After three and a half years at the helm of our great nation, our novice president is still blaming Bush for the anemic recovery. He refuses to examine his own ideology and the many anti-business, anti-capital, anti-market, anti-jobs decisions he has made. There is a short story which explains Obama’s anemic recovery. This is that story.
The Loaded Gun
No doubt Obama took office at a time when the housing market had overloaded on home mortgages in which millions of folks had little or no equity, and little confirmation that they had an ability to make mortgage payments in the event of a downturn. Congressional hearings with Barney Frank and Chris Dodd assured the world that Fannie Mae and Freddie Mac, who guaranteed these loans, were in no trouble. An unexpected spike in the cost of gasoline was the trigger event that caused the many new homeowners to make a critical choice: Am I going to pay for groceries and gasoline to get to work, or am I going to pay the mortgage on a house in which I have no equity, and belongs primarily to the banks.
The choice was clear. Of necessity the rational folks on the margin chose to pay for gasoline and miss a mortgage payment, or two, or more. The loaded gun was the mortgage fiasco, which had been accumulating for many years primarily during the Bush administration. A few whistle blowers appeared on the scene who called attention to the bubble that was inflating. Our government regulators, house oversight hearings, and democratic politicians were deaf and dumb to the warnings issued, and did nothing to reign in the inflating bubble. It was the gasoline prices, which most folks no longer remember, that popped the balloon and revealed the financial crisis in the housing market.
Like dominoes in a line, the first one fell over and the rest followed suit until all the folks with homes owned primarily by the banks were forced to pay for gasoline and groceries, rather than mortgages. With the loss of purchasing power resulting from high gasoline prices, the economy went into the tank, and is still sluggish today, some four+ years later.
The Democrats, who took power in 2007, refuse to acknowledge their hand in the housing bubble through encouraging home ownership of high-risk folks with limited financial reserve. With the near doubling of energy prices the consumer was forced to divert consumption from housing to more basic necessities, groceries and gasoline, not mortgages. The collapse of the housing market and leverage of debt put the banks, and their government sponsors, in the tank.
The economy remains sluggish today in large measure because of high energy prices to the man on the street. While Obama and his energy and environmental czars claim that production of energy has increased, the price remains almost double what it was when they came into power. Rapid growth of the economy will not occur until the drag of energy costs are reduced to a reasonable level, and a much smaller proportion of household costs is for energy. The statement that “energy costs will necessarily skyrocket” under Obama’s policies is holding true today, and under his continuing policies there is no relief in sight.
To blame the banks for the housing bubble and eventual crash ignores the insidious government duress to extend unlimited credit to all folks regardless of risk. This is blaming the dog for the fleas.
Words Versus Actions
Our novice president has surrounded himself with extremists of every variety, revealing his true character and background. As an extremist, with little care or concern for America and its patriotic people, he is ill equipped to lead our great nation through any difficulty. He is, unfortunately, perfectly content with the direction we have taken and the difficulty we are in as a nation. His insistence on doubling-down, rather than changing direction, reveals his continuing desire to rebuild America brick-by-brick.
Crowley describes Obama’s extremist views in her book What the (Bleep) Just Happened as follows:
|“He needs the economic situation to stay dire. He needs spending to continue to spiral upward. He needs the debt to reach unprecedented levels. He needs unemployment to stay high. He needs the classes pitted against each other. He needs a growing pauper class to keep the class conflict going. He needs a wealthy class constantly under assault. He needs government sector unions strong and growing. He needs union thugs on the march. He needs conflict between public and private sectors. He needs a southern border out of control. He needs a world thrown into disarray by retrenching American leadership…… Obama and his fellow redistributionists have inflamed all of these crises as pretexts to sink the tentacles of state power into every part of our lives….. Chaos and control… are the exact underpinnings of the Obama Presidency.”|
Obama, of course, says none of these things for public consumption. What he says, and what he does in broad daylight must be tied together to understand that his dream has little to do with American exceptionalism, but in rebuilding America in some fairy tale image. His image has nothing to do with America.
Is it any wonder the American economy is failing to respond to his leadership. Obama is the captain of America’s Titanic, and we are on a collision course with a rapid descent to the bottom of the ocean. As the former USSR dissolved through financial bankruptcy, so the USA is nearing the iceberg at full speed, unless the man on the street starts to engage his brain in the coming election.
Obama’s job-killing decisions are too numerous to mention. His class warfare is typical of Marxist rhetoric by the ruling 5% who claim to protect the masses from the evil rich, the evil corporations, and every form of wealth. Under the Democrats and Obama, America’s wealth has already been reduced by 40%. Has this reduction in wealth produced any jobs at all, or are we continuing down the same slippery slope blaming those who create wealth for the problem.
Russia failed because the government was in control of, and directed the means of production. They distributed equally what was needed to maintain the masses at a poverty level. There was no incentive to get ahead, because the only folks who got ahead were the government workers. The market, controlled by the government, was unable to provide even the basic necessities for the masses, and the masses spent blocks of time standing in line for limited supplies of everything. The shortage of necessities characterized the Russian man on the street because only those with government connections lived above the poverty level, yet all suffered the gross shortage of basics for the suffering masses.
Hello! Americans. Electing Obama proved we are not a racist nation. Electing him again will only prove that we are also stupid