{"id":32875,"date":"2009-07-03T01:01:01","date_gmt":"2011-05-19T02:10:35","guid":{"rendered":""},"modified":"2011-05-19T02:10:35","modified_gmt":"2011-05-19T02:10:35","slug":"america_needs_to_stand_up_to_this_schoolyard_bully_s_failed_agenda4","status":"publish","type":"post","link":"https:\/\/www.rushlimbaugh.com\/daily\/2009\/07\/03\/america_needs_to_stand_up_to_this_schoolyard_bully_s_failed_agenda4\/","title":{"rendered":"America Needs to Stand Up to This Schoolyard Bully\u2019s Failed Agenda"},"content":{"rendered":"
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RUSH: We always try to go to the phones earlier than normal today. Normally we don\u2019t get to the phones \u2019til the second hour of this program, but on Friday — since we\u2019re urging people, inviting them to call and telling them the show is theirs, the content\u2019s theirs when we go to the phones — we try to go earlier, and I\u2019m going to do that today. We\u2019re gonna start with Edgar in Atlanta. It\u2019s great to have you with us, Edgar. Hello.<\/p>\n

CALLER: Hi, Rush. Back in January, you said you were going to let us know when it\u2019s time to panic. And I don\u2019t want to wait \u2019til I hear you broadcasting from New Zealand. I feel…<\/p>\n

RUSH: (laughing)<\/p>\n

CALLER: I feel the time is here, and I\u2019m wondering: At what point does secession become a real option? Because I feel like the left and the right in this country, we\u2019re just irreconcilable.<\/p>\n

RUSH: Wait a second. Secession? Who seceding from where?<\/p>\n

CALLER: I\u2019m ready to go to whatever state wants to secede first, Rush.<\/p>\n

RUSH: Well, that\u2019s Texas. They\u2019re the only one talking about it.<\/p>\n

CALLER: Then let it be Texas.<\/p>\n

RUSH: And, by the way, Texas is in the best economic shape of any state in the country in terms of job losses and budget deficits and so forth — and there\u2019s no state income tax in Texas.<\/p>\n

CALLER: Well, in my mind, Rush, we\u2019ve separated into a country of a host organism and parasites, and we don\u2019t need them. We don\u2019t need the left, Rush, but they need us because without us they\u2019re broke. And I think if Texas seceded, us productive people and businesses would flock there, and eventually the blue states of America would collapse.<\/p>\n

RUSH: Well, we\u2019ve gotta face reality, Edgar. Nobody is going to secede from anything. I mean, Governor Perry in Texas talked about it and things blew up. I mean, there might be some people in Texas that wouldn\u2019t mind it but it isn\u2019t going to happen. I want to focus on something that you said that you just glanced over. You just sort of threw it away out there.<\/p>\n

CALLER: Okay.<\/p>\n

RUSH: You said that the left and right are ‘irreconcilable.\u2019<\/p>\n

CALLER: I believe that.<\/p>\n

RUSH: I do, too! I\u2019ve always said that. That\u2019s why I\u2019m against bipartisanship! That\u2019s why I\u2019m against compromise. That\u2019s why the only thing that matters is beating them.<\/p>\n

CALLER: Well, maybe what we need is a two-state solution. I think they\u2019ll collapse under their own weight eventually without us.<\/p>\n

RUSH: Well, what he\u2019s saying here is that without the productive class in this country to tax, that the left has no money. Wrong. They\u2019re printing it now. We don\u2019t have the money now. Obama is purposely destroying the private sector by printing money. This year alone we\u2019re going to be over budget by $2.2 trillion. We don\u2019t have money that he\u2019s spending now. The money that he is spending technically hasn\u2019t even been earned yet. The money he\u2019s spending now will be earned by people\u2019s children and grandchildren and great-grandchildren, but he\u2019s printing it now, spending it now. You know, every time I have a show like I had yesterday, ladies and gentlemen, where I unabashedly say that President Obama is seeking to destroy the US economy, I get lots of e-mail. ‘Rush, do you really believe that?\u2019 That\u2019s so hard for people to grasp. It\u2019s so difficult for people to put their arms around, a US president that wants to destroy the economy. <\/p>\n

Look, what is the centerpiece of Barack Obama\u2019s agenda to accomplish what he wants? It is health care. Nationalized, single-payer, public-option health care. Because that, as Mona Charen said in a column, is ball game. If that happens, every aspect of life is subject to regulation by the federal government on the basis of saving money for health care costs. That will be what they say. The objective is just to simply exert power and the control over people. And once health care is the single responsibility of the government — not you, but the single responsibility of the government — they will have infinite power. We aren\u2019t even able to define it now, but infinite power to regulate the way individuals live and work and play. <\/p>\n

