The Stampede to Socialism in America!

by Richard H. Frank

As 2014 begins every American needs to look back at what has occurred in this Country over the past 5 years under Barack Obama’s Presidency and his Administration. Never in my lifetime have I witnessed a more inept, incompetent and corrupt Administration aided by those in Congress hell-bent on the destruction of the very fabric upon which this Republic was founded, Our Constitution!

We have a President who has no qualms about looking Americans directly in the eye and lying to them over and over again. When the facts do not support his assertions and agenda he and his Administration just change the facts thinking the more they expound on fallacious information eventually we stupid Americans will believe the rhetoric.

How slow are Americans in realizing what is taking place before our very eyes? From stimulus spending and non-existent shovel-ready jobs, to failed green energy programs, to the spring of recovery in 2009, to Benghazi being the result of a video and on and on again. Yet in the upcoming State of the Union Address our majestic President will be sure to take credit for equally unreal achievements such as the bogus decline in unemployment and the surge in American energy production and exports and of course his signature accomplishment “The Affordable Care Act” aka “Obamacare.” Thus far every promise he has made concerning healthcare is either being proven untrue or at best exaggerated.

Then we have Congress, the People’s voice and representative to bring checks and balances against an oppressive Executive Branch of Government. The voice of the People has been muted through Congress supporting the Socialist’s agenda of Obama and his Administration by extension of entitlement spending unabated.

Today we have unemployment benefits extended for up to 99 weeks, food stamp programs increased by over 70%, health care costs now forecast to be three times that projected when the ACA was originally passed and welfare programs expanded to illegal aliens at unprecedented rates. All of these programs are being paid for with money this Country and the Obama Administration doesn’t have. Instead we just borrow the money and pass the soon to be $18 trillion debt on to our children and grandchildren.

The Rule of Law has been substituted by the rule through Executive decree or administrative regulations issued by unelected bureaucrats in various agencies of the Federal Government; i.e., the Department of Labor, the Environmental Protection Agency, Homeland Security, the National Security Agency and the Department of Justice. Many of these regulations are aimed at suppression of the free enterprise system and usurping the very freedoms conferred upon each of us under the Bill of Rights.

President Ronald Reagan warned that the first step toward destruction of the Republic would be a move towards socialized medicine. Obamacare is that first step and must be repealed before the roots of socialism take root and like an invasive vine choke the life from our Nation.

In the 1960s Nikita Khrushchev warned that America could not be destroyed by any attack from abroad but would eventually be destroyed from within. Now some 5 years later those of us old enough to remember his words bear witness to “the stampede to Socialism.” Unless “We the People” intervene and change the representation we elect to Congress the Liberal Progressives will assure the eventual “transformation of America” to a European social democracy as has been publicly declared by Barack Obama.

The Declaration of Independence holds the answer as to how “We the People” can prevent this oppressive Government from subverting our Constitution and freedom. Take heed America!

The Conditioning of America!

By: Richard H. Frank

Barack Obama’s 2008 campaign pledge to “fundamentally change America” has been launched and implemented little by little over the past 3 1/2 years. His administration’s initiatives to achieve “fundamental change” have been marked by a three-pronged assault upon the free enterprise system and our Constitution itself. The coordinated attack starts with onerous legislative efforts, which usually fail, followed by pushing the proposed objective through executive and or administrative fiat. If either of these approaches raise the ire of Congress , or the electorate, the administration turns to the Justice Department to challenge and intimidate those that oppose their initiatives.

The liberal progressives are tenacious in pursuit of their socialist ideology. They have persisted in pushing their agenda for nearly 100 years and with the election of Barack Obama have virtually brought this nation to its knees as a result of the accumulated burden of unfunded entitlements, out of control spending and a national debt on the fast track to $20 trillion over the next four years. A debt that outstrips GDP and burdens our children for generations to come.

