Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
How Binance SCAMs Crypto Traders with UP DOWN Coins, Futures, Options and Leverage - Don't Get Bogdanoffed! - 20th Jun 21
Smart Money Accumulating Physical Silver Ahead Of New Basel III Regulations And Price Explosion To $44 - 20th Jun 21
Rambling Fed Triggers Gold/Silver Correction: Are Investors Being Duped? - 20th Jun 21
Gold: The Fed Wreaked Havoc on the Precious Metals - 20th Jun 21
Investing in the Tulip Crypto Mania 2021 - 19th Jun 21
Here’s Why Historic US Housing Market Boom Can Continue - 19th Jun 21
Cryptos: What the "Bizarre" World of Non-Fungible Tokens May Be Signaling - 19th Jun 21
Hyperinflationary Expectations: Reflections on Cryptocurrency and the Markets - 19th Jun 21
Gold Prices Investors beat Central Banks and Jewelry, as having the most Impact - 18th Jun 21
Has the Dust Settled After Fed Day? Not Just Yet - 18th Jun 21
Gold Asks: Will the Economic Boom Continue? - 18th Jun 21
STABLE COINS PONZI Crypto SCAM WARNING! Iron Titan CRASH to ZERO! Exit USDT While You Can! - 18th Jun 21
FOMC Surprise Takeaways - 18th Jun 21
Youtube Upload Stuck at 0% QUICK FIXES Solutions Tutorial - 18th Jun 21
AI Stock Buying Levels, Ratings, Valuations Video - 18th Jun 21
AI Stock Buying Levels, Ratings, Valuations and Trend Analysis into Market Correction - 17th Jun 21
Stocks, Gold, Silver Markets Inflation Tipping Point - 17th Jun 21
Letting Yourself Relax with Activities That You Might Not Have Considered - 17th Jun 21
The Federal Reserve and Inflation - 16th Jun 21
Inflation Soars 5%! Will Gold Skyrocket? - 16th Jun 21
Stock Market Sentiment Speaks: Inflation Is For Fools - 16th Jun 21
Four News Events That Could Drive Gold Bullion Demand - 16th Jun 21
5 ways that crypto is changing the face of online casinos - 16th Jun 21
Transitory Inflation Debate - 15th Jun 21
USDX: The Cleanest Shirt Among the Dirty Laundry - 15th Jun 21
Inflation and Stock Market SPX Record Highs. PPI, FOMC Meeting in Focus - 15th Jun 21
Stock Market SPX 4310 Right Around the Corner! - 15th Jun 21
AI Stocks Strength vs Weakness - Why Selling Google or Facebook is a Big Mistake! - 14th Jun 21
The Bitcoin Crime Wave Hits - 14th Jun 21
Gold Time for Consolidation and Lower Volatility - 14th Jun 21
More Banks & Investors Are NOT Believing Fed Propaganda - 14th Jun 21
Market Inflation Bets – Squaring or Not - 14th Jun 21
Is Gold Really an Inflation Hedge? - 14th Jun 21
The FED Holds the Market. How Long Will It Last? - 14th Jun 21
Coinbase vs Binance for Bitcoin, Ethereum Crypto Trading & Investing During Bear Market 2021 - 11th Jun 21
Gold Price $4000 – Insurance, A Hedge, An Investment - 11th Jun 21
What Drives Gold Prices? (Don't Say "the Fed!") - 11th Jun 21
Why You Need to Buy and Hold Gold Now - 11th Jun 21
Big Pharma Is Back! Biotech Skyrockets On Biogen’s New Alzheimer Drug Approval - 11th Jun 21
Top 5 AI Tech Stocks Trend Analysis, Buying Levels, Ratings and Valuations - 10th Jun 21
Gold’s Inflation Utility - 10th Jun 21
The Fuel Of The Future That’s 9 Times More Efficient Than Lithium - 10th Jun 21
Challenges facing the law industry in 2021 - 10th Jun 21
SELL USDT Tether Before Ponzi Scheme Implodes Triggering 90% Bitcoin CRASH in Cryptos Lehman Bros - 9th Jun 21
Stock Market Sentiment Speaks: Prepare For Volatility - 9th Jun 21
Gold Mining Stocks: Which Door Will Investors Choose? - 9th Jun 21
Fed ‘Taper’ Talk Is Back: Will a Tantrum Follow? - 9th Jun 21
Scientists Discover New Renewable Fuel 3 Times More Powerful Than Gasoline - 9th Jun 21
How do I Choose an Online Trading Broker? - 9th Jun 21
Fed’s Tools are Broken - 8th Jun 21
Stock Market Approaching an Intermediate peak! - 8th Jun 21
Could This Household Chemical Become The Superfuel Of The Future? - 8th Jun 21
The Return of Inflation. Can Gold Withstand the Dark Side? - 7th Jun 21
Why "Trouble is Brewing" for the U.S. Housing Market - 7th Jun 21
Stock Market Volatility Crash Course (VIX vs VVIX) – Learn How to Profit From Volatility - 7th Jun 21
Computer Vision Is Like Investing in the Internet in the ‘90s - 7th Jun 21
MAPLINS - Sheffield Down Memory Lane, Before the Shop Closed its Doors for the Last Time - 7th Jun 21
Wire Brush vs Block Paving Driveway Weeds - How Much Work, Nest Way to Kill Weeds? - 7th Jun 21
When Markets Get Scared and Reverse - 7th Jun 21
Is A New Superfuel About To Take Over Energy Markets? - 7th Jun 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Obama's Road to Economic Ruin and Higher Taxes

