because of the cure for the recession adopted by barack obama. [applause] because, the recession itself began as a normal flow of the capitalist system and is probably ending by about now. it is in china, it is in other countries throughout the world but it is not here. the reason it is not here is not the disease, it is the consequences of the cure. [applause] what obama did when he took office was to pass this massive stimulus spending program, and the stimulus program was never a means to end the recession because of the recession was a means to get the stimulus program passed. [applause]

because, the stimulus program included eight years of democratic spending dreams, some of which are quite good. broadband computer access, renovating schools, expanding early childhood education, good stuff, but over eight years, when the money is coming in, when you don't have to borrow it, to do it in one week and along with a lot of other garbage in that package that i'm sure you know all about like 200 and 50,000 bucks for a tattoo removal parlor in los angeles. in san francisco, the idea of tattoo removal has not caught on yet. [laughter] but the idea that this massive spending would somehow lift up the economy is just totally wrong. and it was wrong when they did in japan. for 20 years they have had stimulus spending in japan. when they started in 1990, the

ratio of debt to the economy was 25%. now the debt is 2.5 times the economy, 250% and you know what? over the last 20 years japan now has a gdp lower than it did 20 years ago. it is done absolutely no good end boone bush send out checks in 2008, it did absolutely no good. the reason is very simple and we'll explain it in "catastrophe." the idea of keynesian economics, that theory, has been replaced by the theory of rational expectations, which says we are not stupid, when we get a check in the mail and when the danger of losing our jobs and in danger of losing our houses. we do not run out and buy a flat screen tv's. thank goodness we buy books. [laughter] but, not flat screen televisions or cars, so in the month of

april, the total household income in the united states rose from-- $121 billion, 50 billion of which was the stimulus money coming back to us. but savings rose by $131 billion, $10 billion more than the household income went up. what that meant is we did not spend a dime. we put it all paying down our credit cards, catching up on their mortgages, paying down our bills and those of us were really well off put it into treasury bills and those of us that are realistic put it in the dsp, ' savings program a we put it under the mattress. this say this place. but the point is, we did not go out and spend it. and then the obama, however, having spent the money that was running around the world with a tin cup of borrowing over $100 billion a week, a

2 trillion by october 1st and when you try to borrow that much money it drives up interest rates. people are not going to lend it to you for nothing. they are going to charge rates and as a result the long term interest rates have doubled since he took office, and mortgage rates have gone up by a full point in six weeks. now, i thank you for not pooling when i said i worked for bill clinton, but i have got to tell you this. this was not the way bill clinton handled the recession. bill clinton eliminated the deficit. barack obama has quadrupled that. bill clinton cut mortgage interest rates by three or four points. obama is letting them go up. bill clinton eliminated the deficit by cutting the capital gains tax from 28% to 20 and i'm not crazy, you cut that capital gains, more people sell, more people buy, they are more

transactions and produce more revenue and permitted us to eliminate the budget deficit. i remember sitting with him and a yellow pad in the oval office and he literally wrote the budget from memory. this guy knew every one of the 50,000 lines in the federal budget and he wrote the budget, and those cuts ended up being completely meaningless. the only cut that mattered was the capital gains tax cut because that generated revenues that eliminated the deficit but obama is doing the opposite. he is so increasing the deficit that when you go to borrow money for your refinancing your home, the feds are elbowing you out of the way. the federal reserve board knows that if they let interest rates go as high as they are going to go with this massive borrowing, that we will be in the great depression. you know what they are doing? they are printing money. they don't call it printing money. they call it a buying treasury securities or buying stocks, but what it is is they are buying

step in putting money that isn't there into the economy. now, imagine that it is as if in new york cars, la bamba came around and said i'm going to give, or the fed can run it said i'm going to give you all a full tank of gas and they went around shooting gas into your cars until it was on fall and every car in the country was now on full. people did not want to drive because it was knowing our raining or lousy weather, so they figured they would put the cars into the parking garages and then when the weather improved, when the economy got better, they would come out of the parking garages and then they would use the gas. the problem is they are going to do this all at once. you are no strangers to traffic, living where you live but the point is this is going to be incredible inflation because way to much money is going to be chasing way too few goods. you know the total amounts of money in circulation has tripled

since october 1st, triple. i don't mean like timbers sent or 20%, i mean 300% increase. it went from 800 billion to 2.5 trillion that money now is not being spent, sitting under the mattresses, like i said are paying down debt and stuff but once the economy starts recovering it is going to come out massively and you are going to have unbelievable inflation so that is the catastrophe. we were coming out of this recession, went down like this and we were coming out. now we are being hit with higher interest rates and we are going to go right back in come a deeper and deeper and then we will begin eventually to recover like capitalism always does and as we come back, we are going to be hit with inflation on the back end of that. these diseases of a prolonged recession, increased unemployment and then inflation at the end of it and perhaps during yet-- we may have

