Goldman Sachs downgrades Obamanomics

posted at 9:30 am on July 16, 2011 by Ed Morrissey

Yes, that Goldman Sachs, the investment firm with lots of political ties, but generally more friendly to Democrats than Republicans.  In 2008, the firm bet heavily on Barack Obama, with almost a million dollars in contributions from its PAC — the second-highest contributing organization, only trailing the University of California’s PAC.  One of its former employees, Rahm Emanuel, ran the West Wing for Obama until leaving for the Chicago mayoral race late last year.

Suddenly, however, Goldman Sachs has become disenchanted with Obamanomics.  In a message sent out last night, the firm downgraded its economic forecasts across the board and warned that unemployment wouldn’t budge much over the next eighteen months, as James Pethokoukis reports:

Following another week of weak economic data, we have cut our estimates for real GDP growth in the second and third quarter of 2011 to 1.5% and 2.5%, respectively, from 2% and 3.25%. Our forecasts for Q4 and 2012 are under review, but even excluding any further changes we now expect the unemployment rate to come down only modestly to 8¾% at the end of 2012.

The main reason for the downgrade is that the high-frequency information on overall economic activity has continued to fall substantially short of our expectations. … Some of this weakness is undoubtedly related to the disruptions to the supply chain—specifically in the auto sector—following the East Japan earthquake. By our estimates, this disruption has subtracted around ½ percentage point from second-quarter GDP growth. We expect this hit to reverse fully in the next couple of months, and this could add ½ point to third-quarter GDP growth. Moreover, some of the hit from higher energy costs is probably also temporary, as crude prices are down on net over the past three months. But the slowdown of recent months goes well beyond what can be explained with these temporary effects. … final demand growth has slowed to a pace that is typically only seen in recessions. .. Moreover, if the economy returns to recession—not our forecast, but clearly a possibility given the recent numbers …

However, crude prices have come back up a bit recently, and prices at the pump have risen right along with them.  Pump prices are now up seven cents a gallon over the last two weeks. Consumer spending has not picked up in the latest economic indicators, and manufacturing looks ready to slide further.

Pethokoukis says alarm bells should be going off at the White House:

Unemployment on Election Day about where it is right now? Sputtering — if not stalling — economic growth? To many Americans that would sound like the car is back in the ditch — if it was ever out. Maybe Goldman is wrong, but economists across Wall Street have been growing more bearish.

And recall that back in August of 2009, the White House — after having a half year to view the economy and its $800 billion stimulus response — made an astoundingly optimistic forecast. Starting in 2011, with Obamanomics fully in gear and the recession over, growth would take off. GDP would rise 4.3 percent in 2011, followed by … 4.3 percent growth in 2012 and 2013, too!  And 2014? Another year of 4.0 percent growth. Off to the races, America.

Even in its forecast earlier this year, Team Obama said it was looking for 3.5 percent GDP growth in 2012, followed by 4.4 percent in 2013,  4.3 percent in 2014.

We’re certainly not going to see 4.3% growth in 2011; we’ll be lucky to get to 2% at this pace, and the same is true for 2012, barring a sudden conversion to supply-side economics at the White House.  That has an enormous impact on the budget debate, too.  The administration’s predictions of revenue are based on that Pollyannish forecast Pethokoukis mentions, along with significant drops in joblessness.  If that growth is halved or worse, revenues will fall far short of expectations and the budget imbalance will grow even worse.

Obama and his re-election team had better buckle their belts, because 2012 will be a very bumpy ride — for them, and for all of us.

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Comment pages: 1 2

Hey, GS and the MSM have always been about the rosy scenario.
It will be worse they they estimate. How about the incipient EU meltdown? How about the China bubble? It would not be hard to create a list of 100 major negative indicators.

Viator on July 16, 2011 at 1:39 PM

Yes. Black Americans need to hear his voice.

The GOP campaign needs to include all voices; including Allen West, Herman Cain, liberate the blacks from the Democrat plantation.

Key West Reader on July 16, 2011 at 1:37 PM

That is another exactly correct point. The situation of our blacks is steadily deteriorating under the rule of Obama and the democrats. It is a huge problem and can be reversed, practically, only be getting America back on the track of rewarding success, which itself depends on getting our economy back on track.

GaltBlvnAtty on July 16, 2011 at 1:43 PM

I just finished rading Reckless Endangerment. It should be required reading for every American. You won’t ever look at Goldman the same way once you read it. It’s even worse than you thought.

rockmom on July 16, 2011 at 12:43 PM

Read it too. The average reader won’t ever look at Democrats the same way either, but I knew that going in.