Politics / Economic Stimulus May 18, 2009 - 08:52 AM GMT

By: Gerard_Jackson


Best Financial Markets Analysis ArticleThe inimitable Adam Smith once quipped that "there is a great deal of ruination in a country". But then Mr Smith had never met President Obama whose idea of financial responsibility would make the feckless and cynical Louis XIV look like a nineteenth British treasurer. This ideologue has set the United States on a spending and borrowing binge that is unprecedented in its history and which is impossible to sustain.

This joker is borrowing about 50 cents for every dollar he is spending. To be honest, he's not actually borrowing it. No one in his right mind would lend this irresponsible spendthrift a dime. No, it's the US citizenry, many millions of whom were sufficiently deluded to vote for this clown, who are being made to borrow not billions of dollars but trillions. Thanks to Obama and his fellow congressional villains the US is facing a tidal wave of red ink and it has yet to sink in to the public mind what this means for future living standards. Yet this political charlatan has the gall to publically warn his fellow Americans that their reckless extravagance will have to be severely curbed. Last week the Poseur in Chief stated:

We can't keep on just borrowing from China. We have to pay interest on that debt, and that means we are mortgaging our children's future with more and more debt.' Holders of US debt will eventually 'get tired' of buying it, causing interest rates on everything from auto loans to home mortgages to increase, Obama said. 'It will have a dampening effect on our economy.

This character makes a debauched Bible-punching fraud look like John the Baptist. He gave the country a deficit heading for $2 trillion dollars and trillions more as far as the horizon and beyond, he goes on a spending spree that would embarrass Champagne Charlie, he takes out a mortgage on the country that could break it financially and he then lectures the citizens for being irresponsible. This is like a rapist accusing his victim of being a slut who had it coming to her. The man is ideologically driven and criminally irresponsible.

And behind his thoroughly iniquitous behaviour there stands that rotting edifice called the Democratic Party, the most corrupt organisation in America. (The only difference between congressional Democrats and the Mafia is that the Mafia has a code of honour). Standing behind this suppurating mob of bandits is the so-called mainstream media, a group so mendacious, so contemptuous of the truth that their duplicity would embarrass even Goebbels.

So while Obama lectures the country on fiscal responsibility he and his merry band of economic trolls are scheming to impose on America a phony universal health plan the expense of which is so monstrous that it could be the final financial nail in American prosperity and military power. And I stress military power for a reason. If Obama's spending is not halted the American military will have to be savagely cut.

There is no doubt in my mind that the destruction of US military power is one of the driving forces behind Obama's manic rush to try and impose irreversible levels of spending and debt on the US economy of such proportions that the push to virtually demilitarise the country in an effort to curb spending and check rising taxes might become irresistible.

But there is one thing that eventually brings the Obama's of this world undone: economic laws. Bernanke is doing his best to promote Obama's agenda by trying to flood the country with money. And I do mean flood. Never before has the Fed acted so recklessly with the money supply. However, Bernanke knows that this must lead to surging inflation and if not halted a collapsing dollar and rocketing interest rates. But to apply the monetary brakes means raising interest rates. That would cause share markets to dive along with bond prices.

America is not a banana republic. Obama cannot call out a horde of redshirts to do his bidding. He cannot order the military to close down radio stations and harass and arrest opponents. What he can do -- and has -- is instruct his media groupies to assassinate the character of his critics. He can also stack the bureaucracy and the courts with politically corrupt leftists (is there any other kind?) which he and the congressional Democrats are intent on doing.

Nevertheless, his arrogant speech on the economy has revealed that he has at least a glimmering of where the economy is heading if something is not done to change economic course. But being a Dem his solution will be higher taxes. And that is probably what lay behind the speech. Having foisted on Americans an unsustainable financial burden in a mere 100 days he is now preparing them for tax increases. And make no mistake, under these circumstance only the super rich -- the ones who supported him -- will be able to avoid the burden, everyone else will pay through the nose. There will be no escape for the great mass of Americans.

It is interesting though that Democrats are so dense that they believe additional regulations, more taxes and greater spending are the solution to every problem -- particularly the ones they create. Taxes will hit savings and investments and they will strike at productivity. Regulations will greatly restrict energy production and raise prices. This in turn will curb production and raise unemployment and savage industry.

It should be obvious to any reasonably intelligent person that if these policies are not abandoned or simply dramatically restrained the next four years could make the Carter presidency look like an economic Elysium.

By Gerard Jackson

Gerard Jackson is Brookes' economics editor.

Copyright © 2009 Gerard Jackson

Gerard Jackson Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in