About Me

Name: LowDownCentral
Biography
Loading...

Create Your Own Blog Find Other Townhall Blogs

Comments

Archives

The Economy Falls

TARP20Ride-1.jpg picture by LDCuploads07

by Lance Thompson 

The Dow passed to the good side of 10,000 last week, and celebration was widespread because it was heralded as a sign of better times ahead.  As early as May 27, Treasury Secretary and Turbo Tax tyro Timothy Geithner said the US economy was in the early stages of recovery, and in late August announced “We are back from the brink.”  Fed Chairman Ben Bernanke, the financial equivalent of the Magic 8 Ball, has been saying since March that “signs point to recovery.” Administration spokesmen point to improving home sales, rising stock prices, and make-work jobs programs and credit the stimulus spending for curing the economy from its ills.  They conveniently overlook the virus of unemployment, the contagion of home foreclosures, or the consumptive decline of the dollar’s value. 
 
Here in Idaho, one of our state’s favorite outdoor activities is white water rafting.  The confidence of the various predictors of economic recovery reminds me of a raft full of people that has just gone through a particularly turbulent stretch of river.  After overcoming the challenge of the rapids, they find that the white water subsides, the surface appears smooth, and all are thankful they prevailed over adversity.
 
Yet if this raft was full of economists, and the river was the American economy, they serenely overlook what’s waiting downriver–a waterfall of staggering height which will make the rapids they’ve passed seem insignificant.  The waterfall cannot be passed safely–it is the dead end of a wild ride on the tracherouis waters of financial tumult.
 
The waterfall is the staggering debt that has been amassed with the government bailouts and spending initiatives that began with the TARP bill under President Bush and grew geometrically with President Obama’s stimulus bill, and subsequent massive government programs.  The spending that under Obama has eclipsed that of all previous administrations combined has multiplied the American debt to a level beyond possible repayment.  To ignore this downstream hazard and speak of economic recovery is to blindfold oneself to reality.
 
The government cannot create wealth, a fact which will probably come as a great surprise to Obama supporters who believe in his ability to provide largesse at a whim.  But all the money the government spends and distributes has to come from the American people and American business.  Government consumes wealth, but it is up to us to produce it. The more the government spends, the more we must produce, and the more of it we must surrender to the government through taxes. 
 
So the debt must some day be repaid by us, just as the economic raft must eventually reach the waterfall.  But with each new trillion-dollar spending initiative–health care, cap and trade, or any other massive government program–the waterfall gets higher.  As our economy floats downriver on a temporarily smooth current, there is no cause for complacency.  In fact, our fate grows more dire with each addition to the debt.
 
Unfortunately, we have not yet had to pay the price for this debt.  It will come with the sudden impact of higher taxes–the only way the government can take the wealth from those who produce it.  And those taxes will fall upon all of us–income taxes, consumption taxes, property taxes, fees and licenses will all be raised, and all of us will pay them.  At that point, the economic raft will be over the edge and plunging into the abyss of fiscal ruin.  The damage to our economy, our industry, and our system of government will be too massive to reverse. 
 
So when you hear happy prospects of a recovery that is just around the corner, listen more carefully.  You’ll hear in the background the distant but growing rumble of the coming fall.  As spending multiplies, as the debt continues to grow, as government persists in hobbling our private sector with takeovers and punishing regulation, the roar of the cataract will also grow.  At some point it will be louder than those who are telling us not to worry.  The question is, which sound will we listen to, and which will we believe?
Email ItEmail It | Print ItPrint It | CommentsComments (0) | TrackbacksTrackbacks (0) | Flag as offensiveFlag as Offensive

Last to Know

HasBeen.jpg picture by LDCuploads07
By  Lance Thompson
“You’re always the last to know your own reputation.”  I can’t be certain that I coined that phrase, but I am sure that it is an underlying principle of the universe, and even presidents are bound by its laws.
 
I first noticed the principle in Hollywood, where no matter how washed up a has-been some one is, no one will ever say it to his or her face.  One whose future is past is still welcomed, just not that warmly.  His calls are still taken, at least for a while.  He still goes to parties, but he’s no longer on the A-list.  As the has-been begins to notice the lukewarmness of his receptions, the increasing distance of his close pals, he seeks reassurance from those around him.  They will tell him that he’s imagining things, that he’s as cool as he ever was, that he’s still on top of the world.  Until those reassuring friends also stop returning calls.
 
Barack Obama is still sailing along on the certainty that he’s the coolest world leader on Earth.  He won an historic election, the media was solidly behind him, adoring crowds greet him wherever he goes, and only a few cranky right-wing commentators and tea partiers dare to rain on his parade.
 
But as Charles Krauthammer and others have revealed, Obama knew of Iran’s perfidy in concealing their nuclear program when he spoke at the United Nations on 24 September.   Despite the urging of European allies, he refused to bring up the uncomfortable subject, as it would detract from his speech.  The focus of the speech–Obama’s dream for a nuclear free world.  He still spun his no-nukes platitudes, knowing full well that one of the most dangerous regimes in the world was inches from deploying a nuclear weapon.  France’s President Sarkozy, England’s Prime Minister Brown, Germany’s President Merkel all wanted to use the international forum to expose Iran’s decades of deceit, but Obama postponed until the G-20 summit.  Obama’s refusal showed his weakness of character and selfishness of motive.
 
Last week’s presidential sales call on the International Olympic Committee, complete with first lady, cabinet officials, and the other Big O, was also exposed as a failure when it was announced Chicago was the first of the finalist cities to be out of the running for 2016.  Obama received the news on his way home.  Political pundits assumed that Obama had an agreement in hand before he departed, since a president would certainly not risk the prestige of the office to play door-to-door salesman unless he already had a sure thing.  He did not, and the whole trip was basically a slow lap around the Atlantic in Air Force One.  Even minor symbolic rewards seem to be beyond the once irresistible president–and the world noticed.
 
During his campaign, Obama identified the war in Afghanistan as the war we should have been fighting, the one that was vital to our nation’s interests.  He promised increased troop levels, greater efforts, more resources in this vital fight.  Then last month, General Stanley McChrystal, Obama’s choice to command our forces in Afghanistan, revealed that he had had exactly one conversation, lasting less than an hour, with the Commander-in-Chief since Obama took office.  Obama’s profound disinterest in the war, in our troops, in the stakes involved could not have been more clearly demonstrated. 
 
These and countless other examples of fecklessness and incompetence on Obama’s part have caused his approval ratings to steadily decline, along with support for his health care reform and global warming initiatives.  Each day, it seems, brings another revelation about corruption in Obama’s community organizing alma mater, ACORN; another expose on a communist appointed to the fitting position of czar; or another announcement of a betrayal of an ally or the appeasement of a foe. 
 
People across the country and around the world are taking Obama’s measure–those who cheered his election as well as those who did not.  But more and more are coming to the inescapable conclusion that he is a self-important neophyte playing at being a world leader, and falling far short of mere competence. 
 
No one who serves at the pleasure of the president will tell him this, for his ego is fragile and fiercely protected.  But one day, perhaps soon, Obama will begin to notice the crowds thinning, the media coverage becoming less adulatory, the poll numbers sinking too low to dismiss.  And he will look around, seeking assurance that he’s still the coolest guy in the room.  But by then the room will be empty, and no one will be returning his calls.
Email ItEmail It | Print ItPrint It | CommentsComments (0) | TrackbacksTrackbacks (0) | Flag as offensiveFlag as Offensive
« Previous1Next »