Thursday, January 15, 2009

Barack Obama's Coming Economic Calamity

If a country gets drunk on bad financial practices, the solution is not to open up another bottle.



If Gov. Sarah Palin can get 51% of the women's vote in 2012, she will win by a significant margin. That shouldn't be impossible, given that she IS a woman, but nothing is easy when you go against the Obama Machine.

What about Obama's "$1 trillion stimulus package?" It's a much-larger dose of the 'medicine' that made us sick in the first-place -- over-borrowing and giant dollop of inflation by running the money-printing-presses 24X7. If a country gets drunk on bad financial practices, the way to solve it is not to open up another bottle.

How on God's earth is it the right thing to do to borrow another trillion from the Communist Chinese and basically send the bill to our grandchildren and great-grandchildren?

The economic historian Niall Ferguson (Oxford, Harvard, Stanford), who's an admirer of Sarah Palin, has written about the orgy of credit and financial promises in the U.S. and said that it has led to a $70 trillion "unfunded liability. That's a nice way of saying we have financial obligations that we as a nation have no way of paying."

The answer is NOT to borrow more. The answer is to start living, as individuals and a nation, within our means. Many people are responsible for the economic situation, including Barney Frank, Chris Dodd, and Barack Obama, all big-time recipients of "donations" from Fannie Mae and Freddie Mac, the major culprits in the housing crisis.

I've been saying that the Obama presidency will be a calamity. I'm not wishing that, just saying that it's inevitable.

I heard today that the price of crude oil today was $36 a barrel, down a "little" from the high a few months ago of $140. The marketplace, which can be brutal when necessary, is "handling" the problems for us. Wall Street speculators -- not "supply and demand" -- drove oil prices up to unsustainable levels, and now economic fundamentals have sent oil futures into free fall.

The thing about windfall profits is that they're ultimately followed by windfall losses, which seem to be going around a lot these days.

Investment analyst Howard Ruff is right about 50% of the time, but his recent remarks about where we're headed economically are right on target. He says.

"We are in for some rough times, and it's laughable that the same people who caused the problems are now being hailed as our saviors.

"First, we will continue to plunge into a major deflation period [falling real prices] which wi ll be characterized as a 'recession,' and later in the year as a 'depression.' Deflation and inflation are always monetary phenomena.

"Second, deflation will evolve into a run-away-hyper-inflationary depression because of what government will do to try to prevent deflation, which is synonymous with depression and has overtones of the 1930s.

"The government is creating money at a rate unprecedented in all of American History, with deflation and depression, driving their decisions, as politicians hate deflation. That is why they have been inflating the currency at varying rates for decades."

Look for Barack Obama to take the current mess that is the U.S. economy -- and make it worse. Look for him, as several NY Times reporters recently speculated, to be a one-term President. Look for Sarah Heath Palin, four years from next week, to become the 45th President of the U.S.

1 comment:

b.e. said...

Sarah Palin has started with a good strategy, by attacking Lieberman on drilling in ANWAR.

(see post on http://govpalin4prez.blogspot.com/)

Not-drilling is going to be a key issue both domestically and for national defense. Obama cannot do anything but lose on this since he is blocked by the environmentalists. When oil comes back to > $100/barrel and no new drilling has taken place, Sarah Palin will have a winning argument. This will be worth politically much more than all the 'stimulus' advice that Romney is posturing to give.