One Turkey Gets Reprieve; Rest Get Axe

Nobody is really surprised by this development, but CNBC dutifully reports that this Thanksgiving week was the worst for the markets since 1932.  On the heals of miserable economic performance, and with all that has happened in Europe, it’s not likely to improve any time soon.  The Euro is on the verge of collapse, as US-based investors continue to balk at European banking institutions, and as they slide over the precipice, things aren’t looking any better here at home.  As I’ve explained before, our own banking system has thoroughly tied itself to the European mess that a significant collapse there will tend to spread its tentacles to this country in rapid fashion.  Perhaps in the worst sign of the day, now comes an early report that Black Friday spending by consumers was altogether flat.

No prolonged, significant recovery can commence until energy prices are brought under control, and as is now obvious, the only way to combat this in any sustainable fashion is to unleash domestic energy production.  Alas, the Obama administration is strangling our energy production, using EPA regulations to shut down coal-fired electric plants with no replacement of lost capacity.  Barack Obama is doing for the nation what his party first inflicted on California.  Rolling black-outs will likely become the norm next summer.  An economy like ours can never attain its most efficient stride under such a regime. Wealth and job creation require production, and production of anything at all requires energy.

Let us be honest enough to admit that we cannot recover while our President and his administration maintain their current course.  Since they are not likely to change course, we are stuck with this miserable economy.  It is for this reason that I believe that Barack Obama will go down to massive defeat in 2012.  Whomever replaces him, it will need to be an actual conservative, who will push for energy production, and who will act to lessen the regulatory burdens on the people of the United States.  Americans have been adaptive and creative people, but no people can be flexible enough to live on nothing, with no resources, and no energy.  This may be the most important lesson of the Obama administration:  You can’t make something out of nothing.  People who are accustomed to making lemonade have found that under this president, unless you happen to be one of those connected cronies, there aren’t even lemons.

The other thing we are going to be forced to address is the welfare state.  The welfare state in all its myriad forms has become a vast and overpowering drag on the economy of the United States.  Non-defense spending has exploded under Obama, and while many look to the defense budget when it comes time to swing the cutting axe, the truth is that the welfare state consumes fully two-thirds of our budget.  It is this spending that accounts for most of the growth in the federal deficit these last three years, and the time is rapidly approaching when we will be forced to choose: Welfare spending or economic growth.  Some will wonder what one has to do with the other, but it’s simply understood in this way:  Welfare-state spending is squeezing out private production and economic activity.  For far too many Americans, the welfare state has become a viable permanent alternative to work.

Barack Obama will be remembered for many things, and very few of them will be good.  When this President leaves office in January 2013, there can be some hope of a turnaround.  Until then, the American people are going to be made to suffer.  On the world stage too, Barack Obama has been a miserable failure, and with all the promises about making America more respected in the world, all this President has done is to multiply the contempt with which we are viewed.  If we are to have growth, and if we are to have hopeful economic times, we must replace this President and his band of cronies.  Like Sarah Palin, I believe “November [2012] can’t come soon enough.”

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