As of now, I am in control here, in the White House

Economy on the Brink of Double Dip Recession

It’s worse than anyone thought.

Economic growth in second quarter of 2011 is just 1.3 percent – a half percent less than expected – and the estimate for the first quarter of 2011 was revised downward from 1.9 percent to 0.4 percent – essentially no growth.

Technically, a recession is two quarters in a row of negative growth. You don’t have to be a mathematician to see that we are basically in a mild recession, since the economy has ceased to grow. With unemployment at 9.2 percent and growing, I’d say it feels like a recession to me.

Here’s what President Obama should do:

1. Fire his economic team. No letters of resignation. Fire them. They can all go to Harvard to teach.

2. Stop fundraising and campaigning for reelection.

3. Accept a temporary increase in the debt ceiling that Speaker Boehner is offering him.

4. Spend the next several months making drastic reforms to government that slash spending by trillions of dollars so that the deficit is under control and our economy has a fighting chance.

THIS IS BIGGER THAN YOU, MR. PRESIDENT.

What happened to all the nonsense about how you’d be a one-term president if you could just do some good in the world? Please, you’re just another politician, grasping at power like an alcoholic straining for a quart of bourbon.

YOUR POLICIES ARE A FAILURE. YOU MUST CHANGE THEM.

You have ignored the greatest peril to the economy – the deficit – while going about your merry way creating new regulations, changing the health care system at a cost of nearly $1 trillion and counting, and trying to boost the economy with a poorly crafted $800 billion stimulus.

IT HAS NOT WORKED.

Instead of shifting course, the president today spent a few minutes propagandizing on the debt ceiling. I won’t bore you with quotes. You’ve heard it before.

Here’s how Council of Economic Advisers Chairman Austan Goolsbee began his statement on the latest economic figures:

Today’s report shows that the economy posted the eighth straight quarter of positive growth . . .

This competes with “Other than that, Mrs Lincoln, how was the show?” for the prize for delusional avoidance of uncomfortable facts.

These people are are divorced from reality. Goolsbee is actually leaving the White House soon to go back to academia, where he can get some more experience living in fantasyland. Good riddance.

Mr. President, I’m rooting for you to change policies and succeed. Because I’m rooting for the country.

But I just know you won’t.

161 Responses to Economy on the Brink of Double Dip Recession

  1. With all due respect, Keith, you are an idiot, AND you are deluded — if you think that Obama can single-handedly solve the debt problem, given:
    – Millionaires and big oil retain their tax cuts, worth $300 billion a year
    – Interest on Republican presidents’ debt, worth $500 billion a year
    – A House and Senate at loggerheads on everything under the sun
    – Republicans spreading lies about the economy that violate arithmetic

    Don’t you know the mountain of debt requires a revenue increase? Such as a temporary tax INCREASE to make up for Bush’s tax windfall?

    • Sir, if the government took all the money from the rich and I mean all of it, that would not make a dent in our debt. The only way out of this mess is to put people back to work and generate income for the country and taxes for the government. That is the way America works, go do your homework and don’t call people idiots, it shows your lack of gray matter.

      • we do not want all their money . we want shared sacrifice i know this is a foreign concept to republicans whose motto is ive got mine tough luck for anyone else .

  2. Since when has Obama demonstrated any ability to read the tea leaves? Not after the 2010 elections. He is going down, he isn’t about to change course. Ideologues never do.

  3. There are those that say Obama is not a leader. I would challenge that statement and argue the point he is a leader. Obama is well educated in the Constitution of the United States, a focal point of his education. In his election campaign he told us he was going to change this country. Has he not done that? With 9.2 percent unemployment, 14 Trillion in debt and growing, Obamacare which will break this country. Our nations credit card being threatened for a down grade, is that not leadeship? It is clear to me he is a master at leadership, but where is he leading us? One does not have to be well heeled to see which direction we are going with this leader. He is a master of the spoken word and using it to rally those that are politically naive. He uses his golden tongue to convince the former his direction is the change this country needs, Socialism, destruction of the Constitution and centralized govenrment. I submit he is a great leader, of his own agenda, not that of this great country.

    • Obama is well educated in the Constitution of the United States, a focal point of his education

      So he says, anyhow. I have not seen brilliant analysis–like on Amdt 14–he asked his lawyers, he says, you know about the becoming a dictator thing. It bugs me that he was sold as such a world-class brain and never seems to sit and think or take time to call for huge research and then crunch it–or really get into anything! Those 1-2 hour meetings where he calls on people like Socrates or something seem to be about it.

