Politics

I know you're not going to listen to me.

I'm going to say it anyway, because as a concerned citizen of The United States of America, I must.

You are making a grave, perhaps nation-ending mistake.

Attempting to "deem" the Health Care bill passed when it has not actually been voted on is not Constitutional.  Article 1, Section 7:

All bills for raising Revenue shall originate in the House of Representatives; but the Senate may propose or concur with Amendments as on other Bills.

Every Bill which shall have passed the House of Representatives and the Senate, shall, before it become a Law, be presented to the President of the United States; If he approve he shall sign it, but if not he shall return it, with his Objections to that House in which it shall have originated, who shall enter the Objections at large on their Journal, and proceed to reconsider it. If after such Reconsideration two thirds of that House shall agree to pass the Bill, it shall be sent, together with the Objections, to the other House, by which it shall likewise be reconsidered, and if approved by two thirds of that House, it shall become a Law. But in all such Cases the Votes of both Houses shall be determined by Yeas and Nays, and the Names of the Persons voting for and against the Bill shall be entered on the Journal of each House respectively. If any Bill shall not be returned by the President within ten Days (Sundays excepted) after it shall have been presented to him, the Same shall be a Law, in like Manner as if he had signed it, unless the Congress by their Adjournment prevent its Return, in which Case it shall not be a Law.

This is the black-letter law of the land. 

There are millions of Americans who are extraordinarily pissed off right now.  Some of them, like me, write scathing columns on The Internet or we rant on Talk Radio and Television (such as Judge Napolitano)

But some just smolder.  Some remember the other founding document of our Republic, The Declaration of Indpendence, which says, in part:

That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness.

That doesn't sound so good.  What has tempered these people is largely what always has in all nations, that is:

Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn that mankind are more disposed to suffer, while evils are sufferable than to right themselves by abolishing the forms to which they are accustomed.

Indeed.

Neither you or I know where the line is for that cross-section of the citizens in this land.  I cannot speak for them, for I am not inclined toward the sort of actions that they are, nor do I countenance them.  As such I'm not exactly on those folks' "A list".

In fact I fear the day they decide to express their disgust, for while in singular number those expressions are horrifying, as a group such actions harken to a time I hope we would never revisit in this nation.

But I do understand, and see, that they are seething in anger at what has befallen this once-great country.

They have watched as thirty years of corruption in Washington DC has turned our economy and government into a bad joke.

They have watched their jobs go overseas to a Communist Nation for the benefit of a handful of corporate oligarchs, while Washington chortles.

They have watched banksters do everything in their power to imprison them in debt, including bribing Congress to remove usury laws, "reform" bankruptcy so as to render a significant percentage of the population under effective indentured servitude (allegedly prohibited by the Constitution) while the very same banksters declare bankruptcy at the drop of a hat and stick lenders with losses, and while these very same banksters peddle fraudulent securities, cook their balance sheets and generally defraud everyone in the nation - then force the taxpayers, at gunpoint (quite literally, if you remember the fall of 2008 - you were in the room with Bernanke and Paulson when they threatened tanks in the streets) to bail them out.

Finally, they have watched Health Care turn into a monstrous mess, with cost increases of 10, 20 even 30% or more a year.  These costs are expanding at that rate because ambulance chasers like former Presidential Candidate John Edwards make millions while Congress has passed laws forcing Americans to eat the development expense for every advanced medical technology over the last 30 years.  Congress has refused to demand that medical practitioners bill everyone the same price for the same procedures and drugs.  Congress has passed laws exempting medical providers and insurers from anti-trust law, so those aggrieved cannot sue in private causes of action for these abuses.  And finally, Congress has forced all of us to eat the cost of care for illegal invaders who commit their first crime with their first step over our national boundary.  All of these abuses and more could be addressed, but none of them are in the bill you wish to advance, and that, Madame Speaker, is intentional.

But all of this, while it has been outrageous and even criminal, has been, for the most part, Constitutional.  It may be the stuff of a Banana Republic, and it may violate equal protection of the law (a founding principle and in fact a guaranteed right), but Congress has never cared about any of that in my 47 years on this planet.

