Monthly Archives: February 2009

Why Fed Chief Ben Bernanke is Either a Liar or Fool- Finding the True Path to Economic Recovery

Fed chief Ben Bernanke testified a year ago (April of 2008) before Congress and said that America was not yet in recession and might still avoid it. He called our economic crisis at the time a "contraction." Interesting choice of words. At the time, I was so shocked and outraged at those comments that I wrote a commentary ripping Bernanke to shreds. I felt he was either a fool or a liar. Well the more things change, the more they stay the same. Earlier today Ben Bernanke told Congress that the recession will end this year. THIS YEAR. Really? You could have fooled me.

So the man who didn't even know we were in a recession last April, now thinks he can read the future? How can we depend on his ability to predict the future, when he's proven he can't even predict the past. While the Chairman of the Federal Reserve had no clue we were mired in a deep recession last April, this small business owner-turned-Libertarian Vice Presidential candidate was already loudly and publicly calling it a depression. In my commentary last April, I concluded that we had been in a deep recession for as long as a year…and I stated that it was clearly turning into a depression.

How did I accurately predict and diagnose economic conditions that the Fed Chairman couldn’t? Simple- small businessmen are "the canaries in the coal mine." We live on Main Street. We feel seismic tremors when book-smart economists from Harvard in their Ivory Towers are still giving lectures about how earthquakes can't possibly happen. My prediction of course turned out to be deadly accurate. Bernanke's prediction that we might avoid a recession joins the scrap heap of history. Our Fed chief joins a long list of economic geniuses whose heads were so far up their butts, they couldn't find water in the middle of an ocean.

Back in April of 2008, I predicted a long and deep depression- not of 1929 standards, but certainly the worst since 1929. At that same moment in time, our Fed chief was describing the worst economic crisis of our lifetimes as "a contraction." That would be equivalent to telling a pregnant woman that her labor pains are “just contractions.” As a four-time father with my lovely wife Debra, I know that husbands face either bodily injury or divorce for comments that ignorant and insensitive. Perhaps economists and Fed Chiefs should face the same fate.

In today's Congressional testimony, Bernanke called our deepening economic crisis a "severe contraction." Recognize the pattern? Last April a deep recession was in Bernanke's words just a "contraction." Now the worst crisis of our lifetimes (and quite possibly a depression) is merely a "severe contraction" which will end this year. This man has a way with words. He’s almost as good as President Obama with words. Obama is the man who boldly promised during the election that he would create millions of jobs. I commented publicly at the time that since he had never run a business in his life, any job that Obama created as President would be his first.

But once elected Obama changed his tune. First, he predicted his economic stimulus plan would create millions of jobs...then he changed the prediction to a less bold "create 3 million jobs"...then he changed it to "create or save 3 million jobs.” Interesting phrase to use- “save jobs.” How exactly do you keep track of how many jobs you’ve saved? Well of course the answer is that you cannot keep track. You can make up any number you’d like. So if 5 million or 10 million jobs are lost under Obama, he’ll simply claim that he saved 5 or 10 million more and declare victory. Watch the words carefully and you'll see the pattern of lies from a politician or Fed chief.

But I digress- back to our esteemed Fed chief…Mr. Bernanke didn't even know what a small businessman knew back in April of 2008. So why would anyone trust Bernanke now? He predicts this recession will end this year? Really? With hundreds of thousands of Americans losing their jobs per month, he thinks we're ready for a miraculous recovery? With consumer spending at a historic standstill and consumer confidence at all-time lows? With the massive losses of Eastern Europe about to wipe out virtually every European bank, he thinks the worst is over? The problems of European banks at this point make the crisis in the U.S. look like...well a "contraction" by comparison. But here's the problem- if European banks go under, Europe goes into a depression like 1929. And there goes our trading partners, thereby plunging America into round 2 of this crisis. Dark clouds are forming on the horizon. Not months away, not weeks, but days. And our Fed Chief sees sunshine ahead. The only question is...is Bernenke a fool or a liar?

The worst of this crisis has not even begun yet. Bernanke claims to be a student of history. So let this small businessman and Vegas Oddsmaker-turned 2012 Presidential hopeful educate our esteemed Fed chief on the subject of history. Historically a deep recession (or in my opinion a DEPRESSION) like this one does not end in a year. Historically the worst is yet to come. Historically the problem is the lagging absence of tax revenues. Our government will buckle over the next 2 to 5 years because of a dramatic drop in tax revenues. Never in the history of economic crisis' this serious, have tax revenues ever recovered for years. Now that's a big problem under any circumstances. But when you have a President like Obama who likes to spend (and spend BIG), this creates a crisis of epic proportions.

"The rich"- as Obama likes to call successful American entrepreneurs and business owners- are decimated. Their incomes have been cut dramatically and therefore government tax revenues will drop dramatically for years to come. It's pretty simple- there are far fewer rich people and those that are still technically "rich" have far lower incomes. Yes, there are still rich Americans, but the group is a shadow of its former self from the halcyon days of the 90’s and early 2000’s. In short, much of the group that Obama depends on to pay for all his massive out-of-control spending, no longer exists. The same group that pays for all the bills of government, no longer exists. The same group that pays for bloated government employees compensation and pensions, no longer exists. The same group that Obama depends on to pay for Universal government-run health care, no longer exists. Obama's plans have gone up in smoke (excuse the reference to Obama's college days). The world has changed overnight, and Obama and Bernanke don't even realize it.

