"First of all, when I hear that from folks who presided over a doubling of the national debt, then I just want them to not engage in some revisionist history. I inherited the deficit that we have right now, and the economic crisis that we have right now." (Barack Obama, 2/9/09 press conference)When Obama blamed the other guy, the media apparently chose not to notice that the other guy was also Obama.
Congress controls the purse strings.
Senator Obama voted for spending:
- $700 Billion Wall Street bailout 2008 (HR1424)
- $16 TRILLION 2008-2013 (S CON RES 70)
Majorities voting FOR deficit-deepening bailout:
- 81% Senate Democrats (including Obama's "Yes, we can!")
- 73% House Democrats
- 69% Senate Republicans
- 54% House Republicans
Obama forgot to tell us that the Newt Gingrich-started budget surpluses disappeared when Obama's Democratic party took control of the Senate in 2001.
Obama forgot to tell us that (as a percent of GDP):
- Deficits increased after Democrats took the Senate in 2001.
- Deficits decreased after Republicans took the Senate in 2003.
- Deficits exploded after Democrats took both the Senate and House in 2007.
Republicans Zigged. Democrats Zagged.
Obama the president must be awfully upset at his evil twin Obama the senator who allowed the then biggest deficit in U.S. history.
Evil-Twin Captain Kirk says,
“I…AM…CHANGE YOU CAN BELIEVE IN!”
“I…AM…CHANGE YOU CAN BELIEVE IN!”
When not doing the seemingly impossible of making Comrade Bush look frugal in comparison, Obama made the following comments in a 2/9/09 press conference which show that, years into the economic problems, he remains clueless and 180-degrees backwards:
"We stand to lose about $1 trillion worth of demand this year and another trillion next year."No, we stand to SAVE $1 Trillion per year by not buying things we do not need (that is what lower demand means)--but Obama apparently hates savers.
"And what that means is you've got this gaping hole in the economy."No, we have a gargantuan, excess bubble that has deflated only slightly and still needs to be lanced like a fetid boil--but Obama cannot tell the difference between a bubble and a hole in the ground.
"The auditorium is completely broken down; they can't use it. So why wouldn't we want to build state-of-the-art schools . . . ?"Because we do not have the money (that is what deficit means), we are already $11 Trillion in debt, and America does not need yet another Roman colosseum (school auditorium).
"I don't think it's accurate to say that consumer spending got us into this mess. What got us into this mess initially were banks taking exorbitant, wild risks with other people's monies based on shaky assets. And because of the enormous leverage . . . That led to a contraction of credit, which in turn meant businesses couldn't make payroll or make inventories, which meant that everybody became uncertain about the future of the economy, so people started making decisions accordingly -- reducing investment, initiated layoffs -- which in turn made things worse. . . . Our immediate job is to stop the downward spiral, and that means putting money into consumers' pockets, it means loosening up credit."No, loose credit is the problem (not the solution)--and the risky, shaky assets WERE the consumer spending (such as going into debt for RVs--RECREATIONAL vehicles) and unviable businesses (such as oversaturation of gourmet coffee shops that only cannibalize each other)--so we need to LET Joe and Jane unwind their unsustainable debt spending to make things better (spiral down, not lever up again) --but Obama is blocking Joe's and Jane's solutions and perpetuating the plague of loose credit that started the mess.
"We saw this happen in Japan in the 1990s, where they did not act boldly and swiftly enough, and as a consequence they suffered what was called the "lost decade" where essentially for the entire '90s they did not see any significant economic growth."No, they did not see economic growth BECAUSE the Japanese government acted TOO boldy in bailouts and stimulus, which trapped resources in zombie companies, wasted resources in malinvestments, and consumed the very resources needed for recovery (crowding out), thereby bleeding and starving the productive private sector--and PREVENTING the recovery.
Obama's "normalizing the credit markets" is trying to normalize an unsustainable bubble. Who knows how many great discoveries or medical cures we already lost because the government is monopolizing the economy for political purposes?