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The Obama Agenda: The Fall of America Through Orchestrated Crisis

Posted By Liz Blaine On June 13, 2010 @ 4:00 pm In NewsReal Blog | 2 Comments

Barack Obama and Congressional Democrats are deliberately and unapologetically engaging in economic sabotage; simultaneously targeting numerous sectors of the American economy using orchestrated systemic crisis in an effort to overwhelm the U.S. economy and effect the destruction of capitalism and America from within. By using the Cloward-Piven Strategy to promote economic and social change through the exploitation of misfortune, national crisis and disorganization the Left is advancing government as the tool for reorganization. The tactics and intended consequences  of the Obama administration include:

  • Strategically planned “crises” to systematically takeover private industry.
  • Flooding government with impossible financial burdens until the debt becomes unsustainable.
  • Destruction of the middle class and sustained unemployment through “bailouts” and “stimulus” packages promoted as “revitalization of the American economy.”
  • Devastation of the housing and financial system through the continued requirement of subprime mortgages to low-income Americans who have little to no hope of repayment
  • Expansion of federal powers over states and individuals.
  • Expansion of the powers of the Executive.
  • Overloading electoral systems with successive tidal waves of new voters.
  • Complete control over the media through “net neutrality” and the “reinvention of journalism
  • Promoting social unrest and violence.

First promoted in 1966 by Marxist Columbia University professors Richard Andrew Cloward and Frances Fox Piven, the Cloward-Piven Strategy seeks to hasten the destruction of capitalism in America by expanding the welfare system to the point of collapsing the economy and implementing socialism by nationalizing large sectors of private industry. In their Nation article, The Weight of the Poor: A Strategy to End Poverty, Cloward and Piven explicitly defined the kind of “crisis” they sought to create:

By crisis, we mean a publicly visible disruption in some institutional sphere. Crisis can occur spontaneously (e.g., riots) or as the intended result of tactics of demonstration and protest which either generate institutional disruption or bring unrecognized disruption to public attention.

No matter where the strategy is implemented, it shares the following features:

* The offensive organizes previously unorganized groups eligible for government benefits but not currently receiving all they can.

* The offensive seeks to identify new beneficiaries and/or create new benefits.

* The overarching aim is always to impose new stresses on target systems, with the ultimate goal of forcing their collapse.

The radical Left worked insidiously for decades to establish the needed framework to dismantle the capitalist system in America as outlined in the Cloward-Piven Strategy. Concentrated efforts were devoted to increasing welfare rolls and expanding the Community Reinvestment Act (CRA), established in 1977 under the Carter administration. According to Discover The Networks, the CRA,

For purposes of “racial equality” – outlawed redlining and required banks to extend credit to undercapitalized, high-risk borrowers in low-income, mostly-minority areas. The Act also established extensive government oversight to monitor how well banks were complying with its mandates.

Any bank wishing to expand or to merge with another was required to first demonstrate that it had complied with all CRA requirements. Final approval for bank expansions or mergers could be held up or derailed entirely by complaints — however frivolous or unfounded — where community groups like ACORN or the Greenlining Institute accused a bank of having violated the CRA.

The New York Post explains what happened next:

As ACORN ran its campaigns against local banks, it quickly hit a roadblock. Banks would tell ACORN they could afford to reduce their credit standards by only a little — since Fannie Mae and Freddie Mac, the federal mortgage giants, refused to buy up those risky loans for sale on the ’secondary market.’

That is, the CRA wasn’t enough. Unless Fannie and Freddie were willing to relax their credit standards as well, local banks would never make home loans to customers with bad credit histories or with too little money for a down-payment.

So ACORN’s Democratic friends in Congress moved to force Fannie Mae and Freddie Mac to dispense with normal credit standards. Throughout the early ’90s, they imposed ever-increasing subprime-lending quotas on Fannie and Freddie….

ACORN’s intimidation tactics, and its alliance with Democrats in Congress, triumphed. Despite their 1994 takeover of Congress, Republican attempts to pare back the CRA were stymied….

ACORN had come to Congress not only to protect the CRA from GOP [Republican] reforms but also to expand the reach of quota-based lending to Fannie, Freddie and beyond….

[In June 1995] the Clinton administration announced a comprehensive strategy to push homeownership in America to new heights — regardless of the compromise in credit standards that the task would require. Fannie and Freddie were assigned massive subprime lending quotas, which would rise to about half of their total business by the end of the decade.

