The Entitlement Crisis - Sooner Or Later We Have To Payup

FORECASTS & TRENDS E-LETTERby Gary D. HalbertAugust 19, 2008
“Frightful Storm Brewing” – The Entitlement Crisis
IN THIS ISSUE:
1. Largest Budget Deficit In History Coming In 2009
2. A Sobering Reminder From The Fed’s Richard Fisher
3. Deficits To Explode In Coming Decades
4. Conclusions – Why No One Is Talking About This
Introduction
At the end of July, the White House announced its forecast for the federal budget deficit for fiscal year 2009, which begins next month. The deficit is shocking – an estimated $482 billion, and that does not include apprx. $80 billion that will be spent on the war in Iraq, or a possible second economic stimulus package that is being debated in Congress. So the 2009 deficit will go well beyond a half a trillion dollars! It will be the largest budget deficit in US history.

The national debt is now at $9.6 trillion and will rise well above $10 trillion next year. And that amount does not include the trillions of dollars in unfunded liabilities for Social Security, Medicare and Medicaid. The US faces a debt crisis of incredible proportion over the next several decades. Everyone knows it, but no one seems willing to do anything to stop it.

What follows is one of the most troubling things I have read in a long time. It is a recent speech by Dallas Federal Reserve President Richard W. Fisher. Last week I noted that Mr. Fisher has been the lone voice on the FOMC that has voted against Chairman Bernanke & Company, and argues that interest rates should be rising. In checking into Mr. Fisher’s positions, I ran across the following speech he gave recently to the Commonwealth Club of California.

Let me warn you, Mr. Fisher’s remarks are going to trouble you. They may even scare you. But you need to read what follows.

Remarks by Dallas Fed President Richard W. Fisher May 28, 2008
[QUOTE] Thank you, Bruce [Ericson]. I am honored to be here this evening and am grateful for the invitation to speak to the Commonwealth Club of California.

Alan Greenspan and Paul Volcker, two of Ben Bernanke’s linear ancestors as chairmen of the Federal Reserve, have been in the news quite a bit lately. Yet, we rarely hear about William McChesney Martin, a magnificent public servant who was Fed chairman during five presidencies and to this day holds the record for the longest tenure: 19 years…

Bill Martin was nominated to run and lose on the Alfalfa Party ticket in 1966, while serving as Fed chairman during Lyndon Johnson’s term. In his acceptance speech, he announced that, given his proclivities as a central banker, he would take his cues from the German philosopher Goethe, “who said that people could endure anything except continual prosperity.” Therefore, Martin declared, he would adopt a platform proclaiming that as a president he planned to “make life endurable again by stamping out prosperity.”

“I shall conduct the administration of the country,” he said, “exactly as I have so successfully conducted the affairs of the Federal Reserve. To that end, I shall assemble the best brains that can be found…ask their advice on all matters…and completely confound them by following all their conflicting counsel.”

It is true, Bruce, that as you said in your introduction, I am one of the 17 people who participate in Federal Open Market Committee (FOMC) deliberations and provide Ben Bernanke with “conflicting counsel” as the committee cobbles together a monetary policy that seeks to promote America’s economic prosperity, Goethe to the contrary. But tonight I speak for neither the committee, nor the chairman, nor any of the other good people that serve the Federal Reserve System. I speak solely in my own capacity. I want to speak to you tonight about an economic problem that we must soon confront or else risk losing our primacy as the world’s most powerful and dynamic economy.

Forty-three years ago this Sunday, Bill Martin delivered a commencement address to Columbia University that was far more sober than his Alfalfa Club speech. The opening lines of that Columbia address were as follows: “When economic prospects are at their brightest, the dangers of complacency and recklessness are greatest. As our prosperity proceeds on its record-breaking path, it behooves every one of us to scan the horizon of our national and international economy for danger signals so as to be ready for any storm.”

Today, our fellow citizens and financial markets are paying the price for falling victim to the complacency and recklessness Martin warned against. Few scanned the horizon for trouble brewing as we proceeded along a path of unparalleled prosperity fueled by an unsustainable housing bubble and unbridled credit markets. Armchair or Monday morning quarterbacks will long debate whether the Fed could have/should have/would have taken away the punchbowl that lubricated that blowout party. I have given my opinion on that matter elsewhere and won’t go near that subject tonight.