I challenge our Democrat Leftist posters here, like shipley, crr6 and bayam, to read this book cover to cover.

But I know none of them ever will, because they’re deathly afraid to face reality and the facts.

Del Dolemonte on July 16, 2011 at 1:46 PM

The GOP campaign needs to include all voices; including Allen West, Herman Cain, liberate the blacks from the Democrat plantation.

Key West Reader on July 16, 2011 at 1:37 PM

I was watching Jesse Jackson on Rachel Maddow Show last night…he was incoherent. I was surfing cable news networks to see what Democrat TPs they were going to use. Nothing new, CNN had Bill Maher, he played the it’s racist to demand something be done about the National debt because people only care about a deficit because Obama is President…soo….back when Ross Perot got a huge chunk of the voting electorate,that never happened Americans didn’t care about the deficit under George H W Bush.

I linked to that Obama quote highlighted. It appears he thinks that interpreting the Will of the American People, it first has to go through a progressive filter that reduces it’ to conform to the progressive agenda. He has it on backwards their agenda has to conform to our Will, not the other way around.

Dr Evil on July 16, 2011 at 1:46 PM

I am not whining about my situation. What I want is for people to understand what the Medicare system already has in place, and how it is just one more fact of how America penalizes success and rewards lack of success. That system is not sustainable, yet Obama and the democrats want to double down on it.

GaltBlvnAtty on July 16, 2011 at 1:35 PM

And, what will happen when Americans realize that the “lock box” has been raided? Surel the Senior Citizens won’t revolt. They don’t know how to.

The “minorities” will revolt; knowing that they have no investment, no stake in what they are revolting for.

/Aint’ that a shame?

Key West Reader on July 16, 2011 at 1:46 PM

The situation of our blacks is steadily deteriorating under the rule of Obama and the democrats. It is a huge problem and can be reversed, practically, only be getting America back on the track of rewarding success, which itself depends on getting our economy back on track.

GaltBlvnAtty on July 16, 2011 at 1:43 PM

Well, I have to take offense at your “our blacks”. comment.

Listen. Do you think that we are stupid? Do you not think that we have worked our hind ends off like the rest of America to attain the American Dream? I know I have.

Now let me let you into a little clue: Black Americans are the same as White Americans and we all have the same abilitiy to succeed.

Is that so hard to understand?

Key West Reader on July 16, 2011 at 1:50 PM

There may be rev-lt of some nature just up the road, and a lot of seniors will be part of it. I would prefer to see a strong Republican leader appear and win the presidency in 2012, and start to reverse the current push toward economic destruction. If that does not happen I forsee huge trouble.

GaltBlvnAtty on July 16, 2011 at 1:51 PM

I done stopped a thread.

Key West Reader on July 16, 2011 at 1:52 PM

GaltBlvnAtty on July 16, 2011 at 1:39 PM

The first thing I would do if I were them is start passing continuing resolutions a priority list of what bills get paid by the treasury – Social Security checks and the Active Military get paid – send it to the Senate let the Democrats vote it down or never bring it to the floor. They get the credit.

It was a good start in the Senate, when the Senate Republicans stated there would be no more voting on spending bills till the debt ceiling issue is settled/voted on. I don’t think the Republicans understand, when you have nothing to lose you might as well go for the whole enchilada.

Dr Evil on July 16, 2011 at 1:53 PM

He is the DOTUS 24/7!

PappyD61 on July 16, 2011 at 1:54 PM

Key West Reader on July 16, 2011 at 1:50 PM

Hey, please don’t take offense where none is intended. I agree that our blacks are just like our whites, with the same ability to succeed unless deprived of opportunities to do so by government policies, which I think is the current situation and the situation that has existed for several decades now. “Our” is meant to be inclusive.

GaltBlvnAtty on July 16, 2011 at 1:55 PM

There may be rev-lt of some nature just up the road, and a lot of seniors will be part of it. I would prefer to see a strong Republican leader appear and win the presidency in 2012, and start to reverse the current push toward economic destruction. If that does not happen I forsee huge trouble.

GaltBlvnAtty on July 16, 2011 at 1:51 PM

Dear GaltBlvnAtty:

Go for it.

And, KNOW for a fact that there are people on the ground that will oppose you; we are not stupid, we are not ______ whatever the democrats call us. WE are real. We are here. We are ready to fight for our future; for our children’s future.

We are not paralyzed by the Barack Obama doctrine. We don’t even like him. 10% of the bums in the streets like him. 80% in the Hood don’t like him.

So, Hey.

