The One’s Total Failure on the U.S. Economy
To date, The One has not stopped the U.S. economic decline.
By all recent measures, none of The One’s policies to-borrow-and-print-money-and tax-and-spend-it-on-the-government has worked.
While Japan is experiencing a slow march towards an uncertain fallout outcome, and it begins to call its debts due from the U.S. Treasury, the Federal Reserve announced the very corrosive policy decision to print $600 billion, presumably — in part — to pay the Japanese.
The mainstream financial media is now beginning to report on the possibility that Japan will begin to liquidate it’s $7 trillion in foreign assets and the “U.S. debt at risk if Japan repatriates.”
Meanwhile, in one day, the U.S. Treasury added $72 billion to our national debt — while the Treasury Secretary pleads with Congress to further raise the debt limit.
Gasoline prices continue their march upwards, and economists continue to state the obvious:
“Right now it acts as a very pernicious tax increase,” said Mark Zandi, the chief economist for Moody’s Analytics who has advised both parties on the economy. “There’s nothing worse for our economy than a significant increase to our energy prices.”
Meanwhile, food prices have spiked upwards the most in 36 years.
U.S. housing starts in February hit their second lowest since 1946 — they dropped 23% since January.
“Put simply, wholesale prices, often a trigger for consumer price rises, have taken off. In February, they rose at a 8% year-over-year rate.”
At what point will inflation increases push interest rates up and stocks down? Soon is a good answer.
The compounding of the dire debt crisis is the GOP’s refusal to defund ObamaCare, and Obama’s refusal to stop spending — which will continue to create a downward spiral in the economy, and upward pressure on interest rates, which will itself have a devastating impact on all those with adjustable rate mortgages.
Zuckerman, editor of the U.S. News and World Report writes:
“In short, the triple whammy of weak consumer sales, a weak housing market, and a deeply anemic job market is still very much with us. There are no quick fixes to the post-bubble credit collapse. The painful process of deleveraging is far from over. Current debt loads are not sustainable either by incomes or asset values, which are falling.”
The debt levels Zuckerman is talking about is that of the average American — not the U.S. government.
Strangely, the mainstream media is pushing the line that The One will win re-election.
In response that line of thinking, here’s Stephen Hayward’s take:
“I’m not so sure that Obama, who increasingly comes across as cold and aloof rather than prudent, will outshine the eventual GOP nominee on the personality front, and that includes supposedly charisma-challenged candidates such as Daniels or Pawlenty. I can see the charisma of competence outshining the rockstar persona of The One quite easily. In other words, Obama looks more gimpy than Gipper.”
Bottom line, this economy is being hurt further by The One’s policies of spend, borrow, increase taxes and print money. It will not get better unless The One changes his policies, or the GOP saves a trillion dollars by killing ObamaCare.
Since The One is not doing things that will improve the economy, it will not improve.
Obviously, he cannot win re-election with an economy that is in decline — see above if you have any questions about the decline.