Intermarkets' Privacy Policy
Support


Donate to Ace of Spades HQ!


Contact
Ace:
aceofspadeshq at gee mail.com
Buck:
buck.throckmorton at protonmail.com
CBD:
cbd at cutjibnewsletter.com
joe mannix:
mannix2024 at proton.me
MisHum:
petmorons at gee mail.com
J.J. Sefton:
sefton at cutjibnewsletter.com


Recent Entries
Absent Friends
Bandersnatch 2024
GnuBreed 2024
Captain Hate 2023
moon_over_vermont 2023
westminsterdogshow 2023
Ann Wilson(Empire1) 2022
Dave In Texas 2022
Jesse in D.C. 2022
OregonMuse 2022
redc1c4 2021
Tami 2021
Chavez the Hugo 2020
Ibguy 2020
Rickl 2019
Joffen 2014
AoSHQ Writers Group
A site for members of the Horde to post their stories seeking beta readers, editing help, brainstorming, and story ideas. Also to share links to potential publishing outlets, writing help sites, and videos posting tips to get published. Contact OrangeEnt for info:
maildrop62 at proton dot me
Cutting The Cord And Email Security
Moron Meet-Ups






















« Steny Hoyer Siding With Republicans, Against Pelosi, on Ethics Investigations?
Update: Just "Cover" for Democrats
| Main | Humpday Ignorant And Gratuitous Scandi Bashing »
June 03, 2009

Dick Morris on Obama's Coming Implosion

He talks a lot about this. I think he's right.

He starts by noting the (confusingly worded) Rasmussen poll which seems to ask who is primarily at fault for the recession. As both Bush and Obama now have four months of it on their records, it's still easy to call it Bush's recession.

But it will become increasingly obvious that the large deficit Obama has incurred while pursuing his cure for the recession is, on its own, causing more problems than it solves. As high interest rates and, most likely, inflation, begin to set in -- with no relief in unemployment -- it will be obvious that Obamanomics isn't working and is, in fact, aggravating the economic trouble.

Obama, recognizing the danger, has recently begun to speak out -- without even cracking a guilty smile -- against the huge budget deficit he created. He is trying to blame the deficit, too, on Bush. But voters will not overlook the huge spending sprees of January and February, when Obama quadrupled the 2009 deficit. They will come to see that spending as a huge mistake and will shift their blame to the new president who proposed it.

Obama now faces a choice of poisons.

He can leave taxes as they are and take the poison of high interest rates, rapid inflation and a new recession, all caused by the massive borrowing he has forced on the Treasury. If the Treasury cannot sell enough bonds at a reasonable interest rate, it will, of course "monetize the deficit" -- economics-speak for printing money so that there will be enough to buy the Treasury debt at moderate interest rates. But the process of so vastly expanding the money supply (or even just leaving the current expansion in place without trying to soak up the extra money) will cause its own runaway inflation.

Or Obama can break his pledge and raise taxes on everybody. His soak-the-rich approach will not be enough to cover the deficit. Especially when one factors in his healthcare proposals, big tax increases on the middle class become an increasing likelihood. And when we consider his cap-and-trade legislation, huge increases in utility rates also loom.

Either poison will make it clear that the economy is suffering from the medicine Obama administered, rather than the original disease that started under Bush.

He ends by talking about the possible shapes of the recession -- U-shaped (a drop, and then a recovery), L-shaped (a drop, and then a long period of depressed activity and no recovery) or W-shaped (drop, start to recover, drop again).

Most people (not experts) expect the U-shaped recession, and anticipate a relatively quick recovery. That's why (with a big assist from the media) they actually give Obama higher marks on the economy during a recession than they did Bush during an expansion.

But when it's revealed that this is not like a typical recession, largely because Obama has pursued anti-recovery policies during it, the tide will turn.

Of Course... If Obama's medicine somehow works (or is perceived as "working") then, as Dick Morris says, sell the phones and close down the office, because then it's all over, and we "all become liberals."

Well, we won't. But enough people will that we'll be irrelevant.


digg this
posted by Ace at 02:01 PM

| Access Comments




Recent Comments
Lou Monte: "Dominic The Donkey is my perennial favorite. ..."

Boron Cobbie - women can't be incels, it's impossible: "This insurance company ceo murderer makes me think ..."

Don Black: "Obama's 3rd term ends soon, there's no reason to h ..."

J.J. Sefton: " My affection for Christmas music goes back to ..."

Northernlurker , Maple Syrup MAGA : "This insurance company ceo murderer makes me think ..."

18-1: "[i]Re-Inflation Continues - November Consumer Pric ..."

SMOD: "180 Dead: Haitian Warlord Orders Massacre Of Elder ..."

Boron Cobbie - women can't be incels, it's impossible: "I heard the other day that the song, made in 79, h ..."

Sponge - F*ck Cancer: "[i]Worst Christmas song... Do they Know It's Chris ..."

Inogame: "Good morning, J.J. Good morning, Horde. ..."

davidt: "When someone mentions a bad Christmas song it plan ..."

Sponge - F*ck Cancer: "[i]It's Christmas time in Hollis, Queens Mom's co ..."

Recent Entries
Search


Polls! Polls! Polls!
Frequently Asked Questions
The (Almost) Complete Paul Anka Integrity Kick
Top Top Tens
Greatest Hitjobs

The Ace of Spades HQ Sex-for-Money Skankathon
A D&D Guide to the Democratic Candidates
Margaret Cho: Just Not Funny
More Margaret Cho Abuse
Margaret Cho: Still Not Funny
Iraqi Prisoner Claims He Was Raped... By Woman
Wonkette Announces "Morning Zoo" Format
John Kerry's "Plan" Causes Surrender of Moqtada al-Sadr's Militia
World Muslim Leaders Apologize for Nick Berg's Beheading
Michael Moore Goes on Lunchtime Manhattan Death-Spree
Milestone: Oliver Willis Posts 400th "Fake News Article" Referencing Britney Spears
Liberal Economists Rue a "New Decade of Greed"
Artificial Insouciance: Maureen Dowd's Word Processor Revolts Against Her Numbing Imbecility
Intelligence Officials Eye Blogs for Tips
They Done Found Us Out, Cletus: Intrepid Internet Detective Figures Out Our Master Plan
Shock: Josh Marshall Almost Mentions Sarin Discovery in Iraq
Leather-Clad Biker Freaks Terrorize Australian Town
When Clinton Was President, Torture Was Cool
What Wonkette Means When She Explains What Tina Brown Means
Wonkette's Stand-Up Act
Wankette HQ Gay-Rumors Du Jour
Here's What's Bugging Me: Goose and Slider
My Own Micah Wright Style Confession of Dishonesty
Outraged "Conservatives" React to the FMA
An On-Line Impression of Dennis Miller Having Sex with a Kodiak Bear
The Story the Rightwing Media Refuses to Report!
Our Lunch with David "Glengarry Glen Ross" Mamet
The House of Love: Paul Krugman
A Michael Moore Mystery (TM)
The Dowd-O-Matic!
Liberal Consistency and Other Myths
Kepler's Laws of Liberal Media Bias
John Kerry-- The Splunge! Candidate
"Divisive" Politics & "Attacks on Patriotism" (very long)
The Donkey ("The Raven" parody)
Powered by
Movable Type 2.64