Corruption of Our Fundamental Constitutional Institutions

By: Richard H. Frank

Six months ago I wrote in a blog entitled “Bye, Bye, Miss American Pie!”, that “We the People are about to witness the demise of a nation governed under the law to a nation governed by the will of the political establishment.” There is no argument that can be made that Hillary Clinton is not guilty of committing numerous felonies in conjunction with her illegal activities when handling classified information while serving as Secretary of State. Barack Obama set the stage for his Justice Department to stonewall investigation and road block any attempt to impanel a Grand Jury to hear the growing mountain of evidence that would indict any individual other than a Clinton for committing the same offense.

Not only has Obama stated on numerous occasions that Hillary did nothing to place our national security in jeopardy but that she was the most qualified person ever to seek the office of the Presidency. Now he has taken his disdain for the rule of law one step further when he has stated undocumented voters, (illegal aliens), would not be pursued for breaking the law and voting in the 2016 election. Just another law that Obama doesn’t like that will just be ignored. How many times can a sitting President be allowed to violate his oath to uphold the Constitution and enforce the rule of law in our country?

Over the past eight years we have seen the results of Obama’s “Hope and Change.” Every metric used to measure the impact of government’s actions have been distorted and manipulated to reflect positively on the policies of our first black President and his political congressional supporters. Unemployment numbers, economic growth, job creation, and health care all have been distorted to cover the lies of Barack Obama and the Democrats in Congress. Scandals within the Department of Veterans Affairs, the IRS, the FBI, the State Department and the Justice Department have all been infected by the corrupt influences brought to government by Hillary Clinton and Barack Obama.

It is long past the time when we need to “Drain the Swamp” within the hallowed halls of Washington D.C. The days of political expediency being substituted for our Constitution is the real issue being decided on November 8, 2016. Unless “We the People” stand up and put a swift end to corruption within our Government institutions there will be no return to the Representative Republic envisioned by our Founding Fathers. Hillary Clinton cannot be allowed to assume the Presidency if this nation is to survive.

The moment is at hand when we may retain our national anthem or substitute the theme from Bye, Bye Miss American Pie to mark the day our nation died.

Rick Perry’s Distortion of Venture Capital

by Richard H. Frank

Rick Perry needs a lesson in economics and the role of venture capital and private equity firms with regard to growth of our free enterprise system.

Private equity companies such as Bain Capital are in business to make a profit for their shareholders from the capital they invest in private enterprise.  Their mission is simply to “create value” through the free market system and eventually divest of their interests via a sale or IPO (initial public offering) in an effort to recoup their original investment at a profit.

Rick Perry would have you believe Bain Capital uses predatory means to acquire ailing companies for the sole purpose of looting their assets, destroying their capacity to produce at a profit and forcing them to liquidate through bankruptcy.  Any person with an ounce of business sense would consider Governor Perry’s explanation of venture capital as the height of stupidity.

With regard to Bain Capital I think I am more qualified than Rick Perry to talk about the process they employ for making a decision whether to invest in a particular company or enterprise as I actively participated with the Bain Capital process from 1995-1999.  Venture capital or private equity firms conduct exhausting due diligence investigations before making any decisions regarding a potential investment.  They are provided with hundreds of prospectuses from companies seeking venture capital.  Not all of these companies are distressed and facing eventual bankruptcy.  In fact, the opposite is true for many institutions seeking additional capital.  Many small companies that are profitable need new capital to expand, to increase market share, create new employment opportunities and create lasting value for their shareholders.  Others find themselves participating in a market that is over capacity and struggling to achieve a profit on their limited market share.  For these companies, buying out competition to make better use of existing capacity and eliminating duplication of overhead becomes their only road to survival and private equity firms play a larger role in achieving the objective of consolidation in some particular industry or market.  In the long term, this consolidation helps keep jobs in America.

Buying losers for the sake of bankrupting them in no way creates value in the market place nor a profit for investors.

The marketplace and potential growth is the ultimate criteria upon which companies such as Bain Capital make their decisions for investment.

My experience in dealing with Bain Capital proved to be both educational and rewarding.  The due diligence process extended over a period of four months and assessed every aspect of our business including our market segments and prospects for growth, financial performance for past years and future projections, strength of the management team, reputation with our customers and of utmost importance the ability to manage growth and change.

