Posted by: the watchmen | January 10, 2009

Barak Obama”Spend, Spend, Spend.”

From The TimesJanuary 9, 2009

Barack Obama: we must spend our way out of recession
Tom Baldwin in Washington and Philip Webster, Political Editor
Barack Obama declared yesterday that only unprecedented and urgent government spending could prevent the deepening recession stretching for years into the future.

Eleven days before taking office, the US President-elect said that he was entering his presidency “in the midst of a crisis unlike any we have seen in our lifetime”.

The “day of reckoning” had arrived, he said, and the risks of “doing too little or nothing at all” were even greater than those of allowing a federal deficit – already projected to reach the record figure of $1.2 trillion – to spiral on into the years to come.

Mr Obama used his first major policy speech since his election to call on Congress to act quickly on his request to pump hundreds of billions of dollars into the American economy. He said that figures to be released today would reveal that the United States lost more jobs last year than at any time since the Second World War.

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“At this particular moment, only government can provide the short-term boost necessary to lift us from a recession this deep and severe,” Mr Obama said. “Only government can break the vicious cycles that are crippling our economy.”

Mr Obama’s speech was his most outspoken public pitch so far for his massive spending plan. It was the frankest recognition of his belief in the role of government to save the economy.

The President-elect’s words were strongly welcomed by Gordon Brown and Alistair Darling as clear evidence of a growing world consensus that governments must support their economies with fiscal injections.

A Downing Street official said: “We agree with every word of his call for action. You need to take action and you need to take action now to avoid a much deeper and longer recession.”

Mr Obama’s pledge came as British interest rates were cut to 1.5 per cent, their lowest level in history. But only around half of borrowers will benefit and savers will be hit by another cut in returns on their investments.

Nissan yesterday announced the loss of 1,200 jobs at its Sunderland plant, the worst day for the car industry in its present crisis. The factory was once the most productive car plant in Europe.

Mr Brown travels to Berlin for talks with Angela Merkel, the Chancellor of Germany, next week as she appears ready to announce another €50 billion (£45 billion) stimulus for its economy. The Prime Minister, who chaired a Cabinet meeting in Liverpool yesterday and pledged fresh measures to bolster the British economy, is also due to meet Ben Bernanke, the head of the US Federal Reserve, next week.

The Prime Minister believes that Mr Obama’s action will boost public confidence in his own package of spending and tax cuts and improve the chances of the British initiatives bearing fruit.

Have your say

Obama needs to get more tax revenue not less to finance the regeneration and his health plans etc rather than going into long term debt, the money people could save on private health would help pay the taxes and health in the US could start improving to European standards. PS. so does Gordon

zz, letchworth,

Everyone is reaping the backlash of ‘seeking first the kingdom’! Most thought that kingdom was materialism, it is not, it is the words guiding us to a happy and safe world found in Math 6:33. Serving our Creator is far more family, neighbourhood and globally centred than any building up of wealth.

D Re, Woodingdean, Sussex

That is an example of how completely incompetent Obama is when it comes to understanding our economic problems. Government spending caused the problem. They are the problem. This is not a solution, it is a recipe for a depression.

Obamanomics will destroy what little value is left in the dollar.

Emery, Atlanta,GA, USA

I can’t believe Obama made that statement. Only the government can get us out of this mess? Heck, the government caused this mess with its meddling in the housing loan sector. Typical nonsense from a rich socialist who has no idea what he’s doing.

Alex, Albany, Oregon, USA

An economy based on constant spending – either with cash or credit – is what we’ve come to.

TV not 50 inches? Well get one! No cash, Well get credit….

John, London,

Not having been besotted by Mr Obama in the run up to his election.
I am completely turned around.
As an consultant to world governments in the late 80s early 90s, the only solution to regenerate a prosperous economy is the create jobs & incentivise spending. Savings can be encouraged later

Richard, Bucharest,

If you want remain slaves of the bankers and pay for the costs of your own slavery, let them continue to create money and control the nations credit.

DudeDad, Austin, TX, USA

And what will happen after all the spending?
– manufacturing will be even more dead than today,
– banks will suck more money than today,
– import will be even bigger,
– export will ‘grow’ to zero and
– roads will be smoother.
Solution is to invest into manufacturing in own countries and open jobs.

savo, london, uk

God help the grandchildren of today’s US voters.

Ben, Queensland, Australia

No one has ever spent their way out of recession. They usually last 12-24 months, unless the dorks in government get involved, then they last longer or turn into depressions. It’s called history.

Garry, Melcher, USA

This was soooooo predictable. If you have seen the film Zeitgeist, you would think this was one of the scenes from it.

S Soos, Leics,

great plan. this is what they want in australia and what i seen on this website for the UK. hyperinflation here we come.

tim, NSW, OZ

For the past 8 years George Bush has supposedly spent upwards of 700 billion dollars on wars that have devasted lives and countries. Obama wants to spend the same perhaps over the next 4 to 8 years rebuilding America, its economy and its people. Which is better?

Ian McCarthy, Dublin, Ireland

Is the financial advice to the President elect from the same sources as those responsible for this mess?

BJ, London, England

Hi didn’t see the recession coming as a Senator.
They’ve already tried $700 billion – with no effect. Has he fixed the root causes of the housing bubble?
He has no experience in turning anything around. Any money leading to more renewabale energy is good – the rest, likely to be wasted.

Hugo van Randwyck, London, UK

With this latest statement from Obama, it looks like David Cameron is out of step with all the industrial nations with his policies in curing the economic problem around the World.Poor Dave has not made a very good start with Barak!

Bill Rees, Falmouth, UK

No wonder the pound rallied today! With policies like this it is only a matter of a few months before bubbles start appearing and popping worldwide.

Edwin, Bucharest,

Like Obama, Brown is very adroit at pretending he knowns what’s required particularly when it comes to spending money he doesn’t have without regard to how it will be repaid in the future. Anything to get him through the next few months will do.
Prudence? Sorry, isn’t that what he believed in?

A.M. Williams, Stafford,

This “stimulus” is an indirect tax on prudent savers and indirect debt relief for the improvident. Would anyone care to guess in which group Obama’s worshipers chiefly reside?

RSP, St. Simons Island, GA, USA

This “stimulus” is an indirect tax on prudent savers and indirect debt relief for the improvident. Would anyone care to guess in which group Obama’s worshipers chiefly reside?

Robert, St. Simons Island, GA, USA

He prints it. They print it…….Gordon will follow suit

Geoff Smith, Phuket, Thailand

The money is created by the Federal Reserve Bank out of nothing. All national banks create money from nothing when they loan it to banks or the government.

As far as Obama’s policies, read the works of John Maynard Keynes.

Jon Maynard, Lansing MI, USA

where does he get this money?

Trevor, spokane, united states

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