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Reagan insider: 'GOP destroyed U.S. economy'
Marketwatch ^ | August 10 2010 | Paul Farrell

Posted on 08/11/2010 1:03:09 PM PDT by Recovering_Democrat

"How my G.O.P. destroyed the U.S. economy." Yes, that is exactly what David Stockman, President Ronald Reagan's director of the Office of Management and Budget, wrote in a recent New York Times op-ed piece, "Four Deformations of the Apocalypse."

(Excerpt) Read more at marketwatch.com ...


TOPICS: Business/Economy; Constitution/Conservatism; Government; News/Current Events
KEYWORDS: economy; gop; omb; rino; stockman
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Constructive Criticism Warranted!

Is Stockman right? Partially? Wholly? I want some input from my fellow FREEPers.

1 posted on 08/11/2010 1:03:10 PM PDT by Recovering_Democrat
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To: Recovering_Democrat

He should be more specific....

RINO specific.......


2 posted on 08/11/2010 1:04:51 PM PDT by rightwingextremist1776
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To: Recovering_Democrat

David Stockman should be still...and he’s wrong.


3 posted on 08/11/2010 1:07:14 PM PDT by RexBeach ("Duty is ours; consequences are God's." Thomas "Stonewall" Jackson)
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To: Recovering_Democrat

Looks like he didn’t learn anything from being ‘taken to the woodshed’ by Reagan for his stupid comments back then.


4 posted on 08/11/2010 1:08:23 PM PDT by Mr. K (Physically unable to proofreed (<---oops! see?))
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To: Recovering_Democrat

How did I know it would be Stockman before I even read a word?


5 posted on 08/11/2010 1:08:26 PM PDT by dfwgator
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To: Recovering_Democrat

Compared to the unrepairable damage Obama is causing - no. Stockman is an idiot. He got sued because the private equity deal he put together fell apart.


6 posted on 08/11/2010 1:08:41 PM PDT by Frantzie (Television controls the American people/sheep)
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To: Recovering_Democrat

LOL, David Stockman.
That scumbag was fired by Reagan, wasn’t he? In any event, he has been a laughingstock for over 2 decades. He’s a “Republican” like David Gergan is a “Republican”.


7 posted on 08/11/2010 1:08:41 PM PDT by Lancey Howard
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To: Recovering_Democrat

If you read Reagan’s memoirs, he basically says that Stockman was a thorn in his side. Of course, Reagan was much too classy to outright say that.


8 posted on 08/11/2010 1:09:23 PM PDT by conservativebuckeye
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To: dfwgator

He stabbed Reagan in the back


9 posted on 08/11/2010 1:09:39 PM PDT by Hojczyk
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To: Recovering_Democrat

He is right about what went wrong.

He is wrong about it was only the right.


10 posted on 08/11/2010 1:10:17 PM PDT by True_Kon
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To: dfwgator
How did I know it would be Stockman before I even read a word?

Same here!
As soon as I read the headline I muttered to myself, "Has to be that steaming pantload Stockman."
And of course it WAS!

11 posted on 08/11/2010 1:10:31 PM PDT by Lancey Howard
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To: rightwingextremist1776

Recriminations are pointless. Let’s look forward. Republicans need to gain power and they need to immediately start dismantling this Federal nightmare that has been growing for 50 years. If they don’t then God help us.


12 posted on 08/11/2010 1:11:24 PM PDT by DManA
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To: Recovering_Democrat
He blames the Bush tax cuts for decreasing gov't revenues and thus the horrific debt. How can this guy call himself an ex-economist? Tax cuts do NOT result in decreased tax revenue; in fact just the opposite. Cutting taxes, especially on business and high income job producers, leads to increased economic activity and a higher tax take for the gov't. This has been shown again and again. Remember the Reagan years? Stockman apparently does not.

I think a once relevant guy is simply saying what he knows will garner him MSM coverage.

13 posted on 08/11/2010 1:12:24 PM PDT by Blennos
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To: rightwingextremist1776

I remember an old political cartoon from the 1980s involving Stockman and Reagan. It showed Nancy Reagan holding the bridle of a horse while Ronald Reagan was pointing to the horse’s tail. The caption read “You know Nancy, this end kind of looks like Stockman, too.”

Summed up Stockman perfectly.


