Attached is an interesting article that reports that Pres. Obama thinks continued growth in debt may cause a double-dip recession. Bet you never expected to be in agreement with Obama's economic forecast. Maybe its time to re-think the forecast.
Actually Obama is concerned about debt causing a double-dip and he is correct in such a fear, since it would result in crowding out private sector borrowers and possibly cause an international panic out of the dollar and dollar denominated securities.
However, I fear that Obama's solution will be to raise taxes versus cutting government spending, which will put an even greater choke hold on the economy.
All that said, my forecast for a double-dip is based on the fact that the Fed hasn't printed any money since February, with a dead cat bounce (That is a panic desire to hold cash balances that is now subsiding) fueling the current stock market rally.
A double-dip based on the elements I foresee causing it will, of course, not prevent the President from using it as justification for raising taxes.
So we are on the same train, but we have different destinations, my stop is the Liberty stop, the President's is Coercion
"... my stop is the Liberty stop, the President's is Coercion"
ReplyDeleteGod bless you sir. That last statement brought a tear to my eye.
They are preparing for a second round of bailouts/quant-easing/money-printing. You need to build up reasons for doing it. So everybody in the admin talks about feat tactic double-dip.
ReplyDeleteLets bailout CRE, or else !!!! doulbe dip!
god save the dollar.
This would be funny if it weren't so tragic! The biggest borrower on the planet warns we can't keep increasing the debt. duh!!
ReplyDeleteBut than he throws in job creation a little deficit reduction and tax adjustments. This is his response to the danger of a double-dip recession?
Its interesting that he didn't identify the one fundamental that Robert has based his forecast on - the stop and go money creation by the FED. I agree with Anonymous.