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The Obama Watch
Determined to Decline
President Obama is leading a worldwide retreat for America on foreign policy, and slashing our nation's defenses, including adoption of policies for nuclear disarmament, as we discussed last week. That is being done to deliberately reduce America to the status of "just another country," because President Obama and his ultraliberals think it is immoral for any one nation to be elevated above the others. That discussion last week was based on Charles Krauthammer's Wriston Lecture given at the Manhattan Institute in New York City, "Decline Is a Choice: The New Liberalism and the End of American Ascendancy."
American Economic Decline
President Obama and his fellow ultraliberal Democrats now in complete control in Washington are choosing decline for America on domestic policy and the economy as well. The recession has dragged on into its 23rd month now under the leadership of Obamanomics, and its wooden, ideological devotion to old-fashioned, long discredited, Keynesian doctrine. The longest previous recession since World War II, 65 years ago, was 16 months, with the average at 10 months. Another 3 million jobs have been lost since President Obama took office, with unemployment now at almost 10%.
Even the Chairman of President Obama's own Council of Economic Advisors testified before Congress last week that the outlook for unemployment remains grim. Christina Romer admitted that "the unemployment rate is predicted to continue rising" to over 10%. She added,
[T]he unemployment rate typically falls when GDP growth exceeds its normal rate of roughly two and a half percent per year and rises when GDP growth falls short of this pace. With predicted growth right around two and a half percent for most of the next year and a half, movements in the unemployment rate either up or down are likely to be small. As a result, unemployment is likely to remain at its severely elevated level….Thus, while job losses will likely end early next year, robust job gains may still be several quarters away.
Moreover, Romer admitted that the vaunted Obama stimulus, which was sold on the claim that it would prevent unemployment from rising above 8%, will not change this grim scenario. She testified:
Fiscal stimulus has its greatest impact on growth around the quarters when it is increasing most strongly. When spending and tax cuts reach their maximum and level off, the contribution to growth returns to roughly zero….Most analysts predict that the fiscal stimulus will have its greatest impact on growth in the second and third quarters of 2009. By mid-2010, fiscal stimulus will likely be contributing little to growth.
Note that the third quarter of 2009 ended a month ago.
Almost one trillion to be spent on the Obama stimulus, all to little or no good, with unemployment stuck at 10%. That has to be one of the greatest wastes of taxpayer funds in world history, brought to you by the Messiah and his ultraliberal Congressional majorities. Yet, with his ideological blinders on, President Obama rigidly refuses to change course. Instead of considering the cuts in marginal tax rates, spending cuts, strong dollar policies, and deregulation that worked so spectacularly under President Reagan, we now hear talk of another stimulus package, which would be the third Keynesian failure supported by Obama in less than two years. Moreover, Obama still insists on raising marginal tax rates in 14 months, if not sooner, still more federal regulation, and continued weak dollar policies.
The Decline of the Dollar
Yet the trillion dollar deficits brought to us by the Obama stimulus and budget are now threatening the world currency status of the dollar. As Krauthammer said at the Manhattan Institute's Wriston Lecture:
The effect on the dollar [of Obama's policies] is already being felt and could ultimately lead to a catastrophic collapse and/or hyperinflation. Having control of the world's reserve currency is an irreplaceable national asset. Yet with every new and growing estimate of the explosion of the national debt, there are more voices calling for the replacement of the dollar as the world currency -- not just adversaries like Russia and China, Iran and Venezuela, which one would expect, but just last month the head of the world bank.
If the dollar is replaced as the world currency, then when we want to buy oil or anything else from the rest of the world, we will have to buy some other currency to do so. Any weakness in the dollar will then immediately impose a higher cost on us at the time.
