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Townhall Finance...
Obama
Out on Called Third Strike
By Bill Tatro
7/14/11
They
say that things of consequence
occur in groups of three, usually with very bad results. A prime
example is
three deaths in a row, or three strikes and you’re out .
Let’s
give this phenomenon further
examination from an economic and financial standpoint.
Back in the 1980’s, President Ronald Reagan
was influenced to believe that if he would only renege just a little on
his tax
cut pledge, Congress would decrease spending.
He
was told a combination of increased
revenues and decreased spending would do wonders for the U.S. economy.
Heard
that before?
President
Reagan swallowed the
Congressional pledge hook, line, and sinker.
Unfortunately, there were tax hikes and no
spending cuts. That
action decimated the investment real estate
industry, and created a debacle that took years to overcome.
Next,
Hank Paulson pleaded with
Congress in 2008, trying to convince them the financial world as we
knew it was
in dire condition. Paulson
argued that
if Congress didn’t immediately authorize over $700 billion in order to
absorb
all the toxic mortgages, it was over.
He
said to expect chaos, martial law,
and total anarchy, just to mention a few goodies.
Once again, the story was accepted, hook,
line and sinker. We
all know how TARP
turned out.
Now,
President Obama, with the help of
the Treasury Secretary, who was last seen as part of that martial law
shakedown, has asked the Republicans to buy into tax increases now, for
tax
reform and spending cuts later.
All
because of not raising the debt
ceiling equates to credit default.
I
would ask, if that’s the case, then why are U.S. bond prices rising and
interest rates falling? Will
investors
really choose Greek, Italian, or even Spanish debt to our debt? Will they find a safe
haven in Portugal?
I
don’t think so.
Oops,
I’m not supposed to ask, or even
think, there may be another way of solving these major issues. (My solution: Live within
your money!) I’m
just supposed to accept the instructions
from his economists and professional politicians.
I’m also expected to eat some peas, according
to the president.
In
my opinion, we should not raise the
debt ceiling. We
should pay the interest
debt, pay the military, and then make the hard decisions on the rest.
If
not, and John Boehner, just like
Reagan and the TARP Congress, buys what the President is selling, that
will be
three called strikes, and we all know what that means for Boehner.
Read
it at Townhall Finance
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