesday ahead of a national address on the worst environmental disaster in U.S. history, which has become a stern test of his presidency.

While the president was on the Gulf, congressional investigators released documents that showed BP made a series of money-saving shortcuts and blunders that dramatically increased the danger of a destructive spill from a well that an engineer ominously described as a "nightmare" just six days before the April blowout.

Investigators found that BP was badly behind schedule on the project and losing hundreds of thousands of dollars with each passing day, and responded by cutting corners in the well design, cementing and drilling efforts and the installation of key safety devices.

The House Energy and Commerce Committee released dozens of internal documents that outline several problems on the deep-sea rig in the days and weeks before the April 20 explosion that killed 11 workers and set in motion the catastrophe. The committee has been investigating.

"Time after time, it appears that BP made decisions that increased the risk of a blowout to save the company time or expense. If this is what happened, BP's carelessness and complacency have inflicted a heavy toll on the Gulf, its inhabitants, and the workers on the rig," said Democratic Reps. Henry A. Waxman and Bart Stupak.

Asked about the investigation, BP spokesman Mark Proegler said the company's main focus right now is on the response and stopping the flow of oil.

The breached well has dumped as much as 114 million gallons (432 million liters) of oil into the Gulf under the worst-case scenario described by scientists — a rate of more than 2 million gallons (7.5 million liters) a day. BP has collected 5.6 million gallons (21 million liters) of oil through its latest containment cap on top of the well, or about 630,000 gallons (2.4 million liters) per day.

To trap more oil faster, BP would continue to siphon off the flow from a containment cap sitting above the well to a drill ship sitting on the ocean surface. More oil from the blowout preventer — a stack of pipes sitting on the seafloor — also would be drawn through hoses and pipes to a drilling rig where it will be burned using a specialized flare.

Still, BP warned its containment efforts could be hampered if hoses or pipes clog and as engineers struggle to run the complicated collection system.

Also, BP spokesman Bill Salvin told The Associated Press that the company has contracted with actor Kevin Costner and Ocean Therapy Solutions to use 32 of their centrifuge machines that are designed to separate oil from water.

"We recognized they had potential and put them through testing, and that testing was done in shallow water and in very deep water and we were very pleased by the results," Salvin said.

___

Associated Press Writers Matthew Daly in Washington, Erica Werner in Theodore, Alabama, Jay Reeves in Orange Beach, Alabama, and Harry R. Weber in Houston contributed to this report.

(© 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

Water on Fire: Controlled Burns of Spilled Oil

(CBS) People here in the oil's bull's-eye need a lot more help than just protective boom. So out in the Gulf, smoke is a signal that less oil's coming ashore.

Fire on the water: It's oil, burning in towering columns of smoke and flame. Sixty miles into the Gulf is one of BP's frontline defenses against floating oil reaching shore reports CBS News correspondent Mark Strassmann.

Special Section: Disaster in the Gulf

"As far as the front line goes, you can't get more front than this," says oil spill expert Al Allen.

This is by far the biggest controlled burn in history. Sometimes multiple fires burn at once. They resemble a roaring tornado of flames.

Up close there's a sound this burning oil makes, a crackling, bubbling noise like a Fryolator along with a whooshing noise from the flame tornados inside the bigger fire. The heat is intense. Flame temperatures can reach 2,000 degrees. That's hot enough to melt steel, and with so much oil in these waters some of these fires burn for more than six hours.

BP's "Burn Box" Ignites Oil Collecting on Gulf
BP Engineer Called Doomed Rig a "Nightmare Well"
Oil Spill Underwater Sensors to Gauge Flow
Obama Set for 4th Tour of Gulf Oil Spill Damage
Obama Compares Gulf of Mexico Oil Spill to 9/11
BP Speeds up Containment Plan for Gulf Oil Spill
Govs: Media Over-Hyping Extent of Spill Damage
Allen: Oversight Needed of BP's Claim Payments

Here's how the operation works. From a plane, spotters like Al Allen look for long streamers of heavy crude and direct shrimp boats with fire resistant boom down below into position.

