Takuan Seijo (presumably using an alternative reading of the name of Takuan Soho as his pen name), at Brussels Journal, finding himself inflamed by haute bourgeois Boston-area friends responding to sneezes with the blessing “Barack you!”, delivers the sort of brilliant, linguistically prismatic rant that only well-educated Russians can produce.

He is pessimistic to a Spenglerian degree on the fate of the West, which he finds incapable of self defense either politically or culturally against the moral jui jitsu of ressentiment employed by the left to justify the erection of the socialist Leviathan.

It is fun to ridicule the sheer lunacy of the Body Snatchers. But in fact, the yin legumes (feminized contemporary pod people -DZ) are part of a motivated and cunning coalition phalanx. That phalanx has a masterly grasp of tactics, the morals of a wolverine and the size of Leviathan.

The Looter Coalition can run circles around its opposition because of its multiple, interlocking rings. The opposition is comprised of single-issue groups: counter-jihad, anti-socialists, traditionalists, anti-secularists etc. This is like Bruce Lee in Enter the Dragon trying to beat the evil Han in the hall of mirrors. Until the mirrors are broken, the underlying unity of the foe cannot be seen. The foe therefore cannot be defeated.

Those who are counter-jihad are pummeled not by jihadis but by socialists. Those who are anti-socialist are pummeled not by socialists but by immigrant demographics. Those who are traditionalists are pummeled not by nihilists but by global capitalists. Those who are social conservatives are pummeled not by libertines but by the very symbol of rectitude, the Law. Those who are declining fertility activists will be defeated even if they succeed, for any number of Western children would still be compelled to spend 12 – 18 years turning into Pods in the Snatchers’ zombie farms. It’s in light of all this that I see the tactical retreat of Exodus.

When Reality becomes taboo, and fiction becomes an official totem, civilization has driven itself into a swamp. From then on, it’s the flotation coefficient of the lying totem versus the suction force of Reality’s swamp. That is a contest with only one possible outcome, as gravity and entropy work for the swamp.

Read the whole thing.

Karl Rove notes that now that he’s in office Americans are getting basically the opposite of what Barack Obama promised during the campaign. Obama has continued some of his campaign rhetoric, but has again and again contradicted himself by continuing Bush Administration national security policies.

Barack Obama inherited a set of national-security policies that he rejected during the campaign but now embraces as president. This is a stunning and welcome about-face.

For example, President Obama kept George W. Bush’s military tribunals for terror detainees after calling them an “enormous failure” and a “legal black hole.” His campaign claimed last summer that “court systems . . . are capable of convicting terrorists.” Upon entering office, he found out they aren’t.

He insisted in an interview with NBC in 2007 that Congress mandate “consequences” for “a failure to meet various benchmarks and milestones” on aid to Iraq. Earlier this month he fought off legislatively mandated benchmarks in the $97 billion funding bill for Iraq and Afghanistan.

Mr. Obama agreed on April 23 to American Civil Liberties Union demands to release investigative photos of detainee abuse. Now’s he reversed himself. Pentagon officials apparently convinced him that releasing the photos would increase the risk to U.S. troops and civilian personnel.

Throughout his presidential campaign, Mr. Obama excoriated Mr. Bush’s counterinsurgency strategy in Iraq, insisting it could not succeed. Earlier this year, facing increasing violence in Afghanistan, Mr. Obama rejected warnings of a “quagmire” and ordered more troops to that country. He isn’t calling it a “surge” but that’s what it is. He is applying in Afghanistan the counterinsurgency strategy Mr. Bush used in Iraq.

On the other hand, during the campaign, Obama promised fiscal moderation, and in that department, too, he is delivering the exact opposite of those campaign promises.

Mr. Obama campaigned on “responsible fiscal policies,” arguing in a speech on the Senate floor in 2006 that the “rising debt is a hidden domestic enemy.” In his acceptance speech at the Democratic National Convention, he pledged to “go through the federal budget line by line, eliminating programs that no longer work.” Even now, he says he’ll “cut the deficit . . . by half by the end of his first term in office” and is “rooting out waste and abuse” in the budget.

However, Mr. Obama’s fiscally conservative words are betrayed by his liberal actions. He offers an orgy of spending and a bacchanal of debt. His budget plans a 25% increase in the federal government’s share of the GDP, a doubling of the national debt in five years, and a near tripling of it in 10 years.

On health care, Mr. Obama’s election ads decried “government-run health care” as “extreme,” saying it would lead to “higher costs.” Now he is promoting a plan that would result in a de facto government-run health-care system. Even the Washington Post questions it, saying, “It is difficult to imagine . . . benefits from a government-run system.”

