Schools, Royals, Unions, Alaskans, and Derivatives by the Quadrillion

By Ronald Glenn
America’s Right

So, we’re still less than eighty days into Barack Obama’s presidency and, just as promised, history is being made. For the first time, we saw a tax cheat hired to run the Treasury Department. For the first time, we’ve seen a TelePrompTer calling the shots and dictating public perception of a president. For the first time, we watched the president call for the termination of a private sector CEO.

It’s history all around!

As always, of course, I have the chance to travel around a bit and talk to people, and it is from that selection of chatter that I have found a few talking points for today’s installment of Notes From the Conservative Underground.

It’s a bit of a mish-mash of ideas, thoughts, and perspectives, but I hope you enjoy them and find them informative nonetheless.

Survival Mode vs. Doomsday Aftermath

WASHINGTON (Reuters) – “U.S. President Barack Obama benefits from a broadly held perception that others bear the bulk of responsibility for state of the U.S. economy, according to a Washington Post/ABC News poll published on Tuesday.”

Well, that certainly explains a lot. And it sure doesn’t inspire confidence in true recovery as this country spirals out of control. If the American voting public is so willing to shift blame away from the nation’s chief executive after so much has been lost over the past 78 days, what will it take for everyone to wake up over the next three years?

Even as Iran continues its nuclear program and North Korea basks in the afterglow of an unimpeded missile launch which did little else other than to show the Barack Obama-led United States of America to be a toothless dog, the refrain continues at home: It’s the economy, stupid.

That being said, a short look at the current state of affairs in the finance sector from what I have read and heard over the past week or so reveals two versions of our present financial condition:

In the first version, the world is in a severe survival mode, much like a gangland turf war. In the end, the biggest and most powerful will win as they always do, but that does not mean the winners are the ones who deserve it. In our present situation, those most likely to come out on top may actually be the guiltiest parties in this whole banking and investment mess, as the top five banks in this whole quagmire are the ones Treasury Secretary Tim Geithner wants to help the most.

Those five banks are JPMorgan Chase, Bank of America, Citibank, Goldman Sachs and Wells Fargo-Wachovia. According to Government reports, they hold over 90 percent of derivative positions in nominal value. Geithner will feed huge sums to them, and let the smaller banks get eaten up.

If Obama turns out to be a bad guy as this plays out, it is because he has too much of Abraham Lincoln’s “malice toward none” and refuses to arrest anybody. Either way, this scenario is one in which the nation survives, ends up nationalizing everything, and none of the culprits are arrested. So, even in survival mode, the idea of survival itself is subjective.

The second version is more doomsday-ish, since it is based on the problems of derivatives. There are some in my business who think the mortgage problem does have a chance of showing signs that it has hit bottom, but what looms on the horizon is a veritable derivative implosion. And the figures tossed around with regard to derivatives are staggering. Webster Tarpley, a regular inhabitant of the conspiratorial fringe who has nonetheless written on politics and the economy for years, says the dervative bubble is 1.5 quadrillion dollars. That’s right, a quadrillion, as in a thousand trillion dollars. Or, in this case, 1,500 trillion dollars.

This figure may seem ridiculous, and indeed when I asked an associate of mine on Wall Street about it, he posited that a quadrillion dollars might be “a little high.” Regardless, the point is not lost — we, the American public, simply do not have a strong sense of how much is out there. nor do we have a strong idea of whether we will ever know. The thing is, even if Tarpley’s figures are three times too high, that would still leave the total at 500 trillion dollars.

The answer? Let the whole mess blow up and cave in on itself, like a controlled demolition. In order to do this properly, a mechanism must be set up to catch all the rubble, that mechanism being the world regulatory agency being discussed at the G-20 meeting. Geithner’s job, in the meantime, is to hold everything together until the government structure is in place to cope with the end of dervatives as we know them.

Of course, the second scenario may seem more vicious than the first, but it will nonetheless prevent the American government from spending itself into oblivion. Obama might not be blamed for the cause, but he could be blamed for the poor end result, depending upon which of these he chooses.

God Save the Queen

As we all saw, President Obama and his wife had an audience with the Queen of England last week. He brought Her Royal Highness a Royal iPod, and she smiled understandingly as Michelle Obama broke well-established protocol and wrapped one of her sinewy arms around the Royal waist. It was lovely. Tea and hegemony all around.

In the meantime, perhaps we should keep in mind the ongoing speculation, for years, that the Crown is in fact the largest shareholder in the American Federal Reserve. Of course, the Crown hasn’t been the only entity considered, as the continued refusal by the Federal Reserve to reveal to the American people just who owns its equity only adds fuel to the fire and allows this kind of speculation to run rampant.