What counts now is what we have done more recently and where we go from here. Whatever the sins of omission or commission committed by our predecessors, the Bernanke FOMC’s objective is to use a new set of tools to calm the tempest in the credit markets to get them back to functioning in a more orderly fashion. We trust that the various term credit facilities we have recently introduced are help ing restore confidence while the credit markets undertake self-corrective initiatives and lawmakers consider new regulatory schemes.

I am also not going to engage in a discussion of present monetary policy tonight, except to say that if inflationary developments and, more important, inflation expectations, continue to worsen, I would expect a change of course in monetary policy to occur sooner rather than later, even in the face of an anemic economic scenario. Inflation is the most insidious enemy of capitalism. No central banker can countenance it, not least the men and women of the Federal Reserve.

Tonight, I want to talk about a different matter. In keeping with Bill Martin’s advice, I have been scanning the horizon for danger signals even as we continue working to recover from the recent turmoil. In the distance, I see a frightful storm brewing in the form of untethered government debt. I choose the words—“frightful storm”—deliberately to avoid hyperbole.

Unless we take steps to deal with it, the long-term fiscal situation of the federal government will be unimaginably more devastating to our economic prosperity than the subprime debacle and the recent debauching of credit markets that we are now working so hard to correct.
You might wonder why a central banker would be concerned with fiscal matters. Fiscal policy is, after all, the responsibility of the Congress, not the Federal Reserve. Congress, and Congress alone, has the power to tax and spend. From this monetary policymaker’s point of view, though, deficits matter for what we do at the Fed.

There are many reasons why. Economists have found that structural deficits raise long-run interest rates, complicating the Fed’s dual mandate to develop a monetary policy that promotes sustainable, noninflationary growth. The even more disturbing dark and dirty secret about deficits—especially when they careen out of control—is that they create political pressure on central bankers to adopt looser monetary policy down the road. I will return to that shortly. First, let me give you the unvarnished facts of our nation’s fiscal predicament.

Eight years ago, our federal budget, crafted by a Democratic president and enacted by a Republican Congress, produced a fiscal surplus of $236 billion, the first surplus in almost 40 years and the highest nominal-dollar surplus in American history. While the Fed is scrupulously nonpartisan and nonpolitical, I mention this to emphasize that the deficit/debt issue knows no party and can be solved only by both parties working together.

For a brief time, with surpluses projected into the future as far as the eye could see, economists and policymakers alike began to contemplate a bucolic future in which interest payments would form an ever-declining share of federal outlays, a future where Treasury bonds and debt-ceiling legislation would become dusty relics of a long-forgotten past. The Fed even had concerns about how open market operations would be conducted in a marketplace short of Treasury debt.

That utopian scenario did not last for long. Over the next seven years, federal spending grew at a 6.2 percent nominal annual rate while receipts grew at only 3.5 percent. Of course, certain areas of government, like national defense, had to spend more in the wake of 9/11.

But nondefense discretionary spending actually rose 6.4 percent annually during this timeframe, outpacing the growth in total expenditures. Deficits soon returned, reaching an expected $410 billion for 2008—a $600 billion swing from where we were just eight years ago.

This $410 billion estimate, by the way, was made before the recently passed farm bill and supplemental defense appropriation and without considering a proposed patch for the Alternative Minimum Tax—all measures that will lead to a further ballooning of government deficits.

In keeping with the tradition of rosy scenarios, official budget projections suggest this deficit will be relatively short-lived. They almost always do. According to the official calculus, following a second $400-billion-plus deficit in 2009, the red ink should fall to $160 billion in 2010 and $95 billion in 2011, and then the budget swings to a $48 billion surplus in 2012.

If you do the math, however, you might be forgiven for sensing that these felicitous projections look a tad dodgy. To reach the projected 2012 surplus, outlays are assumed to rise at a 2.4 percent nominal annual rate over the next four years—less than half as fast as they rose the previous seven years.

Revenue is assumed to rise at a 6.7 percent nominal annual rate over the next four years—almost double the rate of the past seven years. Using spending and revenue growth rates that have actually prevailed in recent years, the 2012 surplus quickly evaporates and becomes a deficit, potentially of several hundred billion dollars.

