The current economic crisis is the result of government central bank manipulations of the money supply.
The way to end the crisis is to prevent the Federal Reserve from any further money manipulations.
This is not happening.
The money supply is growing at double digit rates.
This will result in "turning the economy around", and ultimately lead to major near hyper-inflation.
None of the crisis has anything to do with the necessity to "make strategic investments as a down payment on our long-term economic future”. Yet, President-elect Obama is using the crisis as justification to re-structure the economy in an absurd manner that shows his lack of basic economic understanding, but yet powerful political skills.
His radio address today was nothing but very powerful fear mongering as justification for a growing role for government in the economy.
Obama said that Democrats and Republicans need to act with urgency to address the “great and growing” economic crisis, warning of double-digit unemployment if swift action isn’t taken.
“These are America’s problems, and we must come together as Americans to meet them with the urgency this moment demands,” he said. “If we don’t act swiftly and boldly, we could see a much deeper economic downturn that could lead to double-digit unemployment.”
“We must make strategic investments that will serve as a down payment on our long-term economic future,” he said.
Further, as part of Obama's "rescue" package, international trade may be thrown out the window.
Obama’s advisers are looking at including a “buy American” provision in the economic-stimulus legislation, reports Bloomberg.
“We are reviewing the buy American proposal and we are committed to a plan that will save or create 3 million jobs, including jobs in manufacturing,” said Jen Psaki, a spokeswoman for Obama’s transition team.
What's ahead for the economy in 2009? Increased government control of the economy and inflation. Only the nimble and the politically connected will see increased standards of living. For the rest, the good times will be gone. What really needs to be feared are the government interventions in the economy, they will hurt, cause pain and slow the economy.
BTW - great blog - glad I found it.
ReplyDeleteI find it extremely difficult to understand why so very few people see the parallels yet to the last Great Depression - right down to the mimicry in the charts thus far. I guess I should be grateful for the free money LOL
Obama, in spite of his rep thus far, is not necessarily a particularly bright person - he was not in the top 4 percent on his high school SAT's for example - a de facto IQ test - and IMO he is going to prove to be the Hoover of the coming Great Depression, much like Bush is a pretty good ringer for the preceding corrupt Coolidge administration.
If Obama had even a modicum of smarts - he would know that better than 90 percent of new jobs in the USA are created by small business - and that reducing the immense burden they now face from govt red tape and taxes, would do far more than wildly throwing a TRILLION dollars to various large construction/engineering outfits to build more roads, schools and buildings - (didn't the crisis in housing & commercial RE make it clear we have too much building going on already ?).
And to top it all off, Obama adds his own special version of the 1930 Smoot-Hawley Tariff Act when he slips 'Buy American' in there.
And finally - there have been many here on the web and in real life who have been predicting this downturn was inevitable - the best of which is probably Strauss & Howe's Fourth Turning book - written in 1997! - who predicted both the timing and the nature of 911, Bush's re-election and the coming Great Depression 2.0
Don't feel too bad tho - as a regular US citizen we have about as much influence as an ant trying to stop a steamroller - best just to get out of the way and watch it flatten the Legions of the Stupid.
kochevnik