It's becoming increasingly clear that the Obama administration's early criticism of the Honduran coup was completely misplaced.
In one of his first foreign policy tests, Obama followed the lead of Hugo Chavez and Cuba's Castro brothers in his support for the ousted dicator/president.

A great recap is found in today's Wall Street Journal: Why Honduras sent Zelaya away.

You won't see any leading Democrats jumping on Zelaya's fast sinking ship.
Obama has major egg on his face.

In the last 36 hours, the political announcements have been somewhat stunning.  Illinois Attorney General Lisa Madigan (daughter of IL House Speaker Michael Madigan) had her pick of offices.  Considered a nearly unbeatable candidate for either Governor or US Senate, Ms. Madigan was the instant front runner for whichever office she would choose.  In fact, many candidates were waiting in the wings to pursue whichever of the two offices she did not select. 

She stunned nearly every political prognosticator when she announced her intentions to run again as Attorney General. 

The Governor and US Senate Seat are currently held by two individuals (Pat Quinn and Roland Burris, respectively) who were not elected to their position.  Quinn is enduring the shortest honeymoon period for a new governor as he faces a monumental budget deficit.  His high taxing, liberal bent doesn't serve him well as he reflexively wants to tax his way out of the deficit. 

Senator Roland Burris will announce today that he is not going to run for his seat, to which he was appointed by the disgraced former Governor Rod Blagojevich.  Burris has raised an anemic $20,000, while Democratic challengers within his own party have already amassed million dollar war chests.  Burris wouldn't have made it through the primary.  It's ironic that he found that his constituents were as reluctant to write campaign donations to him, as he was to then Governor Blagojevich. 

Lisa Madigan will be a possible Supreme Court Nominee by President Obama.  At just 45 years of age, she would provide a loooooooong Obama imprint on the Supreme Court. 

Yesterday's item prompted a good friend in the health care industry to send me a copy of a recent check they received from the state of Illinois. 

They had sent the check off to the bank, with all of their other deposits, but the Illinois check was returned, and stamped "Returned for insufficient funds"!!!!!  The state of Illinois is now passing bad checks.  I'm being perfectly serious.  When they called the state, they were told, "Try to cash it again next week, it MIGHT go through then."

Another health care provider said they had received a notice from the state of Illinois indicating that future Medicaid payments (assuming the checks are good) will be made approximately 200 days later than the state's current payment schedule.  Here's the thing - the state is currently 180 days behind on payments.  So with this latest announcement, they are forwarning their vendors that they will be paying their bills delayed only by 15 days..................... and 1 YEAR!!!!! 

Passing bad checks, in Illinois, is subject to both criminal and civil liability. 

In Illinois, the civil penalty is:  Treble amount of check but not less than $100 nor more than $500 plus attorney's fees and court costs.  And the check has to be remitted in less than 30 days.

The criminal penalty is: Up to $500 fine or up to one year in jail, or both.

I wonder if we can fit Illinois' executive and legislative branch in just one prison?

On June 30th, many states closed their books on their fiscal year. And many are in deep financial trouble.  Lower tax receipts, combined with "built in" budget increases are driving most states deeper into the red.

Two stories, related to me on the same day, offer a clue as to the "disaster" that is state government.

Story 1 - A friend is a subcontractor for a state agency.  In early June, he received a flurry of bid requests for a range of projects.  In fact, the bid requests, for that one month, far exceeded the bid requests for the entire year.  When he called to inquire, he was told, "We realized that we have a huge surplus of funds left over in our fiscal year budget.  If we don't spend the money before June 30th, our budget for next year will be reduced.  However, if we spend all the money, we'll get the AUTOMATIC increase that is built into next year's budget."

Story 2 - Another acquaintance provides supplies for a state agency that handles food items.  Every year, in the month of June, the agency buys an inordinate amount of non-perishable supplies.  It's not that they need the supplies.  In fact, in some cases, they already have a year's worth of goods on hand.  But, if they show fiscal restraint, they are punished in the next budget cycle.  

Just two more examples of punishing the responsible while rewarding the irresponsible.

It's as if our state budget is a sailing ship heading for the rocks, and the wheel is locked in the "suicide" position.
    

Like sailboats on the ocean, one room schoolhouses dotted the American landscape for more than a century.  The obituary for these simple structures was written by a man who had absolutely nothing to do with education - Henry Ford. 

Modern Education ideas were being developed in the early 1900's, just as Henry Ford was achieving worldwide acclaim for his "assembly line" production of automobiles.  This homage to efficiency was adopted by educational leaders at the time.  Consolidation, along with large gleaming structures, was deemed to be the more appropriate method for educating - not unlike the bright shiny factories that Ford was creating.

Advocates for one room school houses were outraged.  They felt the close, multi-class structure provided a preferred education, while educational experts felt children could only reach their full potential in the consolidated approach.

BOTH WERE WRONG!

One room schools were great because of WHAT they were teaching, not WHERE they were teaching.   One room schools were teaching children the most important lesson of all.  What is it?

