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Wednesday, November 30, 2011

Once You Go Conservative Black, You Better Watch Your Back

by Ann Coulter

With the mainstream media giddily reporting on an alleged affair involving Republican presidential candidate Herman Cain, how long can it be before they break the news that their 2004 vice presidential candidate conceived a "love child" with his mistress, Rielle Hunter?

The left is trying to destroy Cain with a miasma of hazy accusations leveled by three troubled women. Considered individually, the accusations are utterly unbelievable. They are even less credible taken together. This is how liberals destroy a man, out of nothing.

After the first round of baseless accusations against Cain, an endless stream of pundits rolled out the cliche -- as if it were the height of originality -- "This isn't he said-she said; it's he-said, she-said, she-said, she-said, she–said."

Au contraire: We had two "shes" and only one "said."

Remember? Only two women were willing to give their names. And as soon as they did, we discovered that they were highly suspicious accusers with nothing more than their personal honor to support the allegations. Only one of the two would even say what Cain allegedly did.

The first one was Sharon Bialek, who claimed that Cain grabbed her crotch in a car.

Then we found out Bialek was in constant financial trouble, had been involved in a paternity lawsuit, was known as a "gold digger," had a string of debts and had twice filed for personal bankruptcy. Also, she admitted she knew Obama's dirty tricks specialist, David Axelrod, from living in the same building with him.

Her personal history is relevant because she produced no evidence. We had to take her word. (Which was not helped by seeing her standing with Gloria Allred.)

The second one, Karen Kraushaar, made unspecified allegations of a "hostile environment" when she was working for Cain, but refuses to say what those allegations were. This despite the fact that the National Restaurant Association waived her confidentiality agreement, thus allowing her to go public.

Read the full column

Paul Ryan & Chris Van Hollen Advance Bipartisan Budget Reform


Newt Gingrich: Serial Hypocrisy

New Ron Paul ad

Poll: Gingrich opens big lead in Florida

This is another surprise to me. I remember seeing Gingrich insult Paul Ryan's budget plan on Meet the Press a few days after he declared his run for POTUS and I thought, "Well, his candidacy was short." So, as I watch him rise, it is very surprising to see. - Reggie

Newt Gingrich holds a 24-point lead in Florida over his closest competitor for the Republican presidential nomination, according to a survey of likely GOP primary voters released Wednesday.

Gingrich took 41 percent of the support in a Florida Times-Union poll, followed by Mitt Romney with 17 percent, Herman Cain with 13 percent, Rick Perry with 7 percent, Ron Paul with 4 percent, Michele Bachmann with 3 percent and Rick Santorum with 1 percent.

“I have not seen a lead this large, this late in a Republican presidential primary season since I have been polling," InsiderAdvantage pollster Matt Towery told the Times-Union. "Newt Gingrich is winning nearly 50% of the independent vote, but more importantly, the Republican vote which makes up the vast majority of the Florida Republican primary."


And there is this shocker...

A Philadelphia Schools Failure

With political decisions like these, is there any question as to why we are $15 trillion in debt? - Reggie

Fox Business Network’s Stuart Varney sounds off on the departure of Philadelphia Schools Superintendent Arlene Ackerman.

U.S. Seals Court Records Of Border Patrol’s Murder

Last Updated: Wed, 11/30/2011 - 4:15pm

The Obama Administration has abruptly sealed court records containing alarming details of how Mexican drug smugglers murdered a U.S. Border patrol agent with a gun connected to a failed federal experiment that allowed firearms to be smuggled into Mexico.

This means information will now be kept from the public as well as the media. Could this be a cover-up on the part of the “most transparent” administration in history? After all, the rifle used to kill the federal agent (Brian Terry) last December in Arizona’s Peck Canyon was part of the now infamous Operation Fast and Furious. Conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the disastrous scheme allowed guns to be smuggled into Mexico so they could eventually be traced to drug cartels.

Instead, federal law enforcement officers lost track of more than 1,000 guns which have been used in numerous crimes. In Terry’s case, five illegal immigrants armed with at least two semi-automatic assault rifles were hunting for U.S. Border Patrol agents near a desert watering hole just north of the Arizona-Mexico border when a firefight erupted and Terry got hit.

