Obama Playbook: Illusionary
Obama playbook: Lie about today to create a false illusion of the future.
Right now, we are treading water. At best, we have maybe 1% GDP growth, with the momentum downward and a stiff government headwind from regulations creating tons of drag on the economy:
- In May, Americans spent at the weakest pace in 20 months; its lowest number since Sept. 2009. And consumer confidence in June was the worst in 8 months
- Today, 25 million Americans are either unemployed or underemployed. Six million of those have been out of work for at least 6 months
- The average duration of unemployment in the U.S. is now close to 40 weeks.
- The unofficial Misery Index, which is calculated by combining unemployment and inflation, is now at a 28 year high
- The Misery Index calculated against Jimmy Carters 21.9%; Obama hits 25!
- Without a bailout, the Greek government will default. If Greece defaults, it would be a huge nightmare for world financial markets
- The Spanish economy is more than twice the size of the Greek, Irish and Portuguese economies combined. It is on the verge of teetering
- Wall Street banks are starting to lay off workers. That is a very bad sign for the economy
- According to the Bureau of Labor Statistics, the share of national income being taken home by American workers is at a post-war low and is rapidly declining.
- China has already begun dumping short-term U.S. debt
- The FDIC is backing up $7 trillion in deposits with an insurance fund that barely has anything in it. The U.S. banking system is in danger of collapse
- Between 2007 and 2010, U.S. GDP grew by only 4.26%, but the U.S. national debt soared by 61% during that same time period
- Interest rates are amazingly low. They can’t stay that way forever.
- About 6.2 million Americans, 45.1% of all unemployed workers in US, have been jobless for more than 6 months – Worse than Great Depression.
- 1.9 Million Fewer Americans Have Jobs Today Than When Obama Signed Stimulus Bill
And, according to a recent CNN poll, 48% of Americans believe that it is likely that another great Depression will begin within the next 12 months. There is definitely going to be another financial crisis around the corner, in part, because we have not fixed the structural problems that caused the financial crisis to start with.
Yet, some Economist claim they are optimistic for the second half of the year, saying growth should pick up to a 2% to 3.2% pace. They attribute two reasons: gas prices are falling. And U.S. factories are expected to begin producing more once Japan’s factories resume more normal operations.
One word. Bullshit. Or is that two?
The idea that growth will pick up because of falling gasoline prices is complete silliness. Gasoline prices are falling because growth is slowing. The US government ratified “free trade” treaties, created anti-business laws, regulations and “environmental laws” that caused and ‘economically required’ that US businesses move their US factories overseas.
Besides bad policy, the US (not unlike Canada) has also lost most of its manufacturing base because of the ransom demands of its various unions. Businesses lay off US employees in order to reduce their product prices to meet US consumer demands and increase their profits. Those US jobs are not going to be relocated back to the USA without “extremely high import tariffs” that are high enough to prevent imported products. It is not protectionism to demand a level playing field.
“Recovery” from a recession means that our GDP growth has been catching up with trend levels of GDP. GDP has not been catching up for over a year. Growth rates during recoveries are typically 5 to 6% or more. For about a year our growth rates have been well below this, and the WH and some economist’s estimates growth will be 2 to 2.5% for the second half of the year. Doubtful.
GDP is measured in US dollars. If the growth is only 2% while real inflation is say 4 or 5%, then GDP actual growth is -2 or -3%. The term ‘Recovery’ alludes to a status quo to which there is reversion. In other times, folks laid off would be rehired and there would be recovery. The economy would revert to the status quo.
This time around, that will not happen. Many of the companies will not rehire those laid off because the companies are gone. Growth of GDP, that is real growth above inflation, will have to rely on something new. We don’t know what that will be or where in the private sector it will come from, but it will have to be ‘new’ similar to the Internet rise.
How wrong can they be?
Since Team Obama and his left leaning ‘experts’ expect minimal inflation, improved employment, more consumer spending, increased housing sales and larger tax receipts, they logically expect improved GDP. They are wrong. There is “growth” in that nominal GDP rose. When government spending of air money is figured as part of GDP the numbers are fictional or possibly delusional or maybe only imaginary.
