The Economy is Improving!!!

The seas have parted the end is in sight! Our government has spent over $3 trillion and according to sources, it's working. CNN has reported we only lost 345,000 jobs in the month of May which is a dramatic slowdown. Obama does know what he's doing!

Believing it yet? Every channel, every newspaper, our government has said everyday things are improving! Is this factual or just more propaganda? Have you noticed when the government wants to reach into our collective pockets, the economy is the worst they’ve ever seen? Yet when they have the money and it's being spent, the economy is improving! When Owe-bama needs more money or to raise taxes which song will he sing then?

Don't we as Americans deserve the truth? It was a lie when he said this is the worst crisis since the Great Depression and he lies when he says the economy is improving. Is Obama learning as he goes or does he have a plan? It's obvious what he's trying to do. He’s trying to destroy our monetary system and I'll prove it.

Remember back in January, Obama was using every channel he could to say we need to pass this stimulus bill IMMEDIATELY to avoid catastrophe ? Obama and his economic team said if we don't pass this stimulus bill we will see unemployment rise to 8% by the end of the year and would be close to 9% in 2010. We’ve just hit a 9.4% unemployment rate and we’re not even half way through the year. Below is a graph from April that came straight from the White House on employment in January. As you can see, in April we were at 8.9% unemployment rate.

What does this mean? This means, by the White House's own admission, we would have lost fewer jobs if they would have done nothing. It vertainly didn’t save any jobs. Also, if you look at his deficit projections, we’re only 4 months into his presidency and he's already over $100 billion off of his own numbers! For the devout followers of Owe-Bama parroting the phrase “he inherited this deficit” look at this next graph. In light red is the White House's estimate and in dark red is the Congressional Budget Office's estimate.

We're only four months into Obama's presidency and his deficit estimations have already been wrong by more than $100 billion! Keep in mind, these numbers are saying that unemployment would not have exceeded 8% this year and the economy would start to see the upswing at the end of the year. Both won't happen. The White House obviously wrote their budget out in pencil if not crayon. (FYI- graph includes spending for the Iraq and Afghanistan war)

Ben Bernanke, the Federal Reserve Chairman, said last week one of two things will need to happen now- the government will need to cut spending or taxes will need to be raised. I am in no means a financial guru but if you read my past posts I said this would happen! From the very beginning Obama wanted complete control over everything. Nationalize healthcare, nationalize the banking system, nationalize the auto industry, etc. Once again, it doesn’t take a genius to know when the government spends and borrower the amount of money at historically unprecedented rates, we will be hit with the huge wave of inflation that will send this crisis to an all new high. Why would Obama do this? He’s a smart man. When the dollar is worth nothing and our monetary system has been destroyed he will be in control.

We'll assume Obama will not decrease federal spending. Why is a budget deficit a big deal anyway? As I look at my 3 week old son and 18 month old daughter I can t help but think what all of this means to them. Our kids will be paying this deficit back for years to come through higher taxes and significantly lowered standards of living. Honestly, I think taxes will be the least of their problems. The government take-over that promises to ensue will rob my kids of all freedoms we take for granted today. The chart below reflects what our deficit will be as compared to GDP without Owe-bama's budget and what it would be with his budget in place. The Congressional Budget Office predicts the deficit will reach 82.4% of GDP with Obama's budget plan in place.

American's aren’t blind to what’s happening. A majority of Americans see the government takeover of GM as a scary predicament. The government has no authority to take over a company. The government has dumped over $100 billion into the auto industry just to see it go into bankruptcy (see a previous post predicting this event). Americans are seeing their tax money being wasted away. According to the Rasmussen Polls, Obama started off with 44% of Americans that strongly approved of him and 14% of Americans that strongly disapproved of him. Thus, he had an Approval Index on January 22nd of 30%. Today, Obama has 36% of Americans that strongly approve compared to 29% of American s that strongly disapprove. His Approval Index has shrunk to 7%.

Be prepared. There is only so much money the government can print. Only so much money the Chinese will give us to buy up our bad debt to keep their biggest customer in line at their cash registers. The unemployment rate will pass 10% by the end of the year. Inflation will start to rise towards the end of the year in which we’ll see the Fed react by increasing interest rates. I predict mortgage interest rates will be over 7% by the end of this year. There will be another push for a stimulus program because this time Obama will be right and we will be in the worst financial crisis since the Great Depression, and he will have put us there.