14 posted on 08/11/2010 1:12:30 PM PDT by No Truce With Kings (I can see November from my house.)
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To: Recovering_Democrat

Stockman is a jerk.


15 posted on 08/11/2010 1:12:30 PM PDT by rockinqsranch (Dems, Libs, Socialists, Call 'em what you will. They ALL have fairies livin' in their trees.)
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To: Recovering_Democrat
Strange article. Most of it seems correct, unfortunately enough, but I don’t understand why he keeps overlooking that both Reagan’s and Bush’s tax cuts resulted in increased revenue! The big sin was the big spending, not the tax cuts.

And of course, as bad as those four decades of over-spending were, Obama has already outdone them in less than two years. No mention of that at all? Strange indeed.

16 posted on 08/11/2010 1:14:38 PM PDT by cartan
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To: Recovering_Democrat

He sure don’t sound like a Reagan insider.


17 posted on 08/11/2010 1:15:03 PM PDT by caver (Obama: Home of the Whopper)
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To: Recovering_Democrat
Well, in some ways he's right.

Nixon did dump gold, and, when the Republicans finally got control of the house and Senate they did NOT cut spending.

I don't agree with him about the military at all, and our history emphatically demonstrates the risk we put ourselves in by reducing our military.

As for the financial markets, he is partially right. While the Republicans had the control, they did nothing to reign in the thieves at Goldman Sachs, did nothing to investigate the stupidity of the bi-partisan legislation that created the banking mess, and prosecute the liars and cheaters on both sides of the aisle.

The DemocRATs are more guilty, but only by a measure. Blame can be spread around to our politicians widely.

18 posted on 08/11/2010 1:15:16 PM PDT by Nachum (The complete Obama list at www.nachumlist.com)
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To: Recovering_Democrat

For what it’s worth, I think his criticism is on target. We have taken some of the worst policies of both parties and set up the coming collapse. Raising taxes would get my support if every cent was matched by deficit reduction. The economy would slow or even shrink, but continuing expansion on borrowed money is no longer an option and the downturn will either be hard but short or softer but much longer. I’m for ripping of the bandage and getting it over with before the generations responsible leave the scene to leave all the suffering to those that follow. Hard times and character building are overdue.


19 posted on 08/11/2010 1:15:19 PM PDT by metalcor
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To: Recovering_Democrat

Some one is looking for a job in DC.


20 posted on 08/11/2010 1:16:29 PM PDT by bmwcyle (It is Satan's fault)
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To: Recovering_Democrat

Just because he worked for Ronald Reagan doesn’t mean he’s not unfriendly toward Republican principles.

Three words....SANDRA DAY O’CONNOR!


21 posted on 08/11/2010 1:17:47 PM PDT by DCPatriot ("It aint what you don't know that kills you. It's what you know that aint so" Theodore Sturgeon))
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To: Blennos

Tax cuts combined with deficit spending bring in more revenues (and create bubbles), but the deficit climbs and and the interest accrues until it can no longer be sustained.


22 posted on 08/11/2010 1:18:07 PM PDT by metalcor
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To: Recovering_Democrat
IMHO, this is patently false. Sure, the GOP got away from conservative principles too but the primary cause of the destruction of the U.S. economy could be placed at the feet of the Democratic Congress (and Clinton) forcing the banks to lend massively to those who could not repay the loans.

Exhibit A: Jim Jeffords switched parties on May 24, 2001, which gave effective control of the U.S. Senate to the Democrats for the duration of the Bush administration.

Given the weak and wobbly Republicans in the House, the Dems rolled them too and had effective control over all fiscal policy since mid-2001.

Exhibit B: The administration of President George W. Bush attempted to the GOP Congress to reform Fannie and Freddie in 2004. Bwaney Frank, Maxine Waters, Gregory Meeks, Christopher Dodd, et. al. PREVENTED THE NECESSARY REFORMS.

23 posted on 08/11/2010 1:18:15 PM PDT by Servant of the Cross (Obama is a man-caused disaster..........)
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To: Recovering_Democrat

Irrelevant cadaver alert.


24 posted on 08/11/2010 1:18:41 PM PDT by jersey117
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To: Recovering_Democrat
We've arrived at a historic turning point as a nation that no longer needs outside enemies to destroy us, we are committing suicide. Democracy. Capitalism. The American dream. All dying. Why? Because of the economic decisions of the GOP the past 40 years, says this leading Reagan Republican.

