No U.S. President has spent more money and had less to show for it than President Barack Obama. Yet recent polls show Obama remains the odds-on favorite for the Presidential election in less than seven months.
That could all change if the greenback continues to weaken while U.S. stock indexes continue a major retreat for the first time in three years.
The U.S. economy is gravely ill, and the tepid recovery is living on borrowed time. The vexing question: Will Obama win before the next shoe drops?
The leading indicator of the economy is the direction of the stock market. An examination of stock charts indicates serious problems for U.S. stock indexes. That tells me that big money around the world is starting to bet against the recovery that began during Obama’s first term.
Gangster movies say you can always trust the word on the street. I don’t know much about being a gangster, but I have found that you can trust the word on Wall Street.
Meanwhile, unemployment remains far too high — even if you believe Washington’s numbers. Add in the underemployed and those who have given up looking for work, and the true unemployment rate for the United States is about 15 percent.
It is true that America crawled out of a depression that began in 2008 with hundreds of billions of dollars injected into the banks, but financial institutions have not been lending most of that money. As a result, the amount of money has been growing, but it is not circulating.
Economists call this the velocity of money. It simply means how fast money changes hands. The faster money moves, the better the economy is. In this way money is like a bullet. If a bullet has enough velocity, it will bring down an elephant. If it has hardly any velocity, it can’t kill a rabbit. With more than three years in office, the President has not encouraged people to lend or spend. The good news is his poor economic leadership puts a second term for the Obama Administration in peril.
Last week, The Washington Post wrote that while polls still favor Obama over GOP challenger Mitt Romney, the President faces a serious contest:
On the two most pressing issues of the campaign — the economy and jobs — the contest is considerably more competitive, with about as many trusting Romney on the issues as Obama. Despite positive economic indicators, Americans remain deeply pessimistic about the overall direction of the country and largely consider the economy still mired in a recession. The Romney campaign is hoping to take advantage by making the contest about Obama’s performance on these key concerns.
Obama’s overall approval rating stands at 50 percent, but he draws negative marks on how he has dealt with the economy and the recent increase in gasoline prices. Nearly half of all Americans say his handling of the economy is a major reason to oppose his reelection; far fewer see it as a big reason to support his bid.
Romney holds a double-digit lead over Obama on just one issue tested in the poll: who would better deal with the federal budget deficit.
Obama handles the Nation’s money the way Lindsay Lohan handles alcohol. Both have more celebrity status than talent, and neither can meet the challenges they face. In Lohan’s case it is an interesting melodrama that titillates the masses. Obama’s flaws might just starve the masses.
Of course, I don’t know Lohan personally. But I can guess that she starts her night on the town by ordering whatever she wants regardless of the costs. This is pretty harmless stuff unless she rams her car into some innocent driver.
And what did Obama do when he first stepped into the Oval Office? He ordered up Obamacare. Lohan is addicted to alcohol. Bill Clinton had issues with sex. Obama, however, is a social engineer spending our money to feed his fame addiction.
Last week, the GOP reported that instead of curbing government spending, Obamacare could add up to $530 billion to the Federal debt over 10 years. The study was done by Charles Blahous, a George Mason University research fellow and the Republican trustee for the Medicare and Social Security entitlement programs for the elderly. Blahous challenged the President’s assertion that the 2010 law would reduce healthcare costs.
The Obama Administration defended the law as a cost saver and sharply criticized the report, saying that it ignored all the benefits for the Nation.
Anyone who watches Dr. Drew on TV probably recognizes this as denial, something all addicts seem to have which is sometimes accompanied by delusions of grandeur.
Another signature of an addict is to repeat the same behavior and expect a different result. For almost four years, Obama has been building his new America around Obamacare. It hasn’t taken hold, and now the final arbitrator is the Supreme Court. The Justices will do to Obama exactly what Los Angeles judges have been doing to Lohan over the years: They will slap him on the wrist.
America Needs Intervention
When the Hollywood celebrity gets slapped, she goes back to the same bad behavior as before. To hell with everyone, she says.
The same will hold true for Obama. If he does not lose to Romney, he will go back to the same destructive behavior, the kind that will ruin the Nation — not simply the career of a once youthful and now washed-up movie star.
Make no mistake: If the President is not stopped, it will mean hard times — not for him, his family or the liberal elites, but for the Nation.
What I understand about addiction is that addicts have to get help. This means it is our obligation to help Obama. We have to help him lose in November so the Nation can heal.
If that doesn’t happen and Obama is re-elected, then God help us. If he retakes the White House, he undoubtedly will appear on television sets around the world proclaiming the famous Charlie Sheen chant: “Still winning!”
Yours in good times and bad,
Editor, Myers Energy & Gold Report