But wait, it gets worse. When Obama hits this group ("the rich") with a massive tax increase in 2011, tax revenues will drop even further. All at a time when federal, state and local governments have decided to take the dangerous, reckless, deadly path of spending more, hiring more, paying more to government employees, hiring more teachers, wasting more money on trains from Los Angeles to Vegas (another Amtrak?), and countless other billion dollar boondoggles and earmarks disguised as "economic stimulus."

Just as spending, deficit and national debt goes up dramatically over the next 24 months, tax revenues will go down just as dramatically. How will government fund all this spending? Well of course Ben Bernanke's Fed will print more money- by the trillions. The result? A massive wave of inflation
that will wreck the U.S. economy just as Obama and Bernanke hope to be coming out of the crisis- causing a further drastic drop in tax revenues, and a second wave of depression/unemployment- just as it happened in the 1930's under FDR.

Obama's plan to spend more; expand government; hire more government employees; hand out more entitlements; and strengthen labor unions; is a tragic repeat of FDR's plan. It will lead to the same result- economic disaster. It is important to note that it took World War II to end the last decade-long depression.

It doesn't take a Harvard economist to see what is coming. Countries will face massive unrest, rioting and revolution the world over. Governments will fall. Companies thought invincible, will fail- just as GM, Ford and Chrysler were once thought invincible. The face of politics as we know it will be changed forever in the aftermath of this economic tsunami. And in the midst of economic Armageddon, our Fed chief whistles past the graveyard.
All that said, in the long run I remain an optimist. I love America. I have faith in Americans. Today we are headed down the wrong path. The recovery from this disaster will be long, slow and brutal. But eventually we will emerge from the darkness. But only after a majority of Americans recognize the tragic mistakes of this administration. Only after our local, state and federal governments enter rehab to treat their spending addiction. Only after government dramatically cuts spending and taxes- thereby empowering the ingenuity and creativity of the American entrepreneur, small business owners, and the private sector. Only after we recognize that government isn’t the solution- it’s the problem. Freedom and liberty can never- in the long run- be extinguished. Not in this great country. How soon we recover depends on how soon we recognize that the path to recovery is only found economic and personal freedom.

Wayne Allyn Root was the 2008 Libertarian Vice Presidential candidate. His new book will be released by John Wiley & Sons this Spring entitled, “The Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gambling & Tax Cuts.” The book is available for pre-sale at Amazon.com. Wayne also happens to be Barack Obama's college classmate (Columbia University Class of '83). For more of Wayne's views, commentaries, or to watch his many media interviews, please visit his web site at: www.ROOTforAmerica.com







Oscar Predictions from a Las Vegas Oddsmaker-Turned-Vice Presidential Nominee

I spent 13 years living amongst the Hollywood hypocrite crowd in Malibu, California. You know the type- the men talk day and night about feminism, women's rights and respecting women, but they spend their afternoons hanging out at strip clubs and cheating on their wives with young bimbos.

They talk nonstop about equality and racism, while they send their kids to 100% white private schools
that cost $30,000 per year (plus donations) for kindergarten slots. Incidentally, they choose where to live the exact same way- they talk day and night about diversity, but the only person of color ever seen in their neighborhood is Quincy Jones or Whoopi Goldberg.

They publicly invite homeless people to come to their home in Malibu, but their home is behind gates with alarms, video cameras, guard dogs and five bodyguards patrolling the property (see Martin Sheen).

They demand higher taxes in the name of “fairness,” but they hire the best tax lawyers and accountants to avoid those higher taxes (or don't bother to pay any taxes- see Wesley Snipes).

And while they act shocked and offended over CEO's having the audacity to earn $5 million per year, these same limousine liberals earn $25 million per picture, and expect $10,000 in free swag to come their way on Oscar Night.

They protest on behalf of unions, the homeless, and illegal immigrants, while they spend $4000 per hour on escorts. They talk to the press about their wonderful family they couldn't live without, while they've been divorced 6 times and their kids are raised by nannies, maids, butlers and chauffeurs.

They cry over global warming and brag incessantly about their politically-correct electric cars, but fly private jets and ride in limos to accept their awards- using up more gas in one trip than the rest of us spend in an entire year (see Al Gore).

They play soldiers on film and act like tough-guy Marines in their media interviews, when in reality they cry like little girls if their $10,000 per night hotel suite doesn't come with hot and cold running Perrier in the Jacuzzi. These people should win awards on Oscar Night for gall and hypocrisy.

In case you've never spent time with the Hollywood crowd, let me educate you- they are such fakes, frauds, hypocrites and spoiled brats, they would make you want to vomit if you spent 5 minutes around them. They are the biggest bunch of dysfunctional headcases, neurotic flakes, and pathetic souls you've ever seen in your life.

But after spending 13 years putting up with their pathetic whining and nauseating political correctness, I know these people like the back of my hand. I can tell you how they think…how they vote (always for the most revoltingly liberal candidate)…and how they vote for the Oscars. EVERYTHING - and I mean everything- they say, think and do is colored by their bleeding-heart socialist political views. So with all that in mind, here are my 2009 Oscar predictions. Liberals are so predictable:

Best Picture. Easy Pick- Slumdog Millionaire. The bleeding heart liberal crowd loves any movie that showcases the pain of poverty. It gives them a reason to drone on for hours (or days) about the unfairness of inequality. Then they feel absolved of guilt when they get back in their limos, head to the airport to board their private jets, and fly to their Italian mansions on Lake Cuomo (see George Clooney) with their young starlet girlfriends. Afterall, poverty is something experienced only by “the little people.” If not Slumdog, the best picture award will go to Milk- another liberal fan favorite.