Not up for debate or speculation, though, is the vast number of hedge funds run by the Brits in the Cayman Islands, part of the unrestricted world of finance. Obama’s audience with the Queen of England is a public demonstration of the Anglo-American banking alliance currently doing combat with the rest of the world. The AIG/banking crises has been placed on the backs of this alliance because the Americans in particular were supposed to police AIG. This did not happen, and now trust in American business virtue must be re-established.

To do that, I don’t know how the White House can top the DVD collection given to the British PM or the iPod given to the Queen. Perhaps the Obama administration could consider bringing Japanese flat-screen televisions to the next meeting of foreign heads of state, or maybe the fancy cellphone du jour — that way Obama can text his peeps across the globe.

OMG hav u red Karl Marx?
Ya LOL Marx iz da bomb.

School Days

Federal funds from the so-called “stimulus” package is set to begin pouring into the American public school system any day now, bringing with it great excitement from all circles about how the federal government is saving the schools. And just in time, too — in times of economic crises, after all, it will be more an more difficult for parents to send their children to private schools.

As we’ve seen, Democrats much like Communists thrive on superficially defusing crisis with government interaction. This, therefore, could definitely be the time in the next year or so to put more and more power in to the public schools, especially if President Obama gets to sponsor his public works program through the schools as part of a child’s education.

Normal consequences? Possibly look for any tax exempt status enjoyed by private schools to be in danger, and be on the lookout for homeschooling to go under attack as well.

Union Busting

Many of my associates seem to think President Obama wants to base the car industry on the non-union model exhibited by Toyota and other foreign automakers in the United States. While I’m not so sure that’s true, think about it for a momemnt — what an irony it would be, in that case, for a Democrat to bust the autoworkers’ union, leaving the government employees’ unions as the most powerful in the American landscape.

Time will tell if the Democratic party can reconcile their treatment of the UAW with their liberal ideals. Read the American Communist Parrty platform some afternoon. (You really don’t have to — honest.) It wants to unionize every job in America.

The Life and Times of Sarah Palin

Well, my prior comments about Alaska Gov. Sarah Palin really got those stomach acids flowing, enough so that I felt compelled to respond. Bear with me.

However great the love may be for Sarah Palin in the conservative arena, she is considered laughable by the American political left, and at this time they hold court, both in the halls of Capitol Hill and the cubicles in newsrooms from coast to coast. Is she a woman? Yes. Does it matter? No. What matters right now is that she has very little capacity under the current circumstances, economic and otherwise, to convince anyone who voted for Obama to change their minds and move toward the conservative side of the political aisle.

When I said she represents the religious right, that was not a judgment — that is a fact. When she was picked by Arizona Sen. John McCain as his running mate, the inside party Republicans I spoke with were positively glowing, arguing that she was by far the best representative of the religious right they could imagine. The problem, however, lay in McCain’s failure to woo the economic and defense conservatives. That failure was his own, from his refusal to hammer then-candidate Barack Obama on his tax plans to his horrible decision to vote in favor of the initial $700 billion bailout. And just as John McCain failed to woo fiscal conservatives so for many reasons, I do not believe she had much to offer in that regard.

Why? Because she is not perceived as a professional economist and, despite being the only candidate on either ticket with executive experience, was at least perceived to be lacking in that regard. Fiscal conservatives by their very nature want their candidates to be more than professional politicians (Ronald Reagan excluded), and Sarah Palin’s religious conservative beliefs would be with her even if she had not become a politician.

The best interview I heard her give during the campaign was on the show “Focus on the Family,” a conservative religious program. She was natural, comfortable, and on target. This would simply not be so if she had to explain the nature of the derivatives crises and what should be done. The truth is, most politicans would not either. (Reading on the derivatives crises has the same intellectual flavor as studying quantum mechanics. It is part science and part science fiction.) Regardless, the Republicans at this very moment, given the circumstances, need a national figure who is a combination of enonomics and religious morality, a figure who elicits confidence when it comes to dollars and sense. Sarah Palin is not that figure. Mitt Romney may be. Newt Gingrich may be. Either way, they’re going to be in for a fight.

Ronald Glenn has worked in real estate and law for more than twenty years. He now works in Philadelphia, and lives outside the city with his wife. Ron has been writing for America’s Right since January 2009.




    Pretty sad that a Kenyan community organizer can become President, but not a board member, mayor and governor. We don’t have a crystal ball and with this birth certificate issue, who knows Sarah could end up running against the she-devil Pelosi.

