Is The United States On The Cusp Of The Great Depression II?

10 03 2023

  By Timothy D. Naegele[1]

It may seem absurd to ask such a question, much less posit it as a fact to be reckoned with.  But few Americans realize how close we came to a major national catastrophe during the so-called “2007–2008 financial crisis”—or what has been named “The Great Recession.”[2]  I had left the U.S. Senate and was practicing law in Washington, D.C., and had the then-top lawyer for the FDIC over to my home in McLean, Virginia for dinner.  He had too much to drink, and shared how worried he was that one of America’s largest banks might fail, sending uncontrollable shockwaves through our financial system, and globally.

We weathered that economic storm; and few Americans realized how close we came to the edge of an economic abyss, of unfathomable depths.  It’s a fair question to ask: “Will the last economic “crash” be overshadowed by what is coming?”  The number of American billionaires seems overwhelming; and their lavish spending on homes, yachts and other luxuries seems to be “beyond the pale.”  Despite sanctions relating to the war in Ukraine, Russian oligarchs have lived like kings in London and elsewhere; and global wealth seems to be staggering.

But the latest headlines are:

“Turmoil at Silicon Valley Bank triggers market panic: Four biggest US banks lose staggering $52 BILLION in valuation and Dow drops 540 points”[3]

“Silicon Valley Bank is shut down by regulators in biggest bank failure since global financial crisis”[4]

“Silicon Valley Bank meltdown sparks contagion fears: ‘We found our Enron'”[5]

“Silicon Valley Bank’s Manhattan branch calls COPS on investors trying to pull their cash out as Boston tech CEO with $10M in bank describes ‘worst 18 hours of my life’: Lender is SEIZED by regulators in largest US bank failure since Great Recession”[6]

“What caused Silicon Valley Bank to collapse and will customers get their money back? Second largest bank failure in US history rattles markets and raises fears of wider risks” [7]

I testified as an expert witness for the FDIC in litigation stemming from the largest bank failure at the time, the United States National Bank in San Diego.

Today, American banks are holding bonds and other assets that have fallen in value, and lack liquidity.  If they were “marked-to-market,” the banks’ valuation might fall dramatically and precipitously, potentially causing panics and “runs” on such financial institutions.

Fewer and fewer Americans trust their government today; and many are holding their monies in accounts that are not insured by the federal government.  The “Great Depression II” did not come in 2007/2008.  Will it come soon . . . and be accompanied by World War III?

Tragically, the group that can least afford what may be coming are America’s homeless, who are barely surviving already.  And the United States has divisions that are tearing our great country apart, all the while that our enemies salivate over our seeming chaos, and calibrate their next moves against us.

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© 2023, Timothy D. Naegele

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[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).  See, e.g., Timothy D. Naegele Resume-21-8-6  and https://naegeleknol.wordpress.com/accomplishments/   He has an undergraduate degree in economics from the University of California, Los Angeles (UCLA), as well as two law degrees from the School of Law (Boalt Hall), University of California, Berkeley, and from Georgetown University.  He served as a Captain in the U.S. Army during the Vietnam War, assigned to the Defense Intelligence Agency at the Pentagon, where he received the Joint Service Commendation Medal (see, e.g., https://en.wikipedia.org/wiki/Commendation_Medal#Joint_Service).  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., https://naegeleblog.wordpress.com/articles/ and https://naegeleknol.wordpress.com/articles/), and studied photography with Ansel Adams.  He can be contacted directly at tdnaegele.associates@gmail.com

[2]  See, e.g., https://en.m.wikipedia.org/wiki/2007%E2%80%932008_financial_crisis (“2007–2008 financial crisis”)

[3]  See https://www.dailymail.co.uk/news/article-11841715/Turmoil-Silicon-Valley-Bank-triggers-market-panic.html (“Turmoil at Silicon Valley Bank triggers market panic: Four biggest US banks lose staggering $52 BILLION in valuation and Dow drops 540 points”)

[4]  See https://www.cnbc.com/2023/03/10/silicon-valley-bank-is-shut-down-by-regulators-fdic-to-protect-insured-deposits.html (“Silicon Valley Bank is shut down by regulators in biggest bank failure since global financial crisis”)

[5]  See https://nypost.com/2023/03/10/silicon-valley-bank-meltdown-sparks-contagion-fears/ (“Silicon Valley Bank meltdown sparks contagion fears: ‘We found our Enron'”)

[6]  See https://www.dailymail.co.uk/news/article-11845495/Silicon-Valley-Bank-branch-calls-NYPD-tech-investors-tried-pull-cash.html (“Silicon Valley Bank’s Manhattan branch calls COPS on investors trying to pull their cash out as Boston tech CEO with $10M in bank describes ‘worst 18 hours of my life’: Lender is SEIZED by regulators in largest US bank failure since Great Recession”)

[7]  See https://www.dailymail.co.uk/news/article-11845603/What-caused-Silicon-Valley-Bank-collapse-customers-money-back.html (“What caused Silicon Valley Bank to collapse and will customers get their money back? Second largest bank failure in US history rattles markets and raises fears of wider risks”)





America Is Lawless

19 06 2022

  By Timothy D. Naegele[1]

In the latest example, a twenty-six-year-old man slashed a teenager at a subway station; choked a woman in a hotel; and attacked a volunteer in a church bathroom during his fourteen-day crime spree.  He had been arrested and released five times in New York City before finally being detained on rape charges in Baltimore, Maryland.[2]

This lawlessness didn’t happen overnight.  It has been building, in our large cities and all across our great nation.  In San Francisco—which so many of us have loved, and where some of us have worked—perhaps the senseless killing of Kate Steinle at Pier 14 on the city’s waterfront drove it home for us.  Her killer was an illegal alien who had been deported five times from the sanctuary city.[3]

I testified as an expert witness in that city, and walked another lawyer from our hotel to the BART subway station so he could catch a train to the airport for his flight back to Los Angeles. Both of us were wearing business suits and ties; and I was carrying my laptop. I don’t recall being apprehensive like I was that day, as I walked back to the hotel through or near drug-infested homeless encampments, realizing that I was easy prey; and that it was unlikely anyone would help me if I needed it.

Stores are robbed in San Francisco and other American cities in broad daylight, and no one stops it.  Indeed, it is accepted as the “cost of doing business”—or the stores close down, having been hurt already by the Coronavirus pandemic lockdowns.  And who can forget what the thugs, slugs, hoods and mongrels of “Black Lives Matter,” Antifa and other far-Left groups have done, without suffering any serious consequences.