Doing deficit math is always a sobering exercise. It becomes an outright painful one when you apply your calculator to the long-run fiscal challenge posed by entitlement programs. Were I not a taciturn central banker, I would say the mathematics of the long-term outlook for entitlements, left unchanged, is nothing short of catastrophic.

Typically, critics ranging from the Concord Coalition to Ross Perot begin by wringing their collective hands over the unfunded liabilities of Social Security. A little history gives you a view as to why.

Franklin Roosevelt originally conceived a social security system in which individuals would fund their own retirements through payroll-tax contributions. But Congress quickly realized that such a system could not put much money into the pockets of indigent elderly citizens ravaged by the Great Depression. Instead, a pay-as-you-go funding system was embraced, making each generation’s retirement the responsibility of its children.

Now, fast forward 70 or so years and ask this question: What is the mathematical predicament of Social Security today? Answer: The amount of money the Social Security system would need today to cover all unfunded liabilities from now on—what fiscal economists call the “infinite horizon discounted value” of what has already been promised recipients but has no funding mechanism currently in place—is $13.6 trillion, an amount slightly less than the annual gross domestic product of the United States.

Demographics explain why this is so. Birthrates have fallen dramatically, reducing the worker–retiree ratio and leaving today’s workers pulling a bigger load than the system designers ever envisioned. Life spans have lengthened without a corresponding increase in the retirement age, leaving retirees in a position to receive benefits far longer than the system designers envisioned. Formulae for benefits and cost-of-living adjustments have also contributed to the growth in unfunded liabilities.

The good news is this Social Security shortfall might be manageable. While the issues regarding Social Security reform are complex, it is at least possible to imagine how Congress might find, within a $14 trillion economy, ways to wrestle with a $13 trillion unfunded liability. The bad news is that Social Security is the lesser of our entitlement worries. It is but the tip of the unfunded liability iceberg. The much bigger concern is Medicare, a program established in 1965, the same prosperous year that Bill Martin cautioned his Columbia University audience to be wary of complacency and storms on the horizon.

Medicare was a pay-as-you-go program from the very beginning, despite warnings from some congressional leaders…who foresaw some of the long-term fiscal issues such a financing system could pose. Unfortunately, they were right.

Please sit tight while I walk you through the math of Medicare. As you may know, the program comes in three parts: Medicare Part A, which covers hospital stays; Medicare B, which covers doctor visits; and Medicare D, the drug benefit that went into effect just 29 months ago. The infinite-horizon present discounted value of the unfunded liability for Medicare A is $34.4 trillion. The unfunded liability of Medicare B is an additional $34 trillion.

The shortfall for Medicare D adds another $17.2 trillion. The total? If you wanted to cover the unfunded liability of all three programs today, you would be stuck with an $85.6 trillion bill. That is more than six times as large as the bill for Social Security. It is more than six times the annual output of the entire U.S. economy.

Why is the Medicare figure so large? There is a mix of reasons, really. In part, it is due to the same birthrate and life-expectancy issues that affect Social Security. In part, it is due to ever-costlier advances in medical technology and the willingness of Medicare to pay for them. And in part, it is due to expanded benefits—the new drug benefit program’s unfunded liability is by itself one-third greater than all of Social Security’s.

Add together the unfunded liabilities from Medicare and Social Security, and it comes to $99.2 trillion over the infinite horizon. Traditional Medicare composes about 69 percent, the new drug benefit roughly 17 percent and Social Security the remaining 14 percent.

I want to remind you that I am only talking about the unfunded portions of Social Security and Medicare. It is what the current payment scheme of Social Security payroll taxes, Medicare payroll taxes, membership fees for Medicare B, copays, deductibles and all other revenue currently channeled to our entitlement system will not cover under current rules. These existing revenue streams must remain in place in perpetuity to handle the “funded” entitlement liabilities. Reduce or eliminate this income and the unfunded liability grows. Increase benefits and the liability grows as well.

