Obama says spending cuts could trigger second recession

Reuters ^

[Tzimisce]

Did I miss something? When did the first recession end?

[Real Cynic No More]

Yeah, that’s what happened following WWII, right? /S

[Son House]

Democrat vote buying may feel it this time if government spending is cut

[floozy22]

Obama also said the lack of a serious plan to tackle U.S. deficits could become a big drag on the economy if investors pull back.

No one in the media will challenge him on this idiotic statement. They never do. He gets a pass on EVERY STUPID THING that comes out of his mouth.

Investors are pulling back because our debt is through the roof and the dollar is crap...thanks to Obozo and his minions.

[raybbr]

According to the propagandists in the WH the first recession ended two years ago when the first spending bill was passed. The second one, or double dip, was last year. The next one would be the third if you had the economic acumen of drooling, tax-cheating, marxist such as inhabit the White House.

I remember reading a quote by Obama to the effect that: "If a business gets a new loan they are once again solvent and can pay bills".

Obama truly believes that a loan is wealth - that they can be paid back at leisure and the borrower can simply borrow more if needed with no end in sight. He's just that clueless about economics.

[BobP]

''My plan to balance the budget is this: more smoke, more mirrors, more QE, more posturing and more taxes on all productive people. All aboard the bullet train to bankruptcy.''

------------------------------

Hope and Change.... Tragic.

Cancel 'Amateur Hour' at the White House!

[Repeal The 17th]

How can we have a second recession when the first one ain’t over yet?

[!1776!]

President Barack Obama said on Wednesday he believes the U.S. economy could lapse back into recession instead of a depression or full economic collapse if government spending is cut.

There - fixed it...

[Mariner]

I one respect he is TECHNICALLY correct if a recession/depression is measured by GDP.

The GDP numbers include Government Spending and ALL Investment.

Take out the ADDITIONAL $1.2trillion the Government is spending in 2011 from the 2008 baseline AND the $900bil TARP and the $1trillion "Stimulus" and you've essentially dropped GDP by $3trillion...off the top line of $14trillion.

That's about a 22% drop in the REAL economy since 2008.

That's a depression folks. Real debt deflation.

So, yes, a cut in government spending will result in a drop in GDP in the near term. However, eliminate this largess all together and the REAL economy would grow and put up some real GDP numbers.

The GOP needs to get out in front of this now explaining that, of course, a cut in spending will result in a GDP reduction. 'tards in government put govt spending into the GDP calculus. However, we Republicans are interested in growing the real economy as a percentage of GDP. That will increase tax revenues and create jobs.

[Clink]

this is battlespace preparation. He knows that the economy is going to get worse, so he is starting the meme that it was not his fault

+1,000

[colorado tanker]

Obama is completely ignorant of basic economic principles. I still think he majored in ethnic studies, which is one reason he won't release his college transcripts. Just sayin”

[RWB Patriot]

Hot air like this makes me wonder what he’ll be saying when the second recession does hit.

[Mariner]

And, that doesn't even include all the FREE FED MONEY that is being invested by the big institutions in the stock and commodity markets...which can be measured in several $trillions.

Without 0% fed money being re-directed to big markets (because there are too few willing and qualified private borrowers) AND the government spending...we've likely take a 30%+ hit in the real economy.

ENORMOUS.

[randita]

Government Cash Handouts Now Top Tax Revenues

[GlockThe Vote]

And it was only yesterday he was screaming about the deficit. Unreal. Is this what is known as kenyanomics?

[Califelephant]

Kenyanomics? Bingo. That’s it exactly.

[pop-aye]

I am a little worried that the little “o” is trying to prepare the field for a crash.

- We are printing money like it doesn't matter.
- We are monetizing the debt.
- The commercial real estate market is about to dump harder than the private home real estate market did.

If a Repub budget is passed, and the economy tanks (as it is already prepared to do) it gives the pres the ability to blame the depression on the right and use it as fodder to win the election.

It is easy enough to see the crisis that is about to happen. I am certain that obama has not forgotten to “never let a crisis go to waste.” If he knows its going to happen, regardless of the budget, why not let people think that it is a republican budget that throws the economy into chaos? (just as he is telling us it is going to if their budget passes)

[Venturer]

What is better: A second recession or a Zimbabwe inflation?

[Charles Martel]

What “second” recession? We’re still in the “first” one.

[EvasiveManuever]

Obama must be African for “Moron”.