Wednesday, February 24, 2010

A few thoughts on tomorrow's Healthcare Summit

Tomorrow is Obama's big healthcare summit. Many Republicans rightfully believe that this is some sort of political set up. I agree. Obama's strategists have convinced him that the GOP doesn't have any ideas so they concocted this forum in the hopes of exposing their lack of real ideas to the American people.

My view is that the GOP needs to come to the summit ready to aggressively push a reasonable and rational plan for fixing what ails our healthcare system.

A lot of the problems with the healthcare system originate in the state governments. The GOP likes to mention our litigious tort system. This is clearly a state-driven problem. The states have caused other problems as well, for example:

1.) Most states have legislated minimum types of coverage for health plans. Like everything else the government gets its sticky fingers into, what winds up as part of the "minimum coverage" is largely decided by special interests. So, if I don't want to pay for acupuncture or massage therapy, tough luck -- these must be included in the plan by law, which makes the plan more expensive.

2.) The issue with not being able to offer insurance across state lines is also largely the fault of the states that restrict the companies that get to offer health insurance in their states. Of course political payoffs, like campaign contributions have nothing whatsoever to do with who gets to offer insurance and who doesn't.

3.) Finally, most states have legislated out all creativity and innovation from the insurance industry. For example, a couple of months ago a clinic in New York started offering unlimited patient visits for a flat fee of $75 a month. Everyone thought this was a wonderful idea, except the brain dead state government who said it was illegal to do this because that would make the clinic an insurance company.

This is actually a larger problem than just healthcare. All heavily government regulated industries are laboring under foolish laws that makes them uncompetitive in an increasingly competitive world.

The country needs legislation, or maybe even a constitutional amendment that forbids federal, state, and local governments from granting monopolies to businesses or doing anything else that restricts businesses from entering markets. (Professional licensing, etc. would still be okay as long as it was applied uniformly to everyone.)

If we unshackle the creative and competitive nature of the American people, the big problems that we have today won't be so big tomorrow.

We Can't Balance the Budget without cutting Overseas Military Expenditures

The U.S. government is facing annual trillion dollar plus budget deficits as far as the eye can see. Economists warn that in 10 short years interest payments on the debt will consume a whopping 80% of all federal tax revenue. This is not sustainable. Long before we reach that point, the U.S. government will have to devalue the dollar and/or default on the debt, making us all poorer in the process.

There are plenty of ways to squeeze money out of domestic programs. We don't need 29 federal welfare programs. We don't need the departments of Education, Agriculture, Labor, or Commerce. Does anyone know what the Commerce Department does anyway??? The poorly managed Post Office loses $5 billion a quarter. It should be privatized. We need to take a hard look at all domestic spending.

However, one fact is becoming increasingly clear -- it is not possible to balance the federal budget without reducing the size of our overseas military expenditures.

Our current global defense posture is a relic of the Cold War. The Cold War ended more than 20 years ago when the Soviet Union collapsed in 1989. Maintaining Cold War era defense programs and commitments detracts us from meeting the actual threats that we face today. It is also heavily contributing to our enormous annual budget deficits.

Unfortunately, reform will be very difficult. Here's why: the GOP's electoral coalition was largely built around defending us from the communists. So, the GOP is going to be very hesitant to make any changes that could jeopardize that coalition.

After the Soviet Union fell in 1989, a few people on the right like Pat Buchanan started making noises about bringing the troops home from Europe and Japan. This scared the heck out of the GOP establishment, especially the neo-conservatives. So, they started beating the drums against so-called "Red" China (which in many ways is actually more capitalistic than the U.S. is today)

The sad fact is that 9/11 saved the neo-conservatives and the Cold War coalition because they could stand up and say: "see, the world is still a dangerous place and you need us to protect you".

Fortunately, people are starting to wake up to the fact that al Queda is not a country that we can invade and subdue, like we did to Germany and Japan during World War II. Instead, al Queda is a roaming band of bad guys who can easily pack up their things and move elsewhere. We invade Afghanistan so they move to Pakistan. We invade Pakistan and then they go to Yemen. If we invaded Yemen, they would high tail it to Somalia. On and on...

The so-called "war on terror" is a prescription for endless war, growing government power at home, and a mounting pile of debt that will quickly bankrupt the country.

Think about this real hard: Does it make sense for us to borrow money from the Europeans to protect the Europeans? Does it make sense for us to borrow money from the Saudis to protect the Saudis?? Does it make sense for us to borrow money from the Chinese to protect Asia from the Chinese??? This is exactly what we are doing. It's insane.

It's time to bring the troops home from Europe and Japan. The European Union collectively has a higher GDP than does the U.S. Japan is the second largest national economy in the world behind the U.S. (China will likely pass Japan this year.) These are rich countries who are more than capable of defending themselves. So why are we borrowing money to subsidize their defense???

If the Saudis want us to protect them and their oil fields, let's have a national debate on whether or not we should. If we do, then the Saudis can pay us with free oil to keep them safe.