Achieving energy independence is a prime example of how the liberals condition the population to accept “fundamental change” and their agenda. The Obama administration stands directly in the path of the free market initiatives to develop our own natural resources through exploration and development on Federally-controlled lands and offshore paying homage to the special interests that support their agenda. New sources of fossil fuel and environmentally-safe technology for extracting these resources are demagogued as unproven and a threat to the environment. As a result the increasing demand for oil world-wide increases the price of crude and sends gasoline prices soaring along with every commodity requiring transport to the market place. The Obama administration contends that there is little they can do to impact oil prices and that lifting restrictions and increasing permits will take too long to impact the world market. This is the same story we have heard for the past 30 years when, if we had acted, we would not be faced with a looming crisis for future supply at a price dictated by supply and demand as opposed to that determined by the far east oil cartel.

Until the price of a gallon of gasoline approaches $5.00 and the electorate rebels against the government inaction and their outright obstruction to increasing domestic supply the administration resorts to short-term actions like releasing oil from the strategic reserve as a means to manipulate prices just enough to cause the price to drop just below $4.00 per gallon. In the interim the President condemns big oil for raping the public and making obscene profits when the truth is big oil makes about 8 cents for every gallon of gasoline sold while the Federal government makes 26 cents, more than three times that of the oil companies.

This shell game orchestrated by the Obama administration is intended to condition the public to accepting $3.50 per gallon as the new normal and forget that just 3 1/2 years ago we paid only $1.80 per gallon in 2009 when Obama took office. Over time just as a trainer does with his dog, the public is conditioned to gladly accept the 100% increase as a good thing.

Then we have “Obamacare” sold to America by liberals in Washington in support of the President as the panacea that would provide “affordable” health insurance to every American. For over two years Nancy Pelosi, Harry Reid and Barack Obama preached the following rhetoric until many Americans believed them.

  • If you like your current health care plan and doctor you can keep them.
  • The average family will save $2500.00 per year in premiums under Obamacare.
  • Obamacare will not increase the deficit – not by a single dime.
  • The Affordable Health Care Law mandate is Constitutional under provisions of the commerce clause.

The first three statements above have been proven to be untrue and we will soon hear from the Supreme Court if the fourth is in fact Constitutional or not.

Three and one half years after Obama and his administration assumed power the standard of living for many Americans has deteriorated. We are told that the new norm for the middle class will include limited opportunity for jobs and sustained unemployment levels of 8% or higher. Higher taxes will be required for all income levels to support expanded entitlement programs with food stamps alone growing to include in excess of  50 million families.

For those senior citizens living on a fixed income the prospect for the future appears bleak. The inflationary impact from energy prices coupled with the necessary rationing of health care under Obamacare are the first harbingers of the “fundamental” changes yet to come. The conditioning process for the elderly includes loss of equity in their homes and the value of their pensions earned over all their working years. Expendable income vanishes rapidly for this segment of American society more quickly than for any other.

The conditioning process will proceed even faster should Obama be reelected until the standard of living we experienced in the 20th century will just be a fading memory. The “fundamental Change” Obama seeks is to achieve a social democracy where we are dependant upon government for survival. Statism fosters such dependency on government for subsistence. When that dependency can no longer be supported through taxation of the free enterprise system those conditioned to rely upon the so-called entitlements eventually turn upon their benefactor, the state, and rebel. We are witness to this in Greece and many other European social democracies.

Generations yet unborn will not know how this nation was conditioned to give up freedom and self-reliance in the name of fairness and turned America into a nation of mediocrity from the vibrant , exceptional free society experienced in the past.

Those of us that have experienced the blessings of freedom embodied in our Declaration of Independence and our Constitution must stand firm against “fundamental change’ in America and return to the conservative values and principles that made America the greatest nation on the face of the earth.

Who Do You Trust?

by Richard H. Frank

Today the Labor Department reported the unemployment rate in the U.S. dropped to 8.3% due to the creation of 240,000 jobs during the month of January.  The talking heads on television are ecstatic about this development and Obama’s policies finally resulting in job creation.  I just don’t understand the math when the same Government agency has reported over 350,000 first-time claims for unemployment each week over the same time period.  If my multiplication skills are correct, the first-time claims equal 1,400,000 job losses over the same period.  In order for the private sector to have had a net gain of 240,000 jobs in January, a total of 1,640,000 jobs would have to have been generated during the month. That rate equates to more than 19 million jobs per year outpacing the record set during the Reagan administration. Not likely!