Cain: Family Is 'My No. 1 Priority'

Herman Cain was interviewed by Neil Cavuto earlier today



Senator Mike Lee (R-UT) Argues Against Indefinite Detention of Detained American Citizens

Are you paying attention to what our U.S. Senate is doing? Several Senators are trying to take away our liberty. Surprised? - Reggie


Tuesday, November 29, 2011

Secret Loans from Federal Reserve

Our nation is being sabotaged and destroyed by our institutions, politicians and court system. I'm getting more and more discouraged about our country's condition. The corruption is deep and endless.

Whatever happened to love of country and doing everything possible to make sure the nation's interests were paramount in decisions made by our leaders? Darkness is enveloping our nation. Where is the light that was once within We the People? - Reggie

Glenn Beck Evaluates the GOP Candidates

GBTV host Glenn Beck takes a look at the 2012 GOP race and determines it to be a battle of the big government Republicans

from earlier this evening

Does Obama Know the Difference between Great Britain and England?

It is gratifying to see President Barack Obama condemn the disgraceful storming of the British Embassy in Tehran by thugs acting at the behest of the Iranian regime. After all, Obama has been notoriously slow in the past to criticise the brutal actions of the Iranian government after initially extending the hand of friendship to it. But did he really need to make another embarrassing foreign policy gaffe while doing so?

In a press conference this evening, the president referred in stumbling fashion to the “English Embassy” in Iran instead of the British Embassy. One can only imagine the kind of howls of derision that would greet any presidential contender if that kind of basic error were made before, say, the editorial board of the Milwaukee Journal Sentinel. You can watch the video above.

In case the president is unaware, England forms part of Great Britain, which also includes Scotland and Wales, though not Northern Ireland, which is part of the United Kingdom. There is no such thing as an “English” embassy anywhere in the world, and there hasn’t been one for several centuries.



Congresswoman Michele Bachmann with Glenn Beck

Glenn Beck has recently told his audience that Michele Bachmann is his pick for the GOP nominee.

Interview, below, is from earlier this evening - Reggie

Sen. Marco Rubio Talks Presidential Race

Bret Baier's interview with Florida lawmaker

Romney Laying Groundwork in Florida

Evidently, this is Romney's appearance in 'The Center Seat' segment Special Report has been doing with every candidate. See the tweets below.

@BradThor Disappointed that @Bret_Baier gave #Romney special treatment & didn't insist he sit 4 actual center seat panel like all other GOP candidates




Bret Baier interviews GOP candidate in Miami


UPDATE: November 30, 2011. Bret Baier was interviewed on The O'Reilly Factor about his Romney interview last night. Well, it seems that Mitt is in a tiff about the way the interview went. I'm telling you, Romney is Obama lite. Both are narcissistic, both are power hungry, both believe government has all of the answers and both are Progressives.  

Romney must be rejected. - Reggie

Newt Gingrich on The O'Reilly Factor

from last night

Big Labor Drags American Airlines into Bankruptcy

American Airlines announced today that it has filed for Chapter 11 bankruptcy protection, making it the final large U.S. full-fare airline to seek court protection from creditors. One of the primary reasons? American is at a disadvantage because of high labor costs, proving that in a competitive economy, unions can’t do much for their members without sending companies into bankruptcy.

American had struggled after 9/11 to avoid heading to bankruptcy as its rivals did in the hopes of securing favorable contract agreements with labor unions. The unions though, had other ideas. Among their demands: Pilots wanted a 10 percent signing bonus followed by 7 percent raises in each of the next three years–massive raises in the midst of a miserable economy.

Meanwhile, Delta, United, and US Airways are all operating with huge concessions on wages, benefits and work rules for pilots, flight attendants, mechanics and ground workers won through bankruptcy proceedings, as The Wall Street Journal reports.

In the most recent negotiations, American offered job protection, signing bonuses, and pay raises to the tune of a 3.21 percent raise in the first year—taken as a lump sum, a structural rate increase, or a combination—followed by three annual boosts of 1 percent each. In turn, American asked for changes to pension benefits and increased productivity. But that wasn’t enough. As Bloomberg reports, union negotiators sought not to help keep the company afloat but to win back earlier concessions:
American was embroiled in negotiations with unions for all of its major work groups as far back as 2006, seeking to boost employee productivity and erase part of what it said was an $800 million labor-cost disadvantage to other carriers.
The airline’s pilots, flight attendants, mechanics and baggage handlers wanted to use the contract talks to regain some of the $1.6 billion in annual concessions they gave in 2003 to help the company avoid bankruptcy.

