President Obama is living in a dream world comprised of rivers of chocolate and cotton candy clouds, where all the goodies are free. As a result, he’s dragging the nation into financial ruin.
One week before the November presidential election, the London-based Legatum Institute think tank announced that the United States dropped out of the top 10 of the Legatum Prosperity Index “in an unprecedented fall.” We came in at No. 12, thanks no doubt to President Obama’s non-existent financial policy. Yippee.
We can’t say we haven’t been warned.
On Aug. 5, 2011, Standard and Poors lowered its rating of America’s credit due, in part, to the nation’s rising debt burden.
On April 5 of this year, Egan-Jones also lowered the U.S. credit rating due to our lack of progress in dealing with the national debt.
The White House didn’t take the hint. The national debt has continued to skyrocket past $16 trillion, and as of Oct. 31, almost a third of this debt — $5.5 trillion — was held by foreign interests. This figure has risen 78 percent since January 2009, when Obama took office. And recent events indicate it’s not getting any better.
The president’s latest fiscal cliff “compromise” includes extending unemployment benefits, a second stimulus package and giving the White House the authority to increase the debt ceiling at will for the next two years. Rivers of chocolate — make that free chocolate.
Five months after Egan-Jones delivered its first U.S. credit downgrade, the rating agency lowered it again, this time because of the Federal Reserve’s attempts to stimulate the economy through “quantitative easing” — a polite way of saying we’re printing money with nothing to back it up.
Federal Reserve Chairman Ben Bernanke didn’t take the hint on that one. He announced “QE4” on Dec. 12, in what we’re supposed to consider a new and improved quantitative easing. In it, the Fed will print $85 billion each month until unemployment drops below 6.5 percent. Cotton candy clouds. Good luck with that one.
Whether by ignorance or design, the president’s fiscal policies are built on a chocolate factory of dreams bolstered by the Fed’s imaginary monetary policy of wishful thinking. Sooner or later, the chocolate factory will have to declare itself bankrupt. There will be no one left to bail it out.