Tuesday, February 2, 2010
National Economic Suicide
President Barack Hussein Obama did not so much propose a budget as a pact for financial suicide as a nation. The largest budget ever suggested, creating the largest deficits ever encountered, the Obama plan offers three potential options- none good. The US could face stagflation with unemployment continuing to be high and potentially rising. We could be "lucky" and like Japan find ourselves in a cycle of deflation where domestically produced goods could nominally cost less not because the dollar is worth more but because everything in America will be worth less. The most alarming specter and one I have previously warned of that is increasingly likely is hyperinflation with a devalued dollar having less and less purchasing power. In the extreme, hyperinflation has produced the Weimar Depression which led to the rise of Hitler in Germany and today's Zimbabwe "prosperity" where it takes a wheelbarrow of money to buy a loaf of bread. No one who has ever gained power and position can be as economically naive as Obama appears- this destruction can only be deliberate.
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