Obama Pledges $447 BILLION in attempt to win re-election.

Obama articulated last night "I tell you, the American People....
you can stick a finger in this economy...cause it's fucking TOAST!!"



Make no mistake about it, Obama is out trying to buy your vote in the 2012 Presidential election.  Last night's speech was NOT about fixing the economy, it was about votes and about winning a second term which as each day passes looks less and less likely.  

 The president is now proposing that we spend 75% of the total amount pledged in 2012.  That would add roughly 3% to the GDP forecast (already at 2%).  So we can safely assume that we will see GDP growth of 4-5% in 2012 if this bill is passed.  That's great, right?  NOT!!

Listen, we have been down this road before.  It is called fits and starts.  A few years back we got the big stimulus plan and we built some roads, bridges etc.  What happens when the money runs out?  Back to the unemployment line.  The president continues to miss the big picture:  Job creation is bigger than printing money and having it spent over the course of a year or two.

The Angry Trader has been arguing for a comprehensive plan to reshape the American worker for many years.  We have yet to see this from either the Republicans or Democrats.  Until we do, we will be pissing our money down the drain.  Where is the SPECIFIC jobs plan to retrain and hire people to build out the "green" energy programs we have heard about for 3 years?  What other specifics can you offer to give the American people a true road map to recovery?  Exactly, essentially none.  

So let's assume that its a big hit, the $447 BILLION. that is.  Let's assume we put people back to work and unemployment drops to 8.5% in 2012.  Has anyone asked where the money will be coming from and what this will do potentially to inflation and the overall economy?  The answer is simply NO.  Nobody dare ask these questions because the economy is in such poor shape and on the verge of another collapse.  The reality is that our government in their continued push to print and spend is going to stoke the flames of inflation until it is spreading and raging like a Los Angeles hills Santa Ana winds fire storm.  Our inflation numbers are already moving a tad higher and that is without including food and energy in their mathematical assumptions.  How is it that the two items that are taking more money out of our pockets are NOT included in these figures.  Answer:  It would cause too big a panic here if they were.  The numbers would simply look horrible (and FYI, this is not an Obama thing...it has been going on forever!!).

When unemployment does NOT drop because this is a jobless recovery unlike anything we could have predicted and inflation continues to rise, we will see stagflation, something The Angry Trader has been warning of for 2 years now.  Believe me, it is coming and is inevitable.  Printing more money will only accelerate this problem. 

So we put it back to you...is this about fixing the economy or about re-election? 

--The Angry Trader.