30 years of suffering for the Nicaraguan people

 
Speech given by Daniel Ortega at 30^th celebration of the Nicaraguan Revolution July 17, 2009.
Because the truth is that our sister republic of Bolivia and Venezuela have come to the aid of the people of Nicaragua – that is the truth. We would be without energy in the entire country. There wouldn't be light in Nicaragua nor would companies be able to function if it were not for the solidarity of Hugo Chavez and Fidel who were the ones responsible for the formation of the ALBA alliance (a leftist Latin American Alliance). And when the United States decided to cut the last funds of the millennium, President Hugo Chavez immediately said we are going to help Nicaragua, and so we counted on Venezuela to generously give to Nicaragua 50 million dollars to defend itself in these difficult times.
President Hugo Chavez just called, and he sent a message that we are going to read and publish. In the telephone message that he just made, he called to send us his greeting. He is very happy for our 30^th anniversary. He is watching thousands of Nicaraguans through channel Telesur. He congratulates Daniel and all the people of Nicaragua. He is sorry he could not be present because of sudden health problems at the last minute. Soon we will be together Long live the people of Nicaragua. Long Live Sandino, signs Hugo Chavez and the president of the Republic of Bolivia 1:30 pm Nicaraguan time.
July 17, 2009 marks the 30^th anniversary of the Sandinista Revolution so says Ortega. My wife (who is from Nicaragua) and I used to travel to Nicaragua frequently before the revolution to enjoy its people and its culture. We have been back to Nicaragua since on several occasions, but Nicaragua is not the country it used to be. The destruction of its economy and the country can be attributed to one person Daniel Ortega, and Daniel Ortega's rise to power can be attributed to one man Jimmy Carter.

Ortega speaks of the 30th year of the revolution, yet for most of those years, the left in Nicaragua wasn't even in power.

I have followed Nicaragua since the 70s, so in commemoration of its 30^th anniversary, I thought I would post a few pieces I wrote about Nicaragua.
What the elections in El Salvador mean (including Nicaragua) click here

Fraud in Nicaragua – Continuing Jimmy Carter's legacy click here

Obama's new buddy – Daniel Ortega click here

One of the traditions in Nicaragua, and only in Nicaragua click here

I am not buying….

"If it doesn't make sense, it's not true" - Judge Judy

The stock market is up for the fifth day in a row, but I am not buying. In a bear market, there will always be bear market rallies. For years investors have been advised to diversify and to buy and hold in bear markets and in bull markets because this way investors purchase stocks at varying prices. In the long run, the investor should come out ahead so goes the conventional wisdom. This is advice that is not so easy to follow. Since July 2007, the market has lost 50% of its value, and every market class has fallen, (ie: stocks, bonds, real estate) except for cash. As companies continue to layoff, the economy continues to deteriorate, and the market continues to decline I suppose the advice would be don't worry, hold on, you can't time the market. In my opinion, that is just plain stupid advice.

Before the Dot-com crash, I was 80% in the market, and two months before the dot-com crash I was 80% out of the market. In other words, I missed most of the crash. I knew valuations were way too high, and I patted myself on the back for avoiding what could have been a train wreck. I have to admit I was lucky in timing it so perfectly. Then comes 2007, and although not as obvious as the Dot-com crash, there were still warning signs. When Bear-Sterns was purchased by JP Morgan, I should have completely exited the market. It was a harbinger of things to come. I also understood as we approached the election, if it appeared that Obama would win the election, the markets would react negatively. There was indeed an Obama effect. These events did come true, and the markets continued to tank. Instead of instilling confidence in the markets, Obama fomented panic. I did not exit the market at the right time, and like many I was hit by the downturn. I held on in the hopes of selling on market strength, but the market continued to plummet. I sold a considerable portion of my portfolio even though the market was falling, because I had no confidence in the current state of affairs and the incoming administration. By doing this I avoided continued deterioration of my portfolio.

