Cornyn to Ag Committee

Agriculture is critical to the Texas Economy. The Texas economy is leading the nation. It is only fitting that Texas Senator John Cornyn be appointed to the Senate Ag Committee. We need conservative voices offsetting the shrill cry of the animal rights activists.

Senator Cornyn Appointed to Senate Ag Committee

Resistance is NOT Futile

It will be very difficult to sustain a grassroots movement among Conservatives because of their very nature, however, we have a start with the Tea Parties conducted yesterday. There are a lot of disaffected people in this country right now -- especially when you get out of the cities and into the Heartland where there is still productivity which results from a strong work ethic and sense of independence instead of dependence on the Federal largess. My home state of Texas is one of those states where we see the backlash against the extreme growth in federal power is growing quickly. On at least some levels, it is being fueled by some of our leading political figures. The article linked below is an example:

Governor Says Texans May Want to Secede From Union But Probably Won't

The real question to me is this: Governor Perry, are you truly serious about taking control back from Washington or is this all just political rhetoric in light of the race to retain the Governor's mansion?

We have two of the more conservative Senators in Washington but even they are not immune to the corrupting influences of power politics played on the national stage. I pray that they will fight the fight of the people and resist the forces that are moving us toward -- not Socialism -- but, an all pervasive and invasive government that seeks to run every aspect of our lives. That my friends is something to be feared. It is all about power and that power was handed to a group of people who, under the guise of the Democratic Party, will stop at nothing to consolidate their hold on the reins of power. If they are not stopped now, it will become increasingly difficult to stem the tide of corruption and government invasion into our lives. We must create a groundswell of resistance to the tide of Big Government that is washing over our country. It will be a long and arduous fight that is difficult to sustain but it must be done if we wish to save the United States.

A Step in the "Right" Direction....

Thank you Senator Cornyn!

Senate Overwhelmingly Passes Cornyn Measure To Protect Small Businesses From Higher Taxes

It Has Begun

It has begun.

First, we see the appointment of a darling of the HSUS (which by-the-way has NOTHING to do with your local animal shelters) to a key position.

Second, we see the CIA shackled so they can no longer do their job.

Third, we see Nancy Pelosi gloating over the exit of the now former President.

John Cornyn is the one bright spot that I see in Washington. He is becoming more-and-more vocal in his position of leadership of the opposition.

Is Texas Influence Waning?

There's an article in Politico today about how Texas is losing its clout in Washington. There is little doubt that in positions of leadership (in title at least), the country will suffer from the lack.

One thing that I find interesting about the article is how it links figures such as LBJ with the conservatives of recent years and the middle-ground figures such as both Presidents Bush. It discusses how being Texan in Washington automatically brings connotations of conservative Republican. Such views are revealing of the author's biases.

The article does mention U.S. Senators Kay Bailey Hutchison and John Cornyn. While Hutchison is somewhat more moderate than Cornyn, both certainly fall toward the conservative side of the political spectrum.

There is speculation that Senator Hutchison may choose to run for Governor in the next election. Such a run would again change the influence of the state. It is entirely possible, and I think likely, that current Texas Governor Rick Perry would run for Senator Hutchison's seat if she were to make that move. It would certainly put an interesting twist on the races.

Governor Perry has established himself as a national figure in many ways. He has received national attention over ethanol subsidies, immigration and trade with Mexico as well as providing leadership among the governors of the nation. It would be difficult to adjust to being a junior Senator, but, it might be a great springboard for a run at the Presidency in 2016. After all, how many Presidents have been both governor of a large state and had Senate experience?

All that aside, I think we will see Senator Cornyn moving into a strong position of leadership within the National GOP. He has the experience and the influence as well as the support of his home state. The Senator is strong on family values and has fought for legislation that is important to not only his state, but the nation -- in particular, energy related issues. I look to see Senator Cornyn rising quickly now that the election is past and his seat is secure for a few years.

