Quote:Both the money supply and federal spending have increased at breathtaking rates over the past year, unprecedented in peacetime. The policy decisions made by the Federal Reserve Board and Congress virtually assure we will enter a period of 1970s-like stagflation.

I will continue my comparison of Barry O. to Jimmy C. I said one year before Barry took office that his policies = Jimmy's. I predicted double digit unemployment, that's here. Double digit inflation likely by early next year. Double digit interest rates, depending on how Barry decides to fund his spending spree, issuing more debt high interest rates will be hear mid 2010, monetize the debt (print more money) inflation will be much higher much quicker and high interest rates may wait to 2011.

Quote:The first thing policymakers need to do is to stop doing harm. The Fed needs to immediately raise the federal funds target interest rate and slow money growth to normal levels. Congress needs to return federal spending to a more normal 19 percent to 23 percent of gross domestic product. It should reduce the U.S. corporate tax rate, currently the second-highest rate among industrialized nations, and, if possible, reform the tax system to promote work, savings and investment. Finally, it needs to control rather than exacerbate federal entitlement spending.

Instead, the Obama administration seems bent on doubling down and making a bad situation even worse with massive increases in business and individual taxes, nationalizing or taking control of major industries (including automakers, banks, insurance and health care), hidden but huge energy-cost increases in pursuit of the chimera of global warming and ever greater entitlement spending. The Congressional Budget Office recently estimated the Democrats' health reform plan would increase federal spending a further $1.3 trillion over 10 years.

Stagflation is baked in the cake. The question remains whether policymakers take the necessary steps to shorten the period of stagflation.

Why stagflation is coming

the Stimulus spending may mask part of the problem and help him out just in time for election. Most of that money is spent yet, basically all it is doing is creating pie in the sky bogus 'jobs' which are financed by the Government borrowing money, once the Credit Card runs out the job will be gone, except in the off chance they actually create something and a real market for the job during the interim.

Stagflation is likely, Obama is a blunder but with our media and current culture, and the fact he's a cultural force unlike Carter, he could be a 2-term blunder.

(06-29-2009 06:00 PM)GGniner Wrote:  ... Obama is a blunder but with our media and current culture, and the fact he's a cultural force unlike Carter, he could be a 2-term blunder.

Not the kind of thing I want to hear, but I am sad to say I agree with you. The question is after 2 terms, would there be anything left to save.

The economy will recover right around the time the meat of the campaign season begins, and he will ride the wave to a 2nd term.

Numerous posters on this board will experience their heads exploding, and/or begin cutting themselves...

Good times all around.

2010 is the critical year, not 2012. Republicans must take back enough seats in congress to eliminate the rubber stamp this president and his party have been given. There are no checks and balances to his power right now and there needs to be.

He'll be like Clinton in 96, riding a recovering economy he really played no role in saving.

Regardless of the outcome....Government will continue its march onward....larger and more intrusive. It makes zero difference who is the POTUS...They all favor big government.

(06-29-2009 06:29 PM)Artifice Wrote:  The economy will recover right around the time the meat of the campaign season begins, and he will ride the wave to a 2nd term.

Numerous posters on this board will experience their heads exploding, and/or begin cutting themselves...

Good times all around.

I'll venture an educated guess the US economy will look a lot like California's in 2011. Mountains of debt, no way to pay for it possibly on the verge of bankruptcy, is the US economy too big to fail? Who will provide our bailout?

(06-29-2009 07:23 PM)Fo Shizzle Wrote:  Regardless of the outcome....Government will continue its march onward....larger and more intrusive. It makes zero difference who is the POTUS...They all favor big government.

+1

According to Real Clear Politics Polls.

Direction of Country

Wrong Track 51.2

Right Tract 42.0

OK, if Unemployment goes up over 12% (very possible) We have a major foreign crisis (fairly likely), and Republicans put a muzzle on the right to life and social conservative fringe, and focus on what Obamagog is doing to the Nation in terms of economy and his Socialism, I say Republicans will gain 35 seats in the House and 6 in the Senate.

This sets Obama up to crash and burn in 2010-2012.

http://www.realclearpolitics.com/epolls/...y-902.html

(06-29-2009 06:42 PM)Ninerfan1 Wrote:  2010 is the critical year, not 2012. Republicans must take back enough seats in congress to eliminate the rubber stamp this president and his party have been given. There are no checks and balances to his power right now and there needs to be.

:ncaabbs: :ncaabbs: :ncaabbs:

(06-29-2009 07:26 PM)THE NC Herd Fan Wrote:  

(06-29-2009 06:29 PM)Artifice Wrote:  The economy will recover right around the time the meat of the campaign season begins, and he will ride the wave to a 2nd term.

Numerous posters on this board will experience their heads exploding, and/or begin cutting themselves...

Good times all around.

I'll venture an educated guess the US economy will look a lot like California's in 2011. Mountains of debt, no way to pay for it possibly on the verge of bankruptcy, is the US economy too big to fail? Who will provide our bailout?

I'm going with your assessment.

cb4029, Fo Shizzle, Artifice all come out of the same jar of Pickled Pigs Feet.

Ninerfan1, Rebel, NCH Fan, WMD, snm1256, GG, see the only logical outcome.

Sounds like stagflation is the way to go if your in my situation. Own property that's worth less than you paid for it, and you have fixed costs with low interest rates. It sucks if you have saved a lot of money, and are trying to retire though.

"Inflating asset prices in support of Wall Street, the banks and consumers who are upside-down on their mortgages is, presumably, a major, if unstated, goal of Fed policy." :clap2:

To do nothing, or raise interest rates would cause deflation, which would further weaken a falling economy.

(06-29-2009 11:50 PM)SumOfAllFears Wrote:  cb4029, Fo Shizzle, Artifice all come out of the same jar of Pickled Pigs Feet.

Ninerfan1, Rebel, NCH Fan, WMD, snm1256, GG, see the only logical outcome.

Logic would dictate that to really solve a problem you would strike at the root of it....In this case that would be federal government. Replacing leadership has NEVER reduced the size of government in any tangible fashion.

I fully agree that BO is bad guy.....I just content that they ALL are.

You are under the assumption that just replacing the leader with "my guy" will actually do anything slow down this behemoth blood sucking leech of a government. It won't....It can't. Pickle that.

(06-29-2009 09:20 PM)smn1256 Wrote:  

(06-29-2009 06:42 PM)Ninerfan1 Wrote:  2010 is the critical year, not 2012. Republicans must take back enough seats in congress to eliminate the rubber stamp this president and his party have been given. There are no checks and balances to his power right now and there needs to be.

:ncaabbs: :ncaabbs: :ncaabbs:

And there have been checks and balances?....No...it an illusion. Those in power do whatever the hell they want to...regardless of gang affiliation.