Obama’s “New New Deal” Will Redistribute Wealth Of Shrinking Economy

The last couple weeks may well be a harbinger of things to come, as the people Obama promised to tax heavily continue to pull out of the market.  On November 4, the Dow closed at 9,625; today, it was at 8,497.  That means that the market has lost nearly 12% of its value since Obama became President-elect.  Hardly a measure of confidence.

The market spoke rather clearly on November 5:

NEW YORK, Nov 5 (Reuters) - Wall Street hardly delivered a
rousing welcome to President-elect Barack Obama on Wednesday,
dropping by the largest margin on record for a day following a U.S.
presidential contest.
 The slide more than wiped out the previous day's advance, the
largest Election Day rally ever for U.S. stocks.

Now, this wasn’t at all unexpected.  On October 24, I wrote an article titled, “Investors Ready For Dramatic Sell-Off If Democrats Win.”  A few days before that, I wrote an article pointing out that “Actual Job Creators Favor McCain 4-1 Over Obama,” which – among other things – points out that “74 percent of the executives say they fear that an Obama presidency would be disastrous for the country.”

The people who invest, and create job opportunities, and build the economy, don’t want to have their wealth redistributed.  Would you want your wealth redistributed?

Democratic apologists point out that Obama promises on a meager jump in the top federal tax rates from 36% to 39%.  But that “insignificant” 3% comes right out of peoples’ profits.  It sounds a lot worse when the reality is understood: when businesses that had been making an 11% profit are now reduced to an 8% profit.  Or an 8% profit reduced to a 5% profit.  And Obama promises to increase capital gains taxes and several other taxes that will impact upon businesses and the investment climate that supports business.  How hard are job creators willing to work to experience a diminishing return on their time, labor, and risk?

Time Magazine – a publication that has gushed over Obama for months – has a new gushing cover:

It should frighten you.  FDR was no “moderate.”  He presided over a terrible time for the country, and – while he was a popular figure because of what he tried to do – his actual economic administration has been widely recognized by economists to have been a failure.  Studies have demonstrated that the average depression lasted only four years; but for some reason the Great Depression dragged on and on and on under FDR’s governance.  By 1938, after more than four years of FDR, the effects of the Depression were actually much worse than they had been when he first took office.

As an example of the new realizations regarding the 1930s, UCLA economists argue:

Two UCLA economists say they have figured out why the Great Depression dragged on for almost 15 years, and they blame a suspect previously thought to be beyond reproach: President Franklin D. Roosevelt.

After scrutinizing Roosevelt’s record for four years, Harold L. Cole and Lee E. Ohanian conclude in a new study that New Deal policies signed into law 71 years ago thwarted economic recovery for seven long years.

Even the common man’s sense has largely been that World War II had more to do with getting us out of the Depression than FDR’s New Deal.  It certainly did get men who had been standing in bread lines put to “work.”  And as the nation coalesced together and began to pour resources into building weapons, factories that had been idled came back on line, and innovation increased to match the technological development of our enemies.  And certainly, the fact that, when hostilities ended, the United States alone was not reduced to rubble had a great deal to do with helping our economy surge forward.

But by that thinking, anyone who criticized President Bush’s wars in Afghanistan and Iraq is correct only insofar as we need an even BIGGER war.  For Obama to truly be like FDR, we need to have a devastating Depression that drags on for 12 years while incompetent liberals continue to tinker, and then we need slug it out in World War III against Russia and China.

So pardon me for looking at the “New New Deal” FDR-lookalike Barack Obama and shuddering down to the marrow of my bones.

We’re watching the market beginning to go down the slide.  It’s going to go down a lot more.  And fear over Barack Obama’s policies is going to have a lot to do with the lack of confidence that keeps investment from pouring back into the economy.

The picture is far more frightening than the story the media is telling: there are more than $700 trillion in derivatives in the global economy.  That’s far more than the total currencies of all the governments in the entire world.  As one writer puts it, “In other words, every dollar of insurance on bonds issued by some deadbeat governments and corporations is leveraged 200 times!”  We’ve got a time bomb waiting to explode.  And we put a lot of the people who created that time bomb in the first place in charge of fixing the mess they themselves created.  People like Obama’s National Finance Chair, Penny Pritzker, who was at the epicenter of the subprime loan scandal and once paid $460 million to stay out of jail.  People like Jim Johnson, Franklin Raines, and Jamie Gorelick, who pocketed over $300 million from Fannie and Freddie while juggling the books so they could get their bonuses.  People like Barney Frank, who claimed that nothing was wrong with Fannie and Freddie and the housing market they supervised, and repeatedly fought off President Bush’s efforts to regulate them at time when the crisis we are currently experiencing could have been averted.  People like Charles Schumer, who exemplified the sheer hypocrisy of the Democratic Party with his blaming others for what he himself did.  People like Joe Biden, whom two major studies said shared direct blame for the foreclosure disaster because of legislation he championed as the Senator from banking-capital Delaware.  And people like Barack Obama, who embraced more contributions from Fannie and Freddie – and from scandal-plagued finance institutions such as Lehman Brothers than anyone during his short time in the Senate.  Now all these people have been entrusted with fixing a mess of literally global proportions; a mess that they in large part created in the first place.