There also seems to be some sleight of hand present when it comes to calculations for the unemployment rate.  When the trend is unfavorable to Obama politically, the base number for the workforce is adjusted downward making the percentage look better.  However, as people re-enter the workforce there appears to be no adjustment to the base again making the percentage look better, and a trend line favoring Obama’s policies.

The real measures for recovery are quite different from the Government manipulated numbers.  The economy can hardly be touted as being on the rebound when:

  • The annual growth in GDP is less than 2%.  Historical recovery growth ranges between 5 and 7% annually.
  • The annual budget deficit is running at a rate of $1 trillion/year with the debt ceiling now set at $16.2 trillion.
  • Unemployment benefits of 99 weeks are about to expire and a further extension is expected.

Even the Congressional Budget Office has a more realistic view of the recovery over the long term and is forecasting tepid growth in the GDP of around 2% per year and unemployment increasing to between 9 and 10% by 2013.

So long as the Obama Administration stubbornly clings to its anti-oil policy and anti-coal policy and pushes for redistribution of wealth in America we will see our standard of living continue to erode and see America  join Europe as a nation in decline.

Look around your community and ask yourself where the growth is and who do you know that has been hired in a good-paying  job with the prospect of long-term employment.  Ask yourself “Have my personal finances improved or am I paying more today for gasoline, energy, food and health care?”

Lastly, and more importantly, are you better off today than before the Obama presidency and what is the future prospect for your children achieving a better standard of living.

Trust yourself and not those having a political agenda and the answer will become quite clear.

Obama’s Shell Game – A Recipe For Disaster!

By: Richard H. Frank

On November 16, 2011 I wrote a blog entitled “On The Road To Greece” in an effort to point out how the professional spenders in Congress and the Obama White House lack any sense of responsibility to take action to cut spending by our Federal Government. Today the national debt stands at $15.1 trillion and is rapidly approaching the increased debt ceiling approved by Congress a little over six weeks ago and equals $48,500 for each and every citizen in America or more than twice the median income for our families.

What is even more frustrating is that Congress has failed to pass a Federal budget since August 29, 2009. Instead the Democrats led by Nancy Pelosi and Harry Reid have resorted to passing continuing resolutions to fund our government in short spurts ranging from six months to one year at a time. The result  is spending levels of $3.6 trillion annually and deficits of $1.3 trillion each year since Obama assumed the Presidency. Obama’s shell game seems to be one of creating a fiscal crisis that threatens to shut down the government and then insist on increasing the debt limit in order to borrow more money from the Chinese  to satisfy the unending thirst to spend in Washington. When confronted with resistance from Congress Obama resorts to threats  and intimidation in the form of withholding payments to our military and their families and not paying our senior citizens their social security in a timely manner. This is always followed with a promise that he will appoint some commission to make proposals on how to reduce spending and balance the budget. Such was his promise in 2009 with the appointment of the Simpson-Bowles Commission on Fiscal Responsibility whose recommendations he totally ignored and the bi-partisan Super Committee that he charged with finding $1.2 trillion in spending cuts following the latest increase to the debt ceiling. Notice how Obama plays the shell game and removes himself from ever having to make a decision and then placing the blame for inaction on someone else.

So now our brilliant leader has come to the conclusion that Congress must once again increase the debt limit by $1.2 trillion additionally in order to sustain our present level of spending or massive tax increases will result as the only other alternative available for his administration. After all, if the rich would only pay a little more of their “fair Share” all this unpleasantness could be avoided. Obviously we are approaching an election year and Obama needs to remedy this situation before it becomes a distraction to his re-election efforts.

