Obama: Too much debt could fuel double-dip recession

reuters ^ | Wed Nov 18, 2009 7:20am EST | Caren Bohan

[Jeff Head]

The absolute largest contributor the US debt in all of US history is Barack Hussein Obama himself. Indeed, he is...

THE MAN WHO DESPISES AMERICA

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AWAKEN, O AMERICA, YOUR LIBERTY IS CALLING (Inspriring Video)

[dearolddad]

That must mean we need to spend another $$bajillion.....to stop the coming double-dip recession...

Lighten up a little. Every economist in the free world will tell you that the best and fastest way to get out of debt is to spend more and more money. /S

[panthermom]

Obama is INSANE!!!

When is this nightmare going to end????

[arthurus]

Are we not several degrees past “too much debt” now?

[algernonpj]

But then the alternative offered (by the political cabal, the CFR) was John McCain.

There are a few not playing their game, e.g. Sarah Palin, Ron Paul, but they are and will be shutdown when getting traction.

IMHO, this is the worst part of what is happening.

McCain would be doing little different than Zero, just with a little more class.

[varina davis]

Ya think?! What a .....

[Wyatt's Torch]

It is just double talk to build support for more taxes, not less spending.

Which is, of course, the EXACT wrong answer. Tax increases will smother the embers of recovery and cause the double dip and prolong the contraction. It is amazing how he can be completely 180 degrees wrong about almost everything. that takes some skill...

[panthermom]

I don’t think it is sad, I think it is pathetic!

I feel like the Pod People have taken over. Nothing makes any sense whatsoever with this administration. The hits never stop coming, it is unbelievable.

I knew he would be bad, but not in my wildest dreams did I think he would be this bad.

[Sir Gawain]

his administration faces a delicate balance of trying to boost the economy and spur job creation while putting the economy on a path toward long-term deficit reduction.

It's obvious from this statement that he's clueless. As if boosting the economy means no deficit reduction. Moron.

[PreciousLiberty]

“AWAKEN, O AMERICA, YOUR LIBERTY IS CALLING (Inspriring Video)”

Excellent video - thanks!

[PreciousLiberty]

“It is amazing how he can be completely 180 degrees wrong about almost everything. that takes some skill...”

Don’t forget, he’s “brilliant”. ;-)

He also thinks FDR’s policies were the right way to handle Great Depression 1, which is a big part of why we’re now in Great Depression 2. This is the first government I’ve seen that truly deserves the term “idiocracy”.

[Gabrial]

“Just stunning. Like watching the town drunk, the new town drunk, preaching Temperance at Octoberfest.”

Or like Chris Dodd and Barney Frank saying we need new banking regulations after they melted the whole financial system down...

Or a bank robber, after stashing the money he just stole, saying banks are vulnerable to thieves...

[Wyatt's Torch]

He also thinks FDR’s policies were the right way to handle Great Depression 1, which is a big part of why we’re now in Great Depression 2.

Obamarx better thank God, Allah or who/whatever he prays to (himself?) that Bernanke is a student of the monetary mistakes made during the Great Depression. He's the only one that is keeping things afloat.

[BP2]

U-N-S-U-S-T-A-I-N-A-B-L-E

And this chart is FOUR year old!

[teeman8r]

“It’s so sad. Everyone there knows he’s a laughing stock.”

all but one knows... all but the one.

teeman8r

[dennisw]

All of a sudden this nincompoop is an economic sage

[PreciousLiberty]

“Bernanke is a student of the monetary mistakes made during the Great Depression. He’s the only one that is keeping things afloat.”

The only thing he’s doing differently is fueling inflation by printing money. Things will go about the same as in GD1, except in a couple more years a loaf of bread will be $10, while salaries stay about flat.

That’s how I see things playing out, at any rate.

[Wyatt's Torch]

That is the conventional wisdom...but it is incorrect. "Printing" money is not, in and of itself, inflationary. It is inflationary if the number of dollars available exceeds demand. However, in today's case, demand is at an all time high as seen in this velocity chart:

Now, when velocity returns to normal rates (i.e. above 1.6) and the money supply is still as big as it is, then there will be inflation as you state. Bernanke knows this and will attempt to drain the excess liquidity. Timing is absolutely critical and it will be difficult. But if the fed had not supplied the dollars demanded, we would be in a much worse DEflationary position than we are in today.

[za_claws]

good analogy
If you look at Drudge today this is one of two stories that make one scratch one’s head, the other is the big headline, “very close” to a decision Afghanistan decision and an announcement would come “in the next several weeks.”

... next several weeks?

[concerned about politics]

Things will go about the same as in GD1, except in a couple more years a loaf of bread will be $10, while salaries stay about flat.

It's the only way out of this now. Unemployment has depleted the tax revenues, and people are too broke for a tax increase. The government has spent the next few generations of money, so they're broke. China has cut off their welfare checks, because they already own us.
There is no money. Oboma spent the stimulus "slush fund" on left wing special interests that consume rather than produce.
The only way out is massive inflation. We're going to have to bail ourselves out. Oboma and the democrats have been a miserable, miserable failure.

I'm wondering what will happen when the democrats have no money to pay the bills for welfare base. What will their base do without the taxpayers money? Where will they live? How will they eat? Who will buy their clothes?
I see a massive crime wave in the future. There will be no free stuff for them unless they personally steal it.

I believe the housing crash was planned in advance to guarantee a democrat landslide in 2009. The increased gas prices put everyone over the edge, and Soroes is an oil speculator. What we're seeing now are the unintended consequences. The democrats thought they could "community organize" us and everything would go smoothly once the gas prices went back down. They assumed the Republicans would work twice as hard to earn, produce, and "save their country." It didn't happen quite the way they planned it.