The Obama Recession - Or Worse
People who invest their own money know… This administration has no idea how a free market works. Accordingly, the Dow has plunged since inauguaration. Now that the Dow may appear to have ‘bottomed out” the administration is trying to figure out how to keep a good crisis going.
Not wanting to waste a good crisis that it feels it can blame on the previous administration, the President wasted no time in calling for more government intervention in any number of industries. With government intervention comes control. Just look at the major US Banks. And AIG? Congress just gave unbelievable incentive to get what is left of that company out of the government’s pockets.
With government control comes inefficiencies, payoffs to special interestst (contributors, unions, etc.) and a general decline in the ability of an organization to react to changes in the market. In short, the Obama plan is working perfectly. By dragging down the market and intervening in private enterprise, Obama and the Democrats aspire to extending their control over the economy. And after all, this is the ultimate goal. If one had owned a 401(k) prior to inauguration for the purpose of sending children to college, that same investor is now compelled to look to the benevolent giver-of-gifts, Obama himself, to accomplish this. And retirement? Same result. Look to Him to provide.
People who invest their own money understand that the market reacts to the stimuli of each day to determine how likley it is that an investment today will be worth more in the future. The “Stimulus Plan,” and the “Obama Budget Plan” are simply disasters! And those that invest their own money understand it. They have withdrawn from the market entirely, taking their job-creating capital with them. They won’t be back any time soon. The Chinese and others that Obama expects to buy our debt for the staggering number of silly programs will figure it out, too. Obama’s only avenue then will be to expand the money supply (which he has already started). Expanding the money supply - or printing the money that you need - will undeniably lead to skyrocketing inflation. And that will be the end of the middle class as we know it.
Not since the authors of the Great Society has such an arrogant crowd been in a position to ruin the American Dream. It took from 1965 until Regan to start to sort out that mess. Conservatives had better stand up and now, to block every possible expenditure and program that comes down the pike from the White House. Curing inflation will be just as painful.
Early this week, the core inflation rate for last month jumped to.04%, indicating that we won’t have to wait long until the Obama tax on the middle class hits full stride.