And Barack Obama wearing the “New New Deal” mantle of FDR’s Panama hat, glasses, and fancy cigarette is not going to make that time bomb go away.  In fact, it may be the very thing that brings the whole house of cards come crashing down.

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11 Responses to “Obama’s “New New Deal” Will Redistribute Wealth Of Shrinking Economy”

  1. sportsone234 Says:

    I saw the cover and wanted to heave!

    Let’s see we have BHO as our savior, as JFK, and now as FDR. Give me a break. This isn’t even laughable, it’s tragic. They’ve got to be mainlining the Kool-Aid over at Time.

  2. Time Rag Reader Says:

    Time is a gutter Rag. It is Obama’s biggest sponsor and when I read the November 17th edition it forcefully reminded me what a human being should not be. What else do you expect from a combination like Time and Obama?

    The 52% will have a rude awakening when the hero falls!

  3. Anonymous Says:

    I sent this to my family and friends. The stats you give stagger the mind. Many I know have been preparing for disaster for months now.

  4. Michael Eden Says:

    sportsone234 pretty well sums up the “glorious Fuhrer!” imagery that mainstream media is employing. The thing I personally loathe and fear the most is the media propaganda campaign (more than Democratic control).

    The “staggering stat” is probably the derivatives – $700 trillion. We are talking make believe paper trillions, and if that money vanishes, it will be as though the real money had been tossed into the fire. Already, the biggest problem re: the financial meltdown has been the fact that the bundled mortgages were then leveraged up to 60 times. It isn’t the fact that people aren’t paying their mortgages on hard assets; it’s that those mortgages are leveraged to the hilt, and that paper suddenly has no value.

    Our economy is truly a house of cards.

  5. Time Magazine Announcement Says:

    It’s official then Folks. Rejoice your King was born November 4th 2008 and Paradise awaits all inhabitants on earth. It’s all in Time Magazine November 17th edition, and I shall quote:

    Leader of the Angels Nancy Gibbs announced: “Some Princes are born in Palaces. Some are born in mangers. But a few are born in the imagination, out of scraps of history and hope. Barack Obama … Remember this day, parents told their children as they took them out of school to go see …”

    Wise Man Joe Klein writes under the Headline of Passing the Torch: “Obama’s victory heralds a new generation of leaders – and an America that is still taking shape”. I suppose he means what Joe Biden referred to as Barack’s America; or we can from now on call it Bamerica.

    Finally Chief Wise Man and Senior Angel [also Managing Editor] Richard Stengel cannot contain his joy at them having predicted it so accurately two years ago. “Ideas Matter,” he says. “In an exceptional election,” he waxes and added: “The fact that people around the world woke up to learn …” leaves him speechless with joy.

    Hark then Folks and hear the Angels sing, your King was born this day. Next year January 20th the sun will rise in the West and there will be no more South or North Poles. Paradise will extend from West to East and no more Poles to part the Globe. At last all People are Free: One Nation, one People, all the same, Paradise on Earth. Rejoice at everlasting Peace and Prosperity for all, sayeth the Messiah!

    Thank you to Time Magazine!

  6. Michael Eden Says:

    We are truly in the last days, and all this praise-a-thon of the wonderous (but false) messiah Obama is just the proof in the pudding.

    PM Gordon Brown praised Obama’s election and said, “Today’s challenges are birth-pangs of new global order.” One world government, just like Biblical prophecy buffs have been screaming the Bible teaches for well over a century. The beast is coming. And he will be welcomed as a hero and a savior (Rev 6:2; 13:1-5).
    http://www.thepeoplesvoice.org/TPV3/News.php/2008/11/12/gordon-nwo-brown-said-today-s-challenges

    It is remarkable, to actually see it beginning to happen.

  7. It’s Time and Me again Says:

    I have another juicy bit from Time Magazine November 17th Edition to make Sportsone234 heave some more.

    First position goes to Nancy Gibbs again where she said: “Barack Hussein Obama did not win because of the color of his skin. Nor did he win in spite of it. He won because … blah blah blah.”

    Managing Editor Chief Angel and Head of the Wise Richard Stengel offers a slightly different view, and I quote: “We will probably be a majority nonwhite nation by the year 2042. In a very real way, Obama is the face of the new America.”

    Do these guys have anything other than race on their minds?

    Ugh, I forgot Time is a small tentacle of one arm of a Colossus Monster that stand to benefit from Obama’s redistribution of Wealth. Maybe they are gearing themselves to be a major recipient.

