Stimulating The Crash
August 11, 2010 by Bob Livingston
The chair of President Barack Obama’s White House Council of Economic Advisors quit last week, the day before the elitist no-nothings in charge declared their “surprise” that 130,000 more jobs were lost in July.
That chair, Christina Romer, said she was headed back to Berkley and her spot in academia where she can pour failed Keynsian economics into the noggins of another generation of empty-headed college kids so they can move on to highly-paid government jobs where they can manage (ie., wreck) our economy at some future date.
Romer is the clueless neo-Keynsian who drafted the February 2009 report “The Job Impact of the American Recovery and Reinvestment Plan,” which the White House touted in its efforts to pass the $1 trillion stimulus bill. It was upon Romer’s report that the fascists trashing our economy based their predictions that if Congress passed the stimulus bill unemployment wouldn’t rise above 8 percent and would be dropping by now to around 7 percent.
There is no end to the folly that the de-stimulating stimulus bill has wrought. Not only has unemployment consistently remained at 9.5 percent and above, but hundreds of thousands of additional potential workers have just given up looking. Some analysts say the real unemployment rate is above 15 percent.
Senators Tom Coburn (R-Okla.) and John McCain (R-Ariz.) have released a report highlighting the folly of the stimulus spending. On the list is $554,760 for the Forest Service to replace windows in a closed visitor’s center at Mount St. Helens, $762,372 to create Dance Draw interactive dance software, $62 million for a tunnel to nowhere in Pennsylvania that the state’s Democrat Governor Ed Rendell called a “tragic mistake,” $1.9 million for international ant research and $308 million for a joint clean energy venture with BP.
Tragically, there are many more just like these. And what’s worse, the money that didn’t go to this type of foolishness was used to pay off Obama’s union thug supporters like the Service Employees International Union.
Seeing no end to friends deserving to be paid off, House Speaker Nancy Pelosi (D-Calif.) called House members back from their August recess vacations on Tuesday to print more money and hand it over to the teachers, police and firefighters unions in the guise of a $26 billion state aid bill.
Meanwhile, Obama was out doing the one thing he does well, trashing his predecessor and his “disastrous policies.” He conveniently leaves out the fact that he voted for many of former President George W. Bush’s disastrous policies and has since ramped them up to infinity.
But is it surprising? After all, all government economists were trained under the same Keynsian theories and none of them saw the recession coming to begin with. They see improvement where there is none and are continually “surprised” by the bad news.
However those who saw this crisis coming, folks like Mark Faber and Gerald Celente, are warning about the second leg of this crash. And it’s going to be worse than the first.
Continuing to print fiat money in order to prop up the failing system is a doomed policy. The crash is coming, dear reader. Don’t be surprised.