President Obama’s Stimulus Plan will not Prevent Economic Depression

President Obama gave the first prime time press conference of his Presidency last evening, rehashing the speech he gave earlier in the day at Concord high school in Elkhart, Indiana. Using his unparalleled skills of oratory, President Obama offered up a comparison eerily reminiscent to the smoking-gun-mushroom-cloud analogy, warning of dire irrecoverable consequences if Congress did not pass the second bloated $834 Billion Dollar “stimulus” bill.

Desiring to compartmentalize and dismiss opposition to further government intervention into the economy, President Obama said:

“Doing little or nothing at all will result in even greater deficits, even greater job loss, even greater loss of income, and even greater loss of confidence.”

President Obama
East Room of the White House
February 9th, 2009

Additionally, the President attempted to cast off the growing debate over whether or not the massive interventionist policies begun by President Hoover and grossly expanded under President Roosevelt via the New Deal, ended the Great Depression. It is most assuredly doubtful that any loyalists to Keynesian economic theory could dare bring themselves to critically question a review of the actual historical record. However, a literal mountain of data points to a much darker reality. Government intervention did not end the depression; World War II at the steep cost of 416,800+ American lives unfortunately holds that distinction.

Only after President Roosevelt bypassed the Neutrality Act and authorized the “Destroyers for Bases Agreement” transferring fifty U.S. naval destroyers to Great Britain in September of 1940, did unemployment fall from 14.6% to 9.9% that following year¹. Up until the agreement, the unemployment rate refused to fall more than five points² from its all time high in 1933. In fact in the last half of President Roosevelt’s second term and prior to the agreement, after all the government programs, price fixing, gold confiscations, public works programs, etcetera, unemployment was again moving back up towards 20%.

It is possible that some might ask; how do we know that President Obama follows this Keynesian economic model? The answer to this question was most definitely confirmed during both the press conference last night and today in Fort Meyers, Florida when he quipped:

“Credit markets are the life blood of the economy.”

President Obama
East Room of the White House
February 9th, 2009

Credit, fellow readers, as I am sure you know, is merely a euphemism for “debt.” Thus, massive foreclosures³, unemployment, or any other pseudo-compassionate rhetoric that may dribble from his mouth is not his first priority. No this plutocratic pull-peddler’s most pressing desire is to jump-start and perpetuate the endless cycle of American consumerism following the same failed philosophy of buy now, pay later, save nil.

Perhaps rather than labeling credit as the “life blood” of our economy, a more accurate and succinct comparative would be heroine. While withdrawal is unquestionably painful, it is an addiction we must break. Keynesian philosophy at its rotted core, believes that credit and massive spending can forestall any and all economic downturns. It is possible, although not likely; this philosophy in the most minor of instances might be exercised successfully. A band-aid solution for an economy merely suffering a “skinned-knee”, otherwise wholly inappropriate for current circumstances.

However, the problems we now face are much more severe than a skinned knee. They are a fundamental and unequivocal failure wrought by this “band-aid” philosophy. Year after year, bubble after bubble, this corrupt government filled with its tax cheat bankers and narcissistic politicians have through their central Keynesian planning, left us at the precipice of financial ruin. Yet undaunted by facts, President Obama has the audacity to say:

“We can’t posture and bicker and resort to the same failed ideas that got us into this mess in the first place.”

President Obama
Concord High School
Elkhart, Indiana
February 9th, 2009

Mr. President, I could not agree more. Ironic is it not that he can say this with a straight face knowing that for the last ninety-five years, the largest and most insidious of all failed ideas, the private banker monopoly of the FEDERAL RESERVE has dictated American monetary policy?

Contrary to the empty suit rhetoric of our current President, those of us railing against this most recent expanse of centralized solutions, have much more in mind than simply “doing nothing”.

As history illustrates quite nicely, whether you look at the Panic of 1819, the Great Depression of the 1930’s, the stagflation of the 1970’s, or the current economic collapse, all were exacerbated by the inherent flaws of an expansionist monetary policy under the cold calculating hand of a central bank. Let us proclaim loudly and spread this most essential of fact from coast-to-coast. In addition, along with abolishing the 3rd central bank, vis-à-vis the FEDERAL RESERVE, we must repudiate its odious debt promulgated by the illicit practice of fractional reserve banking.

Fellow readers, now that the stimulus bill has cleared the faux opposition by Republicans, have we avoided a deepening of the crisis? Does this stimulus bill nullify the coming commercial real estate and credit card collapses? In your opinion what will be the state of our nation come July?

Source(s): ¹Naval Historical Center “Destroyers for Bases Agreement, 2 September 1940″ • ²Principles of Economics, Student Edition, Chapter 17 • ³Bloomberg “U.S. Taxpayers Risk $9.7 Trillion on Bailout Programs (Update1)