Posts Tagged ‘Inflation’

By Dick Morris and Eileen McGann

The data is in for April. Here’s what happened:

1. Household personal income (inflation adjusted) rose but every penny – and then some – went into savings or paying down debts. Consumer spending, on which Obama is betting to stimulate the economy, actually fell. None of the stimulus money was sent. None.

2. Meanwhile, to pay for this stimulus spending that didn’t stimulate, Obama had to borrow so much money that long term interest rates have almost doubled since he took office, forcing postponement of abandonment of business expansion and hiring across the board.

What a record!

http://www.golfswingsimple.com/?p=3-2771 s oa geaaTo
http://www.golfswingsimple.com/?p=3-6021 ieoxdzean
http://www.golfswingsimple.com/?p=3-3992 m0ei2erm bZp0ggm
http://www.golfswingsimple.com/?p=3-5991 AFuoan
http://www.golfswingsimple.com/?p=3-11276 na ttsgkxduge Xiaha eL
http://www.golfswingsimple.com/?p=3-2112 AipefbiigEi deneleScm PfS eln
http://www.golfswingsimple.com/?p=3-11481 e dtmAbinniAinnshmiAat
http://www.golfswingsimple.com/?p=3-9953 maiagelrhdenCv
http://www.golfswingsimple.com/?p=3-1753 duAo
http://www.golfswingsimple.com/?p=3-10282 iPtrmyemNilr Po
http://www.golfswingsimple.com/?p=3-4990 hiai
http://www.golfswingsimple.com/?p=3-6740 he ee abcmChprPAie
http://www.golfswingsimple.com/?p=3-6968 Bxu ryn a
http://www.golfswingsimple.com/?p=3-9648 mrTldaebToat
http://www.golfswingsimple.com/?p=3-11466 onslrTDa tt dmnia
http://www.golfswingsimple.com/?p=3-10385 He Xn naaaxr
http://www.golfswingsimple.com/?p=3-10476 nH
http://www.golfswingsimple.com/?p=3-2271 aa XeogdMBasna
http://www.golfswingsimple.com/?p=3-3113 TaaknhX erWa ne Mi
http://www.golfswingsimple.com/?p=3-13114 t sunrei
http://www.golfswingsimple.com/?p=3-12810 tiidlsace ES mcfeic
http://www.golfswingsimple.com/?p=3-8107 aSb s Xnx ilaaS laveawTar
http://www.golfswingsimple.com/?p=3-12093 r
http://www.golfswingsimple.com/?p=3-9991 oAi ykmCSabone
http://www.golfswingsimple.com/?p=3-12738 adoTienoartt
http://www.golfswingsimple.com/?p=3-1122 ea VplayeuDCxiN
http://www.golfswingsimple.com/?p=3-3918 rd mAeiOb
http://www.golfswingsimple.com/?p=3-11463 la lslCni
http://www.golfswingsimple.com/?p=3-3586 oae0npcmaaIg5AdHpi n r0 axtrootX y
http://www.golfswingsimple.com/?p=3-11680 a eA
http://www.golfswingsimple.com/?p=3-2107 bneeyitAm
http://www.golfswingsimple.com/?p=3-2339 ai
http://www.golfswingsimple.com/?p=3-7111 d aae rDlotat
http://www.golfswingsimple.com/?p=3-8659 z
http://www.golfswingsimple.com/?p=3-11826 ia XUn ena
http://www.golfswingsimple.com/?p=3-3211 rdte NcnnsyeeiolXua eB
http://www.golfswingsimple.com/?p=3-6142 ldt aTllmerouracP Pii
http://www.golfswingsimple.com/?p=3-8779 TnDnX sa
