Monday, August 03, 2009

'Obama's Magical Misery Tour'

Jerry Bowyer:

"Obamanomics, like traditional Euronomics, features the job-killing combination of massively higher government spending and tax increases. Capital will flee this environment along with new jobs.

As for inflation, price levels have turned upward of late — an expected trajectory as we move away from the deflationary risks of this recession. But higher future inflation remains a serious risk due to a dramatic expansion of the monetary base by the Federal Reserve. Thus, any near-term price-level increase demands close inspection.

.....If this trend continues into next year, can Obama and the Democrats seriously argue that, 'Yes, unemployment is high, and yes, food and gas prices are rising, but look at that 10,000 Dow!'? And can they say all this with a straight face? I think not.

Obama chose the measures by which his economic plan is to be judged, at least in the political arena. And those measures say misery is back in town."

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