President Obama has resurrected Ronald Reagan's plan to permanently close the Small Business Administration (SBA) by combining it with the Department of Commerce and has renamed it "streamlining government."

Reagan made it clear that he wanted to permanently close the SBA during his term as president. His plan to close the SBA was to combine it with the Department of Commerce.

In January of 2012, President Obama announced his plan to close the SBA in the same manner Reagan tried. I first predicted President Obama would try and close the SBA by combining it with the Department of Commerce in November of 2008.

Reagan faced stiff opposition to "closing the SBA" and ultimately, his plan failed. To avoid the dramatic opposition Reagan faced in outright "closing the SBA," President Obama has simply renamed Reagan's plan "streamlining government."

By naming his plan to close the SBA "streamlining government," President Obama has succeeded in avoiding the public outcry and opposition Reagan faced and he has been able to avoid any media coverage of his plan to close the SBA. So far, not one major media outlet has mentioned that President Obama has adopted the exact same plan Reagan used to try and close the SBA.

Federal law requires that a minimum of 23 percent of all federal contracts be awarded to small businesses. Pentagon prime contractors are the force behind the plan to close the SBA. If the SBA was dismantled along with the 23 percent small business goal, 100 percent of all federal contracts would likely go to large businesses, particularly those in the defense and aerospace industry.

Federal prime contractors are also required to award 23 percent of their subcontracts to small businesses. A series of federal investigations, litigation and media reports have all found prime contractors have falsified their compliance with the 23 percent small business-contracting goal and that most federal small business contracts actually go to large businesses.

The diversion of federal small business contracts to corporate giants has been widely reported in the mainstream media. The SBA Office of Inspector General has named the diversion of federal small business contracts to corporate giants as the number one problem at the SBA every year of the Obama administration.

Once the SBA is combined with the Department of Commerce, the 23 percent small business contracting goals will be quietly dismantled and the rampant fraud that has been uncovered at the SBA and the Pentagon will become a moot point. With the SBA closed, President Obama can avoid more embarrassing federal investigations and investigative stories about the rampant fraud at the SBA.

For the latest video from the ASBL, click here.

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If President Obama is going to get away with closing the Small Business Administration (SBA) and destroying all federal small business programs under the guise of "streamlining government" it will be essential for the mainstream media to lend their support. Any factual, accurate or honest coverage of the president's plan could be extremely detrimental.

If the mainstream media really wants to back the president on this one, there are a number of areas where their assistance will be essential.

1. Do not use the word "close." Any reference to the president's plan to shut down the SBA must be referred to as "streamlining government" or "combining agencies."

2. Journalists must refrain from any mention of the fact the president's plan to "streamline government" will involve combining the SBA with the Department of Commerce. Journalists should absolutely avoid any and all accurate information about the fact the SBA represents the nation's 28 million smallest businesses and the Department of Commerce represents the interests of the nation's largest, mega huge, gigantic, colossal corporate giants. All journalists must not mention that combining the SBA and the Department of Commerce would be like combining NASA and the Department of the Interior or combing Al Qaeda and the Department of Homeland Security or combining the largest Mexican drug cartel with the DEA or combining the North American Man/Boy Love Association (NAMBLA) with Child Protective Services or combining, well you get the idea. 

3. Next, journalists that really want to show their support for the president in his efforts to cheat American small businesses out of billions of dollars in loans and federal contracts must not mention any of the U.S. Census Bureau statistics that show small businesses are responsible for over 90 percent of net new jobs, over 50 percent of the GDP, over 50 percent of the private sector work force and over 90 percent of all U.S. exporters. If the general public ever found out that small businesses were the actual engine of economic growth and job creation in America, it could be disastrous to President Obama's plan to close the SBA, no wait, I mean, "Streamline government."

4. The next, very important point is journalists must not mention the absolute insanity, lunacy and horrifying judgment of President Obama's plan to "streamline government" to save a measly, paltry, miniscule, insignificant, infinitesimal $300 million a year. Journalists should surely avoid any mention of facts like how the SBA budget is .001 percent of the Pentagon budget and Pentagon auditors have found the Pentagon loses around 25 percent of their $700 billion dollar budget each year. Helpful journalists should certainly avoid breaking down the $175 billion a year the Pentagon loses to show they lose more money in a single morning, about $344 million, than President Obama claims he can save in a year by "streamlining government." Journalists must avoid the fact that the Pentagon loses enough money in a day ($700 million) to run the SBA for a year.