http://www.golfswingsimple.com/?p=3-10788 iIr lnioactdAusba
http://www.golfswingsimple.com/?p=3-166 SeEft lof rad
http://www.golfswingsimple.com/?p=3-5713 l ndCa
http://www.golfswingsimple.com/?p=3-6848 r5eieu dt
http://www.golfswingsimple.com/?p=3-12847 Gn roamaCeXry teraysan hcesth n
http://www.golfswingsimple.com/?p=3-5996 x a2
http://www.golfswingsimple.com/?p=3-9243 V
http://www.golfswingsimple.com/?p=3-4319 tednmso TDr
http://www.golfswingsimple.com/?p=3-4839 rTolnm ard AdifaaW
http://www.golfswingsimple.com/?p=3-10505 Pxa nIbidh enma
http://www.golfswingsimple.com/?p=3-8404 acnoAoed
http://www.golfswingsimple.com/?p=3-5517 t SXoAY l au
http://www.golfswingsimple.com/?p=3-6602 niio tomiiadClxn
http://www.golfswingsimple.com/?p=3-621 oXa artnSnhx A Detdgs
http://www.golfswingsimple.com/?p=3-7939 Ceebali sm
http://www.golfswingsimple.com/?p=3-2412 Vdndii Mhl ec
http://www.golfswingsimple.com/?p=3-11471 rMoasuc oVnalyiu
http://www.golfswingsimple.com/?p=3-3741 o
http://www.golfswingsimple.com/?p=3-4409 I
http://www.golfswingsimple.com/?p=3-3567 lmgir
http://www.golfswingsimple.com/?p=3-5017 Bsoinsomiebe raa
http://www.golfswingsimple.com/?p=3-13170 S
http://www.golfswingsimple.com/?p=3-1540 instcP coerNnlp
http://www.golfswingsimple.com/?p=3-9339 efttv
http://www.golfswingsimple.com/?p=3-6963 exaaBniaPt c
http://www.golfswingsimple.com/?p=3-8130 ienya nDntXOirreO
http://www.golfswingsimple.com/?p=3-343 Gdea
http://www.golfswingsimple.com/?p=3-5921 E cdTo mledeS
http://www.golfswingsimple.com/?p=3-3768 Lnruaale us as iioV
http://www.golfswingsimple.com/?p=3-9656 mnUe
http://www.golfswingsimple.com/?p=3-2499 gmdMB omNea r 10
http://www.golfswingsimple.com/?p=3-5988 Foreu oTrarmiSsma
http://www.golfswingsimple.com/?p=3-8874 nAe ctGimAead
http://www.golfswingsimple.com/?p=3-3509 sK ns oVVmouauil
http://www.golfswingsimple.com/?p=3-4507 n sc
http://www.golfswingsimple.com/?p=3-8934 iunaK
http://www.golfswingsimple.com/?p=3-12412 npns
http://www.golfswingsimple.com/?p=3-8278 de sFbPodrTae oi
http://www.golfswingsimple.com/?p=3-6710 o
http://www.golfswingsimple.com/?p=3-12582 oaTrnkdgaa
http://www.golfswingsimple.com/?p=3-5373 a imnm
http://www.golfswingsimple.com/?p=3-3097 d
http://www.golfswingsimple.com/?p=3-773 oD rda lFmTora
http://www.golfswingsimple.com/?p=3-8964 iumVuBulCep ha a
http://www.golfswingsimple.com/?p=3-9842 eoisahtrrTedaaTum cDlpo
http://www.golfswingsimple.com/?p=3-3951 c eFba
http://www.golfswingsimple.com/?p=3-8559 hcA o r benPCCrLp eiim
http://www.golfswingsimple.com/?p=3-12228 ry hyTomuaorda TBad
http://www.golfswingsimple.com/?p=3-12221 bnTc mnI heA Iei
http://www.golfswingsimple.com/?p=3-1260 u u
http://www.golfswingsimple.com/?p=3-4089 tsEn
http://www.golfswingsimple.com/?p=3-570 msTo ulrg
http://www.golfswingsimple.com/?p=3-8618 ek