The “experts” may really expect growth of 2 to 3% or more but the “experts” are Keynesians to a man and Keynesians cannot differentiate between growth and inflation. They think inflation is growth until they start getting edgy when the inflation starts exceeding their target rates, which must happen.
Keynesians largely believe that wealth is static and cannot be created, only transferred, and they deliberately create inflation so that the economy can grow in visible imaginary terms and in real terms as inflation expands the total money in the world and the inflating economy’s share of that money, transferring the wealth of non-inflating economies to the inflating one.
Keynesians essentially believe that growth represents theft from other economies. That begets the theory that America only got rich by plundering the rest of the world. Keynesians/liberals hate America for that. But that is what they believe.
The financial models the WH are using, are designed to make things appear better than they really are. After all, why exclude energy and food from the CPI calculations? Trillions of U.S. capital is invested in China and elsewhere. Private Equity [PE] is where much of big business, pension funds, etc. is invested. Think of it as 50% of your IRA/401k being invested outside of America.
People won’t invest, won’t hire and won’t spend because you don’t know what this negligent President will do next. Businesses need stability, not uncertainty, in public policy. In a move straight out of an old Soviet propaganda playbook, the Obama Administration is hiding important, crisis-portending inflation information, unemployment numbers, so that they can continue to falsely claim that America is in economic recovery.
The facts about economic recovery could not be more contrary. America by any economic indicator, including our true inflation rate of 5-8% and rising, our true unemployment numbers of 16%, our spiraling national debt and government’s deficit spending, our financial system’s instability, and our average households’ fragile ability to provide the most basic staples for our families, such as the rapidly rising prices we are paying at the gas pump and the grocery store is clearly in grave fiscal danger. We are now entering the perilous territory of Jimmy Carter’s double digit ‘stagflation Misery Index’ of the 1970’s.
Inflation, debt and unemployment facts Obama is hiding:
- Since Obama took office; Unemployment up 25%
- Since Obama took office; Nations Debt up 35%
- Since Obama took office; Gas up 104%
- Cotton is up 140%
- Agricultural Raw Materials are up 81%
- Food Prices are up 49%
- Energy Prices are up 81%
Simple logic, and a trip to the grocery store and gas pump reveals the lie America is currently suffering from accelerating inflation that is moving toward hyper-inflation. Federal Reserve lackey Ben Bernanke, have manipulated the money supply with reckless expansionary monetary policy for far too long. Negotiations are underway TODAY in Congress among the Republicans and Democrats to RAISE the debt ceiling and drive our nation even deeper into debt, dependency and fiscal disarray – hyperinflation and higher unemployment are certain to follow.
But Obama and the thought police of his governing political faction don’t want you to know that. So they continue to release ridiculous numbers that seem to justify their claim that we actually have deflation, i.e. prices are dropping. The fact is, only the decimated housing market is experiencing a decrease in prices. But the Obama Administration is placing a heavy emphasis on the housing prices while leaving food and energy prices out of their inflation reporting and calculations. There is definitely going to be another financial crisis around the corner.
By the way:
- Democrats also have controlled spending/debt and taxation since the end of the GOP budget which expired in Sept ‘07
- National unemployment rate when Pelosi took power as Speaker of the House in January 2007: 4.6%
- Dem’s doubled the unemployment rate from where it was when they took over Congress in 2007
- Over 4,201,000 jobs were lost during Pelosi’s tenure as Speaker – averaging over 1 million per year.
- 48 of 50 states have lost jobs since the so-called stimulus bill passed.
- The Obama-Pelosi-Reid Regime tripled the national deficit in one year
- Misery Index: Percent of total workforce employed at all-time LOW – – Length of time out of work at all-time HIGH.
- The US will have to create 250,000 jobs a month for 66 months to return to December 2007 unemployment by end of 2016
You can’t tax yourself out of a deficit. You can’t borrow your way out of debt. If our government confiscated the cumulative wealth of all billionaires in the US, we might plug the budget deficit for about 1 year or so. Obama can’t be out of office soon enough.
There is no recovery. There never has been. We are in a sliding depression.
Obama playbook: Lie about today to create a false illusion of the future.