Our Changing Globe

Archive for the ‘US banking’ Category

An “Act of War”: Obama’s Destruction of the U.S. Energy Industry …

Kevin Mooney tabulates the damage that the Obama administration is doing to the Gulf economy, and to the energy industry generally: Ten oil rigs have left the Gulf of Mexico since the Obama Administration imposed a …

Publish Date: 08/23/2011 22:10

http://mayrantandrave.com/2011/08/23/an-act-of-war-obamas-destruction-of-the-u-s-energy-industry/

Bob Chapman: Obama's Deliberate Destruction of America …

1 comment to Bob Chapman: Obama's Deliberate Destruction of America. David. October 1, 2011 at 9:41 am · Reply. I am going to have to agree with Chapman. I think the destruction of America has been a deliberate attempt. …

Publish Date: 10/01/2011 6:51

http://sgtreport.com/2011/09/bob-chapman-obamas-deliberate-destruction-of-america/

As promised, the Obama administration fundamentally transformed America!

America is now in serious decline.

Income is lower.

Unemployment is higher.

Jobs are fewer.

Government is much larger.

Federal spending is way up.

America’s global economic status is way down.

The world-view of our country and our economy is in the pits!

And perhaps worse still, hardly anyone sees any sign of economic recovery or improvement.

Let’s look at the Labor Department data on the number of Americans 16 and older unemployed for 52 weeks or more during the five most recent recessions:

1976   750,000

1982 1,600,000

1994 1,200,000

2004 1,100,000

2010 4,300,000

Total government spending averaged about 19% of gross domestic product from 1996 to 2007 and rose to about 21% in 2008 but in the three years of the Obama administration it soared to 25%.

Why Did It Happen?

The Obama administration is focused on its increasing control of health care, propping up labor unions, increasing taxes, and expanding the scope and size of government.

In the first 70 years of the 20th century, American and European economic growth increased together, but then the Europeans shifted toward socialism, and their growth lagged.

And America is rapidly moving toward the European model, and we are starting to see its detrimental impact.

President Obama’s recent spending and tax policy proposals would only make things worse.

He wants to increase the federal deficit by increasing spending and providing some targeted, but short term, payroll tax cuts.

And this is at a time when we need to bring the federal deficit down and fast!

Obama’s Plan

Although Obama’s plan would actually increase the deficit by $447 billion over the next year or two, Obama says his increase will be "paid for", and to do it, he’s proposed a series of permanent tax increases.

But America’s economy is already facing two significant tax increases.

The first will be the end of the Bush tax cuts in December 2012.

And because of ObamaCare, starting in 2013 taxpayers making more than $200,000 will pay an additional 3.8% on investment and interest income.

The Near End Of Giving To Charity?

The new Obama proposals include reduced itemized deductions allowed for any individuals earning more than $200,000 a year ($250,000 for married couples) and included in that proposal, is a government plan that would take some of the money that would have gone to charity and instead funnel it to federal government spending.

The Effect Of Tax Increases

Tax rate increases more often than not bring in reduced tax dollars!

The Cato Institute’s Alan Reynolds demonstrated in his recent Wall Street Journal piece that the 28% tax rate on long-term capital gains brought in $36.9 billion a year from 1987 to 1997, while the current 15% rate in 2004 to 2007 brought in $96.8 billion per year.

Did Obama Change His Tune?

Last December when the president extended the Bush tax cuts, he acknowledged that tax hikes both slow economic growth and deter job creation, something he seems to have forgotten!

The higher taxes on energy producers are particularly discouraging, given the importance of energy to our economic recovery and the administration’s continued clampdown on energy production.

Can It Get Any Worse?

Sadly, "Yes".

In another measure that is counterproductive to economic growth, the Obama plan includes extending benefits for the long-term unemployed, even though studies show that long term employment benefits raise the unemployment rate from 0.5 to 1.5 percentage points.

President Obama has said that:

"Everything in [his new] bill will be paid for", and that it "will not add to the deficit".

But it will be paid for in the future, and the president is effectively saying that we should add some more to the deficit now in return for promises of future spending.

The Bottom Line

None of the administration’s programs bode well for the good or for the future of America or its people.