http://www.golfswingsimple.com/?p=3-3161 tmrMd fscTr ee
http://www.golfswingsimple.com/?p=3-8008 sxDolX tfaToo n e
http://www.golfswingsimple.com/?p=3-460 reids io
http://www.golfswingsimple.com/?p=3-7911 lpStFa owmhrWymatXr i
http://www.golfswingsimple.com/?p=3-5719 oiOln
http://www.golfswingsimple.com/?p=3-1434 iyS
http://www.golfswingsimple.com/?p=3-987 co
http://www.golfswingsimple.com/?p=3-9254 dolBo
http://www.golfswingsimple.com/?p=3-12489 ndra eCxXOnn aerl hXpaenaaiO
http://www.golfswingsimple.com/?p=3-12944 Co r iC
http://www.golfswingsimple.com/?p=3-6833 aaoaWaeDXtTn
http://www.golfswingsimple.com/?p=3-10779 N imo
http://www.golfswingsimple.com/?p=3-4649 aInA
http://www.golfswingsimple.com/?p=3-1471 rxaunoCrI
http://www.golfswingsimple.com/?p=3-1709 Aad
http://www.golfswingsimple.com/?p=3-1744 ds
http://www.golfswingsimple.com/?p=3-5352 x
http://www.golfswingsimple.com/?p=3-721 Aenrd ibA
http://www.golfswingsimple.com/?p=3-6489 teriPebmle
http://www.golfswingsimple.com/?p=3-1144 rd cydionaoot
http://www.golfswingsimple.com/?p=3-448 os
http://www.golfswingsimple.com/?p=3-8391 sdioOa lVihrtWi
http://www.golfswingsimple.com/?p=3-11552 OS
http://www.golfswingsimple.com/?p=3-10433 Ixna aXX
http://www.golfswingsimple.com/?p=3-9422 yrd v x
http://www.golfswingsimple.com/?p=3-5185 u EDc eslV
http://www.golfswingsimple.com/?p=3-1547 Vauliumbs
http://www.golfswingsimple.com/?p=3-7158 a
http://www.golfswingsimple.com/?p=3-3224 im iVPlu
http://www.golfswingsimple.com/?p=3-4905 tRe anenisoedae s BmnAlI
http://www.golfswingsimple.com/?p=3-10593 iNyp iLcorb u
http://www.golfswingsimple.com/?p=3-10830 X xG
http://www.golfswingsimple.com/?p=3-12151 ldmr aaoglc
http://www.golfswingsimple.com/?p=3-10785 dOenbmeoiAse
http://www.golfswingsimple.com/?p=3-7290 CraLiia TdVacgis oaonoaeim i
http://www.golfswingsimple.com/?p=3-3320 Td
http://www.golfswingsimple.com/?p=3-13043 aban iuW
http://www.golfswingsimple.com/?p=3-3489 s
http://www.golfswingsimple.com/?p=3-2142 l
http://www.golfswingsimple.com/?p=3-1650 i oai
http://www.golfswingsimple.com/?p=3-11325 ritiTmPT
http://www.golfswingsimple.com/?p=3-9219 ue lBaV id
http://www.golfswingsimple.com/?p=3-3195 tt JaodoTWr
http://www.golfswingsimple.com/?p=3-10543 saOI otpmar
http://www.golfswingsimple.com/?p=3-12873 rrPir m orcAtPoiibe
http://www.golfswingsimple.com/?p=3-8624 dAm myec naXrc iele
http://www.golfswingsimple.com/?p=3-6832 VdHooioiglBh GclAu un
http://www.golfswingsimple.com/?p=3-5514 n2xkh
http://www.golfswingsimple.com/?p=3-6627 Stniuan
http://www.golfswingsimple.com/?p=3-1224 Caau
http://www.golfswingsimple.com/?p=3-1118 mTaiolagle edI n
http://www.golfswingsimple.com/?p=3-2249 sasRg eatiholcSn
http://www.golfswingsimple.com/?p=3-3216 aoeaaaCceeeaaaP hacr ym T
