China Is America’s Enemy: Make No Mistake About That

13 01 2011

By Timothy D. Naegele[1]

While it would certainly be nice to think of China as a benign, friendly, democratic nation, if not an ally of the United States—which makes the computers and cellphones that Americans use, and provides most of the products sold in Walmart stores—the fact is that China is our enemy, now and in the future.  A failure to recognize this fact has serious national security implications for our great nation.  Those who cavalierly dismiss this and similar assessments, as nothing more than the rantings of “Cold Warriors,” may be condemned to repeat and relive the world wars of the past.

Does this mean that we will be in a shooting war with China any time soon, or that we should gird for war in the future?  No, but it means that we must maintain and strengthen our military might, and do nothing to diminish it.  We face deadly challenges elsewhere in the world too: for example, from North Korea, Iran, Russia and terrorists.  However, we must never underestimate the threat from China, America’s rising Asian rival globally.  Among other things, there is a “disconnect” between China’s civilian and military leaderships, which may grow dramatically—and it does not bode well for the future.

As the Wall Street Journal reported:

China conducted the first test flight of its stealth fighter just hours before U.S. Defense Secretary Robert Gates sat down with President Hu Jintao here to mend frayed relations, undermining the meeting and prompting questions over whether China’s civilian leadership is fully in control of the increasingly powerful armed forces.[2]

In early 2001, at the beginning of George W. Bush’s presidency, China’s military tested his metal by forcing down one of our spy planes near the island of Hainan. There were serious questions raised then—as they are being raised now—about whether China’s civilian leadership was fully in control of the country’s military.

Also, the New York Times had a fine article recently, which stated in part:

Older Chinese officers remember a time, before the Tiananmen Square protests in 1989 set relations back, when American and Chinese forces made common cause against the Soviet Union.

The younger officers have known only an anti-American ideology, which casts the United States as bent on thwarting China’s rise.

. . .

Chinese military men, from the soldiers and platoon captains all the way up to the army commanders, were always taught that America would be their enemy.[3]

Viewed in its starkest terms, China has threatened a nation-ending EMP Attack against the United States already—which went largely unnoticed by most Americans, even though such an attack might kill all except 30 million of us.[4] In addition to its submarine forces that have been expanded greatly in the past decade, China’s military is deploying new ballistic missiles that can sink U.S. aircraft carriers, and are potentially game-changing, unprecedented threats to our supercarriers and their carrier battle groups.[5]

Also, China is preparing to build an aircraft carrier, which symbolizes the ambition to move far beyond its own shores[6].  Its growing anti-satellite capabilities and quite soon its fifth-generation fighter, not to mention its ongoing Cyberwarfare and economic warfare, are alarming to say the least.

Barack Obama manipulated the 2010 lame-duck session of Congress to ratify the “90 percent useless and 10 percent problematic” New START Treaty with Putin’s Russia—from which the next Republican administration should withdraw[7], just as George W. Bush withdrew from the ABM Treaty, which had expressly prevented major American advances in missile defense.  However, the United States’ focus must be on China, not on an essentially-Third World, backwater country like Russia.[8]

As one China military-affairs specialist put it:

Clearly, China’s communist leadership is not impressed by the [Obama] administration’s ending of F-22 production, its retirement of the Navy’s nuclear cruise missile, START Treaty reductions in U.S. missile warheads, and its refusal to consider U.S. space warfare capabilities. Such weakness is the surest way to invite military adventurism from China.[9]

On the positive side, China represents an enormous consumer market.  Yet, even on that front, caution is advised and prudence is required.  As the Wall Street Journal noted:

It’s tempting for U.S. companies to believe they can rely on access to hundreds of millions of new consumers in China and other emerging-market countries for the lion’s share of future profits. But they had better be prepared for a wide variety of unforeseen barriers.[10]

The United States has other issues and problems with China, including but not limited to Chinese adoption policies that foist “sick” children on unsuspecting, needy American adoptive parents, leading to tragic human suffering and other consequences[11]; China’s human rights abuses, including political prisoners who often serve their terms in an archipelago of labor camps scattered across the country called Laogai[12]; North and South Korea—and their respective international protectors, China and the U.S.—which might be heading for a showdown in the future[13]; and China’s expanding influence in the world, such as its willingness to bail out debt-ridden countries in the euro zone[14].

China has a violent history, which is of recent vintage.  Indeed, the Soviet Union’s Joseph Stalin and China’s Mao Tse-tung were the most ruthless killers of their own people in the 20th Century, and perhaps in the entire history of mankind.  Mao was directly responsible for an estimated 30-40 million deaths between 1958 and 1960, as a result of what his regime hailed as the “Great Leap Forward.”[15] Even though human rights activist Liu Xiaobo won the 2010 Nobel Peace Prize—after having been sentenced to prison for putting his name to the “Charter 08″ human-rights manifesto, which says that the Chinese people “see clearly that freedom, equality, and human rights are universal values”—he was denied the right to have a representative collect the prize for him.[16]

Perhaps the best hope for a democratic China at peace with the world rests with the expansion of human rights in the country, as well as consumerism and capitalism; and greater civilian control over the country’s potentially-renegade military.  Whether this hope comes to fruition, or ends up as a pipe dream, remains to be seen.  Will China’s bluster and swagger lead to war, or dissipate over time; and are the United States and China on a collision course in the Western Pacific and elsewhere?[17] Only time will tell.  However, one can never forget that China’s violent past was only a short time ago, and its human rights abuses continue to this day.

© 2011, Timothy D. Naegele


[1] Timothy D. Naegele was counsel to the United States Senate’s Committee on Banking, Housing, and Urban Affairs, and chief of staff to Presidential Medal of Freedom and Congressional Gold Medal recipient and former U.S. Senator Edward W. Brooke (R-Mass).  He practices law in Washington, D.C. and Los Angeles with his firm, Timothy D. Naegele & Associates, which specializes in Banking and Financial Institutions Law, Internet Law, Litigation and other matters (see www.naegele.com and http://www.naegele.com/naegele_resume.html).  He has an undergraduate degree in economics from UCLA, as well as two law degrees from the School of Law (Boalt Hall), University of California, Berkeley, and from Georgetown University.  He is a member of the District of Columbia and California bars.  He served as a Captain in the U.S. Army, assigned to the Defense Intelligence Agency at the Pentagon, where he received the Joint Service Commendation Medal.  Mr. Naegele is an Independent politically; and he is listed in Who’s Who in America, Who’s Who in American Law, and Who’s Who in Finance and Business. He has written extensively over the years (see, e.g.www.naegele.com/whats_new.html#articles), and can be contacted directly at tdnaegele.associates@gmail.com

[2] See http://online.wsj.com/article/SB10001424052748704428004576075042571461586.html?mod=WSJ_hp_MIDDLENexttoWhatsNewsTop

[3] See http://www.nytimes.com/2010/10/12/world/asia/12beijing.html?_r=3&hp=&pagewanted=all

[4] See, e.g.http://naegeleblog.wordpress.com/2010/01/19/emp-attack-only-30-million-americans-survive/

[5] See, e.g.http://www.washingtontimes.com/news/2010/dec/27/china-deploying-carrier-sinking-ballistic-missile/

[6] See, e.g.http://www.ft.com/cms/s/0/fa7f5e6a-09cc-11e0-8b29-00144feabdc0.html#axzz18PUuKHZh

[7] See http://naegeleblog.wordpress.com/2010/02/09/russias-putin-is-a-killer/#comment-1014: see also http://naegeleblog.wordpress.com/2010/02/09/russias-putin-is-a-killer/#comment-1167 and http://naegeleblog.wordpress.com/2010/02/09/russias-putin-is-a-killer/#comment-1245

[8] See http://naegeleblog.wordpress.com/2010/02/09/russias-putin-is-a-killer/

[9] See http://www.washingtontimes.com/news/2010/dec/27/china-deploying-carrier-sinking-ballistic-missile/

[10] See, e.g.http://online.wsj.com/article/SB10001424052748704852004575258541875590852.html?mod=WSJ_hp_editorsPicks

[11] See, e.g.http://naegeleblog.wordpress.com/2010/04/15/problems-with-foreign-adoptions/; see also http://naegeleblog.wordpress.com/2010/02/09/russias-putin-is-a-killer/#comment-348 and http://naegeleblog.wordpress.com/2010/02/09/russias-putin-is-a-killer/#comment-434 (“[B]oth Russia and China have used the U.S. as dumping grounds for their ‘sick’ children”)

[12] See, e.g.http://www.naegele.com/documents/BretStephens-FromAthenstoBeijing.pdf (“How strong can China be if it is terrified of Nobel Peace Prize winner Liu Xiaobo?”); see also http://naegeleblog.wordpress.com/2010/02/09/russias-putin-is-a-killer/#comment-824

[13] See, e.g., http://naegeleblog.wordpress.com/2010/12/22/the-next-major-war-korea-again/ and http://naegeleblog.wordpress.com/2010/02/09/russias-putin-is-a-killer/#comment-1012

[14] See, e.g.http://naegeleblog.wordpress.com/2010/02/09/russias-putin-is-a-killer/#comment-1177

[15] As I have written:

Like Stalin, Mao’s crimes involved Chinese peasants, many of whom died of hunger from man-made famines under collectivist orders that stripped them of all private possessions.  The Communist Party forbade them even to cook food at home; private fires were outlawed; and their harvests were taken by the state.  Those who dared to question Mao’s agricultural policies—which sought to maximize food output by dispossessing the nation’s most productive farmers—were tortured, sent to labor camps, or executed.

See http://naegeleblog.wordpress.com/2010/02/06/the-silent-voices-of-stalin%E2%80%99s-soviet-holocaust-and-mao%E2%80%99s-chinese-holocaust/

[16] See infra note 12; see also http://en.wikipedia.org/wiki/Liu_Xiaobo#Nobel_Peace_Prize

[17] See, e.g.http://naegeleblog.wordpress.com/2010/02/09/russias-putin-is-a-killer/#comment-1188





Barack Obama Is A Lame-Duck President Who Will Not Be Reelected

3 12 2010

By Timothy D. Naegele[1]

Like former Presidents Jimmy Carter and Lyndon Johnson before him, in 1980 and 1968 respectively, Barack Obama will not be reelected in 2012.[2] The twin pincers of a domestic economy in the throes of the “Great Depression II”[3]—which economic historians will describe as such, or by using similar terms 20-40 years from now—and his failed Vietnam-like Afghan war[4] will seal his political fate.  Other factors will contribute mightily too, such as the perception that he is “out of touch” just as Jimmy Carter was; and that Obama is a silver-tongued, narcissistic “foreign born” demagogue who is un-American.[5] Perceptions often become reality, certainly in politics.

We are witnessing the end of Obama as a politician now.  The zenith of his presidency occurred with the enactment of ObamaCare, just as Hillary Clinton’s health care efforts marked the “high water mark” of her influence during Bill Clinton’s presidency.  Obama’s nadir is yet to come, but the 2010 mid-term election debacle represented an important milestone on the slippery downward slope of his presidency.  The domestic economy will get far worse; his Afghan war is a morass that seems unwinnable and inescapable; and national security issues loom—such as North Korea and Iran—which may prove “hazardous” at best.

Barack Obama is a failed politician whose “magic” has come and gone.  He is not merely a bad president. He may have the distinction of going down in history as one of the worst presidents that America has ever had, or perhaps the worst depending on what happens during the remainder of his term in office.  That he is presiding over a failed presidency is not in dispute. The only question becomes: how bad will things get for the American nation, its people and for him, before he leaves public office?[6] It is fair to surmise that we have only seen the tip of an enormous political, economic, social and national security “iceberg”—or nightmare—reminiscent of the one that the RMS Titanic struck in 1912.

It is not beyond the pale to believe that scandals will engulf Barack Obama’s presidency as more and more is learned about who he is and how he has governed, and what he and others in his administration have done during the time they have been entrusted with the presidency.[7] Barack Obama is no Bill Clinton: a “cat” with seemingly nine lives politically. He is a “mix” between Carter who was perceived as cerebral and out of touch, and Johnson who was viciously maligned and prevented from running for reelection.

When I was a young Army officer stationed at the Pentagon, before working on Capitol Hill, I remember bumper stickers on cars in the District of Columbia that asked: “Where is Lee Harvey Oswald now that we really need him?”—a reference to John F. Kennedy’s killer.  Johnson was hated, and such implied threats were real.  There are rising negative sentiments about Obama today, involving large numbers of Americans who are not racially prejudiced or merely disillusioned.  Indeed, two Democratic pollsters and advisers to Presidents Clinton and Carter respectively, Douglas E. Schoen and Patrick H. Caddell, wrote an important op-ed piece in the Washington Post recently, which stated:

[W]e believe Obama should announce immediately that he will not be a candidate for reelection in 2012.

. . .

[T]he president has largely lost the consent of the governed.  The [2010] midterm elections were effectively a referendum on the Obama presidency.[8]

However, his raving and overarching narcissism will likely drive his decision making to put his own perceived best interests ahead of the good of the country and his political party; and he will probably fight on to the bitter end.  More and more Americans are concluding that he does not deserve a second term in the White House.[9] Political pundit and former adviser to Bill Clinton, Dick Morris, argues that he will be challenged by both those on his left and right politically.[10]

Barack Obama is an unsuccessful “community organizer” from Chicago—and before that, Hawaii and Indonesia—who became a black man when it suited him, despite the ethnicity of his mother and her parents who nurtured him like no one else in his life.  The best of him, he has readily admitted, is what the three of them gave him; and clearly he cherishes their memories.[11] Yet, it is not such personal qualities that will determine his political fate.  Jimmy Carter was perceived as likable too.

