Another story from the arrogance and incompetence of the Bush administration. Today, Vice President Dick Cheney was quoted in an AP interview,
In an interview with The Associated Press, Cheney also said that Bush has no need to apologize for not foreseeing the economic crisis.
“I don’t think he needs to apologize. I think what he needed to do is take bold, aggressive action and he has,” Cheney said. “I don’t think anybody saw it coming.”
The last part is what really got me mad. A LOT, and I mean A LOT of people saw this economic crisis coming. Let’s take a quick look at some of the groups of people that saw this coming:
1. Gold bugs – Gold investors have been preparing for this economic crisis since the crash of the dot com era. Gold has steadily risen from the mid $200s/oz to a high of $1000/oz, and now at ~$850/oz today.
2. Currency investors – The euro to dollar ratio was at 0.85 at the beginning of the dot-com crash in 2001. Since then it has flipped and risen so quickly to 1.60 in early 2008. Most people familiar with the dollar index, fiat currencies and supply/demand saw this as a huge omen of future economic turmoil. It was only a matter of when.
3. Housing investors – The term housing bubble was surmised to be occurring well before the height of the housing bubble. Many people burned by the dot-com era and became fiscally responsible saw the non-stop rise in housing prices as a major deja vu.
4. Economists – There have been so many books written on this exact economic crisis in the past ten years, of which two have been reviewed on this blog (Crash Proof, The Coming Economic Collapse). Anyone who has read one of these books realized that the American economic system has been living on borrowed time and money.
5. Historians – History comes in cycles because the leaders don’t learn from history. The Iraq War and the recession afterwards first played in the first Bush administration. Instead of learning from it, the younger Bush repeated the exact same historical events.
6. Most sane people – I saw this economic crisis coming a few years ago when I started reading about the US economic system. A lot of my friends saw it coming. A lot of people knew that we only got out of the tiny recession after the dot-com crash and 9/11 because Greenspan and the Feds loosened the credit spigot and money-printing machine. What ensued was the housing bubble and more mortgaging of America’s future.
If all these people, including lots and lots of Americans saw the economic crisis coming, you are telling me the Feds and the economists that govern this country didn’t see it coming? Please… They just chose to look the other way. Why not? They are rich. There is no accountability. Leave it to the next administration or future generations to clean up the mess.
It’s really absurd that Dick Cheney deflects the Bush administration’s responsibilities by claiming that NO ONE SAW IT COMING. To put it nicely, the arrogance, narrow-mindedness and stupidity of the outgoing administration continues. The Bush administration continues to hope that in time history will judge them nicely, but I believe this second recession under their watch pretty much locks in their incompetence regardless of how well Iraq or Afghanistan turn out.
With so much negative attention on Sarah Palin and her obvious lack of experience, it’s time to take a look at who is the worst vice-president or vice-presidential candidate in recent years. Here are the four candidates.in chronological order. Please vote who you think is the worst in the poll.
1. Dan Quayle – George HW Bush’s VP (1988-1992) – Quayle was intellectually incompetent and had the foot-in-mouth disease. Po-tay-to, po-tah-to, either one is fine. But potatoe?? What about Quayle comparing himself to JFK during the election campaign? Other funny sayings? “We don’t want to go back to tomorrow, we want to go forward“, “The future will be better tomorrow“, “I love California. I practically grew up in Phoenix“, and “It’s time for the human race to enter the solar system“. Although the country mostly knows him as the vice-president, another interesting question that needed to be asked, what were the people in Indiana thinking electing him to the House in1976 and 1978, and Senate in 1980 and 1986?
