Obama’s Economic Advisor Says Ecomony on Track. What Track Is That?Posted by Al @ 9:05 am
Reported by Reuters, Obama’s Economic Policy Advisor, Lawrence Summers, states that the U.S. economic recovery is on track. The problem here is that this administration, like most of America, have no clue where this track leads. While I do not want to be a “doubting Thomas”, this interview reads like a play from the propaganda 101 handbook.
First of all, and most importantly, this guy is a rich bureaucrat who helped block regulation on an industry that he made millions from. He was part of the team, that included Alan Greenspan and Robert Rubin. In 1998, this group of rich elitist blocked all attempts to regulate the highly volatile derivatives market. Their efforts succeeded and the derivative market exponentially grew and eventually brought the U.S. economy to the brink of disaster. So, all things considered, this corrupt Clinton re-tread has no credibility to talk about any recovery and those words should ring hollow.
Even if these statements were made by Snow White, they would still provide little assurances or comfort. Let’s see.
“There’s really no doubt that the third quarter registered growth, and growth at a non-trivial rate…”
Sure, when you count “cash for clunkers” and the extended “first-time home owners tax credit”. I’m still not sure why the administration would include the temporary benefits of these two socialist programs to convince the public of continued sustained growth.
“I think the dollar … is going to be the world’s primary reserve currency for … the foreseeable future,” Summers said. “I think the most important thing we can do for the dollar is make sure that it rests on strong fundamentals.
The strength of our dollar is contingent on other countries having confidence in our federal government to reduce our deficit spending and not continue to monetize our foreign debt. The world’s confidence in the American economy and dollar helps the dollar retains its world’s reserve currency status. Considering the Obama administration’s plan of massive new government sponsored social programs, I think little confidence is given to America’s ability to sustain this debt/death spiral.
“The question of what will propel growth throughout the expansion is still a crucial one,” Summers added. “But that’s always the case at the beginning of expansions.”
Expansion? The only thing these financial mad men understand is expansion of the next bubble. Take your pick- treasuries/bonds (all levels of government), credit card debt, student loan debt, commercial real estate, etc.. Maybe expansion of all the new government policing positions that will be created to assess and enforce fines for American’s non-compliance of the upcoming compulsory health care legislation or the cap and tax green police.
“I think the increase in oil prices is probably … more a reflection of recovery and the expectation of continued recovery than a threat to recovery,”
Oil is higher why? Supply/demand right? Wrong. Oil inventories are at record levels and Americans are cutting back in time of government unpredictability. Refiners are shutting down facilities to stem the tide of excess supply. The supply/demand function doesn’t apply here. It’s supply manipulation and the falling value of the U.S. dollar. To add insult to injury, supply/demand has a tough time operating efficiently when large investment banks/firms utilize derivatives (futures contracts) to continually manipulate the price of oil.
To top it all off, this is coming from the man who helped cause the biggest economic downturn in modern U.S. history by blocking derivatives reform during the Clinton administration. Summers now wants financial reform in the the banking and investment industries. That’s rich.
Mr. Summers’ past actions indicate a history of allowing exotic financial concoctions to cripple the U.S. economy. Now, as an overly wealthy elitist, he wants to regulate an industry that made him a rich man. Why would any American believe his words now? Well, I think the corrupt figures brought in to advise Obama (clintonites pt. 3) will finally wake up the American public to their fleecing of America.
Bottom-line: Don’t trust the words of elitist government officials (both republican and democrat) who get rich from your misery. Wake-up American.