With respect to the economy, we are in the midst of the “Great Depression II,” and there is nothing he can do about that fact.  The economic tsunami that former Federal Reserve Chairman Alan Greenspan unleashed has been rolling worldwide, with no end in sight. At most, government policies can affect it at the margins—because it will run its course, essentially oblivious to government intervention. Where and when it stops, no one knows; however, Obama’s actions to date have only made it worse.[12] His so-called “stimulus package” has done little or nothing to help the economy; and his reform of the financial markets is akin to shuffling deck chairs on the Titanic[13].

His signature legislation, ObamaCare, was opposed by a majority of the American people, but that did not stop Obama and House Speaker Nancy Pelosi from arrogantly shoving it down their throats, as if to say that the two of them knew what was best for their wards.  ObamaCare is likely to be a tragedy for Americans who need health care the most, such as senior citizens; and according to a Rasmussen Reports national telephone survey, 58 percent of American voters favor its repeal, while 37 percent are opposed.[14]

His policies with respect to Russia’s “dictator-for-life” Vladimir Putin are a travesty to say the least, which simply reflect his almost-total naïveté that is stunning—America’s “Hamlet” on the Potomac.  His negotiation and endorsement of the New START Treaty is a perfect example.[15] Also, he stood by helplessly while those Iranians who advocated freedom were tortured or killed.  His positive contributions with respect to peace between the Israelis and Palestinians are essentially nonexistent, at a critical juncture in the history of the Middle East.[16] And the list goes on and on.

Writing for Germany’s Der Spiegel, Klaus Brinkbäumer stated bluntly:

[N]obody in the US understands [the Afghan] war any more.  The conflict long ago ceased to be Bush’s war, and is now Obama’s.  Worse still, it will inevitably end with an inglorious withdrawal.  Why, then, should the US send in yet more troops?  Why spend $100 billion a year waging war when train stations and schools back home are falling to pieces, and the money would be better spent on other American projects and research?  Congress refuses to approve extra spending on renewing America: The money has already been spent.

. . .

The problem is simply that Obama is smaller than the promise he made, and tiny in comparison to the hopes an entire nation placed on him in 2008. There’s one thing that Barack Obama failed to do. That was his real failure, the big mistake he made, back when everything seemed possible.

. . .

[H]e didn’t even try.[17]

The fact is that Barack Obama is a professional politician and nothing more.  And Americans have come to loathe such creatures, not love them.  So “out of touch” is he that when the BP oil spill was polluting the Gulf of Mexico, Michelle Obama and their youngest daughter flew to Spain—and she was described as America’s “Marie Antoinette.”  More importantly, Obama is not fit to serve or govern, and he never has been.  He is a demagogue and a liar[18], and an embarassment to this great nation and its people.  He is incompetent[19]; and yes, he is evil.[20] Before his presidency ends, he is apt to do even more irreparable damage to our national security, our economy, and with respect to a whole host of critical areas.

He should be relieved of command, and end his political career with dignity like his former military commander in Afghanistan, General Stanley A. McChrystal.  This is what Democrat pollsters Schoen and Caddell have urged Obama to do.  The good General McChrystal, who was forced by Obama to resign his command, might be the first public official (or former-public official) to call for Obama’s resignation.[21] He knows, better than most people, about Obama’s ineptitude and recklessness with the lives of U.S. military personnel and America’s honor—which are at stake and on the line each and every day in Afghanistan and elsewhere around the world.

The fact that Obama named General David Petraeus to replace McChrystal as commander of American and NATO forces in Afghanistan, and that Petraeus was willing to accept the job and step down from his position as Commander of the U.S. Central Command—which oversees American military efforts in Afghanistan, Iraq, Pakistan, Central Asia, the Arabian Peninsula, and parts of Africa—speaks volumes about the character, talent, loyalty and integrity of Petraeus.  However, it does not change the verdict with respect to Obama and his failed presidency.

There is nothing positive about his administration or what he has done to date, nothing.  Despite projecting an upbeat, positive, personable image on the campaign trail, which enthused millions of voters and gave them hope, at best he has proved to be an “empty suit.”  If Americans read his book, “Dreams from My Father,” they will realize that his radical beliefs are in tune with Indonesia where he lived—or perhaps some other foreign country—but not with the United States.[22] The “change” he espoused has not been consistent with the beliefs and goals of mainstream American voters.

The critical words that General McChrystal and his staff spoke in a Rolling Stone interview[23] were true and needed to be said—even though lots of Americans might have preferred not to hear about the acrimony and dissension between our military and the Obama Administration.[24] We have a president who is a far-Left neophyte and wrong for America; and he is presiding over a presidency that almost surely will get dramatically worse with the passage of time.  And we have a lovable but utter buffoon for vice president, who is a pathological liar and the laughingstock of the world, and who makes former Vice President Spiro Agnew look brilliant by comparison.[25]

With respect to Afghanistan, at the same time that Obama announced the deployment of an additional 30,000 American troops, he said the U.S. would begin pulling out by July of 2011—just before his anticipated reelection campaign begins in earnest[26], and only one year after our forces will have been deployed fully.  If implemented, it would be tantamount to conceding the country to our enemies sometime in 2011; and it would result in the shedding of American blood and that of our allies for nothing, like Vietnam.

While Obama may be in the process of jettisoning that unrealistic timeline, his thought processes are not surprising because he is an anti-war politician who never served in the U.S. military, and he knows nothing about running a war.  His goals—which never refer to the possibility of “victory” in Afghanistan—are designed to appease his political soul mates and constituency, America’s anti-war far-Left.  He is focused on an “exit strategy” instead of winning.  He has not been successful at running anything, ever[27]; and it is unlikely that Afghanistan will be an exception.  Since when does a failed, anti-war, far-Left “community organizer” from Chicago, who was raised in Hawaii and Indonesia, know how to run a war, much less successfully?

Independents and Republicans helped elect Obama and Democrat candidates in 2008; and they  joined with “disenchanted” Democrats and members of the Tea Party movement in November of 2010 to produce an opposite result.  The combination of Afghanistan—which is apt to be Obama’s Vietnam—and growing economic problems may doom his presidency, just as similar issues converged to deny Lyndon Johnson’s reelection in 1968.  Like John F. Kennedy before him, who inspired so many people and caused legions to enter politics, Obama has feet of clay and is dashing Americans’ dreams and political fantasies.[28]

In the final analysis, it is increasingly clear that Obama is a fad and a feckless naïf, and a tragic Shakespearean figure who will be forgotten and consigned to the dustheap of history—unless he tragically alters the course of American history.  His naïveté is matched by his overarching narcissism; and he is more starry-eyed and “dangerous” than Jimmy Carter.  Indeed, it is likely that his presidency will be considered a sad and tragic watershed in history; and the American people are recognizing this more and more with each day that passes.[29] Hopefully he chooses to end his political career with dignity by not running for reelection in 2012, instead of continuing to drag this great nation down with him.[30]

© 2010, Timothy D. Naegele


[1] Timothy D. Naegele was counsel to the United States Senate’s Committee on Banking, Housing, and Urban Affairs, and chief of staff to Presidential Medal of Freedom and Congressional Gold Medal recipient and former U.S. Senator Edward W. Brooke (R-Mass).  He practices law in Washington, D.C. and Los Angeles with his firm, Timothy D. Naegele & Associates, which specializes in Banking and Financial Institutions Law, Internet Law, Litigation and other matters (see www.naegele.com and http://www.naegele.com/naegele_resume.html).  He has an undergraduate degree in economics from UCLA, as well as two law degrees from the School of Law (Boalt Hall), University of California, Berkeley, and from Georgetown University.  He is a member of the District of Columbia and California bars.  He served as a Captain in the U.S. Army, assigned to the Defense Intelligence Agency at the Pentagon, where he received the Joint Service Commendation Medal.  Mr. Naegele is an Independent politically; and he is listed in Who’s Who in America, Who’s Who in American Law, and Who’s Who in Finance and Business. He has written extensively over the years (see, e.g.www.naegele.com/whats_new.html#articles), and can be contacted directly at tdnaegele.associates@gmail.com

[2] See http://naegeleblog.wordpress.com/2010/01/20/the-end-of-barack-obama [Please note: the postings beneath this article are important as well]; see also http://naegeleblog.wordpress.com/2010/11/12/sarah-and-todd-palin-the-big-winners and http://naegeleblog.wordpress.com/2010/03/31/the-rise-of-independents/ and http://naegeleblog.wordpress.com/2010/09/01/the-speech—is-barack-obama-smoking-pot-again/ and http://naegeleblog.wordpress.com/2010/01/01/barack-obama-america’s-second-emperor/

[3] See, e.g., http://www.americanbanker.com/issues/173_212/-365185-1.html and http://www.realclearpolitics.com/news/tms/politics/2009/Apr/08/euphoria_or_the_obama_depression_.html and http://www.philstockworld.com/2009/10/11/greenspan’s-legacy-more-suffering-to-come/ and http://naegeleblog.wordpress.com/2009/12/16/the-great-depression-ii/ and http://naegeleblog.wordpress.com/2010/04/23/is-financial-reform-simply-washingtons-latest-boondoggle/ and http://naegeleblog.wordpress.com/2010/05/16/will-the-eus-collapse-push-the-world-deeper-into-the-great-depression-ii/ and http://naegeleblog.wordpress.com/2010/09/27/the-economic-tsunami-continues-its-relentless-and-unforgiving-advance-globally

[4] See, e.g., http://naegeleblog.wordpress.com/2010/09/09/are-afghanistan-iraq-and-pakistan-hopeless-and-is-the-spread-of-radical-islam-inevitable-and-is-barack-obama-finished-as-americas-president/ and http://naegeleblog.wordpress.com/2009/12/26/obama-in-afghanistan-doomed-from-the-start/

[5] See http://naegeleblog.wordpress.com/2009/12/05/is-barack-obama-a-racist/

[6] See, e.g., http://naegeleblog.wordpress.com/2010/01/19/emp-attack-only-30-million-americans-survive/

[7] In his book, “Dreams from My Father,” Obama wrote:

Junkie.  Pothead.  That’s where I’d been headed: the final, fatal role of the young would-be black man.

See Obama, “Dreams from My Father” (paperback “Revised Edition,” published by Three Rivers Press, 2004), p. 93; see also pp. 120, 270; http://naegeleblog.wordpress.com/2009/12/05/is-barack-obama-a-racist/.

Regardless of whether he has taken illegal drugs or not since his college years, he is occupying our White House; and sooner or later, stories will trickle out about the time he has spent there.

[8] See http://www.washingtonpost.com/wp-dyn/content/article/2010/11/12/AR2010111202846.html; see also http://naegeleblog.wordpress.com/2010/01/20/the-end-of-barack-obama/#comment-974

[9] See http://www.quinnipiac.edu/x1295.xml?ReleaseID=1538; see also http://naegeleblog.wordpress.com/2010/01/20/the-end-of-barack-obama/#comment-999

[10] See http://www.dickmorris.com/blog/obama-may-face-left-wing-primary/; see also http://naegeleblog.wordpress.com/2010/01/20/the-end-of-barack-obama/#comment-968 and http://naegeleblog.wordpress.com/2010/11/12/sarah-and-todd-palin-the-big-winners/ (“[I]t is not beyond the pale to believe that two women might face off for the American presidency in 2012, Sarah Palin and Hillary Clinton, which would be historic!”)

[11] See http://naegeleblog.wordpress.com/2009/12/05/is-barack-obama-a-racist/ and Obama, “Dreams from My Father” (paperback “Revised Edition,” published by Three Rivers Press, 2004).

[12] Paul Krugman has written a New York Times’ article entitled, “The Third Depression,” which states:

Recessions are common; depressions are rare. As far as I can tell, there were only two eras in economic history that were widely described as “depressions” at the time: the years of deflation and instability that followed the Panic of 1873 and the years of mass unemployment that followed the financial crisis of 1929-31.

. . .

We are now, I fear, in the early stages of a third depression. It will probably look more like the Long Depression than the much more severe Great Depression. But the cost—to the world economy and, above all, to the millions of lives blighted by the absence of jobs—will nonetheless be immense.

. . .

[T]he recession brought on by the financial crisis arguably ended last summer.

But future historians will tell us that this wasn’t the end of the third depression, just as the business upturn that began in 1933 wasn’t the end of the Great Depression.  . . .  [B]oth the United States and Europe are well on their way toward Japan-style deflationary traps.

See http://www.nytimes.com/2010/06/28/opinion/28krugman.html

This conclusion is consistent with the thesis of articles that I have written and interview responses that I have given; namely, we are in the midst of the “Great Depression II”—certainly in terms of the 20th and 21st Centuries—which will continue to unfold during at least the balance of this decade.  See infra n.3.

Krugman added:

As far as rhetoric is concerned, the revival of the old-time religion is most evident in Europe, where officials seem to be getting their talking points from the collected speeches of Herbert Hoover, up to and including the claim that raising taxes and cutting spending will actually expand the economy, by improving business confidence. As a practical matter, however, America isn’t doing much better. The Fed seems aware of the deflationary risks—but what it proposes to do about these risks is, well, nothing. The Obama administration understands the dangers of premature fiscal austerity—but because Republicans and conservative Democrats in Congress won’t authorize additional aid to state governments, that austerity is coming anyway, in the form of budget cuts at the state and local levels.

Why the wrong turn in policy? The hard-liners often invoke the troubles facing Greece and other nations around the edges of Europe to justify their actions. And it’s true that bond investors have turned on governments with intractable deficits. But there is no evidence that short-run fiscal austerity in the face of a depressed economy reassures investors. On the contrary: Greece has agreed to harsh austerity, only to find its risk spreads growing ever wider; Ireland has imposed savage cuts in public spending, only to be treated by the markets as a worse risk than Spain, which has been far more reluctant to take the hard-liners’ medicine.

