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    Obama Wins – Markets Plunge

    11/08/2012
    Democracy and Power 104: Future Debt Burden

    Government debt is a government claim against personal income and private property – an unpaid tax bill. – Hans F. Sennholz

    Obama Wins – Markets Plunge

    Obama persuaded the majority of Americans to re-elect him as President of the United States.  Investors throughout the world also voted; upon learning of Obama's victory, the markets plunged.  Obama is responsible for an enormous increase in government debt, restrictions on energy production, restrictions on international trade, abuse of the rule of law and enormous tax increases.  All of these policies retard job and economic growth in America.

    The diving market is a loud and clear wake-up call to America.  Investors have lost confidence in our economy and  America's political sanity.  This acute response should be a great concern to every American and everyone in the world.  If investors lose confidence and respect for the dollar as the reserve currency,  America and the every person in the world will suffer devastating economic and social disturbances.

    Over a year ago, Glenn Hubbard, former chairman of the President's Council of Economic Advisers for George W. Bush, said, "We must change how we conduct our politics and economics...or we will inevitably go the way of all once-great nations and suffer an irreversible decline."

    Without a doubt, President Obama and hordes of special-interest predators will seek more tax revenue.  Already, Senator Harry Reid claims the President's victory is a mandate for more taxes.  How big of a tax increase​?  Of course, President Obama and Harry Reid won't say.  However, Hubbard stated in the Financial Times  that across the board increases of 60% would be necessary to maintain Social Security, Medicare and Medicaid.  Again Hubbard:

    But the bulk of growth occurs in the Social Security, Medicare and Medicaid programmes, which together are set to consume 10 percentage points of GDP more by 2040 than they do today. Accommodating this growth at that time by raising taxes would require a 60 per cent across-the-board increase in taxes.

    Contrary to Reid's demand for increased taxes, Hubbard cited the empirical studies of two Harvard economists, which call for substantial spending cuts.

    ... stabilizing and eventually reducing the debt-to-GDP ratio by limiting the growth of spending is more likely to be successful and to lead to growth. … Careful analysis by Alberto Alesina and Silvia Ardagna reveals that successful debt stabilisations focused on reducing spending rather than raising taxes and that fiscal adjustments associated with higher GDP growth are those dominated by spending cuts.

    Alas, many Congresses and many presidents have brought us to this critical point.  America's politicians have deceived, obfuscated and procrastinated.  Now, they must set a responsible course or terrible disruptions will occur.

    The only responsible course is to reduce government spending.  Today, only the House of Representatives has the knowledge, courage and honesty to legislate the necessary spending cuts.  Representative Paul Ryan is the most important in America.  Yes, the President is the most powerful, but Ryan is the most important.  Ryan has the knowledge and courage to address America's horrific spending debacle.

    Every concerned American must vigorously support Ryan and the House of Representatives.  This is the biggest battle of our lives.

    Related posts:

    To Stop the VAT Tax - Cut Federal Spending

    Cut Spending - Cut Taxes: Sweden - Ryan - Tea Party Budet

    When Pretending Fails to Hide Bankruptcy

    The Right Way to Balance the Budget

    6 comments
    Front Porch
    11/12/2012

    I will never use capital letters in obama's name ever again and you shouldn't either. It's a small, maybe even petty jesture, but sends a message. If all journalists, conservatives, patriots refused to capitalize his name it will send a huge message.. I respect the office. Not the man. Looks like this: President barack obama. President obama.

    Rich Ward
    11/10/2012

    Democrats are the party of freebies...vote for us and we'll give you....(fill in the blank here) and their promises very rarely come to fruition , one thing is for sure raise taxes on the wealthy and job creators and they will lay off people to recoup and shore up their bottom line, along with raising the prices of their goods and services...which is a recipe for a never ending downward spiral ....or at least until a conservative in voted in to reverse the damage by lowering taxes and cutting spending and eliminating or cutting social programs. Obama says he's going to create jobs? How I ask? The private sector is paying off...will Obama attempt to mandate private businesses hire people? Obama has no idea how the private job sector works

    Rich Ward
    11/10/2012

    *private sector is laying off*

    Jeff Z.'s picture
    Jeff Ziembo
    11/10/2012

    Representative Paul Ryan is the most important individual when it comes to dealing with the catastrophic overspending in Washington? Are you talking about the same Paul Ryan who supported TARP, Economic Stimulus HR 5140, the $15 billion dollar bailout for GM and Chrysler, and $192 billion additional anti-recession stimulus spending? We can and must do far better than this if we wish to avoid going over the fiscal cliff we are hearing so much about. Sorry, but if Ryan is your answer, we are still in very serious trouble!

    teda's picture
    Ted Abram
    11/10/2012

    Excellent points. However, only Ryan has had the foresight, tenacity and courage to identify America's debt debacle and offer a solution. No politician even comes close.

    Michael Mossey
    11/09/2012

    Well, this was one way for Occupy people to get their wishes, Vote for Obama and then sit back and watch Wall Street Collapse one day at a time.... As Business stocks fall and employees get laid off... OH, but relax there is plenty of Obama's stash to spread around and don't forget food stamps

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