Let’s say you and I and Bruce Ericson and every U.S. citizen who is alive today decided to fully address this unfunded liability through lump-sum payments from our own pocketbooks, so that all of us and all future generations could be secure in the knowledge that we and they would receive promised benefits in perpetuity. How much would we have to pay if we split the tab? Again, the math is painful. With a total population of 304 million, from infants to the elderly, the per-person payment to the federal treasury would come to $330,000. This comes to $1.3 million per family of four—over 25 times the average household’s income.

Clearly, once-and-for-all contributions would be an unbearable burden. Alternatively, we could address the entitlement shortfall through policy changes that would affect ourselves and future generations. For example, a permanent 68 percent increase in federal income tax revenue—from individual and corporate taxpayers—would suffice to fully fund our entitlement programs. Or we could instead divert 68 percent of current income-tax revenues from their intended uses to the entitlement system, which would accomplish the same thing.

Suppose we decided to tackle the issue solely on the spending side. It turns out that total discretionary spending in the federal budget, if maintained at its current share of GDP in perpetuity, is 3 percent larger than the entitlement shortfall. So all we would have to do to fully fund our nation’s entitlement programs would be to cut discretionary spending by 97 percent.

But hold on. That discretionary spending includes defense and national security, education, the environment and many other areas, not just those controversial earmarks that make the evening news. All of them would have to be cut—almost eliminated, really—to tackle this problem through discretionary spending.

I hope that gives you some idea of just how large the problem is. And just to drive an important point home, these spending cuts or tax increases would need to be made immediately and maintained in perpetuity to solve the entitlement deficit problem.

Discretionary spending would have to be reduced by 97 percent not only for our generation, but for our children and their children and every generation of children to come. And similarly on the taxation side, income tax revenue would have to rise 68 percent and remain that high forever. Remember, though, I said tax revenue, not tax rates. Who knows how much individual and corporate tax rates would have to change to increase revenue by 68 percent?

If these possible solutions to the unfunded-liability problem seem draconian, it’s because they are draconian. But they do serve to give you a sense of the severity of the problem. To be sure, there are ways to lessen the reliance on any sing le policy and the burden borne by any particular set of citizens. Most proposals to address long-term entitlement debt, for example, rely on a combination of tax increases, benefit reductions and eligibility changes to find the trillions necessary to safeguard the system over the long term.

No combination of tax hikes and spending cuts, though, will change the total burden borne by current and future generations. For the existing unfunded liabilities to be covered in the end, someone must pay $99.2 trillion more or receive $99.2 trillion less than they have been currently promised.
This is a cold, hard fact. The decision we must make is whether to shoulder a substantial portion of that burden today or compel future generations to bear its full weight.
Now that you are all thoroughly depressed, let me come back to monetary policy and the Fed.
It is only natural to cast about for a solution—any solution—to avoid the fiscal pain we know is necessary because we succumbed to complacency and put off dealing with this looming fiscal disaster.

Throughout history, many nations, when confronted by sizable debts they were unable or unwilling to repay, have seized upon an apparently painless solution to this dilemma: monetization. Just have the monetary authority run cash off the printing presses until the debt is repaid, the story goes, then promise to be responsible from that point on and hope your sins will be forgiven by God and Milton Friedman and everyone else.

We know from centuries of evidence in countless economies, from ancient Rome to today’s Zimbabwe, that running the printing press to pay off today’s bills leads to much worse problems later on. The inflation that results from the flood of money into the economy turns out to be far worse than the fiscal pain those countries hoped to avoid. Earlier I mentioned the Fed’s dual mandate to manage growth and inflation. In the long run, growth cannot be sustained if markets are undermined by inflation.

Stable prices go hand in hand with achieving sustainable economic growth. I have said many, many times that inflation is a sinister beast that, if uncaged, devours savings, erodes consumers’ purchasing power, decimates returns on capital, undermines the reliability of financial accounting, distracts the attention of corporate management, undercuts employment growth and real wages, and debases the currency.

Purging rampant inflation and a debased currency requires administering a harsh medicine. We have been there, and we know the cure that was wrought by the FOMC under Paul Volcker. Even the perception that the Fed is pursuing a cheap-money strategy to accommodate fiscal burdens, should it take root, is a paramount risk to the long-term welfare of the U.S. economy. The Federal Reserve will never let this happen.

