Law, The Rule of Law, Property rights, and Why the Obama administration’s take over of Auto and financial industry (soon health care) is wrong and amounts to seizing our liberties

May 21, 2009

Every civilized society has it own sets of law. These sets of laws vary from country to country depending on cultural and religious beliefs. But there are a lot of similarities than cannot be avoided. For example, murder and theft are defined the same no matter what country’s law defines these crimes. But there are also subtle differences in defining some crimes like rape or racism.

 But the major difference is the application of such laws and that is where the rule of law comes in. Rule of law is defined as an idea that the laws set by the state should be equally applied and without discretionary intervention. And this difference in the rule of law is what separates the prosperous and poor societies. Think about the rich nations of North America, Europe, and the Pacific Rim and compare these nations per capita income against nations in Africa, Southeast Asia, and Central and South America . The contrast is astronomical. To put that in numbers the US per capita income in 2000 is $34100 annually while 30 countries have under $365 per capita income per year.

Now look at the governing style or the “rule of law” of those poor countries. Most are under the brutal fists of a dictator or a monarchy that control every aspect of both public and private enterprises. The governing class hoards the wealth and political power of the country and not allowing the public to own “property”, every piece of the country is owned by a small group or an individual. They become rich beyond imagination but the citizens under its control are given tokens and scraps disguised as free education, free healthcare, free everything. Despite all the “free” things that the citizens get, they are still poor as dirt.

Why does property ownership crucial in creating wealth for all? The right of owning a property establishes private and exclusive rights in resources. It is the law that protects this right and it is the rule of law that ensures that everyone has the same exact right to legally own whatever and how much they can legally own. Property is the same as ownership. If one owns a piece of land or any piece of anything, one can exclude others from interfering. If one has control on what one produces and has control on the fruits of one’s labor, the effort is always maximize. One can choose to improve his property, share it, sell it, or just leave it as it is.

What does that sound to you? It sounds like LIBERTY to me.

How does any of this have to do with what is going on in the country right now?

Well, we all know by now that the Obama administration has taken control of the financial institutions and auto industry through mob tactics, loan them the money then dictate and break their legs if they do not comply. Not exactly break their legs but the administration is using the TARP or bailout money to strong arm stakeholders in these companies to make concessions. These concessions are against the “rule of law” that governs the bankruptcy procedures as in the case of Chrysler bondholders.

 With the power of his office, Obama has taken control of these industries. We all now heard that auto industry will be making certain type of cars conforming to certain level of emissions and fuel efficiency. The American auto industry has claimed that this will only work if ALL auto makers are subject to the same standard. Import car makers will be forced to follow these new directives if they want to sell their products in the US . Do you think the government of these foreign auto makers will just follow? I doubt that. I strongly believe that there will be some trade retaliation for this. Either by imposing tariffs on US goods entering their country or limiting the amount of their products entering the US . In other words, a trade war that this weak economy cannot survive.

On the political spectrum, this is a move for Obama, the Democrats, and the UAW to take total control of the auto manufacturing in the US . Many foreign auto makers have manufacturing facilities in the US employing hundreds of thousands of Americans and most of them are not UAW members. Is it feasible that these foreign automakers scale back or totally stop their manufacturing facilities in the US ? You can go all in on this one, baby! When this happens, what would be the fate of those workers employed by the foreign auto makers?

 Another scenario is that future investors might be unwilling to invest (buy bonds or stocks) in companies that took TARP or bailout money for fear of losing their investments if those companies go bankrupt. If no one would invest in those companies, how are these companies going to raise capital for expansion? What another round of bailout? Without expansion no growth and without growth no wealth creation and everybody is poorer.

But someone will get richer from all of this. Who are they? The rich folks who own these companies and the politicians in their pockets will hoard all. They will hold all the power just like in poor countries of Africa, South and Central America, and Southeast Asia . They will be the ruling class and Obama as their king.

