Quotes From President Obama
I have some interesting quotes from President Obama which he said this week at a Democratic Party retreat:
“If you’re headed for a cliff, you’ve got to change direction.”
This is true, but the problem is that Mr. Obama has misidentified the direction of the cliff that we are headed for. A year ago, we were about to enter what would have been a somewhat minor recession. Mr. Bush and Congress flipped out and spent hundreds of billions of dollars on a stimulus that completely failed. Then, rather than allowing failing business to fail, Mr. Bush and Congress bailed them out one by one and then bought a bunch more. I am not going to fully detail this now, but in a free market system prices are important not just because they tell us the value of something, but they also contain a lot of information within any given price. Mr. Bush and Congress should have allowed the banks and insurance companies to fail and for the debt to be repriced, rather than subsidizing bad banks and investments and keeping debt priced at the same level. But Mr. Obama is continuing the exact same policies that got us into this mess. If you disagree, then read about how Japan’s economy stagnated for 15 years when their government shored up bad private sector bank loans.
Our economy is racing toward a cliff and Mr. Obama is hitting the accelerator, rather than slowing down or changing directions.
“When you start hearing arguments, on the cable chatter, just understand a couple of things. Number 1, when they say, ‘Well, why are we spending $800 billion [when] we’ve got this huge deficit?’ First of all, I found this deficit when I showed up, number 1.”
Um… yeah you did. But how is that an excuse for spending $800 billion. Remember the cliff that he mentioned above? Didnt he also mention changing directions?
“I found this national debt, doubled, wrapped in a big bow waiting for me as I stepped into the Oval Office.”
The above quote from President Obama is almost true (the debt increased by about 85% during President Bush’s two terms). But Mr. Obama has already requested about $1.2 trillion ($350 billion from TARP and over $800 billion from this “stimulus” bill) since he became President a few weeks ago. That is an increase in the size of the National debt of about 10% in about 3 weeks! Change, Mr. Obama? Or just more of the same?
Americanly Yours,
Phred Barnet
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