May 29-30 – Wide Spread Pervasive Incompetence!
We are living in a time of pervasive incompetence on the part of our elected leadership in Washington, D.C. Many conservative activists believe that the Obama Administration and Democratic Party Congressional leaders are downright evil and anti-American. While I cannot deny these allegations, I think that Barack Obama, Nancy Pelosi, Harry Reid and their minions are guilty of something just as bad – maybe even worse. The fact is that the Democratic Party leaders of our United States of America are POORLY EDUCATED AND INCOMPETENT.
Everywhere one looks, the Democratic Party’s lack of understanding and incompetence regarding economics, international politics, and leadership is evident. All of these folks were too busy organizing "nuclear freeze" protests and Woodstock remembrances back in the 1980s to actually learn anything about economics, history, philosophy, or human nature.
Let’s look at the facts.
The Obama Administration has been absent at the helm when it comes to the major oil spill / leak in the Gulf of Mexico. After almost six weeks of oil gushing into the Gulf, the same people who criticized President George Bush for his slow pace in responding to Hurricane Katrina were barely able to muster a highly orchestrated "moment of concern" on the beach, and have certainly been useless in finding solutions to the gushing oil.
Our economy continues to struggle, with unemployment remaining incredibly high and financial markets starting to doubt the tepid recovery. Despite this, Democratic Party leaders in Washington are pushing a "financial reform" bill that is filled with special interest giveaways while failing to include needed reforms of the government sponsored and owned mortgage finance entities, Fannie Mae and Freddie Mac. These same "leaders" are pushing for new "Cap and Trade" legislation despite evidence from Spain and California that similar laws have created tremendous economic pain with no environmental gain. And even while working hard to cover up a case of felony White House influence peddling in the Joe Sestak affair, they continue to push for new tax, borrow and spend legislation that will increase the cost of doing business, slow innovation, and escalate health care costs – all damaging our economy.
Beyond all of these economic matters, the Obama Administration’s handling of the threats from North Korea and Iran can only be described as naïve and amateurish. Is it any wonder that our economy and our world feel much less secure 3.5 years after the Democratic Party took control of Congress and 1.5 years after it took control of the White House? Click here to listen to this weekend’s radio program.
On the Economy
Bob Fragasso – President and Founder of Fragasso Financial Advisors – returned to my radio program this past weekend with his take on the recent declines and volatility in the financial markets. Bob is a man of wisdom who believes that individuals will ultimately make good economic decisions when they are free to operate within a competent and free economic system. Unfortunately, liberals in Congress are trying to legislate exactly how the economy will operate while refusing to acknowledge or address the flawed government regulations that contributed to our recent economic downturn. The financial "reform" bill that Democrats are pushing through Congress restricts future investment opportunities with massive new government regulations. But it excludes real reform of Fannie Mae and Freddie Mac, the Government Sponsored and now owned Entities that contributed to the housing bubble by enabling tens of millions of Americans to obtain mortgages that they simply could not afford. Senator Judd Greg (R-NH) who sits on the Senate Banking Committee said "this bill is a disaster," and it "will make the derivatives market less sound, it will cause a huge contraction of credit-maybe up to three-quarters of a trillion dollars-and it will push massive amounts of derivative activity offshore and out of our control."
Democrats have introduced another tax, borrow, and spend "stimulus" bill, which (like Obama’s first failed stimulus bill) will do nothing to stimulate the economy. Instead, it will increase the deficit by another $134 billion, increase taxes by $40 billion, and increase entitlement spending by $174 billion, including over $60 billion of the Medicare "Doctors Fix" that was excluded from Obamacare to make the new health care "reform" legislation appear to be deficit neutral. Thankfully, this bill has received some push back from so-called moderate Democrats, but liberal Democrat Party leaders remain intent on forcing these arrogant, incompetent, and failed economic policies through Congress. And this determination is creating uncertainty in the minds of many investors, and I believe is contributing to the current market volatility.
Bob observed that through the difficult economic conditions and financial markets of the past two to three years, many investors have not maintained a consistent asset allocation which could be rebalanced as the markets changed. He reminds investors that to be successful over the long term, they must resist the emotional urge to effectively buy high and sell low. A good asset allocation and discipline are the twin keys to success in long term investing. If you need financial advice, feel free to contact Fragasso Financial.
