Wednesday, September 17, 2008

Letter to Congressman and Senators

I have just read that the government is going to bail out AIG. At this point there may be no alternative if our financial system is going to survive. But you have presided over a massive transfer of wealth from the middle class to the super-wealthy upper class. Under the Bush administration taxes were reduced on the upper classes to the lowest rates in generations, beginning the transfer of wealth. What thanks did we get? The rich virtually destroyed the financial system. But to (hopefully) avoid the total destruction of the financial system, the government has undertaken a further massive transfer of wealth to the rich to bail out their investments. As they say, you have privatized the gains and socialized the losses. You have negated “moral hazard.”

The United States is significantly weaker than it was before the financial crisis. By failing to control the greed on Wall Street, you have undermined our national security, while poor rednecks are fighting two wars far from our shores. The government has betrayed our soldiers. Because of low taxes, particularly on dividends and other investments, the rich didn’t even contribute their fair share to fighting the wars. This bailout is now being done with money borrowed from China, the Middle East, and Europe, most of which will have to be repaid by our children and grandchildren, although I suspect that at some point the government will let inflation run wild so that we can repay today’s huge debts with tomorrow’s worthless dollars.

Congress’s further contribution has been to run an expansionary fiscal policy of low taxes and deficit spending during years when the economy was not so bad. The Bush administration inherited a budget in surplus. Now, with the economy in shambles, it will probably be difficult to raise taxes for years, making the obscenely wealthy even more obscenely wealthy and virtually destroying the middle class. The entire burden of dealing with the financial debacle has fallen on monetary policy managed by the Fed and Treasury, because Congress’s corruption and incompetence have destroyed the usefulness of fiscal policy at this point.

I am outraged. You have failed America! You should hang your head in shame!

Thursday, September 11, 2008

Wall Street Hates America

This Reuters article describes how Wall Street helps foreign investors avoid paying taxes on money made in the US. Clearly they don't care about 9/11, and the poor GIs fighting in Afghanistan and Iraq because of it. No need for them to fund the GIs. To them those dead people in the World Trade Center are just long dead and buried; let the good times roll! Show me the money! Greed is good!

Wednesday, September 10, 2008

What Did McCain Do In The War?

I've about had it with McCain's incivility. The latest is attacking Obama for using the phrase, "Lipstick on a pig," referring to the McCain campaign's attempt to hijack the theme "Change." McCain tried to imply that Obama was calling Palin a pig, when Obama wasn't even talking about Palin. CNN found an example of McCain's using the "lipstick on a pig" phrase referring to Hillary Clinton's campaign.

OK, so McCain what did you do in the war? How many missions did McCain fly over Vietnam? According to this perhaps biased website, he was shot down in 1967 on his 23rd mission. He then spent 5 1/2 years as a POW. No doubt his years as a POW were awful, but his battle in prison was basically a personal battle; he did not do anything to help the US win the war against North Vietnam. The referenced column by David Hackworth, written in 2000, probably during the campaign when I supported McCain, also says that the many medals received by McCain upon his return from being a POW were basically boilerplate citations, not awards for individual acts of heroism.

So, what did McCain do for America during those 5 1/2 years? Not much. He spent much of it in bed due to his injuries, or in solitary confinement after he recovered enough to get out of bed. Those are extraordinary personal triumphs, but they don't win wars.

So, enough McCain! Shut up about being a heroic POW! Shot up about lipstick!

Speaking of POW. Basically, McCain used his celebrity as a returning POW to win his way into the House and Senate. His Navy career essentially ended when he was shot down as a lieutenant commander, far below his father's and grandfather's rank as four star admirals. He got some subsequent promotions when he was released, but like his medals, they were proforma promotions for any POW. His Navy career was respectable, but not a great success, especially for someone who graduated from Annapolis. However, the fame he acquired when he returned advanced his career outside the Navy.

It no doubt helped him woo Cindy Hensley, the Paris Hilton of her day. She was a rich heiress with a hot body. McCain dumped his old wife, who waited years for him while he was in prison, to marry Cindy and her money. His old wife never speaks; I think it's because he paid her off with some of Cindy's money. He has taken care of his children with his first wife, most recently illustrated by the fact that his son Andrew was a director of a bank that recently failed, and is also a big shot in the Hensley beer business.

Then with Cindy's money and his POW celebrity status, McCain won a House seat in Congress from Arizona, later upgraded to a Senate seat.

In Congress, McCain has been a maverick, which he can afford to be because Cindy has made him extremely wealthy. He doesn't have to worry about kowtowing to the big money lobbyists to get re-election money, which is good. But what about the big deal he makes about earmarks. Sure they are bad and McCain doesn't use them, partly because he has Cindy's money for re-election and doesn't need the dirty money that other politicians get for earmarks, e.g., Ted Stevens. But earmarks are basically an inside the beltway Congressional issue. Why hasn't he done something about them while he has been a Senator. He says he will veto any bill with earmarks, but we know from experience that the earmarks will be inserted in a bill containing appropriations for the troops in combat, or some other essential function. Will McCain be willing to veto that? He should be talking about some serious issues, like the wars in Iraq and Afghanistan, health care, the budget deficit and the national debt, the stability of our financial system, etc. The Republicans have poor records on all of these issues, so McCain avoids the issues and talks instead about personalities, in particular personally attacking his opponents. It works for the election, but it's not good for America and illustrates that McCain doesn't really care about America, despite all his hypocritical campaign slogans like "Country First." McCain is not putting his country first.

Tuesday, September 09, 2008

McCain Bank Fails

I think it's odd that there hasn't been more talk about the fact that a bank connected to John McCain failed last Friday. Until shortly before its failure John McCain's son Andrew had been a director of the Silver State Bank. Only the Financial Times and the WSJ had brief articles about it. The WSJ implied that the FDIC may have been delayed in closing the bank by Nevada regulartory authorities, giving Andrew McCain time to quit as a director before it was closed.