On Glenn Beck's radio show last week, I quipped in response to our wayward federal government, "I may run for president of Texas."
That need may be a reality sooner than we think. If not me, someone someday may again be running for president of the Lone Star state, if the state of the union continues to turn into the enemy of the state.
From the East Coast to the "Left Coast," America seems to be moving further and further from its founders' vision and government.
Washington advised, "The great rule of conduct in regard to foreign nations is in extending our #commercial relations [and] having with them as little political connection as possible." Yet the Obama #administration just pledged $900 million in U.S. taxpayer-funded aid to Hamas-controlled Gaza and Mahmoud Abbas' Palestinian Authority.
Thomas Jefferson counseled us, "We must not let our rulers load us with perpetual debt." Yet the Feds have just skyrocketed our national deficit and debt by trillions of dollars, and it plans much more fiscal expansion with few expectations of resistance. Despite that George Washington admonished, "To contract new debts is not the way to pay for old ones," we keep borrowing and bailing, while we watch the stock market plunge further every time we do.
Patrick Henry taught that, "Our Constitution is … an instrument for its people to restrain the government." Yet our Congress and president stampede that founding document, overlook its explicitness and manipulate its words to abandon a balance of power and accommodate their own desires, partisan politics and runaway spending.
John Adams declared that, "Our Constitution was made only for a moral and religious people." Yet we've bastardized the First Amendment, reinterpreted America's religious history and secularized our society until we ooze skepticism and circumvent religion on every level of public and private life.
How much more will Americans take? When will enough be enough? And, when that time comes, will our leaders finally listen or will #history need to record a second American Revolution? We the people have the authority according to America's Declaration of Independence, which states:
That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience has shown that mankind are more disposed to suffer, while evils are sufferable than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future #security.
When I appeared on Glenn Beck's radio show, he told me that someone had asked him, "Do you really believe that there is going to be trouble in the future?" And he answered, "If this country starts to spiral out of control and #Mexico melts down or whatever, if it really starts to spiral out of control, before America allows a country to become a totalitarian country (which it would have under I think the Republicans as well in this situation; they were taking us to the same place, just slower), Americans won't stand for it. There will be parts of the country that will rise up." Then Glenn asked me and his listening audience, "And where's that going to come from?" He answered his own question, "Texas, it's going to come from Texas. Do you agree with that Chuck?" I replied, "Oh yeah!" Definitely.
It was these types of thoughts that led me to utter the tongue-n-cheek frustration on Glenn Beck's radio show, "I may run for president of Texas!"
I'm not saying that other states won't muster the gumption to stand and secede, but Texas has the history to prove it. As most know, Texas was its own country before it joined the Union as its 28th state. From 1836 to 1846, Texas was its own Republic. Washington-on-the-Brazos (river) served as our Philadelphia, Pa. It was there, on March 2, 1836, where a band of patriots forged the Texas Declaration of Independence. (We just celebrated these dates last week.)
On March 1, 1845, then-President John Tyler signed a congressional bill annexing the Republic of Texas. Though the annexation resolution never explicitly granted Texas the right to secede from the Union (as is often reported), many (including me) hold that it is implied by its unique autonomy and history, as well as the unusual provision in the resolution that gave Texas the right to divide into as many as five states. Both the original (1836) and the current (1876) Texas Constitutions also declare that "All political power is inherent in the people. … they have at all times the inalienable right to alter their government in such manner as they might think proper."
Anyone who has been around Texas for any length of time knows exactly what we'd do if the going got rough in America. Let there be no doubt about that. As Sam #Houston once said, "Texas has yet to learn submission to any oppression, come from what source it may."
Just last Friday, the Alamo celebrated its 173rd commemoration, when on March 6, 1836, Texans under Col. William B. Travis were overcome by the Mexican army after a two-week siege at the Alamo in San Antonio. But they didn't go down without a hell-of-a-fight, as those roughly 145 Texans fought to their dying breaths against more than 2,000 Mexican forces under Gen. Santa Anna. (Casualties in the battle were 189 Texans vs. about 1,600 Mexicans.) They lost that battle, but would provide the inspiration to win the war. Their fighting spirit rallied the new-found republic, and still does to this day. So when you think all is lost in America, remember the Alamo!
For those losing hope, and others wanting to rekindle the patriotic fires of early America, I encourage you to join Fox News' Glenn Beck, me and millions of people across the country in the live telecast, "We Surround Them," on Friday afternoon (March 13 at 5 p.m. ET, 4 p.m. CT and 2 p.m. PST). Thousands of cell groups will be united around the country in solidarity over the concerns for our nation. You can host or attend a viewing party by going to Glenn's website. My wife Gena and I will be hosting one from our Texas ranch, in which we've invited many family members, friends and #law enforcement to join us. It's our way of saying "We're #united, we're tired of the corruption, and we're not going to take it anymore!"