It's also time to find a better way to protect ourselves from the terrorists than costly foreign wars without end. A good place to start would be to reform the failed Border Patrol and the TSA to reduce the chances of another attack at home.

The rapidly mounting debt should be a huge wake up call for all Americans. Obama's measly little spending freeze on discretionary domestic programs won't do a thing to solve the problem. The GOP doesn't even have a plan. If and when they come up with one, it likely will not contain any serious assessment of our costly overseas military commitments. That's a big problem for our future.

Tuesday, February 23, 2010

Germany wants U.S. to remove its Nuclear Weapons

There is a report out today that Germany wants the United States to remove its nuclear weapons from German soil, with officials describing them as a "relic of the Cold War". Conservative German Chancellor Angela Merkel issued a written policy statement to her party starting: "We will advocate within (NATO) Alliance and with our American allies the removal of the remaining nuclear weapons from Germany".

This is exactly right. Th Soviet Union died in 1989. There is no more credible state-sponsored international communist threat. Russia and the Germans are good friends.

Maintaining our Cold War defense posture detracts us, in terms of both focus and money, from meeting the actual threats that we face today.

So, why in the heck do we continue to spend our tax money supporting something that is not wanted and not needed??? I'll tell you why -- because we are living in a hidebound country, controlled by special interests (including, but not limited to defense contractors), who are completely resistant to any and all change.

Put modernizing our defense strategy on a long list of changes that need to be made to our illustrious government in the District of Columbia.

Sunday, February 21, 2010

Hatch worried that the Tea Party will tear GOP apart

Orin Hatch has been bellyaching that the Tea Party threatens the GOP establishment. He joins a growing chorus of GOP regulars who are becoming very worried about the consequences of Tea Party activism. GREAT!!! They should be worried. While there are a small handful of good people in the GOP, most of the SOBs in the party need to get booted from office along with the Democrats.

I cast my first vote in 1980. I voted for Reagan. For 20 years, I listened to GOP excuses. Reagan couldn't cut spending in the 1980s because he had a Democrat congress. Gingrich and the GOP Congress couldn't cut spending in the 1990s because they were laboring under a Democrat President. For 20 years I said: I want to see the GOP run it all so that they can make the changes they talk about.

Well, now we've seen the GOP run it all under Bush and it wasn't a pretty site.

They created the first new entitlement program since LBJ. They initiated the largest federal intrusion into the classroom in history. They created the largest pork barrel programs the world has ever seen. According to the Heritage Foundation, Bush oversaw Hurricane Katrina "victims" spending OUR TAX MONEY on things like Caribbean vacations, Dom Perignon champagne, Girls Gone Wild videos, and at least one SEX CHANGE OPERATION. They embarked on a costly, demented, and belligerent foreign policy that has left America weaker in the world.

As a result, they turned a balanced budget into a massive annual deficit. They doubled the national debt and had to borrow a TRILLION dollars from the Chinese to do so. They collapsed the economy. Then they gave Wall Street Banksters $700 BILLION dollars of OUR TAX MONEY, which was promptly used to lavish bonuses on FAILED executives.

Of course, one could point out that Obama is even worse, but to do so would be missing the entire point, which is: Both parties are sprinting towards hell. I don't want to go to hell. I want someone to turn around and go the other way. The GOP has shown that they won't. That's the problem.

Monday, February 15, 2010

Mounting debt points to dire consequences ahead

We learned last week that the Social Security system is finally paying out more each year than it is taking in. As a result of Carter raising Social Security taxes in the 70s, the Social Security system has been taking in more money than it was paying out over the last 30 years. Of course, the money wasn't being saved for a rainy day. Instead, the kleptomaniac politicians pilfered it to pay off special interests, including big agribusinesses, Wall Street Banksters, and other large corporations who don't want to compete in the market; leftist "community organizers" like Acorn; government union bosses; corrupt university scientists studying "climate change"; welfare queens; and an endless parade of other leeches. The politicians' theft of the Social Security surpluses masked the true magnitude of annual budget deficits for more than 30 years. Now those surpluses are gone.

Government economists predict that even when (if?) we come out of this recession, the growing demands of the baby boomers on Social Security and Medicare will force the debt to keep piling up.

Honest people have been warning about entitlement spending for more than 30 years. For a long time, nothing was done to reform anything because every time someone tried to tell the truth the left would demagogue the issue, accusing the reformers of being heartless sadists who wanted to throw grandma into the snow without her shawl.

To make matters worse, the last two knuckleheads in the Oval Office have made the situation even worse. George Bush created the first new entitlement since LBJ (a costly prescription drug program for the elderly). Not to be outdone, Obama created a $1 trillion "stimulus" bill that failed to stimulate anything except the salivary glads of power hungry politicians. He also proposed (and hopefully has failed) to expand government healthcare entitlements from 50% of healthcare spending today to 100%.

Given the endless orgy of spending, government economists predict that interest on the debt will gobble up a whopping 80% of all federal revenues by 2020. EIGHTY PERCENT. There won't be any money left to do anything else.