Texas will still play a key role in shaping the national political scene. Which state's economy is strongest in the current economic turmoil? Texas without a doubt. Which state is leading the way in developing alternative energy solutions? Texas, with its vast wind resources and developing solar energy. Texas also has a couple of nuclear power plants in the works. Texas is also a player in the high-tech sector with the silicon corridor stretching along I-35. It continues to be a leader in agriculture and is well positioned in many other areas. After all, it is THE ECONOMY that elects Presidents. Someday folks will figure that out...maybe....

Three Important Races and My Endorsements

Today is the BIG DAY! If you haven't done so already, you need to go VOTE! In this election cycle there are three races in which I am especially interested in seeing the results.

President: John McCain and Sarah Palin. Anyone who has read my blog in the past will know that I believe the McCain Team to be by far the best for the U.S. His opponent will do all in his power to move our country toward socialism. He must be stopped. John McCain has spent his life in service to his country. That is the kind of leadership we need.

U.S. Senate (Texas): John Cornyn. Senator Cornyn has been a consistently conservative voice for Texas. His votes have reflected thoughtful attention to the traditional family-oriented values of our state. He supports our troops and seeks to protect our borders. We need to return him to Washington.

Texas Railroad Commission: Michael Williams. Commissioner Williams has been endorsed by about every newspaper in the state. The growth in the energy sector in our state has been in good hands under his leadership of the commission. We need to return him to office.

The above individuals are the kind of representatives that we need. They are not power-hungry, self-aggrandizing politicians, but are committed to serving the people of this country. That is what we need.

Fiscal Issues Week Focus of Senator Cornyn

With the current economic turmoil faced by our nation being prominent in the news, U.S. Senator John Cornyn has focused his website on fiscal issues for our nation. I am privileged to have a guest post on the Senator's site which can be viewed here. I appreciate the Senator's efforts to bring these vital issues to the public's attention during this election season. He has been a strong advocate for fiscal conservatism and I believe will continue to bring that message to the Senate as we send him back for a second term. Thank you Senator for your efforts!

Yard Signs and Newspaper Endorsements

I've been doing a lot of traveling lately. Some has been in Texas and some elsewhere. Last week I was in Florida and Georgia. I saw a lot of McCain-Palin yard signs and very few of the other. It might be because I was mostly in rural areas. While in Georgia I heard very strong support for Senator McCain and saw only one T-shirt that was pro-that-other-guy.

Tonight I'm in Victoria, Texas. As I drove from Amarillo to Victoria I saw almost exclusively McCain-Palin yard signs until I arrived in the Austin area. The same with U.S. Senator John Cornyn. Austin seemed to have a good mix with possibly a slight edge to the more liberal candidate in both the Presidential and the U.S. Senate race.

After I left Austin this morning and headed south to Victoria I saw a few signs promoting the liberal Democrats and a few supporting McCain and Cornyn. It was much more mixed than the western parts of the state.

So, what does that portend for the races? I don't really know except that based on my trip and a rough count of political signs I would call the races (in Texas) 52% McCain and 46% to the Democrat with the remainder going to Ron Paul. In the Senate race I would give 62% to John Cornyn and 35% to the guy that sounds like a Central American dictator and a couple of percent to the fringe parties.

If you look at newspaper endorsements it looks like a sweep by U.S. Senator John Cornyn. I believe that he has 14 endorsements to date while his opponent has ZERO. I don't know about endorsements for McCain/Palin but I suspect that it is in his favor across the state.

The media keep talking about how bad the economy is but I don't see it. The traffic is heavy, trucks are hauling equipment, fields are being harvested or plowed, houses are being built, highways are under construction and restaurants are full. Maybe Texas is unique to the country but I don't think so. I saw the same when I was in southern Georgia and northern Florida last week.

Everywhere I look I see abundance. Our country is amazingly blessed. I think that we need pro-business, pro-growth, pro-family, pro-morality, pro-tax relief, pro-spending control government. I know Senator Cornyn fits that profile and I believe that Senator McCain does as well. If we want to regain control of our country we need to get the Nancy Pelosi's, Harry Reid's and B.O.'s out of Washington.

Random Thoughts on Markets and Elections

It has been difficult to feel like posting anything the last few days. All we hear from the national media is how the economy is falling apart and the Presidential candidates are calling each other names.