There\u2019s no end to this. Now, if that\u2019s your centerpiece, and if you need that to accomplish your ultimate objective (which is the expansion of federal government, a totalitarian state, or however you want to characterize it) wouldn\u2019t you need as many people in economic pain as possible? Health care insurance, as we all know, is not ‘portable.\u2019 If your health care insurance is provided by your employer and you happen to lose your job, you don\u2019t keep your health care insurance because you\u2019re not paying for it, he is. Now, when you lose your job, you keep your car insurance because you\u2019re paying for that, but you don\u2019t keep your health insurance. So this whole notion of portability has been a gigantic argument with the leftists demanding portability, meaning you don\u2019t ever lose your health insurance.<\/p>\n

Well, okay. Who\u2019s going to pay it if you get canned or if you quit and your employer is paying your health care insurance or most of it? Who\u2019s going to pick up the tab? That\u2019s where Obama wants to step in, in one of just many areas. Now, if the central objective is health care — because getting nationalized health care permits you this cradle-to-grave, Nanny State control over individuals and every aspect of their lives — if you really want it, wouldn\u2019t it really be easier to make sure that more and more people have lost theirs? They know that they have drummed up in people\u2019s heads the importance of health care. People are more frightened of going a day without health care in this country than they are of getting on an airplane with one wing. <\/p>\n

The psychology has succeeded. People are scared to death to go one day without health care. You get canned — and right now, over two million people have lost her jobs since Obama was elected, and there\u2019s not one policy prescription he has proposed to reduce that, to reverse it. Everything he\u2019s doing is going to encourage more unemployment. Because he wants it, because the more people who are unemployed with the fear of health care, the more they\u2019re going to demand somebody ‘do something\u2019 to restore their health care. He\u2019s got all the retailers and the doctors joining up and the hospitals. That\u2019s what I mean.<\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: It\u2019s not just health care that Obama seeks — and that\u2019s the biggie, because that encompasses every aspect of our lives. Once the federal government is in charge of that there\u2019s no rolling that back. Well, not instantly. Too many people will have their lives personally intertwined, changed with government. It\u2019s gotta be stopped. But it\u2019s not just health care. If you look at the economy in general, we\u2019ve been trying for nine months now the political solution: stimulate, Keynesian economics, spend, spend, spend, spend. Stimulate, stimulate, stimulate! In fact, if I may be so bold and so honest, the stimulus package is not even that. It was advertised and promoted as shovel-ready. ‘We\u2019re going to build schools, Mr. Limbaugh, and we\u2019re going to build roads and bridges and we\u2019re going to rebuild the infrastructure.\u2019 None of that\u2019s happening. I think 6% of the stimulus has been spent, and now they\u2019re talking about a second one? <\/p>\n

The purpose of that stimulus was not to create jobs. That\u2019s not what government does. The only way government does that is when they hire people, and that\u2019s not what this was about, as far as the people were told. The people were told that this is going to put them back at work. There\u2019s a chart I saw today, and I\u2019m going to try to describe this. As you know, describing charts on radio is a challenge that very few broadcast professionals would ever take. I, my friends, will take it because I am a great chart reader — and I also happen to tell a great story. This chart shows since I think World War II, maybe it\u2019s World War I, the beginning of every recession in terms of job losses. And each one of these recessions has a color-coded line so you can follow each year or each recession that happened. And the chart is one of these left-to-right charts and it\u2019s a giant V-chart except that the V is a different size for every recession. Some recessions lasted longer than others and some were deeper. But at every point in this chart there is an end to the falling unemployment and a dramatic uptick to complete the right side of the V as jobs are gained.<\/line><\/a> <\/line><\/p>\n

Now, you have to know history, \u2019cause the chart does not explain this. You have to know history to be able to determine, ‘Well, what\u2019s the magic?\u2019 What happened here that reversed the left side of the V, which is unemployment going down and all of a sudden it bottoms out (and peaks) and starts going up — and it\u2019s dramatic. You look at the 1981-82 recession, and you can see when we came out of it, and you know why. You know what brought us out of it. And practically every other one of these recessions, if you just know history, you know what brought us out of it: incentives in the private sector led to people hiring more people to work and more tax revenues and all that. The recession that we are currently in is a red line, and there is no V yet. It is just almost a direct plunge. You ought to see this. It\u2019s a direct plunge, almost like that Air France plane took into the Atlantic, and there\u2019s no end in sight for this. All these other recessions you can see the V, the right-hand side of the V going up where employment starts to pick up, but there\u2019s no end in sight for this, and it\u2019s deeper. This V, the left side of this recession V… I ought to double-check. I think it\u2019s deeper than any of the others on the chart or very close to it. <\/p>\n