Best Actor. Easy Pick- Sean Penn of Milk. Afterall he's a straight macho guy playing a gay politician. In Hollywood anyone straight who plays a gay role gets an automatic Oscar- ask Tom Hanks, William Hurt and Charlize Theron. Besides, Penn scores brownie points with the limousine liberal crowd for being a pathetically, radically bleeding-heart liberal in real life.

Best Supporting Actor. Beyond an Easy Pick, this one is a "sure thing"- Heath Ledger is the 1000 to 1 favorite. I'd bet a million dollars on this one. Afterall, Heath died from overdosing on pills- the cause of death being classified as “abuse of prescription medication” by the medical examiners office. That's so “chic” in Hollywood circles. James Dean, Marilyn Monroe, Elvis, JFK- if you're young and beautiful and die before your time in a mysterious way- you are automatically coronated in Hollywood. Ledger died as your typical sensitive artist in mental anguish.

It was all too much for Sir Heath- the tens of millions of dollars per film; the bi-Continental life in L.A., Soho, and Sydney; the gorgeous wife and daughter; and of course the cast of thousands of gorgeous models and groupies who'd sleep with him at the snap of a finger. How on earth can anyone live with that kind of burden? Oscar voters understand only too well. Giving Heath an Oscar will absolve everyone in Hollywood of their overwhelming guilt for cheating on their wives, taking drugs, and making lots of money for acting in incredibly vapid and meaningless films. They'll celebrate Ledger, cheer, cry, drink champagne and snort cocaine all night to show solidarity, then sleep until 2 PM and give themselves a day off from seeing their shrinks.

Best Actress. This one is tough but Kate Winslet will win it. Hollywood loves her. She is 0 for 5 in Oscars (remember, liberals feel bad for losers and want to punish successful people). And most importantly, her boss is Harvey Weinstein. Harvey is the king of Hollywood bleeding-heart liberals. Whatever Harvey wants, Harvey gets.

Best Supporting Actress. The winner is Penelope Cruz. She hsas all the liberal stereotypes going for her- Penelope is Hispanic. She has starred in movies glorifying drugs and drug dealers (Blow). She used to date Tom Cruise. And it's rumored she is a Scientologist. Add it up- she has the perfect Hollywood resume- give this gal an Oscar!

Those are my predictions. Enjoy the Oscars and watch the pathetic liberal psychosis of Hollywood on display when the winners are announced. Best Wishes!
Wayne
Wayne Allyn Root


Wayne Allyn Root was the 2008 Libertarian Vice Presidential candidate. His new book will be released by John Wiley & Sons this Spring entitled, “The Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gambling & Tax Cuts.” The book is available for pre-sale at Amazon.com. Wayne also happens to be Barack Obama's college classmate (Columbia University Class of '83). For more of Wayne's views, commentaries, or to watch his many media interviews, please visit his web site at: www.ROOTforAmerica.com

The Great Obama Lie: “Where’s the Shared Sacrifice?”

Obama and his Democratic cohorts incessantly lecture the American people about “shared sacrifice” in these times of economic crisis. Obama just last week set limits on executive pay at companies that have taken government loans. The Democratic Congress (led by Senator Chris Dodd) then one-upped Obama by setting strict limits on executive bonuses as well. The Democratic cabal of Obama/Reid/Pelosi describe raising taxes on the wealthy as “fair” on news programs virtually every hour of every day. Every mention out of the mouths of liberal Democratic politicians is about the sacrifice that should be made by CEO’s, executives, and high-income taxpayers. I agree- everyone should sacrifice. But shouldn’t “everyone” include government and Obama’s supporters too?

I will agree with President Obama on one topic. I agree that executives from companies that take taxpayer money must play by a new set of rules. Once you accept money from the government, strings are attached. Uncle Sam is calling the shots. And government has a right and responsibility to protect taxpayers (from excessive compensation). CEO’s and other executives of private companies have every right- with Board of Directors and shareholder approval- to take any compensation packages and golden parachutes they deem acceptable. But they don’t have a right to award obscene compensation packages when they are living off loans from taxpayers. I do not feel sorry for these CEO’s or executives- they brought this all upon themselves. The lesson for corporations is simple: NEVER again accept money from government.

But the real question is why should CEO’s and high-income taxpayers be the only ones asked to sacrifice? If we are in a once-in-a-lifetime crisis, doesn’t everyone have to sacrifice- even Obama’s voters and contributors? When Obama gives “tax cuts” to the 40% of Americans who don’t pay taxes in the first place, exactly how are they sacrificing? When Obama talks about sacrifice, how come he never mentions rank and file autoworkers? You mean blue-collar union members who get paid $160,000 per year in salary, pension and health benefits to drill rivets into fenders, shouldn’t be asked to sacrifice? You mean their obscene compensation packages aren’t part of the problem? If you do the math, it isn’t the CEO making $5 million per year that is bankrupting auto companies. It is bloated union contracts awarding hundreds of thousands of autoworkers the obscene amount of $160,000 each that is bankrupting the “Big 3” automakers. Why isn’t Obama asking the auto unions to sacrifice? Could it be because they bribed him (legally) with multi-million dollar contributions and millions of man-hours campaigning for him (manning phone banks, going door to door, licking envelopes, etc)? Could this whole idea of sacrifice be a cynical political ploy?

