Thursday, November 15, 2012

Obama Wins (shocker) but where does he go from here?

Its been a while for me putting pen to paper, in fact it will be seven months & days days from now between posts and a lot has changed since. Nothing has changed in the grand scheme of things thou, not with having re-elected President Obama. Had it been Mitt Romney would it have been much different? I don't think so, but it couldn't have gotten much worse either. For full disclosure I'm not an anti-Obama guy. I think hes grossly under-qualified for the position and has gotten in way over his head. With that said, as i have stated many times on this blog, i think too much disinformation has been put out in efforts to soil the President and many of them are gross exaggerations - like this obsession with him raising taxes & running up the debt at a record pace.

Plain and simple, Obama has not raised taxes across the board like most think he has, in fact hes been a tax cutter (if you dont count the tax on tattoos parlors and tanning bed companies). Now with that now being said, that will dramatically change over the next few years as the Bush Tax cuts are set to expire and he has stated taxes will go up for the wealthy. Then factor in Patient Protection and Affordable Care Act (Obama Care) and you are now talking about sweeping tax hikes, but to this point the narrative of him being a greedy socialist tax whore has been blatantly false.

The Debt? Hes run up the credit card at an alarming rate, but not much more than his predecessor George W Bush did in his eight years before Obama's election. When President Bush took office the National Debt stood at 5.7 Trillion, when he left it was 10.6. So when Obama took office he entered with the 10.6 Trillion, as of this morning it stands at 16.2 (bear in mind that 3/4 of Obama's first year of office was under a GWB budget). So nominally, Obama will easily be the biggest debtor in our nations history but he will will probably "only" double the debt, just as his predecessor did before him.

So, where does that leave us? I think we are in for another recession. The President will have the veto pen and i think if everything is left in place, economically its going to be a long and harsh recovery of virtually no growth. Jobs will not be plentiful and incomes will continue to be slashed through a combination of: lack of work, inflation and debt at every level, public and privately. If his broaden agenda is brought into focus and realized things will be worse. Cataclysmic economic meltdown filled with bread lines and riots in the streets? No. But stagflation circa mid 1970's? Yes.

Hopefully, the administration understands the situation we are in and does its best to curb the rising tides that are on the horizon. If not, Obama's legacy will be nothing short of a an economic dead zone. A presidency that inherited an economic crisis that was undoubtedly dire but after a stabilization, this was a regime that failed to turn the momentum around and instead kicked out its arms every-time it tried to get up off the floor.  An 8 year window of high unemployment, economic decline via the continued assault on the dollar through currency manipulation and reckless spending. "Hope" and "Change" were the buzz words of '08 and they were empty words based on the results of the last four years. Lets hope for some change in the next four.