Again, Sam Houston put it well when he gave the marching orders, "We view ourselves on the eve of battle. We are nerved for the contest, and must conquer or perish. It is vain to look for present aid: None is at hand. We must now act or abandon all hope! Rally to the standard, and be no longer the scoff of mercenary tongues! Be men, be free men, that your children may bless their father's name."
(Note: Speaking of showdowns, Chuck is also inviting anyone near the Houston area this weekend to see a good example of the raw Texas fighting spirit by joining him and others for the national martial arts event, "Showdown in H-Town.")
Titles are clicky
Tuesday, March 10, 2009
Monday, March 9, 2009
‘Manchurian Candidate’ Starts War on Business: Kevin Hassett
March 9 (Bloomberg) -- Back in the 1960s, Lyndon Johnson gave us the War on Poverty. In the 1970s, Richard Nixon launched the War on Drugs. Now that we have seen President Barack Obama’s first-year legislative agenda, we know what kind of a war he intends to wage.
It is no wonder that markets are imploding around us. Obama is giving us the War on Business.
Imagine that some hypothetical enemy state spent years preparing a “Manchurian Candidate” to destroy the U.S. economy once elected. What policies might that leader pursue?
He might discourage private capital from entering the financial sector by instructing his Treasury secretary to repeatedly promise a brilliant rescue plan, but never actually have one. Private firms, spooked by the thought of what government might do, would shy away from transactions altogether. If the secretary were smooth and played rope-a-dope long enough, the whole financial sector would be gone before voters could demand action.
Another diabolical idea would be to significantly increase taxes on whatever firms are still standing. That would require subterfuge, since increasing tax rates would be too obvious. Our Manchurian Candidate would have plenty of sophisticated ideas on changing the rules to get more revenue without increasing rates, such as auctioning off “permits.”
These steps would create near-term distress. If our Manchurian Candidate leader really wanted to knock the country down for good, he would have to provide insurance against any long-run recovery.
There are two steps to accomplish that.
Discourage Innovation
First, one way the economy might finally take off is for some entrepreneur to invent an amazing new product that launches something on the scale of the dot-com boom. If you want to destroy an economy, you have to persuade those innovators not even to try.
Second, you need to initiate entitlement programs that are difficult to change once enacted. These programs should transfer assets away from productive areas of the economy as efficiently as possible. Ideally, the government will have no choice but to increase taxes sharply in the future to pay for new entitlements.
A leader who pulled off all that might be able to finish off the country.
Let’s see how Obama’s plan compares with our nightmare scenario.
Treasury Secretary Timothy Geithner has been so slow to act that even liberal economist and commentator Paul Krugman is criticizing the administration for “dithering.” It has gotten so bad that the Intrade prediction market now has a future on whether Geithner is gone by year’s end. It currently puts the chance of that at about 20 percent.
No More Deferral
On the tax hike, Obama’s proposed 2010 budget quite ominously signaled that he intends to end or significantly amend the U.S. practice of allowing U.S. multinationals to defer U.S. taxes on income that they earn abroad.
Currently, the U.S. has the second-highest corporate tax on Earth. U.S. firms can compete in Europe by opening a subsidiary in a low-tax country and locating the profits there. Since the high U.S. tax applies only when the money is mailed home, and firms can let the money sit abroad for as long as they want, the big disadvantage of the high rate is muted significantly.
End that deferral opportunity and U.S. firms will no longer be able to compete, given their huge tax disadvantage. With foreign tax rates so low now, it is even possible that the end of deferral could lead to the extinction of the U.S. corporation.
If any firms are to remain, they will be festooned with massive carbon-permit expenses because of Obama’s new cap-and- trade program.
Importing Drugs
Obama’s attack on intellectual property is evident in his aggressive stance against U.S. pharmaceutical companies in the budget. He would force drug companies to pay higher “rebate” fees to Medicaid, and he included wording that suggests Americans will soon be able to import drugs from foreign countries. The stock prices of drug companies, predictably, tanked when his budget plan was released.
Obama will allow cheap and potentially counterfeit substitutes into the country and will set the U.S. price for drugs equal to the lowest price that any foreign government is able to coerce from our drug makers.
Given this, why would anyone invest money in a risky new cancer trial, or bother inventing some other new thing that the government could expropriate as soon as it decides to?
