President Barack Obama

Bill Smith, ARRA Editor: Before proceeding it is only right to say that as a 22 year veteran, I am by nature a "hawk" and support all efforts to stop the enemies of America. However, I already saw one war - the Vietnam War - mired down by bureaucracy and lack of direction. [For those who prefer using the term "Vietnam Conflict," tell it to the American families, friends of the veterans who served and lost 58,159 comrades in Vietnam, Laos, and Cambodia plus all those who died from war related issues after that "conflict."]

Most career military have served under Presidents with whom we did not politically agree. Some Presidents were more competent than others. Most Presidents and Defense Secretaries who had not served in the military have made decision or failed to make decisions that resulted in the wasting of military resources and lives. Although not always understood by the general population, military leaders clearly understand that the military is both a tool in defending America including America's economic interests and a tool of diplomacy. However, when a president lacks declared interest or focus during a time of war - or major deployments with people at risk, military casualties increase and troop morale suffers and leads to more losses.

The Times Online is reporting a story about "American troops in Afghanistan losing heart." It is like "deja view" - a scene from the past when leadership and adequate direction was not shown by prior Commander-in-Chiefs and Secretaries of Defense. A few excerpts from the article:

American soldiers serving in Afghanistan are depressed and deeply disillusioned, according to the chaplains of two US battalions that have spent nine months on the front line in the war against the Taleban [sic, Taliban]. Many feel that they are risking their lives — and that colleagues have died — for a futile mission and an Afghan population that does nothing to help them, . . . “They feel they are risking their lives for progress that’s hard to discern,” . . . “They are tired, strained, confused and just want to get through.” The soldiers are, by nature and training, upbeat, driven by a strong sense of duty, and they do their jobs as best they can . . . admitted that their morale had slumped.

“We’re lost — that’s how I feel. I’m not exactly sure why we’re here,” . . . “I need a clear-cut purpose if I’m going to get hurt out here or if I’m going to die.” . . . Asked if the mission was worthwhile, . . . “If I knew exactly what the mission was, probably so, but I don’t.” The only soldiers who thought it was going well “work in an office, not on the ground”. In his opinion “the whole country is going to s***”.

The battalion’s 1,500 soldiers are nine months in to a year-long deployment that has proved extraordinarily tough. Their goal was to secure the mountainous Wardak province and then to win the people’s allegiance through development and good governance. They have, instead, found themselves locked in an increasingly vicious battle with the Taleban [sic, Taliban].

They have been targeted by at least 300 roadside bombs, about 180 of which have exploded. Nineteen men have been killed in action, with another committing suicide. About a hundred have been flown home with amputations, severe burns and other injuries likely to cause permanent disability, and many of those have not been replaced. More than two dozen mine-resistant, ambush-protected vehicles (MRAPs) have been knocked out of action.

Living conditions are good — abundant food, air-conditioned tents, hot water, free internet - but most of the men are on their second, third or fourth tours of Afghanistan and Iraq, with barely a year between each. . . . The men are frustrated by the lack of obvious purpose or progress. “The soldiers’ biggest question is: what can we do to make this war stop. Catch one person? Assault one objective? Soldiers want definite answers, other than to stop the Taleban [sic, Taliban], because that almost seems impossible. It’s hard to catch someone you can’t see,” . . .

“It’s a very frustrating mission,” . . . “The average soldier sees a friend blown up and his instinct is to retaliate or believe it’s for something [worthwhile], but it’s not like other wars where your buddy died but they took the hill. There’s no tangible reward for the sacrifice. It’s hard to say Wardak is better than when we got here.” "We want to believe in a cause but we don’t know what that cause is.” . . . The soldiers complain that rules of engagement designed to minimize civilian casualties mean that they fight with one arm tied behind their backs. . . “You get shot at but can do nothing about it. You have to see the person with the weapon. It’s not enough to know which house the shooting’s coming from.” . . .