It’s almost as if the financial markets understand what policy makers seemingly don’t: that while long-term fiscal responsibility is important, slashing spending in the midst of a depression, which deepens that depression and paves the way for deflation, is actually self-defeating.

So I don’t think this is really about Greece, or indeed about any realistic appreciation of the tradeoffs between deficits and jobs. It is, instead, the victory of an orthodoxy that has little to do with rational analysis, whose main tenet is that imposing suffering on other people is how you show leadership in tough times.

And who will pay the price for this triumph of orthodoxy?  The answer is, tens of millions of unemployed workers, many of whom will go jobless for years, and some of whom will never work again.

Amen.  Where I differ with Krugman is that his solution is more Keynesian governmental spending, with the goal of spending our way to prosperity.  As stated in articles that I have written and interview responses that I have given, the economic tsunami that Alan Greenspan unleashed has been rolling worldwide, with no end in sight.  At most, government policies can affect it at the margins—because it will run its course, essentially oblivious to government intervention.  Where and when it stops, no one knows.  Originally I predicted the 2017-2019 time frame, but it may take longer than that because of misguided and wasteful government “tinkering.”

In an editorial entitled, “The Keynesian Dead End,” the Wall Street Journal concluded that spending our way to prosperity is going out of style—and the editorial essentially rebuts the solution that Krugman recommended:

For going on three years, the developed world’s economic policy has been dominated by the revival of the old idea that vast amounts of public spending could prevent deflation, cure a recession, and ignite a new era of government-led prosperity. It hasn’t turned out that way.

. . .

The response at the White House and among Congressional leaders has been . . . Stimulus III. While talking about the need for “fiscal discipline” some time in the future, President Obama wants more spending today to again boost “demand.” Thirty months after [Obama economic adviser Larry] Summers won his first victory, we are back at the same policy stand.

The difference this time is that the Keynesian political consensus is cracking up. In Europe, the bond vigilantes have pulled the credit cards of Greece, Portugal and Spain, with Britain and Italy in their sights. Policy makers are now making a 180-degree turn from their own stimulus blowouts to cut spending and raise taxes. The austerity budget offered this month by the new British government is typical of Europe’s new consensus.

To put it another way, Germany’s Angela Merkel has won the bet she made in early 2009 by keeping her country’s stimulus far more modest. We suspect Mr. Obama will find a political stonewall this weekend in Toronto when he pleads with his fellow leaders to join him again for a spending spree.

Meanwhile, in Congress, even many Democrats are revolting against Stimulus III. The original White House package of jobless benefits and aid to the states had to be watered down several times, and the latest version failed again in the Senate late this week.  . . .  Mr. Obama is having his credit card pulled too—not by the bond markets, but by a voting public that sees the troubles in Europe and is telling pollsters that it doesn’t want a Grecian bath.

The Journal adds:

The larger lesson here is about policy. The original sin—and it was nearly global—was to revive the Keynesian economic model that had last cracked up in the 1970s, while forgetting the lessons of the long prosperity from 1982 through 2007. The Reagan and Clinton-Gingrich booms were fostered by a policy environment for most of that era of lower taxes, spending restraint and sound money. The spending restraint began to end in the late 1990s, sound money vanished earlier this decade, and now Democrats are promising a series of enormous tax increases.

Notice that we aren’t saying that spending restraint alone is a miracle economic cure. The spending cuts now in fashion in Europe are essential, but cuts by themselves won’t balance annual deficits reaching 10% of GDP. That requires new revenues from faster growth, and there’s a danger that the tax increases now sweeping Europe will dampen growth further.

President Obama’s tragic mistake was to blow out the U.S. federal balance sheet on spending that has produced little bang for the buck. . . .

With the economy in recession in 2008 and 2009, we argued that some stimulus was justified and an increase in the deficit was understandable and inevitable. However, we also argued that permanent tax cuts aimed at marginal individual and corporate tax rates would have done far more to revive animal spirits, and in our view would have led to a far more robust recovery. . . .

What the world has now reached instead is a Keynesian dead end. We are told to let Congress continue to spend and borrow until the precise moment when Summers and Mark Zandi and the other architects of our current policy say it is time to raise taxes to reduce the huge deficits and debt that their spending has produced. Meanwhile, individuals and businesses are supposed to be unaffected by the prospect of future tax increases, higher interest rates, and more government control over nearly every area of the economy. Even the CEOs of the Business Roundtable now see the damage this is doing.

A better economic policy will have to await a new Congress, which we hope at a minimum can prevent punishing tax increases. But for now the good news is that voters and markets are telling politicians to stop doing what hasn’t worked.

See http://online.wsj.com/article/SB10001424052748703615104575328981319857618.html?mod=WSJ_hp_mostpop_read

Thus, economic “thinkers” continue to flail around, while the Great Depression II takes its toll in terms of horrendous human suffering worldwide, with no end in sight.

[13] See http://naegeleblog.wordpress.com/2010/04/23/is-financial-reform-simply-washingtons-latest-boondoggle/

[14] See http://www.rasmussenreports.com/public_content/politics/current_events/healthcare/health_care_law

[15] See, e.g.http://naegeleblog.wordpress.com/2010/02/09/russias-putin-is-a-killer/ and http://naegeleblog.wordpress.com/2010/02/09/russias-putin-is-a-killer/#comment-1014

[16] See, e.g.http://naegeleblog.wordpress.com/2010/02/20/israels-senseless-killings-and-war-with-iran/ [Please note: the postings beneath this article are important as well]

[17] See http://www.spiegel.de/international/world/0,1518,723814,00.html

[18] In his announcement with respect to McChrystal, Obama stated:

I don’t make this decision based on any difference in policy with Gen. McChrystal, as we are in full agreement about our strategy. Nor do I make this decision out of any sense of personal insult.

See http://blogs.wsj.com/washwire/2010/06/23/obama-on-mcchrystal-nothing-personal/

It has been said before, and it bears repeating, that if one wishes to watch Barack Obama lie, all one needs to do is watch his lips move.

[19] See, e.g., http://www.dickmorris.com/blog/2010/07/28/leaked-report-hurts-obama/#more-1230 (“Having already lost all Republicans and almost all independents, Obama is shedding Democrats these days.  . . .  [W]hile liberals have increasing reason to question Obama’s performance on their litmus-test issues, they also have increasing cause to wonder at his competence”).

[20] He is not evil in the sense of being the “antichrist,” as some would suggest, but evil in the sense of leading the United States in the wrong direction and having lied to the American people in the process of doing so.  As stated previously:

It has been said: “Jimmy Carter may be heading to #2 on the [list of] all-time worst presidents in American history, thanks to ‘O.’” This is an understatement.  When history is written, Barack Obama may be hated more than George W. Bush has been by the Democrats, more than Bill and Hillary Clinton have been hated by the Republicans, more than Nixon was hated by the Democrats, and even more than Johnson was hated by a broad swath of the American electorate . . . and the list goes on and on.  Obama may emerge as the most hated president in history.

See http://naegeleblog.wordpress.com/2010/01/20/the-end-of-barack-obama

[21] With McChrystal’s military career at an end, there will be nothing to prevent him from lashing out at Obama and telling the truth (e.g., in memoirs released shortly before the 2012 presidential elections, which tell the unvarnished truth about Obama’s handling of the war in Afghanistan and sear Obama in explicit terms):

Obama seemed to suggest that McChrystal’s military career is over, saying the nation should be grateful “for his remarkable career in uniform” as if that has drawn to a close.

McChrystal left the White House after the meeting and returned to his military quarters at Washington’s Fort McNair.

See http://www.msnbc.msn.com/id/37866754/ns/us_news-military/

Former adviser to President Bill Clinton and political pundit Dick Morris adds:

Relieving the general of command sends a message that Obama is thin-skinned, arrogant, and easily offended.

Coming at the same time that the failure of the Obama Administration to clean up the oil spill in the Gulf is already rankling liberal voters, the McChrystal comments will add to their doubts about Obama. They already are against his decision to send additional troops there and have long believed that we should not be fighting in Afghanistan. By calling attention to how badly the war is going and the disarray in the president’s foreign policy apparatus, the McChrystal interview can only highlight and underscore these concerns and further dampen liberal enthusiasm for Obama.

Neither the oil spill nor the Afghan War will drive any liberals to vote for conservatives or induce Democrats to vote Republican. But they both will hold down Democratic turnout and reinforce cynicism about the Obama presidency on the left. Those initially attracted by Obama’s charisma will be driven away by these twin failures.

The Democratic Party is really a synthesis of environmentalists and peace advocates with a few gay rights activists and public employee unions thrown in. Now, Obama has alienated both the green and the anti-war segments of the party. And the continuing spillage from the Gulf oil well and from the General’s mouth will further damage his standing with his political base.

Whatever the fate of General McChrystal or of the American involvement in the war, the mounting casualty lists will drag down Obama’s prospects in November still further and depress his ratings in the days ahead.

See http://www.dickmorris.com/blog/2010/06/23/mcchrystals-attack-hurts-obamas-left-wing-base/#more-1096

[22] See http://naegeleblog.wordpress.com/2009/12/05/is-barack-obama-a-racist/

While some of his far-Left “true believers” may have read the book and agreed with his core beliefs, the majority of Americans did not; and they had no idea how much his future policies would differ from what they perceived as the mainstream views that he was espousing on the campaign trail.

[23] For example, the author Michael Hastings writes:

The general’s staff is a handpicked collection of killers, spies, geniuses, patriots, political operators and outright maniacs . . . , and they pride themselves on their can-do attitude and their disdain for authority.

. . .

[McChrystal] also set a manic pace for his staff, becoming legendary for sleeping four hours a night, running seven miles each morning, and eating one meal a day. (In the month I spend around the general, I witness him eating only once.) It’s a kind of superhuman narrative that has built up around him, a staple in almost every media profile, as if the ability to go without sleep and food translates into the possibility of a man single-handedly winning the war.

See “The Runaway General” by Michael Hastings, Rolling Stone (June 22, 2010), http://www.rollingstone.com/politics/news/17390/119236#

Barack Obama is quoted by the national media as having said that the article showed “poor judgment,” and that he wanted to talk with McChrystal before making any decision about whether he should remain the U.S. commander in Afghanistan.

See, e.g., http://www.politico.com/news/stories/0610/38837.html and http://online.wsj.com/article/SB10001424052748704853404575322354071542896.html?mod=WSJ_hpp_MIDDLENexttoWhatsNewsTop

While it was surprising that McChrystal gave the Rolling Stone any access, much less seemingly unfettered access to his innermost thoughts and beliefs—especially given the Rolling Stone‘s reputation—the fact is that he did, and he and his staff spoke their minds, and their words are now part of American history.

The article adds:

After arriving in Afghanistan last June, [McChrystal] conducted his own policy review, ordered up by Defense Secretary Robert Gates. The now-infamous report was leaked to the press, and its conclusion was dire: If we didn’t send another 40,000 troops—swelling the number of U.S. forces in Afghanistan by nearly half—we were in danger of “mission failure.” The White House was furious. McChrystal, they felt, was trying to bully Obama, opening him up to charges of being weak on national security unless he did what the general wanted. It was Obama versus the Pentagon, and the Pentagon was determined to kick the president’s ass.

. . .

Obama has quietly begun to back away from the deadline he set for withdrawing U.S. troops in July of next year. The president finds himself stuck in something even more insane than a quagmire: a quagmire he knowingly walked into, even though it’s precisely the kind of gigantic, mind-numbing, multigenerational nation-building project he explicitly said he didn’t want.

It is reminiscent of “Brer Rabbit And The Tar Baby,” and Afghanistan is becoming Obama’s “tar pit.”

See, e.g.http://en.wikisource.org/wiki/Uncle_Remus%3A_His_Songs_and_His_Sayings/The_Wonderful_Tar-Baby_Story

The article continues:

In private, Team McChrystal likes to talk shit about many of Obama’s top people on the diplomatic side. One aide calls Jim Jones, a retired four-star general and veteran of the Cold War, a “clown” who remains “stuck in 1985.” Politicians like McCain and Kerry, says another aide, “turn up, have a meeting with Karzai, criticize him at the airport press conference, then get back for the Sunday talk shows. Frankly, it’s not very helpful.” Only Hillary Clinton receives good reviews from McChrystal’s inner circle. “Hillary had Stan’s back during the strategic review,” says an adviser. “She said, ‘If Stan wants it, give him what he needs.’”

. . .

 

At one point on his trip to Paris, McChrystal checks his BlackBerry. “Oh, not another e-mail from [Special Representative to Afghanistan Richard] Holbrooke,” he groans. “I don’t even want to open it.” He clicks on the message and reads the salutation out loud, then stuffs the BlackBerry back in his pocket, not bothering to conceal his annoyance.

“Make sure you don’t get any of that on your leg,” an aide jokes, referring to the e-mail.

. . .

When it comes to Afghanistan, history is not on McChrystal’s side. The only foreign invader to have any success here was Genghis Khan—and he wasn’t hampered by things like human rights, economic development and press scrutiny.

. . .

The very people that [McChrystal's military strategy known as counterinsurgency, or] COIN seeks to win over—the Afghan people—do not want us there.  . . .  There is a reason that President Obama studiously avoids using the word “victory” when he talks about Afghanistan. Winning, it would seem, is not really possible. Not even with Stanley McChrystal in charge.

