Why is Consumer Confidence in the Tank?
The stock marked moved sharply down today as an unexpected report showed US consumer confidence went into the tank from last month. (Well to be fair, it has been in the tank for quite some time, but today’s report dropped approximately by 6 points).
I do find it interesting that the market was expecting a higher number. There must be a lot of Obama zombies out there who actually think we can dig ourselves out of debt and into prosperity by taking on 4 times the debt of President Bush’s last term. (I find it somewhat funny that they are shocked to find that Obama is not the master of the economy they thought he was, and is actually completely lost in this regards.) There is although one thing Obama is excellent at; putting our children into massive debt and growing big government.
If it is not clear yet why consumer confidence is in the tank, I’m going to just point out a few reasons why…
Unemployment Rate is still rising – Approaching 10% nationwide
In the midst of a 1.5 trillion dollar health care plan, and ‘Cap and Poverty‘ bill, I guess the administration forgot about their unemployment numbers, or it could be that the ’state run’ media is choosing not to report on such matters. Unfortunately unemployment will not recover as long as government debt and taxes are increasing.
If your not a business person I’ll explain it to you simply. If you tax a business, it removes their cash, which means they can’t hire you to work for them. Coincidently, No cash = No jobs! It’s rather simple, but for some reason those in government can’t figure this one out…. or worse, they know it’s true and choose government power in exchange for higher unemployment. (That way you are more at their mercy, and therefore more of a slave!)
Government Debt has quadrupled under Obama – Now 11 Trillion dollars with a 2 Trillion dollar deficit this year!
If your like me, you love your children and want them to grow up under a country of liberty. To see this type of government debt with no end in sight or desire to reduce the size of government in order to shrink it, causes me to fear for the future of my posterity. If this pace continues as it probably will under President ‘Spend Alot‘, next year our federal government will be 14-15 trillion in debt with an increase of 2-3 trillion per year. It is not unlikely for our outstanding government debt to be near 20 Trillion dollars by the time Obama is up for election again… Can anyone even fathom 20 trillion??
Tax, Tax, Tax!
In order to pay for everything, the government is currently conducting 2 experiments. Selling Treasuries (debt) to the public (mostly China) in order to finance our expenses. And, increasing our money supply (aka. printing money and debasing the currency). Both of these are unsustainable long term, especially together. As the dollar declines in value due to the FED printing money like mad, other countries are not going to purchase our debt and continue funding the party, especially if their payment is in legal counterfeit.
What will government do?
You guessed it!… Tax! This administration will be forced to either reduce the size of government, or significantly increase our taxes. Reducing their power will never happen, so it’s no guess on what they will do. The Tax Man Cometh!
How it adds up?
It adds up to increased unemployment, higher taxes, lower wages, a devaluing dollar, higher cost of living, and a lower consumer confidence… No left wing agenda or spin will be able to change this eventual outcome. It seems are liberal friends in government are bent on driving this economy straight off the socialist cliff, with prosperity close behind.
The answer although is rather simple, but takes moral courage and true conservatives to fix… Downsize our federal government and believe in the principles of prosperity again.
Cheers Thinking Patriots,
Jason
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