Key West Reader on July 16, 2011 at 1:58 PM

One step in that direction would be to force a debt-ceiling increase plus spending reduction, no tax increase, vote, next week. Our side seems to be letting that opportunity slip away.

GaltBlvnAtty on July 16, 2011 at 1:26 PM

I agree. It’s the best you’re going to get from the current GOP crowd anyway.

rrpjr on July 16, 2011 at 1:58 PM

Dr Evil on July 16, 2011 at 1:53 PM

I agree with what you say about what some of the Republican senators started yesterday: That was magnificent. Along with that the Repbulicans in the house should exercise their veto power in the debt-ceiling context by passing a straightforward debt-ceiling increase,short-term, with spending cuts that would be supported by most Americans.

GaltBlvnAtty on July 16, 2011 at 2:00 PM

So, Hey.

Key West Reader on July 16, 2011 at 1:58 PM

It may happen. If it does I think I will be shoulder-to-shoulder with you.

GaltBlvnAtty on July 16, 2011 at 2:01 PM

GaltBlvnAtty on July 16, 2011 at 2:00 PM

Coo Coo

Key West Reader on July 16, 2011 at 2:04 PM

It may happen. If it does I think I will be shoulder-to-shoulder with you.

GaltBlvnAtty on July 16, 2011 at 2:01 PM

Mercy

Key West Reader on July 16, 2011 at 2:08 PM

WE THE PEOPLE

Key West Reader on July 16, 2011 at 2:10 PM

GaltBlvnAtty on July 16, 2011 at 2:00 PM

There is this wild idea that the Democrats would really let the country default. Not in our current economic conditions -this isn’t 1995. I know the Democrats pine for their Big Government past, but those days are long gone. Obama is going to get more pressure from the International community bankers. At the end of the day the folks who depend on our economy to fuel their economies don’t care if Obama get’s a second term if they get what they want – the Cash Register up and operating again. I stated in another thread, Obama has painted himself into a corner if he wants to survive to fight another day….he needs to start coming up with some face saving measures.

It’s not going to come down so much to the Domestic Pressure being exerted on Obama as it is the International Pressure. It’s why you can read in the German Press how the world is being held hostage by our debt ceiling limit debate……our Chinese Overlords, have already made their position clear. It couldn’t happen to a better group of internationalist – Barack Obama, First Global President indeed :)

Dr Evil on July 16, 2011 at 2:12 PM

Dr Evil on July 16, 2011 at 2:12 PM

There is some justice, at least poetic justice, in those articles about the growing international concern about what is happening to America because of Obama.

GaltBlvnAtty on July 16, 2011 at 2:16 PM

http://canadafreepress.com/index.php/article/38521
Key West Reader and Dr Evil
This may be worth a read.

GaltBlvnAtty on July 16, 2011 at 2:27 PM

It’s the failed ideology behind the failed policies that have led to this disaster…

… Why is that so hard for people to understand?

Seven Percent Solution on July 16, 2011 at 2:36 PM

We’re certainly not going to see 4.3% growth in 2011; we’ll be lucky to get to 2% at this pace, and the same is true for 2012, barring a sudden conversion to supply-side economics at the White House.

Nice job talking down the economy!

By supply side economics, I suppose you’re reffing to tax cuts without offsetting spending cuts with the surprise effect of economic expansion. Of course, no one at Goldman Sachs or any other major investment firm is calling for voodoo economics. Money and results, not ideology, are the only things that talk on Wall Street.

This economic scenario is exactly what Japan experienced in its very similar balance sheet recession of the 90′s, and it’s the reason why the Fed has shown bias in its concern for a repeat of Japan’s lost decade. It’s also why you can expect to hear Bernanke and other preeminent economists call for another round of stimulus.

bayam on July 16, 2011 at 2:43 PM

There is this wild idea that the Democrats would really let the country default. Not in our current economic conditions -this isn’t 1995. I know the Democrats pine for their Big Government past

Based on the size of the federal budget, it seems that big government never left us- that was just an illusion. Even with welfare system reform, it’s now clear that those kinds of programs are literally a drop in the bucket.

As for the Democrats ‘letting the country default’ I don’t think that party is setting the precedent of tying a higher ceiling to legislation or refusing to compromise on deficit cuts.

bayam on July 16, 2011 at 2:46 PM

Why is the American Economy being held back – not being given any oxygen? This isn’t incompetency, this is intentional international interventionism. or I I I if you like, it’s all about the globalist. It makes no sense if India, China, and Germany have seen GDP growth why the United States wouldn’t see growth also…..who’s idea is it, to regulate (EPA) our companies out of international competition? In a Global economy companies like GE are operating in different countries for example China. Of course they want the playing field to be rigged to their advantage. We have been sold out on so many different levels in this country. And we get preached to about “Shared Sacrifice” from the political class…that’s a laugh.