It is not an option. Ever. Period.

The way we resolve these liabilities—and resolve them we must—will affect our own well-being as well as the prospects of future generations and the global economy. Failing to face up to our responsibility will produce the mother of all financial storms. The warning signals have been flashing for years, but we find it easier to ignore them than to take action. Will we take the painful fiscal steps necessary to prevent the storm by reducing and eventually eliminating our fiscal imbalances? That depends on you.

I mean “you” literally. This situation is of your own creation. When you berate your representatives or senators or presidents for the mess we are in, you are really berating yourself. You elect them. You are the ones who let them get away with burdening your children and grandchildren rather than yourselves with the bill for your entitlement programs.

This issue transcends political affiliation. When George Shultz, one of San Francisco’s greatest Republican public servants, was director of President Nixon’s Office of Management and Budget, he became worried about the amount of money Congress was proposing to spend. After some nights of tossing and turning, he called legendary staffer Sam Cohen into his office. Cohen had a long memory of budget matters and knew every zig and zag of budget history.

“Sam,” Shultz asked, “tell me something just between you and me. Is there any difference between Republicans and Democrats when it comes to spending money?” Cohen looked at him, furrowed his brow and, after thinking about it, replied, “Mr. Shultz, there is only one difference: Democrats enjoy it more.”

Yet no one, Democrat or Republican, enjoys placing our children and grandchildren and their children and grandchildren in harm’s way. No one wants to see the frightful storm of unfunded long-term liabilities destroy our economy or threaten the independence and authority of our central bank or tear our currency asunder.

Of late, we have heard many complaints about the weakness of the dollar against the euro and other currencies. It was recently argued in the op-ed pages of the Financial Times that one reason for the demise of the British pound was the need to liquidate England’s international reserves to pay off the costs of the Great Wars.

In the end, the pound, it was essentially argued, was sunk by the kaiser’s army and Hitler’s bombs. Right now, we—you and I—are launching fiscal bombs against ourselves. You have it in your power as the electors of our fiscal authorities to prevent this destruction. Please do so.
Note: The views expressed by the author do not necessarily reflect official positions of the Federal Reserve System. [END QUOTE]

Deficits To Explode In Coming Decades

The following chart provided by the Heritage Foundation, based on Congressional Budget Office projections, illustrates how federal deficits will explode over the next 70 or so years due to the skyrocketing costs of Social Security, Medicare and Medicaid. Sadly, this is the future we are leaving for our children and grandchildren.

Did You Know

Did you know?
I didn't know!
How could we?

Be sure to check the web site at the bottom

Did you know that 47 countries have reestablished their embassies in Iraq ?

Did you know that the Iraqi government currently employs 1.2 million Iraqi people?

Did you know that 3100 schools have been renovated,
364 schools are under rehabilitation,
263 new schools are now under construction;
and 38 new schools have been completed in Iraq ?

Did you know that Iraq 's higher educational structure consists of 20 Universit ies, 46 Institutes or colleges and 4 research centers, all currently operating?

Did you know that 25 Iraq students departed for the United States in January 2005 for the re-established Fulbright program?

Did you know that the Iraqi Navy is operational?

They have 5 - 100-foot patrol craft, 34 smaller vessels and a naval infantry regiment.

Did you know that Iraq 's Air Force consists of three operational squadrons,
Which includes 9 reconnaissance and 3 US C-130 transport aircraft (under Iraqi operational control) which operate day and night, and will soon add 16 UH-1 helicopters and 4 Bell Jet Rangers?

Did you know that Iraq has a counter-terrorist unit and a Commando Battalion?

Did you know that the Iraqi Police Service has over 55,000 fully trained and equipped police officers?


Did you know that there are 5 Police Academies in Iraq that produce over 3500 new officers every 8 weeks?

Did you know there are more than 1100 building projects going on in Iraq ?
They include 364 schools, 67 public clinics, 15 hospitals, 83 railroad stations, 22 oil facilities,
93 water facilities and 69 electrical facilities.

Did you know that 96% of Iraqi children under the age of 5 have received the first 2 series of polio vaccinations?

Did you know that 4.3 million Iraqi children were enrolled in primary school by mid October?

