Obama’s mendacity has reached cosmic proportions. The AP reports the extent of his new budget, a whopping 3 trillion dollars (cela veut dire $3,000,000,000,000 pour mes amis qui ne comprennent des chiffres en anglais! Pour ceux qui sont en Afrique francophone, cela donne 1537770000000000 CFA selon le taux actuel). This includes 1.75 trillion dollar deficit, which he repeatedly blames on the Bush administration by calling it the deficit that we’ve inherited. Excuse me. But you don’t inherit deficits but debt. Deficit spending is a result of the current administration’s decisions. But the double-speak rises to unbelievable proportions when he says,
“Each and every one of us has to compromise on certain things we care about, but which we simply cannot afford right now,” the president told reporters in brief remarks. With his economic team standing behind him, Obama pushed a message of sacrifice, saying that won’t please some interest groups but that he plans to “bring the change that people voted for last November.”
Then AP Obama carries the water for the president by reporting that he will cut spending by 2 trillion! I don’t get it? How is adding to the deficit by 1.75 trillion a way of cutting spending. This is ridiculous.
As an investor, I feel a great foreboding. I am hedging my bets both ways now. I believe that the current trend in the stock market is down–but I am trying to take advantage of the volatility by buying stocks when the reach attractively low levels (PNC, I bought monday $21.50), but I am selling them off as soon as they make a satisfactory gain (so what I bought at 21.50 I sold at 25). I am too scared to buy and hold too many stocks on credit, even if I think they are undervalued (PNC has a book value –that’s the value of it’s assets minus its liabilities–of $39.51 per share). Also, I am trying only to buy stocks whose dividends are still at least double the interest rate I’m paying, because when the stock goes down, I have to be able to pay the interest.
Obama is planning to increase the size of federal government by at least two-fold. That will kill business. We should prepare for a long and serious economic downturn, because increasing the size of the government will not stimulate the economy but do quite the opposite: it will discourage investment and create inflation.
Smelling Salts Required: Deficit to hit $1.75 trillion under Obama, Rick Moran at the American Thinker
Obama’s Budget: The Beginning of the End?, by John at Powerline