The war on the American Middle Class
Larry Kudrow of CNBC recently wrote a column about Obama’s economic strategy, in which he called the Obama policies a declaration of war on investors, small businesses, entrepreneurs, and capital funds. http://www.cnbc.com/id/29434104
While Kudrow calls it exactly like it is, he fails to come to the logical and obvious conclusion. Obama isn’t simply making mistakes or following a bad policy. He is deliberately trying to destroy the economy.
To understand this, you must understand Obama. Obama, in his own words, has said he has always been attracted to Marxists. Starting with Frank Marshall Davis, who befriended the teenaged Obama in Hawaii, to Jeremiah Wright to Bill Ayers, Obama has always associated with Marxists. Obama is also a follower of the late Saul Alinsky. Alinsky advised his followers to become mainstream, go in the system, and work to destroy the system from the inside. Obama has followed this to the letter.
The obvious question some have is why would he do this?
It is simple. Obama is in fact, a Socialist/Marxist. Socialists, and those on the far left believe that Capitalism is inherently evil and must be replaced by an economy totally controlled by the State in order to assure “fairness”.
Thus Obama, Pelosi and the hard left of the Democratic Party have launched their war against the economy and the middle class. They want a depression. Why? Because, with a depression, more people will become dependent on the government. With that dependence on the government, they will vote to maintain the Democrats in power for the foreseeable future. This worked with Roosevelt. He was elected in 1932 and it took twenty years for another Republican to be elected President.
The ultimate goal of the Obama/Pelosi/Reid axis of fiscal evil is the destruction of the middle class. Consider what they are doing. Their policies are taking what would be a bad recession and turning into a depression. Every time Obama opens his mouth, the Dow drops 200 points. By increasing taxes on individuals, we have less to spend. By increasing taxes on corporations, it is increasing the costs of doing business. Most of those costs will be passed along to consumers. For some businesses, it will be their death knell. The Democrats talk about nationalizing banks and the bank stocks plunge, leaving little choice but for the government to become the majority shareholder and wiping out investors. The Democrats continue to wipe out the value of the stock market. As they do, they advocate an increase in the capital gains tax rate. This only pushes the markets further down as investors try to get out before the new tax rates kick in. Aging baby boomers are not only seeing their 401(k)’s being diminished in value, but now they, since they must liquidate their 401(k)’s starting no later than age 70 and ½, they have wonder how they are going to even have a retirement.
In the next year, as the stock market craters and as aging baby boomers see their prospects of a retirement disappearing, they will be offered a chance, by the government, to transfer their 401(k)s into a government retirement system. Not a good prospect.
The hallmark if the middle class has been homeownership. Obama, Pelosi and Reid are working to end that American dream. The House has begun rewriting the bankruptcy code. Among other portions of the new Pelosi bankruptcy code, there will be what is called a “cram down” provision. This is going to allow Federal Bankruptcy Judges to rewrite mortgages and even reduce, not only the interest, but the principle as well.
Imagine what this is going to do to the mortgage industry. Mortgages are at 5% because they are very safe investments. In the mortgagee defaults and goes into bankruptcy, the only creditor with any greater standing is the government and if the property owner cannot make payments under the bankruptcy plan, then the mortgage company gets the house back. No more under this plan.
Mortgages will no longer be a safe investment. Banks will have to raise their interest rates, just to cover their risks. In addition, lending requirements will become much tougher. Twenty or even thirty percent down payments will be come the norm. Young families who in the past could afford their first home at a fairly early age, may well have to wait until their thirties or later to afford their first house. The ripple effect of this will be to cripple the building industry, putting more people out of work.
This is only part of the Obama war on the economy. We have to fight and take our country back, before Obama destroys the America we know.