    Word verification: tring
    name for Sarah’s next child

  2. Gail B says:

    I’ll bet Obama doesn’t know how to say that in “Austrian,” either!

    Thanks, Ronald. It’s good to hear from across the lands, especially when it’s not from the mainstream media.

  3. Gail B says:

    From Q&A period in Europe:

    Q Sonja Sagmeister from a little country, Austria, from Austrian Television. Mr. President, you said you came here to learn and to listen. So a quite personal question — what did you learn from your personal talk with the European leaders? And did this change in a certain way your views on Europe and its politics?

    PRESIDENT OBAMA: It's an interesting question. I had already formed relationships with many of them. … There's a lot of — I don't know what the term is in Austrian — wheeling and dealing — and, you know, people are pursuing their interests, and everybody has their own particular issues and their own particular politics.

    (Word to verify is a good term for Obama–"weasterd" –ROFL)

  4. Anonymous says:

    Thanks Ron. You know, I don’t care who the next Republican Presidential candidate is as long as he/she gets us back to the basic morals that have kept this country great. Soetoro threw the USA “under the bus” in Europe and for the life of me I can’t understand how the MSM can sit around and let him continue to bash America. This man shows he has a big chip on his shoulder. If a Republican had made some of the arrogant and ignorant statements he has made this past week the MSM would have been all over them! Correct me if I am wrong, but weren’t blacks given the right to vote during reconstruction after the Civil War? Soetoro seems to think people “like him” were not even allowed to vote “not so long ago”. I want a candidate for 2012 that will stand up for America and show the world that we are still the greatest Nation on earth.


  5. Anonymous says:

    I agree with Caliente, it is shameful that a man with Obama’s lack of experience ‘questionable’ past and long standing associations with radicals has become the new ‘American Idol’. Sarah Palin has become someone to be mocked and laughed at by the left?…who cares? what person who is a conservative would not be mocked by them? Her family has been insulted and crucified from the very beginning because the MSM perceived that was the ‘weakest link’. I haven’t seen Biden’s drug addicted daughter being interviewed or Barney ‘frankfurter’s’ lover at Fannie on Tyra Banks giving details about their relationship and questioned about the conflict of interest. Sarah Palin became the target of the left because she has values and convictions…as we all know, you can’t always control what your children do or think…ask the Kennedy family or the Gore family. I have not decided who I will support for President but I can tell you that the fact that the liberal left makes fun of Sarah Palin would not prevent me from voting for her if that’s what I decide to do…in fact, it would give me more incentive to support her. The dimwits have tax cheats in the administration who are going to devastate this economy and all we can talk about is Palin’s daughter and her ex-boyfriend. How pathetic we are if we listen or give credence to it!

  6. cher-pa says:

    Your comments on Sarah Palin compell me to respond back.In your mind her flaws are what this country needs most,and will need more than ever come 2012.
    Sarah Palin is the only one that will take on the political left and the mainstream media.America is fed up with Washington corruption and the destruction of our constitution.
    Mitt Romney would be a great V.P. with his finace experience.As for changing minds over to the concervative side,Obama and company are doing that for us.
    So let the left laugh.I bet in the end they will laugh last!!

  7. Vivi Aviv says:

    Palin is awesome. I love her and respect her accomplishments.

    I also know that the media will trash her, her children, her life, etc. They will assault her and us with venom even cobras would envy. Remember the turkey slaughter, the wolves, moose killer, and more. Therefore, I am siding with you that we do not need this kind of disturbing and degrading environment.

    Palin would be great as Secretary of Commerce and start rehabilitating what was done to us in the past 15-20 years.

  8. Anonymous says:

    “I Am One Of Them”

    “He talked about the contribution of the Islamic faith in the life of American Muslims and then he personalised that message by saying ‘I know because I am one of them.’ It was a message that reached out to many today….”

    UPDATE: Al-Jazeera has removed this section from the story sometime between the time they published it and now — the censorship continues.

    Obama Says Islam Has Shaped The U.S.A.

    Robert Spencer, writing at Front Page Magazine comments on Obama’s statement to the Turkish Parliament, “We will convey our deep appreciation for the Islamic faith, which has done so much over the centuries to shape the world — including in my own country.”

    read more:

  9. Gail B says:

    Just remembered something–

    In “Bushworld” or “Bush’s Brain”, there was something about Karl Rove and spending a week or two with “W
    ” to teach him geography, etc., so that he could successfully run for governor of Texas.