I know he's not a math major but 2010 - 40 = what?

25 posted on 08/11/2010 1:18:41 PM PDT by McGruff (How's that Hopey Changey thingy workin for ya?)
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To: Blennos

old trick of the left.

pretend to be a republican and then denounce them
pretend to be a republican and then put down GOP ideas and say they are too radical now.
pretend to be a republican and then when asked by a media outlet about the GOP say they have become too radical and you will vote for the Dems for the first time in your life.

Did the tactic to a bunch of left wing kooks last weekend and said I could never support the Dem party any more as has turned socialist .
The looks on their faces was priceless


26 posted on 08/11/2010 1:19:29 PM PDT by manc (WILL OBAMA EVER GO TO CHURCH ON A SUNDAY OR WILL HE LET THE MEDIA/LEFT BE FOOLED FOR EVER)
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To: Recovering_Democrat

Effing rat faced little putz bastard...still


27 posted on 08/11/2010 1:21:26 PM PDT by Postman
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To: Servant of the Cross
Given the weak and wobbly Republicans in the House

You know not one of them voted for PORKULUS? Give some credit to the House Republicans. They stood their ground on most things.

28 posted on 08/11/2010 1:21:27 PM PDT by McGruff (How's that Hopey Changey thingy workin for ya?)
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To: Recovering_Democrat

Bottom line is that we spend money we don’t have - it is silly to pin that on one party.

The problem is not the left puppet or the right puppet. Problem is the man behind the curtain.

Who loves debt?

Democrats? Republicans? State Governmemnt? Federal Government? Foreign Governments? Consumers? Average American?

Who doesn’t let us live within our means? Who forces wars which can be avoided? Who finances infinite wars? Who steals from Government? How do Trillions get un-accounted for, simply stolen? Who can steal trillions and hide it from Government? Who plots and plans to separate Average American from their wealth? Who doesn’t like wealth accumulation, albeit small in comparison, by average American?

Who is hell bent determined to impose a new gynormous Carbon Tax? How would we pay for it? Is anything going to be cut to pay for it? Why are Bankers taking postions so they can trade carbon credits? How do carbon credits prevent pollution?

Name ALL the entities in the world that BENEFIT from DEBT?

You would only come up with one.


29 posted on 08/11/2010 1:22:47 PM PDT by True_Kon
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To: rightwingextremist1776

RINO=Collaborator


30 posted on 08/11/2010 1:25:43 PM PDT by screaminsunshine (m)
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To: Recovering_Democrat

No one talks about the offsets by the local and state governments when the ‘tax cuts’ were enacted. The tax liability increased on the rich while the bottom quintile actually profited by about 7.5%.
Let’s end the tax cuts for ALL but also end the ‘other’ fees and taxes at the same time. Does anyone actually believe the ‘rich’ will stand still for the 60%+ coming soon?

(’Hauser’s Law’ in force no matter what the rates are!)


31 posted on 08/11/2010 1:26:10 PM PDT by griswold3 ('Regulation and law without enforcement is no law at all)
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To: Blennos

Probably friends with Souter. Reagans biggest mistake.


32 posted on 08/11/2010 1:26:48 PM PDT by screaminsunshine (m)
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To: Recovering_Democrat

When the GOP played along with the Jacobin themes of the Democrats — yes. Stockman’s right.


33 posted on 08/11/2010 1:26:53 PM PDT by bvw
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To: Recovering_Democrat
I read the whole article as a trained economist. There is some truth mixed with a lot of hyperbole and pure bullsh*t.

The truth is that deficits did soar under Reagan. It is also true that some of the reason, though by no means all, was military spending.

Reagan's party controlled one house of congress (the U.S. Senate) for a mere two years during his eight years in office, and only by the narrowest of margins.

Yes, there were more patriotic Democrats in office then who could occasionally be persuaded to do the right thing, but there were also more RINO Republicans.

Reagan's main purpose for increasing military spending was to defeat the Evil Empire. He let a lot of unrelated deficit spending go unchecked as part of the political price he felt he had to pay to achieve his main purpose, which he did before he was out of office for one year.