They burned our cities; killed or hurt innocent Americans including our police; and destroyed black and other businesses.  Thugs like George Floyd have been lionized.  No wonder police and other members of law enforcement have resigned, or taken early retirements.  Why place their lives at risk, while being hated by those whom they are sworn to protect?[4]  Perhaps the latest example involves an illegal alien who shot at police in a 100-mile-per-hour chase, and who has been deported seven times.[5]

The solutions seem obvious.  Empower law enforcement to do their jobs, and give them adequate funding.  Dispense with woke notions of helping the criminal, instead of protecting America against criminals.  Get rid of woke judges and politicians who do nothing to protect us.  And do what the Mayor of New York City, Rudy Giuliani, did in turning around that cesspool.  Clearly, a major economic downturn and increased homelessness, and global strategic challenges will only exacerbate these issues.[6]

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© 2022, Timothy D. Naegele

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[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).  See, e.g., Timothy D. Naegele Resume-21-8-6  and https://naegeleknol.wordpress.com/accomplishments/   He has an undergraduate degree in economics from the University of California, Los Angeles (UCLA), as well as two law degrees from the School of Law (Boalt Hall), University of California, Berkeley, and from Georgetown University.  He served as a Captain in the U.S. Army during the Vietnam War, assigned to the Defense Intelligence Agency at the Pentagon, where he received the Joint Service Commendation Medal (see, e.g., https://en.wikipedia.org/wiki/Commendation_Medal#Joint_Service).  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., https://naegeleblog.wordpress.com/articles/ and https://naegeleknol.wordpress.com/articles/), and studied photography with Ansel Adams.  He can be contacted directly at tdnaegele.associates@gmail.com

[2]  See https://www.dailymail.co.uk/news/article-10929937/Queens-man-26-held-without-bail-rape-charges-MD-going-crime-spree-NYC.html (“Man, 26, who ‘slashed teen at subway station, choked woman in hotel and attacked volunteer in church bathroom during 14-day crime spree’ was arrested and released FIVE TIMES in NYC before finally being detained on rape charge in Baltimore”)

[3]  See https://en.m.wikipedia.org/wiki/Shooting_of_Kate_Steinle (“Shooting of Kate Steinle”)

[4]  See, e.g., https://naegeleblog.wordpress.com/2022/05/27/the-slaughter-at-uvalde-texas/ (“The Slaughter At Uvalde, Texas”)

[5]  See https://justthenews.com/nation/crime/man-who-shot-police-during-100mph-chase-reportedly-illegal-immigrant-has-been-deported (“Man who shot at police in 100-mph chase reportedly illegal immigrant, has been deported 7 times”)

[6]  See, e.g., https://naegeleblog.wordpress.com/2022/06/16/are-we-heading-toward-the-great-depression-ii-and-world-war-iii/ (“Are We Heading Toward The Great Depression II And World War III?”)





Are We Heading Toward The Great Depression II And World War III?

16 06 2022

  By Timothy D. Naegele[1]

Is a maelstrom headed our way, the likes of which most Americans have never experienced in their lifetimes—or even close to it—unless they are or have been homeless?[2]  Are the United States and other countries heading toward far worse than the “Great Recession” of 2007-2009[3], and something approaching the Great Depression of the 1930s, coupled with World War III?[4]

Are these the “gifts” that Joe Biden, Russia’s Vladimir Putin and China’s Xi Jinping are bequeathing to the world?  Like Adolf Hitler, Joseph Stalin and Mao Tse-tung, will this be their legacy[5], especially after China launched the deadly Coronavirus pandemic that has hurt so many, physically, economically and psychologically, and weakened the West?  Again, Americans may not have any earthly idea what is heading their way, much less how to cope with it.

The Middle East, much of Africa and other parts of the world have lived with wars, abject poverty and hopelessness far more than most Americans have, even recent immigrants to our great nation.  But nothing can prepare anyone for a convergence of the Great Depression II and World War III.  It is unfathomable, as it should be.  Where is God in the midst of so much suffering and chaos, which is a fair and reasonable question to ask?[6]

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© 2022, Timothy D. Naegele

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[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).  See, e.g., Timothy D. Naegele Resume-21-8-6  and https://naegeleknol.wordpress.com/accomplishments/   He has an undergraduate degree in economics from the University of California, Los Angeles (UCLA), as well as two law degrees from the School of Law (Boalt Hall), University of California, Berkeley, and from Georgetown University.  He served as a Captain in the U.S. Army during the Vietnam War, assigned to the Defense Intelligence Agency at the Pentagon, where he received the Joint Service Commendation Medal (see, e.g., https://en.wikipedia.org/wiki/Commendation_Medal#Joint_Service).  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., https://naegeleblog.wordpress.com/articles/ and https://naegeleknol.wordpress.com/articles/), and studied photography with Ansel Adams.  He can be contacted directly at tdnaegele.associates@gmail.com

[2]  See https://naegeleblog.wordpress.com/2020/07/09/homelessness-in-america/ (“Homelessness In America”)

[3]  See https://en.m.wikipedia.org/wiki/Great_Recession (“Great Recession”)

[4]  See https://naegeleblog.wordpress.com/2022/06/12/world-war-iii/ (“World War III”)

[5]  See, e.g., https://naegeleblog.wordpress.com/2010/02/06/the-silent-voices-of-stalin%e2%80%99s-soviet-holocaust-and-mao%e2%80%99s-chinese-holocaust/ (“The Silent Voices Of Stalin’s Soviet Holocaust And Mao’s Chinese Holocaust”)

[6]  See https://naegeleblog.wordpress.com/2010/05/12/what-and-where-is-god/ (“What And Where Is God?”)





The Coronavirus And Similar Global Issues: How To Address Them

30 05 2020

  By Timothy D. Naegele[1]

This is the title of my newest law review article that discusses the Coronavirus, also known as COVID-19, and by other names.[2]

Seemingly out of the blue, emanating from China, came the Coronavirus. The world will never be the same. Like earlier pandemics in recorded history such as the Spanish flu—which killed as many as 100 million globally right after World War I—the effects of the Coronavirus may change humankind forever.

Countless numbers may die; the mass suffering may be indescribable; businesses will disappear; lawlessness may reign; and the social, economic and military order of the planet may be altered decisively and irretrievably.  Banks and other financial institutions, and the very fabric of America, may be affected in ways not seen since the Great Depression.

Governmental controls are being imposed and will be implemented in the United States, not experienced since the dark days of World War II.  China launched the Coronavirus, intentionally (as a bioweapon) or inadvertently; and many would argue that it must pay reparations or restitution to the world for having done so, which would likely run into trillions of dollars.

Also, a global boycott of anything and everything from China may ensue, as Americans and their counterparts abroad “vote” with their pocketbooks against the suffering that China unleashed.

 

Xi Jinping and Coronavirus


© 2020, 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 and his firm, Timothy D. Naegele & Associates, specialize in Banking and Financial Institutions Law, Internet Law, Litigation and other matters (see www.naegele.com and Timothy D. Naegele Resume-20-5-11). He has an undergraduate degree in economics from the University of California, Los Angeles (UCLA), as well as two law degrees from the School of Law (Boalt Hall), University of California, Berkeley, and from Georgetown University. 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 (see, e.g., https://en.wikipedia.org/wiki/Commendation_Medal#Joint_Service). 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 Timothy D. Naegele, The Coronavirus and Similar Global Issues: How to Address Them, 137 BANKING L. J. 285 (June 2020) (Naegele June 2020) (Timothy D. Naegele) [NOTE: To download The Banking Law Journal article, please click on the link to the left of this note]  





Expert Warns Quarantine Process Failed, As China Stands Ready To Crash World Economy

20 02 2020

  By Timothy D. Naegele[1]

This is the title of an article that Jared Harris has written for The Western Journal:

China’s rush to reopen factories and markets in the midst of a poorly understood outbreak may backfire, a failure that could result in one of the worst depressions the world has ever seen.

It’s no secret that the COVID-19 virus has dealt a punishing blow to the Chinese economy since its emergence months ago. With over 700 million now under some form of lockdown to control the coronavirus, work has ground to a halt.

