No Collusion? Recession!

No Collusion? Recession!
No Collusion? Recession!

With their witch-hunt having bled out, the Democrats are now concocting and promulgating the conspiracy theory that we’re about to go into a recession and that President Trump will make it into a disaster of global proportions. This, despite the fact that under President Trump’s leadership, America’s economy has strengthened and improved to levels unheard of in recent years, if not decades.

Yeah, it’s nothing but the next mendacious screed from the Left and their media, made in the desperate attempt to harm President Trump and to get one of their own into the White House.

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Subprime Intelligence

Obama the IdiotAmerica is suffering through trying times and such trying times called for men of character and intelligence to step up and lead the way to better days. Sadly for each and every American, we’re saddled with Obama and the boy has no character of note and an obviously subprime intelligence

Yes, it’s probably too much to ask that Obama to learn from history. One could, however, quite reasonably expect anyone approaching the average human intellect to be able to learn from current events.

Such expectations that Obama had the basic human capacity to learn and adapt seem to have misplaced. In the wake of the Subprime Mortgage Crisis that caused the Great Recession, Obama’s policies for the FHA have been to do the same thing again with the same borrowers who defaulted the last time.

After two foreclosures and two bankruptcies, Hermes Maldonado, a Honduran immigrant, recently qualified for an FHA loan for a home in the Los Angeles area.

“After everything that happened, thank God I was able to buy another house.”

Under Obama, the FHA has more and more backed new home loans to so-called rebound borrowers, those who have recently defaulted on previous mortgages. The agency is now allowing lower-income borrowers with extremely low credit scores to get loans a mere three years after foreclosure and with as little as 3% down. This has resulted 40% of newer FHA-backed loans being subprime.

The natural result of this stupidity is that a large percentage of these loans are more than 90 days delinquent and many more are actively in foreclosure.† These losses have depleted the agency’s reserve fund to 0.24% during fiscal 2011, which is barely more than one tenth of the Congressionally-mandated 2% level.

With cash reserves almost nonexistent and analysts predicting that over 30% of FHA backed mortgages will be in delinquency within the next five years it’s expected that FHA will need a taxpayer-funded bailout in the very near future – to the tune of over $50 billion.

I’ll give Obama and his handlers and sycophants credit though. They don’t do stupidity in a small way; theirs is a larger than life sort of idiocy.

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Double-Dip Recession?

A lot of talk keeps going around about fears that America is going to experience a double-dip recession.

Double-Dip Recession - Yes, with Dipwad and Dipshit, i.e., Obama and Biden
Yes, We’re In A Double-Dip Recession

This seems pretty damn obvious to me. With the two dips, Obama and Biden, filling the top two positions in the Executive America, is, and has been, in a double-dip recession.

Of course, this fear is just the fantasy of economists. Whether the recession slowly “ends” or double-dips is largely irrelevant as it is based upon the GDP. Insofar as the bulk of the American people are concerned, we’ve never come out of the first recession.

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Krugman’s Eurod√§mmerung

The Leftist, Socialist, Anti-American Pseudo-Economist Paul KrugmanI’m not one to pay overly much attention to the various things that spew from the maw of Paul Krugman. The pontifications, ramblings, and rants of a rabidly fanatical Keynesian neo-Socialist who makes his rent working for the filthy rag known as the New York Times aren’t the sorts of things that I, or any other American, normally pay much heed to – except to keep an eye on what our nation’s enemies are thinking or emoting.

Krugman is willfully dead wrong more often than not on causation and dead wrong, again willfully, every time when it comes to remediation

All that being said, Krugman is not an idiot and he is skilled enough to make solidly plausible predictions of future events, especially relatively near-term ones.

Some of us have been talking it over, and here’s what we think the end game looks like:

1. Greek euro exit, very possibly next month.

2. Huge withdrawals from Spanish and Italian banks, as depositors try to move their money to Germany.

3a. Maybe, just possibly, de facto controls, with banks forbidden to transfer deposits out of country and limits on cash withdrawals.

3b. Alternatively, or maybe in tandem, huge draws on ECB credit to keep the banks from collapsing.

4a. Germany has a choice. Accept huge indirect public claims on Italy and Spain, plus a drastic revision of strategy basically, to give Spain in particular any hope you need both guarantees on its debt to hold borrowing costs down and a higher eurozone inflation target to make relative price adjustment possible; or:

4b. End of the euro.

And we’re talking about months, not years, for this to play out.

Of course this isn’t exactly rocket science or even one of the more arcane examples of the semi-mystical art form known today as the study of Economics. Both hyperinflation and the end of the Euro in the near future are easy predictions to make in the wake of Greece’s Keynesian meltdown and financial collapse.

NOTE: Krugman’s prediction of a European financial meltdown matches my own and naturally feeds into whatever level of Confirmation Bias that I’m saddled with.

Of course these events will happen and happen soon. They were foreordained from the moment of Greece’s financial implosion under the weight of their Socialist economic policies.

I’ll add though that these event will, in turn, most likely lead to the breaking of the European Union by 2015. They can’t hold together as a government – or meta-government, or whatever they are – without a common currency.

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It’s Nothing New

Every generation has the sad tendency to think its problem are new, novel, and unique. Each successive generation chooses to ignore Santayana’s wise words, “Those who cannot remember the past are condemned to repeat it.”

This is especially true of America’s current economic problems and the resultant attempts by Obama and the Democrats to profit from them. It’s nothing new at all; America went through the same things in the Great Depression of the 1930s.

From When The The Raw Deal Was New

The various talking heads of the current generation of demand-driven, monitarian, and macroeconomic economist are all arguing the exact same causal factors now as their predecessors did in the early 1930s.

Obama as Franklin D. Roosevelt - so much truer than any comparison between Obama and Lincoln beyond their similar totalitarianism and disregard for the Constitution
I propose to the American people a New New Deal

More importantly and dangerously, Obama and the Democrats along with the labor union syndicates they’re beholden to have been capitalizing upon Americans’ misfortune in very similar manners to how they did during the Great Depression.

Obama The Pharoah - Every son that is born you shall cast into the river!The only functional difference between how the government and their backers and handlers have tried to capitalize off of today’s “Great Recession versus how they did so off of the Great Depression is that the syndicates of labor unions are now so entrenched in the government’s procurement process that Obama can’t engage in the pharaonic building projects that Franklin D. Roosevelt reveled in during the ’30s.

They just can’t recreate the Works Progress Administration (WPA).

This is important because FDR, his cronies, and his handlers managed through the political and financial profiteering to drag out the Depression for years and years until World War 2 finally forced the government to focus to change its policies. Obama’s, his cronies’, and his handlers’ political and financial profiteering will do the same thing – except that we don’t fight wars the same way anymore so getting into one won’t work as an economic fix this time.

This is nothing new. Our current situation and people’s reactions to it are little different from what has gone before. We need to learn from those past events and prevent this generation of bad actors from doing to us what their predecessor’s did to our ancestors.

~*~

H/T to†YesterYear Once More for the 1930’s political cartoons. It’s an interesting site showcasing how American life was reported by journalists and writers several generations ago. YesterYear Once More has also been to Reflections From A Murky Pond’s blogroll.

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