The quoted article is the Obama administration through the eyes of Dick Morris. Much of what Dick Morris says will come true but there are many twists and turns that cannot be forecast.
As Morris says only half the nation will soon be paying taxes and the other half will be getting government handouts. How then can the Republicans expect big gains in 2010 and 2012 when the majority in this nations will be dependents of the Democrat government? That makes no sense. Morris also underestimates the power of media to spin all the failures that will occur as necessary pains for later success. So I do not think it will be easy for the Republicans to make gains in 2010 or 2012 unless the whole house of cards collapses before then and government entitlements can no longer be paid (then get ready for the riots).
Also the deficit spending will be so large that soon either the middle class will be paying double the taxes that they are now or the dollar will collapse because no one will buy our debt at low interest rates. So then you have a situation where tax productive people are taxed so much that they because unproductive, you tax business so much that they close the doors, you default on your debts or you allow hyperinflation. Any of these will bring us back in a worse depression then what looms now. No one should expect a long term recovery under democratic socialism.
They will be throwing good money after bad. They will be wasting trillions on unproductive government work programs and world environmental problems such as global warming that do not even exist. Their policies will raise the prices of energy to everyone. So then how in the world can we get a economic recovery out of polices like this? It is not going to happen and the national debt will be a lead weight around our head.
For example, the national debt will rises to the 20 trillion by 2012. That figure is now very likely since our deficits will be at least 2 to 3 trillion a year for the foreseeable future. So who buys all this debt? If we expect other nations to buy our debt we better expect them to demand 6 percent returns or higher because of the increased risk of a U.S. default or a dollar collapse. So lets do the simple math. 20 Trillion x 6% = 1.2 trillion dollars a year just to pay the interest on our national debt.
That is almost the entire government intake in taxes in the United States each year and that leaves almost nothing to fund our government programs. That will making it necessary to continue to borrow at least $2 trillion more each year just to run our government until we default or the dollar falls in value to the price of toilet paper. So being realistic this is not going to be just another business cycle or another failed presidency where conservatives can come in at the next election and right the wrongs. The Obama-nation will lead the nation to nothing short of economic destruction. People often wondered what the world will be like when the spoiled brats control freaks of the baby boomer generation came into power. Now they will find out.
TheHill.com – The Obama presidency: Here comes socialism
But none of these changes will cure the depression. It will end when the private sector works through the high debt levels that triggered the collapse in the first place. And, then, the large stimulus package deficits will likely lead to rapid inflation, probably necessitating a second recession to cure it.
So Obama’s name will be mud by 2012 and probably by 2010 as well. And the Republican Party will make big gains and regain much of its lost power.
But it will be too late to reverse the socialism of much of the economy, the demographic change in the electorate, the rationing of healthcare by the government, the surge of unionization and the crippling of talk radio.