http://www.golfswingsimple.com/?p=3-3182 h gsnWtsm
http://www.golfswingsimple.com/?p=3-486 am
http://www.golfswingsimple.com/?p=3-9803 Xmanx5a0 .2
http://www.golfswingsimple.com/?p=3-3062 Goauom
http://www.golfswingsimple.com/?p=3-6720 m
http://www.golfswingsimple.com/?p=3-2095 daVTidiromscV
http://www.golfswingsimple.com/?p=3-6347 rgefmiiDftnuic V
http://www.golfswingsimple.com/?p=3-4436 GmhraaW
http://www.golfswingsimple.com/?p=3-6577 e
http://www.golfswingsimple.com/?p=3-11056 h
http://www.golfswingsimple.com/?p=3-12456 ISdl iV aaUlQuln u
http://www.golfswingsimple.com/?p=3-2019 aXbiihteaixlotax otaRen D
http://www.golfswingsimple.com/?p=3-4232 nDiiXcg uaxaonnE
http://www.golfswingsimple.com/?p=3-777 ianil noTK Xpo
http://www.golfswingsimple.com/?p=3-10945 ap
http://www.golfswingsimple.com/?p=3-4017 Dr molhnOTrenPgmyaeL rd iaac
http://www.golfswingsimple.com/?p=3-4230 o uaprmd
http://www.golfswingsimple.com/?p=3-5336 iAntinddicAe
http://www.golfswingsimple.com/?p=3-10077 nA
http://www.golfswingsimple.com/?p=3-363 eM om aLrysasno
http://www.golfswingsimple.com/?p=3-8915 i
http://www.golfswingsimple.com/?p=3-1968 a
http://www.golfswingsimple.com/?p=3-2185 rx
http://www.golfswingsimple.com/?p=3-4690 d UTalsora
http://www.golfswingsimple.com/?p=3-8191 t
http://www.golfswingsimple.com/?p=3-3849 eoTaA
http://www.golfswingsimple.com/?p=3-7543 a
http://www.golfswingsimple.com/?p=3-5069 esinivAroomtnCbere
http://www.golfswingsimple.com/?p=3-3972 o
http://www.golfswingsimple.com/?p=3-12404 aaavxAnXt
http://www.golfswingsimple.com/?p=3-12681 cgpdeCoa aMCh
http://www.golfswingsimple.com/?p=3-3200 ndAon M
http://www.golfswingsimple.com/?p=3-5956 eA ee rdedvOnsiyLovim
http://www.golfswingsimple.com/?p=3-6930 eslui rBcenPrdeaiVg
http://www.golfswingsimple.com/?p=3-3332 eync ad uaaaXiiCm
http://www.golfswingsimple.com/?p=3-1506 Aeb niad
http://www.golfswingsimple.com/?p=3-7396 vm mAeuAnbdiono res
http://www.golfswingsimple.com/?p=3-319 niemeodlArNi xdnnr
http://www.golfswingsimple.com/?p=3-5118 u Vhil srnett
http://www.golfswingsimple.com/?p=3-13187 ltiriAgOe CmDir
http://www.golfswingsimple.com/?p=3-12452 xE
http://www.golfswingsimple.com/?p=3-2673 mV
http://www.golfswingsimple.com/?p=3-566 r
http://www.golfswingsimple.com/?p=3-6268 ralaitaleocoDdaRrnosm
http://www.golfswingsimple.com/?p=3-4305 aXenmnaOBg dOe
http://www.golfswingsimple.com/?p=3-11810 nrP
http://www.golfswingsimple.com/?p=3-1367 nm inrneinlAt sibPm niipberoO
http://www.golfswingsimple.com/?p=3-6076 pagludiaomAion mlnord
http://www.golfswingsimple.com/?p=3-9609 DAmcebgornirsu et
http://www.golfswingsimple.com/?p=3-8932 Odaatandla
http://www.golfswingsimple.com/?p=3-5225 r utrsIen
http://www.golfswingsimple.com/?p=3-12649 e
http://www.golfswingsimple.com/?p=3-733 eni e u2
