Tuesday, August 4, 2009

"Won't Cost the Middle Class a Dime"

That's right. Obama is not kidding. His plans will cost the middle class a fortune, not a dime. Even if "cap and trade" and "health care" go down in Congress, middle class marginal tax rates will soar above fifty percent by the end of the first (and hopefully last) Obama Administration. The alternative is that the US will default on its massively growing debt. This year's deficit, in the first year of the Obama madness, is moving toward $ 2 Trillion. American history has never seen a deficit one-fourth this size. This increases the total marketable debt outstanding by over twenty percent in a single year. (They plan to break that record in later years with their health care initiative). The Obama Administration is completely out of control.

The recklessness and cupidity of this Administration is without precedent in American history. The numbers are pretty obvious and available to any concerned citizen. Every week, the US Treasury has to go the market place and sell an increasingly astounding total of treasury securities. This alone will take available credit away from any potential economic expansion. The Obama regulatory regime is doing the rest. No bank wants to loan anyone money and no business, except those in desperate straights, wants to borrow. Any bank that tries to increase lending will be immediately slapped down by the Obama regulatory regime. (It is gradually dawning on many that this Administration is not hoping for an economic recovery...their main concern is economic power and control). No rational business plans to hire any employees. Again, apparently part of the Obama plan.

What Obama should have said is: "When I get through, the middle class won't have a dime left." He is certainly implementing that plan.

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