Making adjustments in office is one thing. Constantly governing in direct opposition to what you said as a candidate is something else. Mr. Obama’s flip-flops on national security have been wise; on the domestic front, they have been harmful.

In both cases, though, we have learned something about Mr. Obama. What animated him during the campaign is what historian Forrest McDonald once called “the projection of appealing images.” All politicians want to project an appealing image. What Mr. McDonald warned against is focusing on this so much that an appealing image “becomes a self-sustaining end unto itself.” Such an approach can work in a campaign, as Mr. Obama discovered. But it can also complicate life once elected, as he is finding out.

Mr. Obama’s appealing campaign images turned out to have been fleeting. He ran hard to the left on national security to win the nomination, only to discover the campaign commitments he made were shallow and at odds with America’s security interests.

Mr. Obama ran hard to the center on economic issues to win the general election. He has since discovered his campaign commitments were obstacles to ramming through the most ideologically liberal economic agenda since the Great Society.

Mr. Obama either had very little grasp of what governing would involve or, if he did, he used words meant to mislead the public. Neither option is particularly encouraging. America now has a president quite different from the person who advertised himself for the job last year. Over time, those things can catch up to a politician.

John Steele Gordon warns that Barack Obama’s plans for nationalized industries have plenty of precedents, all of which show that government-run business enterprises are a disaster.

The Obama administration is bent on becoming a major player in — if not taking over entirely — America’s health-care, automobile and banking industries. Before that happens, it might be a good idea to look at the government’s track record in running economic enterprises. It is terrible.

In 1913, for instance, thinking it was being overcharged by the steel companies for armor plate for warships, the federal government decided to build its own plant. It estimated that a plant with a 10,000-ton annual capacity could produce armor plate for only 70% of what the steel companies charged.

When the plant was finally finished, however — three years after World War I had ended — it was millions over budget and able to produce armor plate only at twice what the steel companies charged. It produced one batch and then shut down, never to reopen.

Or take Medicare. Other than the source of its premiums, Medicare is no different, economically, than a regular health-insurance company. But unlike, say, UnitedHealthcare, it is a bureaucracy-beclotted nightmare, riven with waste and fraud. Last year the Government Accountability Office estimated that no less than one-third of all Medicare disbursements for durable medical equipment, such as wheelchairs and hospital beds, were improper or fraudulent. Medicare was so lax in its oversight that it was approving orthopedic shoes for amputees.

These examples are not aberrations; they are typical of how governments run enterprises.

Read the whole thing.

Ilya Somin wonders when the Federation lost its freedom.

Tom Suhadolnik explains how Barack Obama is simply setting aside conventional bankruptcy law in order to nationalize the automobile industry while moving simultaneously to nationalize the financial system using existing regulatory powers combined with intimidation.

How many Americans who pulled the democrat lever last November really intended to vote for Marxism?

At the end of April the Obama administration tested its ability to take direct control of the US financial system. The test was a success. There is a revolution underway which would impress Chavez or Castro. If you were like most people, you did not realize it happened.

As the details of the GM restructuring plan emerged, on Monday, April 27th, Lawrence Kudlow was one of the first to sound the alarm as secured lenders and bond holders were being given a fraction of the amount owed to them under long established bankruptcy law.

What is going on in this country? The government is about to take over GM in a plan that completely screws private bondholders and favors the unions. Get this: The GM bondholders own $27 billion and they’re getting 10 percent of the common stock in an expected exchange. And the UAW owns $10 billion of the bonds and they’re getting 40 percent of the stock. Huh? Did I miss something here? And Uncle Sam will have a controlling share of the stock with something close to 50 percent ownership. And no bankruptcy judge. So this is a political restructuring run by the White House, not a rule-of-law bankruptcy-court reorganization. …

To understand the gravity of the events you need a basic understanding of bankruptcy laws. The pecking order of bankruptcy claims is supposed to be:

1. Debtor in Possession (DIP) financing which is loaned to the restructuring company
2. Secured Lenders – creditors whose loans are backed by assets such as real estate or equipment
3. Unsecured Lenders – creditors such as bond holders, vendors and the UAW
4. Equity Owners – shareholders

When a company files for bankruptcy the claims that are superior (represented by a lower number) in the pecking order are paid first. Claims with equal status are treated equally; those claims are almost always paid on the same pro rata basis. It is an explicit goal of our bankruptcy system is to treat all creditors equally. …

In the case of GM, the UAW and bond holders are both unsecured creditors with equal rights under bankruptcy law. As The Cleveland Plain Dealer reported Monday April 27th, interim GM CEO Fritz Henderson contends a 2007 deal between GM and the UAW gives preference to unsecured claims of the UAW. The bond holders never explicitly agreed to have their claims subordinated to the union so that contention is certainly open to debate in bankruptcy court.

Considering GM owes the UAW $20 billion (Henderson says the figure is closer to $30 billion) and bond holders $27 billion, they should receive a similar ratio of shares in the restructured GM. The deal announced by Henderson gives roughly 40% of the stock in a reorganized GM to the UAW, 50% to the government and 10% to the bond holders. The math does not make sense even if you accept Henderson’s contention that the UAW is owed $30 billion. …

The Chrysler reorganization details are more bizarre. At Chrysler the institutions owed $6.9 billion by Chrysler are secured creditors. As a matter of law, the secured claims would be superior to those of the UAW in bankruptcy court.

Putting the Chrysler deal in terms of household finances, the secured creditors would be the banks holding the mortgage and car note. Instead of the car and house going back to the bank in bankruptcy, the Chrysler deal calls for the car and house to be shared with unsecured creditors like credit card companies and the cable company. That is not how the system is supposed to work.

These bedrock principles are codified in our bankruptcy laws. …

Obama has made it clear he is willing to use his political muscle on the banks as well. …

The Obama administration will be able to make a plausible argument that nationalization of the banks was forced upon the administration by capitalism run amok. Given the type of patently absurd statements made by politicians of all stripes, this rather nuanced position will pass without a second thought.

In summary, the mechanism to nationalize the US financial system is now in place. All the levers are controlled by the executive branch. Here how it works:

1. The government determines various loses have eroded a particular bank’s balance sheet and regulatory intervention is necessary.
2. The bank is ordered to raise additional capital to maintain the proper asset ratio.
3. Increasing government activism causes private capital to avoid investing in banks.
4. The government is “forced” to loan more money to the bank in exchange for more stock and control via loan conditions like those found in earlier TARP loans and legislation.
5. As government acquires more power they force the bank to accept loses to benefit key constituencies of the administration (like the UAW) or the sale of toxic assets to firms like Pimco.
6. If the government does not own the majority of the bank’s stock return to step 1and repeat.

On May 5th, Fox reported as many as 10 of the top 19 banks in the country will need to raise additional capital following the stress tests. The troubled asset auction program is expected to start within a few weeks. If the administration chooses to do so the largest banks in the country can be nationalized by the end of summer.

There is no additional legislative action required to allow the executive branch to continue on this path. The regulatory framework was reviewed and approved by the judicial branch decades ago. The public at large may not even notice what is happening. Anyone looking for strutting fascists will be disappointed; this revolutionary change will be brought about by clean cut men and women in pinstripes.

Not only can it happen here, it is happening here.

Read the whole thing.

Stuart Varney, in the Wall Street Journal, explains that the administration is actually resisting TARP repayments from certain banks. This Administration’s economic policies aren’t about money. They are about power and control.

I must be naive. I really thought the administration would welcome the return of bank bailout money. Some $340 million in TARP cash flowed back this week from four small banks in Louisiana, New York, Indiana and California. This isn’t much when we routinely talk in trillions, but clearly that money has not been wasted or otherwise sunk down Wall Street’s black hole. So why no cheering as the cash comes back?

My answer: The government wants to control the banks, just as it now controls GM and Chrysler, and will surely control the health industry in the not-too-distant future. Keeping them TARP-stuffed is the key to control. And for this intensely political president, mere influence is not enough. The White House wants to tell ’em what to do. Control. Direct. Command.

It is not for nothing that rage has been turned on those wicked financiers. The banks are at the core of the administration’s thrust: By managing the money, government can steer the whole economy even more firmly down the left fork in the road.

If the banks are forced to keep TARP cash — which was often forced on them in the first place — the Obama team can work its will on the financial system to unprecedented degree. That’s what’s happening right now.

Here’s a true story first reported by my Fox News colleague Andrew Napolitano (with the names and some details obscured to prevent retaliation). Under the Bush team a prominent and profitable bank, under threat of a damaging public audit, was forced to accept less than $1 billion of TARP money. The government insisted on buying a new class of preferred stock which gave it a tiny, minority position. The money flowed to the bank. Arguably, back then, the Bush administration was acting for purely economic reasons. It wanted to recapitalize the banks to halt a financial panic.