Vice Admiral James Stockdale
2. James Stockdale – Ross Perot’s running mate (1992) – Stockdale infamously opened the VP debate by saying, “Who am I? Why am I here?” Initially, the rhetorical questions drew applause from the audience,  seeming to be a good-natured acknowledgment of his relatively unknown status and lack of traditional qualifications. However, his unfocused style for the rest of the debate (including asking the moderator to repeat one question because he didn’t have his hearing aid turned on) made him appear confused and almost disoriented. An unflattering recreation of the moment on Saturday Night Live later that week, with Phil Hartman as Stockdale, cemented a public perception of Stockdale as slow-witted. He was also often parodied for his constant use of the word “gridlock” to describe slow governmental policy. As his introduction to the large segment of American voters who had not previously heard of him, the debate was disastrous for Stockdale. He was portrayed in the media as elderly and confused, and his reputation never recovered. (source: Wikipedia)
You would think that after the elder George Bush presidency ended in such economic turmoil and low approval ratings that the country would think twice about picking another Bush as president. Well, it happened. As the younger Bush’s two-term presidency comes to a close this year, one can’t help but look back at the eight years of chaos and controversy to see striking similarities between the two presidencies.
1. Approval ratings – Both Bush presidents saw very high approval ratings in the early part of their presidencies. However, this had more to do with patriotism at the start of wars rather than what the presidents had actually done. This point is supported by looking at Truman’s approval ratings during WWII.
What makes the Bushs similar is the precipitous drop of approval ratings for the rest of their presidencies. Neither was able to transform early support to long-term success. The elder Bush was unable to transform a very popular and successful Persian Gulf War into domestic success. Note that the graph below shows younger Bush’s lowest approval above 30%. However, many polls had it in the 20s.
Approval Ratings of Past and Current Presidents
2. Iraq War – Both presidencies have been defined by a war in the middle East. Not just any war, but wars led by the United States against Saddam Hussein and Iraq. The first Persian Gulf War was highly successful, both in terms of tactical combat and political endearment. The unprovoked invasion of Kuwait by Iraq led to a swift overwhelming response by the rest of the world, including most of the other Middle East countries. The second Gulf War has become a completely different story. A preemptive offensive led by W. and the United States against Iraq for its supposed burgeoning nuclear capabilities has led to far-reaching implications. The evidence for war has since proven highly exaggerated. The complications of ethnic fighting has drawn the war into its fifth year. With recent lowering of violence, the key issue now becomes how long the United States will have a presence in Baghdad.
3. Economic turmoil – The past two recessions in the United States have both been under the Bush presidencies. With a third, and a second in W.’s reign, possibly on the way. Although both have been relatively short, it can be argued that the irresponsible short-term actions of the Feds and Alan Greenspan prematurely moved the United States out of the recessions, but at the expense of future credit. The Persian Gulf wars also took much needed domestic cash and credit to fund the wars, which led to huge increases in national debt.
Recessions and Job Growth in the U.S.
3. Incompetent vice-president – Dan Quayle and Dick Cheney? ‘Nuff said. The first was intellectually incompetent and had the foot-in-mouth disease. Po-tay-to, po-tah-to, either one is fine. But potatoe?? What about Quayle comparing himself to JFK during the election campaign? Other funny sayings? “We don’t want to go back to tomorrow, we want to go forward“, “The future will be better tomorrow“, “I love California. I practically grew up in Phoenix“, and “It’s time for the human race to enter the solar system“. Although the country mostly knows him as the vice-president, another interesting question that needed to be asked, what were the people in Indiana thinking electing him to the House in1976 and 1978, and Senate in 1980 and 1986?
5. The Russian Bear – Both presidents had issues with Russia, although in differing directions. The elder Bush oversaw the end of the Cold War and the deconstruction of the Soviet Union. The younger Bush is seeing the return of the Russian Bear led by former KGB man, Vladimir Putin. As Russia’s fortunes increase due to expansive petroleum exports, it has steadfastly returned to old Moscow traditions and become more emboldened. The recent Russia-Georgia war shows its increasing power to defend and expand its circle of influence.
7. Next president is young and new to national scene – If Barack Obama wins the 2008 presidential election, both Bushs will have been succeeded by young Democratic presidents in their 40’s, Bill Clinton and Obama. The Democratic presidents will both be elected on a change platform that invigorated the public. Both will also have been new to the national scene.
With such striking similarities between the Bush presidencies, a lot of people were a bit hesitant to support another candidate, Hillary Clinton, that would have led to comparisons to her husband’s presidency. Had that happened, the United States would have had either a Bush or Clinton in the top two positions of the country for atleast 32 years!