"We talk to pilots and we talk to captains on the boats and we vector them into the oil," says BP engineer Nere Mabile.

The shrimpers corral the oil, what they call "the pudding." Then they wait for the "igniter boat."

Controlled burn igniter Anthony Verdin lights the flare that melts a jug filled with kerosene and accelerant gel. It ignites the oil. Within minutes a small fire can become a massive one. Big fires burn off 2,000 gallons a minute.

"Sometimes they get bigger. Sometimes they get smaller. It's never the same fire," says Verdin.

So far these fires have burned more than 4.5 million gallons of oil. That's only a fraction, maybe three days worth, of BP's overall leak. Every gallon burned is one less gallon making landfall on someone's coastline.

Coordinators of those burns say breathing that smoke is less dangerous than smoking cigarettes, but it is a nuisance.

Nightmare vision for Europe as EU chief warns 'democracy could disappear' in Greece, Spain and Portugal

  • EU begin emergency billion-pound bailout of Spain
  • Countries in debt may fall to dictators, EC chief warns
  • 'Apocalyptic' vision as some states run out of money

Democracy could ‘collapse’ in Greece, Spain and Portugal unless urgent action is taken to tackle the debt crisis, the head of the European Commission has warned.

In an extraordinary briefing to trade union chiefs last week, Commission President Jose Manuel Barroso set out an ‘apocalyptic’ vision in which crisis-hit countries in southern Europe could fall victim to military coups or popular uprisings as interest rates soar and public services collapse because their governments run out of money.

The stark warning came as it emerged that EU chiefs have begun work on an emergency bailout package for Spain which is likely to run into hundreds of billions of pounds.

Crisis point: Demonstrators protest cuts announced by the Government in Malaga last week in an echo of the Greek crisis

Crisis point: Demonstrators protest cuts announced by the Government in Malaga last week in an echo of the Greek crisis

A £650 billion bailout for Greece has already been agreed.

John Monks, former head of the TUC, said he had been ‘shocked’ by the severity of the warning from Mr Barroso, who is a former prime minister of Portugal.

Mr Monks, now head of the European TUC, said: ‘I had a discussion with Barroso last Friday about what can be done for Greece, Spain, Portugal and the rest and his message was blunt: “Look, if they do not carry out these austerity packages, these countries could virtually disappear in the way that we know them as democracies. They've got no choice, this is it.”

‘He's very, very worried. He shocked us with an apocalyptic vision of democracies in Europe collapsing because of the state of indebtedness.’

Greece, Spain and Portugal, which only became democracies in the 1970s, are all facing dire problems with their public finances. All three countries have a history of military coups.

Greece has been rocked by a series of national strikes and riots this year following the announcement of swingeing cuts to public spending designed to curb Britain’s deficit.

Spain and Portugal have also announced austerity measures in recent weeks amid growing signs that the international markets are increasingly worried they could default on their debts.

General Francisco Franco
Georgios Papadopoulos
Ant¢nio-de-Oliveira-Salazar

Dictatorships: An end to democracy in Europe could see a return of figures ruling dictatorships. General Franco was dictator of Spain until 1975; Georgios Papadopoulos led a military junta until 1973; and Antonio de Oliveira Salazar ruled as Portugese president until 1968

Other EU countries seeing public protests over austerity plans include Hungary, Italy and Romania, where public sector pay is to be slashed by 25 per cent.

Deputy Prime Minister Nick Clegg, who visited Madrid last week, said the situation in Spain should serve as a warning to Britain of the perils of failing to tackle the deficit quickly.

He said the collapse of confidence in Spain had seen interest rates soar, adding: ‘As the nation with the highest deficit in Europe in 2010, we simply cannot afford to let that happen to us too.’

Mr Barroso’s warning lays bare the concern at the highest level in Brussels that the economic crisis could lead to the collapse of not only the beleaguered euro, but the EU itself, along with a string of fragile democracies.