HOW TO BE A RESPONSIBLE CITIZEN.

Kids emerged from these small schools knowing how to work and survive in society.  When today's high school graduates are entering life and willing to sign up for an interest-only home mortgage with no money down - we've failed them as a country.  When someone with a high school diploma racks up $50,000 in credit card debt by the age of 26 (and is paying 15% interest), our educational dollars were wasted.

Here in Illinois, I see public school districts that are producing hard working, financially smart graduates.  Remarkably, they are doing it for less than 1/2 of what it costs to educate most of the children in the large metropolitan school districts.  

The difference, is that, in the successful districts,  the parents remain engaged in the educational process.  Not unlike the parents who dispatched their children to the one-room structures, they are demanding that the schools produce RESPONSIBLE CITIZENS.  

The more we see efforts to dictate educational "norms" from on high, the more we lose the key element of our country's educational foundation and success.  Responsibility from our parents produces the same in our graduates. 

It's as simple as a one room school. 

Don't be.  The Downstate Illinois Advocate has the issue covered.
It's an incredible piece that you should take the time to read.

UPDATE........
The Downstate Illinois Advocate was out front on this topic. 
The coup in Honduras was about preserving democracy, not destroying it.
Other sources are now picking up the story - Honduran Democracy Protestors bash Obama and CNN



The sitting Honduran President was attempting to upend the constitution and demand another term of office.  The Honduras Supreme Court said "No".  But that wasn't enough for the power hungry President.  As a result, the military appropriately kicked him out. 

Sadly, the main stream media is staying silent, because Obama criticized the coup, rather than supporting the idea of democratic rule. 

It would appear that Obama's early criticism of the coup (chosing liberal politics over democracy) may have been both naive and inept.  It's a TWOFER!

The Democrats have now secured 60 members in the US Senate, giving them a filibuster-proof majority.  You would think Democrats and their supporters would be wringing their hands with glee. 

There's hand-wringing going on all right, but not with anticipation.

The US House's recently passed Cap & Trade Bill is a perfect example.  This horrendous piece of legislation barely squeaked out of the House to land on the Senate's doorstep.  Why is the bill so bad?
    
        1. In addition to the current tax on fuel in this country, the Cap & Trade bill would impose a per-mile fee on every vehicle.  So, you bought that hybrid car, because you have a long commute and want to save on the high cost of gasoline?  NOT SO FAST!  The government still wants their money.   Through this bill, you'll now have to pay a tax based solely on the miles you drive.  

        2. Coal, as a carbon emitting fuel, would be taxed at a rate that is higher than the coal itself.  Quick translation - The cost of electricity in those states that rely on coal fired energy plants will necessarily increase by double.  Increasing our energy bills by double?  I thought Obama wasn't going to increase anyone's taxes who makes under $250,000?  I guess if you tax the business, and they pass it onto the consumer, it's not considered taxing the consumer.  Very clever!

Clearly, the Cap & Trade was bad legislation.  But the house members (that voted for it) can now return to their districts and secure necessary donations from the environmentalists in their district.   A smart move indeed. 

Now the Senate has to take up this loser of a bill.  It's highly doubtful it will be passed.  When Senators like Claire McCaskill of Missouri (who regularly drinks the liberal kool aide) is expressing doubts about the bill, it's in trouble. She recognizes, correctly, that this legislation will decimate coal producing states, like Missouri, while placing undue burden on business and consumers alike.

Cap & Trade may be the precursor of the next year in Congress.  Each house passes some outrageous piece of legislation that will satisfy their left wing nuts, and then shoot it over to the other chamber for them to show some backbone.

Gridlock in Congress?  We've seen it for decades, but never when one party had such lopsided control.

This one hits close to home, right here in Effingham
(thanks to Jeff B for the item)

New Illinois Governor, New Scandal
David Loses Against Goliath

EFFINGHAM, IL-            

It’s politics as usual in the Illinois governor’s office.  Many Illinoisans were hoping to get the embarrassment of Rod Blagojevich behind them with the appointment of Pat Quinn as governor.

But it’s not to be.

Quinn is trying to force the hand of the Illinois legislature into passing a workable budget.

In the process, a small counseling service in down state Illinois has found that Governor Quinn owes his political career to unions.  And that counseling service has become a bargaining chip in the nastiness of Illinois politics.

And they’re going to lose.

What’s happening?  Here’s a time line of events:

2005:  Employees of Heartland Human Services, a 39-year old, successful, non-profit counseling service in Effingham, IL, were put on notice by a disgruntled worker that the American Federation of State, Civil, and Municipal Employees (AFSCME) would be organizing the Heartland employees. 

2006:  Heartland Human Services’ management and board of directors are forced to the bargaining table with powerful and bullying AFSCME representatives. The HHS board is a small group made up of a cross section of clergy, businesspeople, school district superintendents, and hospital managers.  They hold the line and refuse to capitulate to the extreme demands of the AFSCME reps.  The small board believes to give in to the union demands would create a model that could not survive the disastrous financial climate in the State of Illinois.   Heartland receives 80% of its funding from the State of Illinois.

