In the history of mankind, many republics have risen, have flourished for a less or greater time, and then have fallen because their citizens lost the power of governing themselves and thereby of governing their state. TR


The Obama Economy and the Fed’s New Pessimism

Remember all that talk over the previous months about steady interest rate increases by the Fed? Well, forget about it. The Fed made clear this week that it understands that the Obama economy is not going anywhere and, therefore, neither are rates.

President Obama actually thinks he’s doing a great job with the economy. The Federal Reserve knows better.

Scary. Because one of the least-remarked features of the barely growing economy is that it is occurring in an environment of basically zero interest rates. Investors have nearly free money, and Obama still can’t make the economy work. The Fed is being as stimulative as it can without actually paying people to take money. And if the ISIS terrorists Obama has permitted to spawn inflict an economically disastrous strike or something else spurs an economic meltdown, there are very few tools left to deal with it.


Growth the last two quarters has averaged about one percent. The Federal Open Market Committee is now predicting just two percent growth for the year, seven years into the Obama “recovery.” And the FOMC thinks things won’t get any better next year either.

The Wall Street Journal notes:

The Keynesian economists who have run U.S. economic policy since 2008 are clearly stumped. First they said $800 billion in fiscal stimulus would stir a return to prosperity, then they said that monetary stimulus would do the trick. Now they blame their failure on “secular stagnation” and Republicans in Congress whose pro-growth proposals have been blocked at every turn by Senate Democrats and President Obama . . .

The the reality is that this is the (economist Paul) Krugman-Obama economy. The White House and Fed have spent eight years pursuing the City University economist’s agenda of raising taxes, increasing regulation in every possible section of the private economy, and trying any new monetary experiment.

Seven years after the recession ended, we know the score: The slowest expansion in decades, falling labor participation rates last seen in the 1970s, mediocre business investment, a declining pace of business start-ups, disappointing wage growth, rising inequality, and an outbreak of angry populism on the left and right.

President Obama has regulated, taxed, and spent this economy to the precipice of disaster. Hillary Clinton will be surrounded by the same economic advisors. She will do more of the same.

35 thoughts on “The Obama Economy and the Fed’s New Pessimism”

  1. You will never hear this report out of Lester Holt’s mouth or any of the other MSM outlets. Everything is just peachy and our economy is rebounding nicely thanks to Dear Leader.

  2. I am torn on the rate increases. We can’t continue forever into negative interest territory but I also fear a big disruption that would wipe out a lot of people…We are in a fix on this. Like so many things. Can we say unintended consequences?

    1. it is my opinion that the consequences were known. And because they were known they were not unintended.

      QE was implemented to allow Obama to appear capable.

      We are at the end of the road. Like a thief in the night Obama is leaving town and we are left with the wreckage. Rates must go up.

      1. I also see buying back our paper as a Fed move…not just aimed at helping Obama…But it was supposed to be temporary–the problem is the recession was not temporary.

        1. We are in the slowest recovery in American history because the mood of the nation is pissed off. No one buys when they are pissed off–not houses, not cars, not furniture. Most of us have watched and felt hopeless for the passed 7.5 years. This truly is the reason Trump has done so well, in spite of all of his ineloquent remarks. Pissed off is pissed off, almost to the point of irrationality.
          Most people that have needed high ticket items, paid for by loans, have already done so. Those of us that have tucked away any savings at all and are risk adverse, have found it eaten away with no reward for having it somewhere regarded as safe.

    2. A small “normal” rate increase might be acceptable in normal times. Would increase the purchasing power our money (over time), increase lending (odd as that sounds), perhaps slightly improve the flow of dollars through the economy. But these are not normal times. The Obama economic policy (such as it is) is so screwy, convoluted, destructive, and otherwise depraved, that no one dares predict with any certainty what would happen.

  3. Where’s the shovel ready projects? The highway that runs around my hometown has been paved twice in 5 years. Same company both times, never hired 1 local person. When the job is done, they moved on down the road. At least ppl have a smooth road to get to the store to spend those EBT cards.

