In 2006, when Ecuadorians were electing a new president, Venezuelans such as Alejandro Peña Esclusa warned Ecuadorians that the young and charismatic Rafael Correa would use democratic institutions to impose “socialismo del siglo XXI” (Marxism) in Ecuador just like Hugo Chavez had done in Venezuela. (Reference — Carta abierta al pueblo ecuatoriano)

How did Peña Esclusa know that Marxism would be imposed in Ecuador? Because the basic elements of Chavez’s campaign (lies, manipulation, intimidation, fraud) were identical to those of Correa’s campaign.  Even their slogans were the same (CHANGE, YES WE CAN). Correa’s campaign appealed to young people, to the poor, and to everyone who was envious of others. Correa ridiculed the opposition as old and out of touch. Chavez had done the same. Correa’s campaign was extremely “professional” as millions were spent on that campaign. It seems most of those millions were donated by Chavez and terrorist groups, such as FARC (see Ecuadorean President Correa Took $100,000 From FARC to Fund Campaign), and perhaps even by the ubiquitous George Soros, working everywhere against democracy and U.S. interests.

Informed Ecuadorians were not able to convince their compatriots that Correa was a fake and not the wonderful savior the media was portraying. Once he took over, Correa dissolved Congress and took control of the legislative and judicial powers. Just like in Venezuela, Bolivia and Nicaragua, CHANGE in Ecuador has meant loss of freedoms and greater poverty and despair.  When informed Latin Americans realized that Barack Obama’s “Christian” Church was based on Black Liberation Theology (Marxism), they began to worry. Fidel Castro, Hugo Chavez, Rafael Correa all pretend to be Christian, but profess “Liberation Theology” (Marxism) instead. They noticed that Obama’s campaign strategies were almost identical to those of Chavez, Morales and Correa. And George Soros was supporting Obama!

However, most Latin Americans could not imagine that North Americans could be fooled as the poorest and most ignorant people in Venezuela, Bolivia and Ecuador had been fooled. Tito the Builder (from Colombia), for example, believed that “Americans are very smart” and would realize that Obama is a North American Chavez (see Tito the Builder). However, those Latin Americans were wrong. They were not keeping in mind that perhaps Soviet defector Yuri Bezmenov was right when he warned that, through media manipulation, Americans would be brainwashed and would allow their country to be taken over by Marxists (watch this video).

On November 4, 2008, tragedy struck the U.S. and the Free World. North Americans were fooled just like the poorest and most ignorant Venezuelans, Bolivians and Ecuadorians. Through lies, manipulation, fraud, and a bribed or corrupt media, a Marxist president was elected in the U.S.  A speck of hope… Barack Obama may not have a legitimate U.S. birth certificate. By December 1, 2008, Obama must present to the Supreme Court an authentic birth certificate. “I can see a unanimous Court (en banc) decertifying the election if Obama refuses to produce his birth certificate,” says Raymond S. Kraft, an attorney and writer. “They cannot do otherwise without abandoning all credibility as guardians of the Constitution.” (Reference — The Supreme Court and Obama’s Birth Certificate)  If Obama does not have a legitimate U.S. birth certificate, will the Court decertify the election?  For the sake of the U.S. and the world, the Court must do so.

Democrat economic policies are steering us into a collision course with disaster. This raises the question whether they understand or if they are so consumed by the desire for power that they don’t care.

From its peak a little over a year ago, the Dow Jones Industrial Average is down some 42%. This downward spiral coincides with the rise of the Democrats’ political star, now President Elect, pushing a platform of higher individual taxes, higher business taxes, increased capital gains taxes, increased government (deficit) spending and redistribution of wealth. Unfortunately for the Republicans, the voter blames the party in power for the economic problems and that blame was soundly felt at the polls last week. Clearly, the Republicans who are leaderless, unprincipled and lacking articulate spokespersons are not blameless. They pandered to the public as Democrat lite on the premise that they could win Moderates and Independents by moving left. They also failed in oversight with respect to Fannie Mae and Freddie Mac. Yes, the Democrats were in charge of those bloated and corrupt cash cows and yes, the Democrats blocked efforts that might have brought reform. However, a real leader of the opposition party would have gone directly to the public with the facts in evidence of what was occurring. But no; “real leader” and “Republican” has become an oxymoron. Consequently, the voters took the party to the woodshed and thought that by putting the fox in charge of the henhouse we chickens could be saved.