Despite warnings of impending financial collapse, Democrat after Democrat continued to cover up and attack the regulations to protect Fannie Mae and Freddie Mac, denied the existence of the housing bubble and continued to advocate for government expansion of home ownership programs. The CEO of Fannie Mae even publicly described the “family” connection between Fannie and Democrats, specifically Barack Obama and the Congressional Black Caucus.

The proliferation of risky subprime loans, to underqualified borrowers eventually led to the financial collapse of Fannie Mae, Freddie Mac, the mortgage industry and many of the banks forced to issue subprime loans. The Cloward-Piven strategy is the taproot that triggered the financial crisis of 2008. 

Francis Fox Piven continues to encourage use of the strategy. During the foreclosure crisis, Piven advocated civil disobedience by home owners facing foreclosure as a way to leverage the crisis to their benefit. Not surprisingly, ACORN was listening.

(Note: Audio of Piven is difficult to hear without headphones.)

Seeing the opportunity to use the Cloward-Piven strategy to fulfill the Left’s ultimate agenda, in the fall of 2008 Barack Obama and Congressional Democrats positioned themselves to force the collapse of the American economy. Rushing from the campaign trail, Obama and Congressional Democrats advanced the passage of the $700 billion Troubled Asset Relief Program (TARP) nationalizing the mortgage industry and a large portion of the banking industry, while implementing Obama’s planned repeal of Clinton’s welfare reform.

The rapid escalation of the downfall of capitalism and the American economy was set in motion. As the Federal Treasury outlayed billions of dollars to finance the federal takeovers of private industry, U.S. debt increased dramatically, well beyond the ability of current generations to repay. Future generations of Americans will be indentured serfs forced to repay the debt accumulated under the Obama adminstration. Despite TARP’s passage and implementation late in President George W. Bush’s term, Obama has ignored the law, as written, refusing to return the loans repaid to the American people, instead spending the money at his whim to ensure the “crisis” will remain a financial burden to the American people.

As I wrote in Wet Dreams of the Great Marxist Revolution (Part 1, Part 2), upon assuming office Obama quickly moved to consolidate power using manufactured crises to nationalize many of the major American economic sectors: Banking, insurance, transportation, energy, healthcare, finance and education. Representative Michelle Bachmann (R-MN) recently told CBSFace the Nation anchor Bob Schieffer,

Now we have the federal government taking over ownership or control of 51 percent of the American economy. This is stunning. Prior to September of 2008, 100 percent of the private economy was private.

President Obama’s plan to ”fundamentally transform” the American economy was evident long before the 2008 election.  In a 2001 Chicago Public Radio Interview Obama was already examining how best to use of legislation to bring about a Redistribution of Wealth.

Seizing the chance to increase the constituency of voters dependent on big government while crippling American taxpayers with debt, Obama and Congressional Democrats rushed a conveniently prepared 1073 page $819 billion Stimulus Package through the House of Representatives within eight days of President Obama’s inauguration. The “emergency”  legislation passed the Senate eleven days later, and despite being marketed as critical to saving the U.S. economy the legislation sat on President Obama’s desk for four days before signing while he and the First Lady partied it up in Chicago.

Generations of American taxpayers are now indebted to repay billions of dollars Democrats distributed through the Stimulus to their contributors, unions, teachers, and community organization/social activist groups such as ACORN. Billions of Stimulus dollars to “save” or create jobs were extended primarily to the public sector leaving the private sector with an ever increasing rise in unemployment.  Earnings for government jobs soared 12% above the standard compensation for private sector jobs. According to Obama’s economic advisor Robert Reich, the Stimulus was never meant to benefit all Americans. Reich declared recovery jobs were not for “white male construction workers.” The recipients of the Democrats’ largesse are expected to loyally vote Democrat to protect their bloated salaries and pensions that are contributing to the insolvency of America.

Unemployment in the private sector is rapidly spiraling downwards with no signs of recovery. We have 15 million unemployed workers, 6.7 million of whom have been unemployed for over 26 weeks. The month of May recorded a 431,000 increase in new jobs, of which 411,000 were temporary Census jobs. The Obama adminstration’s “rescue” plan increased unemployment benefits to 99 months, thereby eliminating the incentive to work, increasing number of beneficiaries dependent on big government, and amassing increased financial burden on the taxpayer.

