Posted on 01/04/2010 11:47:40 PM PST by TigerLikesRooster
I Know What Keeps Obama Awake at Night
Submitted by madhedgefundtrader on 01/04/2010 09:14 -0500
While Obama relaxes in Hawaii, sipping Mai Tai’s adorned with little umbrellas and hooking up with distant relatives, a potential nightmare is giving him sleepless nights. Let’s say we spend our $2 trillion in stimulus and get a couple of quarters of decent growth. The “V” is in. Then once the effects of record government spending wear off, we slip back into a deep recession, setting up a classic “W.” Unemployment never does stop climbing, reaching 15% by year end, and 25% when you throw in discouraged job seekers, jobless college graduates, and those with expired unemployment benefits. This afflicted Franklin D. Roosevelt in the thirties.
So Congress passes another $2 trillion reflationary budget. Everybody gets wonderful new mass transit upgrades, alternative energy infrastructure, smart grids, and bridges to nowhere. But with $4 trillion in extra spending packed into two years, inflation really takes off. The bond market collapses, as China and Japan boycott the Treasury auctions. The dollar tanks big time, gold breaks $2,300, and silver explodes to $50. Ben Bernanke has no choice but to engineer an interest rate spike to dampen inflationary fires and rescue the dollar, taking the Fed funds rate up to a Volkeresque 18%. %. The stock market crashes, taking the S&P well below the 666 low we saw in March. Housing, having never recovered, drops by half again, wiping out more bank equity, and forcing the Treasury to launch TARP II.
The bad news accelerates into the 2012 election year. Obama is burned in effigy; Sarah Palin is elected president, and immediately sets to undoing all of his work. Republicans, reinvigorated by new leadership, and energized by a failing economy, retake both houses of congress. National health care is shut down as a wasteful socialist mistake, boondoggle subsidies for alternative energy are eliminated, and the savings are used to justify huge tax cuts for high income earners. We invade Iran, and crude hits $500.
If you’re over 50, and all of this sounds vaguely familiar, it’s because we’ve been through it all before. Remember Jimmy Carter? Remember the “misery index,” the unemployment rate plus the inflation rate, which hit 20, and catapulted Ronald Reagan into an eight year presidency? A replay is not exactly a low probability scenario. This is why junk bond yields are still stubbornly high at 12.5%, and credit default swaps live at lofty levels. It’s also why the investing public is gun shy, favoring bonds over stocks by a ten to one margin. Are the equity markets pricing in these possibilities? Not a chance.
The risk of economic Armageddon is still out there. Personally, I give it a 50:50 chance. Batten the hatches, and please pass the Xanax.
Ping!
BUMP!
I don't think he understands it enough to worry.
Good Article. We will know which way this cookie will crumble by June.
I think he keeps it under wraps because it has his full birth name, and he would have a hard time passing it off on the public.
Barak Hussein Mohammed Obama
It may very well be that he was born in Honolulu, as he insists.
It is only speculation, but one that would fit the circumstances.
I Know What Keeps Obama Awake at Night
The Donald Young murder investigation
Larry Sinclair’s Book
Larry Sinclair’s run for Congress
So Congress passes another $2 trillion reflationary budget. Everybody gets wonderful new mass transit upgrades, alternative energy infrastructure, smart grids, and bridges to nowhere. But with $4 trillion in extra spending packed into two years, inflation really takes off. The bond market collapses, as China and Japan boycott the Treasury auctions. The dollar tanks big time, gold breaks $2,300, and silver explodes to $50. Ben Bernanke has no choice but to engineer an interest rate spike to dampen inflationary fires and rescue the dollar, taking the Fed funds rate up to a Volkeresque 18%. %. The stock market crashes, taking the S&P well below the 666 low we saw in March. Housing, having never recovered, drops by half again, wiping out more bank equity, and forcing the Treasury to launch TARP II.
0bama doesn't have the brains to think through such economic scenarios
I doubt he is being kept awake at night by this
At this time he believes that all of Bernanke's and Guithner's machinations have succeeded
Look the stock market is way up off its lows!