Now, obviously because of the way this chart is, this chart charts every recovery from a recession in terms of employment. There is none yet in this recession. So that line is a stand alone. It\u2019s by itself. It\u2019s bright red. So you ask yourself, ‘What\u2019s going to be the magic that starts people back to work?\u2019 I\u2019m telling you there isn\u2019t one Obama or Democrat Party policy that\u2019s going to cause that to happen. The Obama policies are going to keep that line plunging, keep the left side of the V down, keep employment going down. We\u2019re losing jobs. There\u2019s not one thing being proposed even! There\u2019s not one thing being proposed. The list of tax increases Obama is talking about will choke off any job creation. The unknown in the future is: ‘Are we actually gonna get this cap-and-trade fiasco? Are we actually going to get health care?\u2019 Those two great unknowns have paralyzed business. You can\u2019t make long-term plans unless you know what the game\u2019s going to be and what the rules are, and right now nobody knows the rules. <\/p>\n

If you\u2019re smart and running a small business, your effort now is not to hire workers; it\u2019s to stay in business. And you\u2019re looking down the road and saying, ‘Okay, what happens to me and my business if cap and trade\u2019s passed? What happens to me if health care passes?\u2019 And, by evidence of what\u2019s happened the last nine months, you have to say things are going to get even worse because the government sector is going to get bigger, and to get bigger the government sector has to deplete the private sector. The government can\u2019t produce anything. It can print, but it can\u2019t produce anything. Not without the private sector working — and that\u2019s being dwindled away. It\u2019s being attacked. It\u2019s under attack daily by this administration. There\u2019s no end in sight to it, and there\u2019s not one policy that they\u2019re prepared to enact that would bring it about. While they talk about bringing it about — they talk a good game, they talk about restoring jobs and all that — it\u2019s not happening. The talk is meaningless because it\u2019s deflective. <\/p>\n

So businesses, they\u2019re not poised to start hiring anybody here. In the unemployment numbers, it\u2019s not just that they\u2019re worse in some cases than ever. It\u2019s not just that we\u2019re at 9.5% unemployment. It\u2019s not just that we\u2019ve lost over two million jobs since January. We\u2019re also working fewer hours a week. The average work week now is 33 hours. The Drive-Bys are not reporting this. I mean, you have to dig deep to find it. The average work week is 40 hours and people are working 33. What does that mean? Well, it means that a lot more people have been laid off, fired, and hired back as part-timers, or they\u2019re being furloughed. But regardless the reason, when people are working fewer hours, there is, by definition, less productivity. Manufacturing is way down — and, yes, we still do manufacture in this country. <\/p>\n

I mentioned this website earlier. There\u2019s a story here by Richard Bernstein at BusinessInsider.com, Why is weak employment a surprise? He\u2019s asked the question here that we all ask. Every time the State-Run Media reports economic numbers they\u2019re always surprised. It was ‘unexpectedly high\u2019 or ‘unexpectedly low,\u2019 but the experts are always just bamboozled by it. So he says: ‘Today\u2019s weaker-than-expected employment report sent the financial and commodities markets reeling. But why was this report such a significant surprise to anyone? I\u2019m not particularly bearish or bullish with respect to stocks right now, but I am a pragmatist. The fact is that the leading indicators of employment have been weakening, yet the consensus has been ready to reap the fruits of the so-called ‘green shoots.” There aren\u2019t any green shoots! People are responding to Obama\u2019s words. ‘We\u2019re about to come back,\u2019 and, you know, ‘We\u2019ve bottomed out,\u2019 or, ‘Our backs are no longer against the wall,\u2019 but the job losses keep coming. <\/p>\n

‘First, let\u2019s set the record straight. Employment is NOT a lagging indicator. Some indicators of employment, like jobless claims and the length of the work week, are actually official leading indicators of the economy. Payroll employment is a coincident indicator. It is actually somewhat odd that investors are currently paying so much attention to true lagging indicators related to inflation. Wage pressures, and not commodity prices, are the true catalysts for inflation. Wage increases, abnormal credit creation, and excess demand relative to supply come first, and inflation comes second. There are no wage pressures, there\u2019s not a lot of credit being created, and output gaps abound, so why is everyone focused on lagging inflation indicators?\u2019<\/line> <\/line>Well, the answer is because everybody wants to try to convince the American people it\u2019s not as bad as it is, and it\u2019s going to get better real soon, but it\u2019s not \u2019cause there\u2019s nothing in place to get it better. The things that are in place are obstacles to economic improvement, and they\u2019ve been purposely put there. ‘Second, the monthly payroll report, like the one issued today, is full of largely coincident data. However, it does have one piece of leading data: the length of the work week. This is generally considered a leading indicator because employers will tend to adjust the number of hours their employees work before hiring or firing them. For example, it would be normal for companies to begin to pay existing workers overtime before they hire additional workers because of the uncertainty related to the initial upturn in a production or service cycle.\u2019 People may not believe the first indication of economic return, so rather go out and hire new people, you just take your existing staff and pay them overtime. <\/line><\/p>\n

