Left And Right Politics

…plus the cream in the center.

President Obama Is Not A Leader

Posted by Billy On August - 8 - 2011

That’s right, President Obama is the furthest thing from being a leader. He has shown the American people that he is not leading us out of this recession as he’s been telling us for the last two years when his administration made claims of the recession ending June 2009. To make matters worse, Obama is even down-playing the whole entire Standard and Poors downgrade.

Last Friday, August 5, 2011, Standard and Poors downgraded the United States credit rating to a “AA+” with a negative outlook. The reason for the outlook assumption is the fact that Washington along with Obama have lead this country into a complete and total spending frenzy and when it came time to handle the debt ceiling issue, Congress and the president acted like a bunch of school kids fighting over issues that really didn’t do anything for the deficit. This wording by politicians for planning “cuts” is a joke. In essence what they want to do is to cut spending on future projects, which is fiscally wrong since it does nothing for the spending that is already going on.

Obama finally gave a press speech today (two days after the S&P report), in regards to the downgrade by S&P. His entire speech was nothing but another campaign style speech where he was vague and not direct with a response to the situation. He first wants to make a foolish comment about Warren Buffet and how America will always be a “AAA” rated country. His approach to the issue seems to be more relaxed and carefree to what needs to be done. He didn’t mention anything about his failed policies or the fact that his plans have been nothing but a way to spend tax payer’s money.

Standard and Poors stated it clearly that if the United States doesn’t get a grip on the spending habits and reduce the deficit by a considerable amount, they see themselves (S&P) downgrading the U.S. again within the next two years.
So what does Obama say in his first speech since the downgrade? He talks about future cuts and tax reform and Medicare reform. His comment alone about raising taxes on those who should “pay their fair share”, shows this man has no clue on how to run a lemonade stand, let alone the leading country in the free world. His next comment spoke about reducing taxes for “those that need it” to help stimulate the economy. Real economic stimulation comes from the free market and job growth. Without it, we will slowing diminish into a second rate country.

This country will never get back it’s AAA rating as long as we have politicians in Washington that clearly don’t know how to make a business run efficiently and profitably. As it is, Obama was asked to remove Timothy Geithner as the Secretary of the Treasury and instead, Obama begged Geithner to stay on his administration. How can you be so blind to see that the Treasury Secretary doesn’t have a clue as to what’s happening. He used to be on the board of the New York Federal Reserve and supposedly knows all about ratings and how Wall Street works. In April, Geithner stated that a downgrade is not in America’s future and that the country will retain it’s AAA rating from all three rating agencies. So where is the man’s knowledge and talent when this country needs the right man in the Treasury? Obama doesn’t know what to do, Geithner doesn’t know what to do and the people that Obama has put in his administration don’t have a clue either. If I didn’t know any better, I would think that this is the objective of president Obama to destroy the United States as this world has known it and transform it into something of his own choice. Oh wait, isn’t that what he said he was going to do when he was on the campaign trail? Then again, from listening to his speeches, I don’t think he ever got off the campaign trail in the first place.

So When Do The Jobs Start?

Posted by Billy On August - 3 - 2011

After thirty months in office, president Obama is saying that he is focused on creating jobs in America. The odd thing about that is the fact that he’s been saying that since he was on the campaign trail. So what’s different now than three years ago?

The whole idea (according to Obama) of getting the debt ceiling raised was to stop the country from defaulting on it’s loans as well as creating more jobs in this country. I find that hard to believe since one of the first things he did when he was sworn into office was to get an almost $1 trillion stimulus bill passed to do the same thing. Yes I know he tells us that the stimulus bill created or saved two million jobs. Analysts have looked into the facts of jobs created from the stimulus and it’s way lower than what the Obama administration has been reporting.

As you can see the stimulus and anything else that the administration is doing hasn’t created any jobs or even turn this economy around. It’s been reported that economic growth in America for the first half of the year (2011) is a staggering less than 1%. So how is giving the federal government any more money going to help?

The federal Reserve is now thinking of what they can do to stimulate the economy and get the country back on it’s feet. All I have to say about that is they are part of the reason why we’re in this mess. Manipulating the currency and controlling inflation artificially for the last hundred years hasn’t helped, so where should we think they’ll do anything now in the best interest of America. Chairman Ben Bernanke has touch base on starting a third round of bond purchases. The federal Reserve can also cut the interest rate for banks that hold excessive reserves as well as pledging to hold its assets at a record high and interest rates at record lows for a longer period, Bernanke stated.

As a nation, the only way we can create jobs and to get the economy moving again is to stop Washington from continuing has they have for many years. We need to cut back on government spending. When I say cut spending, I don’t mean cut Social Security or Medicare. Those programs are not the main problem. Yes they both have issues within the systems but reform is much different than cutting. Politicians are too concerned for their contributors as well as their own political careers. Doing the right thing in Washington would be political suicide. So if we want to save this country, we must remove each and every one of the politicians within the Beltway. Of course it will take years to do so since not all of them are up for re-election in 2012. If they’ve been in office for two terms, it’s time for them to move out of the way and let someone else try something else, or at least improve some of the current policies. Once we get Congress and the president to stop their excessive spending and let the markets correct themselves, we will continue to be in the same position.

Deal Has Been Made, But At What Cost?

Posted by Billy On August - 2 - 2011

A deal has been made in Washington in regards to the debt ceiling. As I expected, Congress has passed a bill in which it will allow raising the debt ceiling. Something I felt that shouldn’t have been done, but would be needed in this present economy. Now at what cost will it be for the American people?

Economist say that it will probably have little (if any) impact on the economy. The reason for that is, none of the cuts come until 2014. Many economists and the Federal Reserve Chairman Bernanke advised Congress that cutting too much too soon could hurt the weak economy. They also recommended that reduced spending over the long term would help the economy.

According to the deal, discretionary spending would be cut $21 billion next year and $42 billion in 2013. Social Security Medicare and Medicaid will not be touched, as the more “politically aware” knew would happen. It was a scare tactic all along. A political tool that the politicians, both Republicans and Democrats alike, use against the other. What kills me is the fact that these cuts will only add up to about 0.2% of the entire economy’s output for that time period.

The rest of the cuts will come over a period of 10 years (why always 10?). The first phase will reduce spending by $917 billion and the second phase will add another $1.5 trillion which will be decided by a congressional committee. So let’s create another committee to look into something else the government screwed up on.

The politicians we have in Washington are trying to “fix” the problem in which they caused in the first place. Let’s face it, we are going to face the pain one day for the actions of our past. We need to cut the spending now, not over a period of 10 years. Don’t get me wrong, I know it shouldn’t be immediately. No matter what they (politicians) tell us I know the economy is struggling and as for a recovery, the past two years, the federal government has been hindering it from really happening.

I (like many of you) haven’t read this bill/deal/sellout yet, but I’m sure there’s some scary stuff in it. One thing stated in the deal is that if lawmakers fail to reach a deal on the second round of cuts, The Pentagon’s budget will automatically be cut by $500 billion.

All I can say is that this deal made it possible for all of the politicians to pass this issue off once again until after another election. OK, they avoided default, but let’s be for real, the credit agencies can still go ahead and down grade the United States.

Which in turn will cause interest rates to go up for everyone.

That is what the cost will be for the American people. Higher rates in a time when the economy is in the toilet (and will remain for some time), unemployment is at 9.2% (until the July report comes out on Friday) and the financial future of this country is still unknown.