Unfortunately for every American citizen it is also an election for Congress many of whom are anxious not to have the debt ceiling issue obscure their efforts for re-election as well. So be prepared to bend over and grab your ankles once more as our President and the Democrats in the Senate slip another debt limit increase to us with a promise that a solution to our fiscal woes remains hidden under one of the shells remaining on the table. Also, don’t look for the Senate and Harry Reid to make any budget proposals for 2012 as it won’t be necessary until after the election and they will take care of it in 2013 as an issue high on Obama’s agenda following his re-election.

With the next increase in the debt limit Obama and the Congress will have pressed the express down button on the elevator to our becoming Greece. The only way we can stop this insanity is to clean house in November 2012 and vote out any member of Congress that places his allegiance to his party over his oath to uphold the Constitution and do the job he or she was elected to do. That also goes for Obama as well and his ilk. After three years of his administration how is that “Hope and Change” working out for you?

Wake up America before it is too late to correct course and return to the Nation of limited government and free enterprise envisioned by our Founders. We must not allow the career politicians to usurp our heritage of a “Government of, by and for the People being replaced by a socialist democratic machine akin to those found in Europe.

On the Road to Greece

by Richard H. Frank

It is ten days until the Congressional “super committee” punches this nation’s ticket on the express train to becoming Greece.  The latest double talk coming out of Washington is evidence of the disdain our elected Representatives hold for the very constituents that voted to place them in office.  They  must think the American public is stupid and will accept the conclusion that since there cannot be any bi-partisan agreement on budget cuts, that they will set new spending targets and return their recommendations to each congressional committee to finalize the reductions.  Here we go again, “Ring around the Rosie,” right back to where we started with the national debt exploding at an unsustainable rate and reaching $15 trillion on November 16, 2011, equalling the gross domestic product of the country.

As for the mandatory cuts of $600 billion in defense spending accompanied by an equal amount in domestic programs, don’t hold your breath.  One  must put the size and scope of the problem in perspective.  The current forecasted spending for this fiscal year is approximately $3.6 trillion with anticipated revenues of approximately $2.1 trillion for a projected deficit of $1.5 trillion.  If every federal agency was mandated to cut their expenditures by 15% annually, the projected reduction would amount to $540 billion creating an annual deficit of about $960 billion in addition to interest being paid on the debt of $454 billion for a net loss in cash flow in excess of $1.4 trillion annually.

When Congress speaks of a grand scheme to cut $4.5 trillion over ten years, it is a joke when viewed in light of the continuing $1.4 trillion short fall in revenue each year.  The expectation that every government agency will cut spending by 15% is likewise a “fairytale.”  The balance sheet of the Federal Government can only be brought into equilibrium by a combination of spending cuts and revenue increases equal to 51% of our current spending levels.

Assuming the 51%, or $1.8 trillion is achieved through bi-partisan congressional actions, coupled with increased revenues from economic recovery, it would take 30+ years to totally eliminate the national debt.  So much for the future of our children and grandchildren.  Keep in mind the scenario above assumes we never exceed a federal spending level of $3.6 trillion annually.  Considering the unfunded future entitlements amount to $60 trillion plus are not accounted for in the spending assumptions it is apparent that sooner or later the Republic will face the same fate that has arisen in the European Union.  Greece is the first to fall, closedly followed by Italy and Spain.

The size and scope of the overhaul needed by or Federal Government is mind-boggling.   Unfortunately, Congress does not possess the cojones to take action to correct these problems created by government over the past 70 years and many liberal elites and their followers on the left will not support the necessary overhaul.  Hence, we find ourselves on the road to Greece with our nation in decline and the standard of living eroding for every American.