Did you know that there are 1,192,000 cell phone subscribers in Iraq and phone use has gone up 158%?

Did you know that Iraq has an independent media that consists of 75 radio stations, 180 newspapers and 10 television stations?

Did you know that the Baghdad Stock Exchange opened in June of 2004?

Did you know that 2 candidates in the Iraqi presidential election had a televised debate recently?

OF COURSE WE DIDN'T KNOW!

WHY DIDN'T WE KNOW?

BECAUSE OUR MEDIA WON'T TELL US!

Instead of reflecting our love for our country, we get photos of flag burning incidents at Abu Ghraib and people throwing snowballs at the presidential motorcades.

Tragically, the lack of accentuating the positive in Iraq serves two purposes:

It is intended to undermine the world's percepton of the United States thus minimizing consequent support; and it is intended to discourage American citizens.

---- Above facts are verifiable on the Department of Defense web site. http://www.defenselink.mil/
Did you know?

You Want To KNow More About Ms Obama

Please take some time and go to this link and read about Obama's Wife. Is this the person we want in our White House. Is she not one scary person. I want to thank my daughter-N-law who I am proud to say is a conservative professor for finding this for me. I had not been able to locate Ms Obama thesis. Princeton has locked it away/


http://www.politico.com/news/stories/0208/8642.html


Please pass this on.

A Concerned American

SEE THE HUMOR IN IT

---Subject: Democrats are more ethical

I believe the democrats have suddenly developed a keen sense of morality.

John Edwards has been banned from making a speech at the democratic convention for having an affair and lying about it.

In his place Bill Clinton will be speaking.

Now That Is Funny

Want to know where all the money is coming from?

The N100 million dinner for Obama
By Reuben Abati

"Some skeptical people have been writing nonsense and rubbish in the newspapers that what is my business with Obama. But they are free to continue to write petitions. It is not their money that we are spending. Ask them is it your money that we are spending?"

These are the exact words of Professor Ndidi Okereke-Onyiuke, Director General of the Nigerian Stock Exchange, and Chairman of the Africans for Obama 2008, a non-governmental Nigeria-based group that is campaigning vigorously, raising funds and mobilizing support for the US Democratic Presidential candidate, Barack Obama.

The landlady of the Nigerian Stock Exchange (she has been in that position for close to a decade) was defending the expensive fund-raising dinner that was organized for Barack Obama on Monday, August 11, at the Shell Hall of the MUSON centre in Lagos.

For the rest of this story please go to: www.GoodNeighborLaw.com

Permission to use granted by Jackson, editor of Point Blank News 8/21/08

There Is So Much Info Out There On These Two

Google Michelle Obama Princeton and just dig around on her, In my wildest dream I can not imagin her as the First Lady of our country... I would be ashamed if my Dad and his Dad were here to witness what is going on. How did we get to this point and more important how do we get ourselves back into what America is all about.

Change is needed but it is not what is going to happen if Obama is in. Here is the change that is needed... in my order of priority

1. Put God back in place
2. Close the borders and get control of who is coming into our country. This means we
have to reduce the inflow, stop the open entry unless they have a job and or we need
their expertice. We have long past needing hundreds of thousands of imagrants every
year. Inforce citizen ship rules. Speak english, read and write.
3. Deal with the illegals. Send them back and stop the free ride they are getting.
4. Get give aways programs under control. The government does not owe anyone a free
ride that is able to work. We have 10 million illegals in our country and a 5 % unemploy -
ment so send them back and put our people back to work. This is pretty simple.. Stop the
free ride program and folks will find a job. Who says my tax dollars should go to someone
is 30 years of able bodied but would rather take a hand out than work. This is not the
American way ... It is time to cut off entitlement programs.
5. Congress is out of control with their perks, retirement programs, spending allowances,
Term limits were put in place for Presidents and maybe it is time to do the same for
congressional leaders. For sure an age limit...





REVIEW & OUTLOOK
Obama on Clarence ThomasAugust 18, 2008; Page A14

Barack Obama likes to portray himself as a centrist politician who wants to unite the country, but occasionally his postpartisan mask slips. That was the case at Saturday night's Saddleback Church forum, when Mr. Obama chose to demean Supreme Court Justice Clarence Thomas.
Pastor Rick Warren asked each Presidential candidate which Justices he would not have nominated. Mr. McCain said, "with all due respect" the four most liberal sitting Justices because of his different judicial philosophy.

