Hey Barack, About that “Recovery”

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Let’s recall the 2008 Obama campaign and his early years as President, Mr. Obama and the Democratic Party as a whole thought that we should be Europe.  The President has been touting his “recovery” for the last five years without addressing that we’re operating in a zero interest rate environment both in the US and worldwide, that fewer people are working today than when he took office and the unemployment numbers are down only because people have stopped looking for jobs.  The President’s last two years in office are shaping up to give us unprecedented regulatory pressure that will raise the cost of electricity and the cost of having employees.

The US is likely looking at reduced growth and a very bad business climate and Europe is leading the way on that front.

A new Bloomberg Global Poll of international investors finds deflation fears rising and optimism about the world economy at the worst levels in two years.

Nearly two-thirds of investors said the euro zone’s economy is growing worse. The poll also found that 89% of those asked believe deflation is a larger threat than inflation in the year ahead.

The dour economic outlook extended to the global economy also, as 38% of respondents believe the world economy is getting worse. That figure is more than twice the number who responded the same way in July.

The Bloomberg study also found deflation or disinflation fears rising in the United States. Indeed, 47% of investors said deflation was a larger risk than inflation in the year ahead, a 16% jump since July.

Our stock market is rising, not because of strong business fundamentals, but because the Federal Reserve’s policy of dumping a trillion dollars a year into the markets in the form of “Quantitative Easing” has destroyed the investment markets with zero interest rates.  Pumping the Dow and NASDAQ is the only place a return can be found, and zero interest rates can’t continue forever, even though the Europeans are actually talking about doing just that.  When QE stops and interest rates rise, the market will fall and we will start paying the real penalty for the “Obama years” because the cost for the federal government – you – to continue to borrow and to pay what will be a $20 trillion dollar national debt will explode.

Hang on, it’s going to be a rough ride.

About Author

Michael Becker is a long time activist and a businessman. He's been involved in the pro-life movement since 1976 and has been counseling addicts and ministering to prison inmates since 1980. Becker is a Curmudgeon. He has decades of experience as an operations executive in turnaround situations and in mortgage banking. He blogs regularly at The Right Curmudgeon, The Minority Report, Wizbang, Unified Patriots and Joe for America. He lives in Phoenix and is almost always armed.

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