Between 1995 and 1999 with the financial backing of Bain Capital our business grew from  $300 million in sales to $1.2 billion.  The phenomenal growth came from a combination of acquisitions and organic market growth.  The process of consolidating capacity and elimination of duplicate overhead structures impacted approximately 300 positions across 5 states and 10 manufacturing locations while establishing upwards of 5000 highly paid positions for both union and non-union people.

Were it not for private equity firms such as Bain Capital, the industrial consolidation process in this Country would have been considerably more painful and much slower.

To be sure, Bain Capital had an exit strategy when they first invested in our industry.  That strategy included creating value for present and future shareholders from their initial investment, supporting growth through new capital from the sale of bonds and/or a future IPO.  And finally, divesting of their holdings at a profit when it appeared feasible to do so without impacting the company negatively.

According to Rick Perry, this is a portrait of “vulture capitalism.”  From my prospective, it is a portrait of the free enterprise system in action rewarding those who take a risk on the initiative and expertise of the American worker.

What Sort of Government Have You Given Us Dr. Franklin?

By: Richard H. Frank

Benjamin Franklin is purported to have replied to the above question with “a Republic madam, if you can keep it.” Benjamin Franklin recognized the threat posed to a “Representative Republic” by partisan politics, special interests, and unrestrained growth of the central (Federal) government. The Constitution imposed heavy restrictions upon the three separate and equal branches of government and left the fabric of authority for legislation in the hands of the several individual states protected by the 10th Amendment to the Constitution.

Over the past 100 years liberal progressive manipulation of the Constitution  has resulted in the creation of bloated bureaucracies at both the Federal and State levels of government with an unsustainable appetite to spend this nation and the states into bankruptcy. Even following the 2010 elections where the people confirmed their demand for fiscal responsibility and elimination of uncontrolled taxation and spending, Congress still has not passed a budget for the current fiscal year and the mythical threat of government shutdown is used to villify members of the  opposing political party.

At the State level we have witnessed massive union demonstrations including invasion of State Capital buildings as the special interest groups rebel against legislative actions to restore fiscal responsibility.

Our elected representatives should take a lesson from the average American family as how to balance their personal budgets. Millions of American families across this nation have had to make difficult choices about where spending would have to be curtailed in order to continue providing the survival necessities for their family. In order to provide food, clothing and shelter the majority of Americans have found it necessary to curtail most if not all discretionary spending. Many have been forced to find multiple means of employment just to supply the necessities. For the millions out of work and those on fixed incomes (mostly seniors) the choices have become even more difficult. These individuals and their families, approaching 50 million in America, are faced in many instances with loss of their homes, ability to pursue higher educational opportunities and the threat of creeping inflation that diminishes the purchasing power of their fixed income. These sacrifices are real and equate to major spending reductions and belt-tightening on the part of individuals and families that in many instances approach 20 – 30% of their budgets. The pain being felt by these individuals is massive in comparison to the minor budget cuts currently being debated in legislatures at both state and federal government levels.

Political ideology seems to be substituted  for facing reality within the Democrat caucuses in Congress. The debate over cutting $100 billion from the 2011 federal budget has become absurd when that amount is compared to the total spending incurred by the Federal Government. Depending on how the spending cuts are apportioned it amounts to less than 2% of the total budget for the year.

Democrats seem to think that as long as the FED has the ability to print dollars there is no urgency to imposing meaningful spending reductions. These legislators need to spend a day in the grocery store to see the impact that printing dollars has on the price of food, clothing and energy. All these items are excluded by government from calculating the consumer price index as the basis for determining inflation.

Congress needs to take a lesson from small businesses and American families and cut spending across the board by 20% wherein every bureaucratic agency will feel equal pain much the way the American public has felt it for the past two years or longer. Five years of 20% budget cuts would result in achieving fiscal equilibrium and the elimination of regulations that inhibit growth and would jump-start the economy.