Witness all the laws you, Madame Speaker and the rest of the Government (including this Health Care plan) do not have to obey while the rest of us do under pain of fine or even imprisonment.

What you propose to do now, however, is not Constitutional.

Rather than negotiate, advance and pass something like my four-point plan that would, along with dropping anti-trust protections and ending the practice of preventing reimportation of drugs and devices, attack the problem at the source, you instead are putting forward the Senate's 2200-page monstrosity.

You are doing so because this bill is not about Health Care at all.  It is about revenue, and you know it.  It is about the fact that The Federal Government is running into a wall at warp speed trying to furiously cover up all the fraud and scams in the financial system while at the same time spending over $1.5 trillion we do not have to replace collapsed consumer demand. 

You must raise revenues, and you know it - or this ship called "The USS Treasury" sinks beneath the waves, and the first sacrifices to go overboard will be all the Seniors on Medicare and Social Security - not by choice, but by force of fiscal insolvency.

In short, this is just another Washington scam. 

But this time you're going too far, and you're taking a horrific risk. 

You must not, Madame Speaker. 

You must instead face this nation and tell the truth.

We cannot fund the scams and frauds any more.  Those who committed them must go to prison, even if they're campaign contributors.

We cannot borrow 10% of our GDP and spend it forward, as the CBO projects we will try, in a futile and permanent attempt to replace consumer demand.

If we do not stop this idiocy we will soon be unable to fund Social Security, Medicare and Welfare in all its forms, leading to an immediate and critical breakdown of our society.

The mad reach for revenue, Madame Speaker, is why you're in such a hurry - and you know damn well I'm right.

If you succeed, we will get your tax bill now and the promised health care never. 

That's a fact.

There is a bright white line for every person in this country who has taken an oath to uphold our Constitution.  It is in different places for each of those individuals, but you had better believe it exists.

For some it will be crossed if you try to disarm Americans, as was attempted after Katrina. 

For some it will be crossed if you try to occupy their homes. 

And for some, it may be crossed if you attempt to "deem" this bill passed, when The House has not actually passed it.

I pray this evening I am wrong, and that for no material number of people - indeed, for no one person - that is where their personal line is.

But I am reasonably certain that this prayer will be offered in vain.

Therefore, the choice is yours, not mine, for all I can do in furtherance of my hopes (and abeyance of my fears) is pray. 

You, Madame Speaker, on the other hand, can act to quell this idiocy.

Or you may tempt fate, you may tempt the millions of people who have swore an oath to defend and uphold The Constitution and, having done so, went to war throughout our history.  Many of those people, along with millions more who never wore a uniform stand today in defense of that "quaint" old piece of parchment - but not in defense of you, nor any other person.

You may also provoke States to assert their long-dormant 10th Amendment rights for real, not in some quaint "one off" regarding intra-state weapons manufacturing.  That, Madame Speaker, harkens back to a time I'd rather not revisit as well.

You will almost certainly lose your Speaker's Gavel come November, as the mortal sin against the Constitution of deeming a bill passed without actually voting on it is so inimical to a republican form of government and displays such gross arrogance that you have forfeited your right to wield that gavel by mere contemplation of the act. 

I am quite certain that I stand with millions of other Americans who are willing to put forth whatever effort is necessary to see that occurs come November - at the ballot box - whether you proceed with your abhorrent plan or not. 

But what I pray for this evening, as I complete my day and offer homage to God before retiring, is that your office, and those of your fellow Democrats who are about to violate your sacred oaths willfully, intentionally, and with malice aforethought - is all you lose.

Ok Daley, nice bleat:

Mayor Daley warned today that the day of reckoning has arrived for a financial crisis that’s choking local taxpayers: underfunded city pensions.

Daley said the 32-member pension commission he created more than two years ago will soon recommend solutions to the crisis that won’t be pretty or politically popular.