The reason Obama had them at meeting daily to solve this debt limit issue is because he’s being leaned on by the international bankers. The Republicans don’t get how strong their position really is….call his bluff.

Dr Evil on July 16, 2011 at 3:00 PM

Dr Evil on July 16, 2011 at 3:00 PM

I have been saying for awhile now that the House Republicans have the strongest had of any group regarding the debt-ceiling. They have an absolute veto, that cannot be overridden. That is why a well-articulated House bill, that raises the debt ceiling a little, enough to cover 6 months or so, coupled with dollar per dollar real and easily justifiable spending cuts now, would put the democrats and Obama in a horrible position.

GaltBlvnAtty on July 16, 2011 at 3:13 PM

Maybe Obama should take notes from Indiana,

Hoosiers Show How It’s Done: Indiana Posts a Surplus And Dems Are Unhappy

Not that Obama will face reality. he’s got an unsustainable ideology to impose on us.

Yakko77 on July 16, 2011 at 3:17 PM

Heat Map showing who is doing well – while the United States is stuck in an economic malaise of our government’s making. Scroll down, check out the GDP growth of China, India, and Indonesia aka our global competition.

Dr Evil on July 16, 2011 at 3:17 PM

the next crisis will be the 99ers falling off of UI. So by 2012 there will be much controversy about how government is going to support the unemployed.

What is not surprising that chronic high unemployment and low growth are characteristic of the european model. After a while you get used to it…which is no doubt what libs are hoping for.

Of course, the problem is that there will be no one to pick up our slack. Our consumers and business acumen have helped develop many countries. They used to say when the US sneezes, europe gets a cold. If we get the socialist flu what happens to the rest of the world. (libs of course say others will step in…like China…but don’t count on China)

I do think that from a lib perspective there are silver lingings. The developing world gets stronger, the third world gets stronger. you already hear that…that this time will be different, the developing world will grow…and save the world.

r keller on July 16, 2011 at 3:19 PM

GaltBlvnAtty on July 16, 2011 at 3:13 PM

The Republicans are afraid of the MSM it’s that simple. They have the public’s support. They need to grow some thick skin, and stop playing into the progressives’ hand. The American people aren’t buying what the progressive Democrats are selling, but it appears the establishment Republicans are caving into their trash talk. Obama was right, sometimes you just have to pull the band aid off fast, it’s gonna hurt, it’s better to do the hard thing, and get it over with. And by hard thing, I do NOT mean capitulating to the wannabe pseudo socialist Fabian agenda.

Dr Evil on July 16, 2011 at 3:27 PM

Of course, the problem is that there will be no one to pick up our slack. Our consumers and business acumen have helped develop many countries. They used to say when the US sneezes, europe gets a cold. If we get the socialist flu what happens to the rest of the world. (libs of course say others will step in…like China…but don’t count on China) r keller on July 16, 2011 at 3:19 PM

Exactly. After George W Bush we got the Euro dream candidate for OUR Presidency….I want to tell the Euros “For they sow the wind, and they shall reap the whirlwind.” Greece, Italy, Spain, Ireland, Germany, et al. They got just what they deserved. They stuck their noses in our domestic politics with their BS Globalist citizen of the world nonsense…..I don’t pay taxes to the world. I pay taxes to the Untied States of America so no I am not a citizen of the world. I am an American citizen, and I didn’t sign up to take one for team Europe.

Dr Evil on July 16, 2011 at 3:36 PM

They sow the wind and reap the whirlwind. The stalk has no head; it will produce no flour. Were it to yield grain, foreigners would swallow it up. You know like China, our number #1 creditor, and the increasing interest we owe them, on the accumulated money we have borrowed from them.

Dear Goldman Sachs

For they have sown the wind, and they shall reap the whirlwind – “They shall reap,” not merely as “they have sown,” but with an awful increase. They sowed folly and vanity, and shall reap, not merely emptiness and disappointment, but sudden, irresistible destruction. “They sowed the wind,” and, as one seed bringeth forth many, so the wind, “penn’d up,” as it were, in this destructive tillage, should “burst forth again, reinforced in strength, in mightier store and with great violence.” Thus they “reaped the whirlwind,” yea, (as the word means) “a mighty whirlwind”. But the whirlwind which they reap doth not belong to “them;” rather they belong to it, blown away by it, like chaff, the sport and mockery of its restless violence.