Obama’s Agenda IS on the Backs of the Middle Class and Elderly

by Jayne D. Frank

Listening to President Obama’s lies once again today in the Rose Garden, I cannot help but wonder how many elderly people in this Country still buy his “crap!”  Having worked all my life in the corporate world and owning a small business during my semi-retired years, I have seen first-hand the affect of his policies on my family and my neighbors.  We lost our small business in the wake of the mistrust and economy downturn following the election of Barack Obama in 2008 and since that time have seen our own standard of living, as senior citizens, as well as that of our children, decline to a point approaching poverty.  We might as well not have worked and paid taxes all of these years ; perhaps the hippies had it right in the 60’s – “If it feels good – do it!”  We could have enjoyed not working, searching the world over for our “other selves” and just had a good time, instead of being productive Americans, taking care of our parents along the way, and hoping to finally have that “good time” during our retirements.

Now that we have arrived at our Golden Years, we find ourselves, like millions of senior citizens, in 2011:

1)  Paying 3.66/gallon average price of gasoline over the $1.67 in 2008; we can’t afford to take trips anywhere.

2)  Looking at another 3.5% increase in cost of our stay-at-home grocery bill, caused almost entirely by crops diverted to biofuels and smaller yields caused by EPA regulations on farmers; that leaves us nothing to ever go out to dinner with each other.

3)  Looking at a future where doctors are to be rewarded for their cost-saving, performance-based, rationing of our medical care, as most recently repeated by President Obama in his speech today;

4) Incurring Medicare premium increases in 2012 through 2014 which will offset any COLA increases seniors may get, caused singularly by Obamacare; again keeping seniors locked in their homes unable to spend any money and help spur the economy.

5) Investigating ways to pay for our prescriptions in 2012 and future years as Obamacare and the Obama administration make it harder for us to pay higher increases in our insurance plans.  Perhaps, somewhere in Obama’s vision is a “Soylent Green” kind of world where we can all peacefully get out of the way to make room for younger generations;

6)  Worrying about our children and grandchildren losing their jobs without any future for rehiring, losing their real estate investments and not having a committed Congress who will ensure that our children will not be paying off our governmental debts forever.

I wanted to travel with my husband, to pay my way in life, to not have to worry about my children and their futures, and to be able to stay well.  I fear that unless seniors wake up in this country, get their voices back and resist President Obama’s efforts to reshape our beautiful Country in HIS vision, that this will only be a memory we once had.

What I want is for the class warfare and the lies of this Administration to end so that we can get about healing the divisions in our country and make America better for all Americans.  43% of Americans pay nothing in this country, not counting all the millions we are spending on people that have never paid into our system and are not citizens.  But instead of addressing the real problems that are facing this country, such as the true cost of immigration (legal and illegal), a true “welfare class” that has never worked and don’t want to work, and an obsolete and ineffective tax system, as well as Government spending, the Administration is now targeting seniors, who are the real victims in this scenario playing out in Washington.

America Cannot Afford Another Four Years of Barack Obama!

by Richard H.  Frank

It is now 18 months prior to the 2012 Presidential election and already paranoid politicians and the liberal media are in full campaign mode.  The most paranoid individual, in my opinion, is our neophyte President, Barack Obama, whose double-talk is evident in every speech he delivers.  The blame game is in hyper-drive as Obama attempts to divert the realities of his failed policies to the worn-out campaign rhetoric of distortion and outright lies about the opposition.  His call for civility and transparency without vilifying individuals or organizations is laughable when in the next breath he reverts to using these exact tactics.

Somehow, the media and Democrats seem to believe that Barack Obama has proven his leadership ability to America through the assassination of Osama bin Laden.  Eventually, the truth will be known and show that in the face of the evidence provided by the CIA and military intelligence, Obama was forced to give the go-ahead to the plan conceived, not by him, but by the military, or be shown as the indecisive individual he has shown himself to be in the past.

President Obama and  his administration have a major problem to deal with in the upcoming 2012 election.  That problem is their dismal record of driving America rapidly into bankrutcy and the eventual collapse of the dollar.  Their failures are evidenced by the disasterous results from stimulus sending, corporate bailouts, increases in the deficit and policies that have prolonged the recession which now has all the signs of entering a double dip with new claims for unemployment exceeding 1.0 million last month.