Actually that makes sense since Obama blames everything on "W" anyway. "Bush's fault."
“I don’t think he understands it enough to worry.”
He knows exactly what he is doing. Guilt should keep him up but he feels nothing! The man is Evil!
“He knows exactly what he is doing.”
Yep. Just like FDR knew what he was doing. The trick for Obama will be to keep the charade going so he can get re-elected. “We inherited a disaster, greedy capitalists, a problem so big only government can fix it, etc...”
I don’t think he spends a moment of his time worrying about anything.
Absent the GOP getting their heads out of their asses and putting up some candidates who know something about the situation and who are then proposing to do something that has a chance of working, he has no real worries.
The GOP continues to repeat their mantra of “tax cuts, tax cuts, tax cuts” — ignoring all the while that tax cuts work only when you have a profit, or you’re employed at a high enough wage to worry about paying taxes in the first place. When you’re out of business or out of work, tax cuts don’t do jack - but the GOP thinks that they’re the magic salve that will cure all ills, political, fiscal and moral.
Someone will have to emerge that has the balls and the brains to attack the surplus of labor by reducing immigration, restricting the out-sourcing of jobs and going after trade policies that are slitting our own throats.
But there’s no one with the balls or brains to do that in the GOP ranks right now. So Barry can sleep quite soundly at night, because a “bad plan” beats “no plan” at the polls in election years every time. That’s how McCain lost: no plan, as well as no clue.
He has plans to swat us down as soon as he is able without getting his other plans buggered up.
He loses about as much sleep as Castro or Chavez.
I don’t think he is worried at all if he and Congress are going to steal the 2010 election with DMV.
I kinda figured it was the burning red eyes of Lucifer glaring at him from his perch on the blanket rail of his bed.
I knew he would blame W.
I don’t think Obama is worried..His administration has a plan...The rest of us should be very worried because we are quickly being forced into submission to our enemies and many will not realize it until it is too late for peaceful intervention. I have come to the conclusion that only a act of God is going to save America, so, Christians, all of us had better be constantly in prayer for our nation. And, oh, yes, I remember Jimmy and his loud pronouncements about “obscene profits,” and about the reams of news government regulations that could not be understood by even the beaureacrats who wrote them..I know this because my husband was one of the young persons trying to decipher those regulations. As bad as that administration was, though, it was nothing to what we could see through this one.
I believe God has already started by freezing the world.
They keep him awake at night in gleeful anticipation - like a kid on Christmas Eve.
Not to worry. There will never be a report on the true number of unemployed people.
The liars will continue to lie. The pundits will continue to tell us the recession is over.
Trouble for them. WE KNOW.
The bankingindustry (I'm in it) still has the heebie jeebies and will not unlock credit unlessthe deal is an absolute sure thing.
I don't know about 25% unemployment, but 18-20 works.
Palin would solve the $500 crude issue in no time.
Once Chicom stimulus money runs out, the real fun starts. As for U.S., Whether it's rate hike or more printing press, it would only make things worse.
I think Obama just keeps thinking of large cheering crowds. That is what keeps him going.
I think it's because instead of where it's supposed to say "father", it has a Letterman style top 10 list.
0bama’s knowledge of economics would fit in a thimble, and rattle around. He’s not being kept awake at night because of any economic scenarios. He doesn’t understand economics, period, and consequently doesn’t know enough to be frightened.
2. Someone finds his Kenyan birth certificate??
3. They find out Valerie Jarrett's actually a man?
4. Has a homoerotic dream with Glenn Beck?
5. Satan calls in his marker?
6. National Enquirer gets pics of newly completed Death Panel Chamber with first FR victims?
7. Ears fall off?
Everybody seems to be assuming that he doesn’t want these things to happen.
This scenario is ~exactly~ what Soros and the Puppet Masters have instructed The Usurper to do.
I’m sure they couldn’t be happier.
And everything is going according to the plans.
Obama: "Meine tormentor!"
You are correct Tiger.
Super nice pic
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.