What's the primary problem?  Try right here:

He cracked the door open to raising the retirement age from the current minimum of 50. He said he would consider raising employee contributions and implementing a two-tiered pension system that shifts newly-hired employees to the 401k plans favored by private industry.

Can I have my Social Security - full benefits - along with Medicare at 50?  That's only three years form now.  Sounds pretty good.

Why not?

Because the Federal Government would go broke in about a year if we tried this nationally.

So who thought it was a good idea to do this with City (and State) employees? 

Where the hell were you, Mr. Daley, back in the 1990s when I ran a business in your putrid, corruption-infested town?

I'll tell you where he was: he had the public sector unions under his desk taking turns giving him fellatio in return for endorsements and votes, that's where.

Now, having basically bankrupted the City, he, like a number of other mayors and governors is bleating about how horrible the situation is - a situation he was responsible for creating!

Oh, and instead of facing this years ago his "response" to the early warnings was to sell off the parking meter revenues via a "forward" (in effect) and then blow the money, thereby destroying that which was in fact a decent city asset.

This sort of stupidity is nothing new and now there's no ability to avoid a truly nasty set of consequences.

Of course deposing the Daley monarchy is a bit of a problem when you have a plurality of people who suckle on the teat. 

When the teat runs out of milk Daley might want to consider how the fine citizens that would otherwise guarantee his re-election might choose to refill the udder they're used to being able to suckle from.

I'm going to write today about a very somber subject.  It will be, as it usually is here in one form or another, about math.

First, some background.  If you believe that we have "escaped" from the mess that gripped this nation in 2008 and 2009, or that said mess "suddenly appeared" and "nobody saw it coming", stop reading now and have your Thorazine dosage checked.  It's way off.

Assuming you accept the truth - that this mess was 20 year or more in the making, that it involved creating credit (that is, debt) which the debtor could never pay, and that it still exists because our government policy has been to extend, pretend and allow lies that should be considered accounting fraud and result in prison sentences, then you're on the right page to understand the rest of this missive.  Again, if not, go check your Thorazine dosage.

Yes, I know all about the stock market rally from last March.  I know all about the claimed GDP "improvement."  But I also know that we got both by adding more than $2 trillion in debt to the United States - or roughly 14% of GDP - over the space of the last 18 months.  That's about 10% of GDP annualized, and incidentally, a 10% GDP contraction is the common economist's definition of an Economic Depression.

So let's cut the crap - we are in a Depression right now.  We are pretending we are not, just like you can pretend you didn't really lose your job so long as your credit card does not reach its limit.  We have been in that depression for about 18 months and there is no evidence that we will exit it, as we have yet to find a way to pull back the deficit spending without an instantaneous collapse in the economy.

Yet at some point we must and will stop.  We will either do so of our own volition, or we will do so when the cost of borrowing skyrockets, as others get tired of funding our profligacy.  If we attempt to "print" our way out of it the cost of petroleum products will shoot the moon and destroy our economy anyway.

You haven't seen the half of what happened though - not yet.  It appears that AIG - the company we have bailed out (thus far) to the tune of some $100 billion plus, in fact isn't done.  It appears they may have written credit protection on Greece.  If this allegation by the German equivalent to The New York Times is true Americans are going to be asked to pay billions of dollars - or more likely, hundreds of billions (since Greece is almost certainly not the only place - try Spain, Portugal, Ireland, etc) to bail out a bunch of FOREIGN NATIONS.

Do you both think Americans can and will pay that bill?  A bill that has been forced on us, and yet benefits not The United States economy, but foreigners? 

Wars - big wars - start over much less, my friends.

Oh, and let's not forget - some 30% of Greece's workers went out on strike to protest their "austerity measures."  That's right - one in three.

The Fed and our fabulous Treasury Secretary already gave tens of billions of our hard-earned money to foreign banks to prop them up via AIG.  That was just a down payment; now we all get to - quite literally - buy all their houses over in Europe.  They get to keep living in them.

If you do not believe it is going to get much worse than it is now, economically and otherwise, you once again need to go have that Thorazine dosage adjusted.

