Obama’s plan to stay in power? Another Bailout.

Obama’s plan to stay in power? Another Bailout.

June 15th, 2010

Obama using Government Money to maintain control?

Today, Patrick Buchanan came out with a scathing attack on Obama’s most recent bailout proposal.

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.

Buchanan sees right to the heart of the issue, which is not about saving jobs but about saving those who support Obama the most.

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.

Read the Entire Story

Yesterday, the Daily Record reported that Obama handed out more than 400 million dollars to federal employees in 2009, 80 million more than 2008.

What does this all mean? It means Obama is getting scared about the upcoming election in November. He knows that many people are angry, and he is fighting back. If he can make sure that the millions of government employees throughout the country, local and federal, are dependent on him, then they will vote for him. This means that we are going to have to fight even harder to claim victory in November. Even though Obama might be scared, he has a lot of tricks up his sleeves, including using government money to achieve political control. We must remain vigilant and make sure that this November, his party and his policies gets the beating it deserves.

Morning Bell: Prolonging Education’s Race to the Bottom

Morning Bell: Prolonging Education’s Race to the Bottom

Posted By Israel Ortega On June 11, 2010 @ 9:11 am In Education |

[1]

In perhaps President Obama’s most stealth campaign to date, the federal government has been slowly tightening its grip on the education sector to little fanfare. Rather than working through the democratic legislative process, this Administration has circumvented Congress to enact an ill-conceived education agenda that will weaken accountability, reduce transparency and minimize choice while only adding to the national deficit.

For close to four decades, the federal government has operated under the seemingly simple premise that increased spending on education will translate into academic achievement. This line of thinking has resulted in inflation-adjusted federal expenditures on education increasing 138 percent since 1985 [2]. Per-pupil expenditures have ballooned to over $11,000 per student [3], and are even higher in most urban areas including the District of Columbia where the government spends $14,500 on each child [4]. Billions upon billions of dollars have been poured into our public school system because the federal government, backed by powerful teachers unions, is convinced that it is best suited to administer our country’s education system. Unfortunately, this approach has been a miserable failure. [2]

The high school drop out rate continues to skyrocket and academic achievement continues to be stagnant despite decades of increased federal spending and involvement in education. Of course, the consequences for our failures threaten our future as we hopelessly watch other countries outpace us in math and the sciences.

Unfortunately, President Obama and Secretary of Education Arne Duncan remain impervious to the education crisis and are committed to strengthening the federal stranglehold over our country’s education system. Just months after taking office, President Obama signed into a law the gargantuan “stimulus bill” stuffed with wasteful spending adding to the federal government’s girth. The Department of Education received an unprecedented $100 billion in additional money through the stimulus [5]. But months after the bill’s passage, two things are clear: the stimulus bill is not growing our economy and more federal money towards education is not improving our schools.

Undaunted by the obvious, liberal lawmakers in the House are planning on making yet another push this week to include an additional $23 billion dollars for emergency education spending to prevent “catastrophic” public education layoffs [3]. But for decades, states have continued to bloat their staff rolls, particularly non-teaching staff positions. Since 1970 for instance, student enrollment in public elementary and secondary schools has increased just 7 percent, while public elementary and secondary staff hires have increased 83 percent. Another bailout from Washington could exacerbate states’ fiscal problems by creating disincentives for states to tackle out-of-control spending and make the difficult budgetary decisions necessary to produce long-term education reforms.

But unlike the federal takeover of the banking and health care industry, this time around Obama and his liberal allies are shrewdly avoiding another public fight by moving their education agenda forward without even going through Congress. The administration is supporting a move to implement national education standards, using the $4.35 billion Race to the Top grant program to secure those ends. National standards will give the federal government – not parents – more power over education. Now, instead of petitioning their local schools boards for curriculum changes, parents will have to trek to Washington to lobby D.C. bureaucrats for input in the content taught at their children’s school [6].

Progressives dream of making us more and more dependent on big government, and that has never looked so promising after Obama victories in widening government’s hold in health care, banking and now education. If this past year and a half is any indication of what’s to come, two things are clear: (a) we will see more and more of our freedoms diminish and (b) the girth of our federal government’s waist-line will surely grow.

Quick Hits:

Freddie Mac asks for fresh 10.6 billion dollar bailout

Freddie Mac asks for fresh 10.6 billion dollar bailout

AFP – Thursday, May 6
Troubled US government-backed mortgage firm Freddie Mac on Wednesday asked for an additional 10.6 billion dollars from the Treasury Department to cover losses.

WASHINGTON (AFP) – – Troubled US government-backed mortgage firm Freddie Mac on Wednesday asked for an additional 10.6 billion dollars from the Treasury Department to cover losses.

Announcing a 6.7 billion dollar loss in the first quarter, Freddie Mac said it would need the new funding by June 30 this year.

The Washington-area company has already received more than 50 billion dollars in taxpayers cash to cover losses from toxic assets.

It warned that further demands would be on the way: “Freddie Mac expects to request additional draws,” the firm said in a statement.

“The size and timing of such draws will be determined by a variety of factors that could adversely affect the company’s net worth.”

In 2008, the government pledged to ensure that Freddie Mac, and its larger sister organization Fannie Mae, kept a “positive net worth.”

The deal was designed to prop up the vital US housing market from collapsing totally and pushing the economy over the precipice.

But in a sign that the US housing sector is still in difficulty, Freddie said the percentage of its loans not paid on time or in full rose to 4.13 percent in the first three months of the year.

In the final three months of last year the rate stood at 3.98 percent.

The future of Fannie and Freddie has become the latest bone of contention between Democrats who argue they must remain government-backed to aid low-income housing and Republicans who advocate their privatization.

In March, Treasury Secretary Timothy Geithner swatted aside pressure for a swift reform of the mortgage giants as data pointed to a still struggling real estate market.

Geithner told Congress any restructuring of Fannie Mae and Freddie Mac, which received a 100-billion-dollar-plus government bailout at the height of the housing crisis, “must be done as part of a reform of the wider housing finance system.”

Geithner argued reforms would “take several months” to develop and should only be “enacted and executed at a time of greater market stability.”