.Our economy is like a cancer patient who refuses surgery and simply takes lots of stimulants instead. The patient looks good for awhile, but the basic problems are not addressed:
- The government is too big
- Obama wants the government to do even more
- The health care plan is a vampire on the economy that will bleed it dry -- and destroy health care
- The national debt has doubled under Obama
- Just the interest on the debt is projected to become 50% of tax revenue in 10 years
- The government is still protecting people and companies against risk in the financial and real estate sectors -- causing more and more risk to be taken on
We will soon be in a situation where taxes can't go up anymore, the interest rate can't go up (or it will kill the economy), and tax revenues fall as the economy struggles.
The best the Fed can do will be stagflation. If they err, they will get either a depression or hyperinflation--and may get both at the same time.
Should we call our next currency the "new dollar" or just bite the bullet and call it the renminbi?
Again I ask, "If Obama was intent on destroying the US, what would he be doing differently?"
Here is a CNBC video about market volatility (tracked by the VIX) and risk of a recession in late 2010.