Friday, October 18, 2013

Federal Follies

The Federal government has persisted in imposing bad ideas for decades.  We remember being amazed at their refusal to drill oil and gas, their refusal to close and secure the Mexican border and their insistence on unaffordable energy and unaffordable health care deployment.  We remember hearing that “great sucking sound” after NAFTA, as manufacturing and engineering job were off-shored to other countries.  We remember our dismay that bad mortgages were allowed to be made and then sold off as securities to create the Meltdown of 2008.  The government has admitted 1.8 million legal immigrants each year while real unemployment is approaching 40%.  Add to that the 350% increase in the money supply by Fed money printing that will result in 10% inflation for the next 35 years. Then there’s Agenda 21. We have no other options but to force the reversal of these trends.

Oil & Gas
Large US deposits of oil and gas were confirmed in 2011 and 2012.  In the same timeframe, fracking was proven to be a viable method to extract oil and gas.  We have more oil, gas and coal reserves than any other nation.  The Federal government has done little to encourage energy independence and continues to support unaffordable alternative energy. 

In 1983, the US produced 57% of its own oil needs.  By 2005, that percentage had dropped to 25%.  Using the “global warming” hoax as an excuse, the Federal government decimated domestic production. 
The US consumes about 19,000 barrels of oil each year, but domestic oil production is around 5,600 barrels.  The Keystone pipeline needs to be built to provide cost-effective infrastructure for this oil, but the government is holding up approval.  States need to nullify federal control and approve the pipeline to run through their States.

The additional 13,400 barrels of oil we need to produce would add $500 billion to our annual economic activity and should be achieved as soon as possible. 

Open Borders
For decades, American businesses followed Immigration laws.  If we needed an H2b visa for an employee with special skills, we got it.  If farmers needed guest workers at harvest time, they got them.  At some point, after the 1970s, the system broke down and illegals streamed in without visas and were hired.  I suspect that the immigration service sabotaged itself after the 1986 Amnesty debacle. The Federal government just stopped enforcing immigration laws and nobody reported it.

Before long, millions of illegal immigrants were employed throughout the U.S., as many as 20 million at the peak. That number declined with various recessions, but still remains over 10 million.  Now Mexican drug cartel gangs are entrenched in our cities and are active across the U.S.

Unaffordable Energy
The global warming hoax resulted in the closure of coal fired power plants and environmental groups have target the removal of hydroelectric power plants.  Earlier lobbying kept nuclear power plants from being built.  European countries jumped on unaffordable energy deployment earlier with wind and solar.  Their electric bills doubled and they stopped building wind and solar, but the damage has been done. France went nuclear and now sell power to the Germans.

Coal and nuclear production costs remain the lowest cost options at 2 cents per kwh. Hydroelectric is still cost effective.  In the U.S. natural gas prices were reduced due to new supplies being discovered and drilled and is down from 6 to 4 cents per kwh.  Solar costs 10 cents per kwh and Wind costs 14 cents per kwh, because of the high cost to construct these and the undependability of these sources. Yet, the federal government continues to waste billions on implementing these boondoggles.

Unaffordable Health Care
Obamacare was passed by the most disgraceful display of disregard for voters in the history of the country.  It proved to be an unaffordable boondoggle that can’t be implemented because of bad software on the website.  

Offshoring Manufacturing
NAFTA heralded the beginning of the end of the US economy as US manufacturing went off-shore in search of cheaper labor rates.  Since then, a parade of even worse trade agreements have been passed and are being proposed.

Unless the federal government acts to repeal environmental and regulatory overreach and reduces taxes to return US manufacturing, we are doomed to adjust to minimum wage jobs. 

2008 Meltdown
The 2008 Meltdown was the last straw.  The Community Reinvestment Act signed by Clinton and HUD rules threatened lenders to lower lending standards to include un-creditworthy borrowers.  The result was a housing bubble that popped in a cascade of mortgage defaults costing trillions.

Self-Inflicted 40% Unemployment
Legal immigration has been as high as 1.8 million a year. That’s an average of 150,000 new job seeking immigrants per month. Add that to the 150,000 new grads and send them to apply for the 150,000 jobs created each month. Add to that the 10 million illegal immigrants searching for jobs.  Do the math. 

Fed Money Printing
Responding to the 2008 Meltdown, the Fed has printed trillions to keep the Zombie-Banks and US stock market afloat for now.  Unless these trillions are clawed back from the Banks, inflation will be worse than 10% per year for 35 years.

Fundamentals
The fundamentals are not good.  The money printing needs to stop along with federal overspending.  Federal overspending needs to stop now.  Then QE needs to be trimmed back incrementally over time. The US economy will not improve until we get the government out of the way of the private economy.

We also need to increase production of everything we can sell to other countries.  This includes oil, natural gas, coal, timber, minerals and food and it needs to be done immediately.

UN Agenda 21
As if that wasn’t enough destruction, the federal government is on a tear to implement UN Agenda 21 in the US. They are spending close to $ 1 trillion a year to implement this treason.  In 1992 George (Hapless) W Bush signed on to Agenda 21 in the wake of the UN global warming hoax.  Clinton ordered its implementation and Obama hit the ground running to get the implementation done.  It is designed to result in the end of US sovereignty and a takeover by the UN as our global communist government. Google it.  It’s there hiding in plain sight.

Norb Leahy, Dunwoody GA Tea Party Leader

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