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We’re Off to See the Wizard

There was a time when presidents flew Air Force One to places like Santa Barbara, Midland, and Kennebunkport, or used Marine One to visit Camp David or reach San Clemente. Based upon the stupefying budget numbers finally dribbled out to the public last week, however, it would appear that Mr. Obama was never vacationing in Hawaii but instead diverting his flights to Narnia and relying on accountants from the Land of Oz. Raw numbers and empirical data can be nettlesome and pesky, can’t they? When examined in unvarnished form it doesn’t take long to separate the snake oil salesman from the sermonizer, and in the case of this administration it speaks of a deliberate and systematic pattern of prevarication. The only question remaining to be answered is the motivation for outright lying.

Two weeks ago it was suggested that a budget be adopted with yet trillions more in overruns, last week it was revealed that Obamacare would cost over twice as much as originally planned, and this week the Buffett Rule was shown to be nothing more than a half-baked ruse concocted by a sitting president and a man who has made a fortune balancing tenuously on a tightrope over an ethics chasm. William Daley likely vacated his position as Chief of Staff because he felt himself morphing into Nurse Ratched.

According to Mr. Obama’s idée fixe, greater taxation of the rich is written in the Bible, and a fully warranted and deserving penalty to be inflicted for success in the private sector as well as a panacea which will help resolve the country’s deficit, and who should ride to his defense but a wealthy, elderly man who conspires to promulgate this lie for the purpose of heightening class warfare and envy. Here is a real inconvenient truth:
It has been determined the Buffett rule would raise $31 Billion in additional taxes over the next ten years against a $15 Trillion deficit.

That is the equivalent of having a $75,000.00 mortgage and trumpeting the contribution of a penny as a step toward satisfying repayment, and if one wishes to examine the suggestion that an additional $3.1 Billion taxes for the coming year will magically reduce the projected $2.3 Trillion of overspending, the numbers are worse. It would be the equivalent of dedicating one cent toward a debt of $184,000.00.

Those are not misprints, nor the result of fuzzy math. The question which must be raised, therefore, is what would prompt a president to perform like a barking seal and denigrate high income earners as a pox on our country every time he sees a microphone? The answer, unfortunately, is that he does so as an intentional gross misrepresentation or else he is unimaginably dense, neither of which is heartening. It seems less surprising now that this was the same man who picked Joe Biden as a running mate, a vice president who compares his boss to Superman and who believes erasing Osama Bin Laden with a Navy SEAL Team was of greater military strategic significance than D-Day.

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A president whose beliefs were not rooted in the Manifesto’s concept of rationed health care would have announced an eight year plan to examine all aspects of the medical industry commencing with exhaustive studies throughout his first term. He would have framed the first four years in the context of exploring options that he intended to weigh and ultimately consider as a proposal near the end of his second term, and in lieu of re-election at least have provided a base from which his successor could continue to look for manners in which health care might be improved. He would not have resorted to creating assurances out of thin air, would not have needed the use of bribery and threats in order to pass haphazard legislation, and would not have needed to hawk it like a product at a carnival if his intentions were forthright. In reality it was an unabashed power-grab from the beginning and what he saw as a critical first step toward curtailing personal liberties and consolidating all power with the State.

Mr. Obama’s next step, of course, is to commandeer the financial industry, nationalizing yet another huge sector of our economy. A strong case can be made on behalf of the government intervening to solidify wobbling institutions, but the problem with the type of financial assistance extended was that it had enough vigorish and contingencies attached to it to make a loan shark smile. The public relations side of the argument is that successful and decisive action was taken, but the backroom analysis is that while stabilized temporarily, the resulting makeover came with restrictive regulations that will hamper growth, creativity, and profits, making the rather predictable next bailout a Statist’s opportunity to deliver the coup de grace.

Last week the administration tried to transform a pouting 33 year old former Goldman Sachs employee into a cause célèbre for all that was wrong with financial institution practices, a contrivance that came with a high degree of predictability. Outside of being a rather mediocre talent, it’s difficult to say what prompted young Mr. Smith to savage his employer in an op-ed piece and even more puzzling why someone would print it. What a headline: 33 Year Old Disappointed in Low Career Trajectory; Blames Employer. Given his enormous depth and wide range of experience…………………I was unable to discern any profundities in Mr. Smith’s screed, so perhaps there are more deep-seeded manifestations of angst.

