US:Obama quadrupling of deficit is Crazonomics- a recipe for disaster

In President Obama's first year in office the deficit is expected to reach $1.75 trillion. In President Bush's last year in office, 2008, the deficit reached $459 billion. So Obama is quadrupling the deficit. This is voodoo economics at its best. Oh certainly Obama has bought change to America but it is change for the worse.

In addition he is endeavouring to introduce a healthcare plan, which is financially unsustainable. Meanwhile inflation is set to take off. Taxation must rise to fund this Crazonomics. China has begun to question the size of the deficit and is no longer prepared to sign a blank cheque.
America may have a slight upturn but the long-term prognosis for the US economy is frightening unless the deficit is tackled immediately. Being master of the teleprompter is no substitute for economic expertise.

America has the worst of all worlds now. A big spending-economically illiterate Democratic President and big spending Democrat controlled Congress, which is addicted to pork barrel spending.

Thankfully the Republican Party has begun to learn the lesson that there is no such thing as a free lunch and is now preaching fiscal rectitude. It has begun to go back to basics.
Once Obama passes the 24 month period in office he will be in the run in to the 2012 presidential election. It is safe to argue that if he fails to tackle the deficit within the next 12 months, nothing will be done in 2011 and 2012. Of course foreign lenders may force his hand and refuse to fund the deficit. Then the US economy will bomb.

Obama will cost you

This image summarises Obama's economic policy. His plans to double the tax on invested capital and to push up the top tax bracket to an effective 60%, will cripple the economy. His proposal to raise capital gains tax to 28% could trigger a stock market crash and will hit middle income earners very hard. He intends to increase spending by €1000 billion over four years. This is voodoo economics.

His policies of higher taxation and redistribution of wealth are akin to those of the French Communist Party. They are certainly to the left even of most European Socialist Parties. They are a recipe for economic stagnation and increased poverty. So deeply embedded are such policies in European countries such as France and Germany that conservative governments when elected to power can only tinker at the edges. To introduce the radical reform necessary is to court political destruction.
Will the American voters learn from the mistakes of their European friends?

Obama's Spending Plans involve a smash and grab raid on American Taxpayers

Many voters are besotted with the rhetoric, oomph and personality of Barack Obama. All this comes with a price tag. Unfortunately most of his supporters have failed to delve into the specifics of his taxation policy.
Obama’s taxation policies are a mirror image of the failed taxation policies of the French and Swedish Socialist parties.

He has promised to raise the capital gains tax from the current 15% to 28%. This is a recipe for disaster. Lower rates of capital gains tax bring in higher revenue yields. Reganomics proved the veracity of this statement.
Obama’s capital gains tax increase will hit 100 million American tax payers. Investors are likely to move in advance of an Obama Presidency- to sell shares. This may trigger a stock market crash.

He is a strong believer in higher Government spending. His promises so far amount to $800 billion over four years.

He intends to allow the 2001 and 2003 Bush tax cuts to expire in 2010. This will raise taxes on millions of Americans by many billions of dollars.

He intends to tamper with the $102,000 FICA payroll tax cap. A President Obama will ensure that anyone making over $102,000 will pay an additional 7% in taxes on earned income.
He also intends to target the loan dividend tax rate implemented by George Bush.

Obama’s rhetoric may hypnotise many voters but his taxation policies leave a sour taste. He is on the extreme left of the Democratic Party and is no more than a tax and spend liberal. He is the darling of the Democratic Socialists of America .This group was formed from an amalgamation of Trotskyites, Communists and extreme left elements.