Encourage Obama to stop drive to severe Wiedemer AfterShock Economy
Quick Sum: Obama (BO) economics, left unchecked may very well lead to severe Wiedemer Aftershock economy. We must encourage BO to reverse course.
What a Wiedemer Aftershock Economy is? Reference: https://economics501.wordpress.com/category/aftershock-economy/, especially my 2 book reviews AfterShock Economy and Aftershock Investor (Robert Wiedemer’s last 2 books).
Obama end goal: severe Aftershock Economy?
Unemotionally please evaluate BO economics. Then project where they are leading. If the premise is that BO understands economics well, then what is his end game? Can it be to destroy capitalism and then start fresh with a much stronger command and control economy? What can destroy capitalism? A sever Wiedemer type Aftershock economy can, where the $ collapses per exploding debt along with high inflation and unemployment (think 25% to 30%). Why? BO constantly bad mouths the private economy. He leaves an impression that successful private entrepreneurs and large corporate officials got there via greed and taking advantage of others. BO is without question and by far the most anti business and anti free market capitalist president of all time. BO is a great Communicator and has been well liked by most Americans. The mainstream news media is also a BO propaganda machine. For all these reasons it appears that BO would have a fair chance of persuading the citizenry to grant him more significant control over the economy. This would be after blaming greedy and corrupt capitalists for the AfterShock economy.
However, the above would be a blatant lie. Let’s examine BO policies. One can strongly argue that they are designed to bring on a severe Aftershock economy. Significant increase in public sector in response to Great Recession, where Fed spending of GDP now approaches 25% instead of longer term 19% to 20%. Reagan, on the other hand, successfully recovered from the Carter Great Recession by stimulating the private economy and by deregulating it. The private economy is sector that almost exclusively creates jobs that self sustain them and create additional ancillary jobs. Expanding the public sector for the most part increases debt. BO has $6 trillion to account for in 4 and half years. But then BO likely understands economics well. So he likely knows that public debt expansion crowds out private investment. And he likely thus wants this outcome. Private entrepreneur activity has been at a dismal level, nowhere near where it was during all other recession recoveries.
Not learning from Europe
It is obvious to anyone even with only a fair working knowledge of economics that the tax and spend, cradle to grave European welfare states are collapsing. The private sector in most European nations has been seriously decimated. Hence net wealth creation is nonexistent in Europe. In fact it is in decline. Europe has been in a 5 quarter recession. Spain unemployment is at 26%. Greece and Cyprus are technically and functionally bankrupt. France may be next as it is perhaps the most ‘Socialist’ of all Europe. Some European nations have started to scale back its spending or at least slow down its growth. However, when BO came to Europe for the 2012 G8, he encouraged Europe to increase spending. He was rebuked. BO continues his spending. It is one way to debase a currency – increase debt explosively. BO is thus following one central strategy of Vladimir Lenin. Per Lenin, debasing a currency is a great way to render a nation ripe for revolutionary change. BO has expanded the Dependency on Government class via 99 weeks unemployment compensation and has made it easier to get on Social Security disability after 99 weeks unemployment (14 million on Social Security disability now). BO has also made it easier to get food stamps (BO admin now even advertises in Mexico how prospective illegal immigrants can get Food stamps). Why? All this explodes our debt, leads to Aftershock economy. Then the wild card – enable BO to extend his power via greater command and control of the economy, perpetuate substandard public education, keeping the lower and many middle class with globally very uncompetitive skills.
Who is hurt the most by this? The most poor and many Blacks are. Most have no alternatives to public schools. BO and elite Leftists decry school vouchers. This denies the poor an option to improve their education; this is an outrage. This sole action – school vouchers – would do much more to offset poverty than the $15 trillion spent on social welfare programs in US since the 1960s. BTW poverty at 17% now up from 14% of BO admin start is where poverty was in the 1960s. But the Left likes it that way. The more dependent the population is on the Gov, the more power they have. No way would the Left be in power if our population became more independent, educated, successful, productive etc.. The higher the poverty rate the more explosive our debt growth, the greater odds of a severe AfterShock economy, and then BO end game – greater economic command and control. Catching on?
Ignoring natural gas and oil capacity newly found in the US is extremely irresponsible. Production on private land has never been more extensive. Our output now decreases our dependency on foreign energy imports to 30% from 60% several years ago. A major key to jump start our economy and lead it back to more normal 3 to 4% GDP (an maybe even 5%!) is to allow expansion of gas and oil drilling on public land and offshore. This production has been declining. Permits are often denied. The EPA economic command and control center sees to this. Result: the US is the only nation in the world not taking advantage of newly found energy resources. Many with drilling skills and able to move have done so to Canada. Result == less US jobs, thus less Treasury revenues, exploding debt, in line with BO end game for severe AfterShock economy.
Bo has failed to deliver authentic budgets. There were none for 2011 and 2012. BO 2011 and 2012 budgets were so ridiculous that not a single legislator voted on them in the Senate. This is from a man who likely understands economics quite well. Again – more evidence of BO end game. His 2013 budget is a repeat of the previous, a joke, a severe debt bomb, and a non starter. BO has no interest in passing a budget. Meanwhile the poor get deeper and deeper in a dependency on government and thus more distant from real prosperity.
Please refer to update on 2013 budget from Investors Business Daily below:
Again BO is pushing the root cause of the 2008-09 Great Recession – government housing policy – threatening to take banks to court unless they again start offering toxic loans to those with slim chance of ever paying back. This is incredible, unless it speeds up implementation of his end goal. Investors Business Daily has had a great series on BO’s War on banks. Link below (7th of a series) expands on banks and housing:
CONCLUSION – What to do?
- Explain to those not too familiar with the laws of economics (many) these points above.
- Blog to Leftist sites about these points; send letters to newspaper editors too.
- When you act on the two above points please try to include (or even make it a theme) arguments that BO economic policies are decimating the poor and middle class. Expand on the school voucher argument.
- Support true free market capitalist champions for Congress and state and municipal government; consider running yourself.
- Encourage our Congress representatives from both parties to block BO economic agenda (use arguments from above). Tweet them. I frequently tweet my Leftist Senator Robert Menedez.
- And something I may try soon – directly write to the President’s office explaining how his policies are damaging the poor and middle class; try to motivate him to change course and take pride in transforming America via more free market economic policies —- more about this soon.
April 15, 2013