Maybe when the market crashed in 1987 the news affected his parents and ruined his 8th birthday party, or more likely, the bursting of the market bubble of 2001 affected the tech stocks in his trust fund and took all the fun out of a toga party he and his frat house were hosting. If paparazzi snap a picture of him having dinner with Sandra Fluke any time soon, we’ll know for sure it was a set up all the way.

About Dan Bubalo

Daniel J. Bubalo was hired by the venerable firm of Kidder Peabody in 1978, before becoming a shareholder and partner with Drexel Burnham Lambert in 1984. He ultimately bought his own brokerage firm and steered it successfully through the market crash of 1987 before starting a venture capital and advisory company in the early 1990's. He has been a broker, manager, owner, trader, financier, and advisor on mergers and acquisitions, and throughout his career has opined regularly about the intractable nature of government and its inextricable hold and influence on financial markets. A securities violation landed him in federal prison from 1999 to 2003 which served to only sharpen his observations, watching in dismay at the dissolution of the Glass-Steagall Act, the 2001 dot.com bubble burst without so much as an investigation or arrest, and has since lectured between 2005 and 2011 at the Neeley School of Business at Texas Christian University on government intervention and ethics, as well as being presciently critical about Sarbanes-Oxley and Dodd-Frank. Dan can be contacted at dan@mychal-massie.com

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6 Responses to We’re Off to See the Wizard

  1. Marilyn March 26, 2012 at 1:24 pm #

    ObamaCare was orchestrated by many. I don’t know how many doctors were involved but evidently, not enough. It seems all elected officials wanted to add a blurb to the five mile long ‘health mandate’ to get their names in print at sometime down the line. I believe that H. Clinton’s health care outline was used and embelished upon. If the Supreme Court, with the recuse of Kagan, determines the ObamaCare unconstitutional, and why wouldn’t they, then we can let this case rest for a bit until some other hairbrain instrument that no one can read will be conjured and go through the same procedure of legal or not. I don’t know if Obama can do that in what time he has remaining as illegal president. Regardless, a National Health Care Program cannot be operated by the Federal Government. It has been proven that the Feds can’t manage Social Security and Medicare bucks so how do they plan to ever manage such a huge program as National Health Care!!! Paying down the National Debt will take a great deal of discipline on all citizen’s part…if it is done correctly. The first thing that must stop is “Obama Spending” and Bernanke just keeps printing mickey mouse money for Obama to spend on many things including a prospect of solar and wind energy that is 20+ years in the future. The American dollar is broke and Obama just keeps Spending on “pie in the sky” ideas. He doesn’t act upon the possibilities of the here and now. It is all in the wall writings. Obama must destroy this Society and he first must destroy the Society’s money!! We haven’t a clue what kind of actual money is in the Federal Reserve. It’s like a separate entity yet it is supposed to be tax payer’s money. (Need to get rid of the Federal Reserve that promotes Big Government!!)
    It is imperative that Obama must be held accountable for hiding his past and not following the United States Consititution. In most instances, Obama has NOT followed the Constitution and his excess use of presidental powers have been/are totally unconstitutional. Congress knows this yet appears to let “things slide.” The Czars and BO’s henchmen must have a terrific hold on Congress, Media or anyone who gets in the way of destroying this administration and America. I note that you, Dan, did not include the down-grade of the Military Stength of this Country. I wish you had expounded upon that subject. You (and Mychal) are great thought provoking writers and know the facts. Thank you!

    Here in America, In God We Still Trust!

  2. jim March 26, 2012 at 12:02 pm #

    Big Jim says: The figure’s are staggering what the regime blows! Big bucks down the drain,Most bucks spent for votes,this healthcare fiasco is awful,just hope Paul Clement presents the case this week to the Supreme Court in clarity as to it’s many points of wrecking our Constution.If this Kenyan carpetbagger gets in for another 4,we are doomed.There are at least 2 justices who will retire or die propped up in their thrones.If obama apoints even one”syrinora baby” we’re done for. Thanks to Mr. Massie and Mr. Bubalo,the real true message is being told. May both of you and others keep putting out your well researched articles. I find them refreshing and I am getting some hope to oust this imposter.Thank you………………………

  3. dave buls March 26, 2012 at 11:32 am #

    The Wizard has doomed the country with his magic tricks. I surely hope he and his politburo and happy.

