Rope-A-Dope Obama
Research for Online Investors

by John Dalt

1/18/11

You may have heard that President Obama wrote an article that was published in the Wall Street Journal today.  You can read the president’s article, Toward a 21st-Century Regulatory System.  The appearance of the article, probably ghost written, causes a quandary for many.

Many will see the president striking a conciliatory tone of compromise with the Tea Party dominated House of Representatives and instructing the regulatory agencies to use “common sense” in new regulations.  Is it really possible?  We heard two weeks ago that the president was studying Ronald Reagan while he was on vacation.  We think he studied Mohammad Ali.  We are prepared to watch a repeat of the “Rumble in the Jungle” as Oh! Bama (Ali) plays out the first few rounds of the coming fight with congress employing a” Rope-A-Dope” strategy.

The liberal press is aghast that President Obama seems to be against regulation.  The Huffington Post carries an article from a typical progressive concerned that the president would favor business over the ‘little people.’  You can read a liberal’s take on the presidents op-ed, What Does Obama's Op-Ed on Regulation Mean?

President Obama can sit back and let the House of Representatives pass all the contentious bills they want. First up is a repeal of Oh! Bama care.  That will be this week.  While the house is debating, the president will host Chinese President Hu Jintao.  There will be more skirmishes in the next few weeks to let the house punch themselves out.  Harry Reid in the Senate will never let any republican bill see the light of the chamber.

The republicans are painted as extremists in the mainstream press while the president stands afar extolling the virtues of capitalism and works to make regulations ‘work for America.’  We see a culmination on raising the debt ceiling.  Will it be like the eighth round in Zaire?  Will Obama deliver the knock-out punch?

Treasury Secretary Tim Geithner has voiced his concern about the tragedy that could befall the nation if the debt ceiling is not raised.  If the House of Representatives does not ‘play ball’ and raise the debt ceiling, the Chicken Little’s will scream the sky is falling, all because of the republicans.  They are not responsible.

Remember, while all of this is playing out over the next few months, the Secretary of Health and Human Services is writing dictates and regulations to control the health care of every American.  The Environmental Protection Agency (EPA) is implementing new rules to restrict emissions of carbon dioxide by large industrial and power generation companies.

New regulations are being written to control the banks in compliance with the Dodd-Frank financial regulation law passed last fall.  The Dept. of Interior keeps permits to drill in the Gulf of Mexico just out of reach with changing regulations that require more study.  The list goes on.  Alcohol Tobacco and Firearms (ATF) proposed new ‘emergency’ gun laws for border state gun dealers last Friday night.

It will be great fun to watch, but sometimes we wish we could take the same attitude as Hunter S. Thompson.  Rolling Stone magazine sent Thompson to Zaire to report on the Rumble in the Jungle.  According to Time magazine, Thompson was distracted by a bottle of alcohol and the hotel swimming pool.  He missed the fight and did not file a story.

The election campaign for 2012 has started, and the President is responsible, reasonable…a leader.  As Tiny Tim said “God help us all.”

To the mailbag:
Check out this article on oil and fuel from water and ‘bugs’  It could result in fossil fuel on demand----paid up subscriber D.E.

John’s comment:  I read the article, went to the company’s website.  Very interesting, and seems to be legit.  It will take time.  We will watch.  Here is an interesting point. The company does not qualify for any renewable energy funding from the government because it does not fit the government’s criteria for a promising technology!  Another example of the inefficiency of the government picking winners and losers.

The information presented in this newsletter is based on generally available news releases, corporate filings, current events, interviews and the editor’s opinions.  It may contain errors and you should not make investment decisions based solely on what you believe you have read here.  Do your own research, it is your money.  If you lose it, it is your responsibility, not ours or your grandmothers!  The editor may or may not have a position in any securities discussed.  The editor may have held a position in a security earlier, or in the future.

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