Monday, November 28, 2011

Ron Paul on Freedom Watch


The Challenge

Below is the new ad from Palin supporters begging her to run in 2012. These people need to move on with their lives and forget about Palin running. They are only upsetting and disappointing themselves as it is obvious Sarah Palin has made her choice. Honor her decision. - Reggie

Woman says she and Cain had 13-year affair; Cain denies accusation

Honestly, either Herman Cain is a serial adulterer or someone is doing everything possible to eliminate him from the GOP primary race. I can't decide which is true. - Reggie

Atlanta, Georgia (CNN) -- An Atlanta businesswoman has accused GOP presidential hopeful Herman Cain of having had an affair with her that lasted nearly 14 years.

"I was aware that he was married, and I was also aware that I was involved in a very inappropriate situation -- relationship," Ginger White told Atlanta television station WAGA.

The candidate upstaged his accuser's announcement, telling CNN a few minutes before the station broadcast an interview with White that her assertion was coming and would be false.

"It is someone that I know who is an acquaintance that I thought was a friend," Cain said on CNN's "Situation Room." But he added, "I did not have an affair."

"I acknowledge that I knew the woman," he said. "I acknowledge that I have known her for about that period of time. But the accusation that I had an a 13-year affair with her, no."
He said his wife's immediate reaction upon hearing of the accusation was, "Here we go again." And he said he had no plans to drop out of the race -- "Not as long as my wife is behind me and as long as my wife believes I should stay in this race."

Freedom Watch Constitution Special

Senator Mike Lee joins the Judge

Democrats Punt on Fiscal Responsibility

The following timeline was  sent out by the GOP Budget Committee press office:

January 25 – In his State of the Union address, President Obama proposes freezing “annual domestic spending for the next five years.” This freeze would lock in elevated spending levels (24 percent non-defense discretionary, not including stimulus) and produce an estimated $3.8 trillion in deficits over the period in question. Subsequent analysis revealed that, because the White House shifted and hid new spending, non-defense discretionary spending would actually increase even further next year.
February 14 – President Obama proposes a budget with $8.7 trillion in new spending (CBO’s re-estimate actually finds $9.6 trillion in new spending).
February 15 – The House of Representatives begins debate on a bill that would cut spending by $61 billion. President Obama promptly issues a veto threat.
April 11 – Press Secretary Jay Carney: “We should move quickly to raise the debt limit and we support a clean piece of legislation to do that.”
April 13 – President Obama delivers a speech where he lays out a “framework” that he claims will lead to $4 trillion in deficit reduction over the next 10–12 years. In reality, using OMB’s own numbers, deficits under the “framework” are $3.2 trillion higher than the president’s own fiscal commission.
April 15 – The Republican-controlled House of Representatives passes its budget, which cuts $6 trillion in comparison to the President’s budget.
April 19 – S&P assigns a negative outlook to the U.S. credit rating, signaling at least a one-in-three likelihood that the agency will lower the nation’s long-term rating.
May 1 – Total federal spending since President Obama took office reaches approximately $8 trillion.
May 11 – Austan Goolsbee, chair of the president’s Council of Economic Advisers, says it is “quite insane” to tie spending cuts to the debt limit increase.
May 17 – Chairman Conrad continues to delay the unveiling of his latest secret budget, announcingthat “I’ll say something later — not today, probably… There are a lot of conversations under way.”
May 18 – Majority Leader Reid says it would be “foolish” for Senate Democrats to offer a budget.
May 19 – Chairman Conrad announces he will not reveal a budget to the public until after the Gang of Six produces a proposal.
May 25 – The Senate rejects President Obama’s budget by a vote of 0-97.
May 23 – Senator Schumer, when asked why there is no alternative to the House-passed budget, answers, “To put other budgets out there is not the point.”
May 26 – GOP Senators join Ranking Member Sessions in asking Reid not to break for the Memorial Day recess until Senate Democrats bring forward a budget so the Senate can fulfill its duty.
June 7 – Even some Senate Democrats become anxious about their party’s lack of a budget.
June 29 – Chairman Conrad tells Politico, “Senate Democrats have reached an agreement on a plan — just now — and we’ll be putting that out sometime soon.” (Note: the plan was never made public, but a leaked outline revealed that it contained as many as $2 in tax hikes for $1 in spending cuts.)
June 29 – Sessions renews call for the Senate to remain in town to deal with its budget and debt ceiling work.
July 1 – Sessions and Finance Committee Ranking Member Orrin Hatch ask the president to reveal, in detail, what his deficit reduction plans actually are. No response is received, and the president’s February budget remains the only plan he has ever put on paper (thus the only plan that can be estimated by CBO) and shared with Congress or the American people.
July 8 – On the 800th day since Senate Democrats passed a budget, the unemployment rate rises to 9.2 percent (the third straight month above 9 percent).
July 19 – Amid continuing calls for the president to reveal what spending cuts he actually supports, Carney says that “leadership is not proposing a plan for the sake of having it voted up or down…”
July 22 – At a press conference discussing his position on negotiating a debt limit increase, President Obama declares, “The only bottom line that I have is that we have to extend this debt ceiling through the next election, into 2013.”
August 2 – Following passage of the debt limit increase package in the Senate, President Obama callsfor America to “live within our means” immediately before advocating a further increase in government spending, framed, as usual, as “investments.”
August 3 – Government borrowing tops 100 percent of GDP as the U.S. accumulates $4 trillion in gross debt under President Obama, well above the 90-percent threshold identified by economists Rogoff and Reinhart as when debt harms economic growth and brings down job creation.
August 5 – S&P downgrades the U.S.’ credit rating from AAA, the first time the nation has had less than the top rating since receiving it in 1917.

