Why does everyone think the Bain Capital issue is about attacking capitalism?    The issue is not about capitalism or attacking capitalism.   I’m going to keep bumping this thread because so many people just don’t understand the liability Romney has with Bain.

Allow me to explain the issue Obama will use to tear this nation apart, and I see as the greatest risk to our “republic”.  And more specifically, how Mitt Romney is the one person who can do nothing about it.    It’s not Obamacare.  It’s worse.

President Obama is apt, nay skillful, in the use of fear and division to create alignments within his coalitions:  Big Labor, Minorities, etc.  and the one fear that drives an emotional reaction is the fear of losing financial security.

There is a massive unsustainable obligation of Public Sector Pensions in almost every state, and indeed within the vast majority of AFSCME employees the fear of deconstructed or renegotiated pension entitlements is a looming issue.   In almost every state like California, Illinois, New Jersey, Wisconsin, New York, etc. the fiscal issues of unsustainable obligations will require public workers to accept diminished benefits.   Unless the federal government steps in.

I have stated unequivocally this will be the end of the Republic as we know it.   When one fiscally prudent state is required to bail out the unsustainable obligations of another state by federal intervention through a taxpayer subsidy the republic will have collapsed and one looming federal governmental system will be in place.

It is specifically part of the Obama plan to initiate such a bailout.    He has done so already with a $30 billion education sector bill in 2009, not to mention the 70% of the “stimulus bill” that was sent to the states and spent on propping up public sector workers payrolls.

Against that backdrop of a re-election plan this is where a Romney candidacy plays right into the Obama scheme.

Because Mitt Romney cannot advocate against federal pension/benefit intervention when he himself benefitted from the exact same intervention machinations as part of the Bain Capital business endeavors.    Part of the ‘success’ in generating wealth for the capitalists corporatists at Bain was their ability to take apart failing business, sell off the assets, and then leave the pension/retirement obligations of the workers to be bailed out by the  government and taxpayer.

Personally I see this as a much bigger liability for Romney than his leftist decision to initiate Romneycare in Massachusetts.

The only way out of this State fiscal issue is to either a.) set up a system for a state to declare bankruptcy, or b.) set up a system for the federal government to buy the bonds of the individual states; the latter being essentially a bailout albeit of a different name.

Conservatives have generally held opinion that State Issued bankruptcy is the better option, placing the burden of restructure and reform on the state itself and keeping their unsustainable obligations squarely on the shoulders of the fiscally irresponsible state.    Liberals believe in federal intervention to “protect” the workers and “insure” the irresponsible obligations, or promises, are met.

Obama will use this as a key tool in his re-election effort, and the fear created by the leaders within those massive labor unions toward their members will drive support for Obama term 2.

Only one candidate has openly advocated for a system that would allow individual states to restructure their obligations, and if necessary declare bankruptcy.   Newt Gingrich.