The constant deployments are, meanwhile, playing havoc with the soldiers’ private lives. “They’re killing families,”. . . “Divorces are skyrocketing. PTSD is off the scale. There have been hundreds of injuries that send soldiers home and affect families for the rest of their lives.” The chaplains said that many soldiers had lost their desire to help Afghanistan. “All they want to do is make it home alive and go back to their wives and children and visit the families who have lost husbands and fathers over here. It comes down to just surviving,” . . . “If we make it back with ten toes and ten fingers the mission is successful,” . . . “You carry on for the guys to your left or right,” . . .

Lieutenant-Colonel Kimo Gallahue, 2-87’s commanding officer, denied that his men were and insisted they had achieved a great deal over the past nine months. A triathlete and former rugby player, he admitted pushing his men hard, but argued that taking the fight to the enemy was the best form of defense. . . . Above all, Colonel Gallahue argued that counter-insurgency — winning the allegiance of the indigenous population through security, development and good governance — was a long and laborious process that could not be completed in a year. “These 12 months have been, for me, laying the groundwork for future success,” he said. . . .

These reported comments depict more than just complaints by G.I.s. They are a clear signs of bigger issues both at the DOD, in the force structure and support of today's military, and with the direction of the war as defined by the President of the United States. As for the field commander on the record comments about his belief in the mission, this was expected but it is not a measurement of success. However, while failing morale and expressions like "you carry on for the guys to your left or right" are both true and admirable, they are also a definite indicator of failed purpose and direction.

As heads up, the following comments are directed to what appears to be an often AWOL (absent without leave) Commander-in-Chief: Mr. Obama, you choose to run for President of the United States. And, the American people elected you to be president. Most Americans know that a "chief" responsibility of the president is being Commander-in-chief of the military. It is not being the commander of the American people. While you have "fiddle around" tripping off to other countries expressing your regrets about the United States or to another location to promote or sign a bill that could have been done efficiently right in the Oval office; while you wasted time trying to recruit the Olympics or taking time for another sports event or White House party; while you expend a disproportionate amount of your time on agendas which have or will send the United States further into debt and on efforts to reshape the social fabric of America, you are not focused on your primary responsibility of being Commander-in-Chief.

American military are dying or at risk because of your lack of leadership. Members of the military understand sacrifice and giving their lives for a greater cause. However, they do not understand dying without purpose or a clear objective. Often they die for their comrades but they do not wish to die for absentee leadership or an undefined mission.

Mr. President, above all else, (except possibly for those who feel they must engender themselves to you for their jobs and their agendas or who happen to hate America) people on both sides of domestic issues expect you to complete your primary duties as president. The United States of America has men and women in harms-way risking America's chief treasure - American blood. For "Pete's sake" - Wake-up! You are the Commander-in-Chief! It cannot be delegated; nor should it continue to be ignored! It is a lonely sacred responsibility. Mr. President, no matter how important you believe your other agendas to be, you must focus on your primary responsibility as Commander-in-Chief!

More and more of the details about the proposed $825 billion stimulus from President Barack Obama and the Democrat Congressional majorities are surfacing and it appears more and more that the proposition’s goals are not to stimulate the economy, but rather to reshape it in to socialism on steroids. By the spending proposed in the bill, the United States is going to start looking more and more like Sweden and France and less like the United States that we knew just two or three years ago.

First, let’s start with the tax cuts proposed in the bill. Business is struggling to borrow money from banks, like other private citizens are, and the value of their stock is in decline. All of this is thanks to economic conditions that have made business go from expanding and hiring more employees to consolidations and layoffs. Just today, 75,000 job cuts were expected from Caterpillar, Sprint, and Home Depot just to name a few.

For all of these pains where the highest taxes on sole proprietors, partnerships, and Chapter S corporations are going to remain at 35 percent. As for Chapter C corporations, they will still pay a 31 percent rate and their dividends will still be taxed again at the same income tax rate as paid by the shareholder. In other words, someone who has pre-tax earnings per share of $2.00 would end up seeing only anywhere from less than $0.90 to $1.17 (using the lowest tax rate of ten percent) per share that could be taken home after corporate and income taxes! That is an end tax rate for a shareholder ranging from 41.5 percent to over 55 percent! No wonder some people are hesitant to buy stock.