It is virtually impossible to pick out the tidbits of truth in the various political advertisements (which includes "debates") because they are hidden in a fog of nothingness. We hear vague statements with little substance.

It is sad that the political process has devolved to mudslinging, but it's been that way since George Washington left the job to his successor. We don't have true debates, just positioning and one-liners designed to get media coverage. Let's talk about the merits of the plans that each candidate offers. Give us some substance instead of smoke for a change. We're big kids now, we can handle it.

Senator McCain is somewhat left of where I'd like him to be on many issues. If it wasn't for Governor Palin's presence on the ticket, he would really be struggling with the conservative voters. The trouble is, there really isn't an alternative. Obama is so far left-of-left (in spite of what he says) that he makes McCain look conservative.

As to the economy, I'm optimistic. Where there is turmoil, there is opportunity. I feel fortunate to live in Texas. We have a little different view of the world here than the folks on either coast. In fact, I expect any day for California and Massachusetts to be asking the State of Texas for a loan. The U.S. government is bound to be running pretty low -- they've given so much away lately. But, hey, what's a few hundred billion here or there anyway? Oh, wait! That's our money! I wish they'd stop doing that!!

Folks panicked this afternoon on the stock market. Maybe after they sleep on it they'll decide it's time to buy back. I'll bet the market opens up in the morning.

Locally our banks are strong and our economy is chugging along steadily. We've been in a bit of a boom -- and still are -- it does appear to be slowing a little bit but not much. We're building windmills and ethanol plants, digging new oil and gas wells, and the traffic on the highways is getting worse all the time. The farmers are harvesting their crops and the cattlemen are turning cattle out for fall grazing. It seems pretty normal around here -- except the old guys in the coffee shop have a little something extra to talk about.

I hate that I missed it, but Senator Cornyn was debating his opponent for his Senate seat tonight in Houston. I'm sure he was attacked over the economic mess but I think if the voters will look around and take stock of what's going on in this state they will recognize that the Senator has done a pretty good job representing their interests. The Senator's opponent -- I keep forgetting his name, but I know it's the same as some Central American Dictator from a few years back -- is clueless. He keeps preaching the same old socialistic theme as the Clintons and Obama/Biden. I guess it has a certain appeal to the deadbeats, but people around here are mostly hard-working, clean-living folks with strong family values. That's the kind of values Senator Cornyn represents. If the people are thinking come election day, instead of listening to the liberal media, the Senator will be going back to Washington to represent us again. Hopefully he will be in a position to start cleaning up the mess they have up there. He can't do it alone though. We need a few more like him. It's too bad some of the other states won't wake up and follow Texas' example on how they are represented in Washington. That's the kind of change we need. I wonder if Senator Cornyn would consider running for President in the future?

Making Tough Decision

I almost titled this post "The Bitter Pill" but thought better.

The Senate has voted in favor of a $700 Billion bailout of Fannie Mae/Freddie Mac. Wow. $700 Billion is a lot of money no matter how you view it. What do the taxpayers get in exchange? We get to be in the mortgage investment business corporately (as in we're all in this thing together). We will own $700 Billion worth of mortgages which are secured by about $560 Billion worth of real estate (assuming a 125% of value mortgage).

Once we own those mortgages what will we do with them? The first hope is that we could re-sell them on the open market. That could be a problem. The one's the government will own are the one's no one else wanted in the first place. Will we foreclose on the properties for those mortgages that are non-performing? Hmm -- I have a hard time seeing that happening although it does in small doses already. FHA has been foreclosing on real estate for a long time.

Let's say that we eventually will recover about half of the $700 Billion by either selling the mortgages or the foreclosed properties. That means about $350 Billion will be non-recoverable debt -- that will be made up from taxes. That's what makes this such a bitter pill to swallow.

But, let's look at the other side of this. What happens without a bailout?

First, we have a bankrupt Fannie Mae and Freddie Mac. Their assets are liquidated by the court and the net result to the economy will still be a loss of about $350 Billion. But we also have all of the $5.3 Trillion in mortgages that were guaranteed by Fannie Mae/Freddie Mac whose guarantees are now worthless. Any of the mortgage based securities sold to various financial institutions and individuals that are non-performing are now worth considerably less than their previously guaranteed value.