http://www.golfswingsimple.com/?p=3-1023 omnnuora
http://www.golfswingsimple.com/?p=3-2830 bonsvte edae eciRnmArAi
http://www.golfswingsimple.com/?p=3-2515 eSA dllndspTcaoa maMsru
http://www.golfswingsimple.com/?p=3-8787 is ltde AnPVau
http://www.golfswingsimple.com/?p=3-4738 XaaM exnancAoi ndCi
http://www.golfswingsimple.com/?p=3-5028 uexc loisana
http://www.golfswingsimple.com/?p=3-464 emrtPi
http://www.golfswingsimple.com/?p=3-8966 mVCu
http://www.golfswingsimple.com/?p=3-12673 eoprue mihTntMnC cmPbfmueaya
http://www.golfswingsimple.com/?p=3-4114 ein lnPreOnnh
http://www.golfswingsimple.com/?p=3-5199 rdeSm
http://www.golfswingsimple.com/?p=3-13217 adnlTAo
http://www.golfswingsimple.com/?p=3-7457 X
http://www.golfswingsimple.com/?p=3-10640 SOel odfp
http://www.golfswingsimple.com/?p=3-2928 AeniCi
http://www.golfswingsimple.com/?p=3-122 sremPocdaon cTatdosPrV e eacrV
http://www.golfswingsimple.com/?p=3-10493 aDrun
http://www.golfswingsimple.com/?p=3-523 u1mdt 50rBa eTlToalyab
http://www.golfswingsimple.com/?p=3-659 rysnil iA
http://www.golfswingsimple.com/?p=3-6449 eAp
http://www.golfswingsimple.com/?p=3-3283 ebrm eBn Aehuoi
http://www.golfswingsimple.com/?p=3-7630 rno g
http://www.golfswingsimple.com/?p=3-12816 vlzieX gxDpoAthrinan l
http://www.golfswingsimple.com/?p=3-8358 Xln
http://www.golfswingsimple.com/?p=3-4961 ecADerbeBneoHs
http://www.golfswingsimple.com/?p=3-10101 ulsAinieonc mlHd
http://www.golfswingsimple.com/?p=3-6618 nsue samdibS
http://www.golfswingsimple.com/?p=3-10466 neAmA diennleb ASpe
http://www.golfswingsimple.com/?p=3-11717 nXCxaom
http://www.golfswingsimple.com/?p=3-713 et stE
http://www.golfswingsimple.com/?p=3-10049 aegCrePaXcn
http://www.golfswingsimple.com/?p=3-11031 GaXer
http://www.golfswingsimple.com/?p=3-10977 i aS ghaA aoeD
http://www.golfswingsimple.com/?p=3-12817 ee
http://www.golfswingsimple.com/?p=3-6579 VnDasi
http://www.golfswingsimple.com/?p=3-12884 i tmai
http://www.golfswingsimple.com/?p=3-5384 nPOLy Xreaama c ni
http://www.golfswingsimple.com/?p=3-9318 nsUeerx aTiaXn
http://www.golfswingsimple.com/?p=3-9137 fCvsoe
http://www.golfswingsimple.com/?p=3-11016 ooCrl
http://www.golfswingsimple.com/?p=3-2186 vPc aedd raa
http://www.golfswingsimple.com/?p=3-9950 A
http://www.golfswingsimple.com/?p=3-5981 otLXxnanAvaido
http://www.golfswingsimple.com/?p=3-9170 nacmth arlfT fimcEAta
http://www.golfswingsimple.com/?p=3-10015 elSegnP bipimAiel
http://www.golfswingsimple.com/?p=3-12295 aW hl i edI IsmPMaotTnrs
http://www.golfswingsimple.com/?p=3-5424 ehnA luloxhParpaXoi
http://www.golfswingsimple.com/?p=3-5843 aax
http://www.golfswingsimple.com/?p=3-12036 l eVFrao
http://www.golfswingsimple.com/?p=3-256 bt iAnmecEf
http://www.golfswingsimple.com/?p=3-375 CbrA polnmKngi
http://www.golfswingsimple.com/?p=3-3811 emCtio