American Enterprise Institute’s Director of economic policy Kevin Hassett said earlier this month:

"The Obama administration’s position throughout this recovery has been that the U.S. can have the highest corporate tax on earth, a big regulatory crackdown, and a vast expansion of labor-union power and still expect a positive jobs story because of cash-for-clunkers and green jobs. This jobs report indicates how much damage that view has done".

In the end, the newest Obama proposals are proof that his recent centrist posturing was just that, posturing.

The new proposals are a continuation of the old Obama New Party (read communist) policies, and they are policies that sadly have extended the recession, stifled economic growth, and will for some years to come, weaken America!

At U.N., Obama faces problems on larger stage

By Laura MacInnis WASHINGTON (Reuters) – President Barack Obama, grappling with a poor economy and slumping approval ratings, faces problems on a larger stage this week at the United Nations, with challenges to his …

Publish Date: 09/19/2011 8:35

http://www.huffingtonpost.com/2011/09/19/at-un-obama-faces-prob_n_969141.html

RealClearPolitics – Obama: Failing the Lincoln Test

Obama: Failing the Lincoln Test. By Michael Gerson. WASHINGTON — During his recent speech to Congress, President Obama gave Republicans this ideological glove to the face: "We all remember Abraham Lincoln as the …

Publish Date: 09/13/2011 3:00

http://www.realclearpolitics.com/articles/2011/09/13/obama_failing_the_lincoln_test_111312.html

What President Obama Inherited

Obama inherited a deep recession and financial crisis resulting from problems that had been building for years and those responsible include:

Borrowers and lenders on Wall Street and Main Street.
The Federal Reserve.
Regulatory agencies.
Ratings agencies.
Different presidents and Congress.

What Obama Will Bequeath?

Huge deficits.
Massive interest payments which could ultimately destroy the Republic.
Higher inflation.
A weaker dollar.
Pressure for higher taxes.

What Exactly Did Obama Enact?

An $825 billion stimulus package.
The Public-Private Investment Partnership to buy toxic assets from the banks.
Cash for clunkers.
The home-buyers credit.
The auto bailouts.
Five versions of foreclosure relief.
Numerous lifelines to Fannie Mae and Freddie Mac.
Financial regulation and health-care reform.
Energy subsidies.

Which Succeeded?

The auto bailouts?!

Even though a rapid private bankruptcy was preferable and GM and Chrysler are not yet de-nationalized successes, we can I believe, mark this up as a success.

Which Failed?

The stimulus bill cost an astounding $280,000 per job which is over five times median pay, as reckoned by the administration’s inflated estimates of jobs "created or saved", and much more using more realistic estimates.
Cash for clunkers cost $3 billion, just to shift car sales forward a few months.
The Public-Private Investment Partnership, despite cheap federal loans, generated 3% of the $1 trillion claimed, and toxic assets are still hindering some financial institutions.
The Dodd-Frank financial reform law institutionalized "too big to fail" amid greater concentration of banking assets and mortgages in Fannie and Freddie.
The foreclosure relief program permanently modified only a small percentage of the four million mortgages the president promised.

The economic records set on Mr. Obama’s watch are historic and no corporate CEO could survive such a clear history of failure.

Under The Obama Administration Watch:

The US experienced the first downgrade of sovereign U.S. debt in American history.
Relative to GDP, it now has the highest federal spending in U.S. history with the exception of the peak years of World War II
The highest federal debt since just after World War II.
The fraction of the population working is the lowest since 1983 and long-term unemployment is by far the highest since the Great Depression.
Job growth during the first two years of recovery after a severe recession is the slowest in postwar history.
Home-ownership rate is the lowest since 1965 and foreclosures are at a post-Depression high.
The share of Americans paying income taxes is the lowest in the modern era, while dependency on government is the highest in U.S. history.

Can Or Will Obama Recover From The Catastrophes?

Based on his present ratings in the polls and the fact that the economy has little or no chance of improving before the elections, one would have to say, "No he will not recover!".

And to make a comeback even less likely is the likelihood that the Obama administration will try to deliver more of the same things that failed.

Just fourteen years ago Obama was an active member of the New Party (read Communist) and he didn’t quit; it got shut down by the courts. Meaning that there is no reasonable chance that he will switch to anything like a free market economy, soon or ever!