Finally, Obama has laid a trap for himself. Just as the economy is coming out of its recession -- in 2010 and 2011 -- and he begins to run for reelection, he is going to face massive inflation. The money supply has more than tripled since October of 2008 and is going up each week as the Fed buys Treasury bills and other securities to "monetize the debt" (i.e., give other people money so they can lend it back to the government and charge it interest for doing so). With each new infusion of cash, the problem of avoiding inflation becomes particularly severe. Obama could well lose the elections of 2012 because of the inflation his deficit has created.To read the whole article click here.
Of course, we all know that the only way to put the inflation virus back in the test tube is to trigger a new recession, this time caused by massive increases in interest rates, as Fed Chairman Paul Volcker did in 1979. If the recession doesn't doom Obama to a single term, the inflation will. And if the inflation doesn't get him, the subsequent recession will.
The deeper he gets into his term, the more it is apparent that he threw it all away when he first took office and demanded over $1 trillion in stimulus and supplemental appropriation spending. He was doomed to lose the game right after he received the first kickoff.
Thursday, July 16, 2009
Dick Morris: Obama is a one-term President
You know Dick Morris, right? He was the brains behind Bill Clinton. Got him elected several times as governor of Arkansas and then twice as President. Dick Morris is a pure political animal. He eats, sleeps, breathes, and speaks politics. He may not always be right, but he is always worth listening to. Here's what he is saying about Obama's Presidency: