Thanks Barack… US Growth Rate Likely to Fall Below 1% in 2nd Half of 2010
Posted by Jim Hoft on Sunday, September 5, 2010, 10:35 PM
Obama is the worst jobs president since the Great Depression. The Obama-Pelosi economic plan resulted in a cumulative 7.5 million jobs deficit. By every objective measure the democrat’s Trillion dollar stimulus bomb was a complete disaster.
Barack Obama and Nancy Pelosi tripled the national deficit last year by nearly a trillion dollars – something unheard of in our nation’s history.
After an unheard of record deficit last year of $1.4 Trillion the economy is on track to experience a $1.3 Trillion deficit this year.
Instead of focusing on the economy the past two years the radicals in Washington beat up on business and rammed through an unpopular nationalized health care entitlement program.
Now there’s this…
Top economist Nouriel Roubini told colleagues this weekend that the US growth rate will likely fall below 1% the second half of this year.
The Telegraph reported:
“The US has run out of bullets,” said Nouriel Roubini, professor at New York University, and one of a caste of luminaries with grim forecasts at the annual Ambrosetti conference on Lake Como.
“More quantitative easing (bond purchases) by the Federal Reserve is not going to make any difference. Treasury yields are already down to 2.5pc yet credit spreads are widening again. Monetary policy can boost liquidity but it can’t deal with solvency problems,” he told Europe’s policy elite.
Dr Roubini said the US growth rate was likely to fall below 1pc in the second half of the year, despite the biggest stimulus in history: a cut in interest rates from 5pc to zero, a budget deficit of 10pc of GDP, and $3 trillion to shore up the financial system.
The anaemic pace compares with rates of 4pc-6pc at this stage of recovery in normal post-war recoveries.
“We have reached stall speed. Any shock at this point can tip you back into recession. With interbank spreads rising, you can get a vicious circle like 2008-2009,” he said, describing a self-feeding process as the real economy and the credit system hurt each other.
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Published May 24, 2012 at 8:46 pm - 91 Comments
chemman commented:
If GDP is really less than 1% for the second half of the year then the deficit will be much higher than the estimated 1.3 trillion.
Granny commented:
chemman, deficits are always much higher than the estimate – sort of reminiscent of the Big Dig.
Estragon commented:
Instead of helping, the Obama-Pelosi-Reid policies have dealt blow after blow to the recovery, to the point of threatening to kill it altogether.
First they took the available money from TARP II and the ARRA (“stimulus bill”) and used it to save their union allies by buying GM and Chrysler, and allowing states to avoid austerity measures which would have cost public sector union jobs.
Then they imposed far-reaching new mandates and regulations on businesses and banking. And as a result, we continue to bleed private sector jobs while the public sector continues to suck the blood of the productive.
Businesses are sitting upon record amounts of cash now, retained profits from their own forced austerities. Normally, they would use these funds to expand with capital and human investments, but the Obama regime has created such a hostile and uncertain environment that they would be crazy to try it now. So they sit on the profits, which takes them out of play.
Meanwhile the banking and financial regulations threaten to do the same for the credit markets, drying them up – except for the “subprime” mortgage market, which precipitated the meltdown of 2007-08, which the feds insist must continue and expand under Fannie Mae and Freddie Mac, no matter the cost.
Allowing the Bush tax cuts to expire is, in effect, the largest single-year tax increase in US history, and something no sane economist would counsel in a recessionary environment.
America can survive a President who is a leftist, or one who is unqualified, or one who is a buffoon, or one who doubts America’s greatness. Having them all at the same time is trickier, though . . .
OneSTDV commented:
@ Jim:
Can you please add me to your blogroll?
Description:
This blog offers daily commentary on current events, politics, social phenomena, race, education, human biodiversity, the right/left dichotomy, and popular culture. The bent is unabashedly honest and anti-PC, with a conservative perspective. I support a meritocracy, free markets, and a wholly transparent view on the truisms of human behavior and society. The tone is academic, though not entirely so. The potential audience is anyone willing to view current events from outside the mainstream scope.
Militant Conservative commented:
Since I knew the President elect was a socialist/marxist anti American Anti Capitalist redistributionist. I started Hoarding food and monies myself. I already had ammo and guns and fuel and h2o. Now I have even gone to buying silver as his policies are going to make the physical dollar worthless. Mr. Obama you sir are the biggest presidential failure due to your radical associations and warped world view. The Capitalist society is rebuking you at every turn. Many are your former supporters that thought they were “liberals” that now find they are truely squishy conservatives. Your UN Amercican and know not the values and traditions that make/made this coutry great. It will be my great pleasure to outlive you so I may desicrate your grave as you have desicrated my country. powder is dry.
The Triguy commented:
Let’s say I’m an enemy of the US. Let’s say I’ve attacked before with the intent of detsroying the US economy to the extent that I can. Let’s say I first did this when the US economy was good and from that attack learned many lessons about the weak spots of the economy and how the US (particularly this administration) is likely (or not likely) to respond. Let’s also say the economy is in much worse shape now than when I attacked before.
Question: What would you do now knowing what the experts are saying?
Khan Krum commented:
“We have reached stall speed. Any shock at this point can tip you back into recession…”
Uh, “back into recession”: where the hell are we now?! Doesn’t Mr. Roubini mean fall into a depression? What sort of situation do we have to obtain to start calling this Hopenchange economy what it really is? We have 17% unemployment, less than 1% growth, deficits and debts too large to even imagine, etc. Seriously, when are we going to start using the D word?
Militant Conservative commented:
If you wish to see a leftist wingnut rant. follow this not so old thread:
http://gatewaypundit.firstthings.com/2010/09/coffee-party-canned-restaurant-owner-gives-leftist-group-the-boot/#comment-177968
He’s just plain twisted off. Let’s have some fun at the trolls expense. Good reading. powder is dry.
Militant Conservative commented:
The true number will not see daylight till AFTER the November elections on the 2nd. The third quarter earnings will post in the first week of November. Oops, do you think that will be Nov. 1st? I think not. It will be after the election on Friday when most are not watching. Bank on it. powder is dry.
Pawn commented:
Tri,
I think I would move to the United States and try to get a government job.
Seriously,
The answer to your “question” depends on your available resources. I think ideological and economic “enemies” have different objectives.
Economic enemies want less completion for resources for the benefit of their own.
Ideological enemies want power.
The US dominates the world in both. Any harm to the interests of the US do not directly translate to the benefit of our adversaries.
The greatest vulnerabilities of the US are related to oil and Israel. One is economic the other ideological.
Your turn.
Liberal Idiocracy Defined commented:
I’m getting really tired of people saying the stimulus didn’t work!!! It did too!! Using our tax dollars to pad the salaries of public sector union jobs across this great nation, saving hundreds of thousands, if not millions of them!!! Salaries usually paid for by local, state and federal tax dollars!!! In Cities, Counties and States bleeding from the loss of tax receipts due to all the millions of jobs lost in the private sector!!!
Oh, wait. That’s kind of like a snake eating its own tail, isn’t it….
Never mind.
kato commented:
Militant Conservative:
I hope you started stockpiling when that compassionate dope was in office because the crisis we are in occurred under his watch.
Bernanke, Paulson, Geithner were Bush’s boys. Hundreds of billions were thrown around willy-nilly in 2008. The first failed stimulus checks were mailed out in 2008. Government was picking winners (Goldman Sachs) and losers (Lehman Brothers) in 2008. The current Congressional investigation shows these clowns can’t — or won’t — explain the basis for their actions, probably because they were so irrational.
When Fannie and Freddie became awash in nonperforming loans, the compassionate dope revived the Federal Housing Authority, and now that agency is threatening to stick the taxpayers with billions in losses.
Obama has taken this crisis and used it for his redistributionist goals. But if you’re going to blame the economy on a president, then you’ve go to blame George W. Bush.
bigL commented:
Actually the best thing for the economy would be for Obama to announce that he is resigning.
all the indicators and facts would recover.
The Triguy commented:
Pawn,
The first two attacks on the World Trade Center were meant to bring down the economic system within the US. The terrorists even went so far as to short airline stocks on the second attack and made millions. They combined an ideological attack with an economic attack and succeeded way beyond what they could have hoped for.
Both ideological enemies and economic enemies benefit from an America that can’t respond whether it’s to economic or political adventures. As far as America leading in both the economic and the ideological world…let’s just say that just isn’t so anymore. Our biggest economic threat is not from the ability to gain oil (although it is a major threat, to be sure) but to a China that controls the purse strings which in turn allows them some leverage on the creation and implementation of our domestic and foreign policies. This is a classic example of both economic and ideological control serving the same purpose—elimination of an enemy.
As for oil, it can be taken by force or redirected into our reserves (and I’m not saying that should be the case) by other means. Printing money to keep the economy going (which is what we appear to be doing through this asinine stimulus programs) is a futile gesture that will collapse. There are far too many examples of this occurring throughout the twentieth century.
Israel is a not a political threat. It’s an excuse for our enemies (in this case Islam) to keep pushing the edge of the envelope in an effort to gain complete political domination. So far we have held that back through economic as well as political measures by being an economically strong America. Remove our economic strength and our military and then our political strength will soon follow. The enemies of America (not those who simply wish to gain a few dollars here and there against us) know this and are using that knowledge to develop their overall strategy and the specific tactics they will use to persevere and win in the long term. And whether they win by fighting on the battlefield, the street corner or on the stock exchange floor doesn’t matter to them. As my old baseball coach in college used to tell us, “It doesn’t matter how many hits you had or how many errors you make. A win is still a win.”
kato commented:
Triguy:
We know one enemy of America who is winning on the stock exchange floor — George Soros.
Militant Conservative commented:
kato
September 6th, 2010 | 8:30 am | #16
I have enough to weather the first year and a pile of cash and silver. My wife sees the edges of this and humors me. My father in law supports me and understands. this is going to get ugly. Ugly I have prepared for. Ugly is what I’ll become to save my country / family. The left has no ides how nasty the right will become. We skin and gut our dinner. The left orders from resturants. get my drift. When it hits the fan I know where my loyalties lie. powder is dry.
chris edwards commented:
Funny how they still blame Bush, allthough he now looks great it is not a real comparisome, he was average at best, Carter was the root cause of the banking crash, and the secialist new super dooper banking laws, no accident either, destroy the midle classes and take the country has worked for the left for 100 years, bankrolled by wall st of course. Arrest the assets of Soros, Gore Gates etc and pay off some of that debt, halt imports from China first band crash their currency, deficit over.