Finally, Obama has set aside $634 billion to establish a health-reform reserve fund, a major first step in creating a universal health-care system. If you want to have health care for everyone, you have to give it to many people for free. Once we start doing that, we will never stop, at least until the government runs out of money.
It’s clear that President Obama wants the best for our country. That makes it all the more puzzling that he would legislate like a Manchurian Candidate.
(Kevin Hassett, director of economic-policy studies at the American Enterprise Institute, is a Bloomberg News columnist. He was an adviser to Republican Senator John McCain of Arizona in the 2008 presidential election. The opinions expressed are his own.)
It is no wonder that markets are imploding around us. Obama is giving us the War on Business.
Imagine that some hypothetical enemy state spent years preparing a “Manchurian Candidate” to destroy the U.S. economy once elected. What policies might that leader pursue?
He might discourage private capital from entering the financial sector by instructing his Treasury secretary to repeatedly promise a brilliant rescue plan, but never actually have one. Private firms, spooked by the thought of what government might do, would shy away from transactions altogether. If the secretary were smooth and played rope-a-dope long enough, the whole financial sector would be gone before voters could demand action.
Another diabolical idea would be to significantly increase taxes on whatever firms are still standing. That would require subterfuge, since increasing tax rates would be too obvious. Our Manchurian Candidate would have plenty of sophisticated ideas on changing the rules to get more revenue without increasing rates, such as auctioning off “permits.”
These steps would create near-term distress. If our Manchurian Candidate leader really wanted to knock the country down for good, he would have to provide insurance against any long-run recovery.
There are two steps to accomplish that.
Discourage Innovation
First, one way the economy might finally take off is for some entrepreneur to invent an amazing new product that launches something on the scale of the dot-com boom. If you want to destroy an economy, you have to persuade those innovators not even to try.
Second, you need to initiate entitlement programs that are difficult to change once enacted. These programs should transfer assets away from productive areas of the economy as efficiently as possible. Ideally, the government will have no choice but to increase taxes sharply in the future to pay for new entitlements.
A leader who pulled off all that might be able to finish off the country.
Let’s see how Obama’s plan compares with our nightmare scenario.
Treasury Secretary Timothy Geithner has been so slow to act that even liberal economist and commentator Paul Krugman is criticizing the administration for “dithering.” It has gotten so bad that the Intrade prediction market now has a future on whether Geithner is gone by year’s end. It currently puts the chance of that at about 20 percent.
No More Deferral
On the tax hike, Obama’s proposed 2010 budget quite ominously signaled that he intends to end or significantly amend the U.S. practice of allowing U.S. multinationals to defer U.S. taxes on income that they earn abroad.
Currently, the U.S. has the second-highest corporate tax on Earth. U.S. firms can compete in Europe by opening a subsidiary in a low-tax country and locating the profits there. Since the high U.S. tax applies only when the money is mailed home, and firms can let the money sit abroad for as long as they want, the big disadvantage of the high rate is muted significantly.
End that deferral opportunity and U.S. firms will no longer be able to compete, given their huge tax disadvantage. With foreign tax rates so low now, it is even possible that the end of deferral could lead to the extinction of the U.S. corporation.
If any firms are to remain, they will be festooned with massive carbon-permit expenses because of Obama’s new cap-and- trade program.
Importing Drugs
Obama’s attack on intellectual property is evident in his aggressive stance against U.S. pharmaceutical companies in the budget. He would force drug companies to pay higher “rebate” fees to Medicaid, and he included wording that suggests Americans will soon be able to import drugs from foreign countries. The stock prices of drug companies, predictably, tanked when his budget plan was released.
Obama will allow cheap and potentially counterfeit substitutes into the country and will set the U.S. price for drugs equal to the lowest price that any foreign government is able to coerce from our drug makers.
Given this, why would anyone invest money in a risky new cancer trial, or bother inventing some other new thing that the government could expropriate as soon as it decides to?
Finally, Obama has set aside $634 billion to establish a health-reform reserve fund, a major first step in creating a universal health-care system. If you want to have health care for everyone, you have to give it to many people for free. Once we start doing that, we will never stop, at least until the government runs out of money.
It’s clear that President Obama wants the best for our country. That makes it all the more puzzling that he would legislate like a Manchurian Candidate.
(Kevin Hassett, director of economic-policy studies at the American Enterprise Institute, is a Bloomberg News columnist. He was an adviser to Republican Senator John McCain of Arizona in the 2008 presidential election. The opinions expressed are his own.)
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