Seeing a slowdown of new cases has prompted the ruling communist party to urge work to resume, with the party’s Global Times mouthpiece proclaiming “we must be resolute in resuming economic activity.”

Considering how little is known about the novel coronavirus, pushing workers to return to factories, markets and sales floors en masse does not look like a good decision.

Fortunately for virologists, a closed system with the virus exists on board the Diamond Princess cruise ship. Unfortunately for the people on the massive boat, their role as a large-scale petri dish shows just how contagious this bug really is.

Despite officials’ best efforts to contain the virus on the ship, the initially small number of infected soon soared to 454.

“The quarantine process failed,” National Institute of Allergy and Infectious Diseases director Dr. Anthony Fauci told USA Today.

“I’d like to sugarcoat it and try to be diplomatic about it, but it failed. People were getting infected on that ship.”

It’s unclear why the quarantine failed and transmission occurred, but it may be because the virus is more easily spread through the air than previously thought. Although it’s not thought to be airborne, the CDC still recommends airborne procedures and protective gear.

If COVID-19 is able to spread through the air, the cruise ship’s ventilation system may be a major factor in the baffling infection rates.

Once that possibility is applied to China, where hundreds of millions are holed up in high-rise apartments designed according to loose Chinese standards, the potential of this disaster becomes clear.

Although the Chinese government claims to have a handle on the epidemic, changes in the diagnosis criteria have seen confirmed cases spike by over 14,000 in a single day. Skeptics also remain unconvinced that the country’s communist regime is being honest.

The predicament of the Chinese worker is apparent: The government appears close to giving the all-clear for many. Those voicing skepticism on Chinese social media are swiftly silenced. China’s social credit system likely also puts pressure on citizens to return to work.

While those with symptoms may stay home, the virus can hitch a ride on clothing and other materials. There is even evidence that infected individuals may be able to spread COVID-19 without showing symptoms.

China, the world’s second-largest economy, would be absolutely devastated if this virus made a strong resurgence. The impact on other countries would be downright horrifying.

China’s exports would grind to a halt, depriving the United States of $480 billion worth of goods. Take a look at some of the things around you right now. Many of these items (including the phone or computer you’re reading this on) likely originated in a Chinese factory.

The effect on American retailers would be disastrous. Walmart, for example, imports an estimated 80 percent of its products from Chinese suppliers, according to the Alliance for American Manufacturing.

Japan, Germany and the United Kingdom, three of the largest economies in the world, also rely on Chinese exports worth billions.

Needless to say, all of these exports grinding to a halt virtually overnight would not be pleasant for the world economy. Even the U.S. economy, at an all-time high thanks to President Donald Trump, would not escape without a major beating.

If the quarantines in China are failing just as they are on the Diamond Princess, we could be headed for the biggest economic gut punch since the Great Depression.[2]

Talk about Helter Skelter, if this materializes like the article suggests, the economic effects globally will be nothing short of catastrophic.[3]  

Chinese woman wears plastic wrap

  © 2020, 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 and his firm, Timothy D. Naegele & Associates, specialize in Banking and Financial Institutions Law, Internet Law, Litigation and other matters (see www.naegele.com and https://naegeleblog.files.wordpress.com/2019/11/timothy-d.-naegele-resume-20-1-1.pdf). He has an undergraduate degree in economics from the University of California, Los Angeles (UCLA), as well as two law degrees from the School of Law (Boalt Hall), University of California, Berkeley, and from Georgetown University. 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 (see, e.g., https://en.wikipedia.org/wiki/Commendation_Medal#Joint_Service). 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 https://www.wnd.com/2020/02/expert-warns-quarantine-process-failed-china-stands-ready-crash-world-economy/ (emphasis in original); see also https://naegeleblog.wordpress.com/2011/01/13/china-is-americas-enemy-make-no-mistake-about-that/#comment-23012 (“Deadly Coronavirus Proves Immune To Political Correctness”)

[3]  See, e.g., https://naegeleblog.wordpress.com/2015/07/01/global-chaos-and-helter-skelter/ (“Global Chaos And Helter Skelter”) and https://naegeleblog.wordpress.com/2010/01/19/emp-attack-only-30-million-americans-survive/ (“EMP Attack: Only 30 Million Americans Survive”)

 





America’s Left Is Vile And Evil

24 08 2019

 By Timothy D. Naegele[1]

And yes, lots of us began as Democrats, but will never vote for one again.

In an article entitled “New Anti-Trump Ploy Is Conjuring A Recession,” Conrad Black—the Canadian-born, British former newspaper publisher, author and life peer—has written in The New York Sun:

The latest ploy of the anti-Trump press phalanx, and their weekly echo chamber of assorted Democratic candidates and legislators, is to try to move the voter-approval needle by insisting an economic recession is about to occur. The problem is, it isn’t.

As weeks pass without a recession or even increasing objective statistical hints of a recession, the continued trumpeting of a recession becomes self-stifling. Not even the economically illiterate mouthpieces of CNN and MSNBC can keep a straight face for long predicting recession when there are no signs it is happening.

It is possible to convince those who want to be convinced that something happening completely in the dark, such as trade negotiations with China, is going badly. (They aren’t.) But it is impossible to maintain a levitation of economic alarm when confidence remains high, employers are hiring rather than laying off workers, and economic growth, unemployment, and inflation numbers remain positive.

Understandably, it has been difficult for both sides on the political see-saw as we approach the 2020 election year. President Trump’s enemies, clinging as they have been since the beginning to buoyant flotsam, are like people who have been cast into the sea and can’t swim.

The idea of a Trump presidency was so unthinkable there could not be a honeymoon because it could not be real; it could not have been a legitimate election. For more than two years we were waiting for the confirmation that Mr. Trump had worked with the Russian government to rig the election.

We now know that from the start the investigators knew that there had been no such collusion and almost two whole years were spent trying to provoke Mr. Trump into counter-attacking Special Counsel Robert Mueller’s operation so he could be accused of obstructing justice. Since the president cooperated with the inquiry even as he rightly denounced it as a hoax and a fraud, the best that could be done was an invitation to the House of Representatives to continue investigations so Democrats might keep the impeachment cloud over the president’s head.

Doubtless when legislators return from their summer recess, like two spavined old fire-horses, judiciary and intelligence committee chairmen Jerry Nadler and Adam Schiff will storm out of the gate again, issuing subpoenas which will be ignored by the administration, and relying on the same desperately inadequate choir of nasty press sorcerers (down to and including Watergate catacomb mythmakers Carl Bernstein and John Dean), to stoke it up one more time.

It won’t fly. No one believes any of it. Justice Department Inspector General Michael Horowitz will soon produce his report on many aspects of the spurious Trump-Russia investigation, and Senator [Lindsey] Graham and his judiciary committee will take it from there, shouldering Messrs. Nadler and Schiff out of the frame.

Inexorably, as special prosecutor John Durham’s indictments come down, the Democrats’ “insurance policy” against Mr. Trump (the Russian collusion canard as described by former FBI senior agent Peter Strzok) will become the Democrats’ suicide weapon.

Russia was hastily followed by racism, topped out with attempts to hold Mr. Trump in some way responsible for the tragic shootings in El Paso and Dayton. Since Mr. Trump isn’t a racist, and neither of the two shooters professed any Trump role in forming their psychopathic opinions, that wheeze has died in the summer heat. It is to be hoped that it doesn’t take down prudent bipartisan reforms of the gun regime with it.

