Changes in US economic outlook.

Changes in the US economic frame work.

The New Deal.

The frame work of the US economy underwent three changes during the last century. The first change was the Depression. The Stock Market bubble and its unwinding was used by America’s Socialists to introduce the New Deal. Part of the New Deal was repealed in order to win WWII. The US remained a basically market-driven economy.

The Reagan revolution.

Ronald Reagan rolled back some of the confiscatory taxes the Left had imposed and had proven that supply side economics works. That is, if you reduce the taxes of high earners (who know best how to earn money), the economy grows faster than if the government goes into deficit spending to try to stimulate the economy. The Left succeeded in preserving Social Security (a govt Ponzi scheme), but failed to sabotage the economy or save the Soviet Union though unilateral disarmament of the US. Communism was beaten.

The Obama CHANGE.

The Obama regime began even before this impostor was elected. In order to recapitulate the Roosevelt Presidency, the economy had to be crushed so various Socialist programs could be started or enlarged. The basic mechanism of crushing the economy was the imposition of the ‘mark to market’ rule. This gave the faceless bureaucrats the tool to stop money circulation and bring the GDP down very quickly. Obama was elected. Following the election, a bunch of radical Leftists were installed as “Czars,” but the proper name for them is “Commissars” –unelected Party hacks who answer to no one except the President.

The new regime quickly acted to nail down some of its priorities: a) setting aside billions to promote Democrats re-election in 2010, b) nationalize the automobile and insurance industries and control the financial industry, c) control (reduce) energy production and c) try to nationalize the health care industry. Michelle Obama told a woman’s group that the Movement that brought Obama to power has government-run insurance on its program next. Shutting down Talk Radio is next and then disarming the population and the establishment of a political army.

The regime made assumption on how the economy would work. The basic assumption is that money flowing from various pools are isolated so the Regime can control them separately. That is the classic flaw of Socialist economic thinking.