Mr. Obama took a lower road, replying first that "that's a good one," and then adding that "I would not have nominated Clarence Thomas. I don't think that he, I don't think that he was a strong enough jurist or legal thinker at the time for that elevation. Setting aside the fact that I profoundly disagree with his interpretation of a lot of the Constitution." The Democrat added that he also wouldn't have appointed Antonin Scalia, and perhaps not John Roberts, though he assured the audience that at least they were smart enough for the job.

So let's see. By the time he was nominated, Clarence Thomas had worked in the Missouri Attorney General's office, served as an Assistant Secretary of Education, run the Equal Employment Opportunity Commission and sat for a year on the D.C. Circuit Court of Appeals, the nation's second most prominent court. Since his "elevation" to the High Court in 1991, he has also shown himself to be a principled and scholarly jurist.

Meanwhile, as he bids to be America's Commander in Chief, Mr. Obama isn't yet four years out of the Illinois state Senate, has never held a hearing of note of his U.S. Senate subcommittee, and had an unremarkable record as both a "community organizer" and law school lecturer. Justice Thomas's judicial credentials compare favorably to Mr. Obama's Presidential résumé by any measure. And when it comes to rising from difficult circumstances, Justice Thomas's rural Georgian upbringing makes Mr. Obama's story look like easy street.

Even more troubling is what the Illinois Democrat's answer betrays about his political habits of mind. Asked a question he didn't expect at a rare unscripted event, the rookie candidate didn't merely say he disagreed with Justice Thomas. Instead, he instinctively reverted to the leftwing cliché that the Court's black conservative isn't up to the job while his white conservative colleagues are.

So much for civility in politics and bringing people together. And no wonder Mr. Obama's advisers have refused invitations for more such open forums, preferring to keep him in front of a teleprompter, where he won't let slip what he really believes.

Well Said and worth the Read, Sums it up nicely

Dear Friends:
My name is Joe Porter. I live in Champaign, Illinois. I'm 46 years old, a born-again Christian, a husband, a father, a small business owner, a veteran, and a homeowner. I don't considerable myself to be either conservative or liberal, and I vote for the person, not Republican or Democrat.



I don't believe there are "two Americas" - but that every person in this country can be whomever and whatever they want to be if they'll just work to get there - and nowhere else on earth can they find such opportunities.



I believe our government should help those who are legitimately downtrodden, and should always put the interests of America first.The purpose of this message is that I'm concerned about the future of this great nation.



I'm worried that the silent majority of honest, hard-working, tax-paying people in this country have been passive for too long. Most folks I know choose not to involve themselves in politics. They go about their daily lives, paying their bills, raising their kids, and doing what they can to maintain the good life.



They vote and consider doing so to be a sacred trust. They shake their heads at the political pundits and so-called "news", thinking that what they hear is always spun by whoever is reporting it. They can't understand how elected officials can regularly violate the public trust with pork barrel spending. They don't want government handouts.



They want the government to protect them, not raise their taxes for more government programs.We are in the unique position in this country of electing our leaders. It's a privilege to do so. I've never found a candidate in any election with whom I agreed on everything. I'll wager that most of us don't even agree with our families or spouses 100% of the time. So when I step into that voting booth, I always try to look at the big picture and cast my vote for the man or woman who is best qualified for the job.



I've hired a lot of people in my lifetime, and essentially that's what an election is - a hiring process. Who has the credentials? Whom do I want working for me? Whom can I trust to do the job right?I'm concerned that a growing number of voters in this country simply don't get it. They are caught up in a fervor they can't explain, and calling it "change."Change what?, I ask.



Well, we're going to change America, they say.In what way? I query.We want someone new and fresh in the White House, they exclaim. So, someone who's not a politician?, I press.Uh, well, no, we just want a lot of stuff changed, so we're voting for Obama, they state.



So the current system, the system of freedom and democracy that has enabled a man to grow up in this great country, get a fine education, raise incredible amounts of money and dominate the news and win his party's nomination for the White House - that system's all wrong?No, no, that part of the system's okay - we just need a lot of change.And so it goes.