The sudden and mysterious silence that has enshrouded the southern border, including the wailings of Representative Elijah Cummings, is the surest indicator that the fence is being built, Mexico is cooperating (as it receives more manufacturing investment from companies fleeing China over tariffs), and the detention and adjudication system with hundreds of new judges, is working.

The number of apprehensions of those attempting to enter illegally is declining and it is becoming difficult to represent crowded but adequately sanitary and well-stocked detention centers as the replications of Nazi death camps that House Speaker Nancy Pelosi and others were conjuring.

Now we are on to a recession. This claim contains no more substance than the chimeras that preceded it.

The straws in the wind that have been cited as the green shoots of economic calamity are far from dispositive, and carry much less weight than continuing solid performances in economic growth, inflation, absolute and per capita GDP growth, manufacturing jobs growth, shrinkage of minority unemployment, and purchasing power for working and lower middle class families. All of these numbers are coming in supportively for the administration.

The fact that the election approaches and the importance of the economy in electoral results is proverbial, and the serial evaporation of the false issues that have been pinned on Trump in his inexorable elephantine march through his first term, now combine to attempt the incitement of hysteria on this subject.

It is true that the deficit tops $1 trillion and that is not sustainable indefinitely, but that is 35% less than the Obama average (admittedly coming after a debacle bequeathed by George W. Bush); and the GDP is about 25% above the latter Obama years. So despite a large tax reduction and a strong defense build-up, the deficit as a percentage of GDP has shrunk in about five years from 8.5% to less than 5%, unacceptable, but progress.

The most important single measurement, especially for insertion into political predictions, is GDP per capita growth, which declined dangerously from 4.5% in the Reagan years to 3.9% in the Clinton terms, to 2% under George W. Bush to 1% with Obama. This trend had to be reversed to prevent extreme economic and political stress.

Economics, essentially, is half psychology and half third-grade arithmetic. President Trump has won the arithmetic and there are no serious signs of incipient recession: neither rising interest rates presaging inflation, which could require recessive measures to cool, nor serious slackening of demand.

Under the circumstances, it will be hard for Democratic officials and press fear-mongering to win the psychological battle over the direct personal experience and observations of the voters.

The only signs of economic weakness are from other important countries. The European Union appears to be about to suffer the grievous self-inflicted wound of failing to reach a reasonable compromise with the UK, and the loss of its second-largest national economy and most prestigious member. This would be a benefit to the United States as a free trade agreement with the world’s fifth-largest economy would be eminently negotiable.

China, despite its huffing and puffing and the solicitude for its “face” [that] it has stirred up in the weak-kneed precincts of the over-populated anti-Trump world, is sputtering and losing jobs to Vietnam, India, and Mexico. Those who have been so prostrated in their hostility to the president that they have subscribed to Chinese leader Xi Jinping’s “Belt and Road” hegemonic plan will suffer the disconcertion of seeing China adopt a sharp course correction.

The comparative weakness of China’s rivals will assist the prolongation of the American boom, which only seems so protracted because there never really was a full recovery under President Obama, little more than stabilization with a 125% increase in accumulated national debt in eight years. The workforce shrank, welfare dependency rose, and a flat-lined “new normal” that the country could not live with was proclaimed.

The Democrats and their press are trying to delay the sober and balanced assessment of the merits of the candidates coming up to the 2020 election. To repurpose a beloved Democratic expression, the inconvenient truth is that Mr. Trump has been a good president who has kept his promises.[2]

As I have written:

Our adversaries have only seen a small portion of America’s vast economic might. For example, by denying use of the SWIFT payments system to Russia, we can bring the pygmy economy (smaller than Italy or Brazil) to its knees. Also, as the United States regains its dominant position in the world’s energy markets, Russia loses. And China’s economy is not in great shape today either.

Like Abraham Lincoln before him, Donald Trump is asserting America’s preeminence and dominance, unapologetically. And yes, the United States is at war, albeit it is not a shooting war at this time.[3]

Economic cycles are a way of life, which have occurred with consistency over hundreds if not thousands of years.  And I added:

One can look at Life negatively (e.g., ALL of us are going to die), optimistically, or “realistically.”

I have believed that the “Great Recession [of 2008]” was papered over, and the proverbial “can” was simply kicked down the road.

. . .

However, the USSR is gone; Russia is a pygmy state; and China has lots of problems. We have survived because of optimism and realism, not pessimism.[4]

America’s Left and its captive so-called “Mainstream Media” are hoping for a recession (or worse), which they can blame on President Trump.  In essence, they are hoping that America fails, instead of succeeds and prospers.  This is not the Democratic Party of Franklin D. Roosevelt, who did his best to get us out of the Great Depression and rebuild America’s spirit and industrial might.

Instead, this is the party of un-American mental midgets like Jerry Nadler and Adam Schiff; outright racists like Maxine Waters and Elijah Cummings; and anti-Semites such as Alexandria Ocasio-Cortez, Ilhan Omar and the other members of their so-called “Squad.”  It is also the party of Barack Obama and his fellow traitors who sought to destroy the candidacy and then the presidency of Donald Trump, and who should be in prison for the rest of their lives—at the very least.[5]

Bald Eagle and American Flag --- Image by © Ocean/Corbis

© 2019, 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 and his firm, Timothy D. Naegele & Associates, specialize in Banking and Financial Institutions Law, Internet Law, Litigation and other matters (see www.naegele.com and Timothy D. Naegele Resume-19-4-29). He has an undergraduate degree in economics from the University of California, Los Angeles (UCLA), as well as two law degrees from the School of Law (Boalt Hall), University of California, Berkeley, and from Georgetown University. 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 (see, e.g., https://en.wikipedia.org/wiki/Commendation_Medal#Joint_Service). 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 https://www.nysun.com/national/latest-ploy-against-trump-is-to-conjure/90804/; see also https://naegeleblog.wordpress.com/2019/08/13/china-is-americas-enemy-and-the-enemy-of-free-people-everywhere/ (“China Is America’s Enemy, And The Enemy Of Free People Everywhere”)

[3]  See https://naegeleblog.wordpress.com/2019/02/06/the-state-of-our-union-2019/#comment-17585 (“America’s Global Might”)

[4]  See https://naegeleblog.wordpress.com/2019/08/11/u-s-attorney-general-barr-is-appalled-give-americans-a-break/#comment-18748