Instead, tax cuts are going to be given via Social Security payroll deductions at $1,000 for families and $500 for individuals. Let’s go back to last year when Americans received tax rebate checks for $600 (individuals) and $1,200 (families). Economists have concluded that less than 25 percent of the money from the tax rebate checks of 2008 was spent on goods and services (mostly Chinese made) while the remainder was used to pay down debt. We all know how well that worked out with the current recession.

Where tax cuts work is what Ronald Reagan, Bill Clinton, and George W. Bush did. Reagan dropped the lower rate from 70 percent when he took office to 28 when he left and the economy grew dramatically. Bill Clinton cut the capital gains rate from 28 percent to 20 percent which led to the late-1990’s stock market boom. George W. Bush cut taxes on income, capital gains, and in other places and it led to an economic boom from 2003 to 2006. In every instance, tax revenues and America’s standard of living grew because of the increased economic activity by reducing the barriers of taxes.

What makes matters worse on the tax relief front is that the tax code changes won’t take hold until next year. If we are in such an urgent crisis, let’s do something from a tax standpoint that works and reduce rates going forward and make the tax cuts from the George W. Bush years permanent. However, as you read later, that will not be the motivation.

Next comes the infrastructure spending programs that sound good, but more will lead you to believe that this is not the right way to go forward. We have a nostalgic view about Franklin D. Roosevelt not because of the manner in which he ran the economy, but how he managed the war, mostly thanks to the great generalship of Dwight Eisenhower, Douglas MacArthur, George Patton, and others.

The New Deal that Roosevelt implemented twice government spending programs on infrastructure and blue-collar jobs. It’s “twice” because the first program failed and only government is insane enough to try a sequel (unless you voted Democrat for governor in Michigan and Illinois in 2006). As it turned out, economists at the University of California-Los Angeles (UCLA) determined that the New Deal actually delayed a full economic recovery by seven years.

The result was World War II and around-the-clock mass production for the war effort that ended the Great Depression in 1943. Think about that. The Great Depression, had the New Deal not been pursued, could have ended in 1936, on the eve of FDR’s reelection.

In total, there will be $90 billion in the $825 billion package spent on infrastructure alongside the $275 billion in tax cuts that won’t be realized until 2010. That’s a grand total of $365 billion, or just more than 44 percent of the package being spent to “stimulate” the economy.

The reality is that infrastructure spending programs don’t do the job and the tax cuts are insufficient. In total, the government is putting together a program designed to give window dressing with this package to make us feel as if President Obama and the Congressional Democrats are actually doing something. The reality is that if that something doesn’t do what we have the expectations are (reviving a stagnant economy), they’re toast.

So what happens with the remaining money? The remaining money will go to other projects that won’t be realized until long after Obama is out of office. Education spending, health care spending, and cover state shortfalls on Medicaid are nice, but the purpose of the bill is lost. The purpose is to jump-start the economy and to jump-start it now.

In the end, the American people will be more than $800 billion deeper in debt with no chance of either reviving the economy, creating jobs, or ending the current recession. Instead, the plan is to have enough debt on the books to where Obama and the Democrats can actually terminate all, if not most, of the Bush tax cuts.

In a previous post, I had mentioned that the four stages of the Great Depression were a credit crunch, a stock market crash, price destabilization, and tax increases. As it will turn out, the economic plan of Obama’s will generate more inflation either by increasing debt or the need to print more money (both of which are inflationary) and repealing the Bush tax cuts to result in the largest tax increase in American history.

I am not alone on a looming depression. There are a number of other economists, including Harry Dent, who accurately predicted the 1990’s economic boom. I guarantee that the Obama program will fail. I wish it weren’t true for the sake of this country because we need help. However, this isn’t the help we need but rather a shell game disguised as a push towards socialism that has been proven to fail in every instance it has been tried.