Returning to spending levels experienced in 2008 would hardly impact the national security. In retrospect 2008 was a pretty good year in comparison to the past three years under the Democrat controlled Congress and the Obama administration. Unfortunately, as long as the likes of Harry Reid, Chuck Schumer, Nancy Pelosi and Barack Obama remain in a position to forestall real fiscal reform, we can only look for incurring mounting deficits and mortgaging our grandchildren future. In the interim our standard of living will be diminished for every American.

Obama’s Agends is America’s Tsunami!

By: Richard H. Frank

 Over the past four years, beginning with the Presidential Campaign for the 2008 election we have listened to both political parties proclaim that the economy and job creation was the number one priority for their administration should they be elected. The American public was forced to listen to the hollow promises of “Hope and Change” that would fundamentally change America and the world should Obama’s liberal progressive agenda be adopted. Since that time (2009) what have we endured as a nation?

  • Average retail price of gasoline has increased 100% from $1.83 in 2009 to $3.66 today.
  • Crude Oil price/barrel increased 135% and we still lack a cohesive energy policy.
  • Unemployment rate continues to hover between 9 and 10% even with the government’s alteration in the method for calculating the number.
  • Number of food stamp recipients increased by 22% and rising.
  • Number of long term underemployed 146.2% increase.
  • Government’s solution to spend our way to recovery has increased the national debt by 32.2% to reach $14.0 trillion.
  • Over 6 million homes currently in foreclosure in spite or TARP monies given to the banks to implement mortgage loan modification programs.
  • Our health care industry costs continuing the upward spiral out of control due to the liberal progressives ramming the unpopular legislation dubbed “Obama care” down the throats of Americans over their overwhelming objections.

The travesty to all of these situations is that they are the result of our Federal Government overstepping the enumerated powers defined in our Constitution. The first 5 items listed above could be immediately impacted and reversed if the Federal Government and its agencies would get out of the way of the free enterprise system and develop a comprehensive energy policy for America that does not change with every congressional and presidential election. Energy independence for America will result in establishing a free market price for oil and not that controlled by Mideast cartels.

The $816 billion that was spent on stimulus by the Administration and the 111th Congress accomplished just one thing. That was to create a 2% increase in government sector jobs; jobs which must be paid for with the sweat of those Americans working in the private sector.

Today, the announcement was made that the housing market reached its lowest level in the past 9 years. The resulting loss in equity to those seniors that have invested in their homes while raising their families in order to provide for a return after retirement find themselves facing a future without an equity nest-egg with which to supplement retirement and in many cases foreclosure as the banks refuse to respond to their request for loan modifications.

Lastly, we now are finding out what is in the “Affordable Health Care Law” forced upon every American as part of the “Hope and Change” agenda of this administration. Each and every argument set forth in opposition to this law is now proving to be true. Twenty-six states are suing the Federal Government for the law either being unconstitutional or for its violation of the 10th Amendment provision upholding States sovergnity.

The mid-term elections of 2010 expressed the will of the people against continued uncontrolled spending and limiting the size of the Federal Government. Yet, just four short months following that election, Congress and the President, act as though the election never took place and are conducting business as usual.  There are 31% of Americans that approve of the Presidents management of our economy. The remaining 69% are tired of his unending platitudes and proclamations that jobs and the economy are his number one priority and that we must stop spending when he continues to proceed without a budget for 2011 and has the nerve to present a $3.7 trillion proposal to Congress for 2012 that contains an additional $1.6 trillion deficit.

If stupidity, or doubletalk, could be considered a high crime or misdemeanor we would have cause to remove this unqualified novice from office. Unfortunately, we must rely upon the 112th Congress to keep him in check.  Many will say that we are destined for gridlock as long as Harry Reid sets the agenda in the Senate. I would gladly endure the next two years of gridlock until we can replaced Obama, Reid, Pelosi and RINOs who refuse to take the hard decisions to address the budget and unsustainable entitlements that have bankrupted this once great nation, and elect men of principle to put America on a course to true recovery.

Transparency on Display

by Jayne D. Frank

As President Obama’s favorable ratings by the American people plummet and the approval ratings for Congress are at an all time low of 11%, I read in the UK Telegraph that he is going to “vacation” again on the August 14th weekend with his family in the Gulf Coast region devastated by the oil spill disaster.  His motives could not be more “transparent” to Americans!  Trying to assuage criticism that he has not been hands-on in this disaster since Day One, he thinks that if he takes another “vacation” in this region, he will fend off further criticism and save the day for himself and the Democrats in the mid-terms.  We are not that stupid Mr. President!

