Saturday, July 17, 2010

How's That Recovery Summer Working For Ya?

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This was destined to be the summer we started to turn things around, took steps toward the bold new Obama-inspired economy where everyone had a green job and The One was exulted for delivering us from the evils of free-market economics.

How's that working out for you?

Apparently, not so well:

The Consumer Price Index, the government's most closely watched inflation barometer, dipped 0.1 percent in June, the Labor Department reported Friday. Less expensive energy bills were a big factor behind the drop.

But the good news for consumers was tempered by another report that detailed their glum outlook.

An index of consumer sentiment compiled from a survey by the University of Michigan and Reuters fell to 66.5 in early July from 76. That, along with disappointing earnings reports from two large banks, Citigroup Inc. and Bank of America Corp., sent stocks tumbling. The Dow Jones industrial average closed Friday down 261.41, or 2.52 percent.

The Consumer Price Index report said that, along with declining energy costs, prices for some food items, airlines fares, computers, telephone service, and personal-care products also fell last month.

"Core" consumer prices, which strip out volatile energy and food costs, rose 0.2 percent in June. That means core prices rose only 0.9 percent over the last year. That is below the Fed's inflation target and means core prices are holding at a 44-year low.
The dreaded deflationary pressures coupled with Americans' just not buying into what Obama is selling has kept us on the road to ruin. What has the administration done? Quite a bit and all of it wrong.

Keynesian theory holds that you spend your way out of a recession and is hawked by snake oil salesmen like the vile Paul Krugman. I must admit that I do find a certain bit of glee watching Krugman espouse the virtues of this theory daily and make up more and more wildly inventive reasons as to why it's really working when it's failing epically. It must be hard for a Nobel laureate in economics to see every thing he believed proven dreadfully wrong. He'll pull the old liberal rope-a-dope that it wasn't implemented correctly and that's why it failed to work much as acolytes of communism bray that it does indeed work but the Soviet Union, Cuba and every other nation that tried it didn't implement it correctly...but I digress.

Things continue to be bad and Obama seems to have no new ideas so he's going back to discarded and debunked progressive ideas and programs that got us into this mess while simultaneously dictating onerous new regulations upon those who would pull us out (but written to help out the Democrats cronies while hurting the consumer and small business).

So how do we get out of this morass? By speaking loudly at the polls and casting Boxer, Reid, Murray and every other liberal politician out. First we put a stop to the constant barrage of liberal programs passed by the Dems and then begin to roll back the damaging social and economic programs enacted that will cost us trillions for little or no reward.

As for me, I'm just gonna enjoy my "recovery summer" by grabbing my fishing rod and a 12-pack and try to numb myself to what is happening until about mid-September where the real election action starts. I hope you have enough to do the same wherever you are because hey, it's all about "funemployment".

1 comment:

otis.opse said...

I'd join you at the fishing hole but I'm too busy working THREE jobs to supplement the cut back hours and pay at my full time job. I'm working more hours for less money. Got to give it to Obamanomics. They are REALLY working out here in the real world.