‘However, commentators rarely highlight the length of the work week when discussing the monthly employment report. What has been happening to the length of the work week? It has hit all-time lows the last two months. That\u2019s right. The only official leading indicator in the employment report has hit all-time lows the last two months. Who has reported that? No one. … Could it be that momentum, rather than fundamentals, remains the defining aspect to most investment strategies? Prudent investors should be watching sound leading indicators, and not the markets\u2019 short-term momentum for clues as to whether the ‘green shoots\u2019 will sprout flowers or weeds.\u2019 <\/p>\n

Let me get something at the bottom of the stack. I put at the bottom of the stack. I was going to gloss over it but now I\u2019m not. It\u2019s a CNBC.com post from yesterday. ‘The financial system is crashing and action must be taken by the US government to convert debt into equity to produce a more stable environment, Nassim Taleb, author of The Black Swan, told CNBC Thursday. ‘You may have green shoots, whatever you want to call them, you may have temporary relief, but you are still in a world that\u2019s breaking,\u2019 Taleb said on ‘Squawk Box.\u2019 [sic] Anything that\u2019s fragile like the financial system will eventually crash, he said. ‘We\u2019re in the middle of a crash,\u2019 Taleb said. ‘So if I\u2019m going to forecast something, it is that it\u2019s going to get worse, not better.\u2019 The government needs to deleverage debt and not try stimulus packages that will inflate assets, he said.\u2019<\/p>\n

You know, when I read these guys say, ‘The governments needs to do this, and the government needs to do that,\u2019 it\u2019s as though these people in government are making honest mistakes. Nobody\u2019s this stupid in government to make these honest mistakes! This has been tried countless times in the past, the world over. It doesn\u2019t work unless your objective is something else. If your objective is to wreck the economy — to cause more chaos, more unemployment, create greater dependence on government — then this is a championship policy. But it is not a championship policy to revive the US economy, and everybody involved in this knows it. This is why some of these people involved in this need to be seriously questioned about their intentions for this country. This is not merely an economic mistake. This is not a divergent opinion. This is not left economics versus right economics. Economics is economics. It\u2019s science. There are left-right disagreements in it obviously, but what Obama is doing here, there is nobody that can say, ‘This is an honest attempt at really doing what they think is best.\u2019 Maybe so, but for them, not you and not us!<\/p>\n

So when I read these guys, ‘The government needs to deleverage debt.\u2019 The government\u2019s doing purposely what it intends to do! It intends stimulus packages that will inflate assets and not create jobs. This guy said, ‘What makes me very pessimistic in not seeing any leadership or awareness on parts of government on what has to be done,\u2019 as though they\u2019re just ignorant and making mistakes. People don\u2019t have the guts to say what\u2019s really happening here — and this is purposeful. His solution, this debt business of, ‘Look, we\u2019re not helping anybody when we foreclose on them. We\u2019ve gotta deleverage some of this debt. Rather than foreclose on people, the banks,\u2019 I\u2019m summarizing what he says, ‘need to lower the monthly payment and take an equity stake in the house,\u2019which, of course, they already have. The mortgage holder already has an equity stake. ‘But get rid of some of the debt and turn the debt into equity,\u2019 that\u2019s what he\u2019s saying,\u2019 and that will help stave off the financial crisis.\u2019<\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: Here\u2019s the guy from CNBC\u2019s Squawk on the Street yesterday. It\u2019s Universa Investments principal and author of The Black Swan, Nassim Taleb. The co-host, Carl Quintanilla, is talking to him. Here, in his own words, is what I just quoted him as saying.<\/p>\n

TALEB: Anything that\u2019s fragile eventually will crash. And the system is very fragile. It is crashing. We\u2019re in the middle of a crash. So if I was going to forecast something, I know it\u2019s going to get worse, not better. The monkey on our back is the debt. Okay, we have huge amount of debt. Instead of the government doing that, now they\u2019re trying to look at stimulus plans and things that may inflate assets. And that may run out of control. So instead of deflating debt, they\u2019re thinking of inflating assets or — actually, they don\u2019t even know what they\u2019re doing — <\/p>\n