depressed inflation while we have-- are all the consequences of barack obama's determination to pass $1.4 trillion in new spending. not to stimulate the economy, but to grow the government into the spending. now when he took office, 33% of the economy went to government, 212 fed aunt 12 to state and local. now, after the spending package is 39 to 40% and once his healthcare program is approved, it is, that will be 45%. now germany is at 47, france is that 50, sweden for god sakes is only at 54, so we are really getting out there with the socialist regimes of europe, which was his goal all along. then the next chapter in our book, and by the way i am sorry, i just want to explain something

about this psychology. barack obama has the european idea in his mind. he is a european social democratic, european socialist. that is because he went to college in europe. the charles river is a lot wider than the atlantic ocean. [laughter] and come he got the european ideal, which is distribution of wealth rather than creation. regulation and therefore fairness as apportioned by the government rather than freedom in entrepreneurialism and individual creativity. you go to him and say, want to sacrifice economic growth? if he is being honest he will say yeah it well, just like in europe but has that we have had growth for 40 years and now it is time for us to have fairness, which would be his view, fairness maeneen get people to money-- money to people who have not earned it in taking it from people who have but that is his notion of fairness and the

european notion. now listen, i am for income redistribution. i think it's very important. that is why we have the most progressive tax system in the world. we do more to redistribute income through our income tax than any other country in the world does. the top 1% in this country makes 21% of the income but it pays 41% of the income taxes. the top 10% of this country, which is about 100,000 a year, pay 70% of the taxes. the top 25%, which is household income of about $75,000 a year, pays 86% of the taxes. the bottom 50%, which is less than $48,000, household income a year, pays 3% of the taxes and under obama they will pay zero. and in fact, what he is going to do is to take the number of

people that don't pay taxes at all and raise it from about 35% to about 55% of the total country, and then give them money back, so that 55% of the people will have a party on april 15th. it is going to be a good day, not because of earth day but because they are getting refunds of money that they never paid and it really means that 55 to 60% of this country will have a net positive transaction with the irs. they will receive money and its smaller and smaller group of people will pay more and more of the taxes and they become politically impotent. he can raise taxes as much as the wants. who cares? we are not paying it and we are the majority of the voters and that is the class worker system that obama's socialism is predicated on. [inaudible] >> yeah, you got that right. [applause]

i don't know, did crohn's counts? but, the point is that this top 1% and top 20% maybe infant politically but they are not financially. the top 1% of the country spends one-fifth of the money. the top 25% of the country spends two-thirds of the money and obama is about to realize that he cannot declare war on the productive parts of society. you can't replace the war on poverty with a war on prosperity, and have your economy grow. [applause] now, that is not the bad news. [laughter] abed news is what he is planning to do with healthcare reform. because, you can always recover from taxes by repealing them, but once he destroys the healthcare system in the united states, there is no going back. now, he says that he is going to

increase efficiency in healthcare. and that that is going to save enough money so that he can cover people that are now not covered. now, what efficiency means is, it means say no. it means no, your 70 years old he can't have a knee replacement. no, your 75, you can't have a hip replacement. what i spend my own money? no. the doctor can perform abortions until he is blue in the face but if he gives you a hip replacement after we say no he will lose his license. you can't have bypass surgery, i am sorry but you are going to die. this is empowering the government to make these kinds of decisions. how will they empower them? they will empower them because they will either be a public healthcare system, a public healthcare provider, an insurance company run by the government, which will compete with private firms and that is

like the kentucky derby but one of the horses is on steroids. it is getting subsidies from the government and it is obviously going to defeat the ones that are not getting subsidies from the government and then you have the single-payer, the government plan. even if that isn't the case, the government is going to use its power over the private companies even if there is no public company, to force this kind of rationale and the reason is it cannot expand medical care by writing a check. you can expand schools by writing a check. hire some extra teachers. you can expand defense spending by writing a check. you build more tanks and airplanes, but medical care requires a doctor and a nurse and their only 800,000 doctors and there are only 1.4 million nurses to treat the country, and they are working like crazy trying to treat 252 million americans who receive health insurance now.

