Showing posts with label reform. Show all posts
Showing posts with label reform. Show all posts

Wednesday, May 12, 2010

YOU CUT

Congressional Republicans, headed by Minority Whip Eric Cantor have started a new website called "You Cut" that allows common Americans to vote for what spending cuts you want to see Congress adopt. 

This is an interesting idea, if it takes off.  They are offering up five different spending programs for the chopping block each week.  Whatever program earns the most votes from the public will be offered up for a vote in Congress the next week.  No doubt they will get a lot of flack and ridicule from the left over this one, but I personally think it's great for a few reasons.

First of all, it's fascinating to see all of the ways that Congress is wasting our money (and how much is being wasted).  You hear rumors about some of the crazy or unnecessary things our money is being spent on, but to see it in black and white on a Congressional website, well, it really puts it into perspective.  If you have high blood pressure or ulcers, you might want to medicate yourself before you check it out each week!

Second, in a political climate where it often feels like the train is out of control and heading off the tracks, this offers a way to give Congress your two cents on a very important issue - spending.  And not just spending in general, as we have been attempting to do with the Tea Parties - we're talking specific, targeted spending programs.  President Obama created the deficit reduction committee, but it won't be coming out with anything constructive until December, and doubtless there will be more in the way of taxation instead of spending cuts in their recommendations.  Increased taxation will only prolong our suffering - especially at the levels they will need to tax in order to make a dent in the deficit.  The only way out of this hole is through spending cuts.  Politicians hate spending cuts because someone always loses out and voters become alienated.  Perhaps if the cuts are brought to them by popular demand, they will grow some spines and do what's necessary to save this country from financial ruin.  Don't hold your breath, though.  These are politicians we're talking about, after all.

Finally, there are major political ramifications to this.  As I mentioned before, the left will attempt to ridicule the Republicans on this - after all, when they have no other defense, they always turn to derision.  The odds of the democrats voting down these proposed cuts are very high, but they need to really think before they do so.  Not only will they be voting down Republican introduced spending cuts at a time when they are trying to paint themselves as deficit hawks, but they will be voting down cuts that were presented to Congress by popular fiat.  They are used to thumbing their noses at We the Peons in general, but this will be a direct dismissal of what the American people want.  The big question is, will their unprecedented tone deafness go that far?

In order to submit your vote, you must give them an email address.  That's it.  No other personal information required.  You can vote more than once (I voted first for the Welfare Non-Reform Program and then the Subsidized Union Activities), and you can vote online or via text.  So check out "You Cut" on Eric Cantor's website.  Let me know what you think, and, as they say in Chicago, vote early and vote often!

Cross Posted at The Ripley Report

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Friday, April 23, 2010

THE GOVERNMENT MOTORS SHELL GAME

The Obama Administration and GM announced the full repayment of bailout funds, with GM crowing about how they paid off the bailout five years early.  There are also tv commercials with the CEO proudly talking about the repayment, emphasizing it was paid with their own profits. 

Interestly enough, there are reports that the 'profits' that were used were actually from the TARP escrow account.  They used TARP money to pay back TARP money (plus interest - does that even count?).  And then bragged about it:


The bottom line seems to be that the TARP loans were “repaid” with other TARP funds in a Treasury escrow account. The TARP loans were not repaid from money GM is earning selling cars, as GM and the Administration have claimed in their speeches, press releases and television commercials. When these criticisms were put to GM’s Vice Chairman Stephen Girsky in a television interview yesterday, he admitted that the criticisms were valid:


Question: Are you just paying the government back with government money?

Mr. Girsky: Well listen, that is in effect true, but a year ago nobody thought we’d be able to pay this back.

Yes, Mr. Girsky, nobody thought you'd be able to pay it back, and YOU STILL HAVEN'T.

This is sheer insanity.  More importantly, it is a stunning example of the smoke and mirror techniques this administration is relying on to dupe the American people. 

When do you think they will pull the ads?  I'd say pretty soon...

If this little scheme is successful, GM and the administration will look like they closed out the bailout issue, and thus can distance themselves from the stigma.  GM would have the added benefit of presenting a facade of success.  After the poll that came out this week showing that Americans prefer American cars, this would make it look like GM is a force in the industry again.  They are alluding that the payoff money came from booming sales - a complete fallacy.

The best metaphor I've heard is that this is like paying off your visa bill with your mastercard and bragging about your financial condition. 

But wait, there's more.  According to Sen. Charles Grassley (R-IA), any remaining funds in the escrow account would be paid to GM upon 'repayment' of the bailout funds.  Using the same metaphor as before, that's like Mastercard now forgiving the balance and, additionally, loading up the card with a few billion in funds as a thank you gift because you are just so awesome. 

In a classic case of "Who left the irony on", the administration is going after Goldman Sachs for shady bookkeeping.  Whose case, by the way, might be similar to GM's.  Much like the smoke and mirrors of the GM 'repayment", the financial reform bill is smoke and mirrors for Government Sachs.   It is also cover for the adminnistration, to give the appearance of cracking down on the evil fat cats of the financial sector while in reality giving them practically unlimited bailout capabilities.  Goldman Sachs is willing to take the heat because in the end they will have a multi-billion dollar slush fund to draw from.

This administration is nothing but double dealing and deception. Call it what you will - shell game, bait and switch, or business as usual - GM is just another example of it.

Remember in November.

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