Fast forward to today, and that same bank is begging to give the money back. The chairman offers to write a check, now, with interest. He’s been sitting on the cash for months and has felt the dead hand of government threatening to run his business and dictate pay scales. He sees the writing on the wall and he wants out. But the Obama team says no, since unlike the smaller banks that gave their TARP money back, this bank is far more prominent. The bank has also been threatened with “adverse” consequences if its chairman persists. That’s politics talking, not economics.

Charles Krauthammer thinks James Madison would wonder at the Constitutional feasability of Barack Obama’s federal intrusion into manufacturing, which recently reached the point of the president providing a federal guarantee of the repair or replacement of every component of millions of automobiles.

As Krauthammer observes, Obama “has now gotten himself so entangled in the car business that he is personally guaranteeing your muffler.” But, he notes:

Obama has far different ambitions. His goal is to rewrite the American social compact, to recast the relationship between government and citizen. He wants government to narrow the nation’s income and anxiety gaps. Soak the rich for reasons of revenue and justice. Nationalize health care and federalize education to grant all citizens of all classes the freedom from anxiety about health care and college that the rich enjoy. And fund this vast new social safety net through the cash cow of a disguised carbon tax.

Obama is a leveler. He has come to narrow the divide between rich and poor. For him the ultimate social value is fairness. Imposing it upon the American social order is his mission.

Fairness through leveling is the essence of Obamaism.

In the American Enterpise Institute’s 2009 Irving Kristol Lecture, Charles Murray argued that the key to preventing America’s descent into European-style permanent class division and economic paralysis beneath the rule of a technocrat bureaucracy must lie in overcoming the provinciality and disloyalty to the American project of the American elite.

American exceptionalism is not just something that Americans claim for themselves. Historically, Americans have been different as a people, even peculiar, and everyone around the world has recognized it. I’m thinking of qualities such as American optimism even when there doesn’t seem to be any good reason for it. That’s quite uncommon among the peoples of the world. There is the striking lack of class envy in America–by and large, Americans celebrate others’ success instead of resenting it. That’s just about unique, certainly compared to European countries, and something that drives European intellectuals crazy. And then there is perhaps the most important symptom of all, the signature of American exceptionalism–the assumption by most Americans that they are in control of their own destinies. It is hard to think of a more inspiriting quality for a population to possess, and the American population still possesses it to an astonishing degree. No other country comes close. …

The exceptionalism has not been a figment of anyone’s imagination, and it has been wonderful. But it isn’t something in the water that has made us that way. It comes from the cultural capital generated by the system that the Founders laid down, a system that says people must be free to live life as they see fit and to be responsible for the consequences of their actions; that it is not the government’s job to protect people from themselves; that it is not the government’s job to stage-manage how people interact with each other. Discard the system that created the cultural capital, and the qualities we love about Americans can go away. In some circles, they are going away.

Why do I focus on the elites in urging a Great Awakening? Because my sense is that the instincts of middle America remain distinctively American. When I visit the small Iowa town where I grew up in the 1950s, I don’t get a sense that community life has changed all that much since then, and I wonder if it has changed all that much in the working class neighborhoods of Brooklyn or Queens. When I examine the polling data about the values that most Americans prize, not a lot has changed. And while I worry about uncontrolled illegal immigration, I’ve got to say that every immigrant I actually encounter seems as American as apple pie.

The center still holds. It’s the bottom and top of American society where we have a problem. And since it’s the top that has such decisive influence on American culture, economy, and governance, I focus on it. The fact is that American elites have increasingly been withdrawing from American life. It’s not a partisan phenomenon. The elites of all political stripes have increasingly withdrawn to gated communities–“gated” literally or figuratively–where they never interact at an intimate level with people not of their own socioeconomic class.

Haven’t the elites always done this? Not like today. A hundred years ago, the wealth necessary to withdraw was confined to a much smaller percentage of the elites than now. Workplaces where the elites made their livings were much more variegated a hundred years ago than today’s highly specialized workplaces.

Perhaps the most important difference is that, not so long ago, the overwhelming majority of the elites in each generation were drawn from the children of farmers, shopkeepers, and factory workers–and could still remember those worlds after they left them. Over the last half century, it can be demonstrated empirically that the new generation of elites have increasingly spent their entire lives in the upper-middle-class bubble, never even having seen a factory floor, let alone worked on one, never having gone to a grocery store and bought the cheap ketchup instead of the expensive ketchup to meet a budget, never having had a boring job where their feet hurt at the end of the day, and never having had a close friend who hadn’t gotten at least 600 on her SAT verbal. There’s nobody to blame for any of this. These are the natural consequences of successful people looking for pleasant places to live and trying to do the best thing for their children.