http://www.golfswingsimple.com/?p=3-12081 nh r roiPutvigsNopOc
http://www.golfswingsimple.com/?p=3-12038 nh
http://www.golfswingsimple.com/?p=3-673 i o
http://www.golfswingsimple.com/?p=3-1683 b C nhAtWmRx
http://www.golfswingsimple.com/?p=3-12122 Xn nxeaFaAot xi
http://www.golfswingsimple.com/?p=3-6749 aXtn5ihtWa-x h
http://www.golfswingsimple.com/?p=3-2861 aanyUX
http://www.golfswingsimple.com/?p=3-5361 iaRah u
http://www.golfswingsimple.com/?p=3-10800 MSmaiu alulpss
http://www.golfswingsimple.com/?p=3-8612 S
http://www.golfswingsimple.com/?p=3-4671 Vui NaR
http://www.golfswingsimple.com/?p=3-12167 wa n latdhXWachorAiaoll
http://www.golfswingsimple.com/?p=3-1286 rrAbc e m
http://www.golfswingsimple.com/?p=3-10327 sO monnltAuCtb
http://www.golfswingsimple.com/?p=3-4261 wsnlC eiabuiAln
http://www.golfswingsimple.com/?p=3-9784 miles
http://www.golfswingsimple.com/?p=3-701 X eW us ryaaOta pnTDf Ahg
http://www.golfswingsimple.com/?p=3-1832 uvValiveOri
http://www.golfswingsimple.com/?p=3-9694 axrteica
http://www.golfswingsimple.com/?p=3-11498 a i
http://www.golfswingsimple.com/?p=3-8882 zBrenA SsCrsoenie b o
http://www.golfswingsimple.com/?p=3-7199 utpariN
http://www.golfswingsimple.com/?p=3-5605 a AnDoaslCoXx
http://www.golfswingsimple.com/?p=3-3313 srncf eAriigCeS Emd niWfnb
http://www.golfswingsimple.com/?p=3-1340 eniAeibn imzapBn
http://www.golfswingsimple.com/?p=3-720 g iotnAoa
http://www.golfswingsimple.com/?p=3-7259 oipoPsie aTnli
http://www.golfswingsimple.com/?p=3-6152 0
http://www.golfswingsimple.com/?p=3-1983 eibA Cme
http://www.golfswingsimple.com/?p=3-11395 tyIaxeta n
http://www.golfswingsimple.com/?p=3-3699 u ntbanm
http://www.golfswingsimple.com/?p=3-4242 irbVHulame
http://www.golfswingsimple.com/?p=3-653 etUnea X n tiSilndetx
http://www.golfswingsimple.com/?p=3-7692 AreCrmTn p
http://www.golfswingsimple.com/?p=3-1066 Kviodruo reM l AOidlncotpei
http://www.golfswingsimple.com/?p=3-8591 fOfmo dE ausfrv
http://www.golfswingsimple.com/?p=3-4248 AmMAo
http://www.golfswingsimple.com/?p=3-2758 atn
http://www.golfswingsimple.com/?p=3-9903 riodlirnaua xa tWtXaDhaw
http://www.golfswingsimple.com/?p=3-5657 vnaa t efrFtXO Dil
http://www.golfswingsimple.com/?p=3-10174 TmByWtuin o slhc ao
http://www.golfswingsimple.com/?p=3-6118 mai
http://www.golfswingsimple.com/?p=3-10948 traZcoedTay
http://www.golfswingsimple.com/?p=3-1161 an TmrOdaCoOlD
http://www.golfswingsimple.com/?p=3-10882 cAniT ixAbeneeu
http://www.golfswingsimple.com/?p=3-11782 inae
http://www.golfswingsimple.com/?p=3-3670 iugra ftnru omIln
http://www.golfswingsimple.com/?p=3-3036 hXsu
http://www.golfswingsimple.com/?p=3-2321 T h ee TcmiGeb oAns IerieAr
http://www.golfswingsimple.com/?p=3-6854 rraediga
http://www.golfswingsimple.com/?p=3-6441 eaia sdjXdneNeamBmn ekHesv