now they are going to have to cover another 48 million americans. it is going to mean less medical care for the rest of us. is like sleeping with the blanket that is too small. either ten-year neck it's cool your feet do but unless you grow the blanket that is the choice you face. obviously we need to cover those 48 million people. obviously they are entitled to healthcare but do it in the right way. expand the number of doctors, expand the number of nurses and while that is happening, then expand the number of nations, but don't decree that you are going to cover them automatically because then the only way you can do it is by rationing, and by cost control. linney says cost control the means pay doctors less money, and when you pay doctors less money you have fewer doctors, right? of this cycle just perpetuates itself and gets worse and worse. unup with a situation they have now in canada. one of the big reasons we rushed

this book into print-- we only finished writing it on may 6, it was in the stores six weeks later, is to get the facts about the canadian healthcare system out there to the american people. canada essays 16% high are cancer death rate than the united states, and have this many poor people so you think would be the other way around. and a 6% higher hardee's-- diseased that right. it is an eight week wait in canada for radiation for cancer. it is an eight month wait in canada for a colonoscopy, and as a result the incidence of colon cancer in candidate is 25% higher than it is in the united states. and the top two medicines that we use for chemotherapy for advanced stage call on cancer are both banned in candidate, not because of health or safety concerns but because they are

too expensive so they make patients receive the medication we stopped using ten years ago, and as a result if you get colon cancer in canada you have a 41% chance of dying, where is it you get it in the united states you have a 32% chance of dying. so the next time you were talking to somebody like your children, and they are in favor of health insurance tell them hey if mom got cancer would you like to have to wait eight weeks to get radiation because there weren't enough machines and enough doctors to go-round? that is what the price of what obama is doing and is not that he will ever catch up with a number of doctors because the cost controls he is imposing will reduce the number of doctors and will create longer and longer and longer delays. for years ago there was only a four week wait for radiation in canada. last year gwenette to eight weeks and it's getting worse as the number of doctors goes down and that is what barack obama is

trying to do to our healthcare system, and we can't let him do that. [applause] and we can stop him. in the book "catastrophe" you'll find a hit list of all of those democratic congressmen who get elected as conservatives and then go up to washington and boat which ever way nancy pelosi tells them to vote. we are going to go after those people to educate their districts about what they are doing and to defeat them in the election that is coming up. [applause] and if you come if you go to dick morris.com, and you enter your e-mail address we will keep you posted on how to do that as we move through this election season. now, sometimes with the democrats do is this phony

business of voting against what pelosi wants so that they can get reelected, but making sure that there are 219 who do what she says of the bill passes. that is exactly what happened with the cap-and-trade legislation. the cap-and-trade bill, let me say this very clearly, i utility rates are not in an unintended consequence of the cap-and-trade regulation birkhead they are its secret cool. they have decided, the way to reduce carbon emissions is to making use less electricity and they are doing that by doubling your utility rates, and they are doing that by taxing plants that use coal to generate electrical power. and the goal here is to increase the utility rates. they can't do it as a tax of nicola cap-and-trade, which nobody understands what is going to have the same net effect.

i don't know if you agree with me and i am sure there are many here who don't but i honestly believe that global warming is happening and i honestly believe that a large part of its mandate, 2/3 i think it's natural that a we can't stop faultiness but we can deal with-- but you have got to look at the facts. half of the carbon emissions in the united states are from cars, not from industries and not from electricity generating plants and when we began to switch to electric cars, which we are about to do, and then beyond that switch to hybrid hydrogen cars which is going to come shortly after that, that is going to dramatically reduce our current output. question when we get the electricity to fuel the cars? we get it at night. weep slugged in overnight while they are sleeping and 30% of our power in the country is pretty clean. it is nuclear, hydro and a little bit of solar and wind and

all that stuff. at night that is all we used because they are all know industries operating during the night so it is off week ours, you recharger car and the next drive you try 60 miles without using a drop of gasoline and you drive a little more than that, the gas engine kicks in, but you are talking about a crash in utilization of gasoline and a tremendous reduction in the carbon emissions in the united states. far more than cap-and-trade will ever cause in utility, and you want to deal with carbon emissions? how about dealing with china and india? [applause] if we pass the obama program completely, and we meet all of its schools, carbon emissions will still go up because of india and china, and until we get serious on that front, which we can't because of all the money obama is borrowing, we

will be unable to really effectively reduce that. now, obama's plan for socialism in the united states is largely a covert one. what he is doing is he is getting one horse in each race. like the derby, he is good gm that is going to compete with ford. he is that banks that get t.a.r.p. money that are going to compete with banks that don't get t.a.r.p. money. he is going to have a public health insurance plan that is going to compete with the private health insurance plans and when he says at his press conference three days ago that why do you think the private plan will lose the competition? you are saying private is more efficient, you are saying government can't run anything. one thing when the compotation? no, you so when so you are subsidizing money. you were writing them a blank check and if-- we are borrowing the money.