First, President Obama has been away from the nation’s critical business of trying to save our economy and jobs for far too long, taking more vacations in two years than many Americans will have in a couple of decades, because they don’t have jobs or their businesses are closing!  Secondly, his love of the photo op in lieu of being our Commander-in-Chief is quite stunning.  That is all the announced August 14 trip will be.  The President will put his arms around the fisherman telling him that things are “going to be alright and that he can soon go back to work.”  He will eat a shrimp dinner at a local tavern, informing the whole world that “Gulf seafood is plentiful and is healthy to eat now.”  Mr. Obama will find a beach area that his staff has cleared of any oil balls or that never had any in the first place, and then announce that the beaches are clean.

President Obama wanted transparency in his Administration, and American citizens are quite aware of all the games and that every action he takes now is quite transparent as to his intended actions.  Oh by the way, would Mr. Obama be staying  in an ordinary hotel in Louisiana overlooking the Gulf, watching ordinary Americans clean up and watch Bobby Jindal with his shirt sleeves up working alongside the cleanup crews in the Gulf, or will he be in some palatial estate rented from a Democratic sympathizer which is tucked back and quite out of the way of distressing reminders of what Americans expect out of him?

Wake up and Recognize the Warning Signs!

by Jayne D. Frank

With every passing night, we watch the news about the European financial crises which are  intrinsically wound with the United States. We watch as N. Korea thumbs it nose at S. Korea and the United States in a new “dare ya” scenario as they kill hundreds of people, intending to instigate  something with both countries.  Americans see indications every day on the news that the Iranian leadership is laughing at the United States’ lack of will to impose stiff sanctions on them for their defiance of their promise not to become a nuclear power.

In our own country, we see the most  corrupt government that I can remember in my lifetime, continue to pass illegal legislation such as Obamacare, refuse to defend the U.S. by protecting and securing our borders.  They bad-mouth the only media in the country that tells us the truth and they are passing laws that are going to silence discourse once and for all on the internet, and through trying to enforce the fairness doctrine.  The Administration is forcing higher taxes on individuals and businesses, all in an attempt to redistribute wealth and end the free enterprise system as we know it.  This is also an attempt to make the U.S. a part of the “global economic system.”

All Americans reading this blog must wake up out of their stupor!  We are on the precipice of losing our beloved Constitutionally driven, and God-given, freedom-loving Country.  It is now almost June 1 and the very first time we have to do anything positive which will tell the Obama Administration and Congress that we do not approve of their agenda and course of action and we will not stand silent, is the 2010 elections.

It is incumbant on all conservative, freedom-loving patriots to form together with other like-minded Americans because “the squeaky wheel gets the grease,” and we must stand as ONE, speak as ONE, and try to restore our Republic as ONE!  There are dozens of great patriotic groups out there doing the work to get the people out of Congress who are not performing as their constituents have asked.  There are watchdogs groups that are watching legislation being introduced by both Houses of Congress so that we know what the Government is trying to do to us.  Many of these groups back conservative candidates and put their money behind these candidates.  All of these efforts to do one thing – restore honor and integrity to our U. S. Government and to start to push back on the socialist agenda of the Obama Administration.

If you have not joined a 912 group, Resistnet, Americans for Prosperity, Tea Party Patriots, American Solutions, or any other group that has conservative principles and values as its platform, shame on you!  Don’t be one of those people who whines about was is going wrong without doing your best to change it.  Don’t think that conservative candidates get elected without hard work from people who agree with them.  And most of all, don’t think that it won’t matter anyway in the 2010 elections and stay home!