The health care reform is looming in the horizon. This is another takeover ploy by the Obama administration. If this go through, the government then will have the power to decide who gets well, who will be treated, who will not get the treatment, the when and how. Just wait and see.

Property is synonymous with liberty. We all own something, be it material in nature or non-material. We own material things like a home, car, piece of land, jewelry, stocks, money, and other things. We own non-material things like our thoughts, our God given talents and skills, our health.

Look at what is happening. What has the government taken over right now and tell me that the government is not taking your liberties away?


Just like how the mob takes control, the administration does it the same way

May 17, 2009

We all know by now the amount of bailout money that is going down the bottomless bucket is staggering. We also know that the deficit is going to be more astronomically high that will be shouldered by future generations to come.

 

But there is a pattern to all these bailout madness. Once you sit and examine this patterns you will be convinced that these bailouts are nothing more than traps that will expand the power of government and will lead this country to socialism.

 

The pattern goes like this:

 

–          A group of companies in an industry that is in financial trouble will be deemed ‘too big to fail’ and it is usually tied to a political issue that “needs fixing” or a political ally that needs to be protected

–          Bailouts will be sold to the public as the saving grace of these companies and the jobs that are involve

–          The companies will either take or be forced to take these bailout money but are still failing even after the bailout money was exhausted

–          The political issue that “needs fixing” or political ally that needs protection will then be revealed and the bailout will be used as leverage to force the acceptance of fix and change

 

The Auto Industry

 

The automobile industry was in trouble way before this economic crisis came about. For years they have been losing market share and the economic crisis greased the downhill slide even more. We were all told that the American automakers are too big to fail. Hundreds of thousands of jobs are on the line so a bailout is just the solution. After an estimated $130 billion of tax payers money, GM and Chrysler, the two out of three that took the bailout money, are not saved from failing. As this is being written, Chrysler is officially in bankruptcy and GM is on the verge of bankruptcy.

 

Chrysler is closing a total of 5 plants and cancelling 787 dealerships across the country affecting hundreds of thousands of jobs. Then Chrysler will be sold to Fiat for good measure. Despite of the billions of dollars in bailout money, Chrysler failed, jobs lost, and the once part of the American Auto Big Three is now a foreign owned company. The bailout failed miserably.

 

GM is on the verge of bankruptcy. Just like Chrysler, it received billions of dollars in bailout. It is reported that GM will be closing a number of plants and lay off thousands of workers. Meanwhile, GM is building plants in Brazil .

 

What are the implications?

 

We all know that the UAW is in the tank with the Democrats every election and in the tank with Obama last presidential election. It was reported that during the bankruptcy negotiations, some investors were “strong armed” by the Obama administration to accepting the deal. The deal left the workers of Chrysler and GM out on the limb, the thousands of dealerships and the people they employ are SOL, and the bond holders of Chrysler and GM are left taking the massive loss. Meanwhile, the UAW has gained 55% ownership of Chrysler and may own a majority share of GM as well after GM goes thru the same bankruptcy procedure.

 

Another group in the tank with Democrats and Obama is the environmentalist group. To “pay off’ this group, the Auto industry must be reduced to making “green” cars. The only way that can happen is if the Democrats and Obama control the Auto makers. Just like Chrysler investors being strong armed, the government can now dictate what cars Chrysler and GM can make.

 

 

The Financial Industry

 

Just like the US Auto industry, it has taken a financial crisis to bring the financial industries problem to the forefront. Just like the auto industry the financial industry took an unprecedented amount of tax payers’ money as bailout. The reasons and results are quite similar, too big to fail and the economy is still in shambles. Even after the bailout, the financial institutions thousands were laid off and more bailout money could be needed.

 

What are the implications?

 

As I pointed out numerous times before, the financial industry contributed large amounts of money into the coffers of the Democrats and Obama. During the last presidential election, the financial companies that received bailout money contributed over $14 million to Obama. The bailout money was their payment for the contribution. This amount to a whopping 2500% return on their investment while the American tax payers struggle to get a job, pay the mortgage, and have a bleak financial future.

