Subprime Nation

Subprime Nation
By Patrick Buchanan

"Since it began to give credit ratings to nations in 1917, Moody’s has rated the United Statesw triple-A. U.S. Treasury bonds have been seen as the most secure investment on earth. When crises erupt, nervous money seeks out the world’s great safe harbor, the United States. That reputation is now in peril.

Last week, Moody’s warned that if the United States fails to rein in the soaring cost of Social Security, Medicare and Medicaid, the nation’s credit rating will be down-graded within a decade.

We borrow from the nations we defend so that we may continue to defend them. To question this is an unpardonable heresy called “isolationism.”

America, to pay her bills, has begun to sell herself to the world.

Its balance sheet gutted by the subprime mortgage crisis, Citicorp got a $7.5 billion injection from Abu Dhabi and is now fishing for $1 billion from Kuwait and $9 billion from China. Beijing has put $5 billion into Morgan Stanley and bought heavily into Barclays Bank.

Merrill-Lynch, ravaged by subprime mortgage losses, sold part of itself to Singapore for $7.5 billion and is seeking another $3 billion to $4 billion from the Arabs. Swiss-based UBS, taking a near $15 billion write-down in subprime mortgages, has gotten an infusion of $10 billion from Singapore.

Bain Capital is partnering with China’s Huawei Technologies in a buyout of 3Com, the U.S. company that provides the technology that protects Pentagon computers from Chinese hackers.

This self-indulgent generation has borrowed itself into unpayable debt. Now the folks from whom we borrowed to buy all that oil and all those cars, electronics and clothes are coming to buy the country we inherited. We are prodigal sons, and the day of reckoning approaches."

http://www.realclearpolitics.com/articles/2008/01/subprime_nation.html

December 31, 2007
Trials, Tribulations for Next President
By Patrick Buchanan

With the New Hampshire primary on Jan. 8, and the Iowa caucuses dead ahead, the nominees of both parties may be known in two weeks. Surely, after Feb. 5, when a slew of primaries are held, both races will be all but over.

Then, from Feb. 5 to Nov. 4, nine months, those nominees will be made to run an Iroquois gauntlet.

To define them, before either defines himself or herself for the voters, both parties will engage in sustained barrage attacks. Their opposition research arms are stocked with ammunition.

There will be attack ads by the “527s,” independent committees set up by rich folks and interest groups to do for political enemies what the Swift Boat ads did for John Kerry.

Around-the-clock bombing will commence on cable TV from the ubiquitous Democratic and Republican “strategists” trotted out to parrot talking points provided by opposition research.

Investigative reporters will begin digging for dirt, or waiting for the choice moment to dump it, or seek out in the hidden past of the candidate the unearthed scandal that can sink a ticket, as McGovern’s ticket in 1972 was devastated by the revelation that its vice-presidential candidate, Tom Eagleton, had shock treatment, and George W. Bush was derailed by the revelation of a DWI 24 years before.

After nine months of this pounding, even fresh candidates – an Obama, a Huckabee, a Romney – will boast negatives in the 40s. Hillary’s negatives are already there.

Three weeks out from Iowa, Clinton operatives have already suggested the young Obama may not only have used drugs, but sold them, that cocaine was probably his favorite, that we should not forget his middle name is Hussein and that his daddy was a devout Muslim.

Gov. Huckabee helpfully implied to Evangelical Christians that Mormonism, Mitt’s faith, is akin to a cult, and don’t those folks believe Jesus and Satan are brothers?

“Haven’t presidential campaigns always been like this?” comes the reply. Well, not exactly.

What is different now is not only the duration of the campaign. This one began a year ago. It is the money available to parties and their pit bulls, the 527s. It is the existence of 24-hour cable – Fox News, CNN, MSNBC – that relishes charges and conflict, for that is what draws the audience upon which we live or die. It is the population explosion of screeds on the Internet with its vast array of websites able to bring gaffes and scandal to the mainstream in an instant. It is the telephone videocam there to record every moment, every move of a candidate, and YouTube there to receive it.

By November, when America chooses her new head of state, the country will have already been polarized over the choice.

And what will that new president inherit?

The Iraq war entering its sixth year as the U.S. troops that have brought some stability to Anbar and Baghdad start home. An Afghan war in its seventh year, where the NATO allies balk at combat, the Taliban and al Qaeda have found sanctuary in a Pakistan whose leading figure was assassinated yesterday, the poppy traffickers are back, and Kabul’s writ does not extend beyond city limits.

At home, with housing prices sinking, foreclosures soaring and the Fed pumping out money to prevent the economy from seizing up, the nation could be entering a recession. Yet, with the dollar sinking abroad, we could also be facing a recurrence of inflation.

We are bitterly divided over immigration, legal and illegal, and the issue grips every state. As the world is not going to stop coming here, this is not going away, ever. Meanwhile, the culture war, rooted as it is in conflicting concepts of morality and patriotism, rages on. Even the staid old Episcopal Church cannot remain united.

Though we boast about our diversity, it appears that the more diverse we become as a nation, the less united we are as a people. Imus, Jena and the Duke rape case testify to it. As one wag puts it, the only thing melting now is the pot. Two-thirds of the nation think America is headed in the wrong direction.

The America the next president will lead is no longer able to win or end her wars, defend her borders, enforce her immigration laws, balance her budget, eliminate a chronic trade deficit that now runs to 6 percent of GDP, or maintain the value of the dollar. We save nothing.

Though addicted to oil, we refuse to drill off our coast or in our own territory. Meanwhile, Arabs and Asians, choking on dollars, are buying up our corporate and strategic assets and taking over our toll roads.

There is a great deal of ruin in a nation, said Adam Smith. Looks like we are going to find out.

Happy New Year.

http://www.realclearpolitics.com/articles/2007/12/after_marathon_campaign_litany.html

He writes a pretty powerful article. I never really got into him because of his protectionist views. And, while I’ve never actually bothered to research if the racist/anti-semite charges are fair, the reputation always bothered me.

Well, regardless of his protectionism, I think he’s raised some important themes in these articles. I’m just not sold on how he would correct some of these problems. He talks about jobs lost overseas, and I wonder if that’s factored in jobs gained from “free trade.” Or, if some of the “jobs lost overseas” are simply lost to automated production. Also, if we’re losing jobs overseas (while not gaining new higher wage jobs in return) wouldn’t greatly reducing the tax burden and deregulation be a better way to keep US jobs here, while attracting jobs from overseas?

I’ve never been able to decide if I like ol’ Pat or not. I’ve always liked his foreign policy ideas, and he never fails to raise a few interesting points.

“Though we boast about our diversity, it appears that the more diverse we become as a nation, the less united we are as a people. Imus, Jena and the Duke rape case testify to it. As one wag puts it, the only thing melting now is the pot.”

This, however, is BS. We are one hell of a lot more united now, post 9/11, than we were back during the Civil Rights movements. The only major division in America these days is red and blue, and even they are starting to look an ugly shade of purple. Diversity is what made this country, and more people with different ideas, in my opinion, can only be a good thing.