A recent Rasmussen poll disclosed that only 21% of the voters in this country believe that the government enjoys the consent of the governed.  Put another way, only 21% of the voters in this nation consent to what Washington is doing. 

More ominously, 61% say the government does NOT have consent.  The remainder (18%) are not sure.

May I remind you that in 1776 less than that 21% of the population (19%, actually) were loyal to Britain?

If you do not believe this nation is wound tighter than a clock spring, you need to have that Thorazine dosage checked again.

You are in denial. 

After denial comes anger, then bargaining, and finally acceptance.

Let's not do anger on a mass scale in this country, ok? 

Neither I or my daughter will appreciate it if it happens; shall we skip that and go right to "acceptance"? 

Let's assume your answer is "yes."

Now let's talk numbers.

There are approximately 150,000 federally-attached law enforcement personnel.  Another 750,000, roughly, state and local cops are employed by our various government arms.  Of those various officers well more than half sit behind a desk and haven't left one gram of shoe leather on a street or in a cruiser in the last year.  The majority of you fire your weapons for periodic qualification and they have never been warm or dirty besides.  You've never faced death, you've never had a weapon pointed at you in anger, and you've never drawn your service weapon in the line of duty.  Those are facts.

Now consider the "bad side" of America.  The Justice Department estimates there are at least one million gang members - active gang members - in America.  These people, mostly young males, have nearly all drawn or fired weapons in anger.  They are responsible for more than three quarters of all crime in this country, and some eight out of ten violent crimes.  Those gang members have families - younger males who are "coming up", "friends" (if you can call a murderous thug a friend) and others.  Between all of those "loosely attached" folks and the hard-core inner circle itself we probably have somewhere between 5 and 10 million people in this nation who, given the wrong sort of provocation, might decide that "Zombieland" wasn't just a movie.

Our politicians created most of these monsters so the "finest" would have something to do.  A nearly-100-year obsession with what consenting adults put in their bodies is largely responsible for this, and an intentional policy of allowing an effective invasion of illegal aliens over our southern border provides some the most-violent core of this group.  The illegal drug trade has fueled international wars, international gangs, and virtually all of the organized violent crime in this nation going back to Prohibition.  Essentially every automatic weapon in the hands of criminals (and there are plenty of them) comes into the US through this same intentionally-left-open border as do the gangbangers, lies of this (and previous) administrations notwithstanding.  Those of you in the Law Enforcement business may not want to accept these facts, but if you reflect on it you cannot escape reality: weapons, ammunition and other means of street thuggery all cost money, and without these drugs being illegal there would be no profit in it, and thus a huge part of the criminal gangland element would not exist.  You've cheered on the War on Drugs as it has meant more cops being hired and more, better, fancier toys for you to play with, along with $200,000+ pensions (in some areas.) You've been fools and even self-destructive assholes for having done so.  But that, today, is water over the dam - the bad guys are here, they're not leaving, and there's no evidence that the political class is going to suddenly legalize these substances tomorrow, cutting the source of funds for the thugs off at the knees - after all, you won't rise up and demand it happen.  So we must deal with reality on the ground as it is (and as you have cheered on the creation of), whether we like it or not.

As I'm sure you're aware all of America sees some of our "finest", not to mention our politicians, in various forms of misbehavior virtually on a daily basis.  A girl beaten on a train platform while uniformed rail security stands and watches.  A young man who appears to have been executed by a different rail security officer, even after he was subdued, face-down, without a weapon and easily able to be cuffed.  The infamous Rodney King incident.  The false accusations against the Duke Lacrosse team that threatened young men with many years behind bars for something that never happened.  Our current Treasury Secretary who cheated on his taxes, not to mention the chair of the House Ways and Means Committee who did as well (that's the committee that writes tax law, if you're not up on your American Government.)  And now, in the latest bit of ignobility we're expected to swallow, we have accusations that a school district has been taking pictures of kids in their bedrooms using state-issued laptops that said kids were required to accept in order to pass their high school classes.

