Obama Looking less George W. Bush and more Jimmy Carter/LBJ

Posted by PITHOCRATES - April 1st, 2011

Construction Spending down despite all those Shovel-Ready Projects

Some days it just sucks to be Obama (see February construction spending down 1.4% by Steve Goldstein posted 1/1/2011 on MarketWatch).

February construction spending fell 1.4% to a seasonally-adjusted annual rate of $760.6 billion, the lowest level in more than 11 years, the Commerce Department said Friday. January spending was revised lower to a decline of 1.8% from a previous estimate of a 0.7% fall. Economists polled by MarketWatch had forecast a 0.1% rise.

Construction is the last to enter recession.  And it’s the last to emerge from recession.  Because it takes a long time to go from design to completion.  But after all those shovel-ready projects bought and paid for by the stimulus bill back in 2009, construction should not be the worse it has been in 11 years.  That means the economy is still a mess.  And it may very well get messier.

First bad Fiscal and Monetary Policy, then Inflation

Yes, we’re still mired in recession.  But recession may soon be joined with something we haven’t seen since the 1970s.  At least, not during a recession (see Fed Is Likely to Raise Rates By End of the Year: Lacker by CNBC.com and Reuters posted 1/1/2011 on CNBC).

Richmond Federal Reserve President Jeffrey Lacker told CNBC Friday that he “wouldn’t be surprised” if the central bank raised interest rates before the end of the year…

He said his greater concern is rising inflation and controlling it in the next nine months “will be critical for us.”

Jimmy Carter must be smiling.  Many say he was the worst president.  Mainly because of the stagflation of the 1970s.  High unemployment and high inflation.  Normally, you don’t get the two together unless you really managed to make a mess of the economy.  And now it looks like Obama may go all Jimmy Carter on us.  We still have record unemployment.  And the Fed, while they’re still planning to go ahead with more quantitative easing in June:

At its last meeting, the Fed voted unanimously to continue as planned with its $600 billion bond purchase program, designed to lower interest rates and stimulate growth, which is scheduled to end in June.

is already talking about battling the inflation their previous actions have given us.  Which they did in a futile attempt to counter Obama’s job-killing fiscal policies.  No doubt Carter is grateful he has lived to see this day.  When another president has ruined the economy greater than he did.

TARP bails out Libyan Owned Bank

But it gets better.  For Carter, that is (see Libya-Owned Arab Banking Corp. Drew at Least $5 Billion From Fed in Crisis by Donal Griffin and Bob Ivry posted 1/1/2011 on Bloomberg).

Arab Banking Corp., the lender part- owned by the Central Bank of Libya, used a New York branch to get 73 loans from the U.S. Federal Reserve in the 18 months after Lehman Brothers Holdings Inc. collapsed.

The bank, then 29 percent-owned by the Libyan state, had aggregate borrowings in that period of $35 billion — while the largest single loan amount outstanding was $1.2 billion in July 2009, according to Fed data released yesterday. In October 2008, when lending to financial institutions by the central bank’s so- called discount window peaked at $111 billion, Arab Banking took repeated loans totaling more than $2 billion…

Arab Banking reported a loss of $880 million in 2008 as it took a $1.1 billion charge tied to structured investment vehicles and derivative products known as collateralized debt obligations. Arab Banking recovered during the next two years, posting profits totaling $265 million.

So, Arab Banking Corp., part-owned by the Central Bank of Libya, the country we’re currently bombing now to ‘encourage’ regime change, was ‘bailed out’ in our TARP program.  That hurts in so many ways.  Our tax dollars that our Congress authorized to purchase trouble assets (i.e., all those Fannie Mae and Freddie Mac subprime mortgages) not only bailed out Obama’s friends on Wall Street, they bailed out foreign banks.  Even helped a Libyan dictator.  Who we’re now trying to ‘accidentally’ kill.  I mean, you can’t make this stuff up.  Meanwhile, Carter looks like a better president with each day that passes by.  Who’d’ve thunk it?

Liberal Base says Obama is Worse than George W. Bush

And speaking of that Libyan…thing…that’s not a war but has all the bombing and killing of a war…how’s that going?  Not so good with the president’s base (see Liberals outraged by Libya intervention posted 1/1/2011 on UPI).

Liberal Democrats, key to Barack Obama’s election as U.S. president, are some of the loudest critics on his strategy on Libya, a review of reaction indicates…

“In two years we have moved from President [George W.] Bush’s doctrine of preventive war to President Obama’s assertion of the right to go to war without even the pretext of a threat to our nation,” Rep. Dennis Kucinich, D-Ohio, an anti-war liberal, said Thursday during a House floor speech. “This is a clear and arrogant violation of our Constitution. Even a war launched for humanitarian reasons is still a war — and only Congress can declare war.”