We're not going to be able to just switch out the Congress and make a few tweaks to the system like we did in 94. It's too late for that. Given that the politicians are too corrupt and cowardly to make real changes, we are looking a a grim future ahead.

Mark my words, one or more of these three things WILL happen long before 2020:

A.) The government will undertake a massive tax increase (probably in the form of a Value Added Tax) that will cripple the economy even further and decimate middle class living standards.

B.) The government will create a hyperinflation to pay off the debt with worthless dollars, and wipe out what remains of middle class savings and investment.

C.) The government will default on its debt and collapse the global economy.

All empires come to an end. Thanks to corrupt politicians, lobbyists, and Wall Street bankstes,the post WWII American empire may be next. That's not necessarily a bad thing. It all depends on what comes next.

One path points us in the direction of freedom. It requires that we stand up to the federal government and reassert our rights with state nullification of federal laws (which is already happening in a few states with regards to gun control), a constitutional amendment that strictly limits federal power (including closing the "interstate commerce clause" loop hole, which has been used by the politicians to get their grubby little fingers into every aspect of our lives), repeal of the 16th and 17th amendments (which are the root cause of our problems), and potentially secession, if need be.

The other path -- of more government spending and debt -- could very easily end up with a strong man in charge of the country. Remember, the hyperinflation in Germany directly led to the ascension of Der Führer. That's the last thing we need.

We're on an uncharted course, at least for America. But we can learn from history and the mistakes that other countries have made. Hell, we can learn from the mistakes that other countries are making TODAY, namely the PIGS -- Portugal, Ireland, Greece, and Spain. Frankly, the U.S. situation is about as dire as theirs in terms of debt to GDP ratio. The only difference is that the U.S. is such a large and important country that it will take longer before our day of reckoning arrives. Make no mistake, it will arrive, and when it does it will be even worse than theirs because there will be no one left to bail us out.

It's long past time to learn from history and get our fiscal house in order. The magic question is whether or not we will learn.

Friday, February 12, 2010

Short, open letter to Glenn Beck

Glen,

A few minutes ago you told a caller not to worry about people going back to sleep after the next election. I disagree.

In 92, the country was every bit as angry as they are today. The result? We gave Ross Perot 19% of the popular vote -- the second highest total of any third party candidate in the 20th century (Teddy Roosevelt won 27% of the vote as a Progressive candidate in 1912. We did this even after we knew he was crazy (remember the whole "Bush is going to sabotage my daughter's wedding" thing???). If Perot had the type of voter concentration that Wallace did in 68, he could have swept the west the sent the election to the Congress.

Fortunately, people stayed angry for two more years and we swept the GOP into control of the Congress.

The GOP congress did a great job in the 90s. But then most people went right back to sleep. They stayed asleep when George Bush and his GOP congress escalated spending faster than any President since LBJ, created the first new entitlement program since LBJ, and initiated the largest federal intrusion into the classroom in history.

It took one of the worst economic collapses in our lifetimes to wake people up again.

My view is that we are in deep trouble for a long time. I am afraid that it is too late to simply elect some new people who can tweak the system and make it all better. We may have to entirely reboot the system from the bottom with a new a constitutional convention that puts the politicians into there place. Regardless of what happens this year and in 2012, we are in for a long, scary ride.

Thursday, January 21, 2010

Why should we trust them again?

House minority leader John Boeher was on Michael Medved's show today. In response to a caller's question, Boeher said that the the GOP did indeed have a health care proposal. He gave the URL where it was posted.

REALLY??? I'll bet that most people have no idea that the GOP has a health care plan. Of course Boehner didn't articulate AT ALL what was actually in the plan.

Reagan and Gingrich understood something that Boehner doesn't -- being shy and keeping things quiet is NOT how one wins in the marketplace of ideas.

The sad fact is that the current GOP members in Congress lack the kind of great leadership and communication skills that they had in the 1990s under Newt Gingrich, Dick Armey, and Bill Archer. Not only did those guys accomplish a lot (welfare reform, capital gains tax cut, balanced budget, etc), they also set the stage for what would happen when the GOP took control of the Presidency. I remember the big debates between Armey and Archer on how they would scrap the current tax code in favor of either a flat rate income tax or a national sales tax. Even "moderates" like Pete Domenici (R) and Sam Nunn (D) came up with their own version of radical tax reform (a “consumption-oriented” income tax).

ALL reform (let alone talk of even more radical reform) died in January 2001 when George Bush became President. Instead, George Bush and Karl Rove tried to emulate the Democrats by buying votes with the first new entitlement program since LBJ and the largest federal intrusion into the classroom in history. It didn't work and they got booted out of office. Boehner was part of the mess that Bush made.

The result was inevitable -- the Democrats now control the federal government and are doing everything possible to make it even larger.

I am so VERY happy that Scott Brown won in Massachusetts. It signals that virtually everyone except the most brain dead socialist is waking up to reality. However, this doesn't mean that we should automatically trust John Boehner and the Bush GOP sell-outs again. We need to take it candidate-by-candidate and really take a hard look at whether or not they going to return power to the people or continue to consolidate government in the hands of a few elitists.