Here's the problem: We the people increasingly don't trust you, the law enforcement community, and we definitely don't trust Washington.  It's not just beating a black man within an inch of his life, or shooting a prone, subdued suspect in the back. 

Oh that's bad enough, don't get me wrong, but it gets worse. 

Much worse.

See, our economy wasn't ruined by accident.  These crimes of economic activity were every bit as destructive, if not more so, than the bank robber, rapist or even murderer is.  These economic offenses have literally dispossessed millions of Americans of everything they once owned.  They have destroyed the hopes, dreams, and lifestyles of entire cities, sent tens of millions of jobs overseas into slave labor camps and stripped off the wealth of our nation through the issuance of securities that were worth nothing, just to add insult (and yet more profit for these banksters) to injury.  Take a drive through Detroit if you doubt me, if you dare, and are appropriately armed to defend yourself (you'll need the latter, especially if you're white.)

As I noted above the bad news is nowhere near being over.  We're denying as a nation, as corporations, as politicians and as people.  You've drank your coffee and eaten your donuts, but what you haven't done is taken the initiative and marched down onto Wall Street and K Street (in DC), along with the myriad bankers, mortgage brokers and yes, even borrowers who were lying and cheating at the same time.  You should have broke out the handcuffs by the crate-load and frog-marched these people into the dock en-masse over the last two decades, but you didn't.  You should do it today, but you won't.

I know, you don't make the laws and you just follow orders from above.

But you're who we see.  You're "The Badge" or "The Squad."  And what we, the people don't see is perp walks of those people who richly deserve it - who have in fact broken the law and destroyed our nation's economic vitality for their own personal profit.

Remember, ladies and gentlemen, no matter what branch of law enforcement you hail from, your primary oath was not to a person.  It is not to your commander, your captain or your squad. 

Your oath is to The Constitution.  You swore to defend that Constitution against all enemies, foreign and domestic.  You swore to God and countryman alike, and your oath does not have a "use by" date at which point it expires.

Now consider this: the unspoken "social contract" says that the good guys go about their business without harming other people, and the occasional miscreant commits some offense, gets arrested and put in the dock by you.  There they face their twelve, and in many cases subsequently do their time.

But what really inhibits the miscreant from his deed?  Is it that you will show up and take a report after the stereo is stolen, the car burgled or the bank robbed, and attempt post-hoc to have them face the music?

No.

It is the possibility that he will break into or attempt to rob a home or business that has an armed citizen in it who is prepared and willing to defend him or herself.  Armed not only with the ability to fight back but the weapon of familiarity of surrounding, said homeowner or shopkeeper might well splatter the brain of said felonious thug all over the far wall - in righteous and perfectly-legal defense of one's person (except in places like Chicago, of course.)  The truth of this is clear on its face - those places where citizens are "restricted" (illegally, I might add, under the clear language of our Constitution) from mounting their own defense to rape, robbery or murder the bad guys pretty much take turns "at will", as opposed to places like Kennesaw Georgia which mandate instead that every homeowner have a firearm and ammunition.

One last thing to consider, and I will leave you be, as I have others to address this fine day.

If it gets bad, and I believe both history and the math says it will, who's going to help you?  Do you really think the entirety of the 150,000 Federal Officers will come to your aid?  Or will they sit in Washington DC and in their big black Suburbans (armored, of course) issuing orders for you to go into the streets in your (unarmored) Crown Vics and die in their place?  Remember that the "bad guys" in such a circumstance outnumber you 10 or even 20:1 and not only are they probably armed as well as you are, they've actually shot - offensively - at other human beings.  Unless you're one of the "bad cops" you've never done that, and few of you have had to fire in self-defense.  Your only realistic advantage in such a situation is that most of the gangbangers are pretty poor marksman.

What's the outcome of such an event likely to be?  Remember, we may distrust you,  but the bad guys hate you to the core and would BBQ and eat you for dinner if they thought they could get away with it.  If things get bad they might deduce - en-masse - that they can get away with it.