But the fact remains: It is the elites who are increasingly separated from the America over which they have so much influence. That is not the America that Tocqueville saw. It is not an America that can remain America. …

What it comes down to is that America’s elites must once again fall in love with what makes America different. I am not being theoretical. Not everybody in this room shares the beliefs I have been expressing, but a lot of us do. To those of you who do, I say soberly and without hyperbole, that this is the hour. The possibility that irreversible damage will be done to the American project over the next few years is real. And so it is our job to make the case for that reawakening. It won’t happen by appealing to people on the basis of lower marginal tax rates or keeping a health care system that lets them choose their own doctor. The drift toward the European model can be slowed by piecemeal victories on specific items of legislation, but only slowed. It is going to be stopped only when we are all talking again about why America is exceptional, and why it is so important that America remain exceptional. That requires once again seeing the American project for what it is: a different way for people to live together, unique among the nations of the earth, and immeasurably precious.

Read the whole thing.

Milton Friedman, 1912-2006

What a pity he’s not here to comment on the follies of the Bush and Obama administrations.

2:24 video

Everett Raymond Kinstler, Ayn Rand

Edward Cline observes that the left’s dishonest and temporary triumph is being marred by a stubborn dissent on the part of ordinary Americans armed with very different ideas, ideas having a great deal to do with a very thick novel published just over half a century ago.

The world seems to be emerging from a moral and intellectual coma, perhaps temporarily, perhaps permanently. It is discovering that other ideas have other consequences, as well, ideas that promote life, promote prosperity, promote ambition and personal success, and that they are possible only in political freedom, and that this freedom has been violated, abridged, and nullified by the first set of ideas. True, politics is the last thing to be affected by a philosophical revolution. But one cannot help but be pleased with how startled the collectivists and altruists are now by the knowledge that they have not successfully pulled a fast one on Americans. These Americans have come knocking on the doors of elitists or leaning over the café railings or invading their legislated smoke-free bars and restaurants to ask: What in hell do you think you are doing?

The Americans who recently protested the spendthrift policies of the Obama administration and Congress with “tea parties,” and who plan to protest them on an even larger scale in the near future, one can wager are not regular readers of The New York Times. They cannot have much in common with its columnists and editors, nor with the news media.

So the collectivist and altruist elite become very touchy when the people for whom they are “doing good” for their own sake, even to the point of enacting coercive and felonious legislation, exhibit signs of intelligence, resistance and anger. How dare these yokels!

And nothing raises their hackles higher than any mention of Ayn Rand.

Tigerhawk, the Princetonian blogger from Iowa, has been pulling a few all-nighters recently, but found time (at 3:00 AM on Sunday) to deliver on video a John Galt-style speech defending the hard work and personal sacrifices of the high achieving people like himself, currently being stigmatized and targeted for special tax treatment by Barack Obama.

I’ve heard more fully developed analyses and better eloquence, but not often by people speaking from the heart from notes written at three o’clock in the morning after a lengthy session of work.

9:50 video

Leftie blogs are full of Rand villains sneering in response. Dagny would shoot the lot of ’em.

A lot of Americans were delighted to hear that, once Barack Obama was elected, absolutely everyone would be getting exactly the same kind of health care enjoyed by US senators. If you believed that, you need to talk to me about this bridge I have for sale.

Today’s Daily Mail has a story illustrating how government-provided health services really work: by rationing.

Thousands of patients with terminal cancer were dealt a blow last night after a decision was made to deny them life prolonging drugs.

The Government’s rationing body said two drugs for advanced breast cancer and a rare form of stomach cancer were too expensive for the NHS.

The National Institute for Health and Clinical Excellence is expected to confirm guidance in the next few weeks that will effectively ban their use.

The move comes despite a pledge by Nice to be more flexible in giving life-extending drugs to terminally-ill cancer patients after a public outcry last year over ‘death sentence’ decisions. Leading campaigners last night said Nice had failed the ‘acid test’ of whether it really intended to give new priority to people with just a few months to live.

One drug, Lapatinib, can halve the speed of growth of breast cancer in one in five women with an aggressive form of the disease.

Dr Gillian Leng, Nice deputy chief executive, said ‘The committee concluded that Lapatinib is not a cost-effective use of NHS resources when compared with current treatment.’

Up to 1,500 stomach cancer patients also face a ban on Sutent – the only drug that can extend their lives.