The media and politicians like Barack Obama said the same thing about George W. Bush’s—and David Petraeus’—”surge” in Iraq, and they were mistaken.

[24] The highly-respected Rasmussen polling organization found in results that were released on June 25, 2010:

Forty-seven percent (47%) of U.S. voters agree that it was appropriate for President Obama to fire America’s top commander in Afghanistan this week, according to a new Rasmussen Reports national telephone survey.

Thirty-six percent (36%) disagree and say the president should not have removed General Stanley McChrystal from his command. Another 17% are not sure.

Just 32%, however, believe it was appropriate for McChrystal to criticize the president and other top U.S. officials in an interview with Rolling Stone magazine. Fifty percent (50%) feel the general’s public comments were not appropriate. Nearly one-out-of-five voters (18%) are undecided.

Publication of that interview prompted the president to call McChrystal back to Washington and, during a private White House meeting, to accept his resignation. Obama then announced that General David Petraeus, who commanded U.S. troops in Iraq in 2007 and 2008, will take his place.

Forty-seven percent (47%) view the naming of Petraeus as the new top commander in Afghanistan as good for the U.S. war effort there. Only nine percent (9%) say it’s a bad move, while 30% think it will have no impact. Fourteen percent (14%) aren’t sure.

Voter confidence in the course of the war in Afghanistan has been falling in recent weeks. Just 41% of voters now believe it is possible for the United States to win the nearly nine-year-old war in Afghanistan. Thirty-six percent (36%) disagree and say it is not possible for America to win the war. Another 23% are not sure.

See http://www.rasmussenreports.com/public_content/politics/obama_administration/june_2010/47_support_obama_s_decision_to_fire_mcchrystal_36_oppose

[25] In an editorial entitled, “The Petraeus Hail Mary,” the Wall Street Journal pointed out the divisive effect that Biden has had with respect to American policies and their implementation in Afghanistan.  Biden has been a “loose canon,” who was fully capable of fabricating facts if not engaging in outright lies.

See http://online.wsj.com/article/SB10001424052748704629804575325073086949444.html?mod=WSJ_Opinion_LEADTop (“Mr. Obama said yesterday that no one individual is indispensable in war, but if any single person is, it is a President. Mr. Obama too often gives the impression of a leader asking, ‘Won’t someone rid me of this damn war?’”); see also http://naegeleblog.wordpress.com/2009/12/26/obama-in-afghanistan-doomed-from-the-start/#comment-169

Former President Bill Clinton was reluctant to take on the military politically, and wisely so—much to the chagrin of his far-Left constituents, some of whom believe America does not need to be strong militarily.  As I have stated before: “America’s economic and military strength go hand in hand. Both are indispensable ingredients of our great nation’s future strength.”

See http://www.realclearpolitics.com/news/tms/politics/2009/Apr/08/euphoria_or_the_obama_depression_.html

[26] If Obama’s presidency does not end before 2012, it is likely that he will not run for reelection, just as Truman declined to run in the midst of the Korean War, and Lyndon Johnson declined to run in the midst of the Vietnam War.

[27] See, e.g., http://dyn.politico.com/printstory.cfm?uuid=1FF04086-18FE-70B2-A8502AE14AB8C592 and http://naegeleblog.wordpress.com/2009/12/05/is-barack-obama-a-racist/

[28] See, e.g., http://naegeleblog.wordpress.com/2010/10/04/john-f-kennedy-the-most-despicable-president-in-american-history/ and http://naegeleblog.wordpress.com/2010/03/20/ronald-reagan-and-john-f-kennedy-a-question-of-character

[29] Also, there is the issue of personal Obama family extravagances at the expense of U.S. taxpayers, especially at a time when so many Americans are suffering.  See, e.g.http://www.dailymail.co.uk/news/worldnews/article-1298063/Michelle-Obama-takes-daughter-Sasha-Spanish-getaway–leaves-birthday-boy-Barack-behind.html (“Michelle Obama is set to holiday with daughter Sasha on Spain’s Costa del Sol.  . . .  Mrs Obama . . .  has reserved 30 rooms at a five-star hotel”)

[30] Lyndon Johnson chose not to run for reelection in 1968; and Obama advised New York Congressman Charles Rangel to end his political career with dignity as well.  Hopefully he follows his own advice.

See http://www.politico.com/blogs/bensmith/0710/Obama_Time_for_Rangel_to_end_career_with_dignity.html





Sarah And Todd Palin: The Big Winners?

12 11 2010

By Timothy D. Naegele[1]

The biggest winners in the 2010 American elections may prove to be former Vice Presidential candidate and Alaska Governor Sarah Palin, and her husband Todd.  She became the darling of the Tea Party movement, which energized the moribund Republican Party and may decide its future—and that of its “establishment.”  While there is a long list of other potentially-strong GOP candidates, the often-outspoken Sarah Palin has “caught fire” and connects with her audiences like few politicians can.[2] Barack Obama did this prior to the 2008 elections, but he has lost his luster and credibility, and faded.[3]

Palin has established herself as a force to be feared and reckoned with in Republican politics, and is formidable.  As Michael D. Shear noted in the New York Times:

Ms. Palin wasn’t on any ballot. But the self-described “Mama Grizzly” had plenty at stake  . . .  as she sought to bolster her credentials as the Republican Party’s most powerful kingmaker and the voice of the newly empowered Tea Party movement. Ms. Palin was anything but timid in the midterm elections, endorsing dozens of candidates, including in some of the most high-profile races.[4]

Indeed, most candidates won whom Sarah Palin had endorsed—resulting in “plenty of victories that Ms. Palin and her allies have already begun to point to as evidence of her political prowess and her ability to shape and direct the unwieldy frustration that is fueling American politics.”[5] A political analyst for CBS News, Nicolle Wallace, stated: “My observation of Sarah Palin is that she is one of the shrewdest political figures in our country at this moment.  She’s also one of the most electric.”[6]

Germany’s SPIEGEL ONLINE observed:

“If there was one true victor on election night  . . .  it was the Tea Party movement. . . .  What matters now is whether the Tea Party can manage to establish itself as an independent power in Washington, as a voice of dissent next to the Republicans—in order to profit even more from the wave of dissatisfaction that is sweeping the land.”

“Then anything would be possible in two years. Even the prospect of the former governor of Alaska, Sarah Palin, as the first female president of the United States.”[7]

If Sarah Palin is a winner, one might ask: why include Todd Palin too?  Because he is a man’s man; and for many men such as yours truly, the Palins are running as a team—as they did in Alaska—and Todd adds legitimacy to Sarah Palin’s candidacy and potentially brings in male voters.  For far-Left and mainstream Democrats alike, especially women, Hillary Clinton provided legitimacy to Bill Clinton’s runs for the presidency, amidst almost non-stop allegations of peccadillos, adultery and worse.

As the 2012 elections loom, and as Barack Obama’s presidency effectively ends[8], Hillary and Bill Clinton represent a team to which many Democrats may flock once again.  For members of the Tea Party movement and Republicans and “disenchanted” Democrats, the Palins represent a breath of fresh air too.  Indeed, it is not beyond the pale to believe that two women might face off for the American presidency in 2012, Sarah Palin and Hillary Clinton, which would be historic!

© 2010, Timothy D. Naegele


[1] Timothy D. Naegele was counsel to the United States Senate’s Committee on Banking, Housing, and Urban Affairs, and chief of staff to Presidential Medal of Freedom and Congressional Gold Medal recipient and former U.S. Senator Edward W. Brooke (R-Mass).  He practices law in Washington, D.C. and Los Angeles with his firm, Timothy D. Naegele & Associates, which specializes in Banking and Financial Institutions Law, Internet Law, Litigation and other matters (see www.naegele.com and http://www.naegele.com/naegele_resume.html).  He has an undergraduate degree in economics from UCLA, as well as two law degrees from the School of Law (Boalt Hall), University of California, Berkeley, and from Georgetown University.  He is a member of the District of Columbia and California bars.  He served as a Captain in the U.S. Army, assigned to the Defense Intelligence Agency at the Pentagon, where he received the Joint Service Commendation Medal.  Mr. Naegele is an Independent politically; and he is listed in Who’s Who in America, Who’s Who in American Law, and Who’s Who in Finance and Business. He has written extensively over the years (see, e.g., http://www.naegele.com/whats_new.html#articles), and can be contacted directly at tdnaegele.associates@gmail.com

[2] Right after the 2010 elections, the Rasmussen polling organization released the following results, looking ahead to the 2012 elections:

On the Republican side, it’s a dead heat between the ex-governors—Mitt Romney of Massachusetts, Mike Huckabee of Arkansas and Sarah Palin of Alaska, according to a new Rasmussen Reports national telephone survey of Likely GOP Primary voters.

Asked who they would vote for if the Republican presidential primary were held today, 20% say Romney, 19% Huckabee and another 19% Palin. . . .

Romney and Palin are tied among male GOP voters, while Huckabee has a slight edge among female voters.

In October 2009 when Likely Republican primary voters were given a choice of five potential presidential nominees, Huckabee led with 29% support, followed by Romney with 24% of the vote and Palin at 18%.

Rounding out the list of seven candidates chosen by Rasmussen Reports for the question, with their levels of support, are former House Speaker Newt Gingrich (13%), Minnesota Governor Tim Pawlenty (6%), Texas Congressman Ron Paul (5%) and Indiana Governor Mitch Daniels (3%).  Seven percent (7%) prefer some other candidate, and eight percent (8%) are undecided.

See http://www.rasmussenreports.com/public_content/politics/general_politics/november_2010/gop_voters_like_three_candidates_best_for_2012

Thus, Sarah Palin has moved up in the polling results; and the full effects of Tea Party-supporter voting in the GOP primaries may not be reflected in the Rasmussen polling data.

[3] See, e.g., http://naegeleblog.wordpress.com/2010/01/20/the-end-of-barack-obama (see postings beneath the article as well)

[4] See http://thecaucus.blogs.nytimes.com/2010/11/03/palin-proves-that-mama-grizzly-has-bite/

[5] See id; see also http://www.usatoday.com/life/television/news/2010-11-12-1Apalin12_CV_N.htm

[6] See http://www.cbsnews.com/stories/2010/11/03/earlyshow/main7017707.shtml

Among the winners whom Palin endorsed: John Boozman of Arkansas for the U.S. Senate; Rand Paul of Kentucky for the Senate; Kelly Ayotte of New Hampshire (which holds the first presidential primary) for the Senate; Pat Toomey of Pennsylvania for the Senate; Susana Martinez of New Mexico for governor (who may prove helpful with the growing block of Hispanic voters); and Nikki Haley of South Carolina for governor (who may be helpful when Palin’s presidential campaign moves to South Carolina).

As the New York Times’ Michael D. Shear points out, there were losers too:

In Delaware, Ms. Palin all but created the Tea Party candidate Christine O’Donnell, helping thrust the young woman onto the national political stage over the strenuous objections of the Republican elite in Washington. And in the end, Ms. O’Donnell never had a chance, handing what most likely would have been a Republican Senate seat to Democrats.

And in Nevada, Republican celebration was muted when their top target—Harry Reid, the Senate’s majority leader—handily defeated Ms. Palin’s chosen candidate, Sharron Angle, to return to Washington.

In Ms. Palin’s home state, Alaska, political turmoil still reigns thanks to her support of Joe Miller, the Tea Party favorite who defeated Senator Lisa Murkowski in the state’s  Republican primary this year. But with “write-ins” leading Mr. Miller, Ms. Murkowski may retain her seat.

Still, as potential 2012 presidential contenders begin lining up support and cashing in chits, Ms. Palin will have plenty of places to look for support. In addition to the Senate and governors’ races, there are dozens of lesser-known House candidates who had earned her blessing.

See http://thecaucus.blogs.nytimes.com/2010/11/03/palin-proves-that-mama-grizzly-has-bite/

[7] See http://www.spiegel.de/international/world/0,1518,727235,00.html

[8] See, e.g., http://naegeleblog.wordpress.com/2010/01/20/the-end-of-barack-obama (see postings beneath the article as well)





John F. Kennedy: The Most Despicable President In American History

4 10 2010

By Timothy D. Naegele[1]

Gannett’s USA Today began publishing its daily newspapers in Washington, D.C., and I have always been proud of the publication and have praised it.  I believed it was one of the finest newspapers in the United States, if not the world; and I have been pleased with its success.  I have encouraged friends, business associates, and acquaintances to read it because of what I believed was objective reporting, or certainly very close to it.

However, I was rudely awakened by its recent series of articles about John F. Kennedy and his family, which were a travesty and a lie.[2] Sadly, USA Today has become a participant in the deliberate distortion of history.  There was not merely one isolated article about the Kennedys, but it was an unprecedented series—which made matters far worse and even more irresponsible.  Whoever approved the series should be fired immediately.  Wholesale distortions of history by a mainstream publication such as this one warrant and, in fact, demand nothing less.

John F. Kennedy was a fraud, pure and simple. When he died, his “image” was frozen in time, but the truth is grotesque. To lionize him like USA Today has done is a crime, and unconscionable.  The once-excellent and seemingly objective USA Today has reached new lows by publishing this series about Kennedy—which is the moral equivalent of running a praiseworthy series of articles about Adolf Hitler or Joseph Stalin.

USA Today failed to mention that John F. Kennedy was possibly the most morally corrupt and reckless president in American history, who came tragically close to bringing about a “nuclear winter” that might have destroyed the United States and other parts of the world.  Also, he plunged America into the Vietnam war.  USA Today’s entire series would fall like a “house of cards” if the truth about Kennedy and his family had been told, instead of repeating the factual distortions that have been spun since he was assassinated in Dallas.

