barack Obama; deficits; recession; interest rates; stimulus

The US Mint will begin to print more and more $2 bills as a result of inflation inside of the next few years. This will put us on the 1, 2, 5 system that the Euro is on. A superficial, yet salient symbol of the further Europeanization of America.

After 15 years as a GOP Executive Committeeman, believe me when I tell you I know the seriousness of the suggestion I am about to make to RNC Chairman Steele.  I think Chairman Steele should start proceedings to ask Senators Collins, Specter, and Snowe, by formal resolution, to leave the party or be declared, personae non gratae, for the harm they have done to the country, to its people and to the party.

It is essential that the Republican Party clearly articulate to the electorate the country is now headed down the wrong path and that the right path is to avoid huge, strangling deficits as the fastest way to full economic recovery, the foundation upon which the safety and security of this nation resides.

ex animo

davidfarrar

"Blackhedd" at RedState has an interesting take on the future with the Obama stimulus package

His theory is that while the program may have the temporary political benefit of propping up short term demand and limiting the blizzard of pink slips, it fails to address the public's loss of consumer confidence, their battered balance sheets which must be rebuilt, and of course, crowds out other more productive investment uses of money.

Thinking ahead to '11 and '12, let us presume this program fails to live up to expectations and the Blackhedd's essential thesis---that nothing will stop an adjustment in home prices and nothing will allow a recovery to occur without it.  

At that point, the federal government will be out of economic ammunition. They simply won't be able to find enough shovels even if they find the money. Which is going to be problematic since it's unlikely foreigners will lend us money at below historic rates forever. With all the new added debt, when borrowing costs rise, that will greatly increase the deficit then.

Not to mention that it will be impossible to move the inventory of unsold cars and unsold homes when interest rates rise. Once the Democrats understood this.  But now the new conventional wisdom is "the free market failed". And the solution is of course, to tie on some ankle weights to it.

The Fed won;t be able to push down interest rates because of years of excess borrowing and if continually escalating budget deficits aren;t causing the economic engine to turn over on it's own, are you going to double down on bigger deficits? As I said, they'll be out of bullets (as both monetary and fiscal policy will be fully expended)  and have to let the business cycle run it's course then.  Or blame the rich and go the whole hog income redistribution route so that 51% of the voters got enough largesse to vote them in again.

Look for a brief period of enthusiasm over Obama, then some grudging understanding the economic problem is not going away, and then, perhaps right on the cusp of the midterms, but certaintly before his re-elect, a realization that the nation's problems are not getting solved with Obama's red ink.

Indeed, we could see some "positive growth" in '10 only to be followed by this treat in '11

http://www.investopedia.com/terms/d/doublediprecession.asp

Ruffini is dead on. We will want to have no part of this in future years.