Jun 06 2010
G20 Smacks Down Obamanomics
Something very unexpected happened this week, with no notice from the liberal media (surprise, surprise). The world’s top economies just smacked down the massive deficit spending being employed by Obama and the DC liberals in Congress, in no uncertain terms:
The communiqué of the meeting made it clear that the G20 no longer thought that expansionary fiscal policy was sustainable or effective in fostering an economic recovery because investors were no longer confident about some countries’ public finances. “The recent events highlight the importance of sustainable public finances and the need for our countries to put in place credible, growth-friendly measures, to deliver fiscal sustainability,†the communiqué stated.
Emphasis mine. In other words, cut spending and taxes. Stop saddling businesses with naive wish lists of socialist ‘share the wealth’ nonsense. The lone hold out to the international consensus? Team Obama:
But there were concerns around the G20 that the rush to reduce budget deficits, necessary though officials now thought it was, would undermine the recovery in the near term.
In a letter to the rest of the G20, Tim Geithner, US Treasury secretary, argued: “Concerns about growth as Europe makes needed policy adjustments threaten to undercut the momentum of the recoveryâ€.
What damn recovery? There is no recovery. The stimulus bill, tax increases, health care take over are all stalling and delaying any recovery. And this nation will pile up over $2.5 Â TRILLION in national debt in the first two years of Obamanomics! Â What does that tell you?
The May jobs report was a wake up call. You cannot pretend an economy is growing when 90% of the new jobs are temporary and exaggerated. Those jobs will be gone in September, and many of them will be gone before then.
When the other top 18 or so economies around the world declare your approach wrong headed and economically destructive, it is no surprise people conclude you are not competent:
What started out as a whiff of rookie incompetence has become a suffocating odor. It’s hard to find a single area where Obama’s policies are a convincing success.
Friday’s poor jobs report, showing only 41,000 private-sector jobs added in May, helped send the stock market into a tailspin
…
They ought to finally hear what employers have been telling them: Washington’s taxing, spending, borrowing and red tape are holding back job creation. Nearly 5 million Americans have been out of work for more than a year, a dismal record of long-term unemployment.
Business is screaming it out, the world’s top economies are screaming it out. And Team Obama keeps pretending they have a monopoly on economic wisdom!
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, when in reality they appear to have a monopoly on economic lunacy. 2012 can’t get here fast enough!
You are running with the assumption they want to fix and heal the economy.
You may want to reexamine that predicate.
As long as the left continues to believe that Bush caused this mess because he didn’t regulate enough and he left a hugh debt, it will never get solved on Obama’s watch.
Obama’s policies have a John Galt effect…….. the next thing you know Obama is going to lump all small businesses together and lambast them for not hiring.
Back in the early 80s, the Iranians released our diplomats from captivity the day Peanuts Carter left office. I predict the economy will stage a rebound the day Peanuts Obama leaves office – if the country lasts that long.
They are running out of money, they have no choice but to say no.
The “stimulus” is now EPIC FAIL
Krugman is almost apoplectic over this:
http://krugman.blogs.nytimes.com/2010/06/06/lost-decade-here-we-come/
Yet Krugman fails to note that his Keynesian stimulus has spent over 6% of GDP to get a temporary 3% growth. We are at the point were we get diminishing economic returns on new debt because we are already carrying too much debt.
I suspect, too, that Europe remembers the inflation of the Weimar Republic and what happened after that.
Merlin,
You’ve got that exactly right. The Left’s goal is to destroy the economy, not better it. It’s the only way they can make this country into the America they want which holds no resemblence to the one we know.
I think Milton Friedman pretty much buried John Keynes. Alan Greenspan then drove the stake through his heart. Anyone who still adheres to Keynesian economics has been asleep for the past 40 years.
Liberals continue to cling to Keynes because it parallels their public policy desires but living in a fantasy world doesn’t do anyone any good.
To put a finer point on it …
The recession of the late 1970’s and early 1980’s was due to the “Great Society” spending of the late 60’s and early 70’s. If Keynes was correct, all of that welfare spending should have produced economic prosperity. Instead it did the opposite.
Finally electing a President with a college degree in economics (Ronald Reagan), the US changed to an economic policy more in line with Friedman’s thinking and the longest period of economic prosperity in our history ensued.
Lessons were forgotten, though, not long after Reagan was out of office and Congressional tinkering with markets along with fantastic new entitlement programs has returned us to the situation of the late 1970’s.
This president in particular has been raiding the public treasury at a rate unseen in our history. He has completely cleaned us out in less than two years time. What I don’t think enough people understand is that the ramifications of this won’t be fully felt for another 5 to 10 years as the interest on all this debt burden explodes. Interest rates on federal debt are at historic lows. When interest rates triple or quadruple from today’s levels, people will only then fully appreciate the economic time bomb that is being set now.
Isn’t this the Cloward-Pivens plan? To run our country to the ground so that they can start from ground zero to build an utopian society?
I have been very nervous about that interest payment…I can already see that interest payment engulfing the entire GDP before. Not even a 100 percent tax rate for all Americans will solve these problems.
The overwhelming problem is too much debt, on all levels. Too much consumer debt, too much housing debt, too much government debt. Debt must be liquidated to have any hope of getting out of this, but Krugman is right, this will raise unemployment even more.
But in spite of that, the problem is that too much debt can NOT be fixed with more and more debt. We must go through the pain. If we *do* attempt to fix it with more debt, then cloward-pivins is active – fortunately it has one great flaw. Cloward and Pivins never counted on the Second Amendment still being enacted and revered – be sure and stock up while you still have time.
As Clint Eastwood said to Tuco “there’s two types of people – those with loaded guns, and those who dig. You dig.”
wws,
One of my co-workers’ brother is a doctor. He just came back from some doctor conference. There was one speaker from AMA and the reaction from the audience to this speaker was not positive, such as, “Why didn’t you represent us when you were working with the WH on ObamaCare?” The AMA speaker tried to tell the audience that he didn’t want to discuss ObamaCare but the audience wouldn’t have it.
He says that almost all doctors at the conference are very angry. And he did not renew his AMA membership for this year. And probably won’t next year.