  4. John McClain March 26, 2012 at 10:14 am #

    The one thing most necessary in a time and place where the main object and purpose is to take control of A People, by the use of political influence, divisive tactics, deliberately making a case for class and race war, all the tactics of communist take-over, the one thing which kills such an agenda is an informed, reasoning, logical People, who have decided they will learn what they need to know, they will not be told what knowledge is needed, but will pursue the exact areas they see as being impacted, and only this kind of knowledge is capable of overcoming the tactics of subversion of A People, by lies.
    We have had the luxury of watching this done to all the Nations of Europe, and can easily see the end result, as the European Union verges on collapse, because three of its members are in complete default and collapse, with none of its members either able, or willing to self-destruct to save other members, and are seriously considering whether they can afford to remain in the union, as they may be “raided”, and their economy essentially “stolen for the common good”, if the Union leaders have their way, and Germany does not leave before it is consumed.
    We must recognise we cannot trust anyone with what they are saying regarding the health and welfare of our Nation, anyone who is connected with the government, because they are not on our side, they are indeed the enemy.
    If we look carefully at what is put out by those who are clearly determined to save our Nation through conventional wisdom, standard economic math, rational and reasonable ideas which have long proven their value, we can easily see the lies being used to try and manipulate us.
    If we fail to act against those lies, and act fully in the defense of our Nation, denying any power to those who we find lying, we still can save this Nation, and by doing so, put off a communist led world government plan, intended to be imposed sooner rather than later, so those Nations with remaining viable economics can be successfully raided, and they too, subjugated.
    It is of the utmost importance to note, our mere existence has always been the biggest stumbling block to world government, because we alone, established our government on a set of principles which are logical, rational, stand on self evident facts, and follow natural law, and predicate the purpose of all government on the principle it is established By Man, for the defense of his Natural and Un-alienable rights, and we also established the fact that as a construct of man, we not only have the right to alter or abolish such forms we don’t find fulfilling their purpose, we have a duty to our posterity, the Americans whose parents are not yet born, they too have that same resource of rights, but can only have access to them if we act today, to defend their access to their rights, by ensuring principle is not simply over-run by force of power, as has always been man’s fall and the death of societies.
    We cannot just stand for ourselves, because we can mislead ourselves over temporary issues, we must take our stance on such principles as secure our rights into the future, so we have to stand for posterity, to put our own rights in their proper perspective, and properly identify the fact it was those who bled before us who secured ours, and we must be willing to bleed and die, if necessary, to secure the rights of posterity, and it is against the world, not with it. If any people in the world wish to have our form, and our experience, they are all free to rise up and claim their natural rights, just as we did. It is not without danger, and blood will flow in rivers, but that is the exact cost of freedom and liberty, and it must be paid in a heavy and full downpayment, costing many lives and vast volumes of blood, but once established, it only requires continuous small sacrifices of both life and blood, at each confrontation with the individuals who would take by force, that which is not theirs.
    We, as a Nation and as A People, have been bleeding and dying at the demands of the U.N. for sixty and more years, not for any good purpose, but to bleed us dry, and to destroy our economy through purposeless war.
    Now is the time we must choose to bleed and to maybe die, but for our own People, our families, our neighbors, our communities, all those Americans who hold the Constitution in their hands and hold it with love and reverence, knowing it belongs to themselves, but to own it, they, we, must each be willing to give our very life for it, if necessary, because without protection, it is a frail old piece of parchment, and a spark could destroy it without any notice.
    If we do not claim it for our own, and by it, claim our Nation, the government which has formed its self to serve its self has shown us it will take our Nation away, and remake it as it serves them, and we shall cease to be citizens, and will become subjects, just as those who failed to keep their countries before us have been done.
    John McClain
    GySgt, USMC, ret.
    Vanceboro, NC

    • Stormrider900 March 28, 2012 at 1:24 pm #

      It just doesn’t get any clearer than what you have written. So why do we allow a minority of Socialists drag us into the swamp of mediocrity and more, slavery? It is like a bad dream that you just can’t wake from. Let’s pray the sleepers awaken before the Constitution becomes an old, irrelevant document sitting in the basement of the Smithsonian.

  5. Roy March 26, 2012 at 9:43 am #

    I truly wish your rants could be broadcast daily to the American public which to date has failed to pull its head out of the sand hole it’s in. Thank you Mychal for fighting the good fight.

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