Sense Of Reality Defeats Socialism!

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Democrats lose badly. The Republicans win the majority in the House. In the next few days we will know exactly how many House and Senate seats were won. The prediction at Wednesday morning November 3rd at 2 AM New York time: the House – Republicans +63 (which means a majority of 24), the Senate – Republicans +6 (which means 4 short of a majority).
 
What are the consequences for Obama?
 
A significant number of his remaining Democrats in Congress will distance themselves more from him. Mrs. Clinton – but also others – will think sincerely about running against Obama in the Democratic Presidential primary of 2012.
 
How can Obama sail through the next two years? He has two choices. He can follow the turn in policy Bill Clinton adopted after 1994, or Obama can try to continue to force his radical leftist policies on the American people.
 
What was it Clinton did? Clinton secured his reelection two years after the Republican take-over of Congress. He opted to work with the Republican House, under leadership of Newt Gingrich. Clinton accepted the budget cuts, and produced surpluses instead of deficits. Clinton abandoned his effort to nationalize healthcare. He agreed with the Republican proposals to change ‘social security as-we-know-it’, as he himself said so eloquently. One change for example was the obligation for welfare recipients to learn a new trade, or to work.
 
Analysts recognize Clinton as a ‘political beast’ in his core, with a perfect feeling from where the wind blows, and a sense of self-preservation as his number one focus. Pundits in general fear Obama is in the first place a doctrinarian Statist or Socialist. They believe he will not be able to admit he was wrong. Obama actually said already: if the price for implementing the fundaments of his socialist ideas into law, is not being reelected, that it is fine with him. Obama truly believes to be the smartest guy on this planet. So, the loss of this election can’t be blamed on him. The voters are too stupid, racists or have been scared by the Tea Party.
 
If Obama chooses to keep pushing his socialist agenda, we will live through two years of hard political confrontation. With his veto-power he can block all legislative process.
 
Next, Obama might try to circumvent Congress by demanding his administration to implement parts of his agenda. This means the Executive branch of government puts itself above the Legislative branch of government. The only recourse for Congress would be to stop funding the government.
 
Possible actions by Obama: he could ask the EPA (Environmental Protection Agency) to create new rules to make the production of CO2 extremely difficult, or to tax said production. He can order his administration to invent all kind of new expensive fees for all or certain businesses. Tax Mining and the use of Coal as source of energy, stop oil drilling in certain places, hamper the introduction of new drugs, etc., he can make every thing extremely difficult. Other ideas: limit imports form certain countries or of certain commodities, amnesty for illegal immigrants, abolish the secret ballot for union elections, etc. He has plenty of possibilities. It would mean an open political war in the US.
 
What should Republicans do to maintain the trust of the voters?
 
The Tea Party saved the Republican party by leading them back to their own core principles: minimal government, maximum individual freedom and responsibility, strong national defense. The elected Republicans were only elected on a ‘trial basis’. The power of the many independent and well informed Tea Party groups over the elected Republicans, force these representatives to attack, stop and repeal the Obama agenda forcefully and on principle.
 
The Tea Party expects the Republicans to launch immediately a honest trial to repeal Obama’s most glorified accomplishment: ObamaCare. Obama will answer with his veto, as he will react on every Republican proposal to cut spending. The Republicans will have to fight with open visor, with lucidity, candor and great public relations, if they want to avoid losing the support of the American people, expand their majority in 2012 and put a Republican President in the White House that same year. Only then will they be able to turn back Socialism in the USA.
 
Last week, the ruling top of the Republican Party in Congress announced they will propose, immediately after the election, spending cuts for over 100 billion dollars. This can only be a first step in the right direction. Since, most Americans don’t want any further expansion of the National debt. The deficit is over 1.2 trillion dollars in the current budget.  This means the budget cuts will have to be 12 times deeper. The House will have to close the money spigot, and drain the Obama initiatives of all money.
 
What caused the Democratic loss?
 
The short answer is: the radical policies of Obama and his fellow Democrats in Congress. This election is a personal defeat for Obama. His extreme policies as promoted over the last couple of years, hit the Americans as sledgehammers.
 
