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Obama’s 10 Biggest Lies and Why the Recession Was Caused by Far-Left Policies

By: Steve Johnson

2/3/2010 - 85 Comments

Instead of accepting responsibility for his failed policies, President Obama has the audacity to continue pushing his agenda even without regard for sacrificing the value of our currency.  

Last week in the State of Union address to the nation and the world, I couldn’t believe what I heard.   President Obama repeatedly lied about many things and blamed the previous administration for everything.

It was like watching a child throw a temper tantrum when he didn’t get his way.

I‘m usually not this critical of the President, but this time I feel compelled to set the record straight.

Blaming Bush

After over a year since taking office, President Obama thought it was a good idea to try and blame Bush for the deepening recession while surrounded by his own failing policies.

The far-left Democratic policies are what destroyed the economy in the first place.  The far-left policies were put into place while Obama has in the Senate majority of the Bush years. 

By criticizing the Bush years, he is criticizing himself.   The deepening recession that we face today started with the housing market collapse which was primarily caused by the expansion of the government mortgage giants Freddie Mac and Fannie Mae – which Obama was the second largest receiver of campaign funds.

Obama was an integral part of the far-left Congress that created the over-sized, welfare oriented government expansion that has led the Federal Reserve to an inflationary policy of credit expansion, resulting in the boom-bust economic cycle.

He is responsible for this mess. 

Big Lies

Then President Obama claimed that the other side is not transparent and is not telling the truth, while he is surrounded by lies covered up by more lies.

I find it amusing to see Obama claim that Fox News is telling lies about this policies when he has perhaps said more lies in the State of the Union address then any politicians entire campaign in modern history.

Even more funny was when he tried to take advantage of his camera time as he stood before Congress last month and tried to say the opposition was lying about this healthcare reform, all the while the claims remain true to this day.

His Healthcare reform bill includes many things that he just recently admitted by saying that they were not part of his original intention, including funding controversial social programs like Abortion and competitive advantages for a government option that will only lead to complete government takeover of the healthcare industry.

Obama claims that everyone that opposes him is lying, but Obama has created quite a few whoppers of this own.  Here are a few;

10 Big Obama Lies

  1. Obama's claim that the Healthcare Reform Bill would cost $800 billion and not increase the national debt or tax the middle class, while the actual cost is projected to be $1-2 trillion and includes many new taxes on the middle class that would start immediately while the healthcare changes will not be realized for many years. 
  2. Obama claimed the economy would recover if only congress passed his $787 stimulus package, actual cost including Fed accounting tricks, multiple stimulus housing packages, bank bailouts and indefinite funding of Freddie Mac and Fannie Mae together put the bill at $4 trillion and growing.
  3. Obama's stimulus package was to create 2-3 million jobs, actual jobs created 300-600k
  4. Obama claimed that the government would not take over the automotive business, actual ownership of GM is over 60 percent and 80 percent of Freddie Mac and Fannie Mae.
  5. Obama claimed that he would bring the wars to an end and bring the troops home, actual size of troop deployment has increased by 20-30k
  6. Obama claimed unemployment would not go above 8 percent, actual unemployment over 10 percent and 17 percent if you were to use the old unemployment calculations
  7. Obama's claim to create an energy plan to reduce energy costs, resulted in his Cap-and-Trade bill that will increase the average family energy costs by $100-$1000
  8. Obama's claim to reduce the tax on the middle class, has resulted in the largest increase in taxes in a generation through the coming wave of inflation, energy, health care and major increased in Federal Tax that speaker Pelosi has already virtually guaranteed tremendous tax increases
  9. Obama's claim to improve education by increasing the Federal Education budget and increasing the student loan program, has result in a decrease in grade school education while increasing the average college tuition
  10. Obama's claim that Bush created the recession and that he has no choice but to borrow trillions of dollars for the next 8-10 years, when he voted for many of the policies in Congress that have expanded the government and created a welfare state.

Recession Was Caused By Far-Left Policies

It’s time to call it what it is and blame the real crooks that are responsible for the deepening recession and rising unemployment rate.

I read an interesting article a few days ago that explains how the far-left government policies led to predatory lending.

Here are a few quotes; Barney Frank, Predatory Lender

“Almost two-thirds of all bad mortgages in our financial system were bought by government agencies or required by government regulations.