But there is a unique characteristic to financial markets. They don’t look back, they look forward and when they do they see even more economic calamity in the offing evidenced by clearly announced Democrat plans. Plans that will dig a hole so deep that recovery will be decidedly painful if achievable at all. Waiting in the wings to exploit our economic weakness are a host of foreign enemies who are growing their economies and their military capabilities. Health care, college tuition and earned income tax credits will be the least of our concerns given emerging geopolitical issues viz a viz Israel, Iran, Syria, South America, North Korea, China, Russia and Al Qaeda. We are fiddling while our manufacturing base crumbles and the only growth sector for jobs is government. Who will be there to manufacture the military hardware in support of a major defense build up?

At the foundation of our problem is taxation. High corporate tax rates force companies to shift manufacturing to lower taxed countries. If your profits are taxed at 35% in the US and 12% in Ireland, certainly the Chief Financial Officer is going to recommend the Board of Directors shift to Ireland. The same scenario exists for small companies where the majority of private sector jobs originate. Taking money from productive people who make over $250 K and giving it to unproductive people under that threshold stifles and kills growth. Jobs are being lost, not created. At the same time the small business infrastructure necessary for the support of larger companies crumbles.

On top of this, seeds are being sown for a concurrent problem with inflation and/or stagflation. Bailout monies on top of increased entitlements on top of unfunded liabilities for Social Security, Prescription Drugs, Medicare and Medicaid cannot be financed without printing more money. And that is a recipe for disaster. Better buy a wheelbarrow to carry your money to the grocery store. The 20% mortgages under Jimmy Carter will look like a bargain.

The coup de grâce is energy. Instead of incentives to utilize our own resources and get off foreign oil, the plan is to increase that dependence by instituting cap and trade* and continue blocking exploration, utilization of coal, natural gas and nuclear power. Cap and trade alone will dramatically increase the cost of electricity compounding the exporting of jobs and manufacturing caused by high taxes. Energy is critical to growth. Without affordable energy business cannot produce economically. Further compounding matters the consumer has yet another drain on discretionary spending.

This is not complicated. High taxes and energy costs kill jobs. Without jobs there is no consumer and without jobs and consumers there is no tax base. Where will the money come from to fund the entitlements?

Here are some anecdotal references to ponder:

• California representative Maxine Waters during a hearing on oil prices said to company executives “…when we socialize you…”
• Massachusetts representative Barney Frank, who brought us the Freddie and Fannie debacle, wants to give auto companies a bailout package in exchange for installing a government master to control product development.
• New York representative Charley Rangle, himself a tax evader, wants to find more creative ways to tax wealthy people.
• Virginia representative Jim Moran thinks it is wrong for people to believe they can hold on to their wealth.
• President elect Obama plans to let the Bush tax cuts expire in 2010 creating a substantial tax increase by default thereby exacerbating the recession.
• Others in Congress have called for a 25% reduction in defense spending to fund social programs.
• New York City Mayor Michael Bloomberg wants to raise taxes and fees to offset budget shortfalls. New York State is facing a massive deficit and the Unions and the legislature do not want to cut spending. The political entities are, in effect, going out of business and the unions and the democrat controlled legislature believe they can continue spending as if nothing is happening!

The market sees where all this is leading and investors are jumping ship.

While Congress plans more and more entitlements to be paid for with money and taxes that are no longer there, the country’s economic base crumbles and melts away. Along with it goes our defense infrastructure and related manufacturing base that forms the foundation of our strength and security. In addition to the markets, the world sees where we are headed and has only to pick the right time and place to deliver a knock-out blow.

Perhaps if we had a truly independent media and taught critical thinking skills in our schools, tough questions would be asked and the voting public would have a better appreciation for why we are on this track and where it is taking us.

So, do the democrats understand or care? Looks like what they care about is power and control but are so blinded that they can’t see the oncoming train.

*Cap and Trade: — A flexible environmental regulation mechanism that sets an overall limit on the emission of a certain pollutant, but allows companies that can easily reduce emissions to sell credits to other companies for which such reduction would be difficult. The cap ensures that emissions will not exceed a desired amount.

© Keith Kappel 2008, all rights reserved