If it isn’t all about politics, how do you explain that Obama has not asked teachers to sacrifice a thing? Or college professors. Or federal government employees. Or state and local government employees. Or union members. As the old lady in the Burger King commercials might have said, “Obama, where’s the shared sacrifice?” Because I don’t see any sacrifice coming from Obama’s side of the table. While 50 states are in recession, guess whose economy is still booming? The District of Columbia. The hiring and spending of government goes on unabated during this unprecedented economic crisis. So where’s the sacrifice in D.C?

I certainly don’t see the sacrifice coming from Senators and Congresspersons. Have they agreed to cut their salaries until this economic crisis is over? Last I checked, many of Obama’s cabinet appointees have admitted they don’t even pay their fair share of taxes. His Treasury Secretary Tim Geithner- tax cheat. His Health & Human Services appointee Tom Daschle- tax cheat. Nancy Killefer, his choice for Chief Performance Officer- tax cheat. His Labor Secretary Hilda Solis- her husband appears to be a tax cheat. Don’t forget the Democratic Congressman in charge of tax policy Charles Rangel- tax cheat. It’s pretty easy to spread the wealth around, when you don’t pay any taxes yourself. It’s pretty easy to point fingers and rail about sacrifice, when you don’t think those same rules apply to you.

When Obama uses the economic stimulus money to hire 600,000 new federal employees, where’s the sacrifice for those 600,000 new Democratic voters? When Obama hires 100,000 new teachers, where’s the sacrifice for those 100,000 new Democratic voters? Not only are none of those people being asked to sacrifice today, they are now set to receive government salaries, cost of living increases, obscene pensions, and health care benefits for LIFE. We (the taxpayers) are on the hook for these new government employees for the next 50 or more years- no matter how bad the economy is. And unlike the private sector, they have a guaranteed job for life; generous paid holidays throughout the year; and the right to retire at age 45 or 50 (with almost full pay for LIFE). Where’s the sacrifice of this privileged government class?

As 600,000 Americans per month lose their jobs in the private sector, why isn’t government laying off hundreds of thousands of employees? Why are state and local employees in my home state of Nevada facing no layoffs and getting their annual pay RAISES, while small businesspersons like me are laying off workers; taking huge pay cuts; putting our own personal money into our business in a desperate attempt to survive; or going out of business. Where’s the “shared sacrifice?”

Why should Obama ask business owners to sacrifice so that government employees can get pay raises in the worst economy of our lifetimes? Why should businesses sacrifice and lay off employees, while government continues hiring like everything is fine? Why are government union employees getting awarded with privileges that no one in the private sector could hope for? No one I know in business gets guaranteed jobs for life; or guaranteed cost of living and “step up” pay increases; or bloated pensions of almost their full last year’s salary; or gets to retire at age 45 or 50 after only 20 years of work; or gets health care paid for by taxpayers for LIFE. I know no one getting any of those things in the private sector. I have no pension of any kind. Who created this privileged class? Why don’t government employees have to sacrifice like the rest of us?

I have no trouble with Obama asking me to pay higher taxes, or asking CEO’s to limit their pay, as long as he agrees to massive layoffs and pay cuts for government employees. As long as he agrees to cut government spending dramatically, as opposed to increasing it while I’m busy cutting spending and sacrificing. As long as he demands that auto unions re-structure union contracts agreed to in more prosperous times, that now threaten to bankrupt their employers. If Obama is going to ask for sacrifice, then we all have to be rowing in the same boat, in the same direction. But some of us cannot be benefiting, while others sacrifice.

From my side of the street- as the taxpayer that is being asked to pay for all this government theft and waste, I just don’t see any “fairness” in President Obama’s message of sacrifice. I see a cynical political ploy to punish private sector taxpayers who traditionally don’t vote Democrat; and reward those who live off government jobs and handouts- and who just happen to vote Democrat. I see a cynical political ploy to rob Peter to pay Paul- so that the private sector that supports conservative candidates and causes is weakened… and Obama’s Democratic supporters are flush with cash to contribute to future Democratic campaigns.

When Obama blames CEO’s of failed banks and Wall Street companies and wants to hold them responsible, I agree. But who holds failed government employees responsible? Government agencies waste and spend and lose billions- just like Wall Street did in the Fall of 2007. Isn’t the U.S. Postal Service failing? Isn’t it losing billions of dollars per year? Isn’t the public school system failing badly? Is Obama holding those government employees responsible or accountable? The big difference is that government has been losing money every year since inception, while Wall Street and banks just had one bad year. The other difference of course is that no matter how much money government loses, they just ask taxpayers for more. Obama asking the CEO’s of private industry to be responsible and accountable is the very definition of audacity.

This Obama economic stimulus bill has nothing remotely to do with “shared sacrifice.” It’s a massive vote-buying-scheme. It’s about expanding the size of government and the privileged government employee class. It’s about expanding the size of the Democratic Party. It’s about making more people dependent on welfare and government handouts. It’s about forcing one group- the people who didn’t vote for Obama- to do all the sacrificing. I don’t mind sacrificing. To the contrary, I’ll do anything to save this great country. We are facing a once-in-a-lifetime economic tsunami that demands sacrifice from everyone. But with all due respect Mr. President, “everyone” includes government, government employees, Washington D.C. bureaucrats, politicians on both sides of the aisle, and your supporters. So next time you lecture us on “shared sacrifice,” try to share some of it.