[5]  See, e.g., https://naegeleblog.wordpress.com/2019/08/11/u-s-attorney-general-barr-is-appalled-give-americans-a-break/ (“U.S. Attorney General Barr Is Appalled: Give Americans A Break!”) and https://naegeleblog.wordpress.com/2019/04/18/the-mueller-report-a-monumental-travesty/ (“The Mueller Report: A Monumental Travesty”) and https://naegeleblog.wordpress.com/2019/03/24/the-mueller-witch-hunt-is-over/ (“The Mueller Witch Hunt Is Over”) and https://naegeleblog.wordpress.com/2019/04/29/the-democrats-are-evil-but-smart-while-the-republicans-are-neanderthals-and-dumb/ (“The Democrats Are Evil But Smart, While The Republicans Are Neanderthals And Dumb”) and https://naegeleblog.wordpress.com/2018/05/24/should-barack-obama-be-executed-for-treason/ (“Should Barack Obama Be Executed For Treason?”) and https://naegeleblog.wordpress.com/2018/03/11/robert-mueller-should-be-executed-for-treason/ (“Robert Mueller Should Be Executed For Treason”) and https://naegeleblog.wordpress.com/2017/10/20/the-real-russian-conspiracy-barack-obama-the-clintons-and-the-sale-of-americas-uranium-to-russias-killer-putin/ (“The Real Russian Conspiracy: Barack Obama, The Clintons, And The Sale Of America’s Uranium To Russia’s Killer Putin”) and https://naegeleblog.wordpress.com/2013/07/15/justice-and-the-law-do-not-mix/ (“Justice And The Law Do Not Mix”) and https://naegeleblog.wordpress.com/2012/03/21/the-united-states-department-of-injustice/ (“The United States Department of Injustice”); see also https://naegeleblog.wordpress.com/2019/07/29/barack-obama-is-responsible-for-americas-tragic-racial-divide/ (“Barack Obama Is Responsible For America’s Tragic Racial Divide”) and https://naegeleblog.wordpress.com/2009/12/05/is-barack-obama-a-racist/ (“Is Barack Obama A Racist?”) and https://www.dailymail.co.uk/news/article-7340581/Jerry-Nadler-says-formal-impeachment-proceedings-against-Donald-Trump-launched.html (“[Totally-despicable] Jerry Nadler says ‘formal impeachment proceedings’ against Donald Trump have been launched’)





The Obama Great Depression

16 01 2016

 By Timothy D. Naegele[1][2]

Soon after the presidency of Barack Obama began—on April 8, 2009—the  McClatchy-Tribune News Service published an article of mine entitled, “Euphoria or the Obama Depression?”[3]  In it, I wrote:

Barack Obama is euphorically optimistic, but neither he nor the leaders of other countries can hold back an economic tsunami, just as mankind is helpless to stop the wrath of natural tsunamis in the oceans.

. . .

According to the Rasmussen Reports, most Americans—53 percent, in fact—believe the United States is at least somewhat likely to enter a 1930s-like Depression within the next few years. If so, the repercussions are unfathomable.

. . .

Years from now, economic historians may look back at this era and conclude that the world’s central bankers were overwhelmed and Depression-era “safety nets” did not work; and global market forces ultimately determined the depth and duration of the economic meltdown, not the politicians in Washington or anywhere else.

The tsunami that was released when the housing bubble finally burst may not run its course until about 2017-2019; and its effects will be devastating worldwide. There are no legislative solutions or quick fixes to the problems. The carnage between now and 2019 will approximate the Great Depression. . . .

. . .

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. Also, the limits of godless secularism and paying homage to the false gods of materialism may become self-evident.

It is interesting to reflect on these comments and others contained in the article, as well as those in an companion article that I wrote for the American Banker—the daily newspaper of the U.S. banking industry—and in an interview that I gave on these subjects.[4]  Today, it is as though the economies of individual countries are “careening,” creating a “cascading” effect.

This is not 2008 all over again. It may be much worse, even eclipsing the Great Depression of the last century.  A “perfect storm” has been gathering for a long time now; and when it hits with its full force and fury, 2008 may seem like a “blip” by comparison.  America’s Fed and the other central banks of the world will be overwhelmed; Depression-era “safety nets” will not make any difference; and panics may ensue.

The biggest worry in Washington for many years has been that there would be runs on the big funds, which are uninsured, and that a “liquidity crisis” of unfathomable proportions would occur—which would be unstoppable.  Americans and people of other countries have lost trust in their governments, which will only compound the problems.

Hold on tight. Things will get very scary between now and the end of this decade.[5]  Whatever happens will be attributable principally to Barack Obama’s failed presidency.  Indeed, there are so many tragedies he has spawned that it is impossible to do justice to each of them in a short article like this one.

For example, he has set back race relations in the United States by years if not decades. He has been a divider, not a healer.[6]  With respect to his so-called major policy “accomplishments”—such as Obamacare, limited gun control, and the Paris man-made “global warming” accords—they can and probably will be undone by executive orders on Day One when the next American president takes office less than a year from now.  Americans are clamoring for this to happen.[7]

Obama may go down as the worst president in American history, even eclipsing Jimmy Carter, which is a remarkable feat unto itself.  History may record that Obama became a “transformative” or revolutionary president, which is not what the majority of Americans wanted. Perhaps because he was not raised on the U.S. mainland, his perspective is not that of most Americans . . . even blacks.[8]

With the global economy imploding, and Obama being an impediment to the U.S. growth that has occurred, his place in American economic history may rank next to or below that of Herbert Hoover.

Today, Barack Obama is like a minstrel wandering the land, with respect to whom no one will listen.

© 2016, Timothy D. Naegele

Obama-gone

_______________________________________________

[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 and his firm, Timothy D. Naegele & Associates, specialize in Banking and Financial Institutions Law, Internet Law, Litigation and other matters (see www.naegele.com and http://www.naegele.com/documents/TimothyD.NaegeleResume.pdf). 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 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; see also Google search: Timothy D. Naegele

[2] Note: This article is an expansion of earlier articles and comments at this blog.  See, e.g., https://naegeleblog.wordpress.com/2010/09/27/the-economic-tsunami-continues-its-relentless-and-unforgiving-advance-globally/ (“The Economic Tsunami Continues Its Relentless And Unforgiving Advance Globally”) (see all of the comments beneath it) and https://naegeleblog.wordpress.com/2009/12/05/is-barack-obama-a-racist/#comment-8016 (“Barack Obama: A Failed American Presidency”) and https://naegeleblog.wordpress.com/2010/09/27/the-economic-tsunami-continues-its-relentless-and-unforgiving-advance-globally/#comment-8011 (“Helter Skelter Is Arriving With A Thud, Sell Everything”) and https://naegeleblog.wordpress.com/2010/09/27/the-economic-tsunami-continues-its-relentless-and-unforgiving-advance-globally/#comment-7614 (“Doomsday Clock For Global Market Crash Strikes One Minute To Midnight As Central Banks Lose Control“) and https://naegeleblog.wordpress.com/2012/02/07/poverty-in-america/#comment-7646 (“The Surging Ranks Of America’s Ultrapoor”) and  https://naegeleblog.wordpress.com/2010/09/27/the-economic-tsunami-continues-its-relentless-and-unforgiving-advance-globally/#comment-8006 (“The EU’s Collapse In 2016?“) and https://naegeleblog.wordpress.com/2015/07/01/global-chaos-and-helter-skelter/ (“Global Chaos And Helter Skelter”)

[3]  This article has been republished by RealClearPolitics, and can be found at the links that follow.

See http://www.realclearpolitics.com/news/tms/politics/2009/Apr/08/euphoria_or_the_obama_depression_.html (“Euphoria or the Obama Depression?”) and http://www.naegele.com/documents/Commentary-EuphoriaortheObamaDepression.pdf (“Commentary: Euphoria or the Obama Depression?