Yet, raising income and capital gains tax rates as President Obama still plans will cause the dollar to decline still more, as it will discourage overseas investment in the U.S., which requires purchase of dollars by foreigners. The continued weak dollar policies Obama demands from the Fed will also cause further dollar declines. So will Obama's deliberate high deficit (Keynesian economics), runaway national debt policies. As Judy Shelton wrote in The Wall Street Journal on October 14:
By the end of 2019, according to the administration's budget numbers, our federal debt will reach $23.3 trillion -- as compared to $11.9 trillion today. To put it in perspective: U.S. federal debt was equal to 61.4% of GDP in 1999,…70.2%...in 2008 (under the Bush administration),…an estimated 90.4% this year and…[will] touch the 100% mark in 2011, after which the projected federal debt will continue to equal or exceed our nation's entire annual economic output through 2019. The U.S. is thus slated to enter the ranks of those countries -- Zimbabwe, Japan, Lebanon, Singapore, Jamaica, Italy -- with the highest government debt-to-GDP ratio (which measures the debt burden against a nation's capacity to generate sufficient wealth to repay its creditors). In 2008, the U.S. ranked 23rd on the list -- crossing the 100% threshold vaults our nation into seventh place.
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Lullaby's, Legends and Lies| 10.28.09 @ 8:18AM
Unfortunately, the voting public, in general, have no idea, and do not seem to care at all about politics. They don’t watch, or read the news, and therefore they make their decisions based exclusively off of commercials, or who looks the best, like it’s some sort of High School popularity contest (it’s not, it’s friggin’ important!!).
It should only be about the issues, and where the candidate stands on those issues, it should not be American Idol Politics (like it’s been recently). It’s really a sad state of affairs to think, that I’m the most informed person that “I” know when it comes to politics, because I’m just not that bright (or maybe I am, and everybody else is just that stupid-I hope not!!). So the next round of election’s is the most important ones for our future as a Nation, but to say, that this is no time for third party candidates to ascend to power, is just dead wrong. If the GOP keeps putting these “Joker RHINO’s” on their tickets, well then, there is plenty of time for third party candidates to ascend (see Hoffman in NY-23). The GOP has to be transformed now, so we can get back on track, with a united voice again. But if they don’t change their ways though, it’ll be time to replace the leadership of the GOP, or it’ll be time to bail on the Party altogether, and form a new one. We can create a completely New Party composed of the third Party candidates that the GOP didn’t think kissed enough ass, or were'nt moderate enough to endorse.
I think we all can support a third Party that gives a flying sh*t about this Country, and its future. Maybe the GOP can be that Party again, just maybe, but their recent track record, and their commitment to our future, makes me wonder.
Listen to the people Grand Old Party, or the people will stop listening to you.
Let’s stop putting our fingers in the Dike to stop the water pouring in, and instead let’s build a completely new Dike (of course a good paying, American employing Dike that is).
Alan Brooks| 10.28.09 @ 12:44PM
"Dike"?
You mean literature today?
("shut up, Brooks")
Lullaby's, Legends and Lies| 10.28.09 @ 1:04PM
Uhmm? What? I don't get the reply Brooks? I'm just not that bright remember? Literature today?
Richard| 10.28.09 @ 11:24AM
The Democrats are well aware of the importance of the 2010 elections, so be prepared to see unprecedented levels of voter fraud. The Obamites specialize in stealing elections - Al Franken's victory in Minnesota will look like child's play compared to what awaits us in 2010.
Don| 10.29.09 @ 11:03PM
Glad someone else has noticed. What is it about the current accepted 'rules' that we re-count close elections until the democrat produces enough fraudulent votes to 'win'? The GOP leadership are largely sheep or worse - co-conspirators with the Dems.
brand new discounting Laptop B| 10.28.09 @ 11:27AM
brand new discounting laptop AC Adapters
brand new discounting Laptop Batteries
Tim| 10.28.09 @ 11:29AM
The model for this is Hurricane Katrina, or Andrew. Everybody knows for years that they are at risk. One day a storm appears on the horzion and government people reassure everyone that they have contingecny plans. Some people prepare, most don't. The thing hits and a lot of people end up dead or trapped on the roof of their flooded house. then the recriminations begin.