Wayne Allyn Root was the 2008 Libertarian Vice Presidential candidate. His new book will be released by John Wiley & Sons this Spring entitled, “The Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gambling & Tax Cuts.” The book is available for pre-sale at Amazon.com. Wayne also happens to be Barack Obama's college classmate (Columbia University Class of '83). For more of Wayne's views, commentaries, or to watch his many media interviews, please visit his web site at: www.ROOTforAmerica.com

Obama the Hypocrite: He Disparages Las Vegas, But He Visited Vegas TWENTY Times During the Campaign

Here is a tale of two classmates. President Barack Obama and I both attended Columbia University, Class of 1983. We both majored in Political Science and Pre Law. We both went into politics- I became the first Nevadan ever on a Presidential ticket as the 2008 Libertarian Vice Presidential nominee. That’s where the similarities end.

Obama chose Chicago, Illinois as the place to build his career, start his family and create his future. I chose Las Vegas, Nevada. Those disparate choices showed up clearly days ago when Obama chose to denigrate my adopted hometown of Las Vegas. Obama literally tried to discourage CEO’s and corporate executives from choosing to hold company events, meetings or conventions in Las Vegas. He was insinuating that Vegas is “Sin City” and not appropriate for business meetings. It’s interesting to note that Obama never said a bad word about Las Vegas when he visited here TWENTY TIMES during the 2008 Presidential campaign.

When Obama chose Chicago as his adopted hometown, he chose a place with the highest taxes; the biggest government; the most bureaucrats and the most draconian government bureaucracy in the country; strict government gun control; and perhaps the worst schools in America. Everything in Chicago is about taxes, government and “the machine.” Obama’s political career was created out of the Daley Democratic machine. People aren’t supposed to think for themselves in Chicago. The politicians think for you. They make decisions about your own money for you. But first, of course, they must confiscate it from you.

And don’t forget the corruption- “Whatever you make in Chicago, stays in the pockets of Chicago politicians.” Machine politicians in Obama’s adopted hometown think your money belongs to them. They think citizens are idiots who can’t think for themselves. Chicago politicians even passed a law to ban Foie Gras from being served at restaurants. They think they know better than you what you should be allowed to eat in restaurants in Chicago. Freedom is a 4-letter word in Chicago.

On the other hand, I chose Las Vegas as the place to build my career and create my future. Nevada is a place where freedom is honored, where taxes are banned by the state constitution, and where guns are welcome in the hands of law-abiding citizens. Don’t take my word for it. Reason magazine recently named Las Vegas the #1 big city in America for personal freedom. Because of our low tax structure, I believe Las Vegas is also #1 in America for economic freedom.

I realize that people from places like Chicago and Washington D.C. don’t understand places where people are free, guns are legal, government is small and taxes are banned. I realize that big government liberals like Obama resent places with frontier spirit like Nevada. I realize that he’d like to hurt a place like Nevada- so the example of the success of lower taxes and more freedom for individuals is muted. But there’s a little hypocrisy at work here. Obama had no problem with Nevada when he visited here nonstop during the Presidential campaign. Not once did he say he would ban companies from holding meetings ad conventions here. Not once did he call Las Vegas a place inappropriate for corporate America.

Obama's comments to a big audience on Tuesday suggesting that companies that take taxpayer money shouldn't hold meetings in Las Vegas are the very definition of chutzpah and hypocrisy. If he thinks of Vegas in a negative way, he should have said so on the campaign trail. Perhaps tens of thousands of Nevada’s blue-collar hotel workers and union members would not have voted for him in November.

The results of Obama’s insensitive, insincere and thoughtless remarks have been devastating to the Las Vegas economy. We have already experienced multiple cancelled meetings and conventions in the days since his comments. So now Obama thinks he knows how and where business executives should spend their money? How “Chicago” of him. This is an example of the arrogance of “machine politics” at it’s finest. I see that both Foie Gras and Vegas fall into the category of “politically incorrect” for Chicago machine politicians.

This is what you get when we allow arrogant politicians, who think they know better than us, to rule our lives from Washington D.C. Obama thinks he is the “anointed one.” The man who has never run (or financed) a business in his life, nor ever created a job, now thinks he is the boss of American business. He has already set a limit of $500,000 on salaries for the CEO’s he lords over. Now Obama will micromanage (from the White House) even the decisions about where meetings should be held by corporate America. Corporations are now expected to cancel their trips, meetings and conventions in Las Vegas to win favor with the “anointed one.” Obama wants to jumpstart the U.S. economy by ruining the Las Vegas economy.


As a result Goldman Sachs has already changed a 3-day business conference from Las Vegas to San Francisco. Here's a great example of the common sense and wisdom of government- the average hotel room rate in Las Vegas is $274 per night; in San Francisco the average room rate is $361. I'm certain the cost of everything else is higher in San Francisco too. But the more important issue isn't wasted dollars- it's freedom. Don't executives have the right to hold meetings and conventions where ever they choose? Don't companies have a right to reward their best employees and biggest producers with special trips to desirable places like Las Vegas? Isn't that how you motivate employees, thereby creating more sales and higher revenues?