 

Now that the government ahs control over these financial institutions, the Obama administration is dictating the pay and bonus practices of these companies. Let us wait and see what else will be dictated.  

 

The Health Insurance Industry

 

Next on the table is the Health Insurance Industry. Reuters and Yahoo have fresh reports that insurance companies have the preliminary access to the TARP funds. As you know, the health care reform agenda is in the works in Congress. Secret meetings and well publicized meetings are being held to shape the health care reform bill. Making TARP money available to the insurance companies could be trap just like the trap set out for the auto and financial industry.

 

What are the implications?

 

I suspect that companies that will partake in the TARP funds will be strong armed to support the radical overhaul of the health insurance industry which is disguised as health care reform. Once the real negotiations for the health insurance reform begin, the companies that are stupid enough to be lured into this trap will have their bargaining power diminished. I suspect that the Obama administration will use the bailout money as a leverage to force these insurance companies for unfavorable concessions.

 

Conclusion

 

This is all about control. The pattern is so obvious once you stop, think, and digest all the evidence you will come to the same conclusion. First control the mobility. Second, control the money. Third, control who will be healthy and/or who live or die. The result will be…….??????


Obama must think that American people are stupid (at least his supporters)…

May 12, 2009

I really think Obama believes that he can get away with anything because the American people are stupid, dumb, have a short attention span, or simply just do not care. As long as they get freebees from the government, all is good.  

Why do I think that? 

I agree that Obama is eloquent and have a very cunning way of delivering his message, sort of mass hypnotizing his audience. But I am immune to it because I just do not listen to him speak. I already know that he is just another corrupt politician. 

Back to the point… 

He thinks or believes that by just changing the name of something people would automatically think it is a totally different thing and would fall in line of support that was previously unacceptable. 

Take the “tax cut for 95% of Americans.” Most of us know by now that it is only an illusion.

Next is the “Global War On Terror”, that has been change to “Overseas Contingency Operations.” One of his campaign promises was to end the war in Iraq and send the troops home ASAP. Well, when he got in office, he found out that it is not as simple as that. So to appease his anti-war group of supporters, he changed the name. No more global was on terror, ya’ll, just an overseas contingency operation. Presto! The loud and obnoxious voices of the critics of war on terror since its beginning are suddenly silent. 

The latest is the “CAP and TRADE” tax that is in the heart of the global warning… oops… climate change… policy agenda that is making its way around Congress. It is clear now that the majority of American people are not supportive of a policy that raises taxes on all Americans disguised as a global warming curving policy. As a matter of fact, only 30% of Americans support the cap and trade crap. Now, he is consulting pollsters to see what would be an acceptable “CHANGE” of name so stupid Americans would think it is a totally different monster. One of the circulating suggestion is “CLEAN ENERGY DIVIDE”.

What would you call someone who is trying to find ways to hoodwink you again just like the non stimulus bill and the porkulus spending bill?

If you fall for this again, Obama must be on to something….


Four types of voters…..after 100 days

May 9, 2009

After 100 days of the Obama administration, the groups of people who support him can be compared the the parable of  “Dirty Bathwater Parable”.

 The first group of voters knew instictively that dirty bathwater tastes bad – no need to sip it to prove themselves right. Everything Obama has done has proved them right.

 The second group of voters knew that dirty bathwater probably tastes bad, but they were intent on sampling it anyway, just to be sure. By the first 100 days, after a few sips, this group learned the lesson the hard way and they now know that dirty bathwater tastes bad.

The third group of voters rejected the fact that dirty bathwater tastes bad. They are now drinking it by the glassful. They have some vague feeling that something is not right, but they continue to imbide freely believing that if they just drink more it will start to taste better. This group of voters may, or may not, ever clue in to the fact that dirty bathwater tastes bad. It may take some cataclysmic event in their own lives to make them change their minds.

