If it is true, as Albert Einstein is alleged to have said, that insanity consists of doing the same thing over and over again and expecting different results, then President Obama and his advisors may well be channeling the great 20th Century physicist. After all, the President is neither chastened nor enlightened following the monumental failure of his multi-trillion dollar efforts to stimulate the economy by spending taxpayer money. As his September 6 speech at the Milwaukee, Wisconsin, Laborfest attested, he’s going to try it yet again.
You simply can’t make ends meet. You don’t want to spend more than you’re making, but the income is significantly smaller than the outgo. You’ve already tried using one credit card to pay off another — that didn’t work. Now you are rapidly sinking into a sea of debt, with no relief in sight ...
The U.S. Bureau of Labor Statistics (BLS) reported that the unemployment rate in the United States increased to 9.6 percent during the month of August. The BLS press release may have been tweaked by politicians, as it read that the “unemployment rate was about unchanged at 9.6 percent.” By “about unchanged,” the bureaucrats at the BLS should have written “increased from 9.5 to 9.6 percent.”
Just one week after James Bullard of the St. Louis branch of the Federal Reserve Bank released his August 6 paper declaring that “the U.S. is closer to a Japanese-style outcome today than at any time in recent history” (meaning that the United States will likely have decades of economic stagnation, which Bullard blames on “deflation”), the news media have taken up a chorus against the bogeyman of “deflation” to explain the need for further social spending by the government and more debasement of the U.S. dollar (causing consumer prices to rise through inflation).
Item: Treasury Secretary Timothy Geithner, as reported by AP/CBS on August 3, said that “it would be ‘deeply irresponsible’ for the Obama administration to support a wholesale extension of Bush-era tax cuts, including breaks for the wealthy.”
Real U.S. Gross Domestic Product increased at a far slower pace than previously reported, according to the U.S. Bureau of Economic Analysis (BEA), which reported that second quarter GDP increased at a 1.6 percent annualized rate rather than the 2.4 percent rate it estimated back on July 30. The lowered estimate means that another recession — the infamous “double dip” — may be just on the horizon.
After more than two years of intervention in the economy by the Federal Reserve, the economy is showing signs of sliding back into recession. This, of course, is precisely what sober minds — like Congressman Ron Paul and financial analyst Peter Schiff — have been predicting all along. But it’s news to the likes of Fed Chairman Ben Bernanke, who on August 27 pledged to take whatever measures are needed to jolt the somnolent economy back to wakefulness.