Barack Obama told us the economic "stimulus" plan was absolutely necessary to improve the economy and prevent unemployment from hitting double digits. So where are we? A Washington Times editorial reports on the Bureau of Labor Statistics numbers for May which shows the U.S. barrelling toward 10% with no end in sight.
"What is stunning is the speed at which the unemployment rate is increasing. Since January 1990, there have been just three months when unemployment has increased by 0.5 percentage points or more in a month. Two of those months - February and May of this year - have been under the Obama administration."
Three hundred forty-five thousand more jobs were lost in May. Those are real people with real families. That means more business failures, more foreclosures, and more poverty for the American people. So where are the indications that the liberals' economic fiasco is helping?
The real truth is the stimulas is not going to do much of anything.
ReplyDeleteIt will be a large waste of money.
Plenty of it will be stolen.
With $13 trillion of added debt lapping up on our shores, the real worry on the minds of smart money are the Chinese. It is now becoming clear we cannot pay back this money they have lent us. The only way to get out of this trap is to inflate. The problem with that is, interest rates will climb much higher. 15% mortgage rates were a problem in 1978, but America had a very small debt. Today, we have to pay interest on what might be $20 trillion with $2-3 trillion being added yearly. That would be like a homeowner paying $3,000 mortgage payments who is earning $2,500 per month. Therefore each month you might need to borrow $2,000 more.
Would you lend money to that kind of person. That is why china is getting cold feet.
I would prepare for much higher inflation, higher taxes, very high energy costs and sky rocketing gold prices. Most stocks are poised for a second crash, and anyone owning bonds or bond funds is going to experience losses as bond prices more inversely to interest rates.