  8. Just a thought? Says:

    I have just visited the site http://www.thepeoplesvoice.org that you mention above and found it very interesting. You seem to be able to find everything on the Net.

    That reminded me of something I have wanted to know but I forget when I am dialed in. How would you like to do an article some day on the Time Rag and all the subsidiaries in the whole Colossus that owns them? That is a massive conglomerate that stands to benefit greatly from the Man they wanted to be President and World Messiah. I imagine they will make billions out of their Chosen One.

    How about letting us know? I wish I could do it but I only know the little bit you taught me about the Net in your columns.

  9. Michael Eden Says:

    I am in the process of transitioning away from hard-core politics. I went to work blogging to try to warn as many people as I could about what I saw in Barack Obama, but the country went and made him their guy anyway.

    Now I see a disaster of biblical proportions coming, and am much more interested in the “biblical proportions” stuff. I am therefore starting to transition to religion.

    I think it will be interesting to see whether the mainstream media DOES benefit from Obama, given the fact that the New York Times is on the verge of bankruptcy, and the LA Times isn’t too awful far behind. More and more people are just abandoning mainstream media altogether.

    My view is this: the country will stay in liberal hands until the country is near ruin because the media is a propaganda branch of the DNC. It is nearly impossible to deal with the fact that 80% of the media is totally biased for one side and against the other. The media will continue to serve as apologists for the liberal agenda, and the public won’t know about disastrous policies until after it’s too late.

    I don’t doubt for a second that Time and those who own it are corrupt. I don’t doubt it for a second if they are out there trying to influence the public to essentially give them money in the guise of “journalism.” And I certainly view Democrats as giving money and power to their media propaganda lackeys. I look to see the Fairness Doctrine as a means to that end.

    The media must be completely discredited as any source of news. Nothing can change until they are.

  10. Coenraad Says:

    Dear Michael

    This is a personal note to say thank you and you don’t have to post it. I don’t know what will be in it or how it will end. It will come ‘’out of the keyboard’’ as I go along.

    It is like a good book, like Andersonville, it is so good that it saddens you to page over and find it is the last page. But, like the book, you can keep it next to you to page through the memories, or read it again and again.

    I first stumbled into your site after I had just tired of FoxNews. You may recall I said I was writing in with trepidation and that I didn’t want hate mail. Since then you have taught me how to surf the Web; you have taught me many other things too. I treasure your dry humor, your impatience with those who deserve that, your warmth to a stranger and the hospitality at your Blog. Thank you for your fierce unfailing defense of our Christian Faith.

    Way back I believed in an America that would never falter, stumble or fail; in recent times I was shocked to feel the fear of having been wrong or too idealistic. You have showed me that I can continue to hope.

    Whatever road you take, I know you will walk with God. Whatever you do, I pray for His blessing on you; whatever happens to us in the future; you have been a good friend. I think I will end on this note but keep the book at hand. You must make some time to read Andersonville and let me know; you may use my email.

    From me, Ole Tennessee, Old Tennessee, Ole Geogi, Old Georgia, Old Man River, Mack, Eddie and Doc and the boys, Amused in GA, Amazed and Amused in GA, Grandpaw GA everyone who wrote in to take a punch at the Time Rag, NoBama, Flobama, Wingman, and many others: thank you out of the depth of my heart. You were there for us when we needed you.

  11. Michael Eden Says:

    Coenraad,

    I appreciate and thank you for all your great comments, and none more than this one.

    My faith in America has been shattered, too. And – coming from a veteran who has fought for her – it’s been painful. My vision of America has been shaped by my love (a love we share in common) for history, and of a realization that, warts and all, we have been the most beautiful country in the history of the world in the years since the Pilgrims landed.

    The picture our adversaries paint of this country is a grotesque fun house mirror view that sees the nation as ugly as it can be.

    And, sadly, those voices – the “God damn America!” voices – won this election.

    I now realize that in two years, the Congress may well be back in Republican control; but it won’t be because we are a bad people. It will merely be because the Democrats and the media couldn’t deliver on their socialist vision, and an electorate that has become amoral will turn on them, too. We’ve become an ignorant and bad people, and the nation that votes for and sows disastrous policies will ultimately reap the whirlwind. Our greatness is in the past. We are also a propagandized nation, and democracy itself is in question.

    But my faith is ultimately not in America, or even in the America of the past, but in the God of the Bible, and in the Son of God who is faithful and unfailing.

    To paraphrase Isaiah 40:8, “The nations wither and the nations fade, but the Word of our God stands forever.”

    I see the last days coming. I see the Bible’s prophecies being fulfilled in my lifetime. I see the hand of God. And I am not afraid or dismayed.

    The beast is coming, just as the books of Daniel and Revelation foretold. But ultimately that means that the glorious Christ is coming, too!

    As the book of Revelation ends, “Amen. Come, Lord Jesus.”

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