Dr Evil on July 16, 2011 at 3:41 PM

Nice job talking down the economy!

-Bayam

Fallacious argument again. I see a trend.

CW on July 16, 2011 at 4:17 PM

Dr Evil on July 16, 2011 at 3:41 PM

This is exactly why I always enjoy your posts Doc! Keep it up!

BadMojo on July 16, 2011 at 4:44 PM

The entire situation does still make me wonder, just how many Americans out there buy into this BS. It seems over the years it is always a slow crawl towards more spending and more entitlements. SS could very well be solvent right now…if we didn’t continue electing quasi-communists who insist that it’s fine and dandy to spend whatever surplus there is after SS has been paid. It always reminds me of the gag in Dumb and Dumber (yes I watched the movie…) where they keep “borrowing” money from the briefcase and leaving IOU’s! They know full well that spending that money without some form of income to replenish it will eventually lead to going broke. There is no way to pay for someones FUTURE investment without real interest being paid on the principal, but we’ve allowed an apparent majority of the voters to become either so willfully ignorant or so indoctrinated in stupidity that they no longer have the ability to see reason. It doesn’t matter what “program” you look at from the Feds these days, it’s all the same, spending with insufficient income. And just like in our lives, when we overspend, we can only ask our boss for a pay increase for so much before our boss goes broke trying to support our spending habits. When our Gov. is our employee and we are the boss…how much are we willing to increase their salary through increased taxes before we can no longer sustain our own individual lifestyle with any degree of quality and we are forced to close the doors and lay off our employees(federal gov.). I say it should have already been that time a couple of decades ago.

BadMojo on July 16, 2011 at 4:59 PM

We are not paralyzed by the Barack Obama doctrine. We don’t even like him. 10% of the bums in the streets like him. 80% in the Hood don’t like him.

So, Hey.

Key West Reader

Pfft. 95% voted for him last election, 95% will vote for him again in 2012, and he still has an 85% approval rating among blacks. Try again. You may not be paralyzed by the Obama doctrine, but sadly, most other blacks are.

Now let me let you into a little clue: Black Americans are the same as White Americans and we all have the same abilitiy to succeed.

Yes, they are. Now if only they would stop buying into the argument perpetuated by democrats(not to mention fellow blacks)that they aren’t.

Do you think that we are stupid?

85% approval rating, and 95% will vote to reelect him in 2012, despite suffering more than any other demographic under this president. You tell us.

xblade on July 16, 2011 at 5:36 PM

Why is the American Economy being held back – not being given any oxygen? This isn’t incompetency, this is intentional international interventionism. or I I I if you like, it’s all about the globalist. It makes no sense if India, China, and Germany have seen GDP growth why the United States wouldn’t see growth also

It’s held back by the massive debt hanging over our economy by the near collapse of our financial system. It’s the type of balance sheet recession experienced by Japan in the 90′s and the Fed’s gravest concern is preventing it from stealing a decade of growth from the US.

Germany and China had a more tightly regulated financial system, preventing the speculation witnessed in this country and saving those economies from similar fates.

But you bring up a good point- why has the US economy failed to realize strong growth for so long? The problem started long before Bush. One reason that Greenspan held interest rates so low, for so long- adding major fuel to the housing bubble- is that job growth in this country was sluggish throughout the 90′s.

bayam on July 16, 2011 at 6:04 PM

It certainly explains why the White House is working so hard to demand tax hikes. They’ve already figured out that the economy is not going to improve by 2012 — even if it is “all Bush’s fault” — and the only thing left to do is to make sure the Republicans get all the blame possible, so Obama can get re-elected.

And then what? They still won’t be able to fix the economy. But I suppose they won’t care how bad the economy is as long as they hold on to power.

This is why we must have a conservative president now. Another RINO will view every bit of government spending as sacred so they don’t get blamed for cutting benefits, slap on a few spending programs of their own, and keep the economy in the toilet long enough that the public is ready to vote for Democrats again.

In my view, we’re better off voting for a conservative who loses than for a squish who wins, because the squishy RINO will NOT take the necessary acts to recover, and we’ll be back in a Carter the 3rd administration in no time. That way lies ultimate destruction.

There Goes The Neighborhood on July 16, 2011 at 6:14 PM

The only thing a Republican president will do, if elected (which I have no faith in) is deter the inevitable.