In the case of securities held by individuals, it is a matter of writing down their value, taking the loss and moving on. In the case of those held by financial institutions there is suddenly a huge problem. When the securities are written down, the financial institutions must then "classify" those assets as non-performing. Those classified assets offset the capital of the financial institution and cause many to drop below the minimum threshold required by the FDIC or other regulatory bodies. It also drops the available funds for lending to borrowers even though they may be well-qualified borrowers. In other words, the credit market dries up and many banks fail.

What happens when the credit market dries up? Business comes to a halt. Grocery stores can no longer stock their shelves. Auto dealers can no longer extend credit because somewhere behind that dealership is a bank or other financial institution underwriting the loan. In fact, many businesses will fail if credit becomes tight. When businesses fail, people lose their jobs. When people lose their jobs in an economy which is contracting due to unavailability of credit, there is little hope of finding a new job. We enter into a Depression.

This financial disaster is NOT a Wall Street problem alone. It is a Main Street problem. It affects the stock market because corporations must have credit to operate. The real problem though is the impact on the credit markets. Without credit, our economy comes to a halt. The taxpayers are going to be hit whether a "fix" is passed or not. The hit will be much harder and much more severe without a fix. No fix means Depression and huge loss of equity in retirement plans and many other assets. A fix means buying time to come up with a longer-term solution.

I applaud those Senators, like John Cornyn, who voted in favor of the fix. They knew that it was not the popular thing on Main Street. But, they also know that it is sometimes necessary to make tough decisions. I mention Senator Cornyn because he is up for reelection this year. His opponent can make political hay of this vote and if he's smart, will do his best to make the Senator appear to favor Wall Street over his constituents. In fact, it's the other way around. By making the tough call, Senator Cornyn is siding with the people of Texas. I pray that he will have opportunity to present legislation that will begin the process of fixing the underlying problems that created the financial meltdown in the first place. We need to send him back to Washington for another term.

Get Out the Military Vote

U.S. Senator John Cornyn has developed a new website to help our military to be able to vote in the upcoming Presidential election. It is a portal to important information and critical dates to ensure that their vote will count. Please get the word out to any military personnel that may have questions about their voting rights. It can be accessed at www.texasmilitaryvote.com.

Hutchison for Governor?

The rumors are flying and seem to have credibility that Texas Senator Kay Bailey Hutchison will run for Governor in the 2012 election. That may seem like a long time away but it will be here before you know it. I applaud her move.

Texas Governor Rick Perry has done an admirable job but it is time for someone else to step into that position. We might even see Governor Perry run for her Senate seat. I suspect that his ambitions run in that direction. Senator Hutchison's announcement that she would resign her Senate Policy Committee Chairmanship was met with a political riposte by a Perry spokesman that indicated she should be focused on helping Texans recover from hurricane Ike rather than on politics.

We will see what Hutchison's move does for Senator John Cornyn, currently the junior Senator from Texas. It could mean that he will move into her Chairmanship post. It may place him in a stronger position within the Texas Republican political hierarchy as well. He is challenged this year for his Senate seat by Rick Noriega. Noriega has conducted a bumbling campaign so far and with only a few weeks until the election is expected to fall well behind Senator Cornyn in the voting. It is in Texas' best interest to return Senator Cornyn to Washington. He has become a strong and very influential player in the Senate.

A Transfusion to Buy Time: The Bleeding Financial Markets

How is the average person to understand the mess in the elite community of Financial Powerhouses that has prompted a complete shakeup on Wall Street, an $85 Billion loan to shore up a huge insurance company and a potentially $700 Billion bailout of two mortgage lenders? Even the gurus of Wall Street are struggling with making sense of the markets today. Congress, quite frankly, probably lacks the expertise to deal with the problems. Our legislators must rely on their staff for the expert advice on how to proceed. The influence peddlers will certainly be out in force attempting to shape the outcome.

