Economic Liquefaction

Look around. Take note of what is going on in the world and the nation around you. For not too distant in the future, those who have the means to rewrite history will do exactly that to publish their version of truth. Don’t forget, in spite of 9/11, that our country enjoyed a strong economy until the mortgage fantasy of “affordable housing for all Americans” poisoned the underpinnings of our capitalistic economy and left many who played by the rules wondering where all their savings went. Don’t forget that long before we were all delivered from the wilderness in November 2008 that the price of gasoline had returned to reasonable levels. Don’t forget the federal income tax rate that you are paying for your 2008 AGI as it will not be so low next year. And most of all don’t forget that our homeland has not been attacked by terrorists since 2001.

Now back to the world around you; have you heard that there is an economic crisis? There is obviously much debate about how we should proceed to turn the economy around. Those who believe in capitalism and market forces believe that allowing the economic cycle to run its course, while painful, will lead us back to solid ground. Others believe that government should step in to shore up the economy by helping those that are “too big to fail”. As indicated by my mortgage fantasy statement, I believe the government shore up may help in the short term, but the overall affect will be to prolong the pain of economic recovery by allowing companies that will eventually fail anyway to hang on longer than they should.

It is my opinion that a convincing argument may be made by making your opponents position look weak. It is obvious that President Obama favors larger government and the shore up approach. Since President Obama uses every opportunity to state how much of a crisis our economy is in it is my opinion that he is practicing Economic Liquefaction. By talking down the economy, I believe President Obama is intentionally trying to convince the entire country that capitalism has failed through the destabilization of the economic ground beneath our feet. As the economy becomes less stable it will become apparent that the government shore up is the only available option. The weak economy also provides President Obama with an excellent margin of error as the history writers will “remember” how he turned the failed economy around since it had nowhere else to go but up. There is definitely a big upside for the President and the Democrat congress to allow the economy to languish a bit longer so that the eventual recovery can be attributed to all of their “help”.

Hoping for Change.

##That’s my opinion##