On the Joe Sestak Affair
Let’s be clear. In spite of the "official statement" released Friday by the White House, Congressman Joe Sestak either lied to the American people when he said the White House offered him a job in return for getting out of the Democratic senatorial primary, or some person or persons in the Obama Administration committed a felony by making the offer. Obama arrogantly declared during his press conference last week that "nothing illegal happened." (Does this remind you of "I’m not a crook"?) But his Attorney General (Eric Holder) has so far refused to allow an independent investigation into this matter. This is simply not good enough. If Barack Obama were honest in claiming that he is leading "the most transparent administration in history," he would welcome an independent investigation that would vindicate the White House from any wrong doing. Unfortunately, it appears that Obama has chosen to shroud his Presidency with secrecy and cover ups instead. What are all the things that Obama is hiding? At this point in the Obama Administration, lie detectors alone indicate that President Obama and his team deserve an electoral defeat in 2012.
On Cap and Trade
According to a recent study completed by California’s state auditing agency, the state Cap and Trade bill enacted in 2007 is a complete failure. It has raised the prices of energy, food, and other goods while reducing industrial production, income levels, and the total number of jobs available in the state. And in spite of all this economic pain, atmospheric levels of CO2 were not affected.
In spite of this clear legislative failure either to reduce CO2 emissions or create a growing "green" economy, arrogant and incompetent liberal politicians in Washington D.C. continue to push similar legislation through Congress. And if passed into law, Cap and Trade would wreak even more havoc on our national economy. Meanwhile, Donner Ski Ranch in the Sierra Nevada Mountains of California received 6 inches of fresh snow last weekend and was open for business on Memorial Day. Last week, Spokane International Airport reported a new record low temperature of 32 degrees, and the National Weather Service reported record snow fall in Salt Lake City. And the persistent cold weather across the United States this spring is causing delays in crop harvests and elevated produce prices. Take notice of what melons and tomatoes cost in your local grocery store.
On Our Foreign Policy
Despite its ideologically driven irrationality on economic topics, the Obama Administration reserves its greatest levels of naïveté and incompetence for foreign policy. In the case of Iran, any educated person would realize and acknowledge that Iran has played by its own aggressive and self serving rules for the past 31 years, since the Islamic Dictatorship took power. Thirty one years ago, the new Iranian government violated hundreds of years of international diplomatic precedent and seized the American Embassy and took everyone in it hostage for over a year. Twenty eight years ago, the government of Iran killed 243 American Marines in Beirut. Throughout the past decade, the government of Iran has supplied (and continues to supply) countless IEDs to Iraq and Afghanistan. For decades and up to the current moment, the leaders of the Iranian government have repeatedly called for the "annihilation of Israel" and "death to America." Despite all of this and more, President Obama came to office believing that by meeting with Iranian President Mahmoud Ahmadinejad "without pre conditions," he could suddenly convince the Iranian government (the Islamic dictatorship in Iran) to give up its quest for nuclear weapons. Has it worked? Of course not. And similar appeasement strategies have not worked with North Korea either. We must stand up to these two countries, or risk the lives of many more soldiers and civilians in the future.
In spite of the incompetence that has seized Washington D.C.; I hope that you took time to honor our great country this Memorial Day Weekend by remembering our war dead, praying for their families, and honoring those who have protected our liberty by serving in our military. No matter how tough times are, we must have faith in our nation and our fellow Americans and remember and thank those who have fought and died to establish and protect our freedoms. The second annual Pennsylvania Hero Walk will be held between June 12th and June 26th 2010. 28 individuals (including 6 veterans injured in Iraq and Afghanistan) have committed to walking across the entire state of Pennsylvania in order to raise awareness and support for our wounded warriors. If you wish to learn more about this event or to get involved, please contact Al Pulice at 412-862-1672 or visit paherowalk.org.
Please work hard to take back our country one Congressional District and one state at a time this fall. The future of our economy, our culture and our security are far too important to trust to naïve, incompetent fools.
Despite concerns about the future, have faith in America and our people. I am completely confident that we will turn things around and make our future brighter than our past.
Glen Meakem is a successful technology entrepreneur, venture capitalist, and conservative talk radio show host, who offers information and insights on how individuals and our nation can be more successful. Glen’s unique perspective has been shaped by his experiences as founder, chairman and CEO of the B2B internet success Freemarkets Inc – which he founded in 1995, took public in 1999, and sold to Ariba in 2004. In 2005, Glen co-founded Meakem Becker Venture Capital, a firm that invests in early stage start up companies. Concerned about the liberal political agenda that has gripped the United States and his home state of Pennsylvania, Glen launched the Glen Meakem Program in 2008. Glen served as an officer in the United States Army Reserve and is a veteran of the First Gulf War. He also earned his undergraduate degree from Harvard and his MBA from Harvard Business School. For more information about Glen and the Glen Meakem Radio Program, or to read his blog, please visit http://glenmeakem.com.
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