When the crisis first arose, the left's explanation was that it was caused by corporate greed, primarily on Wall Street, and by deregulation of the financial system during the Bush administration. The implicit charge was that the financial system was flawed and required broader regulation to keep it out of trouble. As it became clear that there was no financial deregulation during the Bush administration and that the financial crisis was caused by the meltdown of almost 25 million subprime and other nonprime mortgages—almost half of all U.S. mortgages—the narrative changed. The new villains were the unregulated mortgage brokers who allegedly earned enormous fees through a new form of "predatory" lending—by putting unsuspecting home buyers into subprime mortgages when they could have afforded prime mortgages. This idea underlies the Obama administration's proposal for a Consumer Financial Protection Agency. The link to the financial crisis—recently emphasized by President Obama—is that these mortgages would not have been made if regulators had been watching those fly-by-night mortgage brokers.

There was always a problem with this theory. Mortgage brokers had to be able to sell their mortgages to someone.

The answer, of course, is that it was government policy for these poor quality loans to be made. Since the early 1990s, the government has been attempting to expand home ownership in full disregard of the prudent lending principles that had previously governed the U.S. mortgage market. Now the motives of the GSEs fall into place. Fannie and Freddie were subject to "affordable housing" regulations, issued by the Department of Housing and Urban Development (HUD), which required them to buy mortgages made to home buyers who were at or below the median income.

The left cannot have it both ways, blaming the private sector for subprime lending while absolving the government policies that created the demand for subprime loans. If the financial crisis was caused by subprime mortgages and predatory lending, the government's own policies made it happen."

It was Barney Frank, Christopher Dodd, John Kerry and Obama and other far-left policy makers and created the housing market bubble that caused the credit expansion that is now unwinding. 

They created these policies under that disguise of helping the poor by increasing the percent of home ownership, while ignoring the economics of prudent money management

They took advantage of the poor and created these failed policies to buy votes into public office.  They exploited the poor and leveraged the strength of the dollar around the world to gamble with our economy to further their political careers.

They are responsible for the mess we face and now they are desperately trying to shift the blame before they end up at the back of the unemployment line with everyone else that lost their jobs and homes from their unfortunate economic misjudgment.

The policies of socialism and inflation always fail in the end, resulting in a disaster.  If sound money economics was used by our governmental leaders, the economic collapse could have been prevented. But it's too late for that, all we can do now is recognize that these bad policies were the source of the problem and they need to be reversed.

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Meltdown: A Free-Market Look at Why the Stock Market Collapsed, the Economy Tanked, and Government Bailouts Will Make Things Worse

In discussions of today's economic meltdown and what to do about it, the Federal Reserve is a stealth helicopter: it never shows up on the radar. With the exception of a few esoteric specialists and those Ron Paul Revolutionaries who burst into chants of "Abolish the Fed!" Historian Thomas Woods notes in this important book, the Federal Reserve bears a large part of the blame for the mess we're in. In the first part of "Meltdown," Woods shows how both in theory and in practice, Fed policy fueled an artificial boom and is now leading us to a much larger meltdown.

The Case Against the Fed

This book, written by Murray Rothbard, an economist and historian of fairly well known repute, is a scathing attack on not only the Federal Reserve, but the interests that created this institution. Rothbard explains how the Federal Reserve is the true source in the destruction of wealth, which has led to the destruction of the middle class and continues to sift money into the hands of the wealthiest.

Day of Reckoning

In Day of Reckoning, Pat Buchanan reveals the true existential crisis of the nation and shows how President Bush's post-9/11 conversion to an ideology of 'democratism' led us to the precipice of strategic disaster abroad and savage division at home. Ideology, writes Buchanan, is a false god that seeks vainly to create a paradise on earth. While free enterprise is good, the worship of a 'free trade' that is destroying the dollar, de-industrializing America, and ending our economic independence, is cult madness.

Gold: The Once and Future Money

Governments and central bankers around the world today unanimously agree on the desirability of stable money, ever more so after some monetary disaster has reduced yet another economy to smoking ruins. Lewis shows how gold provides the stability needed to foster greater prosperity and productivity throughout the world. He offers an insightful look at money in all its forms, from the seventh century B.C. to the present day, explaining in straightforward layman’s terms the effects of inflation, deflation, and floating currencies along with their effect on prices, wages, taxes, and debt.