There have been two outstanding books written about Kennedy and his life, and that of his family: American historian Thomas C. Reeves’ “A Question of Character: A Life of John F. Kennedy”[3] and Pulitzer Prize winning investigative journalist Seymour M. Hersh’s “The Dark Side of Camelot.”[4] First published in 1997, Hersh’s book is a companion to Reeves’ equally fine book, which was published in the same year.  To have two truly outstanding books introduced at the same time, on the same subject, is interesting unto itself.

Like Reeves, Hersh laid bare the myth of “Camelot” for all to see. The Kennedy family and its sycophants have attempted to perpetrate that myth since the day Kennedy was shot—as well as myths surrounding the entire family, which is surely the most dysfunctional family ever to achieve significant political power in American history. Indeed, after reading both books, one wonders whether there was anything decent or moral about the family, certainly the male Kennedys.

Unlike Reeves, Hersh does not mention Ted Kennedy’s culpability in the tragic death of Mary Jo Kopechne in 1969, just as she was about to celebrate her 29th birthday, and the ensuing Kennedy cover-up.  Similarly, Hersh makes scant mention of Marilyn Monroe, with whom both JFK and, after him, Bobby Kennedy had affairs, nor does Hersh discuss the possibility that she was murdered. Instead, he discusses JFK’s long-time relationship with Judith Campbell Exner, as well as his affair with an East German “prostitute” by the name of Ellen Rometsch.

Kennedy’s reckless affairs with women were only outdone by his irresponsible and dangerous relationships with mobsters such as Chicago crime boss Sam Giancana. These two character flaws merged when both Kennedy and Giancana had sexual liaisons with Exner, who was used as their go-between. Indeed, it is doubtful whether Kennedy would have become the president-elect in 1960 if the Mob had not helped him in Illinois and West Virginia—and Giancana claimed credit for that.  Kennedy was the son of a bootlegger, and the apple did not fall far from the tree, with respect to all three Kennedy brothers who entered national politics.

The thread that runs through the writing of Reeves and Hersh, and through JFK’s life, is utter recklessness—which not only endangered his life, but the lives of those with whom he came into contact, and every American. Perhaps the most vivid example is the “Cuban Missile Crisis” that Hersh documents in considerable detail, which might have been averted if JFK and Bobby had used their back-channel communications effectively with the Soviet Union’s Nikita Khrushchev and the Kremlin.

Instead, the two Kennedy brothers turned the crisis into a grand display of American military might—to further JFK’s political ambitions—which constituted recklessness that might have brought about a “nuclear winter.” Hersh states emphatically: “[Jack] Kennedy did not dare tell the full story of the Soviet missiles in Cuba, because it was his policies that brought the weapons there.”[5]

Those Americans who believed in JFK, as yours truly did[6]—and to a lesser extent in Bobby—were deceived and disillusioned with respect to almost every issue. The public perception bears almost no relationship to the actual facts. Indeed, thirty-four years after his death, the American people finally learned the truth about JFK (and his “hatchet man,” Bobby) from these two books and other sources. Even then, as Hersh describes in considerable detail, Kennedy operatives may have destroyed large amounts of historically-important documents.

Vast numbers of documents are still held by the Kennedy Library with respect to both JFK and Bobby, which have never been made available to the public.  This is a scandal unto itself.  Not the least of these are medical records about JFK’s health, which have only been reviewed by a handful of Kennedy “sycophant-like” writers.  Almost 50 years after Kennedy’s death, the full extent of his life-long medical problems is still being withheld from the American people and conservative scholars, and Reeves recounts many of those problems.

The failed “Bay of Pigs” invasion of Cuba, where Fidel Castro humiliated JFK and “the Kennedys,” led to almost 50 years of enslavement for the Cuban people, and repeated attempts by the two Kennedy brothers to have Castro assassinated. This fiasco has potential relevance today—with respect to the presidency of Barack Obama—because, as Hersh describes, there was a “prevailing sense that Kennedy could do no wrong.”[7] In fact, the Kennedy brothers ignored advice from the CIA and the military; and like Lyndon Johnson vis-à-vis later stages of the Vietnam war, they ran the “show” themselves and then tried to blame others when it failed colossally.

Ample mention has been made of JFK’s perpetual “thirst” for women.  Indeed, the three Kennedy brothers, Jack, Bobby and Ted, trashed what was sacred in their Catholic religion, such as the sanctity of marriages.  For them, nothing seemed sacred, ever.  Hersh uses statements from Secret Service agents to describe the president’s penchant for prostitutes, and how they and other women were “procured” by Dave Powers and some of Kennedy’s other “New Frontiersmen.” Jackie Kennedy’s travels were carefully monitored so that she would not return to find the president and women “frolicking” in the White House swimming pool or in the family quarters.

What went on in hotels and private homes, wherever JFK traveled, is described as well. The book also discusses JFK’s venereal disease(s)[8]; and the risks that he and Powers took by cavorting with women who had been waived through routine Secret Service checks without prior clearances, and who might have carried weapons, listening devices, drugs or something similar.

There is no question that Kennedy launched this nation into Vietnam; and his secretary of defense, Robert McNamara, was the architect of that lost war and the enormous suffering that it produced. Almost 60,000 brave Americans died, some of whom were my friends; and it impaled this nation’s honor on the horns of a tragedy that still haunts policy makers and citizens alike. What was not known generally until Hersh’s book is that JFK “had a chance in 1961 to disengage from an American involvement in South Vietnam.”[9] Instead, he chose to go to war, and to spend the blood of young Americans. Hersh states, again emphatically: “Whatever Jack Kennedy’s intentions were, Vietnam was his war, even after his death.”[10]

Hersh describes the constant pressure especially on CIA operatives, which was brought by JFK and Bobby, to have foreign leaders such as Castro killed.  Mob operatives were used with Bobby’s knowledge and involvement, even though as the U.S. Attorney General he was ostensibly prosecuting the Mob. The family patriarch Joseph P. Kennedy’s ties to the Mob are detailed, as well as his ruthlessness and penchant for women.  JFK’s first marriage to Durie Malcolm is also described, and his father’s efforts to expunge the record.

Hersh discusses how Bobby and Jackie believed that JFK was struck down by a “domestic conspiracy,” probably involving Mob boss Giancana or others.[11] However, Hersh states: “Robert Kennedy did nothing to pursue the truth behind his brother’s death [in 1963]. . . . The price of a full investigation was much too high: making public the truth about President Kennedy and the Kennedy family. It was this fear, certainly, that kept Robert Kennedy from testifying before the Warren Commission.”[12] Aside from prostitutes and other women, and close Mafioso ties and health issues, and the presidential election in 1960 that was stolen from Richard M. Nixon, Hersh details “cash payments” that JFK requested and received—which monies were ostensibly used to buy Ellen Rometsch’s “silence.”

A footnote in history, perhaps, but a very important one is that JFK hurt his back cavorting in a West Coast swimming pool. He was “forced to wear a stiff brace that stretched from his shoulders to his crotch.” As Hersh concludes: “The brace would keep the president upright for the bullets of Lee Harvey Oswald.”[13] Hence, JFK’s sexual escapades may have contributed to his tragic death.

Today, Kennedy is not someone to look up to, much less deify, as many of us thought when he was president. That conclusion was reached reluctantly by lots of Americans, years ago, with a sense of sadness rather than anger.  Like the potentate in Hans Christian Andersen’s fairy tale, “The Emperor’s New Clothes,” the myth about Kennedy and his feet of clay have become clear for all to see with the passage of time.[14]

Greatness is often achieved in times of war, and Kennedy never won the war with Cuba, much less the Vietnam war that he started, nor did he win the Cold War—which Ronald Reagan and George H.W. Bush won.  Kennedy was a tragic Shakespearean figure who may be forgotten and consigned to the dustheap of history, in no small part because of the question of character that both Reeves and Hersh described brilliantly in their terrific books.

USA Today’s series of articles extolling the virtues of Kennedy and his family are shameful, and constitute the gross distortion of history.  Indeed, they seem to represent yet another attempt by America’s discredited Left to glorify its politicians, regardless of how corrupt and immoral they may be.

Few young Americans even know who John F. Kennedy was—or care about him—because less than a handful of his positive accomplishments had any lasting significance.  Like former President William McKinley before him, the fact that an assassin cut short Kennedy’s life and presidency might be all that Americans recall about him 50 years from now.[15]

© 2010, Timothy D. Naegele


[1] Timothy D. Naegele was counsel to the United States Senate’s Committee on Banking, Housing, and Urban Affairs, and chief of staff to Presidential Medal of Freedom and Congressional Gold Medal recipient and former U.S. Senator Edward W. Brooke (R-Mass).  He practices law in Washington, D.C. and Los Angeles with his firm, Timothy D. Naegele & Associates, which specializes in Banking and Financial Institutions Law, Internet Law, Litigation and other matters (see www.naegele.com and http://www.naegele.com/naegele_resume.html).  He has an undergraduate degree in economics from UCLA, as well as two law degrees from the School of Law (Boalt Hall), University of California, Berkeley, and from Georgetown University.  He is a member of the District of Columbia and California bars.  He served as a Captain in the U.S. Army, assigned to the Defense Intelligence Agency at the Pentagon, where he received the Joint Service Commendation Medal.  Mr. Naegele is an Independent politically; and he is listed in Who’s Who in America, Who’s Who in American Law, and Who’s Who in Finance and Business. He has written extensively over the years (see, e.g., http://www.naegele.com/whats_new.html#articles), and can be contacted directly at tdnaegele.associates@gmail.com

[2] See http://specials.usatoday.com/jfk/

[3] See http://www.amazon.com/Question-Character-Life-John-Kennedy/dp/0029259657/ref=tmm_hrd_title_0 and http://www.amazon.com/Question-Character-Life-John-Kennedy/product-reviews/0029259657/ref=cm_cr_dp_synop?ie=UTF8&showViewpoints=0&sortBy=bySubmissionDateDescending#R2SDUMI20EEA8Z

[4] See http://www.amazon.com/Dark-Side-Camelot-Seymour-Hersh/dp/0316359556 and http://www.amazon.com/Dark-Side-Camelot-Seymour-Hersh/product-reviews/0316359556/ref=cm_cr_dp_synop?ie=UTF8&showViewpoints=0&sortBy=bySubmissionDateDescending#R3Q8NBIYKP5W01

[5] See Seymour M. Hersh, “The Dark Side of Camelot,” p. 343.

[6] Although I was not old enough to vote for him, I was in the Los Angeles Coliseum and watched while he delivered his acceptance speech at the close of the Democrats’ convention in 1960.  Also, despite growing up in a “devoutly” Republican family, I registered to vote as a Democrat when I was able to do so, largely because of him.

After law school at Berkeley—where I had walked out of one of my classrooms to learn that he had been shot in Dallas—I spent two years at the Pentagon and had an excellent offer to return thereafter to a wonderful law firm in San Francisco, for which I had worked briefly before entering the Army.  Instead, I went to work on Capitol Hill, in no small part because of Kennedy and the call to government service that his words engendered (e.g., “Ask not what your country can do for you—ask what you can do for your country”).

In short, Kennedy had changed the course of my life, which is why the truth about his life—and the fraud that was “Camelot”—needs to be exposed, not covered up or papered over as USA Today has done so irresponsibly.

[7] Id at  202.

[8] Id at 230.

[9] Id at 265.

[10] Id at 437.

I know an outstanding reporter with impeccable, world-class credentials who is based in Washington, D.C.  This person covered the Vietnam war and other wars up to and including the present day.  I admire and respect the person’s experience, opinions and judgment greatly.  In an e-mail message that I received on July 29, 2010, the person wrote:

Tim, [w]e won the Vietnam war – and Congress lost it.

Let me explain.

Last US soldier left Vietnam March 29, 1973.

Saigon fell April 15, 1975.

ARVN – South Vietnamese army – did very well on its own for two years with US military assistance, but no US soldiers, not even as advisers to ARVN.

Then Congress, in its infinite wisdom, cut off all further military aid to Saigon.

ARVN saw no point in continuing to fight, stabbed in the back by the US Congress.

Gen. Giap, in his memoirs, says Hanoi was taken by surprise by what Congress did because they thought that taking Saigon would not be within their reach for two more years.

So Giap improvised an offensive – and Saigon fell without a fight.

I have no reason to believe that this person’s assessment is inaccurate in any respect.  I will not disclose the person’s identity while he or she is alive, certainly without permission to do so.

[11] Id at 450.

[12] Id at 456.

[13] Id at 439.

[14] See, e.g., http://en.wikisource.org/wiki/The_Emperor’s_New_Clothes

[15] See also Timothy D. Naegele, “Ronald Reagan and John F. Kennedy: A Question of Character”—http://naegeleblog.wordpress.com/2010/03/20/ronald-reagan-and-john-f-kennedy-a-question-of-character/





The Economic Tsunami Continues Its Relentless And Unforgiving Advance Globally

27 09 2010

By Timothy D. Naegele[1]

The Wall Street Journal has an article about the EU entitled, “Currency Union Teetering, ‘Mr. Euro’ Was Forced to Act,” which is worth reading and reflecting on seriously.[2] It represents an excellent discussion of what has happened in the past.  However, its conclusions are sobering and ominous:

[F]our months later, the root causes of the Greek crisis remain: There is no central authority to even coordinate national tax-and-spending policies.

In the past month, financial markets have turned their sights on Ireland and Portugal. Doubts remain over the solvency of banks on Europe’s stricken fringe. That leaves them dependent on [the European Central Bank president Jean-Claude Trichet]‘s largesse, in the form of “temporary” lending facilities introduced by the ECB when the crisis first hit.

