Thursday, June 25, 2009

Recovery When?
How About If?

by C. Edmund Wright - June 25th, 2009 - American Thinker

Obamanomics simply will not work. It is based on a total misdiagnosis of our problems and prescribes precisely the wrong cures.

Consider the following series of events that have led us to our economy today:

1: Energy. While it is conventional wisdom that our economic woes stem from the bursting bubble in the housing market, few consider the needle that did the bursting.

When gas more than doubled in what was just a period of months, household budgets got devastated as trips to the grocery store and the pump took more and more of the limited dollars of the sub prime borrowers' budgets. This led to the next domino:

2: Housing Crisis: People needed to eat and get to work more than they needed to pay a mortgage they had not invested a down payment in, so they quit paying those mortgages in huge numbers.

So the gas domino nudged the sub prime mortgage domino -- which then toppled dominos in both the mortgage market in general and in housing prices. More and more mortgages were in trouble making more and more houses available making those houses worth less which in turn motivated more and more people to default on these mortgages...

At least one other person besides me seems to understand the integrated nature of cheap energy and our economy. Since the Magic Marxist Messiah seems hell bent on increasing our cost of energy, who among you thinks that the consequences can be anything but catastrophic?

I don't. The problem is that the general public does not want to read any articles about the complex world of energy. Because it takes years to bring energy to market this is a problem they are not concerned with. The general public cares about next week, if more than today matters at all. The fact is we need to be drilling right now, but we aren't. All three branches of our government, judicial- legislative- executive, are working to end use of cheap energy in America.

Solar is not cheap. Wind is not cheap. the illusion that so-called "green" energy can solve our problems is based on the idea that the price can be reduced by making someone pay taxes and then the taxes are used to subsidize the price. Pass a law and green energy will work fine. Trust us, say the democrats.

Only oil, natural gas, coal and nuclear are cost effective... i.e. cheap. the rest will only be used if taxes are used to subsidize them. Cheap energy is the motor behind our economy. When that is sabotaged, as Obama is doing right now, it will take years to fix the problem. Those are years we do not have.

Mr. Wright has diagnosed the problem more accurately than most. It is incredible but there are people who still think that you can sabotage free enterprise and because we are America, it will not matter. Obama insists that what we are doing is not socialist because making America socialist does not make us socialist because we are America and America is not socialist. What? Obama actually said this. He took a couple of minutes to say it and he packaged it with a bunch of fancy words so it sounded logical, but that is what he said.

That is exactly the kind of gibberish that is leading us down this insane path. At the end of the path a lot of Obamanistas are going to learn that fancy talk does not substitute for understanding economics. Obama doesn't. He drank the koolaid of socialism first.


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