Category Archives: economic outlook

What was wrong with Obama’s speech? Everything.

In presenting his so-called “Jobs Plan” to the Congress, President Obama was 100 percent in everything he is good at. 

1.  It was a well crafted and delivered  campaign speech — more fitting for the stomp than a joint session of the United States Congress.  There is no doubt that Obama can make a good speech.  It is hard to disagree with a lot of things he says.  However, what he does not say and what he does has little in common with his words.  This was not an exception.  It is a character trait.  He lies on a grand scale — a strategy that I suspect he learned under the tutelage of his Chicago Machine handlers.

2.  In that mode, he was naturally lacking in detail.  His repeated call for the Congress to quickly pass his self-proclaimed perfect plan before seeing if there is even a pig in the poke is outrageously arrogant.

3.  He reinforced his reputation as a strident philosophic and political partisan.  The speech was all about politics to the exclusion of economic realities.  Notice that he wants the taxpayers to provide hundreds of billions of dollars to feed money to his base, mostly the unions and government workers.  His promised assist to the millions of small businesses is a sop and any advantage will be wiped out by the negative impact of the increased debt and continuation of draconian regulations.  He is using the federal treasure and our children’s money in the hope of gaining permanent empowerment for his party and his radical left philosophy.  His unabated scheme is to make Washington and the White House more powerful at the expense of the people.

4.  He set up the same old trick that got us into this mess.   He wants to spend up to $500 billion more borrowed dollars with the claim that it is all “paid for.”  That is not just a lie, it is a dangerous and damnable lie.  According to Obama, the $500 billion will come from cuts in the envisioned increases in federal spending over the next ten years.  Under his plan, the federal budget will continue to grow, the deficit will surge to a new unfathomable level and our children and grandchildren will pay the price when the federal budget bubble bursts.  Even if he was well-intentioned, there is no way that he can guarantee that future congresses will follow through on even the cuts in proposed new spending.

5.  He played the shop worn “bleeding heart” card.  He wants to help the elderly, and children and keep teachers in the classrooms.  He carried forward the progressives’ favorite tactics — social division, class warfare and fear-mongering.  It is easy to talk about all the good things we could do with another trillion dollars or two.  But it does not take a degree in economics (and I have one, by the way) to understand that even our best intentions and most charitable instincts have to be carried out within the limits of our resources. 

So … if Obama knows all this, and I am sure he does, why does he pursue such destructive policies.  It is obvious.  His goals and objectives are purely political and partisan.  He and his ilk want to use the financial crises and public fear to gain more power for their idea of a ruling elite.  Yet!  That’s it, folks.  Remember, it was his senior advisor, Rahm Emmanuel, who opined that “no good crisis should go to waste.”

If you want to understand the Obama game, look at it this way.  let’s say I earned only enough money to pay 52 percent of my bills, so  I borrowed 48 percent of the money from the bank– and this has been going on for years until my interest payment to the bank each month is more than all my other bills.  Even though I am not sure of my income in the next ten years, I go to the bank and ask for another huge loan on top of all that I already owe — and I promise to repay them out of the additional money I hope to make in future years.  I suspect the banker would think I was stark raving mad — and I would be.  But this is exactly the Obama jobs scam.  He expects the American public to be suckers at least one more time.

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I THINK … there is no economic recovery with Obama-nomics.

It appears that the “recovery” recently proffered by President Obama and his Democrat cohorts is now falling into relapse — at least that is the latest report from the economic wunderkind. We should not be surprised.

First: There has been no recovery. Oh sure, the stock market had some gains, foreclosures abated a bit and the rate of new joblessness started to level off. Don’t those things suggest recovery? Nope!

First of all, the stock market tends to respond to corporate profitability. Profits go up. Stocks go up. The reason, however, is not good. Corporate America’s bottom line starting looking better because of cost cutting, not increased sales – and cost cutting was largely in the workforce. That is why the stock market rose and unemployment did not go down.

Second: The Obama stimulus package was largely a waste of money. It was more like a pain killer that makes the pain lessen until it wears off. Now that the stimulus money passed through the financial system, the same old economic headache has returned. This is what happens when we treat only the symptoms and ignore the disease.

Finally: Obama did very little to fix the real problems. His attempts to have the government produce growth by financing work projects is a loser. Never worked, and never will. Remember, every time Obama says the federal money will create spending, and therefore jobs, he does not want you to understand that he took away the money, through taxes, from people who would have spent it, themselves.

His age-old scheme simply redistributes wealth from those who oppose him to those who support him. Obama is using the economic downturn as cover to impost his big government agenda on the United States. He is operating more like a looter who uses a disaster as a cover for his actions. It may be good Machiavellian politics, but certainly not good economics.

You might counter by noting that a lot of the money being spent by Obama is not from taxes, but from borrowing or simply printing more money. Borrowing only insures that we will have a much larger financial crisis in the future. He is literally stealing out children’s and grandchildren’s … and by this time maybe eve our great grandchildren’s … money. This means a lower standard of living for future generations. This is not only bad economics, but immoral.

Printing money is another short term solution that will bring hyper inflation to a nation that will be, by then, reeling on the brink of economic chaos. They call it “stagflation.” Keep in mind that inflation can feel good because wages go up. This is not economic growth, as Obama and the Keynesians would have you believe. When you go to spend your wages at the store, you will find that your “buying power” will be no better, or even worse, as prices soar.

Government spending is often compared to a narcotic, since there is a certain short term good feeling followed by an inevitable crash – and people and institution do get “hooked” on government money.

Brace yourself for a rocky economic ride for the foreseeable future. For real relief, we should be looking at 2014 – two years after we toss out Obama and the Democrat leadership. If we do not, the long term outlook is grim.