To even begin to analyze what created the mess we are facing would require several volumes. We must examine the history of the financial markets, insurance markets and banking industry. We must dive into the history of legislative initiatives that have blurred the lines between the various kinds of financial institutions. We must look at the evolving attitude in business schools toward profit at any cost. We must examine the methodologies taught to MBA's and Financial Analysts. We must look at Federal Monetary Policy and interest rate markets. We would have to delve into the myriad financial instruments and types of financing arrangements that are the specialty of a minute few. We would need to discuss policies related to housing for low-income families and the necessary guarantees to enable availability of financing for individuals who have accumulated insufficient capital to merit loans without those guarantees. We would need to look at retirement packages and policies that regulate 401 K's and IRA's. We would need to look at the basic money management skills which should be taught to every individual passing through our school systems. We would need to investigate the investigators -- those regulatory agencies responsible for overseeing the various and complex behemoths that control the billions and trillions of dollars that pass through them. The list goes on....

The crisis is of a complexity that few fathom and none can fix quickly and easily. It is the result of the cumulative effects of decades of policies, legislation and regulation. However, we must stop the bleeding quickly. The wound may or may not be fatal. It will take much more than a Band aid to fix. It will require major surgery and years of therapy.

Hopefully, Congress will buy us some time with the bailout in order for the surgeons to begin their work. The transfusions have been started but the surgery will be long. I pray that our leaders, such as Senator Cornyn (his thoughts here), will have the wisdom to steer us through the surgery and onto the path of recovery.

Education and Immigration Issues in Texas Senate Race

The Texas Senate race pitting incumbent John Cornyn against Rick Noriega has had a number of interesting chapters. Most of them emphasize the fact that Noriega is a little confused in his offered solutions. The newest proposal by Noriega concerning education reform is full of contradictory statements and vague plans -- especially in regard to education for the children of undocumented immigrants. According to an article in the Houston Chronicle, Noriega believes the state should pick up the tab for educating those children which are a result of federal border policy, yet has no idea what that cost would be. He also calls for ending unfunded mandates from Washington, presumably because of the cost to Texas taxpayers, and yet those unfunded mandates are what cause the state to be required to pick up the tab on undocumented immigrant children in the first place. Senator Cornyn on the other hand, would like to see the federal government pick up the tab for their mandate.

The real issue though, is the irresponsible way Noriega proposes sweeping changes without an estimate at least, of the cost to Texas taxpayers. You would think that a current state legislator would have a better grasp on what it takes to educate our children. How can he possibly expect to gain the trust of the voters of Texas when he seems clueless on one of the most basic issues of concern to Texans?

Texas Polls and the Senate Race

The Texas Senate race this year is a match up between the Republican incumbent, John Cornyn, and State Representative Rick Noriega, a Democrat. In many ways, it is easy for the people of the state to dismiss the race as a foregone conclusion. Such an attitude could be very dangerous for Senator Cornyn. That is why he is spending a lot of time campaigning this election season.

The latest poll, produced by the University of Texas, shows Cornyn with a lead of 13% with a split of 44% to 31%. That seems to be a strong lead until you consider that almost 25% of those surveyed expressed no preference. That large number could significantly sway the election either direction.

The large number of "no preference" voters may be a reflection of the general dissatisfaction with Congress and with government in general. In the same poll, respondents were asked to express whether they thought the country was heading in the right direction, or the wrong direction. Those who thought we were heading in the right direction accounted for 20% of the responses while those who thought we were heading in the wrong direction accounted for 67% of the responses.

Economic perceptions were also assessed in the polling questions. Respondents indicated they thought the country was in worse economic shape by 81% as compared to 2% believing the country was better off. I believe this response is largely shaped by media constantly barraging print and air with stories of how poorly the economy is doing. However, when asked about their personal economic situation, 51% thought their personal situation was the same or better.

The Presidential race is likely to have a strong impact on the Senate race vote. Many down ballot votes will follow the party of the voter's Presidential candidate choice. In the Presidential race, the votes track fairly closely with the Senate race with a 42% to 33% split -- slightly narrower, but strongly in favor of McCain. That leaves 25% who are either undecided are who prefer a minor party candidate.