DICTATORSHIPS

GREECE: Georgios Papadopoulos was dictator from 1967 to 1974.
The Colonel led the military coup d'etat in 1967 against King Constantine II amid political instability. He was leader of the junta which ruled until 1974.
Papadopoulos was overthrown by Brigadier Dimitrios Ioannidis in 1973. Democracy was restored in 1975.

SPAIN: General Francisco Franco led Spain from 1936 until his death in 1975. At the end of the Spanish Civil War he dissolved the Spanish Parliament and established a right-wing authoritarian regime that lasted until 1978. After his death Spain gradually began its transition to democracy.

PORTUGAL: Antonio de Oliveira Salazar's regime and its secret police ruled the country from 1932 to 1968. He founded and led the Estado Novo, the authoriatan, right-wing government that controlled Portugal from 1932 to 1974. After Salazar's death in 1970, his regime persisted until it eventually fell after the Carnation Revolution.

But it risks infuriating governments in southern Europe which are already struggling to contain public anger as they drive through tax rises and spending cuts in a bid to avoid disaster.

Mr Monks yesterday warned that the new austerity measures themselves could take the continent ‘back to the 1930s’.

In an interview with the Brussels-based magazine EU Observer he said: ‘This is extremely dangerous.

'This is 1931, we're heading back to the 1930s, with the Great Depression and we ended up with militarist dictatorship.

‘I'm not saying we're there yet, but it's potentially very serious, not just economically, but politically as well.’

Mr Monks said union barons across Europe were planning a co-ordinated ‘day of action’ against the cuts on 29 September, involving national strikes and protests.

David Cameron will travel to Brussels on Thursday for his first summit of EU leaders since the election.

Leaders are expected to thrash out a rescue package for Spain’s teetering economy. Spain is expected to ask for an initial guarantee of at least £100 billion, although this figure could rise sharply if the crisis deepens.

News of the behind-the-scenes scramble in Brussels spells bad news for the British economy as many of our major banks have loaned Spain vast sums of money in recent years.

Germany’s authoritative Frankfurter Allgemeine Newspaper reported that Spain is poised to ask for multi-billion pound credits.

Mr Barroso and Jean-Claude Trichet of the European Central Bank are united on the need for a rescue plan.

The looming bankruptcy of Spain, one of the foremost economies in Europe, poses far more of a threat to European unity and the euro project than Greece.

Greece contributes 2.5 percent of GDP to Europe, Spain nearly 12 percent.

Yesterday’s report quoted German government sources saying: ‘We will lead discussions this week in Brussels concerning the crisis. It has intensified to the point that the states do not want to wait until the EU summit on Thursday in Brussels.”’

At the end of last month the credit rating agency Fitch downgraded Spain, triggering sharp falls on stock markets.

On Friday the administration in Madrid continued to insist no rescue package was necessary. But Greece said the same thing before it came close to disaster.

Yesterday the European Commission and the statistics authority Eurostat met to consider Spain‘s plight as many EU countries consider the austerity package proposed by the Madrid administration insufficient to deal with the country‘s problems.

Dual Loyalty Revisited

Four-fifths of the U.S. House and Senate recently declared in correspondence to Secretary of State Hillary Clinton that the U.S. must reaffirm its “unbreakable bond” with Israel. What persuaded our Congress to proclaim their loyalty to Israel while our military is waging war in the Middle East based on fabricated intelligence?

Any sober assessment of this bond must concede a need to reappraise its cost in blood and treasure. Yet the Congress—our Congress—opposed that reassessment even as our commander-in-chief seeks to end a brutal Israeli occupation of Palestine that has provoked worldwide outrage for more than six decades.

The Congress and the president are sworn to the same oath of office. That oath obliges them to protect the U.S. from all threats, both foreign and domestic. The facts confirm a common pro-Israeli source of the phony intelligence that took our military to war in Iraq. All the evidence points to Israel or its surrogates, including those in the Congress. Is that why the Israel lobby pressed the Congress for a pledge of allegiance to Israel?