Stockman ought to compare the cost of such deficits with the costs of a shooting war.

The United States reaped a substantial peace dividend from Reagan's decision to confront the Soviet Union, a divided which was wholly p*ssed away by the Bush/Clinton/Bush administration's increases in entitlement spending.

I won't detail all those entitlements here, but they were a lot more than sinking money into rebuilding two, largely ungrateful Muslim countries.

And still, the accumulated deficits of all these administrations plus all the previous administrations were eclipsed by Obama's administration deficit spending requests approved by his rubberstamp congress in just his first 18 months! If Stockman thinks that key detail is irrelevant, then he's smoking something which is illegal.

I've also got to wonder about the particular timing of his hit piece. Is he not getting enough invitations for the Washington Cocktail Circuit to massage his ego?

34 posted on 08/11/2010 1:28:45 PM PDT by Vigilanteman (Obama: Fake black man. Fake Messiah. Fake American. How many fakes can you fit in one Zer0?)
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To: Recovering_Democrat

Gee, don’t you have anything from Howard Dean? Or Colin Powell? Or David Brock?


35 posted on 08/11/2010 1:29:32 PM PDT by Deb (Beat him, strip him and bring him to my tent!)
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To: screaminsunshine

Souter was a Bush 41 appointee (recommended by John Sununu).

Anthony Kennedy was appointed by the Gipper (after Bork got borked).


36 posted on 08/11/2010 1:30:17 PM PDT by rfp1234
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To: Recovering_Democrat

Was Bush a Big Government Republican, damn right he was.

Remember Stockman is yelling at the Republicans for not cutting spending while they cut taxes. Fair point. Christie is cutting spending, and you have to have a revolution to do this. It is the hard decision and we need to do it. While the Democrats are in power - it will be harder and harder, a greater percentage of individuals not paying income taxes, now health care is a right rather than a cost of living, and we are living in a growing orgy of entitlements that will be difficult to shut down.

Unemployment benefits are extended and people have stopped looking for work while this cash still comes in.

Many blue states are walking bankruptcies, pensions are out of control, businesses are fleeing these states - Michigan, California, NY, NJ, take a bow.

I was disgusted at Stockman’s little class warfare game - that’s the moron model - blame the rich for making it. Yeah - blame the people who create the jobs. It scares me because that attack means he doesn’t understand where the jobs come from? Who builds America? The risk takers, the businesspeople who put everything on the line.


37 posted on 08/11/2010 1:30:22 PM PDT by Titus-Maximus (Light from Light)
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To: McGruff

I agree with your point (not too popular here) on giving credit where credit is due to the House GOP as to their recent behavior. Here, I’m speaking mostly to the period 2001 - 2007 when they had the majority and did nothing with it.


38 posted on 08/11/2010 1:32:08 PM PDT by Servant of the Cross (Obama is a man-caused disaster..........)
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To: Recovering_Democrat

Don’t expect much more than shoot the messenger.

Policies that result in China financing America is the bottom line of economic failure.


39 posted on 08/11/2010 1:32:16 PM PDT by ex-snook ("Above all things, truth beareth away the victory")
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To: rfp1234

Good. That figures. He must of been a mole.


40 posted on 08/11/2010 1:34:13 PM PDT by screaminsunshine (m)
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To: Recovering_Democrat

Stockman has the view, like all bureaucrats, that Gov’t spending and deficits have absolute priority - and our taxes should rise simply basis Gov’t need.

As to massive spending on wars, Gov’t and entitlements being unstoppable, and Gov’t needing something out of their control to force discipline on them - he is correct.

That outside discipline? Shut down the Federal Reserve. The Federal Reserve has allowed Gov’t to finance its schemes, with stealth taxes of inflation and devaluation and debt. Shut down the Fed, and the Govt spending is immediately controlled.


41 posted on 08/11/2010 1:34:14 PM PDT by PGR88
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To: bmwcyle

“Some one is looking for a job in DC.”

Someone is looking for a Nobel Prize in Economics. Soon this guy will be all over the news, bashing Republicans. Funny how he has little to say about the DemocRATS HUGE tax and spend policies, the growth of the welfare state, entitlements, govt workers, etc.


