Spinmeisters are at it

In this Salon piece by Joan Walsh, it finally occurred to me what the impetus for the Democrats will be during the next four years under Obama: To blame Republicans for the failings of our Economy and create an Entitlement mentality that will forever enslave people to the Democrat Party.

I believe the problems in the country began back in 1913 when a secret meeting on Jekyll Island (how fitting) of America's most elite bankers and the Assist. Secretary of Treasury under Woodrow Wilson, drafted the Federal Reserve Act. Sounds farcical, but it's true, Forbes wrote an article on it and G. Edward Griffin wrote a book titled "The Creature from Jekyll Island" describing the process of how the Federal Reserve Act came to existence. It was created to prevent bank panics, be a lender of last resort, but most importantly the reason for its existence was to bring stability to our Economy. It failed 16 years after its creation when the Stock Market crashed in 1929, exacerbated by people who bought shares on speculation and used credit from banks to do it. The banks failed because the borrowers couldn't repay their loans and people ran the banks hoping to get their money out. Sound familiar?

Since then, we've instituted a number of safety measures to prevent this from occurring again. Namely the Glass-Steagall Act which separated Commercial Banks from Investment Banks as a result of the Pecora Commission which investigated the cause of the 1929 Stock Market Crash. Fortunately for us, Bill Clinton undid the Glass-Steagall Act under the Gramm-Leach-Bliley Act allowing Commercial Banks to merge with Investment Banks again. A great thing because we never speculated since and our Stock Market never lost value. Oh, never mind, our housing market fell by more than 20% in the last year and our Stock Market plummeted 40%.

Well, at least Politicians can say they never forced banks to loan money to sub-prime borrowers who most likely won't pay the money back. Oh wait, we did that too under the Community Reinvestment Act signed by President Jimmy "Jews bring Terrorism on Themselves" Carter and made worse by Clinton policies that forced banks to lend to poorer people (read minorities) under the guise of Fannie Mae and Freddie Mac purchasing the bad debt. I guess that's why we bailed them out?

Which brings us to our current debacle. In late 2008, before Bush got the boot, he passed the first Economic Recovery plan called TARP (Temporary Asset Relief Program) meant to help out the banks so that they would use their generous allotment of credit from the Federal Government to re-institute lending again to borrowers. Since that failed Obama is working on his Economic Recovery plan called CRAP 2 (Community Re-reinvestment Act Part 2).

Funny enough that the Federal Reserve didn't do in 1929 what it was created to do in 1913, and failed again to do in 2008 and all the other crashes in between, but we don't care. Funny enough that the Glass-Steagall Act which was created to prevent another Stock Market Crash of 1929 proportions, but was undone in 1999 by Bill Clinton, allowed our Stock Market to "decrease" by 40% last year, but we don't care. Funny enough that the Community Reinvestment Act (CRA) of 1979, which forced banks into sub-prime markets, put banks into the position of making bad loans, but we don't care. What we do care about though is repeating this huge gargantuan lie over and over again that it was Free Market principles espoused by Republicans that led to our current situation. Who doesn't see the farce in that? The Federal Reserve, Fannie and Freddie, CRA, Gramm-Leach-Bliley, were all created by Democrat Administrations.

All this won't really matter though. FDR used Keynesian Economics to revive our Economy in the 1930's, but ended up prolonging the Depression. Obama is doing the same with Infrastructure projects. FDR created Social Security, thus securing a dependent voter bloc and Obama will create Socialized Health Care, thus securing a larger dependent voter bloc. When something doesn't work, his patsies in the media will blame Republicans. As Chris Matthews of MSNBC stated, "it's my [Matthews] job to make Obama successful." So when I read "Democrats know the Republicans are wrong. Little children know they're wrong. Cats and dogs know they're wrong. But somehow this week, unbelievably, Obama and the Democrats seem to be losing the spin war." I know that anyone that opposes this Demagogue in Chief and his Trumpeters in the media is going to be in for it during the next four years.