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Just like Ben Bernanke, the Europeans have also chosen to delay their date with the destiny of fiscal insolvency–insolvency engendered by the very same socialist policies that have brought America to its economic knees. Why? Because if the stock market truly reflected the state of the nation’s economy, President Obama’s re-election chances would be virtually nil.
Unfortunately, reality is irrelevant. “We expect the Fed to extend its ‘low-rates’ guidance through mid-2015, and to launch a third round of quantitative easing worth $500-$600 billion,” said Nigel Gault, chief U.S. economist at IHS Global Insight in Lexington, Massachusetts. “We don’t think these measures will be very effective in boosting growth, but for the Fed it’s a question of trying to do what it can.”
At least the Fed is trying. On Friday, the White House announced it will miss the legal deadline for submitting a report to Congress regarding the $109 billion in automatic spending cuts mandated by the Budget Control Act, scheduled to take effect in 2013. “Americans of all stripes are required to play by the rules and follow the laws of the land. Unfortunately, by disregarding the sequestration reporting deadline, the Obama administration seems to think it is above the law,” said Sen. John Thune (R-SD). “The American people deserve to know the president’s plan for implementing these cuts, some of which our military leaders have said will compromise our nation’s ability to protect itself,” he added.
House Speaker John Boehner (R-OH) illuminated the White House’s rationale, noting that the “president put his own election campaign ahead of the interests of the country,” by failing to release the details of the automatic cuts, that were engendered by the failure of the 2011 Congressional Super Committee to reach a compromise on deficit reduction. “(The President) has a responsibility and legal obligation to tell the American people how he plans to implement, or replace, these devastating cuts,” Boehner contended.
Economist Larry Kudlow sums up the president’s economic philosophy. “Taxing rich people in order to spend more on food stamps, welfare, disability insurance, unemployment insurance, and other forms of government dependency does not add up to anything other than larger budget deficits at slower economic-growth rates. Obama is paying people not to work. But it’s a losing economic strategy.”
Republican presidential candidate Mitt Romney echoed that assessment. “There’s almost nothing the president’s done in the last three and a half, four years that gives the American people confidence he knows what he’s doing when it comes to jobs and the economy,” Romney told reporters in Sergeant Bluff, Iowa.
The president’s counter? “If Republicans are serious about being concerned about joblessness, we could create a million new jobs right now if Congress would pass the job plans I sent them a year ago,” he said at a campaign rally in Portsmouth, New Hampshire. That would be the same Congress in which the Democrat-controlled Senate has refused to pass any budget for more than three years. The reason for the subterfuge is simple: if an actual budget were passed, Americans would have the clearest evidence that a government under Democrat-majority control–as it has been for the past six years–currently borrowing forty cents of every dollar it spends, and running up record-breaking trillion-dollar deficits for the third year running, is utterly incompetent.
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