Craig Steiner

It's weeks like these when the full destructive power of Obanamomics is plainly visible for all to behold.

On Thursday, the stock market lost a staggering 512 points (4.3%), its ninth-worst point drop in history, and over 1300 points in the last two weeks.   Gold dropped. The interest rate on 10-year bonds fell to 2.45%. And even as gold, the stock market, and oil lost ground, so did the dollar. Usually when the dollar loses value, commodities go up. When the stock market, gold, the dollar, oil, and interest rates all drop together, it's a good bet the market is panicking.

And with good reason:

  • The service industry grew at its slowest pace in 17 months in July. 
  • Factory orders dropped 0.8% in June. 
  • Consumer spending dropped in June, the biggest decline since September 2009.
  • The economy, as measured by GDP, is stalling. 
  • Job growth stalls while layoffs surge. 
  • Mass layoffs are once again in the news. 
  • Moody's put U.S. debt on a negative outlook. 
  • There are increasing chances that the economy will fall back into recession. (Did you even notice the first one ended?)
  • People are increasingly recognizing that Obama's expensive stimulus didn't work. 
  • Japan is intervening in the yen to weaken its currency. 
  • Switzerland intervened in the Swiss franc to weaken its currency. 
  • Europe intervened by printing money to buy Portuguese and Irish debt. 

The reality is that there hasn't been a real recovery. Everything over the last two years has been little more than artificial and unsustainable government intervention by way of trillions in deficit spending and trillions in newly printed money.

As I wrote back in June 2009--when the buzzwords were "green shoots" in the economy--Obama's economic policies threaten the economy.

"We're in the middle of an economic experiment. If anything good comes of it it will be the final realization that Keynesian theory doesn't work. Any theory or policy that defies free market forces is as sure to fail as a sand levee holding back the raging sea. It's simply inevitable. In the end the only economically sustainable policy is that of fiscal conservatism. But the current administration might have to crash our economy into the brick wall of reality before it accepts that that reality actually exists."

Craig Steiner

Craig Steiner is a writer and political activist from Denver, Colorado.

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