Let's face facts: while today we all count on being able to pick up the phone and call "911" if we need an officer to take a report on our stolen stereo, if the bad times come you will need us, not the other way around.  We the people will, under such a circumstance, have the luxury of determining whether your oath of office has been faithfully discharged, or whether the only difference at that instant between you and the gangbanger is that you've got a fancy hat and a nicer car.

Most of us, should we determine that you're just the thug with the fancy hat will hide under the desk.  We won't shoot at you - that's not our way.  We're law-abiding citizens, for the most part, and while we will shoot back, we won't shoot first.  But what we won't do is help you, because your time - your opportunity to help us prevent this catastrophe - will have expired.  We will protect our neighbors, our friends, our fellow citizens.

But that's all. 

You will get to deal with Zombieland, and in the back of your mind as you're literally consumed will ring that old saw you laid on us for the last two decades: "I just follow orders; I don't make the rules."

Be honest with yourselves: Is this where you want to be, or would changing things now be worthwhile?  Would regaining the trust of the people be a good thing?  Would replacing the large percentage of law-abiding citizens who now would spit on your shoes with those who will stand shoulder-to-shoulder with you, weapons facing the oncoming zombie hoard, be a good thing?

If so you have some work to do and there's still time left to accomplish it.

To the politicians who are reading this, your Thorazine dosage needs adjustment as well.  The math is irrefutable.  If, in point of fact, AIG has entangled itself with the European Continent there is no escape from what is to come.  There is only destruction, and our only two choices are to cause as much of it as we can to occur there, by pulling the plug on these clowns now, or risk a literal World War.  We may get one anyway, but if we bring the bulk of the damage here we'll be dealing with a civil collapse at the same time, and have no chance of being able to deal with the geopolitical implications.  We must not allow that to happen.  You must not allow that to happen.

We understand you give the orders to the people I've been talking to (mostly) up above.  But you have less excuse than they, when it comes to oaths.  You all took an oath to uphold The Constitution as well.  You've used it as toilet paper, and that's on a good day.  The rest of the time we see you gleefully burning it in the Wells of the House and Senate, dancing around the smoke and fire like some odd pagan ritual.

It's time to stop.  Not because you want to, not because you fear us (even though you should - after all, we're your employers and can fire you) but because if you don't there won't be a nation worth governing left.  You know who the crooks are - including those among you. 

Let's talk taking this nation back.

It starts with declaring all CDS written against sovereign debt, directly or indirectly, void as contrary to public policy.  Yes, that cuts Europe off from any prospect of a US bailout.  So be it.

Next, all the banksters who were involved in these bogus securitizations need to be hauled into the dock.  Now.  William Black and his merry men sent over 1,000 people to the slammer in the S&L crisis.  There are ten times that many who need to go this time.

Third, force all credit-default swaps onto a public exchange with published bids, offers, last trades, open interest and nightly margining.  In public, where we all can see it.  Either that or ban these obscenities outright.  Choose one, and only one of those two options, and do it now.  Yes, I know the banksters will howl.  Too damn bad, and while you're at it, make it unlawful for any institution that does business in this country to transact in any way in any instrument that does not comply with that rule.  This monster, as I've been writing about for almost three years now, must be caged.

Fourth, reinstate Glass-Steagall.  Yeah, I know, the Senate doesn't want to do it.  The Senate wants a nation that's worth governing though, right?  We won't have one if this crap isn't stopped.  Mssrs. Glass and Steagall had it right in the 1930s.  Put it back.

Fifth, stop lying to the people - and this includes lies told through deficit spending.  We don't have the money and can't keep borrowing it.  If you don't stop we will find the "knee point" the hard way, at which point once again, you won't have a nation worth governing.  Remember the four steps above - neither I or my daughter, nor most of the 330 million Americans in this country, want to see the "anger" phase.  Our country is like a powder keg and every time you lie you're playing with matches in the room.  Stop it before you blow us all up.

Sixth, we're in a Depression, like it or not, and we're not going to get out of it until the bad debt is defaulted and cleared from the system.  Your job is to make that happen and get it over with.  That's deflationary.  Sorry; this is math, not politics.  The housing bubble was a hyperinflationary event - one hidden from the people by bogus government statistics and outright lies.  Deflation always follows hyperinflationary credit booms - it's either that, or the destruction of the government, political system and currency.  You choose, but if you do not decide, destruction it will be.