Washington is sick and diseased. Let it die. Let it rot and die.

bds1976 on July 16, 2011 at 6:18 PM

Nice job talking down the economy!

bayam on July 16, 2011 at 2:43 PM

LOL, you mean like the way the Democrat Media Talked Down the economy for the entire 8 years Chimpy was in office?

So, have you read the book “Reckless Endangerment” yet? I challenge you to put it on your summer reading list, but I won’t hold my breath. It was written by a NYT reporter, and exposed your Party as being the true cause of the meltdown.

Predictably, said NY Times gave it a poor review. I’m sure you will too!

http://www.nybooks.com/blogs/nyrblog/2011/jul/13/why-fannie-and-freddie-are-not-blame-crisis/

Del Dolemonte on July 16, 2011 at 6:48 PM

But you bring up a good point- why has the US economy failed to realize strong growth for so long? The problem started long before Bush. One reason that Greenspan held interest rates so low, for so long- adding major fuel to the housing bubble- is that job growth in this country was sluggish throughout the Clinton 90′s.

bayam on July 16, 2011 at 6:04 PM

Fixed.

The reason job growth back then was sluggish can also be blamed on your Democrat Media, which Talked Down the economy in order to get a Democrat-any Democrat-elected President.

Published Fed statistics clearly prove that the Economic Recovery that Clinton later took credit for actually began in march of 1991, or 18 months before the media elected him.
Had they reported the Recovery when it started, job growth would have immediately picked up. But they hated Pappy Bush, so he had to go. Hence they never reported it.

The NY Times belatedly admitted later that in fact, that recovery did begin in March of 1991.

They did so in an editorial in 1999. Mission Accomplished.

Del Dolemonte on July 16, 2011 at 6:56 PM

They did so in an editorial in 1999. Mission Accomplished.

Del Dolemonte on July 16, 2011 at 6:56 PM

Yes Del, you’re a victim. And all our problems are caused by a political party. Bush failed to create jobs because the Dems held him back.

bayam on July 16, 2011 at 7:03 PM

bayam on July 16, 2011 at 2:43 PM

LOL, there’s just no educating you, is there? Awfully proud of your persistent ignorance.

Midas on July 16, 2011 at 7:10 PM

xblade on July 16, 2011 at 5:36 PM

Yeah, unfortunately, I have to agree. As much as folks may protest or wish it were not true, these facts bear out the reality of the situation.

Midas on July 16, 2011 at 7:14 PM

It’s held back by the massive debt hanging over our economy by the near collapse of our financial system. bayam on July 16, 2011 at 6:04 PM

Which brings us full circle back to our credit rating, and raising the debt ceiling debate.

How can adding 2 trillion more in borrowing to an already ballooning debt, help that massive debt hanging over our economy? Who is going to lend us 2 more trillion dollars? If no one lends it to us – do we just print more money? QE whatever number we are up to now? We end up monetizing our own debt.

Dr Evil on July 16, 2011 at 7:22 PM

It’s held back by the massive debt hanging over our economy by the near collapse of our financial system. bayam on July 16, 2011 at 6:04 PM

And besides starving the economy, why would Obama want to raise taxes during an economic downturn? It’s almost like Obama, and his corporate cronies are hobbling our economy intentionally. Why? I know why Horses and Mules get hobbled to train them. We are a consumer based economy, we have been trained to consume. It hurts corporations, and whole countries manufacturing bases that sell their products to us….this is causing a slow down in the world’s economy. It’s clear that the present incarnation of our progressive led government is trying to train us – the question is what are they trying to train us to do? Barack Obama is the master of lowered expectations. Obama is the one that said, American’s exceptionalism isn’t any different than any other country’s exceptionalism. We are being trained to be mediocre and accept less. It’s not an accident, we don’t ever hear about the return to American Prosperity.

Dr Evil on July 16, 2011 at 7:45 PM

. . . we don’t ever hear about the return to American Prosperity.
Dr Evil on July 16, 2011 at 7:45 PM

Obama intends permanently to destroy America and its once preeminent role. His fundamental transformation is not temporary.

GaltBlvnAtty on July 16, 2011 at 8:07 PM

All the billions Obama has channeled Goldman Sach’s way and this is how they repay him? The rats must really be leaving the Titanic now.

Lon Chaney on July 16, 2011 at 8:18 PM

All the billions Obama has channeled Goldman Sach’s way and this is how they repay him? The rats must really be leaving the Titanic now.

Lon Chaney on July 16, 2011 at 8:18 PM

It’s a floating craps game, they just move the location when the attention get’s to hot here, they move it to Great Britain etc…

The money class may think they don’t have to play by the same rules as the rest of us. But they are subjected to the Natural Law just like everyone else. The current intelligentsia/smartest guys in the room’s intelligence, could be described as devious what we need are the wise.