RUSH: They do.<\/p>\n

TALEB: — because they\u2019re doing a lot of contradictory things. So this is what makes me very pessimistic, not to see any leadership or any awareness on the part of the government —<\/p>\n

RUSH: Wait a second. This should have ended.<\/p>\n

TALEB: — of what needs to be done, which is to deleverage by, I don\u2019t know, somewhere between 40 and $70 trillion worldwide.<\/p>\n

RUSH: They didn\u2019t give me a full transcript. I thought it was over 15 seconds. I\u2019m sorry for talking over that, folks. Anyway, when he says they ‘don\u2019t even know what they\u2019re doing\u2019 and they\u2019re doing ‘a lot of contradictory things.\u2019 They do know what they\u2019re doing. Obama knows what he\u2019s doing. Obama may not be a macroeconomist. I mean, he may not be up there plotting and planning every day\u2019s economic machinations, but he\u2019s got a vision. His vision is emperor. His vision is all-empowered leader for life. The government has got to take over and correct the injustices of this country. Wealth and profit are injustices. They are immoral, as far as Obama looks at it. The more wealth, the more prosperity he can wipe out, he thinks he\u2019s doing a morally good thing — and I\u2019m giving him the benefit of the doubt saying that. <\/p>\n

He\u2019s grown up surrounded by people who despise prosperity and wealth because they believe it\u2019s the epitome of inequality, and they also believe that prosperity and wealth exist because of thievery or other means by which ill-gotten gains produce the wealth and the prosperity. It\u2019s always happening on the backs of Obama\u2019s type of people, and so he\u2019s got to make the world right. He\u2019s gotta make the country right and he\u2019s gotta cut it down to size. Now, he may not be sitting there every day plotting virtually every aspect of this, but there\u2019s an overall vision — and it\u2019s happening. They know what they\u2019re doing. They\u2019re too stupid to not know what they\u2019re doing. That\u2019s what makes this scary. And rather than these CEOs bending over backwards and joining his team out of fear, they need to stand up and say, ‘Stop! You\u2019re not going to bully us anymore into doing things that are not helpful to the country.\u2019<\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: I can\u2019t stop laughing here, folks, and you\u2019re going to hear it again very soon.<\/a> Colin Powell is a guest again on CNN this coming Sunday. All of a sudden he can\u2019t believe the amount of debt and spending that\u2019s going on in America. Ha! (laughing) <\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: Last hour I spoke of this chart — this employment, unemployment chart — of every recession since World War II to the present. Remember when I was talking about the V charts? They\u2019re not actually all V\u2019s. There are some U\u2019s. It\u2019s not a dramatic increase when the uptick in jobs happens. Anyway, I posted that chart at RushLimbaugh.com. You can see it now. It\u2019s from BusinessInsider.com, and the thing to look at is every recession has an end, and you can clearly see it on this chart, in terms of we\u2019re talking employment versus unemployment. When the unemployment uptick begins it\u2019s dramatic, and there\u2019s a reason that it happens in each case if you know history. Then you\u2019ll find the color of the line for this recession is bright red and it\u2019s still plunging. There\u2019s no hint of any kind of an uptick whatsoever. So it\u2019s there for one and all to see, even though you probably don\u2019t need to see it since I did superb job of describing it to you, but I\u2019m sure that when you look at it, you\u2019ll say, ‘It\u2019s just exactly like Rush talked about,\u2019 which is one of many elements of the magic part of the content of this program.<\/p>\n","protected":false},"excerpt":{"rendered":"

RUSH: We always try to go to the phones earlier than normal today. Normally we don\u2019t get to the phones \u2019til the second hour of this program, but on Friday — since we\u2019re urging people, inviting them to call and telling them the show is theirs, the content\u2019s theirs when we go to the phones […]<\/p>\n","protected":false},"author":25,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","ngg_post_thumbnail":0},"categories":[],"tags":[],"yoast_head":"\nAmerica Needs to Stand Up to This Schoolyard Bully's Failed Agenda - The Rush Limbaugh Show<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.rushlimbaugh.com\/daily\/2009\/07\/03\/america_needs_to_stand_up_to_this_schoolyard_bully_s_failed_agenda4\/\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:title\" content=\"America Needs to Stand Up to This Schoolyard Bully's Failed Agenda - The Rush Limbaugh Show\" \/>\n<meta name=\"twitter:description\" content=\"RUSH: We always try to go to the phones earlier than normal today. 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