The bombshell CBO report and why Obama should be worried

Hot Air ^ | February 2, 2012 | Ed Morrissey

[RobinMasters]

Today, Politico’s Jim VandeHei reports that economic indicators should have Barack Obama worried about his re-election prospects, not more sanguine. VandeHei relies heavily on this week’s economic and deficit projections from the CBO, but perhaps not heavily enough:

A new CBO report grabbed lots of headlines for projecting the deficit will top $1 trillion this year — making Obama the first president ever to pile up $1 trillion or more every year in office. That’s not great politics. But it’s not even the worst news contained in the CBO report. The unemployment number is.

The CBO projects unemployment will rise, hitting 8.8 percent in the third quarter of the year, the heart of the campaign. That’s terrible politics. Obama advisers have told us repeatedly on background that if unemployment is above 8.5 percent in the final months of the campaign, it will be extremely hard, if not impossible, to win. The advisers say independents will not return to Obama if it looks like economic growth is anemic and uncertain and it looks like his policies did little, if anything, to create new jobs under his watch.

Economists seem divided on the question of whether robust enough economic and job growth can happen in time for Obama to benefit. Some see signs of possibility in holiday sales and consumer spending in some parts of the country. Others see more of the same: a slow slog back. The CBO sees 2.2 percent growth in the quarter ending in September, essentially the same sluggish pace of a year earlier.

[MrB]

Historically, tyrants have used civil unrest in order to step in and exert more power over the citizenry.

However, in this case, if there are race riots,

EVERYONE

will know who and what caused them. The FBP.

[MrB]

Just the latest “surge” of buying of guns and ammo.
These “waves” have been going on since around mid-2008, shortly after McCain got the nomination.

[Cementjungle]

That won't work against a back-drop of foreclosed homes on your street and your neighbors out of work.

Sure it will... Obama will promise free houses and free money to those down on their luck. The "it's Bush's/wealthy fault" line is still working just fine with many people.

[itsahoot]

Ping a Bingo!

[Lonesome in Massachussets]

In 1964 they told me that if I voted for Goldwater, we’d have riots in the cities and half a million troops in Vietnam. They were right, I voted for Goldwater and we had riots in the cities and half a million troops in Vietnam.

[itsahoot]

They were right, I voted for Goldwater

You fell for that too? {:-)

[nutmeg]

ping

[<1/1,000,000th%]

The media campaign pushing his re-election will continue to build strength, and come October the media will be telling us that unemployment is at 2%, Obama created 700,000,000 jobs, Obama single-handedly saved us from certain disaster/war/famine/depression/plague/aliens.

You're right. I remember when Clinton was running for re-election and everyone was touting the 100 million jobs created by Clinton.

[Lloyd227]

Personally, I still do not believe our guys are campaigning against the right Democrat. i.e. I believe Obama is going to give his LBJ speech once the GOP has their candidate and has wasted time and money trying to "beat Obama".

Hillary is bring warmed up in the bull pen

[SunkenCiv]

Thanks RobinMasters.

[ctdonath2]

So what we’re seeing is really a -4% GDP, with $1T deficit spending pushing it up to a fake, and paltry at that, 2%.

[ctdonath2]

You forgot:

3. Buy votes.

$10T in deficit spending buys a lot of votes. Just 0.01% of that coming back (reap what you sow) gives a billion dollar campaign war chest, and that’s on top of all the loyalty bought with the other 99.99%.

[ctdonath2]

Nope. Hillary already blew multiple opportunities to conspire her way into office. Too late.