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He Fed Them, They Abandoned Him

"Fallen from his high estate
And welt'ring in his blood
Deserted at his utmost need
By those his former bounty fed
On the bare earth expos'd he lies
With not a friend to close his eyes"
-John Dryden

It all seems to be falling apart for President Obama, whose party threatens to abandon him at the moment he most looked like a leader. The compromise is chock full of nothing but goodies for Democrats, who continue to live by the code of winning votes over having a winning nation. The notion that people should be punished for their success is not only faulty economic theory, but provides the convenient excuse for those less fortunate that not only is their lot in life not their fault but it's those rich people that are stealing your money. We hear it in speech and commentary: "people are without work through no fault of their own."

It's possible that you worked for a company that extended itself, but no job is ordained. You may not have the job of your dreams for a variety of reasons, but society doesn't owe us the job of our dreams. The mantra for Americans has to be "handle your business", which underscores the fact that at the end of the day the person in the mirror must make it happen. I really wish Americans could see through the smokescreen. We are being ripped apart by people that peddle in jealousy that itself says to certain Americans you don't have what it takes, so collectively let's take from those that do.

It's ripping this nation apart. The main cheerleader for this line of thinking has been Barack Obama. If it were not for the Tea Party movement there is a good chance we could be debating how high to raise taxes on the rich and supposed rich. This is the time for the nation to come on the offensive. Forget that socialist dream of divvying up all the wealth between those that earned it and those that dropped out of high school, wasted time in high school, or squeaked out of college with a gentleman's C but no real ambition or drive. Forget about overpaying so-called civil servants and saddling local, state, and the federal government with financial obligations that they can't meet.

But, that's not how we enter the week, where rejected politicians are the ones holding America hostage. They are getting everything they want, but hatred and guilt still have them divided. The President is battered so badly that even he abandoned his own press conference Friday evening.
 
But it's those elected leaders that hate the foundation of America, the foundation of achievement, that are prepared to walk past a broken President lying there with his eyes wide open. I still think the compromise will go through, but to see the level of disdain for success among our very own "leaders" is scary stuff.

The good news is that economic reality is jarring even dyed in the wool progressives like Los Angeles mayor Antonio Villaraigosa, whose angry tirades against the LA school teachers union made news all over the country.

"The time is now for the most powerful defenders of the status quo, and that's what the teachers' unions are, to come on board in our effort to reform and transform our schools. I don't think anyone in the United States of America can say I'm anti-union. I worked for the teachers union. But I also believe, and believe strongly, that we're going to have to change the oppositional nature of what the teachers' union has done."- Villaraigosa

In addition to attacking the uncompromising union on several occasions last week, the mayor stood up for the White House. His foray into national politics hints at a couple of things in the future. First, he probably sees himself as a potential candidate for the White House one day, and secondly a great organizer of urban armies. You see before he can run for the White House, Villaraigosa my want to be a Czar.

One of the first things that President-elect Obama ordered was the creation of the Office of Urban Policy. It will be a new department whose goal is to push for a greater role for city-dwellers, but the kind of collectivist power that could dominate national issues. It's just another dynamic to civil wars that hang over our nation like the sword of Damocles.

> Old versus Young
> Public Workers versus Private Sector Workers
> Red States versus Blue States
> City Dwellers versus Country Bumpkins

But, this week it's Democrats versus the President.

I thought the initial compromise was worth it as to not to send the nation into a death spiral on January 1, 2011. Now, I think Republicans should walk away and come back next year and do this the right way.

What About the Economy?

Right now, our economy is being helped by the rest of the world. October exports out of California were up for the 12th straight month to $12.91 billion from 11.08 billion a year earlier. It's great to get a piece of the action abroad, but we need internal demand, too.

Exports from California

* Airborne: 47%
* Seaborne: 30%
* Overland: 23%
The CEO of Collective Brands (NYSE:PSS) was on TV this morning and said "luckily" his company had business overseas as most Americans are hurting too much, save for the upper level. He also mentioned that prices would be climbing for consumers based on the surge in commodities.

On the inflation front, China continues to loom large as the frontline. Inflation there climbed again this time to 5.1%, but the PCBB didn't raise rates and that sent equities higher around the world.