sunset from behind the wire

sunset from behind the wire

Friday, June 28, 2013

Hope and Change (another brief review)

ObamaCare for Dummies:

Gallup Polling surveyed 603 small business owners and asked a series of questions to determine the impact of ObamaCare on their business.
41% said they have frozen hiring to avoid ObamaCare.
●19% said they have laid off employees to avoid ObamaCare.
●48% think ObamaCare will hurt their bottom lines. Only 9% think ObamaCare will be good for their business.
●55% think ObamaCare will lead to higher costs. Only 5% think it will lead to lower costs.
●52% think ObamaCare will lead to a reduction in the quality of healthcare. Only 13% expect an improvement.
Small businesses account for two-thirds of all new jobs during the George W. Bush and Obama presidencies. As usual, the little people take it in the neck despite their naive votes for Obama as the savior of the poor. 

When President Obama first announced his plans to 'change and rearrange' America's medical system, there were 43 million uninsured. Now there are 49 million. 

Elections have consequences.

The Federal Reserve Quantitative Easing Program:

The Quantitative Easing program allows the US Government to borrow endlessly to fund it's expanding deficits. The Federal Reserve simply expands credit without printing money and without backing, relying on "trust" and America's preeminence in the world to keep the currency floating.

US Federal Reserve Chairman Ben Bernanke said at a Wednesday press conference that the US central bank would consider reducing its $85 billion-per-month asset purchasing program later this year, based on an improved outlook for the US economy. Federal Reserve instituted its program of lending to large banks without interest and that practice continues. The Bank for International Settlements (Basil, Switzerland) predicted in its annual report that a rise in bond yields across the maturity spectrum would inflict losses on US Bond investors (usually living outside of the US) of more than $1 trillion in losses.

Lowering interest rates and injecting more and more credit into the system simply makes each unit of it worth less. But since you cannot print "money", that is, economic surplus -- you can only print credit -- you have no capacity to actually generate economic growth by expanding credit directly.

Your only hope is that by making borrowing cheaper you will entice people to take those loans and produce with them. They must produce more than the loan costs, principal and interest. If those loans are instead consumed or used to pay entitlement handouts then you are further distorting both credit and cash markets by sending false signals as to actual demand that does not in fact exist.

Obama's Administration and the Federal Reserve have painted themselves into a corner. They have no choice but to go on funding deficit spending by government, because if it doesn't the panic that will result will cripple that same government's ability to cope. On the other hand, if it does that, the resultant inevitable rise in bond interest rates will eventually cripple the US economy too.

Elections have consequences.

Obama's Foreign Policy:

I don't think that the people in the White House have a firm grasp on 'the way forward'. 

In East Asia, China is recoiling from public humiliation and loss of face at the fact that the US has had free reign to spy on every single telephone call and e-mail. America routinely accuses China of electronic espionage, and while true, it is the US which can claim the spying crown. How does the US (and particularly Obama) mend fences?

In the Middle East, the Syrian red line made Obama look like a paper tiger. Now emboldened, Iran understands that they can complete their nuclear weapons without fear of reprisal from the Obama Administration. It's not a good place to be.

In Latin America, US Mexico relations are the worst they've been in twenty years, and the US is in decline in terms of prestige throughout South America. The Russians and Chinese are both establishing themselves in Brazil as the US flounders.

Europe, which wallowed in Obama's aura four years ago now view him as something of a dangerous goofball. Obama pulled the rug out from under Eastern Europe's missile defense and they don't feel a tingle in their leg.

Africa is a mess and al Qaeda is expanding across the Maghreb. The Benghazi Scandal, the Muslim Brotherhood in control of Egypt and increasing instability are only symptomatic of situations that are well beyond the control of Barack Obama.

The situation in Pakistan and the Asian Subcontinent is tense, the US is withdrawing from Afghanistan and in the former Soviet Republics (Uzbekistan, Turkmenistan, Tajikistan, etc.) Russia is moving to replace the US presence established under the Bush Administration.

Obama has so offended Great Britain that they now consider the US Administration something of a hostile force. 

Foreign policy is in a shambles.

Elections have consequences.


10 comments:

  1. PRetty damning numbers, and the rest is just as bad, if not worse! NOT looking forward to the next three years...

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    1. Hope and Change, my friend. "Fundamentally transforming America"

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  2. A person certainly didn't need much of a crystal ball to see this stuff coming. And correcting it is going to be painful for everyone. His announcement of a war on coal this week will simply accelerate the pain. Hard to believe a single individual can be so hateful towards his country.

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    1. He and his wife are both openly hostile to America and the mainstream media love him for it as do the progressives. I don't get it, but then again I'm not a communist at heart either.

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  3. War on medicine, 20% of the economy. War on conservatives, 50% of the citizenry. War on coal. War on babies. War on non-muslim religions by proxy. When will the destructive transformation stop?

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    1. There is the IRS War on conservatives, the EPS War on conservatives, the DOJ war on the Press, the War on Benghazi survivors, most of whom are STILL UNDER QUARANTINE, etc. You missed a few wars...

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  4. I don't think he cares, as long as he can control where his airplane goes and he gets to the golf course on time.

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    Replies
    1. Yes, and everyone kisses his ass.

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  5. the way of foreign polcy... http://www.dailymail.co.uk/news/article-2348479/EXCLUSIVE-Deputy-banned-suicide-bomb-endorsing-cleric-Yusuf-al-Qaradawi-White-House-meeting-National-Security-Council-staff.html

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    Replies
    1. Yes, it's an interesting situation where the president gets advice from Shaykh Abdallah bin Bayyah. Then again, not much can surprise me anymore.

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