Seventh, close the damn border and declare all the illegal immigrants as what they are - invaders.  Tell them to either leave or will expel them - and mean it.  Declare "LaRaza" a terrorist organization and lock 'em all up.  Americans need the jobs and we cannot afford to have five or ten million thugs just waiting for opportunity in the smallest loss of civil order to swoop in and take advantage of us all.  At the same time, drop your insane "War on Drugs" and replace it with a taxation, regulation and legalization structure.  Yes, I said legalize - federally.  While we still have time we must cut off the chief funding source for the murderous thugs who otherwise, given the opportunity, will feast on you after they BBQ the local and state law enforcement crowd in our major cities.  Don't BS me or anyone else with your claims that such isn't a real risk - I don't see you strolling around in your fancy suits through the bad parts of Washington DC sans security details.  Gee, I wonder why not......

Finally, to President Obama.  You can't serve both the banksters and The American People.  You took the oath of office too.  Now you have to choose.  Not only will you lose in 2012 (badly) if you don't start locking up the jackasses that got us into this mess but if you don't ram the above seven points down the throats of these banksters and others in the next couple of months your party will be decimated in the November elections.  Some of your oldest allies in the Democratic Party are resigning; Senator Bayh, for example.  Illinois' State financial health is akin to someone with terminal pancreatic cancer, and that's where you're going home to in 2012 if you don't quit being nice-nice with people who have played rape-rape to the American people and economy for the last two decades.  You didn't make the mess (you weren't around long enough to do it) but you had damn well better clean it up, or what will be left of this nation is unlikely to be worth governing by the time your term expires.

Health care may be important but not until the above is taken care of.  Fixing the financial system is the issue you must confront and fix in its entirety.  Not half-way, not by compromise - you simply must fix it.  The seven points above are not options, they're not discussion points - they're mandatory.  All of them.  Don't believe me if you don't want to - believe Charlie Munger, one of the wisest investment professionals ever to live, and, in my opinion, the smarter half of Berkshire Hathaway (with no disrespect intended to Warren.)

The choice is yours Mr. President, but the consequences will belong to all of us.

Choose wisely.

That sounds dramatic - even drastic.

But is it?

There's an argument raised over at "Washington's Blog" that the real cause of all the financial problems -the global mess - is the WTO:

On March 1, 1999, countries accounting for more than 90 per cent of the global financial services market signed onto the World Trade Organization's Financial Services Agreement (FSA). By signing the FSA, they committed to deregulate their financial markets.

But let's be straight here.

"Deregulate" does not give license to fraud, even though there are some who would argue otherwise. 

The root issue with all of these "financial products" is that they are unmarketable unless someone lies.

You can't sell a "structured product" comprised of liar loans if you're honest about the "qualifications" (or rather, the lack thereof) of the borrowers at anything approaching a profitable rate of return.  Nobody will buy.

With honest ratings a CDS + Bond will always yield less than the risk-free rate of return.  This is because nobody works for free, and the more complex something is, the more it costs.

These are facts, not suppositions.

So WTO or no WTO, without willful blindness toward fraudulent practices the market will take care of the scoundrels.  Without the ability to lie - that is, if we simply lock up all those who misrepresent credit quality the liar loan + CDS will yield less than a Treasury of equivalent duration, and as a consequence the purveyor of those liar loans will have to price them at a rate that accurately reflects their risk of default (plus his profit.)

This instantly cuts the BS.

Yes, we could simply tell the WTO to get stuffed, and I can make a cogent argument that we should - for a number of reasons, not the least of which is that "free trade" doesn't make allowance for those working under literal (or near-literal) slave conditions, such as Chinese and Vietnamese workers who are working under effective conditions of indentured servitude and lack the human and labor rights protections we enjoy in civilized nations.  "Competing" with a labor source that effectively has a gun in its mouth is not only impossible, the concept is idiotic on its face.

