Tuesday, November 6, 2012

An Obama Win Means a Race To The Cliff

I see where Obama has been projected to win re-election.

Obama's Agenda
President Obama ran AGAIN with basically no agenda except raising raising taxes on the more well-off.  Yeah, there were a few promises made during debates but they sounded hollow.  Under duress from critics that he didn't have an agenda, the Obama campaign two weeks before the election put together a pamphlet which was a re-iteration of talking points or "same'ole same 'ole."

But you know Obama's heart and soul is all about expanding government, more government programs, more government intervention in the economy.  He really does believe that government creates jobs and is the solution to your problems!  He is 180 degrees away from the idea that the "government IS the problem."  Americans expect their presidents to govern from the center but Obama has so far refused to pivot to the political center even after his "shellacking" .  The American people have once again voted for the wrong man--but this time they voted for a well-proven failure.

Goodbye Pro-Growth Policies
I posted an agenda which I feel is a very good agenda for the first 100 days and 6 months for ANY administration in 2012. I wrote it thinking that Mitt Romney would win the election, but it's really a great and bold agenda for any administration. I said in that blog that if Obama won, I would leave it posted as a sort of "monument of ideas" to use as a benchmark to judge the next president's performance. But when you read that agenda, you will rightly see that the chances of the Obama administration doing anything close to those "pro-growth" prescriptions is slim to none.

The West Is Lost
The Western World is now "fast-walking" or even "jogging" toward collapse with Europe likely to first tip over into financial chaos. It may happen sooner than you think.  With Obama, the hapless amateur remaining at the helm, you can expect the following:
  • With the House of Representatives remaining Republican (along with 60% of governorships) and the Senate remaining Democratic, gridlock will remain a reality.  
  • Now we face a fiscal cliff with divided government.  Even if Republicans compromise on higher taxes, without entitlement reform, higher and higher deficits await.  Ironically, maybe the fiscal cliff is the only way to cut spending.  Otherwise, spending will never be cut.
  • No entitlement reform will happen under Obama.  But maybe I'll be surprised!   I want that kind of surprise!
  • Expect a recession at some point for any number of reasons including a financial crisis in Europe or a fiscal cliff.  With the US already running Trillion dollar deficits, then are we to expect mult-Trillion dollars deficits?    It's unthinkable to me.
  • More debt rating downgrades
  • A wall of new regulation hurting the economy (EPA, Obamacare) and exacerbating the possible fiscal cliff recession
  • More spending, more money printing, more regulation, more inflation, more stagnation, more poverty, more totalitarian "big brother."  For example, all of your medical data will soon be in the hands of Federal Government.  A government big enough to give you everything you need is government powerful enough to take away everything that you've got.
  • More taxes and a stagnated economy--forget any "pro-growth" policies.  Obama doesn't understand one iota of anything "pro-growth"
  • More hostility toward oil and gas (forget his inconsistent rhetoric) and more persistence with unrealistic "green" energy despite it's utter failure
  • More division and the wrong type of national leadership
  • ObamaCare administrative nightmare will be attempted to be implemented but will be a fiasco instead
  • Expect new attempts at disastrous "cap and trade" and the thuggish and unhelpful "card check"
  • More dollar weakness and a risk of rapidly rising inflation--even a chance of hyperinflation by the end of Obama's 2nd term thanks to Bernanke and "dovish" replacement from Obama.
  • With Obama's election, there's a suddenly increased chance of a new and bigger financial panic within the next 4 years.  There was a small chance that Romney's pro-growth strategy might have worked. 
I'm sure many of you think this is hyperbole, but most of the bullet items are the reality of Obama's first administration.  Why would you think the next 4 years would be different?

I fully expect Obama to double-down on his failed "statist" ideas which will rightly go nowhere with the Republican House.   Even if the House of Representatives compromise with the President on increased taxes and entitlement reform, taxes will be "front loaded" and spending cuts will be"backloaded" and therefore the spending cuts will never happen. 

Financial calamity and economic collapse can erupt unexpectedly.   Expect the unexpected.

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