Giving Aid and Comfort
The U.S.-Israeli relationship has proven itself a consistent threat to our national security. That peril has only worsened with time. Tel Aviv’s massive land grab in 1967 was not “defensive”— as Israeli leaders have since conceded. That assault on its neighbors was a long-planned seizure of territory that Zionists see as rightly theirs as part of Greater Israel.

That attack provoked precisely the reaction that any competent war-planning game theorist could foresee as Israeli conduct outraged everyone in the region. As Israel’s loyal ally, the U.S., was widely perceived as guilty for our unfailing support of an expansionist agenda that the Pentagon urged we shut down in 1948.

In advising President Harry Truman against recognition of this extremist enclave as a legitimate state, the Joint Chiefs detailed the Zionists’ “fanatical concepts” including their plans for “military and economic hegemony over the entire Middle East.” Our military was correct.
Facing a decline in his approval ratings and depleted campaign coffers in the lead-up to his 1948 presidential race, Truman put his signature on a two-sentence note that on May 14th gave the Zionists what they sought: U.S. recognition. That decision began a “special relationship” that has proven consistently harmful to U.S. interests.

The Truman campaign train was then “refueled” with $400,000 from grateful Zionists ($3.6 million in 2010 dollars). As editorial support from pro-Israeli media shifted in Truman’s favor, his approval surged long enough for him to prevail in November over New York’s Tom Dewey.
Absent the Holocaust, Truman could not have recognized Zionism as a lawful basis for a sovereign state in Palestine over intense opposition from Secretary of State George Marshall, the Pentagon, the State Department Policy Planning staff and the Central Intelligence Agency. All were adamantly opposed, as were members of the U.S. diplomatic corps. They knew better.

While the politics of campaign finance clearly played a role, Truman also acted out of humanitarian and religious concerns informed by his Christian Zionist upbringing in rural Missouri where he famously read the Bible cover-to-cover five times by age 15.
His decision was also shaped by sentiments developed as a youngster steeped in a fundamentalist Baptist theology that revered the Jews’ “return to Zion” as a prerequisite for the return of the Christian messiah.

Fast forward to 2001 when, in reaction to the provocation of a mass murder on U.S. soil, another Christian Zionist (G.W. Bush) was predisposed to support a military response that coincided with an expansionist agenda long sought by those our military earlier described as fanatics.
The Six-Day Land Grab

In the minds of those who comprise the Jewish Diaspora, the Six-Day War of 1967 reactivated the mental and emotional insecurity associated with the fascists of WWII. In combination, those two events catalyzed a worldwide “internal Diaspora” based on:
Nationalism—a shared emotional bond among those persuaded they share an identity of interest between themselves and a piece of real estate on which they may never set foot. After the Six-Day War, the state of Israel became the Land of Israel based on the more expansive area it occupied and the additional territory it has yet to seize.

Insecurity—a shared sense of vulnerability and victimhood as Jews saw themselves pitted against a widely marketed and steadily shifting threat. After September 2001, the 1967 “Arab Ring of Steel” morphed into the threat of “Islamo-fascism.” When, as now, Israeli policies come under attack, media campaigns claim an outbreak of “anti-Semitism.”

Throughout this saga, certain facts have been taken for granted that are now being questioned. The Zionist premise of the Right of Return relies on an historical account now under scholarly assault. In The Invention of the Jewish People, Israeli historian Shlomo Sand challenges the factual accuracy both of the Exile and the Exodus, thereby putting in question the legitimacy of the Return, the moral foundation for Israeli statehood in Palestine.

As Egyptologists point out, this ancient civilization records little of an Exodus even though Egyptian kings were meticulous in documenting details of their monarchies. How then did such a cataclysmic event as the parting of the sea and the drowning of a mighty king along with his army pass undocumented by the Egyptians while filling an entire chapter of the Torah? Where does fact end and fiction begin?
Christians and Muslims were weaned on similar oral histories. Both faiths are derived from Judaism, an earlier religion also “of the book.” Yet the two derivatives were induced to wage war with each other by those long skilled at displacing facts with what a targeted populace can be deceived to believe—as with the fabricated “facts” about Iraq WMD, Iraqi ties to Al Qaeda, Iraqi mobile biological weapons labs and so forth. All were false. Yet all were widely believed.