I am now struck with a form of paralysis as to what to do now. This has never happened to me before because I could always anticipate that sooner or later the market would rebound. I see the market go up now, but there remains an uneasy feeling about the current state of affairs in which we find ourselves. We have a president whose radical left agenda includes totally reshaping America into a socialistic utopia. Obama's call for cap and trade, taxes on the rich, socialized health care, and the list goes on do not bode well for an economic recovery. And, if an economic recovery does take place, hyperinflation will set in from the massive spending and borrowing undertaken by our government. In the last five months, the money supply has almost tripled, 271%. The Fed is buying up another trillion dollars of treasury bonds to further expand the money supply. This will move the money supply up an additional 60%. Banks are not lending right now, but when banks do begin to circulate this money, the result will be double digit inflation. Inevitably this will halt any recovery and we will begin to see phase two of Jimmy Carter only worse – stagflation déjà vu.

Even Democrats are beginning to have reservations about Obama's big spending plan as reported by Politico:

There is rising doubt among Democrats — particularly moderates already concerned about the big costs and deficits called for in Obama's budget — that either Obama or Washington have enough bandwidth this year to stimulate the economy, overhaul the failed financial sector and move on to a far-reaching domestic agenda.

AIG

The latest illustration of the incompetence of this administration is the dog and pony show we are witnessing with the bonuses of AIG. We hear how outraged Obama and his cronies are with the paying of AIG's retention bonuses. The bonuses represent 1/10th of 1% of the total 170 billion dollar bailout. The only reason the administration is outraged is because there was an outcry from the public over the weekend. Where was the outrage in the 9,000 earmarks in the omnibus bill? Or where is the outrage with the Fannie Mae and Freddie Mac bonuses? The one problem with all of this hoopla is the congress and the administration knew all about it. Senator Chris Dodd inserted the following amendment into the TARP bill:

The prohibition required under clause (i) shall not be construed to prohibit any bonus payment required to be paid pursuant to a written employment contract executed on or before February 11, 2009, as such valid employment contracts are determined by the Secretary or the designee of the Secretary

The adminstration knew bonus payments were going to be paid, and so they allowed them to be paid. if the administration were so concerned, why now? why didn't they question it at the time of the bailout? They knew about it. The payments of these bonuses were in the filings of AIG a year ago.

There are two things of note here 1) these are contractual obligations – since AIG did not claim bankruptcy, these contracts are still enforceable. AIG cannot just abrogate enforceable contracts without massive lawsuits and 2) these are retention bonuses. Retention bonuses are paid to keep employees from leaving in order to prevent work stoppage or retraining new personnel. The administration is feigning outrage to try and assuage the public fear and divert attention elsewhere.

In Actuality, there are 400 million dollars in bonuses that AIG intends to payout. In defense of the retention bonuses, CEO Edward Liddy said the following,

We have to sell 70% of our company." But to make those businesses saleable, "you have to keep the people in place.... If you don't use retention bonuses -- those people are some of the best in the insurance industry, they will go elsewhere and we won't have anything to sell ... and we can't pay back the federal government. We want to pay back the federal government.

I have been paid retention bonuses in the past, and retention bonuses are for the exact purpose stated by Liddy.

Obama has noted that his approval rating is dropping and his disapproval rating is rising as Rasmussen reports, so he intends once again (like he did last week) to appear on primetime to try and justify his actions. He seems to be doing a lot of that lately.
To do this, he intends to usurp American Idol angering many of Idol's fans including me. Tonight, he plans to be on Jay Leno. He sounds worried. Senator Chuck Grassley (R-Iowa) wants the recepients of these bonuses to commit Hare Kare and Congress wants to impose a 90% tax on said bonuses. But, this outrage is to cover up an even bigger sin by AIG.

The beneficiaries of the government bailout include according to the Wall Street Journal two dozen foreign and U.S. financial institutions. These institutions received $50 billion dollars. Foreign banks include Germany's Deutsche Bank AG and French bank Société Generale SA and Scotland Group. AIG has become a clearing house for these foreign institutions. Where is the outrage here?