 The fourth group of voters were convinced that dirty bathwater tastes great. They are drinking it by the gallonful. The more they drink, the better it tastes. Nothing will make them change their thinking. They will drink it until it kills them.

Now the question is, what percentage of the poplulation does each group represent? If the first two groups represent the majority, then there is hope for the country. If not, then America is on an irreversible course towards its ultimate demise.


President Obama does not want black people to succeed

May 6, 2009

First, President Obama is trying to kill a bill that will help black farmers and he himself sponsored as a Senator.

Now, he signed a bill killing a successful program that helped Washington DC  inner city kids, mostly black, in getting better education. The program is the Washington DC educational voucher program that gave poor parents vouchers so they can enroll their kids in the school of their choice. Most of these kids were enrolled in private schools that provide better educational programs than the Washington DC school system. The bill to kill the DC voucher program was included in the $410 billion full of pork bill.

The annuat cost of this program is $18 million annually. In my previous post, Obama signed an executive order making $20.3 million of our tax money to go to Hamas controlled Gaza strip. Yet, he is not willing to spend $18 million to help poor kids get a better chance in life.

Why, Mr. President, why?


What can you do with $20.3 million at your disposal?

May 4, 2009

In the current economic situation here in the US, every American is asked by President Obama to “sacrifice”. Many Americans are not spending because many of us are unemployed (8.5% unemployment as of March 09) and the outlook for this economy turning around is not bright either. So it just normal to see Americans tightening their belts to weather this economic crisis.

But what is the President doing allocating $20.3 million of our tax dollars to help the Hamas from Gaza strip? How many American families do you think can be helped by that amount of money? Are we certainly sure that this money is not going to go to the group Hamas who is running the Gaza Strip?

Just take a look at the presidential executive order and tell me if you think this is the right thing to do:

 Presidential Determination No. 2009-15 of January 27, 2009

Unexpected Urgent Refugee and Migration Needs Related To Gaza
Memorandum for the Secretary of State
By the authority vested in me by the Constitution and the laws of the United States, including section 2(c)(1) of the Migration and Refugee Assistance Act of 1962 (the “Act”), as amended (22 U.S.C. 2601), I hereby determine, pursuant to section 2(c)(1) of the Act, that it is important to the national interest to furnish assistance under the Act in an amount not to exceed $20.3 million from the United States Emergency Refugee and Migration Assistance Fund for the purpose of meeting unexpected and urgent refugee and migration needs, including by contributions to international, governmental, and nongovernmental organizations and payment of administrative expenses of Bureau of Population, Refugees, and Migration of the Department of State, related to humanitarian needs of Palestinian refugees and conflict victims in Gaza.
You are authorized and directed to publish this memorandum in the Federal Register.

(Presidential Sig.)
THE WHITE HOUSE,
Washington, January 27, 2009
[FR Doc. E9-2488
Filed 2-3-09; 8:45 am]
Billing code 4710-10-P

I know this is just a drop in the bucket in Obama’s $3.5 trillion borrowing and spending but nickle and dime adds up.

I am not so sure when this spending spree is going to stop.

If the American taxpayers, our chilcren, and our grandchildren are getting hooked by this massive borrowing and spending, wouldn’t be better throwing the money in our direction?

And when did the Gaza strip and Hamas refugees become vital national interst of this country?


Germanfest Bike Rally Muenster, Tx April 29, 2009

May 2, 2009

The Germanfest Bike Rally is my second bike rally this year. The first weekend of April was the Tour de Dallas but I have yet to order the pictures of that event. This is my first time riding in the Germanfest Bike Rally. This is the hilliest one for me so far….

The pictures for Germanfest Bike Rally was taken by my wife….

 

Off we go....

Off we go....

 

Waiting to start......

Waiting to start......

 

Rolling past cars to the finish line.....

Rolling past cars to the finish line.....

 

Done....

Done....