Big Government, Fraud, Enemies and Wannabe Kings

Posted by PITHOCRATES - October 27th, 2010

Joe Biden Touts the Greatness of Big Government by Citing One of its Greatest Frauds

At a fundraising stop in Manhattan, Joe Biden said this (see VPOTUS Joe Biden: Dems Will “Keep The Senate And Win The House” by Celeste Katz in The Daily Politics):

“Every single great idea that has marked the 21st century, the 20th century and the 19th century has required government vision and government incentive,” he said. “In the middle of the Civil War you had a guy named Lincoln paying people $16,000 for every 40 miles of track they laid across the continental United States. … No private enterprise would have done that for another 35 years.”

Joe Biden ain’t the sharpest knife in the drawer.  Or he just thinks no one will know any better.  That we stopped our learning with our liberal public high school diploma.  Or our liberal university degrees.  Or he is just lying to us.

The Great Northern and the Milwaukee built their transcontinental railroads with private capital.  And without all of the corruption of the government funded line Biden talked about.  For a brief recounting of the great Crédit Mobilier Scandal, see LESSONS LEARNED #35: “Not only is ignorance bliss, but it’s a godsend to Big Government.” -Old Pithy on this same website.  The pertinent part of that post follows here:

Go West, Young Man

The transcontinental railroad was making poor progress during the Civil War.  Because it was starved for capital.  No one would invest.  Few doubted that they could build it.  Even if they could, few doubted it would ever make money.  The West was mostly raw, unsettled land.  There was nothing to transport.  Nothing to earn revenue.  It was a huge investment with a huge risk.  Investors are smart when it comes to money.  And they saw the transcontinental railroad as a one-way road that their money would go down and never return.  They needed something.  Big Government.

When it comes to throwing money away on a losing investment there is but one place to go.  Uncle Sam.  With the power to tax, the federal government has huge piles of money to play with.  So here’s what happened to build that railroad.  Union Pacific (UP) created a shell company called Crédit Mobilier (CM) to finance and build the railroad.  These companies were one and the same.  Without getting too complicated, UP sold their ‘worthless’ stock to CM at par.  Now, CM being a finance and construction company, a train never had to run over the road they were building to make a profit.  Union Pacific, on the other hand, needed trains running on that new track.  They were a transportation company.  They earned a profit from transporting goods on their trains.  This meant it could take years before UP could even hope to earn a profit on the new transcontinental railroad.  CM, on the other hand, could start earning a profit with the first invoice they submitted for construction.  And they did.

CM had strong revenues.  They submitted grossly inflated construction invoices to UP.  UP added a small construction management fee and submitted them to the government.  The government paid UP.  UP paid CM.  With revenues far exceeding their costs, CM made obscene profits.  CM stock took off into the stratosphere.  Some of which was sold to Congressmen at a deep discount who in turn realized obscene capital gains if they sold their stock.  Or collected obscene dividends if they held onto their stock.  In return for this sweetheart deal, they approved all cost overruns.  Killed any legislation unfavorable to UP/CM.  Provided lucrative incentives to build track on the worst ground in the most indirect path (to maximize the railroad’s mineral rights).  Provided little to no oversight on the construction of the road (some track was built on ice, with cheap steel and flimsy wooden trestles wherever possible).  When east met west the different railroads kept on building, parallel to each other to keep billing Uncle Sam.  All paid by the public treasury.  By the taxpayer.  The little guy.  Being raped and pillaged by their own representatives.

In an effort to praise Big Government, Biden picks one of the greatest frauds ever perpetrated by Big Government.  Like I said, he isn’t the sharpest knife in the drawer. 

Big Government and Property Rights – Mutually Exclusive in Venezuela

Meanwhile, in Venezuela, Big Government is on the move.  Hugo Chavez, Obama supporter and friend of Communist Fidel Castro, is showing what Big Government does best.  Abolish property rights.  They just stole an American company (see AP’s Chavez Orders Expropriation of Owens-Illinois).  Why?

The leftist leader criticized the company’s practices in the country, saying it had been “taking away the money of Venezuelans” and exploiting local people. Chavez did not detail his complaints about the company.