As far as lowering our expectations. Remember Obama’s campaign slogan WTF – how many times did he work that into his last speech on raising the debt limit? Full campaign mode, says it all huh. I don’t know any Americans, that are willing to “Settle” now or in the future, it’s simply not in our nature.

Dr Evil on July 16, 2011 at 8:39 PM

Dr. Evil, they are running out of places to move to.

Hard Right on July 16, 2011 at 10:36 PM

I find it hard to see how Goldman Sachs gets to 8.75 percent unemployment in Nov 2012. After all, traditionally it takes 3.0 GDP growth to reduce the unemplyment rate at all and they are not forcasting that level of growth. So where are the jobs coming from?

If they expect to get down to 8.75 unemployment by having another 1/2 percent of job hunters drop out of the market then they should state that as it impacts what they expect from the overall economy. That is, its only simple honesty to mention that you expect the unemployment number to drop because the job markets will get worse, not better.

Fred 2 on July 16, 2011 at 11:46 PM

And besides starving the economy, why would Obama want to raise taxes during an economic downturn? It’s almost like Obama, and his corporate cronies are hobbling our economy intentionally. Why?

Obama’s evil cronies include Greenspan, Bernanke, Alan Simpson, and many others in the GOP with business or finance backgrounds. There’s zero evidence that returning to the economic world that existed before Bush’s tax cuts will end in apocalypse. You simply can’t eliminate the deficit without some new revenue- it’s very hard to find anyone credible who says otherwise.
Certainly the WSJ, Barrons, and other right-leaning financial publications have made a strong case for some higher taxes.
http://online.wsj.com/article/SB10001424052702304584404576440250900783950.html

You mentioned Germany before… Germany and other northern European countries all have much higher tax rates than the US. It’s not that the US is poor, it’s that our tax rates don’t match our love of military and entitlements spending. Germany doesn’t have any aircraft carrier groups or remote military bases to support.

bayam on July 17, 2011 at 2:01 AM

The obvious solution is to replace all of the spendthrift progressives trying to rule our lives that don’t seem to practice the American form of government any longer.

Where is the Senate Budget? Where is Obama’s “plan”, we want to see it!

It takes two to barter. How can Republicans compromise with Democrats if the Democrats won’t even make an opening bid? Everybody knows the process doesn’t work that way, it will never fly with the America people. So if the Rethuglicans pass up this easy victory it becomes apparent that they are probably serving another master, not “we the people”.

FloatingRock on July 17, 2011 at 3:24 AM

Weimar Republic, 2012.

oldleprechaun on July 17, 2011 at 7:35 AM

The Dems are counting on ONE thing and ONE thing only to re-elect Obama. We all know what it is, and it is a shame that the Dems have sunk so low.

siwrcw03 on July 17, 2011 at 8:59 AM

we now expect the unemployment rate to come down only modestly to 8¾% at the end of 2012.

The only reason it will hit 8.75 by years end will be due to extra retail hires for the Christmas season. Other than that expect it to remain where it is until Bury is buried in the history books.

darwin-t on July 16, 2011 at 9:42 AM

We all know the BLS numbers are phony anyway. They will just report whatever numbers they think they need to to get Bambi re elected.

eyedoc on July 17, 2011 at 9:24 AM

Germany doesn’t have any aircraft carrier groups or remote military bases to support.

bayam on July 17, 2011 at 2:01 AM

That’s correct Germany enjoys the blanket of the American Military protecting it. Do you know how many American military bases there are in Germany? Those same Americans based in Germany, spend money on the German economy. They get military protection from the U.S. and they get $$$ injected into their economy by Americans. I know this first hand, we were stationed in Germany at one time.

Dr Evil on July 17, 2011 at 9:33 AM

Dr. Evil, they are running out of places to move to.

Hard Right on July 16, 2011 at 10:36 PM

We don’t have an extradition treaty with France. They love to take their ill gotten gains, and buy villas in France. There is an old saying that, water finds it’s own level. Apparently their moral compasses point to French morals. We all know how high those morals are :)

Dr Evil on July 17, 2011 at 9:37 AM

Sounds like they are still wanting to carry his water. They’re too high on GDP and tooooooooo low on unemployment. I think government jobs – local, state and fed – are going to start plunging at some point, then carry unemployment into double digits. It’s a disaster out there, and we have only been seeing the leading edge.