The Stimulus, “jobs” bills and bailouts are failing to revitalize the American economy or reduce unemployment in the private sector. The nation is facing sustained unemployment at 10% or greater. This sustained unemployment, forced growth of public over private sector jobs, increased taxation that must occur to pay off U.S. debt will be the death knell of the middle class. The Obama administration’s execution of the Cloward-Piven Strategy is straining the system to the point of collapse.

The Federal Reserve’s response to America’s mounting national debt has been to print ever-greater quantities of money, a strategy for increasing the money supply that leads to inflation and the devaluation of currency. Moody’s Investors Service warned the US is close to losing its triple-A credit status if the country doesn’t get a grip on its deficit spending.

Spending has its limits as we’ve seen in Europe. Thirty-two U.S. states are on the brink of insolvency as they can no longer afford to run their governments. Under President Obama we have witnessed the first cross-generational theft of taxpayer income, and a redistribution of wealth from the producers to the non-productive. It is bitter irony that the American taxpayer is funding the destruction of the American economy and the loss of their  freedom.

With the intent to redistribute wealth and vastly expand the role of government, Obama and the Democrat Congress passed healthcare reform. Known as Obamacare, it is the ultimate actualization of the Cloward-Piven strategy. It is designed to overwhelm and collapse our social support network by forcing millions of Americans to become dependent upon government assistance through the threat of penalty by fine or imprisonment for failure to purchase the service. Obamacare will accelerate the finanical ruin of hospitals and doctors across the country, ration medical care, accelerate healthcare costs, and restrict access for elderly and low-income patients.

Like healthcare reform has nothing to do with healthcare, cap-and-trade environmental legislation is not about global warming. Its purpose is government control of the economy and the redistribution of income. The legislation mandates massive transfers of wealth from industrialized Western Nations to Third World countries. In concert with Obamacare, cap-and-trade will complete Barack Obama’s “fundamental transformation of America.” We, as a country, may never be the same.

The effects of cap-and-trade legislation on the American economy will be catastrophic. Reducing  Americans to living in a Third World country as technological advances of the 20th century will be foregone for exorbitant taxation designed to turn Democrats and their friends into billionaires while American taxpayers become serfs. The non-productive citizens of society have been assured they will receive reimbursements for energy taxes paid, while the rest of America subsidizes their energy use.

Former Obama ”Green” Czar Van Jones defines the goal of cap-and-trade and the Green movement as complete revolution away from capitalism.

Right now we’re saying we want to move from suicidal gray capitalism to some kind of eco-capitalism….Will that be enough? No, it won’t be enough. We want to go beyond systems of exploitation and oppression all together. But that’s a process.

And I think what’s great about the movement that’s beginning to emerge is that the crisis is so severe… The Green economy will start off as a subset, and we’re going to push it and push it and push it until it becomes the engine for transforming the whole society.

Is there any wonder why Obama ignored the Gulf oil “crisis” for 38 days then denounced, blamed, and threatened British Petroleum with civil and criminal lawsuits? The oil spill serves the Left’s radical agenda. His inaction on the ”crisis” promotes the destruction of the fishing and tourist industries in the region thereby creating secondary crises, provides a ready excuse to shut down all new oil drilling, and will effectively raise the price of oil and food across the country bringing more Americans to a financial brink forcing dependence on food stamps, welfare, and other government programs. Barack Obama intends to bankrupt not only America and its people, but the coal industry.

And if you don’t believe Obama, listen to Representative Maxine Waters.

But to guarantee the transformation of America a rapid expansion of the constituency of new voters dependent on big government must continue. Moving to overwhelm government agencies with unsustainable financial burdens, the Obama administration is aggressively pressing for amnesty to 12 million illegal immigrants and their families. To contribute successive tidal waves of new voters the administration hopes to grant Puerto Rico statehood. These efforts alone will add over 24 million new voters and a several trillion dollars in additional welfare coverage, food stamps, healthcare, education, and income redistribution through Earned Income tax credits.

If the “crises” to date don’t overwhelm and break the American economic system, the expansion to voter rolls and welfare recipients will. When the riders in the cart outnumber those pulling the cart, the cart stops moving. 

The Obama adminstration seeks to fulfill Cloward and Piven’s ultimate goal, the annihilation of capitalism and America from within. Since January 20, 2009 the administration orchestrated crisis after crisis using fear and urgency of calamity to force economic and social change on the American people. This is not “change we can believe in.” This is not change we want. Unless the American people halt the onslaught of destructive forces created by Barack Obama and the Democrats in the November elections our generation will witness the fall of America through orchestrated crisis.


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