But that's irrelevant to the argument that "we were forced by treaty to deregulate." Among other things deregulation does not mean legalizing fraud and never has. 

Second, the WTO's "FSA" appears to have never been sent to Congress and thus has no force of law as a treaty.  It is a mere "suggestion" - and one that Congress has every right to ignore, as do our regulators, as under The Constitution all Treaties must be ratified by The Senate - without that consent any purported "international agreement" is of no legal force whatsoever.  Treaties cannot be amended once voted upon without being subjected to a second vote (and possible refusal); the FSA was an amendment to an existing treaty, and thus without being considered by The Senate is a nullity in terms of actual United States obligations.

The "globalists" (and scaremongers who believe we have sold out to them) would have you believe that we have somehow obligated ourselves.  This is false.  We have done no such thing, and whether our government has complied with these wishes (some would say demands) out of a desire to appease those who have bribed legislators with million in campaign contributions the fact remains that when it comes to legal force of law in this regard there is none.

This, by the way, includes the WTO, which has a nice list including the US on the web page referenced above.  That too is, as far as I can determine, a lie as the FSA was never put to Senate Ratification, and without that having occurred it is legally void, whether the WTO likes it or not.

(PS: For those who wish to argue that the Republicans are to blame for all of the world's ills, you should look into who was President when the negotiations took place on the predicate parts of the treaty that was ratified prior to the FSA "add-on" that has no force of law.  Hint: He tried to hide what he had spilled on a particular blue dress.)

... from Massachusetts.

This will be their Waterloo:

Nine months after he penned a memo laying out the arguments for health care legislation's destruction, Republican message guru Frank Luntz has put together a playbook to help derail financial regulatory reform.

In a 17-page memo titled, "The Language of Financial Reform," Luntz urged opponents of reform to frame the final product as filled with bank bailouts, lobbyist loopholes, and additional layers of complicated government bureaucracy.

"If there is one thing we can all agree on, it's that the bad decisions and harmful policies by Washington bureaucrats that in many ways led to the economic crash must never be repeated," Luntz wrote. "This is your critical advantage. Washington's incompetence is the common ground on which you can build support."

Uh huh.

So the bad decisions and harmful practices of Washington bureaucrats were all Democrats? 

I think not.

Bankruptcy "reform", that left the common man chained to his debts, while big banks and other corporations use the bankruptcy court as a "get out of debt free" pass issuance device?  That was a Republican bill.

Removal of the leverage limits from the investment banks, without which the housing bubble would have been stopped dead in 2004?  That was a Republican (Paulson) going to a Republican SEC.

A Department of Justice that sued states to prevent them from enforcing anti-predatory lending laws and those that curbed (or outright banned) stated income and other "liars" products?  That was a Republican Administration that did that, at the direction of George W. Bush.

Let's not kid ourselves: The looting is bipartisan and so is the responsibility.

But "killing financial regulatory reform" is one of the dumbest things that The Republicans could ever do.

Let me remind The Republicans that I warned McCain's campaign in 2008 that if they did not take the side of the common man in the TARP "bailout" debate, and instead endorsed it, he would lose.

He did.

Paulson's memoirs essentially admit to threatening McCain to force him to come in line.  He knuckled under, thereby proving that he was unfit to hold the Office of President, since the first requirement of being President is that you must have a pair of rocks between your legs - and when the tough choices have to be made they better clank (literally or figuratively.)

But now The Republicans are threatening to completely misread the message of Massachusetts and wind up literally destroyed, where Massachusetts gave them the opportunity to take back The House and Senate, becoming the majority party for the next 20 or more years.

Sadly, The Republicans learned nothing from the message in these special elections, of which Massachusetts was just the last.  These folks seem to think that the people will tolerate the bankster bailouts, bankster bonuses and the raw theft and scams embedded through our so-called "financial system" - and that the system will both remain stable and not collapse anew if they do not fix it.

They're wrong, and if they listen to Mr. Luntz they're writing their own political obituary.