2007:  AFSCME forces the Heartland employees to go on strike in an effort to cripple the agency’s ability to service clients.  HHS board and management respond by hiring temporary workers and carrying on business.  Union reps incite violent retaliation on the picket line in front of the agency, including hitting passing cars with signs and eggs and verbally abusing working employees with a bull horn and vulgar language.

2008:  After one year on strike, the union offers to come back to work without a contract.  Recognizing a common strategy to inflict internal damage, HHS’ management locks out the union workers.

January 2009:  The State of Illinois goes through a national scandal when Governor Rod Blagojevich tries to sell Barack Obama’s senate seat.  Blagojevich is removed from office and replaced by Lieutenant Governor Pat Quinn in February.  It is common knowledge that Quinn owes his political career to unions and is very sympathetic to their efforts.

June 2009:  Heartland Human Services is advised that their state contracts will not be renewed on July 1^st, the start of the new state fiscal year.  No reason is given, even after multiple requests by the agency executive director, Cheryl Compton, and several state legislators representing the Effingham area.  It is very clear the unwillingness of Heartland Human Services’ board to capitulate to AFSCME demands is the reason.

So, after 39 years of successfully offering services to the economically disadvantaged in this rural community , and passing a recent major audit by the Illinois Auditor General, Heartland will have to shut down its operations. 

Because it wouldn't play ball with the union and Governor Pat Quinn.

Effingham Tea Party - Postponed.  
    Due to scheduling conflicts, the organizers of the Effingham Tea Party, slated for July 4th, have had to postpone the event to a later date.  In the meantime, you can check out Brian Milleville's excellent blog  downstateiladvocate.com  Brian was the organizer of the hugely successful April 15th Tea Party here in Effingham.


Health Care Update
If these are the treatment options, I think we should look for a new Doctor.
    The Obama administration has two different proposals regarding Universal Health Care.

Option 1 - Single Payer system.  In this scenario, the US Government would handle all aspects of health care in America.  My brother Jack offered a pointed analogy as to why Medicare, Medicaid and a single payer system are folly.  

    Imagine if everyone could buy their weekly groceries without having to pay.....anything.  That's right.  What if the government announced that "free food is a right"?  Therefore, everyone can simply go to their local grocery store and buy whatever food they "need", and the government will pick up the tab.  
    Do you think the grocer would have to worry about running any sales?  Of course not.  They'd likely get rid of the hamburger section and replace it all with steak and lobster.  Once you disconnect the recipient of services from the payor, personal responsibility becomes but a memory.  
    Single payer health care is exactly like free food.  Medicare and Medicaid are symptomatic of this disease. 

Option 2 - Taxing health care benefits.    Have you heard about this idea from Obama?  Instead of a single payer system, he would provide free health care to all uninsured by taxing the health care benefits of all employees.  Currently, health care benefits, provided by employers, are not subject to taxation by the government.  Under this Obama proposal, most workers would now face an extra $1,000 - $2,000 in taxes for their health care benefit.  (so much for only taxing people earning $250,000 or more)

    So, an administration that feels health care is a "right", now believes it should be taxed.  (I think voting is currently a "right", as well.  I'm not sure I like where this is heading).
    
    But it gets worse.  The Obama Administration is also promoting the idea that the health care benefits will not be taxed for any Unionized workers.  WHAT!  Yes, if you belong to a union, then your health benefits would be tax free.  

   Hence, a union-free worker will now be required to carry the burden of health care for both the unemployed and the unionized workforce.  

    In the old Soviet Union, privileges were extended to those members of the Communist party.  But benefits were applied evenly to all.  Stalin wasn't smart enough to concoct a scheme as totalitarian as the Obama idea.  It's really socialism on steroids. 

Today in New York City, 71 year old Bernie Madoff will be sentenced for having created the second largest financial fraud in history.  (What's the largest?  The 1,200 page Cap & Trade bill just passed by Congress)
 
Madoff's Ponzi scheme is reported to have erased more than $50 Billion in wealth from it's victims.

Over the weekend, my sister-in-law was entertaining long time friends from New York, including an executive with JP Morgan.  The Morgan exec was involved with wealth management for high net worth individuals.  He regaled me with stories of countless Morgan clients who insisted that JP Morgan invest their portfolio with Madoff. 

JP Morgan made entreaties to Madoff, asking to perform a due diligence of his trading strategy.  Not surprisingly, Madoff refused their inquiries.  As a result, JP Morgan refused to invest in the Madoff Fund. 

But some of their clients couldn't be placated.   So focused were they on Madoff's returns that they removed some or all of their dollars from JP Morgan and put it with Bernie.  Some even loved the Madoff returns so much that they would mortgage their large mansions so they could put even more with Madoff.  Today, those investors, having lost everything (including their homes), are relegated to moving in with their children. 

For more on the impact of this scandal, I recommend a great article on Vanity Fair - Madoff's World.
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Effingham area citizens, don't forget about the upcoming tax protest on the Court House Square.  It will be 4 PM on July 4th.