  4. You are wrong…WE DO NOT WANT HIM TO CHANGE COURSE AT ALL.
    WE WANT HIM TO GO RIGHT OVER THE CLIFF AND DESTROY HIMSELF.ALONG WITH ALL OF THOSE AROUND HIM.

  5. There is absolutely nothing that obama can do to save himself at this point. He has proven himself to be a deceitful liar, and totally untrustworthy. Anyone who would believe a word from his mouth is insane.

  6. 1 Nov 2010 (original date)
    Folks,
    Obama’s GAME (Great American Marxist Experiment) is over, a failure. Marxism goes against the basic human instincts that freedom is a natural, God-given right, that what you make (or earn) is yours to keep, that family, not government, is the basic social unit. Democrats have historically been the party to raise taxes and increase the size of government, but Obama, Reid, and Pelosi have taken these mistaken policies to the extreme. Republicans, Independents, and Tea Party members will now be forever vigilant of the Left and we will vote.
    Tom Johnson,
    Republican & Tea Party member,
    Largo, Florida, USA,
    God Bless Reagan,
    opinionscribe.blogspot.com

  7. You are forgetting something. Clinton left Bush a huge surplus, 23 million new jobs created, $1.30 gal gas, and a very solvent social security trust fund. Then Bush and his evil Republicans squandered all this on their tax cuts for the wealthy and other breaks for the wealthy, an illegal war in Iraq based on a line. They destroyed our country and ran it into the ground all to help their wealthy cronies get wealthier on the backs of the middle class. Put the tax rates on the wealthy where Clinton had them you jerks.

  8. Excellant suggestions, too bad they will not be heard. You can expect nothing less of these results when you bite the hand that feeds you. While there are some markets, businesses and business leaders that should have received a slap upside the head for the way they ran their buisneses into the ground, taking on the job creators and treating them basically like crap from day one leaves you with the unemplyement rate where it is. Increased regulations and the unkown costs of Obamacare scare the hell out of business leaders, especially small business, the largest generator of jobs. If your not working, you can’t spend (unless your in government), so the government gets less tax dollars. Why is this so hard to comprehend? From day one of being sworn in, he has been negative to job creators, so this is the result. And lastly, by attempting to tax the rich more, it wont’ happen, that money will just leave this country, just like the jobs.

  9. What needs to be done, would be to revise the trade agreements which are keeping millions of Americans unemployed, permanently.

    But Obama will not admit that these trades polices have failed, he wants to rush thru another with South American nations which experts estimate will cost 200,000 American jobs from the outset.

    Without a change in these job killing trade policies, there will be no improvement in the employment outlook for the millions of unemployed Americans, and neither the Ds or Rs are willing to admit that truth to the American public.

    Corporations are floating in money and if tax cuts for the wealthy created American jobs we would not have millions of unemployed Americans.

    Taxes are at multi-decade historic low levels, and that has been true since the GW Bush administration.

    Therefore I expect nothing to be done by Obama, just as in the first three years of his administration he has attempted to distract the public with other issues, like health care reform and I expect that he somehow imagines he can continue with those sort of distractions to remain in office.

    So the obvious

  10. The only thing they are worrried about is there summer recess and Obama vacation to Martha Vineyard for his two weeks on the golf course.Hopefully none them will come back after Labor Day and the country will run just fine without them !!!!!

  11. “THIS IS BIGGER THAN YOU, MR. PRESIDENT.”

    Nonsense, nothing is bigger than Barack Obama. If you don’t believe me, just ask him; he’ll tell you.

  12. You are right – but the message needs to get to the media which never vetted this klutz. The media is the only reason Obama gets away with not even proposing anything. In 54 years I have never seen the bias this strong – it is SHAMEFUL what is going on in our media!

    • Oh how selective the delusional are with their facts and recent history. It seems to me that as a rule of thumb, whenever someone on the right accuses Obama of not showing leadership, he probably actually is and it scares them.