H.R. 2454 is an Assault by our Government on American Property Rights

By Jayne D. Frank

After reading several internet reports on the effects of H.R. 2454, the Cap and Trade Bill which the House passed and which is currently in the Senate for consideration, I decided to check out some of the “red flag warnings” that I had read and digest the latest version of the bill itself.  It took me several hours to get through it, but as my stomach ached and my pulse increased with each page of reading, I could not believe what I was reading, as though I was reading of someone else’s country.  I will, further on in this article, keep my focus on the U.S. property owner, but I was stunned at the language that gives preferential monies (taxpayer) for “providing infrastructure related to the delivery of electricity and hot water for structures lacking such amenities and for energy efficiency and energy conserving…” to Puerto Rico, Guam, D.C. Northern Mariana Islands, American Samoa, Trust Territories of the Pacific.”  This to me, alone, is a complete failure of our President to protect and defend the rights of the American citizens who live in the United States, and who voted him in.  Who does this President and this Congress think they are that they can continue to spend billions of taxpayers’ money on “global policy?”

H.R. 2454 is an all-out assault on the property rights of every American, done in the name of “saving our planet.”  Not only is this bill, if passed, going to cost every American taxpayer (except of course the subsidized low income or no income households) approximately $6800 according to the CBO, but more importantly, it will completely eliminate any rights you have as an existing homeowner.  It will also affect the rights of every potential homeowner trying to buy an existing home.  There are a myriad of draconian measures in this bill that will affect every farmer, single family homeowner, apartment or investment property owner, and every commercial and small business  owner.

You must read the bill yourself, because what is intended by this legislation is that the Federal Government alone, by its many EPA and other to-be-established agencies, will have the power over the States, who will in turn have the power over you as an individual (or else they will lose funding). The following is what you can expect if this bill passes.  Keep in mind that since the majority of improvements are made via ordinances and codes for your particular local area, they will all be changed to reflect the Feds requirements under the bill:

  • If you own an existing house, you will not be able to finance anything that will make life more comfortable for your family or increase your property’s market value UNLESS it is an improvement specifically certified to be energy saving.  That new deck or driveway won’t qualify, nor that new finished basement.
  • There are granted within this bill, thousands of Federal and local ENFORCEMENT dollars, and you can expect such code enforcement people to show up at your door, within a year or two after the law has passed, to see if you comply with existing green energy codes.
  • If you are given a second or modification mortgage as an existing homeowner, you will only be given those mortgages if and when you comply with all Federal codes relating to compliance with the new green energy regulations (increased insulation, replacement windows, doors, roof materials, power sources – every structural and mechanical part of your house must comply)
  • If you live in an existing mobile home completed after 1976, you are subject to the same regulations regarding energy efficiency standards as is the person in a stick-built house.
  • If you have a natural disaster, you will only be able to rebuild if you rebuild according to the prescribed regulations
  • Mostly silent, but undisputed, is the fact that if you want to sell your house, you must have upgraded all of your mechanical and structural elements to the new code in order to be able to be certified by an appraiser as “complying.”  Never mind that when the majority of people sell their house today, they need to downsize, they can’t afford their mortgages anymore, they have lost their jobs, or they are just retiring.  None of these situations suggest that people have money to burn let alone have thousands to put into their houses before they can get out of them!
  • H.R. 2454 also devotes many pages of the bill to talking about “trees” being a natural solution or replacement for cooling houses in that they provide shade and give off oxygen.  Isn’t this just a precursor for taking away our air conditioners and mandating that people who prefer to live in a sunny location plant trees around their property?

This legislation calls for “Green Banking Centers” to be established in every FDIC bank and credit union which must comply with the strict regulations in this bill that will either deny people who aren’t going to use money for making “green” improvements or won’t give mortgages to new buyers who want to buy an existing home that doesn’t have a proper “compliance label” on it as set by the Government. At least 10% of any mortgage amount obtained by a borrower must be in the area of “green improvements” or the “green” portion of the house.

This portion of H.R. 2454 gives “the Secretary of HUD superiority of rights over …. rights of any other person with respect to property…,” a clear violation of American’s property rights.

I found it also interesting that included in the bill is language that commands a yearly review of the “effect of this bill on older structure cities…with limited space for new housing.”  Is it Obama and Congress’ intent to eventually level our historic areas and cities to make way for only green housing?

The lack of attention being paid by Americans and the Media to this pending legislation is frightening; it is as costly and detrimental to the American way of life, or more so, than was the healthcare legislation.  It is in the interests of every citizen to keep tracking this legislation, and by all means, protest loudly and boldly in communications with your Senators, in blogs, in newspapers, in meetings and everywhere that your voice can be heard.