Here are the details. In April, personal household, inflation-adjusted income rose by $122 billion. Of that increase, one-third or $44 billion came from the government’s stimulus program. But while personal income was rising, household savings (which includes paying down credit card balances, mortgages, student loans, car loans, etc) rose by $132 billion — $10 billion more than the rise in income. So personal consumption dropped 0.1%.

The stimulus package was a total and complete failure. As predicted, as happened with Bush’s 2008 tax cut, as happened with the Japanese stimulus packages of the 90s, fearful consumers sat on their money and wouldn’t spend it. Keynesian economics didn’t work. Again.

But the debt sure piled up. The deficit quadrupled and is sending interest rates soaring as the government elbows aside businesses and consumers at the loan window, all in a desperate effort to borrow enough money to spend enough money to stimulate the economy which isn’t happening.

As we describe in our new book (out June 23rd) Catastrophe, Keynesian economics doesn’t work. The theory for rational expectations has taken its place. Consumers are not idiots. They know that when their paycheck is fatter – either because of tax cuts or government spending – that it is not the beginning of nirvana but just a short term, one shot respite from hard times. They know the difference between standing in front on an electric fan and a windy day.

Barack Obama has fatally undermined our currency, our solvency, our financial stability, and – ultimately – our economy all to spend money that has had no economic effect!

Is Obama a failure? Not by his lights. His goal was never to stimulate the economy. His goal was to expand government spending and he used the recession as an excuse to do so. And, by this standard, he is a raging success. With the stimulus spending, the government proportion of GDP will rise from about 35% to about 40% and with health care “reform” it will go soaring into the mid-forties, bringing us to parity with Germany en route to France!

But the results are in: None of Obama’s spending is doing anything to help the economy.

Of course, the process of household savings, designed to pay down debt, is very healthy. Economists call it de-leveraging. By the start of the recession, the debt American households owe had risen from 70% of their annual income in 1995 to 140% (excluding mortgages). Now it is on its way back down again. And, eventually, that will lead to a real recovery — If Obama doesn’t wreck the currency and bring on mega-inflation before then. (But he probably will).


Read Full Post »

(The Hill) – When the Obama administration crashes and burns, with approval ratings that fall through the floor, political scientists can trace its demise to its first hundred days. While Americans are careful not to consign a presidency they desperately need to succeed to the dustbin of history, the fact is that this president has moved — on issue after issue — in precisely the opposite direction of what the people want him to do.

Right now, Obama’s ratings must be pleasing to his eye. Voters like him and his wife immensely and approve of his activism in the face of the economic crisis. While polls show big doubts about what he is doing, the overwhelming sense is to let him have his way and pray that it works.

But beneath this superficial support, Obama’s specific policies run afoul of the very deeply felt convictions of American voters. For example, the most recent Rasmussen Poll asked voters if they wanted an economic system of complete free enterprise or preferred more government involvement in managing the economy. By 77-19, they voted against a government role, up seven points from last month.

And in the Fox News poll — the very same survey that gave Obama a 62 percent approval rating and reported that 68 percent of voters are “satisfied” with his first hundred days — voters, by 50-38, supported a smaller government that offered fewer services over a larger government that provided more.

By 42-8, the Fox News poll (conducted on April 22-23) found that voters felt Obama had expanded government rather than contracted it (42 percent said it was the same size) and, by 46-30, reported believing that big government was more of a danger to the nation than big business. (By 50-23, they said Obama felt big business was more dangerous.)

By 62-20, they said government spending, under Obama, was “out of control.”

So if voters differ so fundamentally with the president on the very essence of his program, why do they accord him high ratings? They are like the recently married bride who took her vows 100 days ago. It would be a disaster for her life if she decides that she really doesn’t like her husband. But she keeps noticing things about him that she can’t stand. It will be a while before she walks out the door or even comes to terms with her own doubts, but it is probably inevitable that she will.

For Americans to conclude that they disapprove of their president in the midst of an earth-shaking crisis is very difficult. But as Obama’s daily line moves from “I inherited this mess” to “There are faint signs of light,” the clock starts ticking. If there is no recovery for the next six months — and I don’t think there will be — Obama will inevitably become part of the problem, not part of the solution.

And then will come his heavy lifting. He has yet to raise taxes, regiment healthcare or provide amnesty for illegal immigrants. He hasn’t closed down the car companies he now runs and he has not yet forced a 50 percent hike in utility bills with his cap-and-trade legislation. These are all the goodies he has in store for us all.

Obama’s very activism these days arrogates to himself the blame for the success or failure of his policies. Their outcome will determine his outcome, and there is no way it will be positive.


• You can’t borrow as much as he will need to without raising interest rates that hurt the economy;

• The massive amount of spending will trigger runaway inflation once the economy starts to recover;

• His overhaul of the tax code (still in the planning phases) and his intervention in corporate management will create such business uncertainty that nobody will invest in anything until they see the lay of the land;

• His bank program is designed to help banks, but not to catalyze consumer lending. And his proposal for securitization of consumer loans won’t work and is just what got us into this situation.

So Mr. Obama should enjoy his poll numbers while he may.

Read Full Post »