      Let’s recall the recent history –

      April 2011 – Obama lays out a goal of cutting $4 trillion over 10 years (what is essentially in the current “deal”). This leads to the “gang of 6 talks” in the Vice President’s Office
      May 17, 2011 – Tom Coburn leaves the talks
      May31, 2011 – the House symbolically votes on a clean debt increase – all Republicans vote against.
      June 23, 2011 – Eric Cantor leaves the talks
      June 27, 2011- Obama reconvenes congressional leaders
      July 2, 2011 – Boehner meets with Obama and a framework for a “grand bargain” is discussed.
      July 9, 2011- Boehner leaves the talks
      July 13, 2011- Cantor tries to push a small debt increase instead of a “grand bargain”
      July 15, 2011 – Boehner returns to talks with Obama
      July 18, 2011 – Coburn returns to the talks
      July 19 – Cut, Cap, and Balance passes the house
      July 21 – The Boehner-Obama negotiations are leaks and Boehner leaves the negotiating table again.
      July 22 – Cut, Cap, and Balance dies in the Senate. Obama makes his first public statement about the negotiations. He outlines what he offered Boehner – his compromise/balanced position http://www.dailykos.com/story/…. He calls leaders back at 11:00 AM the next day, and NO mention of the fire and brimstone that will follow default.
      July 24 – Obama makes another statement outlining the balanced approach he advocates. He does mention the consequence of default, but that comes at the bottom of his statement – again no panic, fire and brimstone (http://www.cnbc.com/id/4388853

      It is abundantly clear that the stick in the mud has been Boehner’s Tea Party flank, that is willing to take the ship down with it on principle and a sensational media environment. Jim Cramer has no idea what he is talking about.

  13. So let me get this straight…. To expand GDP you say that we should cut government spending in a time when consumer spending is at its lowest? Did you fail 8th grade economics or something? The supply and demand graph is the most basic, im missing a chromosome but can still understand it graph on the planet. You tea parties need to get your heads out of your asses and go read a book.

  14. Too late. The only thing to do is prepare for the worst and hope for the best.
    Got land? Buy as many fruit trees you can afford-make sure they’re suited for your growing zone. Insist that your kids and grandkids learn how to grow food, round up your church members, close friends, ect- start a community garden . Most importantly, check out Howard Ruff’s book ( ask your local library to order it): How to survive in the 21st Century.
    No matter what your income is, you’ll find practical advice that will come in handy during the hard times to come.

  15. President Obama was elected as a pragmatic progressive. You want him to change his politics so he becomes a conservative republican. The deep recession he inherited was caused by the policies you espouse as was most of the debt. I have another idea. Try to beat him in 2012. I don’t think you can.

  16. how will huge cuts in spending help our economy ? the employmeny rate will rise and the gdp will fall . Whay am i missing ?

  17. Unfortunately he doesn’t have the balls. He is just a timid, cautious politician whose political career will soon enough be over. Unfortunately, we will still be paying the price for his ineptitude.

  18. Kevin,
    This is one of the most concise and accurate summaries of what is wrong with this administration that I have read. Congratulations you have it exactly right. This president’s reign has been a disaster that will take years to straighten out.

    Regards,

    Bill D.

  19. Not. Gonna. Happen.

    Ever.

    June 17, 2011

    To the Editor:

    As I read Mrs. XXXXXXX rebuttal to my letter I could not help but recall that movie The Titanic by James Cameron. In my minds eye I can clearly see Mrs. XXXXXX standing outside the wheel house cheering on Captain Obama as he steers the ship of state not only into the iceberg, but then, throws the ship into full reverse to hit it again, just to be sure the ship is absolutely going to sink. Whether it is Obama, Cuomo, or even Weiner they are all reading from the same playbook written by liberal democrat after liberal democrat. Spend more, promise more, borrow more, regulate more, fight wars only when “we” run them otherwise wail like stuck pigs against them, and last but not least, don’t mind the stench of hypocrisy, oh no, we must full our noses with as much sanctimonious “but its for the children” as will fit to mask the stench.

    My life experience guided by what I know to be true says we are in deep trouble and I’m trying to ring the alarm with these letters. If all of you want to live out the last days of prosperity in placid ignorance, you have that right, because better men, and these days women, from our local police and fire force’s right on up to every soul in the United State Military step into the breach to give you that opportunity. I recommend a hot cup of tea and the liberal media of your choice that does not challenge any assumption you have been taught to bleep just like the Phd XXXXXXX has done with such seeming certitude along with your thoughts in the same paper you know hold in your hands. I say nuts to all of it. We are trillions in debt and deficit and our problems from not having opened Yucca mountain to secure nuclear waste to the ATF letting thousands of guns in to the wrong hands only increases my angst.