What if cancelling a Las Vegas event costs a company an extra million dollars (or two) in cancellation fees? What if switching from Las Vegas to New York or San Francisco costs millions more in higher hotel room and airfare rates? What if this decision, multiplied thousands of times throughout across corporate America, costs the American economy billions of dollars? What if the tourism industry is ruined as corporations cancel all their conventions because they are afraid of what Obama will say? How many millions of jobs will be lost? Is this the “change” we were looking for?

Perhaps “the anointed one” is just bitter that Chicago is among the nation’s leaders in out-migration for the past decade, while Nevada leads the nation in population growth. The people- especially those with assets and businesses- have voted. They have chosen lower taxes and more freedom- the kind found in Nevada, not Illinois. Perhaps that bothers Obama. But he sure didn’t show it during those twenty campaign visits to Nevada. That was then, this is now. Now there’s some change you can count on.

Perhaps Obama doesn't understand that Las Vegas is the very symbol of America across the globe. It is the convention and meeting capital of America. It is the tourist capital of America. The newspaper USA Today only a few years ago called Las Vegas “the economic engine of America.” That could be why Nevada has been the fastest growing state in America for 20 of the last 22 years. That could be why the Census Bureau predicted recently that Nevada would remain the single fastest growing state in all of America for the next 25 years. That kind of success hasn’t been experienced in Chicago in a century.

Or perhaps Obama does understand only too well the success of Nevada. Government ruins virtually everything it touches. Perhaps now Obama wants to ruin the symbol of smaller government, lower taxes and more freedom for the individual. Should anyone be surprised that the man who idolizes Big Brother and thinks government always has the answer, now wants to tell CEO’s where they can hold their meetings? I predicted from day one that Obama’s goal would be to turn America into one big Chicago- with Big Brother ruling every decision, controlling our economy, and ruining our lives. Welcome to Obamaville. Obama’s controversial and hypocritical comments about Vegas are simply more proof that “Whatever happens in D.C., should stay in D.C.”




Wayne Allyn Root was the 2008 Libertarian Vice Presidential candidate. His new book will be released by John Wiley & Sons this Spring entitled, “The Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gambling & Tax Cuts.” The book is available for pre-sale at Amazon.com. Wayne also happens to be Barack Obama's college classmate (Columbia University Class of '83). For more of Wayne's views, commentaries, or to watch his many media interviews, please visit his web site at: www.ROOTforAmerica.com

American Business Has Sold Its Soul to the Devil: Exhibit A- Obama Warns Companies Not to Book Events in Las Vegas

Government is filled with people who couldn't get a job in the private sector. Why on earth would we put them in charge of our economy? If they knew anything about running a business, they'd be running a business. George W. Bush was a failure at virtually everything he ever did in the business world- except buying the Texas Rangers. He succeeded at that because of his family connections and wealth. Anyone could make money buying a baseball team- if you have the connections and millions of dollars necessary to buy one in the first place. Then Bush proved his lack of business skills by running our country into the ground, ruining our economy, and increasing our debt dramatically.

Did we learn our lesson. Heck no. We followed up Bush with the only guy on earth who knows less about business- Barack Obama. The new President may be an eloquent speaker, but he knows ZERO about business- unless you think protesting about racism is a business. With all due respect to Al Sharpton and Jesse Jackson, who turned protesting about racism into a lucrative business, it bears no resemblance to running the United States economy. Obama believes spending trillions and wasting trillions on pork, handouts and entitlements to reward his voters is the way to end a depression. He believes bigger government and bigger spending is the way to create jobs- even though in his entire life, he has NEVER before created a job. He believes driving the national debt to ever-higher levels is the way to avoid bankruptcy. He believes in times of economic crisis, instead of tightening the budget, we should spend irresponsibly. He believes that handing out government jobs is the way to improve the economy- even though the fact that the federal government spends too much on government employees is a major reason we are in this crisis in the first place.

We have handed power to a man ignorant of the simple rules of economics. That is no surprise- afterall, he was my classmate at Columbia University. He studied political science, but never took a business or economic course in his life. No wonder a man that stars at politics, can fail so miserably at running an economy. I attended those same political science classes at Columbia University. Never was running a business (or an economy) explained or discussed. We are in serious trouble folks.

Now you may understand why government's decisions make no sense when it comes to running a business. Take Obama's comments to a big audience on Tuesday suggesting that companies that take taxpayer money shouldn't hold meetings in Las Vegas. The result? Multiple cancelled Vegas meetings and conventions in just hours after his comments. So now Obama thinks he knows how and where business executives should spend their money? He will micromanage- from the White House- even the decisions about where meetings should be held by corporate America.

Perhaps Obama doesn't understand that Las Vegas is the symbol of America across the world. It is the convention and meeting capital of America. It is the tourist capital of America. The newspaper USA Today only a few years ago called Las Vegas “the economic engine of America.” That could be why Nevada has been the fastest growing state in America for 20 of the last 22 years. That could be why the Census Bureau predicted recently that Nevada would remain the single fastest growing state in all of America for the next 25 years. Yet Obama expects corporations to cancel their trips, meetings and conventions in Las Vegas? Obama wants to jumpstart the U.S. economy by ruining the Las Vegas economy?

As a result Goldman Sachs has already changed a 3-day business conference from Las Vegas to San Francisco. Here's a great example of the common sense and wisdom of government- the average hotel room rate in Las Vegas is $274 per night; in San Francisco the average room rate is $361. I'm certain the cost of everything else is higher in San Francisco too. But the more important issue isn't wasted dollars- it's freedom. Don't executives have the right to hold meetings and conventions where-ever they choose? Don't companies have a right to reward their best employees and biggest producers with expensive trips to desirable places like Las Vegas? Isn't that how you motivate employees, thereby creating more sales and higher revenues?

