Posted on 03/16/2011 7:38:44 PM PDT by Hojczyk
The combination of high oil and gasoline prices, rising food costs, higher health insurance premiums and the likelihood of future inflation has jarred consumer confidence, creating a major crisis for the Obama administration.
The collapse has been sudden and dramatic.
In December, the consumer confidence scale in the Rasmussen Poll stood at 81.7 percent. But in January, euphoria set in. Obama compromised on the George W. Bush tax cuts, the nation seemed to be coming together after the Giffords shooting and a Republican House sat poised to stop any new spending or social experimentation. On Jan. 11, the Rasmussen confidence index rose to 88.3.
Then reality dawned. Unemployment remained persistently high, economic growth was largely stagnant and partisan bickering resumed. The confidence level on Feb. 11 dropped to 84.5.
Then the bottom fell out. The daily Rasmussen polling reflected a drop day after day until, by March 11, the index had fallen to 73.1, its lowest level since it registered a 69 in July of 2009, in the depths of the recession.
The false dawn of January has faded and the hard, cold reality of a likely second recession is setting in. But this recession is accompanied by the likelihood of inflation, a stagflation syndrome that will probably grip America for years. And which will likely take a manmade recession, on the order of 1979-82, to counter it.
Will Obama get reelected? No way! In the teeth of the economic catastrophe that is shaping up, his chances are doomed.
The tsunami in Japan, perhaps the greatest tragedy since 9/11, will further impede any prospect for economic growth. There will be a demand for spending to repair the devastation of the quake. But Japan is tied with China as the world's second largest economy, generating 12 percent of the global GDP. With Japan neither producing nor buying for the foreseeable future, the drag on the global economy will be profound.
Worse, the Fed and the administration are out of tools to help. Interest rates are already at zero. Fiscal stimulus -- the deficit -- already consumes 40 percent of our total government outlays. The Fed is printing money at a ferocious rate under its qualitative easing (QE-2) program. What is left to do?
Only dramatic cuts in the federal deficit, a rollback of regulations that cripple small and community banks, a cancellation of future tax increase plans, a big reduction in federal spending, repeal of ObamaCare, freeing manufacturing from the prospect of carbon taxation and unleashing our domestic energy potential can solve our problems. But Obama is not about to undo his legacy of disaster for the American people.
And then there is the longer-term oil and gasoline crisis. Instability in the Middle East is going to mount, not recede. The chances of disruption in Saudi oil supplies and the possibility of an overthrow of the regime (triggered by the best efforts of Iran) will continue to force prices upward. The drag on the economy and the rising consumer discontent in the United States spell further problems for the Obama presidency.
As the Rev. Jeremiah Wright said -- outrageously and wrongly -- about 9/11, "the chickens are coming home to roost." The policies of this administration -- the disastrous overspending, the irresponsible borrowing, the social experimentation -- all are magnifying and amplifying the impact of the recession. Relief is not going to come anytime soon.
Instead, the true legacy of the Obama years is likely to be stagflation and an entire decade wiped out by his policies, budget and programs. Long after he is gone in 2013, we will still be repairing the damage of his terrible decisions.
qualitative easing?
You do realize that a significant percentage of Mr. Morris's income is made by consulting for companies that want to know the political outloook. Do you really think that they would be drawn to a man with a terrible batting average?
Jim, I don’t know what’s happening to this community. If this thread is any indication, somewhere around 50% of Freepers have already conceded the 2012 election to Obama.
I have never seen so many demoralized (and demoralizing) comments in one place. I thought you said that FR didn’t feel any obligation to provide a platform for ‘doom and gloomers’?
All this talk of Obama being impossible to beat, is killing the fighting spirit of the rest of the troops here. I’m just one lone Freeper. I can’t fight this growing call to surrender by myself. Be nice to hear a word of encouragement from you, boss.
You said that Obama has a 60% chance of being re-elected, without posting ANY supporting data to back it up, and you want to scold me for not having the ability to divine the facts and figures underlying your ridiculous assertion?
That's rich! And asinine. Post some facts and figures, if you want to be taken for anything but a sniveling surrender monkey.
Maybe you understand, “he has de stash”. There is that on your level.
What the hell is that supposed to mean? Don't hide behind your keyboard. Step up and say what you mean to my face.
At this point I dont know where all this is going. The national debt is skyrocketing and RINO Republicans appear lame.
Bachmann and others want to take a stand and make a point, but I am not convinced they have a real plan to beat Democrats at this serious ‘game’ and make them cave. To me it is the end result that matters, like Scott Walker beating Dems in WI.
Just looked in email and came here. Your scrolling text looks good devolve. You’ve been a busy bee.
Same here. I was going to vote against Obama until Sarah gave me someone to vote FOR.
Obama’s going down.
Yes, I think he talks a good game and pretty much plays for whichever team will give him attention. Fact is he’s more wrong than right and only a fool would believe that line.
Now, I think it’s unlikely Obama will win but most of that depends on the economy. President Mulligan isn’t do so hot domestically and his Foriegn policy is worse but the republicans will be the reason he wins or looses. Right now, the national repubs aren’t doing so hot. They’re still playing the “get-a-long” game which the dems win every time.
So, Dick *may* be right but it’s far from certianty.
It’s hard to believe the Democrats will even nominate him.
“I think after the Wisconsin event, the left will never trust the voters again. They will throw open the gates of vote fraud like never before.”
Hadn’t thought of that angle. But not all states are so heavily unionized, particularly wrt gov’t workers. Still, a good point.
There a certain bit of glee to this piece that is usettling. While I expect nothing less than Obama to be hammered over the head with the real effects of his policies, there is nothing to be happy about when there are folks out here who are really suffering financially for which there appears to be little hope in the short-run. Perhaps those who are on the margins will end up tossed in the drink in the next year or so. Even if it is true, I certainly am not swinging from the rafters.
I believe that too, Jim, but it won't happen if half our army stands down before the bugle even sounds.
The doom and gloom being spread around this website is pernicious - insidious, and infectious. It's a stench that is getting into ever pore.
How did that Hillary vs Condi thing work out for you, Dickie? Why would anyone buy this guys BS and books?
If the Republican establishment continues on the attack against Gov. Palin (arguably, the most popular potential candidate) and the Tea Party, instead promoting another RINO, the Republican Party (establishment) will be committing suicide. THEY will be reduced to a Third Party and the Tea Party will become a Major Party.
It's really up to the Republican Establishment. Time will tell if their arrogance leads to their demise.
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