Apr 30 2009
While Obama floats high and the conservatives do their drama queen thing, the real political force in this country is moving along with the incredible and unstoppable momentum. The real political force is the economic train wreck which is still tearing its way through the very core of this country, as we can see in the latest quarterly GDP numbers:
The overall figure was stark. GDP, the value of all goods and services produced within the U.S., declined at a worse-than-expected annual rate of 6.1 percent after having fallen at a 6.3 percent rate in the final three months of last year. It marked the worst two-quarter performance for the GDP in a half century.
(click to enlarge) Liberals from DC to the halls of the dying media outlets are trying to claim there are glimmers of hope. They are deluding themselves of course. The economy is shrinking, which means revenues to the government are crashing, which means we areÂ alsoÂ piling up debt at record levels:
TheÂ Treasury DepartmentÂ said Monday it will need to borrow $361 billion in the current April-June quarter, a record amount for that period.
It’s the third straight quarter the government’s borrowing needs have set records for those periods.
Treasury also estimated it will need to borrow $515 billion in the July-September quarter, down slightly from the $530 billion borrowed during the year-ago period. The all-time high of $569 billion was set in the October-December period.
This country will continue to bleed red ink at never before seen rates, and the economy will not be responding. The stimulus bill, has I have noted over and over, is not getting the money into the economy to generate jobs. Here is a snapshot of the funds clogged up in the federal bureaucracy (left hand columns) with nothing getting out to the economy (right hand columns) for 4 Departments and 1 Agency:
This was as of April 14th. I will update it next week when the unemployment numbers come out, but I suspect the bleak state of the sluggish federal government’s liberal experiment on socialistic spending is heading for spectacular failure. The DC liberals actually do believe the fantasy that government spending can turn around an ailing economy, that racking up massive debt doesn’t drain the capitol out of the markets, and that raising taxes on businesses doesn’t cut jobs. I mean, they really did believe this fantasy!
And now they face the reality of a free market. They will see how impotent government pork compares to the American economic engine unleashed by reducing taxes and the burden of government. We will all see it.
So the photo ops, the prime time cheer leading speech to the nation, the fainting spells on the right are all irrelevant diversions. Dick Morris noted important polling data in an article yesterday which illustrates the train wreck coming towards the DC democrats:
But beneath this superficial support, Obama’s specific policies run afoul of the very deeply felt convictions of American voters. For example, the most recent Rasmussen Poll asked voters if they wanted an economic system of complete free enterprise or preferred more government involvement in managing the economy. By 77-19, they voted against a government role, up seven points from last month.
By 62-20, they said government spending, under Obama, was “out of control.”
When we complete this summer of economic wreckage, those numbers will not be stuck just to abject policies. They will be firmly attached to Obama, Pelosi, Reid and the rest of the Democrats who believed in those nonsensical liberal fairy tales about government’s role in free economies. They will, rightfully, be blamed for both not fixing the economy AND for uselessly wasting more taxpayer money in a year than any clowns in history have ever done.