    It seems to me that Sarah Palin has the charisma and integrity necessary to make a presidential bid, but the consensus of opinion is that she lacks knowledge at the higher levels she needs.

    Why couldn’t someone like Newt Gingrich, Rove, or the like, tutor her in domestic and foreign policy and politics? That would round out her education and make her more viable as a presidential candidate, wouldn’t it?

  10. Gail B says:

    Palin should know already that German is spoken in Austria!

  11. Anonymous says:

    If indeed the President made these statements he should be ashamed because it is a slap in the face to all American history and to the families of generations that built America.

  12. GATOR-1 says:

    Good Gracious Gail…

    A weasel and a turd! Now that’s funny….

    Blessings Patriots…

  13. IT'S SARAH FOR ME says:

    There is just something about Sarah Palin that is refreshing. She apparently LOVES life, seems to be a perfect specimen of physical health and mental health, and does NOT appear to be a freaking life-long power seeker and hanger-on. She just loves to be involved in the process of making America better it seems to me. I like that. Call that shallow if you must but I want a leader that is more like me than these hospice-congress rotunda dwellers.


    WASHINGTON – A judge has dismissed charges against former Sen. Ted Stevens because of prosecutorial misconduct and has ordered a criminal contempt investigation of the prosecutors.
    “In nearly 25 years on the bench, I’ve never seen anything approaching the mishandling and misconduct that I’ve seen in this case,” U.S. District Judge Emmet Sullivan said in the opening moments of a hearing.
    Sullivan read a stinging summary of the many times the government withheld evidence or mishandled witnesses in the case.

  15. Anonymous says:

    “Tea and hegemony all around.”

    Ha! I laughed out loud at that. That scene of the Kenyan and his hulking, unmannered wife feeling up the queen and bowing servilely to the Saudi king sort of creeped me out, though. What does that say about the U.S. right now? Clueless?

    Interesting article, Mr. Glenn. You hit on several points of much importance, one right after the other.

  16. Anonymous says:

    There is no doubt in my mind that the imploding derivatives scenario is the correct one.

    George Soros was featured on Bloomberg today, in an interview he stated that “the banking system must remain intact.”

    Why? The bailout of the five banks has brought the economy to a standstill. Today’s news is worse than yesterday’s news and until the banks are shut down, things will further deteriorate. The bailouts are like a chemotherapy that partially arrests the disease but does so by causing systemic paralysis.

    There is no requirement for the current banking system to remain intact. There is no requirement for the banks to be bailed out. The proper course is for them to go into bankruptcy.

    The reason why they are being propped up is because the central banks make money through them.

    Separate from the derivatives meltdown, the economy is in a recession because of the level of government, private and consumer debt. In order to recover, debt has to decrease. Debt reduction is the only positive influence in the economy today. Everything else that is being done, from the bailouts to the liberal’s spending spree, is a further drag on the economy.

    I really think the only way out is for America to go back to gold and silver coinage. The investment bankers and their central banks must find a new home.

  17. Gail B says:

    You know how your stomach feels after you have enjoyed a good meal?

    Well, that’s how my head feels after I’ve read one of Ian’s fact-filled, British-humored articles.

  18. tm says:

    Question: What is the ONLY National Guard unit on permanent active duty?
    Answer: 49th Missile Defense Battalion of Alaska National Guard.
    Question: Who is the Commander in Chief of the 49th Missile Defense Battalion of Alaska National Guard?
    Answer: Governor Sarah Palin, Alaska
    Question: What U.S. governor is routinely briefed on highly classified military issues, homeland security, and counter terrorism?
    Answer: Governor Sarah Palin, Alaska
    Question: What U.S. governor had a higher classified security rating than either Democratic candidate prior to the election?
    Answer: Governor Sarah Palin, Alaska
    Question: Which of the four candidates was the ONLY one with any executive experience?
    Answer: Governor Sarah Palin, Alaska
    Not qualified?
    I know.