The question should not be why did AIG pay retention bonuses? but the questions should be why did we bailout AIG to the tune of 170 billion dollars in the first place? and why are we bailing out foreign banks with the bailout of AIG? And why didn't tax cheat and treasury secretary Tim Geitner bring this up when he drafted the AIG bailout bill?

This AIG bailout and bonus outrage do not pass the smell test.

This could have been an opportunity for Republicans, but I am wondering if they have any "cojones" left. Many of the Republicans were complicit in this bailout and I do not hear the outrage from them. Have they learned anything?

The Republicans have an opportunity to return to their conservative principles, but I do not see anything as of yet. Barack Obama's approval rating may be declining, but if there is no viable alternative, will he be around for a second term? Why would I or anyone want to invest in this environment?

Where is the change?

Barack Obama snubs the Prime Minister of Britain and Barack's message to the Stock Market

"If I had only followed CNBC's advice, I'd have a million dollars today provided I'd started with $100 million." Jon Stewart, The Daily Show

When I attended college, I received a scholarship to travel to Spain with the Experiment in International Living. I lived with a Spanish family and learned about Spanish culture or Spanish women as some have suggested. We were advised to find a gift that would be appropriate to give our new family – something that would be representative of the United States. I purchased a set of proof coins from the United States Mint. It was perfect. Proof coins are different from uncirculated coins in that they are made for collectors, and only a limited quantity are made each year. It demonstrated that I put some thought into what I wanted to give, and I wanted to make sure it truly represented the United States.

It is tradition when a new president meets a chief of state gifts are exchanged. Makes sense – right? I guess it all depends on what you give. What does Barack Obama give the Prime Minister of Britain Gordon Brown - a box of 25 DVDs which include ET, the Wizard of Oz and Star Wars, DVDs which you can buy for under $6.00 each at amazon.com. Star Wars is about $14.00. Total price of the DVD set about $160.00, but it is eligible for free super savers shipping. As Iain Martin of the U.K. writes, " "Oh give me strength, we do have television and DVD stores on this side of the atlantic." Oh, and Mr. President, Europe uses a different DVD format than the United States. When I visited the Reagan library, you can't help but notice all the gifts from the foreign dignitaries - each gift unique and representative of the specific country. Imagine if Barack Obama received this gift. Could you imagine seeing all the wonderful gifts from other chiefs of state at the opening of his presidential library, and then in the corner, a box of DVDs. One only has to wonder if this is the gift he gives our friends whom he apparently must disdain, what will he give President Mahmoud Ahmadinejead of Iran whom he admires?

Barack Obama on the stock market.

Gary weiss, a former senior writer of business week, wrote the following in his blog post, Obama needs to channel Richard Nixon.

What's missing is the kind of helpful nudge that came from none other than Richard Nixon in 1970, during the depths of what then seemed like a pretty deep recession. Nixon said: "Frankly, if I had any money, I'd be buying stocks right now." The market soared

Barack must have listened. A few hours later, Barack Obama said the following:

What you're now seeing is ... profit and earnings ratios are starting to get to the point where buying stocks is a potentially good deal if you've got a long-term perspective on it,"

Well, Mr president – what is a profit and earnings ratio? Anybody who has a modicum of intelligence regarding the stock market knows that the basic valuation metric for stocks is the price/earnings ratio not the profit/earnings ratio. A profit/earnings ratio is meaningless. There is no such ratio. How is that for giving confidence to the market? The market reacted - it fell. And, for Obama's long term horizon, I wouldn't invest any new money in the market until competence returns to the presidency. According to Bloomberg, The Dow Jones Industrial Average has fallen 20% since inauguration day, the fastest drop under a new president in 90 years surpassing Herbert Hoover and Jimmy Carter. The American people have hired the most incompetent president of all time. I said before the election that Barack Obama will go down as the worst president this country has ever known, and I believe that even more now. I was hoping I would be wrong.