Obviously that's no longer the case with politicians running the show. Obviously the rules of business have dramatically changed if we let politicians make snap decisions based on public perception in far-away Washington D.C. This is what you get when you sell your soul to the devil- government runs your life; runs your business; micromanages every decision; and makes horrible and costly decisions based on politics and public perception- not the realities of economics. What if cancelling a Las Vegas event costs a company an extra million dollars (or two) in cancellation fees? What if switching from Las Vegas to New York or San Francisco costs millions more in higher hotel room and airfare rates?

What if this decision, multiplied thousands of times throughout across corporate America, costs the American economy billions of dollars? What if the tourism industry is ruined as corporations cancel all their conventions because they are afraid of what Obama will say? How many millions of jobs will be lost? What if thousands of middle-class Las Vegas hotel service union employees lose their jobs as a result of Obama's edict? What if hundreds of cabdrivers lose their jobs? What if hotels in Las Vegas go broke? What about the investors, banks, hedge funds and shareholders who will lose their investments in those hotels? Doesn't that affect the American economy?

What if hotels across the country go bankrupt because companies are afraid to spend money rewarding their best employees- because of Obama's edict and public perception? What if that destroys motivation and as a result sales go down? How will that affect the economy? If we all stop going to Las Vegas, or spending money on tourism or conventions, what happens to the economy? Does government ever think of these things? Does government ever think before it speaks?

It's no wonder that everything government touches fails. Do you like the way Amtrak is run? How about the DMV? Anyone bound out of bed in the morning excited to get to your appointment at the DMV? Do you love dealing with the IRS? How about welfare- anyone out there think welfare has been run well? Anyone proud of the way our returning wounded warriors were treated by Walter Reed Hospital? Let's not forget that government ran the Iraq war. Great job fellows! The same people are now trying to destroy the economy of the fastest growing city in America for the past 25 years. To Big Brother, Las Vegas is no longer an “acceptable” place to spend your money. This is what happens when you give power to government. Big Brother is filled with people who know nothing about business; who know nothing about economics; who know nothing about incentivizing top producers and salespersons; and often it is filled with bureaucrats who couldn't get a job in the private sector.

The CEO's of American business are learning a valuable lesson. In the long run it will be a profitable lesson. In the short term it will prove disastrous. The lesson is to never again accept a dollar from government. It's the same lesson that welfare recipients across the country should have learned long ago. Once you are dependent on government, it is hard to break the deadly addiction. It comes with strings- dangerous and deadly strings. Once you open that door, you have Big Brother as the boss calling your shots. Now many of the biggest banks and companies on Wall Street are stuck with government as an unwanted partner. The gang that can't shoot straight is now in charge of American business. God help us all- we have sold our souls to the devil.


Wayne Allyn Root was the 2008 Libertarian Vice Presidential candidate. His new book will be released by John Wiley & Sons this Spring entitled, “The Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gambling & Tax Cuts.” The book is available for pre-sale at Amazon.com. Wayne also happens to be Barack Obama's college classmate (Columbia University Class of '83). For more of Wayne's views, commentaries, or to watch his many media interviews, please visit his web site at: www.ROOTforAmerica.com



Welcome to Obamaville! Obama Bankrupts America with $9.7 Trillion on Bailouts and Stimulus, as CBO Confirms the Best Choice is to do Nothing.

For weeks I've been interviewed nonstop in the media about President Obama's Economic Stimulus Plan. Again and again, even conservative hosts said to me, “Well we have to do something. What would you do?” My answer is that sometimes the best choice is to do nothing. The response from talk show hosts and experts was always the same, “Huh? Are you mad? Do nothing?”

Well sometimes no decision is better than a rush-to-judgment. Sometimes “do no harm” is more important (and more successful) than “do something at all costs.” Shouldn't we have learned that lesson from our decision to invade Iraq to stop Saddam Hussein from using his Weapons of Mass Destruction (that never existed)? Why rush our decisions? Why rush multi-billion or multi-trillion dollar decisions that could make or break our entire American economy? Why not step back, breathe deep, listen to economists on both sides of the argument and slowly, deliberately make decisions after months of deliberations and debate.

Didn't we already rush a trillion dollar decision only a few months ago with the bailout? Did that work out well? The bailout can only be described as a disaster. Didn't we hear the same arguments from politicians? That “without the bailout the economy will crater?” Well we rushed to judgment with the bailout because of the hysteria. The result- we've wasted trillions of taxpayer dollars, dramatically increased our deficit and national debt, damaged (if not destroyed) capitalism and free markets, and the result is…NOTHING. The bailouts have not improved the economy, the job losses, or the credit freeze.

The bailout money has been spent (or should I say wasted); the economy is in free fall; the stock market has continued its decline; real estate values have continued to melt away; jobs are being lost by the hundreds of thousands per month; and the companies that we gave the money to, in many cases already need more money- much more. And what have these companies done with the money? Paid it out in million dollar bonuses to executives that oversaw the disaster in the first place. Bravo! Quite a job that Congress has done once again! This just proves the folly of allowing politicians to control our lives; confiscate our money; transfer money from one group to another (a surefire conflict of interest); or make decisions on our behalf.