Exploited the local people?  They were probably the best jobs available in the local economy.  And if it wasn’t for Owens, there wouldn’t have been a plant to provide jobs for the local people in the first place.  The lesson here?  The state can’t create (despite what Chavez or Biden says), they can only take.  And when the state is above the law, you can keep on taking.  As Chavez said.

He said in his speech that more expropriations are planned.

Like Nixon Like Obama – They Check Their Enemies List and they Check it Twice Like Kings are Wont to Do

President Obama was speaking to a group of Latinos recently on Univision Radio.  He said:

I am president.  I’m not king.  I can’t do these things just by myself.  If Latinos sit out the election instead of saying we’re gonna punish our enemies and we’re gonna reward our friends who stand with us on issues that are important to us, if they don’t see that kind of upsurge in voting in this election, then I think it’s going to be harder, and that’s why I think it’s so important that people focus on voting on November 2nd.

Punish our enemies?  (Does Obama have an enemies list like Richard Nixon?)  Reward our friends?  Oh, he wishes he was king.  So he could do what Hugo Chavez can do.  Dispense with these inconvenient elections.  To have absolute power.  But, so far, America is still free.  So the best he can do is to grow Big Government.  To reward his friends.  And punish his enemies.  Like Congress did during the Crédit Mobilier scandal.  The kind of corruption that can put a tingle up Joe Biden’s leg.

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FUNDAMENTAL TRUTH #24: “You cannot lobby a politician unless he or she is for sale.” -Old Pithy

Posted by PITHOCRATES - July 27th, 2010

IT’S A PROFESSION as old as time.  Politics.  Prostitution, too.

Hooker:  Hey, baby, you got girlfriend Vietnam?

Joker:    Not just this minute.

Hooker:  Well, baby, me so horny. Me so horny. Me love you long time. You party?

Joker:    Yeah, we might party. How much?

Hooker:  Fifteen dolla.

Joker:    Fifteen dollars for both of us?

Hooker:  No. Each you fifteen dolla. Me love you long time. Me so horny.

Joker:    Fifteen dollar too boo-coo. Five dollars each.

Hooker:  Me suckee-suckee. Me love you too much.

Joker:    Five dollars is all my mom allows me to spend.

Hooker:  Okay! Ten dolla each.

Joker:    What do we get for ten dollars?

Hooker:  Every’ting you want.

Joker:    Everything?

Hooker:  Every’ting.

Joker:    Well, old buddy, feel like spending some of your hard-earned money?

(From the movie Full Metal Jacket, 1987.)

In the above scene from Full Metal Jacket, Private Joker (reporter for Stars and Stripes) and Private Rafterman (photographer for Stars and Stripes) are sitting at a table outside a cafe in Da Nang.  Minding their own business.  The hooker walks up to them.  She initiates the conversation.  She tells them that for a fee she’ll have sex with them.

Please note that it is the service provider that approached the two privates.  They did not go up to random women, offering them money in exchange for sex.  Why?  Because not all women are for sale.  They know this.  It would be a waste of their time to ask random women.   And it would be rather offensive to the laywoman in the street.  Now, Marines may be killers.  But they’re polite to the indigenous population.

When you’re selling favors, the onus is on the seller to find the buyers.  They have to put the word out that they are for sale (ultra-miniskirt, low-cut tops, high heels, heavy makeup, stand on a corner, flash their ‘wares’, etc.).  Or find someone who will broker these sales for them.  A pimp, if you will.  Or a brothel madam.  Or, mamasan, as she is called in Southeast Asia.  A prostitute must initiate the process with the ‘john’ (Hey, baby, you got girlfriend Vietnam?).  Or she goes to a place where other prostitutes ply their trade to a receptive clientele (such as a brothel).

A prostitute is often a victim of circumstance.  Few women seek this life.  They’re not shopping one day when a man walks up to them and says, “Wow.  I find you beautiful and would like to pay you to have sex with me.”   To which she replies, “okay” and leaves one life to start another.  It doesn’t happen like that.   Often it is some misfortune that forces them into the business.  And once there they have but one thing of value that they can sell for subsistence; a young attractive body.  For a limited time.