[4]  See http://www.americanbanker.com/issues/173_212/-365185-1.html and http://www.naegele.com/documents/GreenspansFingerprints.pdf (“Viewpoint: Greenspan’s Fingerprints All Over Enduring Mess”); see also http://marketshadows.com/2012/05/21/greenspans-legacy-more-suffering-to-come/ and http://seekingalpha.com/instablog/2951-market-shadows/31177-interview-with-timothy-d-naegele and http://www.naegele.com/documents/InterviewwithTimothyD.Naegele-ilene–SeekingAlpha.pdf (“Greenspan’s legacy: more suffering to come”)

[5]  Not factored into these comments explicitly are the effects of (1) the terrorist strikes on Paris and elsewhere in the world; (2) the immigration issue that is tearing Europe and the Middle East apart; (3) the military implosion that is taking place in the Middle East, with much worse yet to come; and (4) the effects of our adversaries (e.g., China, Russia, North Korea, Iran) on peace, and on the American and global economies.

See, e.g., https://naegeleblog.wordpress.com/2015/11/20/we-are-all-parisians/ (“We Are All Parisians”) and https://naegeleblog.wordpress.com/2010/01/19/emp-attack-only-30-million-americans-survive/ (“EMP Attack: Only 30 Million Americans Survive”) and https://naegeleblog.wordpress.com/2015/11/29/the-death-of-putin-and-russia-the-final-chapter-of-the-cold-war/ (“The Death Of Putin And Russia: The Final Chapter Of The Cold War”) and https://naegeleblog.wordpress.com/2011/01/13/china-is-americas-enemy-make-no-mistake-about-that/ (“China Is America’s Enemy: Make No Mistake About That”) and https://naegeleblog.wordpress.com/2010/12/22/the-next-major-war-korea-again/ (“The Next Major War: Korea Again?”) and https://naegeleblog.wordpress.com/2009/12/28/human-trafficking/ (“Human Trafficking”) and https://naegeleblog.wordpress.com/2015/12/06/islamophobia-is-un-american/ (“Islamophobia Is Un-American”) and https://naegeleblog.wordpress.com/2015/12/31/is-israel-doomed/ (“Is Israel Doomed?”)

[6]  See, e.g.https://naegeleblog.wordpress.com/2009/12/05/is-barack-obama-a-racist/#comment-8016 (“Barack Obama: A Failed American Presidency”)  and https://naegeleblog.wordpress.com/2009/12/05/is-barack-obama-a-racist/ (“Is Barack Obama A Racist?”)

[7]  See, e.g., https://naegeleblog.wordpress.com/2015/11/30/a-34-trillion-swindle-the-shame-of-global-warming/ (“A $34 Trillion Swindle: The Shame Of Global Warming”) and https://naegeleblog.wordpress.com/2012/12/20/abortions-and-autos-kill-more-in-america-than-guns/ (“Abortions And Autos Kill More In America Than Guns”)

[8]  See, e.g., https://naegeleblog.wordpress.com/2015/01/03/edward-w-brooke-is-dead/#comment-7434 (“Disappointment In Obama Leads Some Blacks To Ask Whether Voting Is Worth It”)





Poverty In America

7 02 2012

 By Timothy D. Naegele[1]

Presidential candidate Mitt Romney made one of the dumbest and most insensitive comments that I have ever heard from an American politician since I became involved with politics:
You can choose where to focus.  You can focus on the rich; that’s not my focus.  You can focus on the very poor; that’s not my focus.  My focus is on middle-income Americans.

He went on to explain that “[w]e have a safety net for the poor.”  And “[i]f there are people that are falling through the cracks, I want to fix that.”[2]

However, the fact that America’s poorest citizens theoretically have access to food stamps, Medicaid and housing vouchers[3]—which Romney cited—does not constitute much of a “safety net” at all.  Some Americans, such as senior citizens, are too proud to accept any governmental assistance (other than Social Security and Medicare benefits) or handouts.  They have worked all of their lives; and to find themselves in poverty is embarrassing and deeply depressing.  They and others are often turned away or sanctioned by the government bureaucracy that can be brutal and cruel, especially to people who are truly in need.[4]

Those Americans who had moved into our “Middle Class” will lose their homes and everything else, which is happening already.  The idea that colleges and professional schools were guaranteed pathways to success will also evaporate.[5]  Our society and that of other countries will be upended.  And yes, there will be “class warfare,” which Barack Obama and his surrogates are fanning already.  Leave aside the fact that he will add more debt than all 43 prior presidents combined, demagoguery is in season and full swing.

When I worked in the U.S. Senate as a young lawyer with its Senate Banking Committee and later headed the Senate staff of Edward W. Brooke (R-Mass)—the first African-American in the Senate since Reconstruction following our Civil War, with Obama being the third—the senator and I met with Mitt’s father who was Secretary of Housing and Urban Development (1969-1973)[6], and I was very impressed with him.  At that time, I was working on the passage and implementation of the Housing and Urban Development Acts of 1969 and 1970, which included the “Brooke Amendment” relating to public housing; and the national “Housing Allowance” program, which morphed into the Section 8 housing program that has helped millions of Americans.  The senator, George Romney and I talked about these programs at length.

On behalf of Senator Brooke, I also established a summer program for disadvantaged kids in Massachusetts, in conjunction with the Pentagon, which involved underutilized military facilities within the state (e.g., the Boston Navy Yard, Otis Air Force Base) and served approximately 100,000 kids during its first year alone.  Indeed, the senator and I traveled to Massachusetts with then-Secretary of Defense Melvin R. Laird in his private plane to review the program and its progress.

In making my observations, I am not singling out Mitt Romney for condemnation.  I have believed in Mitt for a long time now, and will vote for him—in no small part because I share most of his positions with respect to the economy and national security issues.  However, lots of politicians and other successful Americans are “tone deaf” when it comes to the needs of the poor.  They do not relate to them at all, and they cannot understand them.  To be poor is a sign of failure in our success-oriented and driven society.  Our advertising touts beautiful bodies and fancy cars and materialistic dreams.  In no way are the poor glorified, much less given dignity.  Shame is heaped on them, which is wrong.

When I was graduating from grade school in Los Angeles, my mother came to the ceremony in a wheelchair, and I was mortified.  No other mothers were present like that.  She had suffered the convergence of two debilitating illnesses, which robbed her of her beauty and almost killed her.  By the time that I was entering high school, her right leg had been amputated, which stopped the onslaught of what she had gone through; and during the Vietnam War, she walked with an artificial leg and was named the “Woman of the Year” by the local chapter of the Red Cross—for her outstanding volunteer work.

What all of this taught me was that her faith in God had sustained her, and given her courage, hope, joy and great love.[7]  And that stigmas and discrimination attach, especially in Southern California, to those people who are physically or mentally “challenged” or handicapped, the poor, and to those who are not “beautiful.”  Hollywood has gone nationwide and worldwide since then, with a vengeance; and life-threatening illnesses and poverty are not part of the “American dream,” which has been embraced by people globally.  As the U.S. economy declines more between now and the end of this decade—which will happen to an even greater extent in countries around the world—poverty, human suffering, misery and anger will increase dramatically.[8]

The core issues will be how Americans adjust to their poverty and hopelessness, which will be just as rampant in this decade as during the Great Depression of the last century that did not end until the onset of World War II, at the earliest.  There are no easy solutions to losing one’s job, home, car and everything else.  As State governments scramble to avoid bankruptcy, programs that might have helped the poor will no longer exist.  For example, in California, State parks are being closed; and the nightly price for staying at those that remain open equals the cost of a cheap motel already.  Where will the poor stay, especially if they have no family members who can—or are willing to—take them in?  How will they afford food to eat, and find transportation to get from one place to another (e.g., looking for work)?  When inclement weather sets in, how will they survive?

