The Next Big Benefit From Obama’s Economic Policy

November/09/2010 18:18PM
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Not satisfied with increasing national debt with failed policies, Obama has yet another benefit headed our way. The failed stimulus bill that went largely to bail out cities and states, added billions to our debt, and met with rejection at the polls, was step one.

Obamacare will add more deficits and debt. He calls it the cornerstone of his first two years. There will be true hearings on Obamacare in the new electorate. The cost misrepresentations will be hard to cover.

Now he is going to inject another $600 billion into the economy by printing money to buy his own treasury bonds.

He is being lectured to by the members of the G-20 before the meeting his week. China, Japan, Germany, and Russia have said the US must get it’s spending under control.

While Wall Street, which contributed millions to his primary contest with Hillary and more to his election as president, has prospered, Main Street remains in very bad straits. Unemployment still hovers around 10%. Banks, even those he made richer in 2009 and 2010, are not lending to small business. Business and households are hoarding cash and repairing balance sheets.

States like California, Illinois, and New York hover on the brink of bankruptcy. Cities watch as tax revenues dry up.

What is the worst thing that could happen now to this house of cards? Inflation, in the form of higher food prices. It’s coming. It’s already here. Commodities prices are rising fast. When the cost of food commodities go up, there is a lag before they hit the grocery shelves. They will hit and hit hard.

So, how does Washington deal with this? Households with one or more heads unemployed and living on unemployment can’t afford higher food prices. Households living in a house that will be foreclosed can’t afford higher food prices. How will these households deal with this new problem?

Destroying the dollar, driving up the price of gold, cultivating a good relationship with the Chinese over their takeover of our manufacturing business, and printing more money doesn’t seem like top priorities for dealing with the coming inflation.

Who does the president blame this on? Bush, the farmers, the hungry world, the weather, the Republicans, or obese Americans who eat too much?

Someone needs to be set up for the fall. It won’t be Obama’s failed economic policies.

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