Last week on Tuesday, Obama promised the economy will recover and certainly it may someday, but how long will it take - two years, three years, five years?
With 5.1 million jobs lost and many of the largest auto and financial companies teetering on bankruptcy, with many more in the retail and airline industry yet to face massive failure, the direction looks like the economy will continue shedding jobs for perhaps years to come.
In response to the economic crisis, President Obama has proposed the passing of his $3.6 trillion dollar budget to virtually spend the economy out of the downturn.
In the address last Tuesday night, Obama said, “We are beginning to see signs of progress”. Meanwhile at the G-20 meeting, one by one the world began turning against the economic ideas of Obama to print and spend enough money to revive the economy.
With both China and Russia calling for a new global currency backed by gold, so that any single nation cannot print money and rob its people of their wealth in order to continue to support an economic bubble.
President Obama went on to say, "The budget I submitted to Congress will build our economic recovery on a stronger foundation, so that we do not face another crisis like this 10 or 20 years from now," - yet it doesn’t look like we will even see the bottom for 10 years, unless the government gets the budget under control.
True economic recovering cannot start until the government stops increasing the money supply and borrowing and spending. True economic recovery cannot even begin until Obama and congress stop strangling the economic.
Obama’s budget is like a noose around the neck of the economic.
So far, with the liberal media at his back, Obama has been able to keep his opponents quiet, like Senate GOP leader Mitch McConnell who criticized the proposed budget as an over-spending, over-taxing disaster. A Congressional Budget Office analysis released Friday estimates Obama's budget would generate deficits totaling $9.3 trillion over the next decade.
The amount of borrowed money that Obama is proposing to spend is the largest wager against the future earnings of the next generation in America history. They are literally enslaving the next generation of young people to much higher taxes and inflation – yet somehow they have been able to get the support of a large portion of this group. The college aged young people of today need a new education in economics 101 so that they can understand what’s going on and why it’s important for them to get involved.
In the end, Obama’s promise will be seen as just as empty as the last guys.
Just as Ben Bernanke said, "substantial downturn appears to have waned", Ben Bernanke, Federal Reserve Chairman, money.cnn.com, June 10th, 2008
Or Henry Paulson who said, "The fallout in subprime mortgages ... is largely contained." , Treasury Secretary Henry Paulson, MarketWatch.com, March 13th, 2007
I still think that before we will see an economic recovery, we will need the economic leadership of our nation to do these three things.
- Find concrete answers as to why the economy has crashed
- Understand that we don’t have an infinite amount of money
- Educate and energize the public and government to cut back on spending
Because none of these three things have even begun, I think the stock market rally that we have seen in the last few weeks in not going to last. The economists that have the answers are not being listened to. Senator Ron Paul, who has been warning congress about this very economic collapse for several years, yet has not been asked to give advice to Obama. They are not interesting in the best and brightest economic ideas to turn around the economy.