Do better. Don't rely on the government. Move to high ground now and be prepared to weather the storm.
davelnaf| 10.28.09 @ 11:49AM
Many democrats in Congress find themselves in a quandary with Obama in the White House. They can not criticize him and they can not let him fail; their political futures depend on him not becoming another Jimmy Carter. These dems must give the appearance of going along with whatever it is he wants because to deny him his prizes would arouse the radical dem base all over the country. Although a small minority, these people are vital to key democrats and they must keep them happy or at least not turn them off; this has had the effect of perpetuating an appearance (the dynamic) within Congress that many of the things that Obama wants are inevitable.
But more rational democrats with serious reservations about the crippling future costs and eventual degradation of the current health care system must feel as if caught in vise. On the one hand they know that they will take some kind of hit next year or three years from now over Obamacare. For these people keeping a lid on their misgivings and true feelings about it contributes to the appearance that the dems can get this thing done.
More moderate democrats are concerned about the future of their party and they know that passing legislation for the sake of an increasingly unpopular radical in the White House will have some obvious and far reaching consequences as well as many unforeseen ones.
Paul from SA| 10.28.09 @ 11:51AM
Peter, great article, but Newt Gingrich lost his credibility when he endorsed global warming with Nancy Pelosi. Newt is going downhill, and it's too bad. He is now resorting to attacking, trashing and insulting conservatives and anybody who disagrees with him -- just like a typical liberal Democrat. I think Newt would vote for Hitler if he was a Republican and had a chance to win. Mentioning him in your article drops your own credibility down a notch.
Louis Jenkins| 10.28.09 @ 12:31PM
If you rely on the dollar to sustain your future you're building a house on sand in a rushing creek, and I'm not a gold freak. Silver is more to my liking. It's the common man's precious metal. It is maddening that the administration is doing nothing, nothing, to make the dollar stronger. All their efforts are toward destroying it and they're doing a fine job. Is this hope and change that the loonies voted for? Yes it is! The dollar ain't worth a pitence of pocket change. As good as precious metals are, it is better to invest in lead with a steel coating. You could always trade it for a loaf of bread or bring home some dead animal flesh.
Alan Brooks| 10.28.09 @ 12:48PM
The GOP is trapped no matter who you elect..
If you say 'border management' then you are a "racist".
Jen| 10.28.09 @ 6:02PM
Is our government taking the roll of firemen or arsonists with our economy? As Peter Ferrara illustrates: arsonists. I wish more was said in the wider public realm about just how bad our economy really is and how this government is driving it towards a cliff (instead of this drivel about a "recovery"). Real unemployment is closer to 17 % and some have estimated it is higher than 20% (shadowstats). As for the dollar falling, part of the reason (outside of our insane level of debt) is the rampant fraud, corruption and outright market manipulation by the banksters that is becoming so blatantly visible. Be worried folks, very worried. The worst is yet to come.
Sue| 10.28.09 @ 6:37PM
There's no way we can even begin to pay the interest on the debt. It's now at $300 million a DAY. What is it going to be when the debt doubles and a higher rate is charged by our borrowing partners?
Everyone knows that a 29.99% credit card interest rate means doomsday for you eventually.
I agree with Jen - the worst is yet to come and it won't be pretty. A box of cereal today is over $4. There was not one single item in my grocery cart under $2. Just last year there wasn't a single item under $1. I'm not talking about the $.99 off-brand of bread either. I'm talking about the meat and potatoes and vegetables that are needed to feed a family.
I believe this man is intentionally creating a coming storm so he can redistribute the wealth to another class of citizens. The problem is, there won't be any wealth left!
David Shipp| 10.28.09 @ 10:44PM
Actually there is still hope and a way to pay off the debt. First watch the race next Tuesday in NY 23rd district. It will be the prediction for 2010. second help pass H.R.25 and third support downsizeDC.org Get involved.