Despite Mr. Trichet’s assurances that the bond-buying program is a stop-gap, it not only continues but has also increased in recent weeks—with no end in sight.

Put succinctly, Europe is still on the brink. It is foolish to believe otherwise. The “green shoots” that have appeared recently are an “illusion” and merely a brief respite in the midst of a maelstrom, which economic historians will describe as the “Great Depression II” (or by some similar name) 20-40 years from now.

Americans and their counterparts around the world have lost faith in their governments, and rightly so[3]; and the governments have come closer to exhausting all of their viable economic options. As this becomes increasingly clear, and as governments thrash about trying to find solutions that do not exist, and as politicians continue to lie—which after all is what they are most proficient at doing—the economic tsunami will continue to take its toll and run its course worldwide during the balance of this decade.

It will get very ugly, economically, socially and politically. Barack Obama will be swept out of office in the United States, and this process has begun already. It will accelerate with November’s elections. He is caught in the twin pincers of an economy in decline that he cannot influence except negatively, and an Afghan war that cannot be won. Republicans and Independents do not support him now; and his own Democrats are deserting him.

The slippery slope out the White House door will follow, like it did for Lyndon Johnson prior to the presidential election of 1968, when the political consequences of the Vietnam war made him unelectable.  Obama will return either to Chicago or Honolulu to lick his wounds and set up his presidential library, and assume an “elder statesman” role—similar to Bill Clinton—after only one term in office.

The efforts of Jean-Claude Trichet, or “Mr. Euro,” will prove similar to measures undertaken to put Humpty Dumpty back together again.  Trichet is not “Superman,” and he will lack the necessary skills; and the policy options will have been exhausted. Panics may ensue in the financial markets; and the recent crises may seem like child’s play by comparison to what is coming. The “Band-Aids” that Trichet, America’s Federal Reserve Chairman Ben Bernanke and others applied will be ripped asunder as the economic tsunami continues its relentless and unforgiving advance globally.[4]

Hold on tight. It is apt to get very ugly. The euro zone will unravel, which is likely to be a relatively small but critical part of what will be happening worldwide; and financial turmoil will engulf the euro-zone nations. There will be nobody of consequence in charge economically or politically in the United States or other countries. And the human suffering and chaos will be unfathomable.[5] Throw military and national security issues into the mix, and the results may be explosive.

 

© 2010, Timothy D. Naegele


[1] Timothy D. Naegele was counsel to the United States Senate’s Committee on Banking, Housing, and Urban Affairs, and chief of staff to Presidential Medal of Freedom and Congressional Gold Medal recipient and former U.S. Senator Edward W. Brooke (R-Mass).  He practices law in Washington, D.C. and Los Angeles with his firm, Timothy D. Naegele & Associates, which specializes in Banking and Financial Institutions Law, Internet Law, Litigation and other matters (see www.naegele.comand http://www.naegele.com/naegele_resume.html).  He has an undergraduate degree in economics from UCLA, as well as two law degrees from the School of Law (Boalt Hall), University of California, Berkeley, and from Georgetown University.  He is a member of the District of Columbia and California bars.  He served as a Captain in the U.S. Army, assigned to the Defense Intelligence Agency at the Pentagon, where he received the Joint Service Commendation Medal.  Mr. Naegele is an Independent politically; and he is listed in Who’s Who in America, Who’s Who in American Law, and Who’s Who in Finance and Business. He has written extensively over the years (see, e.g., http://www.naegele.com/whats_new.html#articles), and can be contacted directly at tdnaegele.associates@gmail.com

[2] See http://www.naegele.com/documents/CurrencyUnionTeeteringMr.EuroWasForcedtoAct.pdf; see also http://online.wsj.com/article/SB10001424052748703467004575464113605731560.html?mod=WSJ_hps_MIDDLETopStories

[3] See, e.g., http://naegeleblog.wordpress.com/2010/09/24/washington-is-sick-and-the-american-people-know-it/

[4] See also http://naegeleblog.wordpress.com/2010/09/09/are-afghanistan-iraq-and-pakistan-hopeless-and-is-the-spread-of-radical-islam-inevitable-and-is-barack-obama-finished-as-americas-president/ and http://naegeleblog.wordpress.com/2010/05/16/will-the-eus-collapse-push-the-world-deeper-into-the-great-depression-ii/

[5] See also http://naegeleblog.wordpress.com/2009/12/16/the-great-depression-ii/#comment-750 and http://naegeleblog.wordpress.com/2009/12/16/the-great-depression-ii/#comment-745





Washington Is Sick And The American People Know It

24 09 2010

By Timothy D. Naegele[1]

Peggy Noonan, a former presidential speechwriter for Ronald Reagan, pens regular columns for the Wall Street Journal.  In her latest, she states:

This [November's] election is more and more shaping up into a contest between the Exhausted and the Enraged.[2]

Amen . . . and Barack Obama and his Democrats know it.  Their supporters are exhausted, disillusioned and demoralized; and many are angry at his policies such as the Afghan War.[3] His detractors and opponents are angry, livid, galvanized and motivated; and they consist of Republicans, Independents[4] and disenchanted Democrats, some of whom are part of the Tea Party movement.

The handwriting is on the wall—and the blood is in the water—that he is likely to be a one-term president.  White House chief of staff Rahm Emanuel is rumored to be leaving; and Obama brain truster David Axelrod will be too, probably sometime next year.  Top economic adviser Larry Summers is departing; and the list goes on and on.  While there is generally attrition in any White House staff because of the long hours and staggering workloads and pressures on families, these departures can be viewed as “rats leaving a sinking ship.”

Noonan cites Congresswoman Marsha Blackburn of Tennessee as saying prophetically:

The more [voters] know, the less they like Washington.

At long last, the light is shining through.  The innate wisdom of the American people is in the process of being heard and felt.

When I left Capitol Hill after working there for three and a half years, there was one four-letter word that stood out in my mind, and it still does today: “S-I-C-K.”  I vowed that neither of my kids would ever work there.  I had seen raving narcissists and demagogues who were not nice people—and equaled or surpassed those in Hollywood where I had grown up.

I saw senators and congressman chasing and bedding female staffers between the ages of about 22-26, and wrecking their lives in the process.  When the women reached about 28, they were considered “over the hill,” and a new batch of fresh young faces would replace them.  I saw attractive young female staffers flock to the politicians like groupies are attracted to rock stars and other celebrities.  I saw lobbyists providing women for sex to important committee chairmen.

I saw power trips that were way out of proportion to the actual power wielded.  I saw senators and members of Congress pontificate on empty chamber floors, and pass legislation that often did not help anyone, but merely “congested” and “polluted” government for both the regulators and public alike.  Laws were put on the books almost ceremoniously to display motion and activity, even if they were truly bad laws that made little or no good sense—and none were ever taken off the books.  Programs were still being funded even though they had outlived their usefulness years if not decades before.

I saw lobbyists literally run Washington, because they had the skills and knowledge that the politicians did not have.  House staffs were small unless the member had seniority.  Hence, the input of lobbyists was essential to the passage of legislation.  They wrote it; and they got it passed and their clients benefited; and somehow—by hook or by crook—the politicians benefited financially or in other ways.  It was dirty, but those participating simply looked the other way.

In short, the American people, God love them, are waking up bigtime to the mess that is Washington, D.C.—a corrupt, politically-polarized toxic city.  Throw in the present economic problems that this country has not experienced since the Great Depression, which will be with us through at least the end of this decade[5], as well as Obama’s no-win Afghan War and other national security worries[6], and he and his Democrats are potentially in for a very rough ride.  Like Lyndon Johnson in 1968, it is doubtful whether Obama will be able to run in 2012, much less be reelected.[7]

Noonan cites the role of women in the coming election, and the fact they are worried about how the economy has been taking an enormous toll on their families, which will only get much much worse.  She quotes Rep. Blackburn as saying: “I look at this year as the Rage of the Bill-Paying Moms.”  Amen to that too . . . or as Sarah Palin calls them: the “Mama Grizzlies.”  And most of us know that those who are wise never mess with a mother Grizzly.

The chickens are coming home to roost in America, at least economically and politically.  Hold on tight.  It is apt to get very ugly.[8]

© 2010, Timothy D. Naegele


[1] Timothy D. Naegele was counsel to the United States Senate’s Committee on Banking, Housing, and Urban Affairs, and chief of staff to Presidential Medal of Freedom and Congressional Gold Medal recipient and former U.S. Senator Edward W. Brooke (R-Mass).  He practices law in Washington, D.C. and Los Angeles with his firm, Timothy D. Naegele & Associates, which specializes in Banking and Financial Institutions Law, Internet Law, Litigation and other matters (see www.naegele.com and http://www.naegele.com/naegele_resume.html).  He has an undergraduate degree in economics from UCLA, as well as two law degrees from the School of Law (Boalt Hall), University of California, Berkeley, and from Georgetown University.  He is a member of the District of Columbia and California bars.  He served as a Captain in the U.S. Army, assigned to the Defense Intelligence Agency at the Pentagon, where he received the Joint Service Commendation Medal.  Mr. Naegele is an Independent politically; and he is listed in Who’s Who in America, Who’s Who in American Law, and Who’s Who in Finance and Business. He has written extensively over the years (see, e.g., http://www.naegele.com/whats_new.html#articles), and can be contacted directly at tdnaegele.associates@gmail.com

[2] See http://www.naegele.com/documents/TheEnragedvs.theExhausted.pdf

[3] See, e.g., http://naegeleblog.wordpress.com/2010/09/09/are-afghanistan-iraq-and-pakistan-hopeless-and-is-the-spread-of-radical-islam-inevitable-and-is-barack-obama-finished-as-americas-president and http://naegeleblog.wordpress.com/2009/12/26/obama-in-afghanistan-doomed-from-the-start/

[4] See, e.g., http://naegeleblog.wordpress.com/2010/03/31/the-rise-of-independents/

[5] See, e.g., http://www.americanbanker.com/issues/173_212/-365185-1.html and http://naegeleblog.wordpress.com/2009/12/16/the-great-depression-ii and http://www.realclearpolitics.com/news/tms/politics/2009/Apr/08/euphoria_or_the_obama_depression_.html and http://www.philstockworld.com/2009/10/11/greenspan%E2%80%99s-legacy-more-suffering-to-come/

[6] See, e.g.http://naegeleblog.wordpress.com/2010/01/19/emp-attack-only-30-million-americans-survive/

[7] See, e.g.http://naegeleblog.wordpress.com/2010/09/09/are-afghanistan-iraq-and-pakistan-hopeless-and-is-the-spread-of-radical-islam-inevitable-and-is-barack-obama-finished-as-americas-president/ and http://naegeleblog.wordpress.com/2010/09/01/the-speech—is-barack-obama-smoking-pot-again/ and http://naegeleblog.wordpress.com/2010/01/20/the-end-of-barack-obama/ and http://naegeleblog.wordpress.com/2010/01/01/barack-obama-america’s-second-emperor/ and http://naegeleblog.wordpress.com/2009/12/26/obama-in-afghanistan-doomed-from-the-start/ and http://naegeleblog.wordpress.com/2009/12/05/is-barack-obama-a-racist/

[8] The Washington Post’s Charles Krauthammer has fine article about the Tea Party movement and the likely tsunami that will engulf Obama and the Democrats, which is worth reading too.  Among other things, he points out that in the bellwether state of Ohio, former President George W. Bush is preferred over Barack Obama by 50 percent to 42 percent.

See http://www.washingtonpost.com/wp-dyn/content/article/2010/09/23/AR2010092304746.html and http://www.publicpolicypolling.com/pdf/PPP_Release_OH_901.pdf





Are Afghanistan, Iraq And Pakistan Hopeless, And Is The Spread Of Radical Islam Inevitable, And Is Barack Obama Finished As America’s President?

9 09 2010

By Timothy D. Naegele[1]

Arnaud de Borchgrave—editor at large of The Washington Times and of United Press International—has written another brilliant and very sobering article entitled, “Playing with fire,” which is worth reading and reflecting on.[2] In it, he states:

Unless [Gainesville, Florida Pastor Terry Jones, who decided to mark the ninth anniversary of 9/11 by proclaiming "International Burn a Koran Day,"] canceled his Koran book burning . . . , Christians throughout the world’s 1.2 billion-strong Muslim nations and Muslim communities would suddenly feel threatened. Those who converted from Islam to Christianity would be prime targets.

I will always remember the senseless killing of film director Theo van Gogh, who was the great-grandson of Theo van Gogh, the brother of the famous painter Vincent van Gogh.[3] I vehemently disagree with a burning of the Koran or the Bible.  However, is the Western world and culture going to be intimidated by and held hostage to the radical followers of Islam?  Is this “The Clash of Civilizations” that political scientist Samuel P. Huntington and former President Richard M. Nixon were concerned about?[4] Will Westerners be forced to subjugate their beliefs on the subject of Islam and Islamic terrorists, to the will of Islamic fanatics?  I think not.

Arnaud de Borchgrave adds:

Even if a superannuated preacher canceled the public burning of the Koran, the damage had already been done.

Yes, it would appear so.  Humpty Dumpty has fallen off the wall already.

Next, de Borchgrave notes:

NATO members pledged 2,796 trainers [to Afghanistan] but only 500 showed up. The NATO bureaucracy in Brussels couldn’t make it happen, according to one U.S. officer involved in the program. Most NATO countries are steadily reducing their defense budgets.

This is ominous.  Among other things, Germany’s “vaulted” military has been a paper tiger for years, in actuality.  Also, it seems that all of Europe will be weak, which might foretell America’s military future too—certainly if Obama were to get a second term in office, which is unlikely.

