Economics Professor Richard Judd said on my radio program this week to be prepared for Bernanke to implement QE III this year. Printing money will devalue a dollar already down 30% since 2001. Printing money when there’s no demand for it ultimately leads to inflation and higher interest rates.
Barack Obama said in his speech at Osawatomie that: “Limited government and free market economies don’t work, and never have.” That is straight from Hugo Chavez’s playbook. Obama said he wants to ensure economic fairness. Barack Obama believes he can dictate equal outcomes for a nation with over three hundred twenty million citizens. How? Government intervention into the private sector through central planning and wealth redistribution.
Perhaps Obama missed the ongoing European crisis resulting from these same policies? No he sees it, but this is Obama’s promised Fundamental Transformation of America. Abandon the Constitutional framework of limited government, and a free market economy for Utopian equal outcomes. This is not American. A limited government protecting equal opportunity for the individual to pursue their own happiness within a free market economy is American, and the proven path to prosperity.
Congress just raised the debt ceiling to $16.4 trillion. The government’s new ceiling is forecast to last until just after the election, when another increase will be needed. Those on the left say we can afford it because we are the richest nation on earth. So was Rome, and Great Britain at one time.
When investors see risk, they’ll demand higher interest rates on loans to a spend happy America. That will be game over. Interest rates will go up. Some economists are predicting double digit inflation rates as early as 2013 to 2015, followed by double digit interest rates.
There is plenty of blame to go around. Presidents and congresses of both parties are guilty of overspending. Affixing blame is not a solution, it is a history lesson. Harry Truman said there’s no such thing as the future, only history that hasn’t happened yet. Look to Europe today to see America’s tomorrow if we stay on this path.
Obama will have added $5 trillion to our debt (+41%) in his first term when he promised during his campaign to cut deficits in half. The left says he didn’t know how bad it was and had to spend the money to keep America from going into a depression. Rubbish. Obama spending is a textbook example proving government spending doesn’t create recovery or jobs.
(An important interview) Saving the Net from the surveillance state (And Crony Media): Glenn Greenwald speaks up (Q&A) | Nick Sorrentino