Rep. John Conyers, D-Mich., said Congress and the White House have argued for years over the division of power in wartime, but “the Constitution grants sole authority to the Congress to commit the nation to battle in the first instance.”

That sounds like they’re saying that Obama is worse than George W. Bush.  Wow.  At least Bush had the pretext of weapons of mass destruction.  What’s Obama got?  Well, had he not acted, there may have been another civil war in the world.  As bad as that is, it isn’t an imminent risk to American security.  Which means the president did not have the Constitutional authority to do what he did.  Unlike George W. Bush in Iraq.

The Military doesn’t want Obama’s Libyan War

So he’s losing his liberal base.  But he’s still got the military establishment, doesn’t he?  As the Left well knows, they don’t care about right or wrong.  They just like to kill people and blow things up.  Right?  Not exactly.  You see, actually knowing a thing or two about war, they are not all that eager to go to war (see U.S. Military Not Happy Over Libya by Leslie H. Gelb posted 1/31/2011 on The Daily Beast).

Pentagon civilian leaders and the military brass see nothing but trouble looming as the Obama administration takes one step after another into the Libyan morass. The next step appears to be arming the Libyan rebels, a move that would inevitably entail pressures to send U.S. trainers and even more potent arms—and a move that Defense Secretary Robert Gates flat-out rejected in testimony before Congress on Thursday. “What the opposition needs as much as anything right now is some training, some command and control, and some organization,” Gates said. As for providing weapons, that is “not a unique capability for the United States, and as far as I’m concerned, somebody else can do that.”

Libyan morass?  Wow.  That’s some heavy criticism.  That’s the kind of language they used back in the day of the Vietnam War.  Which was an unwinnable morass.  Interesting, too, that liberal presidents with aggressive domestic agendas created both of these morasses.  But can Obama win his war?  Even though LBJ couldn’t win his?  Or will Obama follow LBJ’s example and not seek nor accept his party’s nomination for a second term as president?  Guess time will tell.

U.S. aircraft took the lead in junking a good chunk of the Libyan Air Force and launched devastating attacks against Libyan tanks, artillery, and other ground forces. Despite the severity of these attacks, Libyan forces survived, regained the offensive, and are now moving back toward rebel strongholds in eastern Libya. And the expectation of U.S. intelligence is that without having to face U.S. air power, Gaddafi’s troops will build further momentum. So, U.S. military officials haven’t stopped worrying about being dragged yet again into the air war.

You know, this is a lot like the Vietnam War.  Every time we pulled back the enemy advanced.  Then we’d pound them back with our superior airpower.  Until Congress stopped paying for that superior airpower.  And then you know what happened?  No?  Not familiar with our actions to protect South Vietnam?  Okay.  Look on a current map for South Vietnam to find out how that turned out.  But don’ spend too much time looking for it. Because it’s not there anymore.

The rebels won’t be able to use most arms, even relatively simply ones like anti-tank rockets and rifles, without extensive training…

Remember, underneath everything happening now are the two driving goals that President Obama set: to protect populations and to oust Colonel Gaddafi. In all likelihood, U.S. coalition partners cannot achieve these goals without U.S. jets resuming combat missions. Even with more U.S. air power, it probably won’t be possible to stop Gaddafi without using some coalition ground forces. So, pressures to do more and more will continue to lurk. All the Pentagon can do, then, is to raise tough questions (Who are those rebels we’re determined to help, could they be Muslim extremists?) to diffuse pressures on the U.S. military to do more.

If you ever wondered how Vietnam happened, here’s a good teachable moment.  JFK sent in military advisors to train the Army of the Republic of Vietnam (ARVN).  These were the ‘good guys’ in South Vietnam.  But when the very well trained and well supported North Vietnamese Army (NVA) threw them back we needed more than advisors.  We started supporting the ARVN.  Then the ARVN started supporting us as we took over more and more of the war.  Next thing we knew hundreds of thousands of U.S. ground troops were fighting it out in the jungles of Vietnam.  And the rest is history.

Barack Obama makes Jimmy Carter look Good

The last month or so hasn’t been too good for our president.  The economy is still mired in recession.  Inflation is about to join those high unemployment numbers to give us some good old-fashioned Jimmy Carter misery.  Our taxpayer TARP money found its way to Libya.  Instead of buying our troubled assets.  The Liberal base is abandoning him.  The Libyan war is less Constitutional than Bush’s Iraq War.  And appears about as winnable as the Vietnam War.

Yup.  Sucks to be him.  When he’s not on vacation, that is.

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