The published numbers of “poor” do not begin to tell their tragic stories; and the human suffering will increase and become unfathomable during the balance of this decade, whether Romney is president or not.  Pure economics will dictate this; and there is nothing that can be done governmentally, by any politician.[9]  And yes, many of those poor will be “middle-income Americans” or those who had been members of our Middle Class.  They will be devastated; suicides and divorces will increase[10]; and families will be torn asunder.  Mitt Romney and the wealthy of the United States—which includes Obama and most members of Congress—need to wake up now, and begin to demonstrate real compassion.  The problem is that they have no earthly idea of what it is like to be poor.

In Greece today, parents are giving away their children because they cannot afford them.  Kids are being dumped in streets or abandoned at shelters with notes attached to them, saying that one or both parents are at wits’ end.[11]  Poverty breeds inhumanity on a scale that is unknown to most Americans; and it also breeds crime (including massive Internet fraud[12]), which will increase in the United States as money for law enforcement declines and as our prisons are overcrowded and prisoners are released.  Reality is crashing down with a thud like never before in our lifetimes.

As I wrote almost three years ago:

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. Also, the limits of godless secularism and paying homage to the false gods of materialism may become self-evident.[13]

The chickens are coming home to roost, in spades; and the “good times” are ending for vast numbers of Americans and their counterparts around the world.

Others will remain rich, or attain great riches[14]; and I do not begrudge it to them at all.  I do not envy or covet what another has.  I have never done so.  My parents taught me that, by their own words and actions.  In my lifetime thus far, I have had lots of money, and none.  I have friends with many millions, and one with several billions; and others who have nothing.  I have treated them all the same—with love, respect, dignity and compassion.

I lived in a tent for months at a time—with water everywhere inside it, during the rainy season—because that was all I could afford.  I have had two cars repossessed, as well as a boat.  I have been evicted; and lost my dream house, as well as most of the possessions that were important to me, including priceless family items that had been handed down over generations.  When I was in law school, I had a pair of shoes resoled so many times that I was told it could not be done anymore; and I have struggled to make ends meet for food.

I do not wish any of this on others.  However, I realize that many Americans have experienced losses, pain and suffering that are far worse than I ever have; and this is true today of people abroad who are dying of wars, diseases and malnutrition, and are being forced into slavery and prostitution.[15]  I have great faith in God, the United States, all Americans[16], and people everywhere.  I believe we will survive like my mother did.  However, we will be tested like never before.

© 2012, 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; see also Google search:Timothy D. Naegele

[2] See http://edition.cnn.com/2012/02/02/politics/campaign-wrap/?hpt=hp_t1

[3] As discussed later in this article, “housing vouchers” are an outgrowth of the national “Housing Allowance” program that I crafted as a young attorney with the Senate Banking Committee—which was complementary to the “Brooke Amendment,” and morphed into the Section 8 housing program that has helped millions of Americans.

[4] As I have written:

[L]awyers who are prosecutors are often less interested in fairness and justice than they are in winning at all costs, and exercising their raw power and hurting others in the process—such as those who are innocent but are convicted anyway.

See https://naegeleblog.wordpress.com/2011/01/03/the-american-legal-system-is-broken-can-it-be-fixed/

And I added:

A federal official with reason to know told me that between 15-20 percent of the indictees in federal courts are probably innocent.  Some are seniors who have been charged with cheating the Social Security program, and they are scared to death, so they agree to plea bargains rather than fight for their innocence.

See id. at n.8.  This is truly frightening, and cruel.  Also, those who are engaged in prosecutorial misconduct are “sheltered” by the government, which is a travesty unto itself.  Aside from any civil remedies against them, such prosecutors should be prosecuted and disbarred.

See, e.g.http://www.usatoday.com/news/washington/story/2012-02-06/ted-stevens-prosecutors-justice-department/52922922/1 (“Taxpayers pay to defend prosecutors in Ted Stevens case”); see also https://naegeleblog.wordpress.com/2011/01/03/the-american-legal-system-is-broken-can-it-be-fixed/#comment-1700 (“Perhaps the best remedy for such abuses is to have the ‘guilty’ prosecutors incarcerated; and let justice be meted out with respect to them, by those in prisons”)

[5] See, e.g., https://naegeleblog.wordpress.com/2011/01/03/the-american-legal-system-is-broken-can-it-be-fixed/#comment-1977 (“Law School May Amount To The Worst Investment Of Her Life!”) and https://naegeleblog.wordpress.com/2011/07/29/are-colleges-dinosaurs/ (“Are Colleges Dinosaurs?”) (see also the footnotes and all other comments beneath the article)

[6]  See, e.g., http://en.wikipedia.org/wiki/George_W._Romney#Secretary_of_Housing_and_Urban_Development

[7] See, e.g.https://naegeleblog.wordpress.com/2010/05/12/what-and-where-is-god/ (“What And Where Is God?”) (see also the footnotes and comments beneath the article)

[8] See, e.g., https://naegeleblog.wordpress.com/2010/09/27/the-economic-tsunami-continues-its-relentless-and-unforgiving-advance-globally/#comment-1960 (“Global Economy Could Endure Disaster For a Week”) (see also the article itself, as well as the footnotes and all of the other comments beneath it)

[9] See, e.g., http://www.americanbanker.com/issues/173_212/-365185-1.html (“Greenspan’s Fingerprints All Over Enduring Mess”) and http://www.realclearpolitics.com/news/tms/politics/2009/Apr/08/euphoria_or_the_obama_depression_.html (“Euphoria or the Obama Depression?”); see also http://www.philstockworld.com/2009/10/11/greenspan’s-legacy-more-suffering-to-come/ (“Greenspan’s legacy: more suffering to come”)

[10] See https://naegeleblog.wordpress.com/2011/07/14/divorces/ (see also the footnotes and comments beneath the article)

[11] See, e.g., http://www.dailymail.co.uk/news/article-2085163/Children-dumped-streets-Greek-parents-afford-them.html (“Children ‘dumped in streets by Greek parents who can’t afford to look after them any more'”)

[12] See https://naegeleblog.wordpress.com/2010/01/31/lawyers-and-internet-scams/ (“Lawyers And Internet Scams”) (see also the footnotes and all of the comments beneath the article)

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

[14] See, e.g., http://www.thedailybeast.com/galleries/2012/02/02/the-youngest-and-richest-people-in-america-from-mark-zuckerberg-to-sean-parker-photos.html (“The 10 Youngest Richest, From Sergey Brin to Mark Zuckerberg”)

[15] See https://naegeleblog.wordpress.com/2009/12/28/human-trafficking/ (“Human Trafficking”) (see also the footnotes and all of the comments beneath the article)

[16] See https://naegeleblog.wordpress.com/2010/02/26/america-a-rich-tapestry-of-life/ (“America: A Rich Tapestry Of Life”) (see also the footnotes and all of the comments beneath the article)





Are Colleges Dinosaurs?