September 8– Shortly after the passage of the debt limit deal and the spending cuts that went with it, President Obama announcesa second stimulus bill that would cost $447 billion. CBO later admitsthat stimulus spending depresses long-term economic growth.

September 18– President Obama unveilsa deficit reduction plan that he claims will reduce deficits by $3 trillion through a combination of tax increases, war savings, and other spending cuts. But a Budget Committee analysis reveals that, thanks to a number of budget gimmicks, the plan would reduce deficits by only $1.4 trillion and would rely entirelyon tax increases.

October 14– 900 days pass since Senate Democrats last offered a budget plan.

November 7– The Congressional Budget Office reportsthat total federal spending increased in Fiscal Year 2011 by $145 billion over the previous year’s level.

November 9– House Minority Leader Nancy Pelosi claims that Democrats didn’t pass a budget when they controlled both chambers of Congress because “Republicans would have filibustered it,” but as she should know, budget resolutions can’t be filibustered.

November 11– As the supercommittee continues its tense negotiations, President Obama departsfor a nine-day trip to Bali, Indonesia, and Australia.

November 13– Supercommittee member James Clyburn, the House Assistant Democratic Leader,saysthat a draft Democrat proposal has been outlined. A Budget Committee analysisestimatesthis outlined proposal to contain a dramatic tax increase-to-spending cut ratio of 4:1.

November 16– On the 931st day since Senate Democrats offered a budget, the U.S. gross national debt tops $15 trillion.

November 18– In search of common ground, Republican Sen. Pat Toomey puts forwarda draft proposal with both spending cuts and tax revenue. Democrats summarily rejectthe offer.

November 21– New York City Mayor Michael Bloomberg chides President Obama, saying that “It’s the Chief Executive’s job to bring people together & provide leadership. I don’t see that happening [with the] #SuperCommittee”

November 22– President Obama places multiple calls, over the course of the month, to European leaders regarding their countries’ debt problems. Meanwhile, Jay Carney saysit was “absolutely not” a problem for “him not to have been as involved” with the supercommittee negotiations.

Why Wisconsin’s labor fight is crucial

By Fred Siegel

Fred Siegel is a senior fellow of the Manhattan Institute’s Center for State and Local Leadership and a scholar in residence at St. Francis College, Brooklyn. He is the author of The Prince of the City: Giuliani, New York and the Genius of American Life (Encounter Books)

Gov. Walker is in the national vanguard fighting to reverse destructive union gains.