The President’s position is that he and his Administration did not realize how bad the situation was when they assumed office, that his campaign promises such as reducing the deficit by half during his first two years and keeping unemployment no higher than 8% could not be achieved.  The truth is that America elected Obama to the highest Office in the land, an individual with zero experience at running anything, based on his rhetoric of hope and change and fundamentally changing America and the world.

Only now are “We the People” beginning to feel the impact of Obamacare and are coming to the realization of the distortions and outright lies told to America about the legislation.  I can only pray to God that our Supreme Court finds this disastrous piece of legislation Unconstitutional before it can be implemented further.

Obama’s latest target is once again to focus upon “big oil” and its enormous profits.  His latest attack is to remove any subsidies given to oil companies while demanding subsidies for solar and wind energy development.  If subsidies for oil are eliminated then so should those for solar, wind and electric vehicle development also be eliminated.  This will not happen as solar, wind and electric vehicles cannot compete economically with petroleum-generated energy.

When Government endeavors to pick winners and losers in the economy they alter the competitive playing field in favor of their ideological preferences through subsidies.  Unfortunately, the American Consumer pays the price for Government’s ideological preferences as opposed to free market principles of supply and demand.

Consider the impact curtailment and regulation of domestic oil production has had on the price per gallon of gasoline we pay at the pump over the past 25 years.

Dom.Production

Nominal Avg

Inflation Adj.

M/Barrels/Day

Price/Gallon

Pr@2010 Dollars

1986

8.75

$1.00

$1.70

1988

8

$0.98

$1.70

1990

7.5

$1.10

$1.80

1992

7

$1.08

$1.70

1994

6.6

$1.10

$1.60

1996

6.5

$1.20

$1.60

1998

5.9

$1.10

$1.40

2000

5.8

$1.45

$1.80

2002

5.75

$1.40

$1.60

2004

5.5

$1.80

$2.50

2006

5.1

$3.00

$3.25

2008

5

$3.15

$3.00

2010

5.5

$3.00

$3.00

May-11

5.5

$3.98

$3.98

Between 1986 and 2008 domestic oil production in the U.S. dropped by 43% and we saw a corresponding increase in the cost per gallon of 215%.  Critics of increased domestic production say the increase is primarily due to inflation and Mideast oil cartel manipulation of the price per barrel produced to meet worldwide demand.  They fail to acknowledge that energy prices have a dramatic influence upon inflation as well as Government’s recent move to monetize our debt by the massive printing of dollars that reduces the purchasing power of every American.

If we accept the argument of those that oppose domestic oil production but had just maintained the 1986 level of production, the price at the pump today would be $1.70/gallon, not $3.98.  Instead, we have wasted 25 years and cost our economy trillions of dollars transferred to the Mideast and lost millions of new jobs for Americans in the process.

Yet we see His Majesty Barack Obama while in Brazil pledging financial support to Brazil’s oil development industry and pledging the U.S. as a customer to their economy instead of pursuing domestic development at home.

One final point to be made about Obama’s vilifying big oil.  In 2003 there were 28 energy producers operating in the United States.  These firms had operating income of $828 billion dollars and paid Federal taxes of approximately $38 billion. The total capital employed by these firms was much larger – $638 billion which translates to a return on capital of 12.8%.  The average annual return on equity between 1973 and 2003 was 12.6% for fossil fuel companies and 13.1% for the S&P industrials.  In either event the oil producing companies’ return has historically been less than S&P companies due to the huge development costs for exploration and eventual production.  Let us also not forget that big oil accounts for 9.2 million jobs that contribute to our economy and the Federal revenue stream.

The opposition to Barack Obama and the liberal Democrats in Congress need to learn the facts and confront the lies of the Administration headon over the coming 18 months.  The barrage of half-truths and lies being gathered and edited into sound bites and talking points will not stand the test of the facts.

The record provides the evidence as to why we cannot afford to re-elect Barack Obama and the liberal Progressives in Congress and America should be forewarned that Barack Obama will do everything in his power to smooth talk, persuade, and “charm” his way into office and we must remain vigilant and continue to educate the uneducated about this man’s lack of qualifications for the Office.