Lastly, de Borchgrave compares the collapse of the South Vietnamese army with that of the Afghan army, and describes the hopelessness of America’s Afghan adventure.  While there are certainly parallels between Vietnam and Afghanistan, the stakes are even higher now with a nuclearized Pakistan next door.

If Obama cuts and runs from Afghanistan, the war’s failure will be hung around his neck politically like Vietnam was hung around Lyndon Johnson’s neck.  It prevented Johnson from running for reelection in 1968; and the same thing might be true of Obama as the presidential election of 2012 approaches.  The foremost concern, however, is America’s position in the world and that of our military, which has been so brilliant in recent years.

Enormous amounts of money are being spent on the Afghan war—while the country’s GDP is a mere fraction of that amount—which seems absurd.  Also, there is no al Qaeda presence worth mentioning in Afghanistan today.  And even if the Taliban were to return to power, it is not likely to invite al Qaeda back to its former safe havens. After all, the Taliban lost Afghanistan because of al Qaeda and 9/11.  Thus, why should anyone care whether the Afghans’ future is led by men who feel more comfortable living in prior centuries?  The answers are complex but clear.

Afghan women and their supporters around the world care deeply.  Afghan women will suffer greatly if the Taliban return to power.  Americans and our NATO allies would become parties to the process of turning back the clock once again, and subjugating Afghan women and destroying their lives and any hopes for the future.  The plight of women in Afghanistan is something that America has been addressing, with the help of former First Lady Laura Bush and others.

Also, a Taliban takeover of Afghanistan would be another step in the process of spreading Islam beyond the region, and destabilizing Pakistan, thereby potentially unleashing its nuclear arsenal on the world (e.g., for terrorists to buy and sell weapons-grade materials, at the very least).

Some Americans argue that Iraq is hardly a U.S. geopolitical success story, because it cost America enormous monetary and human treasures to get rid of Saddam Hussein, who—it is argued—was our best defense against Iran; and that Baghdad today has less electricity, among other services.  I was against our Iraqi “adventure,” primarily because I believed Saddam had WMDs, which he would not hesitate to use against our military, just as he had used them against the Iranians and the Kurds.  Also, I believed we were “fronting” for Israel, and doing its dirty work, which some people (such as former UN Ambassador John Bolton) are arguing we should be doing right now vis-à-vis Iran, which is madness.

However, the “surge” worked, which George W. Bush, General David Petraeus and Senator John McCain championed; and at least Iraqis have a real chance to build a viable and stable democracy.  I agree with the Wall Street Journal’s assessment that was contained in an editorial prior to Barack Obama’s recent speech to the American people concerning Iraq:

The U.S. kept hundreds of thousands of troops in Germany for decades after World War II, and it still has tens of thousands in South Korea and Japan. It would be a tragedy if after seven years of sacrifice, the U.S. now failed to assist Iraqis as they try to build a federal, democratic state in an often hostile neighborhood.[5]

I agree too with the assessment that Iraq and Afghanistan together will probably be Obama’s undoing unless the American economy does it first.  They are all running neck and neck, but my betting is on the economy.  It will be sinking even farther during the balance of this decade, despite occasional “green shoots” appearing—which is similar to what happened during the last Great Depression.

The economy and the wars will be Barack Obama’s undoing, if something more tragic does not define his presidency (e.g., assassination, an EMP Attack), which I hope and pray never happens.[6]

© 2010, Timothy D. Naegele


[1] Timothy D. Naegele was counsel to the United States Senate’s Committee on Banking, Housing, and Urban Affairs, and chief of staff to Presidential Medal of Freedom and Congressional Gold Medal recipient and former U.S. Senator Edward W. Brooke (R-Mass).  He practices law in Washington, D.C. and Los Angeles with his firm, Timothy D. Naegele & Associates, which specializes in Banking and Financial Institutions Law, Internet Law, Litigation and other matters (see www.naegele.com and http://www.naegele.com/naegele_resume.html).  He has an undergraduate degree in economics from UCLA, as well as two law degrees from the School of Law (Boalt Hall), University of California, Berkeley, and from Georgetown University.  He is a member of the District of Columbia and California bars.  He served as a Captain in the U.S. Army, assigned to the Defense Intelligence Agency at the Pentagon, where he received the Joint Service Commendation Medal.  Mr. Naegele is an Independent politically; and he is listed in Who’s Who in America, Who’s Who in American Law, and Who’s Who in Finance and Business. He has written extensively over the years (see, e.g., http://www.naegele.com/whats_new.html#articles), and can be contacted directly at tdnaegele.associates@gmail.com

[2] See http://www.upi.com/Top_News/Analysis/2010/09/08/Commentary-Playing-with-fire/UPI-32611283952855/

[3] See, e.g.http://en.wikipedia.org/wiki/Theo_van_Gogh_(film_director)#Assassination

[4] See, e.g.http://en.wikipedia.org/wiki/The_Clash_of_Civilizations

[5] See http://www.naegele.com/documents/ThePresidentonIraq-WSJ.com.pdf and http://naegeleblog.wordpress.com/2010/09/01/the-speech—is-barack-obama-smoking-pot-again/

[6] See also http://naegeleblog.wordpress.com/2010/01/20/the-end-of-barack-obama/ and http://naegeleblog.wordpress.com/2010/01/19/emp-attack-only-30-million-americans-survive/ and http://naegeleblog.wordpress.com/2010/01/01/barack-obama-america’s-second-emperor/ and http://naegeleblog.wordpress.com/2009/12/26/obama-in-afghanistan-doomed-from-the-start/ and http://naegeleblog.wordpress.com/2009/12/16/the-great-depression-ii/ and http://naegeleblog.wordpress.com/2009/12/05/is-barack-obama-a-racist/





The Speech—Is Barack Obama Smoking Pot Again?

1 09 2010

By Timothy D. Naegele[1]

As Barack Obama wrote in his biography, “Dreams from My Father”:

Junkie.  Pothead.  That’s where I’d been headed: the final, fatal role of the young would-be black man.[2]

Is he using again . . . or is he simply pathetic and a bad joke?  In his televised speech to the American people, he announced that “all U.S. troops will leave [Iraq] by the end of next year.”[3] This artificial deadline may snatch defeat from the jaws of victory; and if so, the anti-war, far-Left Obama will be responsible personally.  Among other things, Iraq is still without a coalition government months after its election, and political compromise remains elusive.[4]

The Wall Street Journal was correct when it stated in an editorial prior to the speech:

The U.S. kept hundreds of thousands of troops in Germany for decades after World War II, and it still has tens of thousands in South Korea and Japan. It would be a tragedy if after seven years of sacrifice, the U.S. now failed to assist Iraqis as they try to build a federal, democratic state in an often hostile neighborhood.[5]

He is bringing our troops home to no jobs, or to poor jobs with little or no financial security once they leave the military.  Obama’s central responsibility as president—which is true of all presidents—is to protect the United States and the American people against our enemies.  It is not, as Obama stated, to put the millions who have lost their jobs back to work.  This is the task of private enterprise, not any “big brother” government.

International terrorism and other very real national security concerns still loom, which might produce flashpoints at any time. We have enemies who seek to destroy us—a fact that seems to escape Obama[6], and is sometimes forgotten by many Americans as 9/11 recedes in our memories. While it might be attractive for the president and the Democrats to take a “meat ax” to the Defense Department, it would be foolhardy to gut our military precisely when it has been performing magnificently and its continued strength is needed most.

America’s economic and military strength go hand in hand. Both are indispensable ingredients of our great nation’s future strength.  Obama is naïve and out of touch with reality—almost as much as Joe Biden, which is scary.  He spoke of “record deficits,” but failed to mention that he created them; and he is pandering to the American people (aka his far-Left constituency) in the hopes that the approaching political “blood bath” in November’s elections will not materialize.

At best, it is wishful thinking, devoid of attachments to reality, because a political tsunami is building that may engulf Obama, House Speaker Nancy Pelosi and their minions.  America and other nations are in uncharted waters; and their politicians may face backlashes from disillusioned and angry constituents that are unprecedented in modern times.

The facts are that we are in the midst of the “Great Depression II,” and there is nothing that Obama can do about it, except to make things worse.  It will run its course, probably toward the end of this decade—although it has been suggested that it might take a generation.  Between now and then, the carnage in America and worldwide will be mind-boggling.[7]

Also, Obama is caught in the “tar” of his Afghan war.[8] Secretary of Defense Robert Gates has noted that the full complement of additional troops ordered to Afghanistan by the president is only now arriving.[9] However, when President Obama announced the deployment of an additional 30,000 American troops to Afghanistan, he said the U.S. would begin pulling out by July of 2011—just before his reelection campaign might begin in earnest, which is a recipe for defeat.

It is a political decision, and tantamount to conceding the country to our enemies sometime next year.  Obama is apt to be a one-term president who is unable to run for reelection, like Lyndon Johnson in 1968.  No amount of flowery rhetoric or contrived puffery by the president will change these facts.

Throw in the Tea Party movement, as well as a majority of Americans who support the wholesale repeal of ObamaCare—and other crises to come—and the president is engaged in “Mission Impossible,” or certainly close to it.  He can give all of the speeches he wants, until the cows come home, but they are unlikely to make any appreciable difference.  His goose is cooked, and the following observation may prove to be prophetic:

Jimmy Carter may be heading to #2 on the [list of] all-time worst presidents in American history, thanks to “O.”[10]

This may be an understatement.  If our “victory” in Iraq is lost, Obama will be blamed.  If we “lose” in Afghanistan, Obama will be blamed.  If America’s economy does not return to robust health—which it will not during the balance of his presidency—he will be blamed.  The bloom is off the rose of his presidency.  It is long gone.  If November is a disaster for the Democrats and Obama, he may be perceived as a lame-duck president in short order.  Among other things, Hillary and Bill Clinton and their minions (e.g., James Carville) may be “gunning” for him.

What will be clear, crystal clear, is that Obama was the wrong man for the presidency.  He had feet of clay, which he and his handlers hid from the American people—before he was elected.  He was a fad and a feckless naïf, and a tragic Shakespearean figure who will be forgotten and consigned to the dustheap of history.  His naïveté was matched by his overarching narcissism; and he was more starry-eyed and “dangerous” than Jimmy Carter.  In the final analysis, his presidency is likely to be considered a sad watershed in history.

© 2010, Timothy D. Naegele


[1] Timothy D. Naegele was counsel to the U.S. Senate Banking Committee, and chief of staff to Presidential Medal of Freedom and Congressional Gold Medal recipient and former U.S. Senator Edward W. Brooke (R-Mass), the first black senator since Reconstruction after the U.S. Civil War.  He practices law in Washington, D.C. and Los Angeles with his firm, Timothy D. Naegele & Associates (www.naegele.com).  He has an undergraduate degree in economics from UCLA, as well as two law degrees from the School of Law (Boalt Hall), University of California, Berkeley, and from Georgetown University.  He is a member of the District of Columbia and California bars.  He served as a Captain in the U.S. Army, assigned to the Defense Intelligence Agency at the Pentagon, where he received the Joint Service Commendation Medal.  Mr. Naegele is an Independent politically; and he is listed in Who’s Who in America, Who’s Who in American Law, and Who’s Who in Finance and Business. He has written extensively over the years.  See, e.g., www.naegele.com/whats_new.html#articles

[2] See Obama, “Dreams from My Father” (paperback “Revised Edition,” published by Three Rivers Press, 2004), p. 93; see also pp. 120, 270; http://naegeleblog.wordpress.com/2009/12/05/is-barack-obama-a-racist

[3] See, e.g., http://blogs.wsj.com/washwire/2010/08/31/text-of-obamas-remarks-on-iraq/

[4] See, e.g.http://online.wsj.com/article/SB10001424052748703467004575463563467541850.html?mod=WSJ_hps_sections_news

[5] See http://www.naegele.com/documents/ThePresidentonIraq-WSJ.com.pdf

[6] See, e.g.http://naegeleblog.wordpress.com/2010/01/19/emp-attack-only-30-million-americans-survive/

[7] See http://naegeleblog.wordpress.com/2009/12/16/the-great-depression-ii; see also http://www.americanbanker.com/issues/173_212/-365185-1.html and http://www.realclearpolitics.com/news/tms/politics/2009/Apr/08/euphoria_or_the_obama_depression_.html and http://www.philstockworld.com/2009/10/11/greenspan’s-legacy-more-suffering-to-come/

[8] See http://naegeleblog.wordpress.com/2009/12/26/obama-in-afghanistan-doomed-from-the-start; see also http://en.wikisource.org/wiki/Uncle_Remus%3A_His_Songs_and_His_Sayings/The_Wonderful_Tar-Baby_Story

[9] See http://online.wsj.com/article/SB10001424052748703467004575463563467541850.html?mod=WSJ_hps_sections_news

[10] See http://naegeleblog.wordpress.com/2010/01/20/the-end-of-barack-obama





Illegal Immigration: The Solution Is Simple

30 07 2010

By Timothy D. Naegele[1][2]

Every American is an immigrant, or his or her ancestors were immigrants. Even the American Indians are descended from those who crossed the Bering Strait—or the “Bering land bridge”—according to anthropologists. America is the world’s only true melting pot, with people here from every other country on the face of the earth. Indeed, that is one of its strengths. Yes, we disagree and we squabble and we even discriminate, but we are a nation of immigrants, and we pull together and bury our differences when times get tough or 9/11s occur. Then, we are all Americans, white or brown or black or whatever the color or religion or political persuasion.