Meanwhile, Retirees, Investors, and people of all stripes are seeing their life savings evaporate before their very eyes. I expected the market to fall, but not like this. The Wall Street Journal says that Obama's radicalism is killing the Dow. We have always heard about the buy and hold strategy for stocks – but what if that entails complete incompetence in the presidency. Do we still buy and hold? Barack Obama inherited a problem, that is for sure – but by his agenda, he has compounded the problem by his attempt in transforming our market economy to an economy that history has already proven does not work and during precarious economic times. Barack Obama is basically winging this presidency. As of this writing, the Dow is down another 104 points and sits at 6,489 down from 9,654, 3,165 points since the Nov. 4^th election, a whopping 33%.I hope the American people wise up.

Ortega's new buddy

The Marxist-Socialist anti-semite and the newly elected Nicaraguan president Daniel Ortega met with Ahmadinejad. He boasted with Ahmadinejad that "Israel was a created state." Of course, Ahmadinejad doesn't recognize the holocaust. Let's not forget the pogroms against the Jews that occured decades earlier in Russia that started the political movement "Zionism." Israel was barren before the Jews emigrated to Israel. Iraq was also a created state. Can anyone guess to which direction Nicaragua is headed?

In "El Nuevo Diario" Carlos Tünnermann Bernheim writes (translation below Spanish) in his article "El futuro del país no puede ser regresar al pasado" or "The future of the country cannot be to return to the past." http://www.elnuevodiario.com.ni/2007/06/13/opinion/51116

Ahora, nuevamente, pareciera que se cierne el peligro de ingresar en otra confrontación, por la manera como se está manejando nuestra política exterior y los acuerdos que firma el Presidente, que incluyen no sólo cooperación económica sino también política...

Now, once again it seems the danger of joining another confrontation is hovering over us, by the way our foreign policy is being managed and from the agreements our president is signing, which include not only economic cooperation but also political cooperation...

It does seem Nicaragua is going backwards. When Ortega took power in 1979, he shut down the major newspaper of Nicaragua, "La Prensa." which at the time was anti-sandinista. I wonder how long it will take before Ortega starts censuring the press like his friend Hugo Chavez.

Ortega only won with a 38% margin, far from a mandate. And it was only through backroom deals that he only needed a 38% margin to win. From the blogs in Nicaragua, and the posts to particular articles, one gets the feeling, that the Nicaraguans are scared. They see what path Ortega is taking in Nicaragua, and they see visions of the past. In the previous election, Ortega's opposition placed banners that read, "Remember the past." The problem is much of the electorate was too young or not of voting age to remember the past. So far, it does not look good for Nicaragua.

We can thank Jimmy Carter for both of these despots, Ortega and Ahmadinejad. It was Carter who didn't look at the hostage crisis as an act of war, and instead of invading Iran, he let the hostage crisis drag on for 444 days, and it was Carter who was responsible for Ortega's rise to power in 1979 by removing support from the Somoza regime and giving support to the Sandinistas. But, what can you expect? Liberals love cozing up to dictators, and everything to them is a "police action." They don't even think that a "war on terror" exists. The planned attacks on Fort Dix and JFK airports were concoctions drummed up by the Bush administration.

The only thing that will convince the liberals will be perhaps a nuclear bomb detonated in a couple major cities, but then again that might not even wake them up.

Just one last statement, "Bush close the borders!" Pay attention! This is a national security issue.

A dictator in Venezuela?

If you haven't read about Chavez shutting down the only television station RCTV that opposes chavez, read the following timeline of a Fox Journalist.

http://www.foxnews.com/story/0,2933,275912,00.html

11:58 p.m.: Like clockwork, the channel goes off the air. The music stops; the TV now features a spinning “TVes” logo, which stands for the new socialist, Chavez controlled TV station.

People are crying and screaming. Grown men have tears spreading down their cheeks. The night is steamy and tempers begin the flare. People seem to understand that they have lost more than their favorite Venezuelan network; they are continuing to lose their country to a man intent on becoming a dictator.


Jimmy Carter and Cindy Sheehan must be jumping up and down for joy. I wonder what Ortega is thinking in Nicaragua, of course he doesn't have the oil Chavez has. Pay attention United States, Chavez presents a real threat to our security especial the way he has been using his oil money to buy the loyalty of other Latin American Counrities.