"Change we can believe in." Quite frankly, I don't believe that vague proclamations of change hold any promise for me. In recent months, I've been asking virtually everyone I encounter how they're voting. I live in Illinois, so most folks tell me they're voting for Barack Obama. But no one can really tell me why - only that he's going to change a lot of stuff.



Change, change, change. I have yet to find one single person who can tell me distinctly and convincingly why this man is qualified to be President and Commander-in-Chief of the most powerful nation on earth - other than the fact that he claims he's going to implement a lot of change.We've all seen the emails about Obama's genealogy, his upbringing, his Muslim background, and his church affiliations.



Let's ignore this for a moment.Put it all aside. Then ask yourself, what qualifies this man to be my president? That he's a brilliant orator and talks about change?CHANGE WHAT?Friends, I'll be forthright with you - I believe the American voters who are supporting Barack Obama don't have a clue what they're doing, as evidenced by the fact that not one of them - NOT ONE of them I've spoken to can spell out his qualifications.



Not even the most liberal media can explain why he should be elected. Political experience? Negligible. Foreign relations? Non-existent. Achievements? Name one.Someone who wants to unite the country?



If you haven't read his wife's thesis from Princeton, look it up on the web. This is who's lining up to be our next First Lady? The only thing I can glean from Obama's constant harping about change is that we're in for a lot of new taxes.For me, the choice is clear. I've looked carefully at the two leading applicants for the job, and I've made my choice.



Here's a question - where were you five and a half years ago? Around Christmas, 2002. You've had five or six birthdays in that time. My son has grown from a sixth grade child to a high school graduate. Five and a half years is a good chunk of time. About 2,000 days. 2,000 nights of sleep. 6, 000 meals, give or take.John McCain spent that amount of time, from 1967 to 1973, in a North Vietnamese prisoner-of-war camp



.When offered early release, he refused it. He considered this offer to be a public relations stunt by his captors, and insisted that those held longer than he should be released first. Did you get that part? He was offered his freedom, and he turned it down. A regimen of beatings and torture began.



Do you possess such strength of character? Locked in a filthy cell in a foreign country, would you turn down your own freedom in favor of your fellow man? I submit that's a quality of character that is rarely found, and for me, this singular act defines John McCain.Unlike several presidential candidates in recent years whose military service is questionable or non-existent, you will not find anyone to denigrate the integrity and moral courage of this man.



A graduate of Annapolis, during his Naval service he received the Silver Star, Bronze Star, Purple Heart and Distinguished Flying Cross. His own son is now serving in the Marine Corps in Iraq. Barack Obama is fond of saying "We honor John McCain's service...BUT...", which to me is condescending and offensive - because what I hear is, "Let's forget this man's sacrifice for his country and his proven leadership abilities, and talk some more about change.



"I don't agree with John McCain on everything - but I am utterly convinced that he is qualified to be our next President, and I trust him to do what's right. I know in my heart that he has the best interests of our country in mind.



He doesn't simply want to be President - he wants to lead America, and there's a huge difference. Factually, there is simply no comparison between the two candidates. A man of questionable background and motives who prattles on about change can't hold a candle to a man who has devoted his life in public service to this nation, retiring from the Navy in 1981 and elected to the Senate in 1982.



Perhaps Obama's supporters are taking a stance between old and new. Maybe they don't care about McCain's service or his strength of character, or his unblemished qualifications to be President. Maybe "likeability" is a higher priority for them than "trust".



Being a prisoner of war is not what qualifies John McCain to be President of the United States of America - but his demonstrated leadership certainly DOES.Dear friends, it is time for us to stand. It is time for thinking Americans to say, "Enough." It is time for people of all parties to stop following the party line. It is time for anyone who wants to keep America first, who wants the right man leading their nation, to start a dialogue with all their friends and neighbors and ask who they're voting for, and why.



There's a lot of evil in this world. That should be readily apparent to all of us by now. And when faced with that evil as we are now, I want a man who knows the cost of war on his troops and on his citizens.



I want a man who put s my family's interests before any foreign country.



I want a President who's qualified to lead.I want my country back, and I'm voting for John McCain.