My ancestors came from Germany, Scotland, Ireland and England, and the heritage of most Americans is equally diverse. The spouses of my daughter and son have one parent who is of Mexican ancestry, and so the story goes throughout this great country. For me, however, the immigration issue is simple, and its solution is equally straightforward. All illegal immigrants must be deported now, or as soon as humanly possible; and if workers are needed to fill their jobs, they should be drawn first from Americans who are here legally and willing to work, and then from the lists of those from other countries who have been waiting in line patiently to come here. The latter group should be admitted first, and today’s illegal immigrants should go to the back of the line—if they decide to apply at all, once they have been sent back to their countries of origin.

That may seem harsh to some people, but no other solution is fair and just. I met a lovely Irish woman in Dublin 23 years ago when she was 23 years old; and we traveled across the Atlantic for many years to be together, before she joined me here in the States. Each of us made 12 trips, with some of them lasting as long as three weeks; and both of us got to know and appreciate Ireland and the United States even more during our times together. Among other things, I came to appreciate my country, as seen through the eyes of an immigrant. I have old friends from Germany and other countries too, and I have seen America through their eyes as well, which is always enlightening and generally very positive.

My German ancestors, a husband and wife who had 16 children, landed in New York on September 18, 1849; and in 1860, the husband served with his fellow Minnesotans in the Union Army.  The assimilation had taken only 11 years, but he was proud to serve; and I am sure many other immigrants felt that way who served with the Confederacy.  An Irish ancestor of mine first came to the States in 1850; and an English ancestor came almost a century before, in 1760. I am not entirely certain when my Scottish ancestors came here, but my mother’s maiden name was “Duncan” before she married my father, and it is my middle name.  I am proud of all legal immigrants; and I am equally proud of those of Mexican and Hispanic heritage.

What I found when my Irish love moved to California to live with me at the end of 1996 was that she could not get a job because she did not have a “Green Card.”  She wanted to work, but she could not.  The U.S. had a lottery for Irish immigrants, and her sister applied on a whim and received a Green Card, so she came too and got two jobs, but my Irish love could not work at all.  Could she have found work anyway, and used a phony Social Security number and ID like so many illegal immigrants?  Sure she could have, but neither of us was willing to take the risks involved.

We played by the rules and she was never able to work, and finally she got homesick and returned to Ireland.  We did everything legally and it got us nowhere.  She did not overstay her visas, and she did not work illegally, and she is in Ireland today.  Why should illegal immigrants from Mexico or any other country be treated differently than she was?  Why shouldn’t they be required to wait in line just like she did?  Why shouldn’t they be arrested and deported just like she would have been if she had broken the laws?

Having been born and raised in Southern California, I love its Mexican and Spanish heritage, and Spanish architecture is my favorite, and I love Mexican food, and some of the hardest workers whom I have ever met are Hispanics.  They are wonderful people; however, all immigrants should be subject to the same rules that my Irish love adhered to, or no one should be required to obey those laws.  It is just that simple.  No frills—the same rules for every immigrant, regardless of where he or she is from.  Fundamental fairness requires that; and we owe it to all who have come to this country legally and who have contributed so much to our heritage.

I have watched President Bush’s speeches on the subject, and I have seen the demonstrations on TV, and I have listened to the debate. However, I am fed up with the fact that no politician is willing to do what is right.  Again, from my vantage point, the issue is simple and its solution is straightforward.  There is no mystery about what needs to be done.  Whether any of our politicians will have the courage to do the right thing remains to be seen, but I am not optimistic.  If they fail to do so, the problem will fester for generations to come, and immigration will be an area of the law that applies to some people but not to others, which is wrong and fundamentally unfair and unjust.

Finally, how much does the plan outlined by President Bush before a national television audience on May 15, 2006, differ from what I believe must be done? The first objective of his plan calls for this country to secure its borders, using the National Guard to strengthen and supplement our Border Patrol; and I agree with that as long as the Guard remains in place to effectively shut the border to illegal immigrants, criminals, drug dealers, and terrorists.  The second objective is to create a temporary worker program.  I have doubts about such a program, and believe it would be best to eliminate temporary workers altogether, and replace them with Americans who are willing to work, or immigrants who are seeking entry to the United States legally and have been waiting patiently to get in.

The third objective is to hold employers to account for the workers they hire, and I agree with that as long as it is enforced vigorously.  The fourth objective is essentially amnesty for those illegal immigrants who are here already, and I disagree with that.  The president’s fifth objective is described as recognition of the fact that “we must honor the great American tradition of the melting pot, which has made us one nation out of many peoples.” Few Americans disagree with that; however, it can be achieved best by legalizing only those immigrants who followed the rules, not those who ignored this nation’s immigration laws.

At best, the president’s plan would close our southern border, but do nothing about our northern border; and it would stop employers from hiring illegal immigrants, which might send them scurrying back to their countries of origin, to get in line and come here legally. Thus, actual deportation would work in tandem with attrition, and the goals that I believe are necessary might be achieved over time. However, any notion of amnesty is a mistake, as is the idea of a temporary worker program. While many of the president’s proposals constitute steps in the right direction, they do not go far enough.

© 2010, Timothy D. Naegele


[1] Timothy D. Naegele was counsel to the U.S. Senate Banking Committee, and chief of staff to Presidential Medal of Freedom and Congressional Gold Medal recipient and former U.S. Senator Edward W. Brooke (R-Mass), the first black senator since Reconstruction after the U.S. Civil War.  He practices law in Washington, D.C. and Los Angeles with his firm, Timothy D. Naegele & Associates (www.naegele.com).  He has an undergraduate degree in economics from UCLA, as well as two law degrees from the School of Law (Boalt Hall), University of California, Berkeley, and from Georgetown University.  He is a member of the District of Columbia and California bars.  He served as a Captain in the U.S. Army, assigned to the Defense Intelligence Agency at the Pentagon, where he received the Joint Service Commendation Medal.  Mr. Naegele is an Independent politically; and he is listed in Who’s Who in America, Who’s Who in American Law, and Who’s Who in Finance and Business. He has written extensively over the years.  See, e.g., www.naegele.com/whats_new.html#articles

[2] This article was published first at MensNewsDaily.com on May 16, 2006.  See http://www.naegele.com/documents/IllegalImmigration.pdf

More than four years have passed, and George W. Bush’s presidency ended and Barack Obama’s presidency began.  However, the underlying issues remain the same and are still as relevant and timely as when I wrote it.  Our national immigration policies continue to be a disgrace.  Some people play by the rules, such as my long-time Irish love, and they are penalized for doing so.  All immigrants should be subject to the same rules, or no one should be required to obey our immigration laws.





Is Financial Reform Simply Washington’s Latest Boondoggle?

23 04 2010

By Timothy D. Naegele[1]

When I arrived in Washington, D.C. after graduating from law school in California, I spent two years at the Pentagon working as an Army officer in intelligence and budgets.  It was a great experience, and I have the utmost respect for our military, which is the best of our government.  One lesson I learned was that if Congress was breathing down the Pentagon’s neck, the easiest way to deal with the issue was to “reorganize,” which would throw them off the track—and the “bloodhounds” would lose the scent.

Then I worked on Capitol Hill as a young attorney with the Senate Banking Committee, and realized that when there was a national policy issue that was “too hot to handle,” a presidential commission would be formed, not unlike reorganizations at the Pentagon.  Months and sometimes years would pass while people studied the issues ad nauseam; and in the interim, the monkey was off the politicians’ backs.  One of my first tasks on the Hill was to staff such a presidential commission.

Fast-forward to today, and no regulatory “overhaul” is going to make a tinker’s damn in preventing future economic crises or solving the present one.  By and large, the financial regulatory agencies (e.g., the Fed, the FDIC) do a fine job, often under very difficult circumstances.  There are career professionals who will keep doing their jobs, regardless of what Barack Obama or Congress propose or enact—which is high political theater and demagoguery, and not a whole lot more.

Recent reorganizations, such as in the intelligence community, have not produced better intelligence.  Similarly, changes to the financial regulatory structure will not prevent the economic meltdown that riveted the nation in 2008, and continues to this day.  It is a tsunami, and Man’s ability to stop or affect it is marginal at best.  Reorganizing the deck chairs on the Titanic, or closing the barn door after the horse is out, will never address future problems.  The flim-flam boys of Wall Street and other financial capitals will make sure of that.

Alan Greenspan unleashed the tsunami; and the words of Giulio Tremonti, Italy’s Minister of Economy and Finance, are true and cogent to this day:

Greenspan was considered a master.  Now we must ask ourselves whether he is not, after [Osama] bin Laden, the man who hurt America the most.[2]

No financial regulatory overhaul will prevent a Fed chairman like Greenspan, or some other government official from making mistakes that produce massive suffering domestically and globally.  Perhaps if Paul Volcker had been in charge of the Fed instead of Greenspan, the economic meltdown would have been avoided.  After all, Greenspan admitted in testimony before the House that he never saw the housing crisis coming.

Like the emperor with no clothes in Hans Christian Andersen’s fable, no one was willing to call Greenspan a buffoon who was over his head—until he had unleashed economic pain, the likes of which has not been seen since the Great Depression.  It will continue to the end of this decade, in all likelihood; and there is nothing that government can do to stem it.[3]

With respect to the existing financial regulatory agencies, it must be remembered that they and their affiliated agencies (e.g., the FSLIC, RTC) dealt effectively with the savings and loan crisis of the 1980s and 1990s.  In the process, almost 800 S&Ls failed, an enormous financial crisis was averted, and the ultimate cost to the taxpayers was less than expected.

Nonetheless, in 1999, Congress repealed the Glass–Steagall Act, which had controlled financial speculation since its enactment in 1933.[4] Under Glass–Steagall, there had been a separation between commercial banking and “investment banking”—or gambling by Wall Street.  Coupled with Greenspan’s mistakes and financial deregulation, which had been championed by him, a laissez faire attitude in Washington resulted in the massive problems of today.

Can greed on Wall Street and in other financial markets be stopped?  Never.  Can the SEC do a better job?  Can the existing financial regulatory agencies tighten up here and there, and do their jobs better with enhanced powers?  Sure, but the system is not perfect just as human beings are not perfect.  Utopia is not possible; and history repeats itself over and over again.  More government regulation will not prevent economic tsunamis and meltdowns from happening.  Anyone who says so might try to sell you a bridge in Brooklyn next—or ObamaCare.[5][6]

Yet, capitulation to political demogoguery and public anger is likely.[7] With the repeal of Glass–Steagall and financial deregulation, a blurring of the lines between commercial banking and investment banking took place; and now the chickens are coming home to roost.  The baby is in the process of being thrown out with the bath water; and the demogogues in Washington are strutting in full bloom.[8] A Wall Street Journal editorial states:

While the details matter a great deal, the essence of the exercise is to transfer more control over credit allocation and the financial industry to the federal government. The industry was heavily regulated before—not that it stopped the mania and panic—but if anything close to the current bills pass, the biggest banks will become the equivalent of utilities.

The irony is that this may, or may not, reduce the risk of future financial meltdowns and taxpayer bailouts.

. . .

As in health care, Democrats are intent on ramming this reform through Congress, and Republicans ought to summon the will to resist. Absent that, the only certain result is that Washington will be the new master of the financial universe.

Amen, and then some![9]

© 2010, Timothy D. Naegele


[1] Timothy D. Naegele was counsel to the U.S. Senate Banking Committee, and chief of staff to Presidential Medal of Freedom and Congressional Gold Medal recipient and former U.S. Senator Edward W. Brooke (R-Mass), the first black senator since Reconstruction after the U.S. Civil War.  He practices law in Washington, D.C. and Los Angeles with his firm, Timothy D. Naegele & Associates (www.naegele.com).  He has an undergraduate degree in economics from UCLA, as well as two law degrees from the School of Law (Boalt Hall), University of California, Berkeley, and from Georgetown University.  He is a member of the District of Columbia and California bars.  He served as a Captain in the U.S. Army, assigned to the Defense Intelligence Agency at the Pentagon, where he received the Joint Service Commendation Medal.  Mr. Naegele is an Independent politically; and he is listed in Who’s Who in America, Who’s Who in American Law, and Who’s Who in Finance and Business. He has written extensively over the years.  See, e.g.www.naegele.com/whats_new.html#articles

[2] See http://www.americanbanker.com/issues/173_212/-365185-1.html

[3] See, e.g., http://www.realclearpolitics.com/news/tms/politics/2009/Apr/08/euphoria_or_the_obama_depression_.html and http://www.philstockworld.com/2009/10/11/greenspan’s-legacy-more-suffering-to-come/; see also http://en.wikisource.org/wiki/The_Emperor%27s_New_Clothes

[4] See, e.g.http://en.wikipedia.org/wiki/Glass–Steagall_Act

[5] Harvard professor Niall Ferguson and Wall Street investor Ted Forstmann state in a Wall Street Journal article:

By all means let us regulate the derivatives market—beginning with a reform that makes it a real market. And let’s clamp down on excessive bank leverage. But let us not believe we can abolish both bailouts and depressions, other than by creating another layer of government regulation.

See http://www.naegele.com/documents/BacktoBasicsonFinancialReform.pdf

I agree with their conclusion.

[6] See also http://naegeleblog.wordpress.com/2009/12/16/the-great-depression-ii/

[7] See, e.g., http://www.naegele.com/documents/AScoldingforWallStreetHonchos.pdf; see also http://online.wsj.com/article/SB10001424052748704830404575200580858688618.html?mod=WSJ_hps_MIDDLEThirdNews

[8] Real problems with the legislation may be considerable.  See, e.g.http://online.wsj.com/article/SB10001424052748703876404575199582764862248.html

[9] See http://www.naegele.com/documents/TheNewMasterofWallStreet.pdf








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