Jonathan Wilber| 10.29.09 @ 7:40AM
Heres my idea. We need a sacrificial congress. This is a group of candidates who say "We will make the hard decissions to cut spending and government to sustainable levels". Their only purpose is to do it. They will then no longer be politically viable and be unelectable. job done. I would vote for a candidate who said " I'll do what it takes... and realize my political career is over".
Pingback| 10.28.09 @ 6:43PM
Twitter Trackbacks for The American Spectator : Determined to Decline [spectator.org links to this page. Here’s an excerpt:
Rmm| 10.28.09 @ 7:00PM
Great article Peter,
Why must we, who love this country, stand by while the loonies on the left drive us down the road to ruin? What seems to be a concensus on this site, that conservatives are aware of the failed policy's , Keynesian economics for one, promoted by O&CO;, leads one to presume that argument is not enough. There needs to be REAL action, talk doesn't cut it.
Voting the bums out of office is an iffy proposition. Where I live people like me are grossily outnumbered. So where do we go from here? Any fresh thoughts?
Ken (Old Texican)| 10.28.09 @ 7:12PM
Rmm
You betcha!
sign in over at T.E.A.M. AMERICA and read two levers of power.
It works! www.myteamusa.org
bobmontgomery| 10.28.09 @ 9:22PM
Mr. Ferrara, et al, are dstinguished, credentialed, scholarly, respectable people who undoubtedly have the best interests of the country at heart. BUT, why would principled conservatives, taking note of all that has gone on in this country for forty years, Reagan to the contrary notwithstanding, continue to fall in lockstep with a Republican Party whose mottoes are patterned on following the liberal lead, of accepting the liberal premise, of joining the PC movement? To wit:" We, too think the economy needs stimulating, but WE COULD HAVE DONE IT FOR $500 billion instead of $787 billion; We, too, think health care needs reforming, but WE COULD DO IT FOR $250 billion instead of $900 billion; We, too, think MAN CAUSES GLOBAL WARMING, but we want to spend far less combatting it; wE, TOO, THINK WE NEED TO SPEND MORE AND MORE AND MORE FEDERAL DOLLARS EVERY YEAR ON EDUCATION, WE JUST WANT TO DIRECT IT DIFFERENTLY." The Republican Party constantly argues, not that it wants to take less money out of the economy through taxation, but that MORE TAX MONEY WILL FLOW INTO THE FEDERAL COFFERS IF THE TAX CODE IS AMENDED. Now, Mr. Ferrara, and Mr. Gingrich, and Mr. Steele, and Mr. Sessions and Ms. Hutchison, and Mr. McCain, tell me how reducing the top marginal rate and having a result of sending more and more and more dollars to Washington, DC is a CONSERVATIVE VALUE? Your contract with America, if you care to offer one in 2010, should include abolishing the Dept. of Education, the Department of Commerce, the Dept. of Energy, the EPA and a whole slew of others. Don't put 2010 out there as a straw man that we have to beat the Democrats or they will continue to bleed us slowly. We have been bled slowly for forty years. One year, or two, or four, or as long as it takes to get a conservative movement in this country, is nothing. In case y'all haven't noticed, the conservative Republicans most admired by the public are ahead of the curve on this (see NY -23)>
Kerry Marvin| 10.28.09 @ 9:59PM
Sent 28 Oct to Senator Alexander, and Senator Corker. and Congressmen Roe and a Host of Other's on Judiciary and Commities for The Government Afairs, Ethic's and Rules.
Dear Senator Corker,
cc Senator Alexander.
I have Sent Several E-mail and Faxes to you on Several Issues, But Now I wish to declare Myself in the Camp of those who are Calling for the Immediate Impeachment of this Sitting President for Cause.
Qoute:
Be It; Resolved, that Barack Hussein Obama, President of the United States, is impeached for high crimes and misdemeanors, and that the following articles of impeachment be exhibited to the United States Senate:
Articles of impeachment exhibited by the House of Representatives of the United States of America in the name of itself and of the people of the United States of America, against Barack Hussein Obama, President of the United States of America, in maintenance and support of its impeachment against him for high crimes and misdemeanors.