42 posted on 08/11/2010 1:35:08 PM PDT by Hacklehead (Liberalism is the art of taking what works, breaking it, and then blaming conservatives.)
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To: Recovering_Democrat

Where Stockman fails is that he talks about the tax cuts in Democrat terms. Why not talk about cutting govt because that is where the debt comes from. We have a govt that has grown into a monster. We can’t get into the “its only 3% for fat cats” crap. We need to get into the lets cut govt across the board to bring the debt down permanently.


43 posted on 08/11/2010 1:35:22 PM PDT by Maelstorm (This country was not founded with the battle cry "give me liberty or give me a govt check!")
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To: Recovering_Democrat

Anyone that believes this garbage is an idiot.


44 posted on 08/11/2010 1:38:13 PM PDT by mulligan
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To: Recovering_Democrat

Well I’m sorry to say while his point on principle is valid; this is a hit piece overall the title is wrong and should read, “Keynesian Economics is a Failure” even after a facelift of the last 40 years.

None of this happened in a vacuum, David Stockman’s own words points this out:

extend the unaffordable Bush tax cuts- [tax cuts have not proven to cause declines]

The nation’s public debt ... will soon reach $18 trillion- true see http://www.usdebtclock.org/]

printing and deficit finance

“serial financial bubbles and Wall Street depredations that have crippled our economy.”

His lie on Friedman regarding that the public caused the borrowing/spending- [not it was the political class as always!]

extraordinary growth of our public debt…

Budgets to be “matched by spending cuts, to offset the way inflation was pushing many taxpayers into higher brackets and to spur investment. The Reagan administration’s hastily prepared fiscal blueprint, however, was no match for the primordial forces — the welfare state and the warfare state — that drive the federal spending machine.”- [Congress did this not Reaganomics]

This is a long con and distraction being placed on Reaganomics as the villain, so the political class can continue their free ride.

See http://www.usdebtclock.org/


45 posted on 08/11/2010 1:38:50 PM PDT by ntmxx (I am not so sure about this misdirection!)
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To: Recovering_Democrat

I agree with Stockman about 60% especially about pointless speculation on Wall Street where the big players get bailed out by the Feds/taxpayers


46 posted on 08/11/2010 1:39:09 PM PDT by dennisw (2012)
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To: Recovering_Democrat

I agree with Stockman about 60% especially about pointless speculation on Wall Street where the big players get bailed out by the Feds/taxpayers


47 posted on 08/11/2010 1:39:16 PM PDT by dennisw (2012)
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To: Recovering_Democrat

Well the GOP has done a lot wrong.

But the Dems even more so...

Both parties have been an economic disaster.

They spend, spend, spend...

And that is the root of the problem.

Stockman wants to increase taxes on the wealthy as a result of all that spending. The thing is, jobs come from those wealthy people. Increasing taxes will continue to destroy jobs and in not much time we’ll be just like Europe with no middle class because few can pass through the high tax barrier which is essentially all on income, not wealth.


48 posted on 08/11/2010 1:42:08 PM PDT by DB
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To: Blennos
Tax cuts do NOT result in decreased tax revenue; in fact just the opposite. Cutting taxes, especially on business and high income job producers, leads to increased economic activity and a higher tax take for the gov't.

Up to a point that is true. At some point, it is not. We know, for instance, that cutting tax rates to zero will not result in increased tax revenue.

The key problem is that it has never been politically possible to cut taxes to the point that we've ever been able to find the optimum rate of taxation. Most of the brighter free market economist believe that rate is somewhere in the high single digits or low teens.

There is also a trade-off between taxes and regulation. At some point, the market would respond better to decreased regulation or fewer government mandates than they would respond to decreased tax rates.

A good economist will recognize both idiotic government mandates/regulations and sensible regulations as an indirect tax.

Businesses who can impose their costs on the public at large need to be regulated against acting irresponsibly to the overall public good, even though it means an effectively higher tax rate is imposed. A company dumping their toxic waste into the public water supply is one such example. A company allowed to hire illegal aliens is another.

49 posted on 08/11/2010 1:44:00 PM PDT by Vigilanteman (Obama: Fake black man. Fake Messiah. Fake American. How many fakes can you fit in one Zer0?)
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To: Vigilanteman

Well said and thank you.


50 posted on 08/11/2010 1:44:02 PM PDT by ntmxx (I am not so sure about this misdirection!)
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