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MOSLER'S LAW: There is no financial crisis so deep that a sufficiently large tax cut or spending increase cannot deal with it.

Archive for January 30th, 2011

Obama himself, talking like a true convert to the Conservative Party

Posted by WARREN MOSLER on 30th January 2011

Looks like the media is getting on to a lot of what I’ve been saying since President Obama was a candidate?

These are not your father’s Democrats.

And they afraid we might be the next Greece, and so are on a path to turn us into the next Japan.

GDP is improving modestly, thanks to the 9% federal deficit. However, given the current credit environment and high productivity growth, it’s not enough to bring down unemployment in any meaningful way.

The near 0% interest rate policy continues to suppress private interest income and, along with it’s positive supply side effects, has helped the inflation indicators to continue to decelerate.

Increased exports evidence the more to reduced real terms of trade, with higher crude prices hurting as well. (we are exporting more and more just to ‘pay for’ the same amount of imported crude)

The last thing our standard of living needs is what the President threatened when he said something like ‘now that the worst of the recession is behind us, we can turn our attention to deficit reduction.’

LEFT TO WONDER IF HE’S ON RIGHT
By Charles Hurt
Publication: The New York Post
Date: Wednesday, January 26 2011


 
WASHINGTON – Stop spending! Cut taxes! Simplify the tax code! Expand free trade! Slice the deficit! Slaughter the pork!

No, that was not some Tea Partier or the battle cry of Republicans last night in response to President Obama’s State of the Union Address.

It was Obama himself, talking like a true convert to the Conservative Party.

The lefty liberal asked both parties last night to come together to eliminate the endless complexities in the tax code that has created a cottage industry for accountants but has been the bane of businesses and workers alike.

And he urged Congress to cut taxes. But not just any taxes.

The man many believe to be an all-out socialist whose policies have been hostile to businesses actually called on Congress last night to cut the corporate tax rate.

Few Republicans in these tough times have the guts to carry the banner of cutting this country’s corporate tax rates, which are among the highest in the world.

And it is truly astonishing to hear this from the leader of the party that is so completely devoted to trashing companies and corporate successes like Wal-Mart – even as Democrats claim to want to lower unemployment rates and foster a thriving economy.

Obama called for free trade with foreign countries, even as his fellow Democrats continue to insist that all free traders want to do is send jobs overseas.

And he hewed to a conservative line on cutting the deficit – a truly terrifying burden that just months ago Obama dismissed as insignificant as he added trillions of dollars to it.

The moment Obama really threw down the gauntlet came when he locked arms with conservative Republicans to denounce earmarks, those fat chunks of your money that lawmakers grab to pay for pet projects back home and plum favors for political supporters.

Obama explicitly vowed in no uncertain terms that if Congress sends him any piece of legislation with any earmarks in it, he will flat out veto it.

This was met with muted applause and just a small handful of decent politicians in the chamber leaping to their feet to applaud.

The question now is whether the President Obama we heard last night was genuine – or the speech was just another cynical political ploy by a Washington politician looking ahead to his re-election next year.

Will Obama actually follow through and lead his party to join Republicans to lower the corporate tax rate, dramatically cut the deficit and finally put an end to the political pork spending that politician after politician has proved is the “gateway drug” to corruption?

A glance at his record does not leave much room for hope.

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