A Promised Land of Myth-Makers and Story Tellers

Bound by a shared anxiety and the allure of a Promised Land offering refuge through a Right of Return, Israel initially emerged as a shared mental state. In 1948, that mental state emerged as a physical “homeland” in Palestine offering residency for those it considered “Jewish.”
In combination, the Holocaust and the Six-Day War made Zionism a geopolitical possibility. Without the fascist abuses of WWII, Truman’s recognition of Zionism as a legitimate state would have proven impossible. Absent the 1967 war, moderate Jews would have continued their opposition to a “Jewish state” as a barrier to assimilation and contrary to their values.

By regarding an enclave of religious fanatics as an entity on a par with other sovereign nations, forces were set in motion that were destined to discredit and endanger the U.S. Anti-Zionist Jews rightly worried that this expansion-seeking “state” would imperil the broader faith tradition by enabling all Jews to be portrayed as foreign agents of an aggressor nation.Moderate Jews saw that charges of “dual loyalty” could be deployed to impugn by association even those Jews appalled at what Israel was destined to become—as the Pentagon predicted.
Meanwhile pressure from the Israel lobby discredited the U.S. worldwide by ensuring Congressional indifference to six decades of Palestinian suffering. Adding insult to injury, the lobby again prevailed by persuading Congress to proclaim this “unbreakable bond.”

Turning Fiction to Fact
Tel Aviv’s 1967 land grab also enabled the “Israelites”—with support from their Christian Zionist allies—to occupy territory that Jewish Zionists consider theirs—because they are Jewish.

Thus the strategic necessity to oppose anyone who challenges either Israel’s retention of occupied land or its seizure of more territory for a more expansive Land of Israel. Or, as Jewish fundamentalists argue, the “redemption” of land that is rightly theirs as The Chosen of God because the land they occupy was given to them—by a god of their own choosing.

Thus also the need to maintain an aggressive strategy that seeks to discredit, isolate, ostracize or marginalize anyone critical of Tel Aviv’s expansionist policies – even when those policies undermine the prospects for peace essential to protect U.S. interests in the region. Thus the perilous timing of this Congressional pledge of allegiance to an “unbreakable bond.”

Israel’s treatment of its Muslim neighbors has long been appalling. Yet it is clear to all but the willfully blind that Israeli behavior is enabled by its “special relationship” with the U.S. This latest pledge makes it appear that Israeli conduct is condoned and even welcomed by Americans—with precisely the effect on U.S. troops that the Israel lobby could anticipate. The perilous impact of this pledge on U.S. national security makes the lobby’s conduct reprehensible.

Americans who want to restore our national security must hold accountable under the law those pro-Israelis who conspired to displace the facts essential to informed choice with the false beliefs that took us to war in Iraq. We also must ensure that never again are foreign interests allowed to exert such control over what little remains of “our” representative government.

The Israel lobby should be forced to register as foreign agents subject to all the restrictions that implies, including a dramatic reduction in the funding it provides to Congress.

In practical effect, those Senators and Representatives who recently pledged their loyalty to Israel gave aid and comfort to an enemy within. Those who led this latest dual loyalty effort are adhering to an enemy and should rightly be indicted for treason while this nation is at war.
That crime, for good reason, was made a capital offense by those who founded this nation to protect our freedom as Americans from those who manipulate beliefs to influence behavior.

This behavior—traceable to a common source—has long undermined our national interest and endangered our military. Those elected to the Congress face a stark choice: either defend this nation and support our troops or resign.

Those who do not resign risk a charge of treason when a long-deceived American public grasps that this pledge of allegiance was made while our military remains at risk based on intelligence fabricated by those to whom Congress just pledged an unbreakable bond.

An informed public will see the signatories of this pledge as prime suspects when federal law enforcement turns to identifying and indicting those complicit in enabling this ongoing treason.