    1. I think dirty old uncle Joe had oversight on this. We have no accounting for stimulus. Of course we also have no accounting for the missing State Dept millions (billions) during the era of Benghazi Big Bertha either.

  4. for the Obama lovers

    1. Industrial production has now declined for nine months in a row. We have never seen this happen outside of a recession in all of U.S. history.

    2. U.S. commercial bankruptcies have risen on a year over year basis for seven months in a row and are now up 51 percent since September.

    3. The delinquency rate on commercial and industrial loans has been rising since January 2015.

    4. Total business sales in the United States have been steadily dropping since the middle of 2014. No, I did not say 2015. Total business sales have been in decline for nearly two years now, and we just found out that they dropped again…

    Total business sales in the US did in April what they’ve been doing since July 2014: they dropped: -2.9% from a year ago, to $1.28 trillion (not adjusted for seasonal differences and price changes), the Censuses Bureau reported on Tuesday. That’s where sales had been in April 2013!

    5. U.S. factory orders have been dropping for 18 months in a row.

  5. I am scared we will never recover from the havoc of the past seven+ years.

    Militarily, economically, our world standing, morally…

    I don’t believe either candidate has it in him/her to turn our country around.

    1. It would be a herculean task.
      Hillary has no intention of turning this country around, she’ll just continue on Obama’s road to destruction.

  6. Oh no, some lunatic shot and killed a young British pro-EU MP.There will very soon be a political spin on this tragedy. The referendum is scheduled to next week. Will it stop the referendum ? Or will the undecided choose the pro-EU side because of this ? The timing of this, it almost looks like a hit-by-order , like the Jack Ruby killing. The polls showed that the Brexit-side is winning, so much is at stake……and now this tragedy….

  7. I was already depressed before I read this. Meanwhile leftists refuse acknowledge all facts, however irrefutable. I think Hillary will win and it will be more of the same, plus her annoying screeching and hound-dog of a husband. God bless America…my home, sweet home.

  8. It’s ‘CYA’ time at the Big White. At the same time that Yellen is offering up incoherent economic news, CIA Director, John Brennan, is issuing warnings about ISIS smuggling terrorists in with ‘refugees’ and even on regular airline flights.

    Foreign investors have already seen the handwriting on the wall – dumping the largest pile of U.S. Treasuries in history!

    B of A also sees the handwriting – 8000 MORE jobs are being eliminated….down from 100,000 in 2009 to 60,000 in 2016.
    (Checking acct. holders, like myself, are now being charged $25.00/month ‘maintenance fee” unless they maintain a $5000 DAILY balance or are linked to a Merrill Lynch financial instrument.

    Walmart is laying off employees at 500 locations in the West.

    Last month’s employment numbers were the lowest in SIX years!

    All of this to cover Obama’s royal posterior for the last 8 years!

    As I have said before, Hillary deserves to inherit the real ‘Obama economy’! They all deserve to end up in handcuffs and orange jumpsuits!

      1. I was going to switch to Chase but I fear they will follow.

        It’s such a pain to switch banks – new checks, new debit card, changing online bill pay banks, online accounts, etc. etc.

        As I recall, B of A was the first to offer up checking accts. to illegals several years ago.
        Looks like they’re trying to shoo them away now.

  9. “The the reality is that this is the (economist Paul) Krugman-Obama economy. The White House and Fed have spent eight years pursuing the City University economist’s agenda of raising taxes, increasing regulation in every possible section of the private economy, and trying any new monetary experiment.”

    Exactly, Keith.

  10. Hillary will also be surrounded by her LSM sycophants who will ignore her failed policies, in favor of blaming Republicans instead.

  11. “President Obama has regulated, taxed, and spent this economy to the precipice of disaster. Hillary Clinton…will do more of the same.”

    Gives a whole new meaning to the term “moron”.

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