The majority of the Americans are simply chocked by the overwhelming size of the budget deficits. Spend more money to get out of debt, is so contrary to the personal experience of every average American. Since the Democrats took control of Congress, after the election of 2006, they managed to up the National debt with 5 trillion dollars, from 8 to 13 trillion. Just as a reference: the value of the total US economy is 15 trillion dollars. Obama forced the House to multiply the deficit of 2006, the last year the Republicans controlled the purse, with a factor six to almost 1.5 trillion dollars per year! Important to know: the House writes the checks.
 
Obama policies freeze the economy. The extremely high taxes on enterprises – considered about the highest in the world – and his never ending exercise to throw more and more regulations and rules in front of the wheels of companies, prevent these same companies to create new jobs. This is what Americans find radically wrong. Obama’s policies chase the companies out of the country. Companies in the USA are afraid to expand and hire more people, since they don’t know with what Obama will hit them next. All this happens, when the biggest concern of the Americans is the lack of jobs. Obama is considered to have done just the opposite of what any sane politician would do to create more jobs.
 
The majority of the Americans reject the colossal nationalization of the US healthcare system – 16% of the economy. Americans know ObamaCare is making their health insurance more expensive, and is making the medical services less accessible. Obama forced the voting of ObamaCare, against the openly stated will of the people, and with far reaching corruption and intimidation of the members of Congress. His naked contempt for the wisdom of the people, and his air of superiority insulted the working classes. Obama lost this November 2nd election already in March when he signed ObamaCare into law,
 
Obama believes he can make the largest economy of the world run on sun and wind power. He still sells the lie of Man Made Global Warming. He wants to tax the production of CO2, and he wants to regulate the live of every American up to the smallest detail. This is what is radical, and what collides with the love for freedom of the average American.
 
The productive part of the American population, luckily still the majority, understands the government is the cause of the problems. More government means more problems. Higher taxes equal less money for the citizens, less money to invest and to consume. Americans figured out the government doesn’t produce any wealth, but vegetates as a parasite on the intelligence and efforts of the private sector. Freedom loving Americans believe citizens can turn the Ship of the Nation around on their own, if only the government would step aside.

Wait and see

The hangover seems over, but is it in earnest? Voters sent a strong signal to Obama. It is the biggest grab on the House of Representatives since 1948. Hopefully the Republicans will prove equal to the task that lies ahead, if their records are any guide, it is doubtful. As a reminder, public debt was worth $13.45 trillion in June 2009 according to the CIA, you are reckoning with corporate and household debt (that is external debt, by far the best index, which is around 90% of GDP, and would average $9 trillion in Britain, i.e. 450% of GDP), the latter reaches more than 120% of disposable income for the average American. The splurge must cease at the level of the Federal state, however, households should also learn to live within their means again, and de-leverage, save up instead of fuelling an economy whose only purpose is to bankrupt itself into gaudy consumption and spendthrift behaviour, which is encouraged by the fact the Fed maintains low interest rates, and overindulge in quantitative easing as it tries to generate enough inflation to bury the debt whilst the likely result will be uncertainty in the economy due to high inflation, which will further wreck already grim prospects for the U.S. economy. Wait and see. I would wager Obama is going to carry on pushing his socialist agenda on all fronts. He may still wreak considerable havoc.

Tomorrow and Tomorrow...

The people must hold their representatives' feet to the fire at all levels, in all branches of government.  That is practical neopopulism as taught by Kaardal and Dahlberg. 

Tomorrow...

Tomorrow, when the euphoria of the anti-Obama vote wears off, and the true "sense of reality" sets in, what will manifest? Remember, the Republicans set the stage for Obama's election due to years of "Democrat-Lite" actions. To think otherwise is naive and/or disingenuous.

Also, you site "strong national (sic) defense" as an issue, however this was not much discussed in the campaigns, excepting an oblique reference to illegal immigration. For the Republicans, a strong national defense is only so much neoconservative jargon whose implication has little, if anything at all, to do with "national" defense.

However, my guess is that the Republicans will muck it up, as usual, but that upcoming economic events will dictate extreme political action. It is difficult to see how the welfare state and the overseas empire can be well maintained given that the country is essentially out of real money to pay for anything.

*Later addendum: now that democracy has spoken, it will be interesting to find out what our unelected money masters have planned for us, today. It will be interesting to see, after the meeting, just how big "QE2" will be, and whether our good friends in China will cozy up to the dollar, as hitherto. Go Republicans!