Posted on 10/12/2009 7:33:26 PM PDT by Talkradio03
It's hard to believe what this hack will say into a camera, you all don't know it, but the economy is great, and it's all a result of this brilliant President we have, swiping the Nation's credit card...(Video)
(Excerpt) Read more at hotairpundit.blogspot.com ...
He must be off his meds or has already enrolled in AuschwitzCare.
“You know, if you let me write $200 billion worth of hot checks every year, I could give you an illusion of prosperity, too.” -Lloyd Bentsen
...because the economy sucks?
The way this guy shills for the Democratzis, make Baghdad Bob look credible.
Yeah okay Tingles. I just went to the grocery store and saw a gallon of orange juice is now $7.00. Chris Matthews is a complete gutless and brainless motormouth who can go drive his car into a tree for all I care.
COMING: THE ECONOMIC “W”
By DICK MORRIS & EILEEN MCGANN
Published on DickMorris.com on September 29, 2009
What will be our economic trajectory? How will we do as we come out of the recession of 2008-2009?
There are those foolish optimists who predict a “V” shaped recovery - the swift crash will be followed by a buoyant surge. Others, more sober, believe in a “U” - the crash will gradually ease and slowly be followed by gradually increasing growth. Pessimists see an “L” - the crash will be followed by a long period of stagnation and no growth.
I believe a “W” is more likely. Foreign stimulus (e.g. China) will rekindle export markets for American manufacturing and government lending will start the housing industry. But consumer demand, which accounts for 70% of America’s growth, will continue to be stagnant in the face of high unemployment and lingering fears. The rebound will be short-lived and followed by a further downturn, the second part of the “W”.
But this second dip will be accentuated by inflation. We will face, not the stagflation of the 70s, but depressflation, negative growth and high inflation simultaneously. Unfortunately, the policies that would cure one condition will only worsen the other one. The low interest rates and economic stimulus necessary to kindle growth will exacerbate inflation while the high rates that would cure price increases would depress the economy further.
There is just too much debt out there and inflation is inevitable. The United States now borrows between 40 and 50 cents of each dollar it spends. The deficit has tripled since 2008. And, with all the world’s governments following the U.S. into debt and deficit, governments cannot find enough lenders and have to print their own money, a sure portent of disaster.
Voters are getting that the cycle of deficit, debt, and inflation is the inevitable consequence of statist economic policies.
Germany’s decisive turn away from the left in its national elections signals this sea change in political behavior. After a decade of drift to the left, voters have discovered their bearings and their senses just in time.
Not only did Germany’s Social Democratic Party, the world’s foremost socialist political organization, lose more than one third of its vote, but the free market Free Democratic Party grew by more than one third. Merkel, who had to govern in coalition with the Socialists, now can indulge her personal philosophy and form a conservative coalition to lead Germany out of the recession. Now, Merkel can, indeed, be the Thatcher of Germany.
The next shoe to drop will be in the United Kingdom where Gordon Brown and his discredited Labor Party trail the Conservatives by seventeen points. London must call for elections by June of 2010. Brown can delay the day of his party’s reckoning until then, but it must come.
These conservative triumphs will set the stage for the American Congressional elections of 2010. It seems certain that Republicans will gain enormously although whether or not this surge will be enough to capture either or both Houses of Congress remains to be seen.
Voters get that an orgy of debt can lead to an orgy of inflation. What better nation to teach the world this fact of economic life than one whose nascent democracy was strangled in its cradle by the hyper-inflation of the 20s opening the door to Hitler’s ascension to power?
PLEASE FORWARD THIS E-MAIL TO FRIENDS AND FAMILY
Obama WILL be getting credit for this economy.Love,
BELIEVE that.
Laz
Please...give Obama all the credit/blame for this economy.
Taking the National Debt Seriously
By LAWRENCE KADISH
If you think those town hall meetings over health care were fierce, wait until Americans come to understand the threat to our national financial survival posed by the interest on the government’s credit card.
When the government spends more than its revenue, there is a budget deficit. These deficits are paid for by Washington selling interest bearing Treasury securities. If the government were ever to default on its promise to pay periodic interest payments or to repay the debt at maturity, the United States economy would plunge into a level of chaos that would make the Lehman bankruptcy look like a nonevent.
It is the interest on the national debt that makes our future unstable. The exploding size of that burden suggests that, short of devaluing the dollar and taking a large bite out of the middle class through inflation and taxation, there is no way to ever pay down that bill.
As of Sept. 30, 2009, the national debt was almost $12 trillion and interest on that debt was $383 billion for the year, according to the Treasury Department’s Bureau of the Public Debt. The Congressional Budget Office on Oct. 7 estimated the 2009 budget deficit to be almost $1.4 trillion (about 10% of GDP). In August, the White House Office of Management and Budget (OMB) estimated total government revenues at about $2 trillion. The revenue estimate included $904 billion from individual income taxes. This means the cost of interest on the debt represented more than 40 cents of every dollar that came in from individual income taxes.
Except for a few years in the late 1990s, for decades Washington has spent more than it has taken in each year and borrowed the rest. Taxpayer dollars that could have paid off debt each year have instead been spent on interest to finance debt. Unfortunately, that’s a vicious cycle that will likely only get worse.
The OMB projects deficits of about $9 trillion over the next 10 years. If that occurs, the national debt will be almost $21 trillion by 2019. However, the actual amount could be much higher. The OMB also optimistically projects $13.5 trillion of revenue increases over the next decade, while minimizing the inevitable rise in interest rates that will come with an expanding national debt.
During Jimmy Carter’s years in the White House, Treasury yields reached 15%. The 2009 average interest rate on the debt was only 3.2%. With our mounting national debt and budget deficits, it is reasonable to assume that in the near future interest rates on new and refinanced debt could double or triple.
In stark but simple terms, unless Americans are made aware of this financial crisis and demand accountability, the very fabric of our society will be destroyed. Interest rates and interest costs will soar and government revenues will be devoured by interest on the national debt. Eventually, most of what we spend on Social Security, Medicare, education, national defense and much more may have to come from new borrowing, if such funding can be obtained. Left unchecked, this destructive deficit-debt cycle will leave the White House and Congress with either having to default on the national debt or instruct the Treasury to run the printing presses into a policy of hyperinflation.
It is against this background that Washington is now debating whether to create social programs it can’t afford.
Steve Forbes recently commented that when it comes to the national deficit, voters will put things in order. I certainly hope so. However, it’s imprudent to rely just on “hope.” Americans need to take notice, stand up, and remind our elected officials that in a democracy the people can change bad leaders.
—Mr. Kadish, a real estate investor, is a trustee of the Claremont and Hudson institutes.
What an idiot. Doesn’t hear his guy, Barry, on TV complaining about how he inherited this from GW?
He is the Complainer in Chief.
Whiner-in-chief
Whiner-in-chief
jobless recovery
Cramer is saying “Geithner, Bernanke, Obama, They got it right!”
I give Obama full credit for the 10% unemployment. Does that make Matthews feel better?
Matthews is such a congenital Democratic hack.
That was redundant! LOL
so was getting an award for excellence in mediocrity. Very Noble of him to accept it, for his lack of acheivement.
For all his “intent” and purpose, Now he can never top that or live up to it.
It is $3 here (in Florida).
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