This bailout travesty proves the accuracy of what my friends at the Congressional Effect Fund have found. They have studied the effects of Congress on our economy for almost 50 years now. They have proven that whenever Congress is in session for the past half century, the stock market is up 1.7%. When Congress is in recess (NOT in session) the U.S. stock market is up 17.6%. Do you get it? Politicians do damage to our economy every time they open their mouths…every time they make a decision…every time they pass a bill. It turns out that doing NOTHING is in fact preferable to allowing politicians provide a solution. If only politicians took a Hippocratic oath- ABOVE ALL ELSE, DO NO HARM. Based on historical data, this would mean doing absolutely nothing.

Well occasionally even I need a little positive reinforcement. I got it on Friday from the CBO (Congressional Budget Office). The CBO is made up of economists, math whiz kids, and policy wonks that understand numbers like no one else on the planet. Unlike politicians, the CBO simply reports the facts- without lies, distortion, cherry-picking stats to support conclusions, hype, promotion or propaganda in order to sell something to the American people. The CBO just does the math and reports the facts. This must scare the heck out of politicians like Obama and his team of spend-a-holics.

The CBO reported on Friday that my gut instincts were right all along. The CBO's non-partisan numbers prove that President Obama's economic stimulus package will do no good…and actually cause more harm than if we did absolutely nothing. The CBO reports that the stimulus bills now before the House and Senate might provide a small amount of short-term economic uptick, and add a few jobs, but by 2011 the effects would be nil. Yet the damage is long lasting- the CBO reports that this new trillion dollars in spending will dangerously increase debt to the point where it will lead to a LOWER GDP (Gross Domestic Product) over the next decade than if the government did nothing. The CBO further reported that the real cost of this bill is hidden- because the interest or “service” on the debt will add hundreds of millions, if not billions, to the true cost. Further, in the long run, all this government borrowing and spending will cost the private sector billions of dollars in available capital- thereby killing jobs and damaging GDP.

This is exactly what I've been saying and arguing for weeks on FOX News and hundreds of national and local radio stations across the USA. Perhaps we should put a common-sense S.O.B. (son of a butcher), small businessman, and citizen politician in charge of the economy. It could not be worse than the fools (and tax cheats) currently in charge.

But even the straight-talking CBO left out an important part of the picture: INFLATION. The Fed has had the printing presses working overtime since Fall to print all the money to pay for all these bailouts and handouts. The result will be catastrophic double-digit inflation within two years. Once again government, just like under FDR, has found a way to make things worse and extend the economic crisis, and turn a deep recession into a full-scale depression. Perhaps even the CBO didn't have the heart to pass along this much bad news all at once.

FDR's toxic solution was more government intervention; more spending; more debt; more taxes; and more laws hurting the private sector while strengthening labor unions. Obama's solution is exactly the same. With his trillion dollar stimulus plan (I call it The Obama Socialist Agenda”), Obama will hire hundreds of thousands of new federal employees- all members of government employee unions; hire at least 100,000 new teachers- all members of teachers unions; pass Card Check legislation making it easier for private sector employees to be intimidated and coerced into unionizing; and handout $200 billion dollars of stimulus funding to states- to keep millions of state and local government employee union members from being fired, downsized or having salaries and pensions reduced. All of this will insure that Democrats remain the majority party for years to come. But as far as helping the American economy…

This is all economic suicide for America. It will turn a deep recession into a long depression- just as FDR did in the 1930's. Do you know how we got out of the Great Depression? Only World War II ended a more than decade-long depression (1929-1940). By the way, for those who have forgotten history, unemployment rates were in the teens as late as the 1940's- almost as high as when FDR took over the Presidency from Hoover.

But the worst part of Obama's socialist stimulus giveaway is being ignored by the biased-liberal media. All of these government union jobs being proposed by Obama will NEVER go away. The economic stimulus will only pay for them for 2 years. After that, the stimulus money is gone- but we still have a huge bill left over to pay for these bloated government employee salaries, pensions, and health care benefits for LIFE. As of now- before any new government jobs are created- USA Today recently reported that the federal government retirement system has an unfunded liability of $5.3 trillion- including $1.2 trillion for retiree health benefits. This is just the UNFUNDED portion. Does anyone understand the “Perfect Storm” of debt headed straight for taxpayers? Now Obama will hire hundreds of thousands of additional government employees- who will all require salaries for the next 25 years; then pensions and medical care for another 25 years after they retire. America will be buried under debt for decades to come. The only solution will be 80% (or higher) tax rates on our children or grandchildren. That will leave them broke, desperate, fearful and beholden to government for survival- making them prime candidates to support bigger government and vote Democratic.

The short-term results of all this spending? If not the kind of disaster we experienced during the Great Depression, we can certainly expect the kind of misery we experienced under President Jimmy Carter- sky-high interest rates, sky-high inflation, and dramatically higher taxes on the very people who could get us out of this depression- business owners, job creators and high income taxpayers. Welcome to Obamaville.


Wayne Allyn Root was the 2008 Libertarian Vice Presidential candidate. His new book will be released by John Wiley & Sons this Spring entitled, “The Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gambling & Tax Cuts.” The book is available for pre-sale at Amazon.com. Wayne also happens to be Barack Obama's college classmate (Columbia University Class of '83). For more of Wayne's views, commentaries, or to watch his many media interviews, please visit his web site at: www.ROOTforAmerica.com