    We are free and will remain so because we cherish debate and the ballot and we can alter our course through that ballot box. We have for almost three generations accepted the notion that the liberal philosophy in either how we fight wars or how we live our daily lives is the answer. To accomplish this, both political parties have engaged in the “you scratch my back, I’ll scratch your’s” act. This “go along to get along” attitude has led us to a decade of combat against one side of the same muslim/arab coin, a destroyed dollar, and diminished standing among the free nations of the world, and a fantasy land interest rate environment that only Bozo the Clown Banker could love. Americans don’t lead by bowing to dictators or by apology. They hold their hand out and say to the world that we will do our level best to help you realize your freedom, but will not give up our freedom to be safe. Because as Benjamin Franklin once said a nation that is willing to give up its freedom for security will soon have neither. I may not be the smartest man, but I think old Franklin knew a thing or two about what it took to get the freedom that we seem so willing to give up and hand, our children, my children, the MasterCard bill for.

    Joe Doakes

  20. The problem with Obama is that he is an ideologue…
    He believes in wealth redistribution to buy votes…
    Liberals crow about trickle down economics being voodoo…
    How’s that trickle up economics working out???
    I’ve never worked for a poor man
    You can’t spend 25% of GDP without killing the economy with taxes…
    He really has no clue on how to lead, govern, and create incentives to economic growth…
    The only thing he knows how to do is demagogue, utilize class warfare, and allow crony capitalism…
    He is the most unqualified imbecile to ever occupy the White House…
    The election of 2012 cannot occur soon enough…

    • it is easy for you to forget that george w bush was a much bigger imbecile. where were those weapons of mass destuction ? do you remember bush pretending to look for those weapons in his office while our boys were getting torn to pieces in Iraq ?

  21. Good piece. However devoid of the reality that Barry is stepping on the gas as always and going over the cliff without a chute All your rooting will NOT change that. So, I’m rooting to get rid of him in . Remember that he is Saul disciple, taught his principles at Harvard. Also remember New York 1975, or maybe you’re too young to remember, I sure do remember and how it went BANKRUPT! Welfare should be WITHDRAWN from our society, too many WELFARE CADILLACS being driven in this country!

  22. You are wrong, wrong, wrong! Cutting government spending is the worst possible action during a recession or economic slowdown. We should be increasing spending and cutting taxes to stimulate the economy — and do it right this time!

    The stimulus package didn’t work as well as it should have because it was too small, too slow to take effect and too tilted to tax cuts for people who don’t need them or spend the money with the extra cash in their hands. If we hadn’t done the stimulus, the official jobless rate would be over 10 percent instead of 9.2 percent.

    How can you stimulate the economy by laying off hundreds of thousands of government workers? Haven’t any of you ever read Keynes? Jeez!

  23. Obama doesn’t have an economic team anymore..goolsbee is leaving…everyone has left….who is advising obama?

    No one…this is obama’s disgusting mess….only thing we can hope it’s the idiot “educators” that came, up with this diseased version of keynesian obama nomics learn that on the real world….their idiocy doesn’t work….

    Obama’s “I won” strategy doesn’t work…..

    Will they learn? Probably not…..their arrogance knows no bounds…..

  24. Obama has been described as having “unbounded confidence in his own ideas…”

    Polite way to say he’s arrogant and always thinks he’s right.

    As obama goes around still vomiting his “fair” nonsense…the nation keeps screaming for washington to cut their spending.. .has there ever been a more clueless president?

    The downgrade is coming anyway…….and the only people that will look good will be the tea party members as they say “we told you so”

    The last thing this nation wants is to send more money to the parasitic organization that caused this mess….

    How clueless can washington be?

  25. Fantastic editorial. You’ve condensed it all down to four simple points. Points we all know Obama and his entourage will IGNORE COMPLETELY.

    God help us all. I believe we are at the doorstep of a great depression where cash will be king. For starters, assets have all been devaluated. From our homes to our stock portfolios–all slashed. I’m putting my money on deflation and asset devaluation (which means I’ll hold CASH), and then plan on inflation to follow–but I’ll be ready with CASH to buy assets when the depression really hits when cash will be king.