Federal policy is damaging the economy’s prospects. It fails to provide the needed tax incentives for investment in factories and equipment, incentives that were central to efforts to revive the economy during the Kennedy-Johnson era and under Ronald Reagan. But government spending can’t lead the way to sustained recovery, because its stimulating effect will be offset by anticipated higher taxes and the need to finance the deficit.The US economy is nothing like it was in the 1930s. In some ways, it is much worse. When confidence in the US dollar finally erodes away, there is nothing to stop the economy's fall but a vast vacuum created by trillion dollar deficits -- courtesy of Dear Leader Obama-Messiah. These are the times for making alternative plans. Hope for the best. Plan for the worst.
Heavy-handed federal intervention into the management of companies from banks to auto makers will also delay recovery. And misguided efforts to help distressed homeowners by permitting courts to rewrite the terms of mortgages will cause banks to limit mortgage lending, which will prevent housing from contributing to the recovery. _NYT
Meanwhile, China is sinking billions of dollars into investments in the Caribbean and Latin America, building influence in the backyard of Obama and his zombie horde. Russia is likewise solidifying military alliances with Venezuela and Cuba. Weak presidents -- like Carter was and Obama is -- open the door to their country's enemies. China and Russia would be no kind of enemy at all, were they to turn down this opportunity. And despite significant problems at home, neither Russia nor China would dare pass up a chance to weaken the influence of the mutual bane to their individual dreams of world hegemony.
Previously published at Al Fin