but, the point is that if you are subsidizing these companies of course they are going to win the competition because there is no competition in the future here of general motors is obvious. general motors could become profitable if it did not have to produce cars that nobody wants to buy because their fuel-efficient. if it couldn't produce the suv's that everyone wants to buy general motors could be highly profitable but the government is not about to let gm violated own mileage standards of what is going to happen is gm will produce cars that nobody wants to buy. it is not going to be profitable but 60,000 autoworkers are not going to lose their jobs. that is not a problem but you losing the union membership and dues, that is obama's problems of the is going to keep general motors a light at our expense forever and ever and ever and is going to become just like this industries that the chinese government subsidizes with 40% of the budget that produce nothing of any consequences.

nobody wants what they make but they employ a couple hundred million people and the chinese government can't stop subsidizing them because they will have a revolution on their hands. that is the system he literally is bringing here to the united states. now when he was elected the big thing he cried about was mortgage foreclosures. well, he's been president for six months now. do you know that in the last month, there were 411,000 mortgage foreclosures, and there are only 11,500 mortgage workouts? it is because nobody is eligible for his program. if you have fallen behind in your mortgage, you are not eligible. if you are current in your mortgage you are not eligible. if you are in foreclosure you are not eligible but if you are a current you are not eligible. you have to be one month or two months behind and then you are eligible, and lessee were part of the half of all mortgages that are not guaranteed by fannie mae, unless your mortgages and not under 750,000,

unless it is not your primary residence and so on and so on and so on, and unless once you refinance your not paying more than 41% of your income in mortgage finance so nobody is eligible. you have lost your job, you are not eligible and that is why the foreclosures are continuing into shows the hypocrisy of these crocodile tears. why disney simply do with the government should do, what they did in sweden, which is to buy these mortgages, buy these homes and say okay guys you of go to new lender, the government, you've got a new landlord, the government and we want you to pay as you can and keep their homes than when the depression is over, then we will charge you the full amount and then we want you to prepay as the amount we have put in. do you know why he won't do that? because you would have to throw people out of their homes that they wanted their refinancing. once the thing is over and you come to them and say okay now

you've got to sell your house and pay back the money i lead you to let you stay in your house, or now you have to refinance it and came back, and they say no, the government does not want to be carting people out of their homes. in sweden they bit the bullet and they did and they got through this crisis with very few people losing their homes, very few foreclosures and at the end of the process the government of sweden made a profit on the deal. we could too. it is just obama this not have the guts to do that. to accomplish the changes that barack obama has in mind, he is going to have to usher in not just a real election, not just a congressional victory in 2010, but a 20 year period of political domination by the left wing of the democratic party. the way he plans to do it we outline in a chapter in this book. aidid scott for parts to it. first he is going to cook the senses by counting people that aren't there.

they call that sampling, and you know it reminds me very much of what our constitution was written, the slaveholders said, count all the slaves as 5/8 of a person. they can't vote, they are and chains and we buy them and sell them like cattle but count them so we can get the extra electoral votes in the extra votes in congress. that is essentially what they are doing in reverse because the second thing is going to do is to coerce people into labor unions, union member maxton drop from a quarter of the workforce to 12%. hughes bring back to 16 or 80% and give those people the discipline of being in a labor union to try to control their votes. now right now the way you get a union election is to check off on a card, yes i want the election and if the majority of the people check yes, the workers in a factory, they could to have an election which is by secret ballot. now, what is the point of the

election? a majority have checked it off already. what the needy election for? well, the fact is three-quarters of the time the union loses the secret ballot election, because people are coerced into checking off the cars. the person who is in charge of their employment visits them and pressures them to sign that card. and then they turn right around in the secret ballot in bodaken the union so obama has a simple solution. he is going to eliminate the secret ballot and the check of cards will be enough to form a union and then if the employer does not reach a deal with this union in six months the federal government department of labor will impose an agreement by arbitration, no appeal, no capacity to go around. the third thing is going to do is open the borders and incentivize illegal immigration. one of the key goals of this healthcare procedures is healthcare reforms, is to extend

healthcare to illegal immigrants. when you couple that with this almost automatic amnesty plan for illegal immigrants, it means that in effect he is going to be covering illegal immigrants, which means he's beaten the pot of gold on this side of the border and you incentivized jumping that wall because on the other side is not just a job but healthcare for your family. and that expansion of the illegal immigrant population, that is they legalized and incentivized and then is made citizens, naturalized and then votes, is a key part of the democratic plan for political domination. and the final part is he is going to muzzled talk radio. ..