Friday, October 19, 2012

Obama, Socialism, Romney and Bain - the basic truths

First lets get one thing straight, we may disagree strongly with his policies and programs but Barack Obama is not a closet 'commie' or a Marxist. All his speech and action, as well as his educational/formative years, point to his fitting the broad label of 'Social Democrat'He is not about to start nationalizing anything, whether financial trading or goods and services.
We see clearly -if we actually bother looking- that his MO will be central control through mandate and regulation. See Obamacare.

I think a case COULD  be made that it would be better for the country's economic health if he did nationalize all the country's raw resources. 
Then those revenues could be used to fund his social programs.  Seriously.. if I were him, that's what I would do.  Of course once they saw the results, not only would the landholders be howling but environmentalists, as well.  The US is freaking resource rich.. still!  And the Europeans are looking on with envy as the US is starting to regain the mantle, Energy Capitol of the World. 
- 'Peak Resource' alarmists are idiots, they NEVER consider technical solutions.. we are 'this close' to major breakthroughs in technologies that will not only reduce energy consumption per capita, but make it possible -for example- to convert coal into clean transport fuels.
- once the CO2 scam is fully exposed, that is.
I'm speaking in generalities, of course. The relative cost of heating or cooling your house isnt going to decrease, nationally. Nor is cost per mile of travel. 
Current indications of the EPA strangling resource recovery are transient, we hope. It wouldnt be hard for a 'reform from within' to reverse that narrative if revenue, now going to private leaseholders, from all mines, wells, and pipelines went straight into the Treasury.  See Alaska Oil.
 - Note: Obama saying that national lands oil leases were pulled, because the holders were just sitting on them is basically correct.  The question is if they are ever going to be re-sold.

Seriously, it would be easy to justify that 'Resource Grab' in the long run despite the near term upheavals. But it would take a 'centrist' doing it.. sort of like Nixon to China.  We bitch and moan about China now but you can't dispute that the world was changed for the better by pulling China into the global market economy.
- The global political 'Sphere of Influence' is a different matter, but once again it will be true that you don't go to war with your trading partners.  The only way of escalating to military conflict is if that trade is impeded or shut off.  Like huge tariffs, for example.

Don't look now but that energy resource grabber COULD be Mitt Romney.  Given promises made, and the difficulty in resolving our ballooned national debt, it's not unfeasible to assume the best of worse choices.

All that said.. let's address the Bain Capital bogeyman.
Charge: Bain snaps up perfectly good US companies, fires workers, cheats retirees on pension sucks out all the equity, and sends the work to China.


That's ridiculous and those making the charges know it if they even bother looking. Bain
Capital bought companies that were in deep trouble. There may be a few individual cases of Bain 'forcing the events' but, overall, Bain has saved and created many more jobs than if they -or any other capital equity group- hadn't intervened.  

How do you find out.. and how do you know it's true?

Simple.. just look at Bain Capital's track record as if you were an investor.  You want to look at their corporate buys and interventions, the profit from them and how successful were the transactions over time.
 Forbes -The Truth About Bain: Inside The House That Mitt Built

And especially look at those brands/businesses since Romney's not in charge. The focus didn't change because he was no longer there.  How many of those jobs could be shifted to China?

Damn few!

Added:  In the interest of full disclosure, Bain owns Sensata corp in Illinois which is closing down plant and 179 jobs.  which will be moved to China.
I researched the corporate tax rate in Illinois and found that there is no disclosure law in that state.  There should be if state leaders are truly wishing to be transparent.  Caterpillar and other large corporations have threatened to leave the state without some sort of relief. Which is a sticky wicket as IL wishes to bolster their revenue shortfalls with Corp taxes.
related:

CNN: Illinois tax hikes will hurt companies



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