When tens of thousands of angry, energized demonstrators gathered in Madison in early February to protest newly elected Gov. Scott Walker’s legislation to roll back the power of public sector unions, the national reaction was surprise at the intensity of the conflict.

But the hostilities had been building in Wisconsin ever since Walker was elected as Milwaukee County executive in 2002 in the wake of the county’s pension scandal, and nationally at least since the mid-1990s, when John Sweeney, leader of the Service Employees International Union, became the president of the AFL-CIO. That was the first time that the national labor federation was led by someone who largely represented government workers and not those in the private sector.

It was a momentous development yet was barely covered in the press. Sweeney’s ascendency transformed not only the labor movement and, through it, the Democratic Party, but in 2008, with the election of Barak Obama as president, it reshaped the very nature of American politics. The confrontation in Madison was the distillation of those changes.

The public’s surprise wasn’t due to inattentive citizens failing in their civic duties. In the past 20 years, the political power of unions has expanded as the number of American union members declined. That’s, in part, because the rising force of public sector unions has been somewhat obscured by the decline in private sector unionists, who are now a minority of organized labor.

The power of government unions raised a new set of issues that, until Madison, were rarely debated. Rather, these momentous changes had been virtually ignored by academics and journalists. And when they might have come to public awareness during the 2008 presidential campaign, the press was too enamored of candidate Obama and too hostile to outgoing President George W. Bush to treat with import the Illinois senator’s deep connections to SEIU.

When Sweeney assumed the AFL-CIO presidency in 1995, it closed the breach in left liberal ranks opened in 1972 when organized labor, then led by George Meany, a former plumber, refused to back the presidential candidacy of George McGovern. Meany and McGovern were at odds over everything from cultural issues to the Cold War.

But Jerry Wurf, head of the American Federation of State, County and Municipal Employees, which had its origins in Wisconsin, seized the opening to become a key player in McGovern’s 1972 presidential campaign. Public employees have had a growing role in Democratic Party politics ever since. McGovern was trounced by Nixon, but the McGovernites and their public sector allies came to dominate the Democratic Party.

Richmond City Audits Local Tea Party After Standoff with Mayor

Tyranny is not only being practiced by our federal government. It has moved all the way down to our city governments. Surprised? - Reggie

Two weeks after the Richmond Tea Party delivered an invoice to Richmond Mayor Dwight Jones for costs incurred for previous rallies, we received a letter from the City of Richmond formally stating that the city is auditing our Tea Party. Coincidence? This audit is an obvious attempt to intimidate and harass us for standing up against the unfair treatment and discrimination against our Tea Party.

First some back story: as reported on the front page of the Richmond Times Dispatch, the Richmond Tea Party delivered an invoice for charges incurred in our previous three Tax Day rallies at Kanawha Plaza because Mayor Jones chose to allow Occupy Richmond protesters to convene in the same park for two weeks.

The Mayor not only allowed the Occupiers to break the law, but he visited them in the city-owned park. “Jones said that as a ‘child of civil rights’ and protests, he had allowed the group to remain in the park but understands his mayoral responsibility to uphold laws of the city,” reported the Richmond Times Dispatch.

Apparently his mayoral duties included preferential treatment for a group he sympathizes with ideologically at the expense of the taxpayers.

The blog Virginia Right reported that the city provided services such as portable toilets, trash pickup, etc. The incomplete invoices obtained from the city totaled $7,000. This was only a portion of the actual costs to taxpayers because the costs of police, helicopter and incarcerations were not included. Also not accounted for was the 24-hour police protection of the Mayor’s home after the Occupiers moved their camp next door to the Mayor’s house. The Richmond Tea Party, conversely, paid for all services for our rallies, including the police, portable toilets, park fees and permits, amounting to approximately $8,500.

Our actions apparently struck a nerve. Our invoice to the Mayor was covered by hundreds of news outlets, including the AP, Richmond Times Dispatch, Baltimore Sun, and the Washington Post. On October 31, I appeared on Fox Business, Neil Cavuto’s show, and was interviewed about our actions. Reportedly, at least two Richmond City Council members agreed with our plight. “I guess we’ll be writing a check to the Tea Party people,” said Councilman Bruce W. Tyler, as quoted in the Richmond Times Dispatch. “You can’t treat one group different from the other. It’s unfair.” 