The number that really stands out to me is the almost 25% who expressed no preference in the Senate and Presidential races. I believe that it is because they see Congress -- and government in general -- as not acting in their best interests. It reflects the growing segment of the population who feel powerless to affect the legislative process.

Iraqi Reconstruction and Budgets

Even as I continue to support the efforts of our troops and the Bush administration in Iraq, I agree that a successful conclusion to the operation is desirable. Part of success is the ability to stand on one's own feet and to take charge of one's own future. Reports of significant budget surpluses for the Iraqi government are an indicator of the success of both our efforts to reconstruct their country and of their own efforts at establishing a sound economic basis for survival.

While it is desirable that we continue to have a significant role in how the Iraqi economy is shaped as it moves toward our disengagement, it is also desirable for the Iraqi people to take greater responsibility for their own success. It is time that they utilize the oil revenue that has been enabled due to our efforts, to invest in their own country. I agree with Senator Cornyn's call for the Defense Department to begin transitioning reconstruction of Iraq's infrastructure to the Iraqi government. Let them pay their own way now that the means are available.

Senator Cornyn: Fighting the Energy Fight

Senator Cornyn is continuing to fight for the American people on the subject of energy and high fuel prices. He pulls very few punches in his condemnation of Senator Reid and Speaker Pelosi as well as other prominent Democrats over their political stonewalling on this critical issue. I applaud his continued efforts. Read what he is doing here and here.

Energy: All of the Above

Senator Cornyn once again weighs in on the issue of Energy. The present gains on energy legislation are a result of the Democrats caving slowly to the building pressure from the electorate. Watch out though, come this fall if they retain their control of the House and Senate and possibly add the Presidency, the consumers in this country don't stand a chance. Energy prices will go through the roof. Why? Because they (the Democrats, er, Socialist Elite) don't want us using it! They want to be the elite (as in the Politburo) controlling the masses -- subjugating us to be their servants. It is eliteism at its worst. It is reminiscent of the rebellion of the working classes that resulted in the Communist Dictatorships of Stalin and Lenin. Sigh. Why are people so blind?

Cornyn Comments on Supreme Court Nominees

History tells us that the next President will likely have the opportunity to make at least one and possibly two appointments to the Supreme Court. Senator John Cornyn has posted some very insightful thoughts on that on Governor Huckabee's blog. Head over there for a look!

Subsidies, Trade, Agriculture and Security

Rising global food prices have created some interesting dynamics in recent trade discussions. In the past, agricultural subsidies and import/export tariffs have been a sticking point in any negotiations. One reason for this is that many countries wish to protect their agriculture industry due to security concerns. If world agricultural product prices are low, many industrialized countries cannot compete on the world market. Their producers are threatened with failure. So, the governments of those highly developed economies typically subsidize their farmers in some fashion so that they can remain in business and thus keep agriculture viable.

With high food prices, the subsidies are not as necessary to maintain viability for famers in advanced economies. They can compete with low-cost producers such as Brazil. This provides the opportunity for those governments to offer a cut in farm subsidies in exchange for things like reduced import tariffs for manufactured goods in countries that have erected barriers to protect their industry for reasons similar to industrialized countries protecting agriculture.

Ultimately, the most efficient way to allocate the world's resources is with a completely open, free market. This of course would necessitate that the world's governments all feel safe enough from their neighbors to believe that dropping protective barriers is prudent. Those barriers are like an economic stockade or fort. Just as a country seeks to protect itself militarily, it must protect itself economically.

In the last 30 years, the U.S. has exposed itself economically, yet has maintained its world preeminence in some respects, by its military power. Countries fear to take economic retaliation on the U.S. because of the potential for an overwhelming military response. Our dependence on foreign oil has weakened our position. We now are at extreme risk due to our high dependence on foreign sources of petroleum. Have we stretched our military capacity to the point that the military threat is less likely to offset that economic threat?

We must achieve energy self-sufficiency. We also must remain vigilant to maintain our food security. The greatest strength of our country is our economic system. It is also our greatest point of vulnerability. If we are hostage to foreign sources of energy -- or, through exposing our agricultural sector to extreme market vulnerability by eliminating a system of price subsidies -- we offer ourselves to the mercy of our enemies.