Karmi on July 17, 2011 at 10:29 AM

Seven Percent Solution on July 16, 2011 at 2:36 PM

Because they want to believe in Robin Hood, brotherhood, unicorns and giving other people’s money away feels so good.

IlikedAUH2O on July 17, 2011 at 11:44 AM

“there’s no way to solve this w/o new revenues”

Maybe, maybe not. that is actually debateable. What is not debatable is that we cannot resolve the debt/deficit withou massive cuts and entitlement reform. Let’s do that first, and if we need to later, we can discuss democrats never ending need to tax more.

Monkeytoe on July 17, 2011 at 4:29 PM

If ‘new revenues’ were due to increased economic activity as opposed to enhanced confiscation, I might agree. Then we can discuss how to increase economic activity – not stifle it.

Fuquay Steve on July 17, 2011 at 5:32 PM

If ‘new revenues’ were due to increased economic activity as opposed to enhanced confiscation, I might agree. Then we can discuss how to increase economic activity – not stifle it.

Fuquay Steve on July 17, 2011 at 5:32 PM

Neh.

Key West Reader on July 17, 2011 at 5:51 PM

Does anyone remember the song called:

“The Cheese Stands Alone! The Cheese Stands Alone! Hi Ho-The Merry Oh, The Cheese Stands Alone”.

Key West Reader on July 17, 2011 at 5:53 PM

Key West Reader:
A while back in a thread you were on I said that Medicare was means tested. I looked at my bill again: It is Medicare Part B that is means tested. The basic Medicare is not. So, I was wrong. Sorry.

GaltBlvnAtty on July 17, 2011 at 7:33 PM

That’s correct Germany enjoys the blanket of the American Military protecting it. Do you know how many American military bases there are in Germany? Those same Americans based in Germany, spend money on the German economy. They get military protection from the U.S. and they get $$$ injected into their economy by Americans. I know this first hand, we were stationed in Germany at one time.

Dr Evil on July 17, 2011 at 9:33 AM

I agree, your completely right. It’s another example of the US subsidizing defense for all of Europe and it’s not financially feasible to continue doing forever.

bayam on July 17, 2011 at 11:03 PM

I agree, your completely right. It’s another example of the US subsidizing defense for all of Europe and it’s not financially feasible to continue doing forever.

bayam on July 17, 2011 at 11:03 PM

We haven’t changed our stance militarily since the wall came down, and the cold war officially ended. I don’t know what we are waiting for? NATO to get it’s act together or for us to go bankrupt……

Dr Evil on July 18, 2011 at 12:13 AM

Egan-Jones ratings agency downgraded the US over the weekend. Lots more, great interview with Sean Egan:

http://market-ticker.org/akcs-www?post=190220

mountainaires on July 18, 2011 at 10:41 AM

We haven’t changed our stance militarily since the wall came down, and the cold war officially ended. I don’t know what we are waiting for? NATO to get it’s act together or for us to go bankrupt……

Dr Evil on July 18, 2011 at 12:13 AM

Our genius president’s Start II treaty doesn’t cover smaller tactical nukes. (You know, the treaty he back stabbed Britain over by giving away the number of British missiles to get Russia to sign on) Russia has scads of tactical nukes lying around. We may have to consider troops in Germany to be the cost of maintaining our own economy, because if Europe ever falls, our economy goes with it. Russia proved in Georgia that they are willing to attack other countries by their borders.

scotash on July 18, 2011 at 2:19 PM

Russia proved in Georgia that they are willing to attack other countries by their borders.

scotash on July 18, 2011 at 2:19 PM

I think Putin plans on taking over Western Europe with a Gas Pipe Line, he can turn on off and on at will :) The friction between nation states in the 21st century, is the race to secure energy resources. We are way behind – there was a survey of the condition of the current Iraq oil fields. They are aging and their infrastructure, pipes etc., need lots of updating/replacing. If our whole purpose was to open up Iraq’s oil fields to development – even after signing contracts with the Iraqis, and spending upwards of a trillion dollars on that war, we are still lagging behind in the race….the good news “Nobody plays catch up like Americans” Now if we could get Obama, to lift his foot off the energy sector’s necks, we could see the current race get competitive. I can’t help but think Obama is the international communities answer to dealing with American competition (The I I I- International Intentional Interventionism). Although they aren’t loving him as much as they used to…chalk that up to be careful what you wish for, you might just get it.

There is a saying, just because you’re paranoid, doesn’t mean little green men aren’t following you around :) There are times, being the last Super Power, feels a lot like we are walking around with a big red bulls eye painted on our backs.

Dr Evil on July 18, 2011 at 6:46 PM

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