Sunday, November 27, 2011

Union Leader Publisher Discusses Endorsement of Newt Gingrich

Joseph McQuaid, publisher of the New Hampshire Union Leader, was interviewed this morning concerning the endorsement of Newt Gingrich for President of the United States in 2012.



Video below is from November 21st when Newt Gingrich was interviewed by the editorial board of the Union Leader.

ClimateGate II: BBC sought advice from global warming scientists on economy, drama, music... and even game shows

Britain’s leading green activist research centre spent £15,000 on seminars for top BBC executives in an apparent bid to block climate change sceptics from the airwaves, a vast new cache of leaked ‘Climategate’ emails has revealed.

The emails – part of a trove of more than 5,200 messages that appear to have been stolen from computers at the University of East Anglia – shed light for the first time on an incestuous web of interlocking relationships between BBC journalists and the university’s scientists, which goes back more than a decade.

They show that University staff vetted BBC scripts, used their contacts at the Corporation to stop sceptics being interviewed and were consulted about how the broadcaster should alter its programme output.

Like the first ‘Climategate’ leaks two years ago, they were placed last week on a Russian server by an anonymous source.

Again like their predecessors, they have emerged just before a United Nations climate summit, which is to start this week in Durban.

BBC insiders say the close links between the Corporation and the UEA’s two climate science departments, the Climatic Research Unit (CRU) and the Tyndall Centre for Climate Research, have had a significant impact on its coverage.

‘Following their lead has meant the whole thrust and tone of BBC reporting has been that the science is settled, and that there is no need for debate,’ one journalist said. ‘If you disagree, you’re branded a loony.’

In 2007, the BBC issued a formal editorial policy document, stating that ‘the weight of evidence no longer justifies equal space being given to the opponents of the consensus’ – the view that the world faces catastrophe because of man-made carbon dioxide emissions.

The document says the policy was decided after ‘a high-level seminar with some of the best scientific experts’ – including those from UEA.

The ‘Climategate 2’ emails disclose that in private some of those same scientists have had doubts about aspects of the global warming case.

NPR: New Hampshire Takes Another Look At Ron Paul

Ron Paul has my full support.  Every other candidate offers more of the same on almost every issue accept Romney, because I can't figure out what he believes.  It would be good for all voters to examine Paul's views and compare them with what the law of the land, our constitution, says.  We need to return to a constitutional form of government and Ron Paul is the only one willing to do it.

- Michael  


In this presidential cycle, as in the last, there is no question which Republican
candidate has the most ardent supporters: Ron Paul, the 76-year-old Texas congressman whose brand of libertarianism often puts him at odds with all of his rivals. But with less than seven weeks to go for the nation's first primary, there are signs that Paul could surprise people.
Former Massachusetts Gov. Mitt Romney is sitting pretty in New Hampshire, where he has been the front-runner all year, so whoever comes in second in the Granite State isn't doing too shabbily.
"I could very well see Ron Paul coming in second place," said longtime pollster Andy Smith, who runs the University of New Hampshire Survey Center.
Smith's numbers last week show Paul in third with 12 percent, up from just a month ago. Other alternatives to Romney have risen to double digits only to fall back again, but Smith says Paul has some key advantages.

Read More>>

'The New Tammany Hall'

The historian of the American city on what Wall Street and the 'Occupy' movement have in common, and how government unions came to dominate state and local politics.

'What has the country so angry," says Fred Siegel, "is the sense that crony capitalism has produced a population that lives off the rest of us without contributing. They're right. It's not paranoid."

The economic historian of the American city has spent a lot of this autumn on Wall Street. He met many of the protesters who camped out at Zuccotti Park, before the city's finest cleared them out last week. He also knows the bankers and finds the theater of the Occupy movement ironic.

"They're on the same side of the street politically," he says. "They're both in favor of big government. The Wall Street people I talk to, they get it completely." What he means is that the Bush and Obama administrations bailed out the large banks, and that economic stimulus and near-zero interest rates kept them flush. "Obama's crony capitalism has been very good for New York's crony capitalism," he says. Over at Zuccotti Park, "there are a few people there who do get it, but very little of their animosity follows from this."

