Plenty of cults exist - every cult has its 'religious dogma', its idols, its 'prophets', its 'science', its 'proof' and its intolerant liturgy of demands. Cults everywhere: Corona, 'The Science' or Scientism, Islam, the State, the cult of Gender Fascism, Marxism, Darwin and Evolution, Globaloneywarming, Changing Climate, Abortion...
Tempus Fugit Memento Mori - Time Flies Remember Death
Markets have declined 20% since the coronation of the Dear Leader, the 'Great Man', or the Prophet Obamed. It is not a coincidence. The Dear Leader cannot blame Bush for his policy set - a group of initiatives which has sent the market down, and irregardless of phantom 'rallies' or surges, will continue to go lower. Simply put, the Prophet and his Commissars are doing almost everything wrong to stop the economic bleeding and propel markets upwards. This is not a surprise to anyone who bothered to investigate the self-proclaimed Messiah's history, his voting record; or his speeches pre-January 2009. He was and still is - a hard core socialist. His policy set is the exact opposite of what should be done.
A recent Wall Street Journal poll of 49 economists reveals the following:
"A majority of the 49 economists polled said they were dissatisfied with the administration's economic policies, according to the paper, a stark contrast to Obama's popularity ratings with the general public.
On average, the economists gave the president a grade of 59 out of 100, and although there was a broad range of marks, 42 percent of respondents rated Obama below 60, the paper said.
Geithner received an average grade of 51, while Federal Reserve Chairman Ben Bernanke scored better, with an average 71, the paper said."
http://www.reuters.com/article/politicsNews/idUSTRE52B16M20090312
Why the negativity around the 'Great Man' ? After all he is 'gonna' save the world [with his teleprompter speeches one assumes], or so the media endlessly recites. Well not really. Here is the reality of where we are with the economic crisis and why the Obamed has been such a disaster - a disaster by the way, long ago foretold by those who knew what type of man [or deity] Obamed truly was:
-This recession is already 15 months old, which matches the average historical length of recessions. In other words, we should be near the end - but we are not. This recession will last 1-2 years longer.
-Job losses are at the average levels of the last 3 post war recessions, but the prospects going forward are still bleak.
-The price of oil and other commodities have fallen by two-thirds since their 2008 peak. This can be viewed as a major tax cut and economic stimulus - yet no economic impetus has occurred.
-Most investment money is in cash or non-equity assets. This means that the world has literally trillions of dollars in un-used liquidity. If proper policies were in place, this money would be finding its way back into markets and business investments. With the US government running amok unsettling markets and nationalising firms and industries, capital is staying in cash.
-Central banks have printed and put into the financial system $8 Trillion new dollars. This money will eventually find its way into the economy - if conditions and return on investments are not destroyed by government meddling. But this policy will breed inflation and devalue the US dollar. These negative factors will help to cripple the US economy.
-Housing prices in the US [and indeed many other countries] have fallen 27% from their 2007 peak, or some two-thirds of the way back to their historical trend. There is probably still another 20% decline to go, but again, if government meddling and destructive policies were stopped, the housing market would bottom out faster and stabilise sooner.
-Credit spreads - so vital for bank lending - are still high but far off their 2008 peak levels. This means that lending is getting back to normal - albeit slowly as one would expect. But given the current governmental incompetence regarding the financial system, banks are quite reluctant to lend - even to each other. The threat of government nationalisation of the finance industry, either total or partial is still very real.
There are 4 main problems which the Prophet Obamed and his rabid caucus of statists and power mongers have refused to deal with and which are making matters worse:
1. Socialising the financial sector. This is completely unnecessary. Close to $500 billion has been given to the banks through a welfare/tax transfer. Many billions more will be given to the banks - all of it wasted. Banks need to restructure and erase their bad debts as soon as possible. Giving them welfare makes this impossible. As long as the banking sector is unstable, markets will trend downwards.
2. Budget. The Prophet will spend upwards of $2 Trillion extra dollars in 2009 and early 2010. Much of this spending has nothing to do with 'stimulating' the economy. It is simply an expansion of government and the socialisation of banking, health care, pharma and other sectors along with the ridiculous idea of 'Cap and Trade' or limiting CO2 emissions through regulation and taxation.
And yet even more spending will be announced.
3. Tax increases. The Prophet will raise US taxes by a collective $1 Trillion and punish the holders of capital and small businesses - named of course as the so-called 'rich' or those whose earnings are above $250.000 per year. Raising tax rates and making war on capital owners will result in fewer investments and fewer jobs.
4. Endless printing of money. Eventually inflation will occur and the US dollar will be deflated. Debt accumulation and too many dollars chasing too few US denominated assets portends a future economic crisis 2 to 5 years out. You can't inflate, spend or print your way out of recessions. That is simply an economic fact.
It is easy to see why the Prophet's standing with economists is declining. At some point his public popularity will also suffer. But long before then the damage will be done. The US will be under the shackles of a doubling of its national debt; socialised markets; future inflationary pressures; declining gross national income; unstable banking firms; and an over-regulated and still corrupt government-business relationship. None of these factors will aid the US to restore its economy nor its destiny.
But hey - just blame Bush and all hail the Prophet Obamed !