5. One of the single most important facts that must be avoided at all costs is President Obama's plan to spend $7 billion of America's hard-earned tax dollars to build power plants in Africa under his "Power Africa" program. You can just imagine the public relations nightmare if the general public found out the truth that the president was going to close the only agency in government to assist the 28 million small businesses, in order to allegedly save $300 million and then turn around and spend $7 billion to build power plants in Africa. People would be outraged, so clearly any facts about the president's "Power Africa" program should be strictly avoided.

6. Another issue regarding the Department of Commerce that needs to be avoided is that every year of the Obama administration, federal investigators and journalists, disloyal to the Commander and Chief, have found rampant fraud at the SBA. They've found that most federal small business contracts actually go to the very corporate giants the Department of Commerce represents. You can just imagine the public outcry if the general public realized the president's plan to "streamline government" meant turning over all federal small business programs to the very corporate giants that have been allowed to hijack billions of dollars in federal small business contracts for over a decade.

7. The next point involves Lloyd Chapman and the American Small Business League (ASBL). All Obama-loyal journalists must not mention the fact that Lloyd Chapman predicted President Obama would try and close the SBA by combining it with the Department of Commerce in November of 2008. It should never be mentioned Chapman has won over 20 legal battles in federal court against the Obama administration under the Freedom of Information Act that have exposed rampant fraud at the SBA. The fact that Chapman exposed that 235 Fortune 500 firms received federal small business contracts last year should, of course, be avoided. It could be a real nightmare if people found out Entrepreneur Magazine said Chapman might be a "modern day Cesar Chavez" for small businesses in America. If our president is going to be successful in destroying all federal programs developed to help the small businesses that create over 90 percent of net new jobs, the general public must not watch any of Chapman's national television appearances fighting for small businesses. We absolutely must not allow any mention of that really funny video Chapman made that shows all the federal investigations and disloyal media reports of widespread fraud at the SBA. (Journalists are also advised not to watch the video because we do not want any facts and irrefutable evidence clouding your mind.)

8. Finally, all we need to do to support our president is to keep all of the facts surrounding "streamlining government" out of the press for a few more days. Once the SBA and the Department of Commerce are combined, all the facts and evidence of the rampant fraud at the SBA will be completely swept under the rug, once and for all. All federal programs to help small businesses can then be quietly dismantled and all of the SBA staff will quietly disappear. Of course, the use of the words "cover up" are strictly forbidden.

Hail to the Chief!

P.S. Remember, make sure no one sees that embarrassing video Chapman made exposing fraud and abuse at the SBA. 

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In November of  2008 I predicted President Obama would try and close the Small Business Administration (SBA)  under the guise of combining it with the Department of Commerce. In January of  2012 he proved me right and announced his plans to do exactly that.

When Ronald Reagan tried to permanently close the SBA his plan was to  combine it with the Department of Commerce.

President Obama's sole justification for closing the SBA is to save $300 million a year. The SBA annual budget is  around $700 million. The Pentagon budget is around  $700 billion. The SBA budget is just .001 percent  of the Pentagon budget.

The Pentagon's own auditors found they cannot account for 25 percent of their expenditures. That means  Monday through Friday, 8 a.m. to 5 p.m., the  Pentagon loses around $86 million an hour. The  Pentagon loses more money before lunch each day than  President Obama proposes to save in a year by closing the SBA. That means the  Pentagon loses enough of our tax dollars every day to run the SBA for a  year.

Every year of the Obama administration, the SBA Inspector General, Peg Gustafson, who was appointed by President Obama,  has named the diversion of federal small business contracts  to corporate giants as the number one problem at the SBA.

The SBA was forced to release information under the Freedom of Information  Act that proved over 230 Fortune 500 firms received federal small  business contracts last year. No federal law allows Fortune 500 firms to be  considered small businesses.

The SBA represents the interests of the nation's 28 million small businesses.  The Department of Commerce represents the interests of the nation's largest  corporations. When the most persistent problem at the SBA is the diversion of  federal small business contracts to corporate giants, does it make sense to  combine those two agencies? I don't think it does. I think that might best be  described as letting the fox watch the hen house.

America is facing the worst economic downturn since the great depression. U.S.  Census Bureau data tells us small business are responsible for over 90  percent of the net new jobs, over 50 percent of the private sector work force  and over 50 percent of the GDP. Clearly, small businesses are the engine of  economic growth and job creation in America.

Does it really make sense to close the only agency in government to help the  28 million small businesses that create over 90 percent of the net new jobs to  save less money than the Pentagon loses before lunch each day? I don't think it  does.

For the latest video from the ASBL, click here

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