One can appreciate why the "we are the 99%" militants might resist Mr. Siegel's logic. He links the liberalism of the 1960s, not any excess of the free market, to today's crisis. The Great Society put the state on growth hormones. Less widely appreciated, the era gave birth to a powerful new political force, the public-sector union. For the first time in American history there was an interest dedicated wholly to lobbying for a larger government and the taxes and debt to pay for it.

A former editor of the left-leaning Dissent magazine, Mr. Siegel has written several well-received books on New York, including the 1997 "The Future Once Happened Here." He calls his hometown "the model for cross subsidies" in America. "Wall Street makes money off the bonds that have to be floated to pay the public sector workers in New York."

Thanks to union clout, he notes, salaries and benefits for teachers, bus drivers and city secretaries have outgained the private sector during this sluggish economy. "Spending is never ratcheted down. It's unconnected to productivity. That can only be sustained by a boom or these extraordinary subsidies we're getting now from the Federal Reserve. But that's gonna stop at some point. And then what happens?"

Other countries have managed to find a way out. During its own "lost decade" after 1993, Canada shaped up its finances and it has weathered the latest economic crises well. New Zealand's Roger Douglas in the 1980s and Germany's Gerhard Schröder in the early 2000s cut into expensive welfare states. In all these cases, Mr. Siegel notes, center-left parties carried out painful reform. "They did this out of necessity." Sooner or later, American politicians will face the "unavoidable" reckoning, he adds. "It's not the mean tea partiers who force this. It's the facts on the ground."

And the ground may already be moving. Many American localities are already at the crisis point. Rhode Island's legislature last week sharply cut retirement benefits for current and retired public workers. "A 300% Democratic state!" marvels Mr. Siegel, who was one of the first to sound the warning on the public pensions crisis.

While new Democratic Governors Dan Malloy of Connecticut and New York's Andrew Cuomo are tinkering with reforms, Mr. Siegel calls them "cosmetic" and argues that both men "are playing for time [and] counting on a recovery, which will solve their problems for them." California's Jerry Brown has dealt with his budget shortfalls by pushing the costs down to cities and counties. New Jersey governors used the same tactic before Republican Chris Christie came in. He has been able to persuade enough local Democratic politicians sensitive to the budget problem to win some concessions.

In Mr. Siegel's estimation, only Wisconsin Gov. Scott Walker has tried the needed fix after last year's elections. "Part of the reason Walker has become such a lightning rod" is that he pushed "straight up, unambiguous structural reform." His move to restrict collective bargaining for state employees isn't as important, says Mr. Siegel, as ending the requirement that state workers pay union dues. On his first day in the governor's mansion in 2005, Indiana's Mitch Daniels also stopped deducting dues automatically; most workers chose not to pay. "The union has a guaranteed flow of income, which they then use to lobby the government," says Mr. Siegel. This reform, he adds, "evens the playing field."

Fed Warns Unemployment May Double Great Depression

I warned last week that a recession and higher unemployment were about to hit the U.S. economy. On Tuesday, the Bureau of Economic Analysis cut their estimate of growth in the third quarter ending September from 2.5% to 2%. Then on Wednesday, the Federal Reserve rocked financial markets by forcing America’s 31 largest U.S. banks to “stress test” balance sheets to determine their capability to withstand an 8% drop in the economy; which would cause home prices to plunge by 21%, and unemployment rate to jump to 13%.

I illuminated in my report that U.S. Bureau of Labor Statistics has been under-counting unemployment by at least 2%. For a nation reporting 154.4 million workers; this means the 13.9 million reportedly unemployed should actually be 17 million. Given only 12.8 million were unemployed at the 1933 peak of the Great Depression, when the undercounting and the Fed’s stress test are added the total is 23.2 million unemployed; almost double the Great Depression.


Formerly bullish top bank analyst Dick Bove in an Bloomberg interview commented on the Fed:

“By taking these draconian views of what could happen in the market, if they in fact force the banks to defense themselves against the outlook that they’ve put up, they’ll cause a recession,”

Consistent with my prediction that the booming production of capital goods would fall hard next year after the expiration of the 100% “bonus depreciation” tax credit; the bad news parade picked up steam this week with reports that U.S. durable goods orders fell 0.7 percent last month and initial jobless claims came in higher than Wall Street analyst’s predictions.