Any American not outraged is not yet fully informed. Members of the military, both active duty and retired, should let an ill-informed public know what is being done in their name.

Bailing Out Politicians Now?

Even lifelong Democratic pol Steny Hoyer, majority leader of the U.S. House, is balking at Barack Obama's latest bailout proposal.

"I think there is spending fatigue," said Steny. "It's tough in both houses to get votes."

Hoyer was referring to Obama's weekend letter to Capitol Hill calling for a $50 billion bailout of state and city governments, to spare our elected politicians the pain of balancing their budgets with their own tax revenues.

Obama calls it an "emergency" measure to prevent "massive layoffs of teachers, police and firefighters." Yet, none of the 20 million state, county or municipal workers can lose their job unless an elected legislature and a chief executive agree that they should go.

Obama is calling for a taxpayer rescue of the political class to which he belongs, to spare it the painful duty tens of thousands of business executives have had to perform. Private employees – 25 million of whom are out of work, underemployed or have given up looking for jobs – may be expendable, but government workers are not.

As America is running a second consecutive deficit of $1.4 trillion, however, the U.S. government has no tax revenue to send to the cities and states. We would have to borrow the $50 billion from China, Japan and the Persian Gulf nations.

Obama is thus asking Congress to deepen America's fiscal crisis and put the next generation on the hook for another $50 billion so today's mayors and governors can get an exemption from their political duty.

Where is the justice here?

Government workers enjoy far greater job security than private-sector workers. At the state and local level, their average pay and benefits, about $40 an hour, far exceed the $27 per hour in the private sector. The federal worker has it even better, receiving $30,000 a year more in pay and benefits than the average worker in the private sector.

Obama's proposal is thus about taking care of his own and the Democratic Party's political base.

Consider. The American Federation of State, County and Municipal Employees, the American Federation of Teachers, the Transport Workers Union of America and other government unions in the AFL-CIO are all powerhouses of the Democratic Party.

Obama is proposing a $50 billion payoff for his own voters.

Democrats are the Party of Government. The more government programs and agencies there are, the more government bureaucrats and beneficiaries there are. As government grows – it now consumes close to 40 percent of the entire economy – the larger and more solid the base of the party becomes.

In Washington, D.C., the largest employers, far and away, are the U.S. and D.C. governments. They dominate the city, which is why city elections are so one-sided. The district has the only three electoral votes never to have gone for a GOP presidential nominee.

Richard Nixon in 1972 and Ronald Reagan in 1984, in their 49-state landslides, did not carry 20 percent of the district's popular vote. John McCain got 6.5 percent.

As Democrats are the party of government, Washington, D.C., is the capital of the Democratic Party as well as the nation. When the rest of America suffers a depression and recession, Washington knows prosperity. An economic crisis for the country means job opportunities here.

But there is a more critical reason Congress should reject Obama's "Save-Government-First!" policy.

The fiscal crises gripping Europe and America, which could portend a crisis of Western democracy, was caused by the unbridled growth of government. And it cannot be cured without a rollback of government programs and a downsizing of government workforces on both sides of the Atlantic.

As Greece is staring at unpayable debt because of government's conferring of jobs, benefits, salaries, pensions and health care the tax base could not sustain, California and New York are in the same boat and headed for the same reef.

Once the richest and most populous of states, both now face a steady exodus of business and taxpayers. But, of the people coming in to enjoy the cornucopia of benefits these states provide, many lack the skills, education or earning power of those departing.

And why should states like Virginia, that said no to many benefits, have to bail out the spenders in Sacramento and Albany who could not say no?

For the U.S. government to bail these states out again, as Obama did with his $800 billion stimulus, would only be to postpone the inevitable day of reckoning, to deepen the federal fiscal crisis and to raise the odds further that America herself will one day have to default.

In the recession of 1981, Ronald Reagan, with his across-the board tax cuts of 25 percent, bet the ranch on the private sector – and won his gamble.

Obama, with his $800 billion stimulus, bet it all on the public sector. It appears not to have worked. Now Obama wants to double-down.

Congress should give him no more chips.