Obama's Economic Armageddon

In a little over a month, Barack Hussein Obama has accomplished more than any American President has in four years.

That accomplishment was to run up a bigger deficit in a month, than any American President has in four years. Now arrogantly rolling out a 10 year spending plan, 2 years more than his legal term, Obama proposes saddling Americans with over 20 Trillion dollars in debt.

No depression or recession could be nearly as damaging or last as long as the damage Obama plans to do to the economy. Having already run up a deficit of 1.75 Trillion dollars in a little over a month, the Prince of Chicago is obviously only getting started. Despite the Orwellian media coverage busy repackaging Obama's plans to triple the deficit, as a plan to "cut the deficit" based purely on White House talking points, what we're really looking at is the "Selling of America" to pay for massive spending favoring the Democratic power base.

With tax hikes targeting industry in general, and oil and gas in particular, we can expect higher oil prices to go with the spiraling stock market. Since the price of oil in turn impacts the cost of shipping for goods and services, that means the price of products will also continue going up. When combined with an emphasis on a strong dollar, we can expect imports to take a beating too.

What it all adds up to is that the average American will have less money to spend, and can expect that money to go much less further.

The Gross Domestic Product (GDP) is down 6.2 percent. Meanwhile Federal spending is actually up 6.7 percent. That is an excellent demonstration of the entire fallacy behind using government spending to reboot the economy. Like a vacuum cleaner, Federal spending is sucking up more and more of an already shrinking economy, and shrinking it further by taking steps toward nationalization and tax increases.

While state spending has actually gone down 1.4 percent in response to budget crunches, demonstrating some belated fiscal management, Federal spending continues to rise. Under Obama's spending plan, we're headed straight into deficit spending that will more than double the previous legal limit.

Obama's plan is to put every single American, living and unborn, for at least a generation deep into debt in order to finance an economic recovery, that most economics agree would happen anyway far sooner than that. And the economic recovery plan in fact does next to nothing to aid the economy. Instead we're going to see tax cuts weighed toward small businesses in an income range that tend not to have any employees anyway. We're going to see mortgage bailouts for people who should never had gotten mortgages in the first place. And we're going to see bad behavior by individuals and financial institutions shored up at taxpayer expense.

There's a reason that every time Obama gives a speech on the economy, the stock market falls further. The market has gone steadily down since Obama was elected by over 2000 points. His election saw the worst post-election loss in the market ever. And we're just getting started.

With the government set to take a nearly 40 percent stake in Citigroup, we're already on the road to nationalization. The very rumors of nationalization and the government taking a larger stake in Citigroup naturally caused further setbacks for Citigroup, which turned it into a self-fulfilling prophecy. And that is no coincidence at all. The sorts of tactics usually associated with hostile takeovers by one corporation against another, are being deployed by Obama's people against the United States economy.

Now we're set to spend tens of billions of dollars, perhaps more, to salvage Citigroup, whose largest shareholders, prior to our stake in it, were the Royal families of Saudi Arabia and the United Arab Emirates. In essence American taxpayers have been dunned to bail out a bank whose largest shareholder is Saudi Prince Alaweed Bin Talal.

After 9/11 Giuliani made headlines by telling Alaweed Bin Talal to take his 10 million dollar check and go to hell. Now after Bin Talal and Robert Rubin forced the ouster of Citigroup CEO Chuck Prince, replacing him with Vikram Pandit, the American taxpayer is covering Bin Talal's bank losses with a blank check well into the billions.

The press lately has been full of articles deconstructing the fallacies that were behind the economic collapse. Their common denominator behind them all is arrogance and a refusal to accept a reality check on the consequences of their conduct. That phenomenon however is far from limited to Wall Street. It reigns triumphant in Washington D.C. under the motto of "Hope and Change".

It took a culture of arrogance and fraud to peddle worthless mortgages as securities. It takes an even bigger culture of arrogance and fraud to peddle Federal pork barrel spending as economic recovery. Both are the actions of people with no understanding of consequences who have come to believe their own press. Behind the collapse of Wall Street was a press that refused to ask the tough questions. Behind the collapse of America is a press that refuses to ask Obama the tough questions.