Article I
In his conduct while President of the United States, Barack Hussein Obama, in violation of his constitutional oath faithfully to execute the office of President of the United States and, to the best of his ability, preserve, protect, and defend the Constitution of the United States, and in violation of his constitutional duty to take care that the laws be faithfully executed, has:
unlawfully exercised the authority of his office to take private property for public use in violation of the Fifth Amendment of the United States Constitution, which guarantees to the People that “private property shall not be taken for public use without just compensation,” and without “due process of law”;
unlawfully interfered with the management of private companies for the purpose of achieving government control of them, in violation of the Fifth Amendment of the United States Constitution.
unlawfully interfered with the economic rights of the People by imposing unreasonable impairments in the fulfillment of their intended contractual obligations, and their ability to enter into such contracts, and attempting to change our fundamental economic system, where there is no significant or legitimate public purpose to do so.
In doing this, Barack Hussein Obama has undermined the integrity of his office, has brought disrepute on the Presidency, has betrayed his trust as President, and has acted in a manner subversive of the rule of law and justice, to the manifest injury of the people of the United States.
Wherefore, Barack Hussein Obama, by such conduct, warrants impeachment and trial, and removal from office and disqualification to hold and enjoy any office of honor, trust or profit under the United States.
Article II
In his conduct while President of the United States, Barack Hussein Obama, in violation of his constitutional oath faithfully to execute the office of President of the United States and, to the best of his ability, preserve, protect, and defend the Constitution of the United States, and in violation of his constitutional duty to take care that the laws be faithfully executed, has prevented, obstructed, and impeded the administration of justice, and to that end, through his subordinates and agents, has:
unlawfully engaged in a conspiracy to suppress evidence of the true place of his birth. This obstruction of justice has resulted in a violation of the Constitutional provision that a President of the United States must be a natural born citizen.
unlawfully refused his assent to the Laws of the United States, and exercised false powers of veto that are contrary to Constitution.
In all of this, Barack Hussein Obama has undermined the integrity of his office, has brought disrepute on the Presidency, has betrayed his trust as President, and has acted in a manner subversive of the rule of law and justice, to the manifest injury of the people of the United States.
Wherefore, Barack Hussein Obama, by such conduct, warrants impeachment and trial, and removal from office and disqualification to hold and enjoy any office of honor, trust or profit under the United States.
UnQuote:
I call on You Sir and Your Oath of Office to do Your Sworn "Duty to Defend and Protect the Constitution and Our Rights".
In Short Sir.
" Represent U.S. Interests instead of a Political Party or Agenda Inimical to the Constitution and Bill of Rights of the United States of America!"
Thank You For Your Consideration, and Support for your Duty and Oath of Office.
David Shipp| 10.28.09 @ 10:49PM
I will support this. ds
Pingback| 10.29.09 @ 5:47AM
The American Spectator : Determined to Decline | americantoday links to this page. Here’s an excerpt:
Pingback| 10.29.09 @ 5:47AM
The American Spectator : Determined to Decline | americantoday links to this page. Here’s an excerpt:
Gerald Steohens| 10.29.09 @ 7:50AM
Historically, Americans have revealed they can be slow at the switch yet the Nation has survived.
Americans understand 10% unemployment. They are also capable of grasping lousy economy but not corrosive deficit. Even individually, the message angers them, when coupled they will pay undivided attention.
DRUMBEAT the bloody message by any and all forms of communication. SPEND some money on mas media outlets. DRUMBEAT!
The Democrats mastered the technique during the entire BUSH presidency, DRUMBEAT, incessant DRUMBEAT. Slick Willie rode the technique into the White House.
" IT'S YOUR JOB STUPID!"
"KILL THE ECONOMY - KILL EVEN MORE JOBS"
"IS YOUR JOB NEXT?"
Even the smart butt young will get IT!
Gerald Stephens
Hartford, CT
Gerald Stephens
Hartford, CT