We are only now just beginning to see the true dimensions of the economic damage President Obama has inflicted on the nation. Will he get re-elected? Not with what’s happening to the economy before our eyes.
Washington is operating on a full forward throttle of monetary stimulus and carrying a $1.5 trillion deficit and still we are creeping along at a growth rate of under two percent.
But the signs are that things are about to get much worse:
* The OPEC nations are determined to hold the price of oil above $100.
* The Fed is about to end the massive printing of money called Qualitative Easing-2 on June 30, contracting the money supply.
* A growth rate of under two percent triggers higher unemployment since it is less than the combined rate of population growth and worker productivity.
* Interest rates are set to rise as the US needs to borrow money from real lenders as QE-2 ends.
* Inflation is gripping China at the same time that its real estate bubble is bursting, impairing China as an engine of economic growth.
Can Obama get re-elected with stagflation like we saw in the 70s? Could Carter? But the massive printing of money by the Fed in the past two years is similar to that which Nixon used to hold up the economy in the early 70s. And the stagflation we are about to witness will be equal to that which ensued.
With 47% approving of the job Obama is doing according to the new Washington Post poll but only 40% approving of his economic record, his ratings are bound to fall. And to keep falling until Election Day. Any good Republican will take him out.