Obama’s Economic Time-Bomb Set to Explode in 2011
If you listen to the lies spewing forth from the lips of the Obama Administration, the US economy is improving, millions of jobs are being “saved or created” and we’re well on our way to a strong recovery. But, the volatility of the numbers that Obama and economists in his pocket use to try and convince us that our financial situation is improving tell an entirely different story.
Ex-Clinton Democrat and co-Chair of Obama’s so-called debt commission Erskine Bowles recently warned that our nation’s debt is a fiscal cancer that threatens to devour the nation from within, if left unchecked. The warnings from the committee he tasked with solving our economic dysfunction couldn’t be any clearer.
In spite of this dire prediction, have Obama and Congressional Progressives begun to tighten the purse strings? To the contrary. Aided by Republicans like Scott Brown, they’re spending like never before and show no signs of slowing down. In fact, from June 29 to June 30, 2010 in one 24-hour period alone, the US national debt ballooned $166 billion dollars.
Consumer confidence is sinking as fast, Indications of a double-dip recession, Depression
The indications of a double-dip recession and perhaps even another depression are beginning to materialize. Consumer confidence is sinking as fast as Obama’s approval rating and at its lowest level in a year. People are just too scared to use their purchasing power on anything but the necessities. While productivity may be up, businesses are now doing more with less. There’s far too much uncertainty to hire new employees.Corporations are hoarding their cash like never before, withholding nearly a trillion dollars from the economy out of fear. Barring congressional action, the tax cuts enacted by President Bush will expire. Capital gains taxes and dividend taxes are set to increase significantly next year. This means that investment activities and realization of capital gains that would have occurred next year are occurring this year, artificially inflating this year’s already anemic economic numbers and making this alleged recovery appear far less ominous than it actually is. It also means that any revenue gains that are realized from these tax increases will be more than offset by the deleterious effect they will have on investment and growth.
To the left of even EU socialists, when it comes to decidin whether to keep careening towards insolvency or begin belt-tightening, Barack Obama seems stuck on stupid. Notwithstanding all of his rhetoric about the failures of the past, his economic vision is modeled after that of FDR. He’s deluded himself into believing that Keynesian economic multipliers and wealth redistribution ended the depression, rather than the mobilization of the full industrial and economic might that was necessary to defeat Nazi tyranny and Japanese imperialism. Digging your way out of a hole has never worked and it never will.
The deteriorating situation we find ourselves in is no accident. It isn’t due to incompetence or inexperience, rather it is the direct result of premeditation. Every single one of Obama’s policies has been cloaked as some critical reform, the practical effects of which can’t possibly be known until after implementation. But, the benefits, Barry tells us, will be realized immediately. Each and every one of these legislative disasters has proved to be a power grab costing far more treasure and freedom than advertised.
Obama is solely responsible for our mounting debt
I warned as far back as 2006 that Barack Obama would wreck the country. Fiscal disaster looms and if he does not immediately heed the warning from the commission he tasked with studying the problem, the result will be catastrophic. Obama is solely responsible for our mounting debt, not George Bush and certainly not a Republican minority that can’t stop the train wreck.
My firm belief remains that Barack Obama created the debt commission for political cover. He has has no intention of heeding that body’s warnings unless forced to do so in a lame-duck session and only then by raising taxes, not cutting spending. America really screwed up this time. Rather than electing a self-described moderate who would have his finger on the pulse of the nation, we chose a radical, socialist community organizer who has his Jackboot planted firmly on our neck.
There are only two ways to balance a budget: Increase revenues or cut spending. You don’t need a degree in economics to understand that concept, any third-grader with an allowance gets it. If Barack Obama can’t be made to understand that, then short of divine intervention, there is no stopping the result. If that is indeed to be the case, then it would be prudent for all Americans to ensure you have adequate resources to withstand the blast wave from the economic time-bomb that’s about to explode in our faces, once the true ramifications of Obama’s destructive acts become apparent.