Obama Dresses US as Banana Republic

"After the cult of personality," the Colombian explained, "what comes next is nationalization." Fidel had nationalized the Cuban sugar mills, Chavez the Banco de Venezuela, Morales the Bolivian oil and gas industries.

..."The last step?" asked the Cuban. "Censorship. It won't be obvious at first--they're always too smart for that. But it will come."

"Never," replied the American. "We have the First Amendment."

"And soon enough," the Cuban said, smiling sadly, "you will also have the Fairness Doctrine." _Forbes

Latin Americans have seen the phenomenon occur time after time. They are repeat suckers for the big talking populist. But fter 8 years of GW Bush, 8 years of Clinton's finger, and 4 years of GHW Bush, the US was completely unprepared for a catastrophic populist socialism oozing from a reassuringly soft baritone that could lip-synch to a telprompter.

America is being put to the test. Can it wake up in time to stop the slow-motion cataclysm, or will it play dead to the dictator, as Latin America has done so well so many times? Because the real world of economics will not be charmed by a soothing telepromptered voice. The real world of economics will make people bleed and die if its rules are not properly followed -- despite the consensus of rich socialites, celebrities, media culture, and left-wing politicos.

The source of skepticism for many Americans is not the prospect of government waste but Obama's theory of job creation......most jobs are created by private capital in the private sector, often by small businesses. And small businesses got little policy attention in Obama's speech. An example Obama used -- retaining police officers -- is a worthy cause, but hardly typical of American job creation. A small-business owner heard nothing about his daily struggles with litigation or regulation.

There is an element of psychology -- of confidence -- in taking the risks of entrepreneurship and small-business expansion. It is difficult to imagine how that confidence is built by being ignored.

Obama was even less credible on the issue of debt. Most Americans seem to accept the need for the temporary deficit spike to provide a jolt to the economy. But Obama's pledges to go "line by line through the federal budget" and to remove "waste, fraud and abuse" were the most tired portions of his energetic speech -- and simply were not credible with Speaker Nancy Pelosi in vivid green over his left shoulder. _WaPo

Ever since mid September, 2008, when Obama became a heavy favourite to win the US Presidency, the markets of the US and the world have been dropping. Obama should have seen the panic of the markets, and reacted as any sane leader would have done. Instead, he has moved even more wildly in the opposite direction, proving to the markets that their panic was reasonable all along.

....economic activity adheres to some predictable truths. If you tax businesses and investors more, they’ll have less money to devote to wealth creation and hiring. If you bail out firms that should be put through bankruptcy, you’ll perpetuate ineptitude in management and misallocation of resources. If you keep credit-unworthy people in homes, they’ll eventually default and further weaken financial institutions.

Some things can’t be disguised by stagecraft or media cheerleading. In the end, it matters what you do, not how you describe your plans. _Commentary

The US becomes another third world nation, if it continues along the Obama / Pelosi road.