Emperor Obama is missing sound economic “clothes”

August 13, 2011

Emperor Obama is missing sound economic “clothes”


President Obama spoke on Monday, August 8 for the first time since Standard and Poor lowered this nation’s credit rating from AAA to AA+, but instead of calming the market, the stock market plunged 635  points by the end of Monday’s trading day or a drop of 5.6%.

Indicative of a highly vulnerable market in the days and weeks to come, the Dow Jones Industrial Average ( DJIA ) closed up 419.62 points at 11239.47 the following day, August 9, despite what turned out to be a roller coaster day for stocks.  After a steep drop, the market rallied after the Federal Reserve announced interest rates would be kept low for another two years.

In essence, Obama’s remarks to the nation amounted to peddling lame bromides to the public that have never worked in the past, making Obama appear in his TV public message similar to the way the emperor was perceived by his subjects in “The Emperor’s New Clothes,” a Danish fairy tale written by Hans Christian Andersen and first published in 1837.  In this fairy tale the emperor denies what is obvious to even a child, that the fine suit of clothes made for him, and that he believes he is wearing, was only a figment of his imagination.

Even though the Standard and Poor downgrading of government-backed mortgage debt represented  this nation’s first down grade in 94 years, and the August 9 decline in the Dow’s one-day drop was its biggest point loss in a single day since Dec. 1, 2008 and its sixth biggest point drop in history, President Obama essentially dismissed the downgrade, reassuring investors and the public that the nation’s leaders need only to show more “common sense and compromise” to tame the staggering accumulation of debt.

According to President Obama, this nation has always been a Triple AAA nation and will continue to be.

How could decades of spending and over-borrowing by the federal government not have damaged this nation’s credit worthiness?  Although Congress after Congress and President after President have spent every penny taken in — and borrowed and printed money of top of that to keep voters happy with promises the government could no longer afford — President Obama and his administration continue to take no responsibility for their 2-1/2 year spending spree.  Out current $14 trillion plus debt is not sustainable, nor is shifting the burden of paying bills forward onto future generations of Americans!

The debt ceiling bi-partisan legislation signed by President in private on Wednesday, August 3 could be compared to an “elephant birthing a mouse,” and amounted to nothing more than a “let’s pretend bill” to fool the public into believing that the Congress and the President understand that this nation cannot spend itself out of debt and into prosperity.

Because Conservatives in the House resisted increasing taxes, the resulting bi-partisan deal of the Budget Control Act brought little in the way of spending cuts and lots of in the way of increased borrowing, further locking this nation into another seven to ten trillion dollars in debt over the next 10 years.

And who is getting blamed for the downgrade of this nation’s credit rating?  The new scapegoats are Tea Party Patriots who, if not for them, the magnitude of this nation’s financial mess would not have been brought to the public attention.

Tea Party Patriots brought to light how the President, his advisers, and those on the Left were asleep at the wheel.  They are still in denial of what it would take to move this nation forward on a trajectory toward financial recovery.

It was also Tea Party Patriots who helped in electing the current crop of conservatives to the House with  their pledges of less spending and reducing the size of government.

Senator John Kerry said of Tea Party Patriots, that as a minority of the American people, Tea Party proponents had countered the will of the majority.

David Axelrod, Obama’s top strategist before moving back to Chicago to prepare for 2012 and President Obama’s re-election, blamed the Tea Party for bringing the nation to the edge of default.

Howard Dean, a former Democratic National Committee Chair, recently spoke of Tea Party Patriots as “smoking tea instead of drinking it.”  Dean has also characterized the tea party as “almost entirely over 55 and white.”

Considering the drop in the stock market over the past week, and the acute apprehension felt by the American people over how their financial well-beings are being affected, don’t the American people deserve immediate action from their President and legislators?  They need help now!

Instead the Congress is on a five-week break until after Labor Day, and our President is making speeches of all talk and no action in a continuation of his refusal to accept responsibility as his elected position demands of him.

The forming of a Super Committee is too slow.  Does President Obama really believe that his leadership responsibilities can be delayed until after the Super Committee (charged with finding another $1.5 trillion to cut) — reports back in late November, which has yet to be cobbled together, and whose recommendations could prove disastrous?

Shouldn’t Congress be called back immediately to tackle the problem at hand to at least assure the American people that they do recognize the misgiving many Americans have about Congress, their elected legislators, and the ability of both to get things done for the benefit of those they serve.

Also of concern is the confidence President Obama has in the current Treasury Secretary, Timothy Geitner, whose economic stimulus and tax and spend policies have brought this nation to the brink of financial Armageddon.  Shortly before this nation’s credit rating was downgraded, Geitner insisted this nation could not possibly suffer a downgrade.

Predictions are difficult to make.  I’ll leave those to those who are well versed in finance. Even so, this nation and the American people may need to wait until after the 2012 election, which hopefully will result in a new president and new Senate leadership so policies can be enacted which will at least start this nation on a road back to financial responsibility and solvency.


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