The Best Grilling Of Bernanke Came From Senator Elizabeth Warren And Republicans Should Be Ashamed

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I agree with Republican Senator Corker that inflation is a danger in the future. But inflation doesn’t win the hearts and minds of most Americans right now. No one’s worried about it except economists and economics geeks.

The death of the community and regional bank, however, does bother people. As does the printing of money that goes straight into the 5 biggest banks in history . . . and stays there.

The US Government bailed out those 5 “too big to fail” banks in 2008 and it’s been propping them up with our money ever since. That was one of the driving forces behind the birth of the Tea Party movement in February 2009.

Four years later, the Fed, Congress, and the White House still support banks whose managers cannot operate at a profit. And the only Senator to point out the lunacy of this practice is a liberal Democrat from Massachusetts?

I realize that the Democrats are far worse practitioners of crony capitalism than the Republicans. That doesn’t excuse the GOP.

If the Republicans want people to see them as in-touch with the mood of the country, they should attack crony capitalism relentlessly. Republicans must advance sound macro economics, but they must also stress cases that win over voters. Future inflation won’t do that, but crony capitalism will.

By failing to gage what messages will work, the GOP is in the odd position of standing for nothing while being perceived as too extreme.

Republicans Can’t Just Rage Against The Fiscal Cliff Machine

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Encouraging Boehner to shut down the government is the surest way to end conservatism as a practical political alternative.

The GOP has no leverage in budget negotiations, and conservative denial won’t change that.

Use Game Theory

As I wrote on November 12, fighting Obama – voting down a budget in the House – results in the GOP’s worst possible outcome: total blame for anything that goes wrong and no credit for anything that goes right.

Obama’s not an idiot, and neither are the media. That’s why Obama proposed tax increases, executive power increases, and spending increases far beyond those previously proposed.

Obama holds all the cards.

Rush Limbaugh, Newt Gingrich, Charles Krauthammer, Mark Lewis, and Ramesh Ponnuru all see it.

RushRepublicans should walk away from negotiations

NewtRepublicans should stop negotiating

The Hammer: Republicans should simply walk away

LewisRepublicans Are So Screwed

Ponnuru: No win situation

The cliché “elections have consequences” hasn’t gotten through some people’s heads. It will.

Expect Obama to get almost everything he demanded.

  • $1.6 Trillion tax hike—the largest in world history
  • Vast new powers for the president, including the power to raise the debt ceiling (or end the ceiling)
  • Big increases in social and construction spending
  • Effective elimination of the principle that the House originates tax and spend bills

In other words, it’s over. The Congress is going the way of the Reichstag—a formalized debate society that endorses the president’s dictates.

Fixing a problem requires, first, an honest understanding of the real situation. Passing a Republican budget in the House might make YOU feel good (“Yeah! Boehner. Way to stick it to the man!”), but it won’t change what happens:

  • Senate blocks
  • Obama goes on tour of 5 states hurt most by the fiscal cliff
  • Media runs 24/7 stories on the mounting “Republican Body Count” of Americans dying because Boehner drove the government train off the fiscal cliff
  • Panicked Republicans call on Boehner to pass the President’s tax cuts
  • House Republicans cave
  • Obama has a beer party
  • Obama’s power becomes effectively absolute.

If that’s what you want, then throw your temper tantrum and enjoy the consequences.

There Is Only One Option For House Republicans

Here’s the best strategy for Boehner to follow:

  • Walk away from the negotiations
  • Tell the president the House GOP will vote “Present”
  • Spend $2 billion over 2 years on marketing, networking, and advertising the dangers of doing what Obama just did
  • Focus on 2014

My solution might suck, but it’s what we, the people, voted for.

P.S. If you meet a “constitutionalist” or “conservative” who voted 3rd party, thank him for the worst-case scenario playing out before our eyes