29 07 2011

 By Timothy D. Naegele[1]

A friend of mine has some kids who are starting college this fall, and they just got back from an orientation session at the campus, which they loved.  Obviously the kids are talented because it is difficult to get into the school, and only the best students are chosen.  Everything was positive except for one thing: the cost.  As my friend told me: it is going to be very expensive right in the midst of a job change.  Amen to that!  The exorbitant costs associated with college educations have been rising for a long time now.[2]

America’s Middle Class is being priced out of colleges for their kids; and many parents are questioning whether college is worth it, and whether they can afford it.[3]  This is true to an even greater extent when it comes to graduate schools, such as law schools.[4]  As more and more Americans face economic problems during the balance of this decade, which will be true of their counterparts abroad as well[5], many will find that undergraduate college educations and graduate schools are luxuries that they cannot afford.  Many families will be doing whatever they can just to survive.

Lots of parents of those Americans who grew up during and after World War II never went to college.  To these parents, colleges were a gateway to great jobs and wonderful futures and the “American dream” for their children.  Today, like the issue of “home ownership” that was sold as part of that dream too, Americans are reassessing their goals and their capabilities; and their conclusions may not augur well for colleges, universities and graduate schools in the United States and abroad.  Certainly in the case of State-supported schools, where budgetary pressures are dictating that their expenditures be slashed, the twin pincers of parents who cannot afford to send their kids to these schools, and declining budgets, may break the backs of such schools.

Another old friend of mine, who covered Washington for many years as a talented and insightful political and economic reporter and editor, told me recently that colleges are effectively dinosaurs and relics of the past, like newspapers and newsweeklies in this Internet age.  The educational institutions of the future will be online—or so my friend believes—which cost a fraction of what “bricks-and-mortar” educational institutions cost today.  The kids now are computer literate like no generation of the past; and the idea of learning online is second nature to them.

Why spend money on college tuitions and campus living expenses, and professors’ salaries and the infrastructure of college campuses, when everything can be done online for a fraction of the cost?  Why have professors repeating essentially the same lectures year after year, when such lectures can be taped once and shown again and again on YouTube?  Why not eliminate “redundancy” and have the best professors teaching students online nationwide, and eliminate the costs of multiple professors?  Why allow “teaching assistants” (or “TAs”) to educate our kids, when the professors are paid to do this?  Why not eliminate colleges and graduates schools in wholesale numbers—just like libraries and book stores are closing or becoming “bookless” because everything is online?

The bottom line with respect to whether education shifts to the Internet might not be a function of conscious decisions by educators or parents: pure economics in America and globally will determine the results.  Falling governmental tax revenues will dictate drastic cuts like never before; and declining personal incomes and home values and foreclosures, and other family sacrifices, will result in changes to personal life styles that will affect the way educational programs are perceived and delivered worldwide.  It is not surprising that the Washington Post‘s parent sold Newsweek magazine for $1, and kept the Kaplan online schools that have become increasingly “cash cows” for the company.[6]

© 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; see also Google search:Timothy D. Naegele

[2] I served on the Board of Directors of the University of California, Santa Barbara Alumni Association, and as a Trustee of the UCSB Foundation, for a combined total of approximately ten years, overlapping the time that both of my kids and their spouses attended UCSB.  See http://www.naegele.com/naegele_resume.html

Tuition hikes were coming then, and I argued vehemently that they would price the Middle Class out of a University of California education.  I am a product of the University of California system, having attended UCSB, UCLA and Berkeley for law school; and the Middle Class has been the backbone of the university.  Needless to say, the cost hikes since I served on the UCSB boards have been even worse.

Also, the same thing has been happening with the law schools, yet law school graduates cannot find jobs today.  What they do is load themselves up with massive student loans, and then are unemployed or forced to take menial jobs, and they default on the loans.  It is “fraud” on the part of the law schools, because they keep touting the “value” of their education.  See infra n.4.

I had a “spirited discussion” about these issues with a very nice female UCSB professor, who was the “faculty adviser” to one of the boards on which I served; and I asserted that UCSB (and other UC schools) were not preparing undergrads for jobs, and that the job market for them would get even tighter.  Her response was that if students want to be prepared for jobs, they would need to go to graduate schools.  I essentially told her that was absurd because neither the students nor their parents could afford it, but this fact of life did not faze her one iota.

I expect before the end of this decade that one or more of the California State University campuses will close because of budgetary problems.  Whether it happens with one of the UC campuses remains to be seen.  This pattern will be repeated elsewhere in the United States, and in other countries.

[3] See, e.g., http://www.foxnews.com/us/2011/07/28/african-american-middle-class-eroding-as-unemployment-rate-soars/?test=latestnews (“It’s quite a sign of the times that people are questioning whether their education was worth all the time, effort and expense”)

[4] See, e.g., https://naegeleblog.wordpress.com/2011/01/03/the-american-legal-system-is-broken-can-it-be-fixed/#comment-1274 (“Is Law School A Losing Game?”) and https://naegeleblog.wordpress.com/2011/01/03/the-american-legal-system-is-broken-can-it-be-fixed/#comment-1583 (“The Law: A Less Gilded Future”) (see also the article itself, as well as the footnotes and other comments beneath it)

[5] See, e.g., https://naegeleblog.wordpress.com/2010/09/27/the-economic-tsunami-continues-its-relentless-and-unforgiving-advance-globally/ (“The Economic Tsunami Continues Its Relentless And Unforgiving Advance Globally”) (see also the footnotes and comments beneath the article)

[6] See, e.g., http://www.businessinsider.com/its-official-newsweek-will-be-sold-to-former-stereo-equipment-mogul-sidney-harman-who-reportedly-bid-1-in-excha-2010-8 (“Newsweek Sells For $1 To Stereo Equipment Mogul Sidney Harman”) and http://en.wikipedia.org/wiki/The_Washington_Post_Company





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 https://naegeleblog.wordpress.com/2010/01/20/the-end-of-barack-obama [Please note: the postings beneath this article are important as well]; see also https://naegeleblog.wordpress.com/2010/11/12/sarah-and-todd-palin-the-big-winners and https://naegeleblog.wordpress.com/2010/03/31/the-rise-of-independents/ and https://naegeleblog.wordpress.com/2010/09/01/the-speech—is-barack-obama-smoking-pot-again/ and https://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 https://naegeleblog.wordpress.com/2009/12/16/the-great-depression-ii/ and https://naegeleblog.wordpress.com/2010/04/23/is-financial-reform-simply-washingtons-latest-boondoggle/ and https://naegeleblog.wordpress.com/2010/05/16/will-the-eus-collapse-push-the-world-deeper-into-the-great-depression-ii/ and https://naegeleblog.wordpress.com/2010/09/27/the-economic-tsunami-continues-its-relentless-and-unforgiving-advance-globally

[4] See, e.g., https://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 https://naegeleblog.wordpress.com/2009/12/26/obama-in-afghanistan-doomed-from-the-start/

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

[6] See, e.g., https://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; https://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 https://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 https://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 https://naegeleblog.wordpress.com/2010/01/20/the-end-of-barack-obama/#comment-968 and https://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 https://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 https://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.https://naegeleblog.wordpress.com/2010/02/09/russias-putin-is-a-killer/ and https://naegeleblog.wordpress.com/2010/02/09/russias-putin-is-a-killer/#comment-1014

[16] See, e.g.https://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 https://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 https://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 https://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 https://naegeleblog.wordpress.com/2009/12/05/is-barack-obama-a-racist/

[28] See, e.g., https://naegeleblog.wordpress.com/2010/10/04/john-f-kennedy-the-most-despicable-president-in-american-history/ and https://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








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