    Why? Because she is not perceived as a professional economist

    It seems the image of Mrs. Palin being clueless in economics is, ummm, a little off base. No, make that way off base. Some key passages (emphasis mine):
    Two years ago at this podium, I urged spending restraint. I asked that billions of surplus funds be deposited in state savings. This struck me as a simple precaution against, as I described it, massive single-year cuts down the road, if and when we faced tougher times. You legislators agreed, so we can now meet our challenge in a stronger position…..
    With prudence, you built our reserves – that was good planning. This national economic downturn that’s spread to the energy market – it found us prepared. And that’s more than many states can say about their financial situation.
    When oil prices and state revenue are on the rise, as was the case, there’s temptation to assume it’ll go on rising forever, and to spend accordingly. Since prices fell, there may be an equal temptation to draw heavily on reserves or, for some, to be tempted to tap the permanent fund earnings or tax our hardworking families.
    No. With the budget, the aim is to keep our economy on a steady, confident course. The aim is – with discipline – we protect our reserves and promote economic growth……..
    Last year, we all expected another surplus. But even then, with record high prices, I chose prudence and directed state commissioners to cut millions in operating costs.
    Finding efficiencies even during times of plenty – that’s common sense fiscal responsibility.
    Now obviously, circumstances have changed that even international seasoned oil experts could not predict, requiring us now to adjust even more. Therefore, I am implementing a hiring freeze, exempting public safety, and I am restricting non-essential purchases. These actions reduce the draw on savings as we monitor revenue for the rest of 2009.
    For too long, Alaska’s economy has struggled with fluctuating revenue due to global commodity prices.
    In a volatile economy, numbers are not fixed, but principles are. We’ve followed the same principles from the start of this administration: fiscal discipline, limited government, and responsible stewardship.
    At a time when other state legislatures are staring at multi-billion-dollar deficits, and when our federal government proposes a deficit in excess of a trillion dollars this year alone, we have all the cautionary examples we need in the virtues of living within our means. With less revenue, we have an obligation to spend less money.
    Seems to me the lady has something that is sorely lacking in many of our politicians: the wisdom to plan for the future.

    I thought this might be interesting for some – what a difference a candidate makes (note Alaska is the only state in the black financially)
    This is the State of the State address given in January to the Alaska legislators (which Palin wrote herself). It seems the image of Mrs. Palin being clueless is, a little off base. No, make that way off base.
    Here is the link to the speech in full:

  19. AK's GOV ROCKS says:


    THANK YOU for reinforcing my love of Sarah!!

    SARAH PALIN 2012

  20. Jeff Schreiber says:

    TM — You’re getting ahead of me with regard to Palin. You’ll see what I mean at about 7:00pm Eastern.

    As for Palin, I do not share Ron Glenn’s opinion, other than perhaps the idea that she is PERCEIVED as having a lack of certain knowledge by the left.

    Honestly, I would like to see her get some experience in the Senate or House, though, before making a presidential run. While not essential, it would allow her to add onto her executive experience the intricate know-how as to policy and legislative procedure in DC — something that an effective president must know how to navigate.

  21. tm says:

    The left’s perception of Mrs. Palin is nothing more then the biggest threat the GOP could have ever put out there. There is no Perception – she is a threat.
    I will check back in at 7 but I am a Reagan republican. Ronald Reagan had executive experience and it would have been a waste of talent to be thrown in the senate, or congress. This is the first candidate who represents “true conservatism” to me, after doing my homework on her. The hope and change should be the GOP’s – Mrs. Palin represents real hope and change and they know it.They fear it. I also wonder if I am the only conservative male who sees this.

  22. VOTE SARAH says:

    A ‘high IQ’ and beltway experience MEANS NOTHING!! just look at Joe Biden. Debate over on that. Common sense and love of country trumps everyone in Hospice City. I’m voting Sarah, and you’re getting no apology from me.


    On Nov 5th I proudly took a razor to my McCain*Palin window sticker and with glee removed the McCain half of it. That Palin sticker will remain there these next 4 years, even while driving around this predominantly AfricanAmerican suburb of Memphis. Pray for my safety.

    And tm, I too am a conservative male, 56 years of age.

  24. Celia in TX says:

    Stimulus money looking to end up pointless. Talk is in Texas, stimulus money will replace state’s budgeted money rather than supplement it.


    you said “Honestly, I would like to see her get some experience in the Senate or House, though, before making a presidential run.”

    Screw the House and Senate! We all see what kind of ‘experience’ you get in there. What a waste of a profession. With Pelosi and Reid at the helm anybody with ANY intelligence would be wasting talent in that hell hole.

  26. CAL says:

    I think it is unfair to say Palin is washed up because the left does not like her. The left does not like her because they see her as a huge threat. That is why they went to so much trouble to try to destroy her. To say that Palin was lacking in experience is also ridiculous. Palin ran a city and a state. Obama had never run anything and we are seeing his imcompetence on full display. Palin understands government’s role in the economy. She knows government needs to create a business friendly environment with low taxes and less regulation and she has proven this in Alasaka. Without government intervention in the mortgage market through the Community Reinvestment Act, FNMA and GNMA, all these derivatives that are killing our financial sector would never have been created.

  27. ABBIE NORMAL says:

    Read my lips,


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