THEY WEREN’T PERFECT.  The Founding Fathers had their faults.  They knew the evils of a strong central government.  And they knew the dangers of a weak central government.  John Adams wanted to build ‘wooden walls’ (i.e., a navy) to protect America.  Jefferson opposed standing armies and expensive navies.  Washington was a nationalist.  Hamilton, too.  Madison and Jefferson were more states’ rights men.  Hamilton was a capitalist and wanted a national bank.  Jefferson hated capitalism, banks, cities and Hamilton.  It was a rocky start.  They had different views about what America should be.  But the administrations of the Founding Fathers (Washington, Adams, Jefferson, Madison and Munroe) were for the most part honest.  There was partisan fighting, but political corruption was still gestating.   Our first Democratic administration would give it real life.

Government was growing.  There were more federal jobs to hand out.  And with property ownership no longer a requirement to vote, more and more voters had no skin in the game.  People were now voting to have a say in how to spend other people’s money.  You put the two together and you get political patronage and spoils.  Those who help to ‘get out the vote’ to get Democrats elected were rewarded with federal jobs.  The more you helped the better the job.  And when Andrew Jackson won the election in 1828, federal job seekers overran Washington.

It may have started with the Democrats, but soon everyone was using the spoils of an election victory to repay their most loyal supporters.  And government continued to grow.  Back then, it was just politics.  Egregious, but just politics.  Patronage and spoils turned into graft and kickbacks.  And the bigger government got, the more money poured into and out of Washington.

Soon, congressmen, senators and presidents steered legislation and/or policy in exchange for sweetheart mortgage deals, vacation junkets, campaign contributions, legal defense funds, retirement of campaign debt, libraries, etc.  They were now offering services for a fee.  And for a lot more than subsistence.  During a limited time.  Due to the circumstance of holding public office.  Now, they’re not saying “me love you long time,” but they are taking money and someone is getting screwed.  And it’s a pretty sweet deal.  The prostitute has to earn her money the hard way.  She has to put out.  A politician, on the other hand, doesn’t.  They get rich the easy way.  While the public takes it up the pooper.

PEOPLE HATE LOBBYISTS.  They hate their influence.  They hate Big Pharma, Big Agra, Big Oil, Big Finance and the other ‘Bigs’ that lobby Big Government.  But these ‘johns’ only exist because politicians are more than willing (and make it known) that they are for sale.  You gotta pay to play in Washington. 

Are we to believe that politicians are as pure as the wind-driven snow until a lobbyist corrupts them?  Yeah, right.   If you believe that be wary of anyone trying to sell you a bridge.  It’s a game.  And they write the rules.  And if you don’t play nice, they can make it pretty unpleasant for you.  Anti-business legislation, justice department probes, attorney general investigations, public attacks by administration officials, etc.  Nasty things for a business.  And costly.  Often the cost of avoiding these (i.e., playing the game) is a cheaper option.  The business that does not lobby, then, may find themselves under assault by Big Government or at a disadvantage against their competitors who do.  So they enter the fray, hedging their bets by throwing large sums of money on both sides of the aisle. 

And even though the Republican Party is supposed to be the party of Big Business, have you seen who Big Business often contributes to?  More times than not they’re in bed with the Democrats.  Who did General Electric endorse in the 2008 election?  Obama.  Why?  You tell me.  For I have no idea.  They make MRIs.  And electricity-generating windmills.  I’m not sure how they could benefit by an administration that was going to reform health care and promote green energy.  It just baffles the mind.

THE CORRUPTION CONTAGION knows no party lines.  Unabashed greed is universal.  Especially with other people’s money.  Washington has become what the Founding Fathers feared.  Big, powerful and awash in cash.  Even during record deficits.  The days of disinterested public service are long gone.  Getting to Washington has become the objective.  Not what you do when you get there.  Because if you make it to Washington, you leave it rich.  And live comfortably ever after.

And now I must apologize to prostitutes everywhere.  For they truly earn their money.  It is unfair and unjust to compare them to politicians.  And the ultimate injustice is the fact that politicians enjoy their services.  One of the perks of being in Washington.  High-priced call girls at your beckoned call.  Paid for, of course, by others.

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