The only reason the stock market has reached record highs in the era of Barack Obama is the Federal Reserve. The Federal Reserve has been dumping a trillion dollars a year into the the stock market and mortgage backed securities to prop up the DOW and NASDAQ and the housing industry for the past five years.
No sooner had the president charged that those who claimed the economy is in trouble were “peddling fiction” than U.S. stocks posted their worst ten-day start to a year in history. Walmart announced it was closing 154 stores in the U.S. putting 10,000 U.S. jobs on the block. (It also was closing over one hundred of its stores in Brazil.) Macy’s announced it was closing 36 stores and 27 Kmart and Sears stores were also to be shuttered. True, some of this reflected the change in shopping habits with more consumers buying merchandise online, but from the barrage of emails I receive daily from retailers online cutting prices, I think it’s likely that the entire tranche — retail sales — suffered mightily last year, and I expect to see that big dip reflected in their fourth quarter reports. Consumers simply are running out of money to buy things.
And right now, if it wasn’t for the fact that low oil prices – because we’ve been drilling like crazy on private land for the last five years – is putting billions into consumers’ pockets we’d be in a depression.
We’re in what I call the Democrats Dilemma. Here’s the outline of that.
In economic terms, we are in the worst possible situation: politicians and bureaucrats with no respect for reality support programs which depend on an ever increasing supply of other peoples’ money at a time when there isn’t such money to be had because, in large part, they are also supporting programs which ignore supply/demand exigencies and choke commercial, industrial, and agricultural activity.
It’s also the Dilemma of the Republican Establishment. Paul Ryan just agreed to fund Barack Obama’s wish list and added trillions to spending over the next ten years. Thanks Paul, hell of a job.
The article at The American Thinker details problems caused by our political establishment that will utterly destroy the American economy and hurt those they claim they want to help the most. It’s worth a read, but the essence is this:
Math is so hard for progressives. I expect any day now some Democrat in Congress will introduce a bill repealing it.
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