Home
In this issue
April 9, 2014

Jonathan Tobin: Why Did Kerry Lie About Israeli Blame?

Samuel G. Freedman: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Jessica Ivins: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Kim Giles: Asking for help is not weakness

Kathy Kristof and Barbara Hoch Marcus: 7 Great Growth Israeli Stocks

Matthew Mientka: How Beans, Peas, And Chickpeas Cleanse Bad Cholesterol and Lowers Risk of Heart Disease

Sabrina Bachai: 5 At-Home Treatments For Headaches

The Kosher Gourmet by Daniel Neman Have yourself a matzo ball: The secrets bubby never told you and recipes she could have never imagined

April 8, 2014

Lori Nawyn: At Your Wit's End and Back: Finding Peace

Susan B. Garland and Rachel L. Sheedy: Strategies Married Couples Can Use to Boost Benefits

David Muhlbaum: Smart Tax Deductions Non-Itemizers Can Claim

Jill Weisenberger, M.S., R.D.N., C.D.E : Before You Lose Your Mental Edge

Dana Dovey: Coffee Drinkers Rejoice! Your Cup Of Joe Can Prevent Death From Liver Disease

Chris Weller: Electric 'Thinking Cap' Puts Your Brain Power Into High Gear

The Kosher Gourmet by Marlene Parrish A gift of hazelnuts keeps giving --- for a variety of nutty recipes: Entree, side, soup, dessert

April 4, 2014

Rabbi David Gutterman: The Word for Nothing Means Everything

Charles Krauthammer: Kerry's folly, Chapter 3

Amy Peterson: A life of love: How to build lasting relationships with your children

John Ericson: Older Women: Save Your Heart, Prevent Stroke Don't Drink Diet

John Ericson: Why 50 million Americans will still have spring allergies after taking meds

Cameron Huddleston: Best and Worst Buys of April 2014

Stacy Rapacon: Great Mutual Funds for Young Investors

Sarah Boesveld: Teacher keeps promise to mail thousands of former students letters written by their past selves

The Kosher Gourmet by Sharon Thompson Anyone can make a salad, you say. But can they make a great salad? (SECRETS, TESTED TECHNIQUES + 4 RECIPES, INCLUDING DRESSINGS)

April 2, 2014

Paul Greenberg: Death and joy in the spring

Dan Barry: Should South Carolina Jews be forced to maintain this chimney built by Germans serving the Nazis?

Mayra Bitsko: Save me! An alien took over my child's personality

Frank Clayton: Get happy: 20 scientifically proven happiness activities

Susan Scutti: It's Genetic! Obesity and the 'Carb Breakdown' Gene

Lecia Bushak: Why Hand Sanitizer May Actually Harm Your Health

Stacy Rapacon: Great Funds You Can Own for $500 or Less

Cameron Huddleston: 7 Ways to Save on Home Decor

The Kosher Gourmet by Steve Petusevsky Exploring ingredients as edible-stuffed containers (TWO RECIPES + TIPS & TECHINQUES)

Jewish World Review March 2, 2011 / 26 Adar I, 5771

Obama's Legacy: Stagflation

By Dick Morris And Eileen McGann




http://www.JewishWorldReview.com | Obama's failure to support America's allies in the Middle East and his dithering endorsement of chaos in the region will send oil and gasoline prices skyrocketing, triggering a massive bout of stagflation. This vicious cycle of rising prices, decreased consumption, and ever higher prices (as vendors seek to recover higher fixed costs) will cripple the American economy for years to come.

This is Obama's true legacy.

Consider what he has done to push up oil and gas prices:


  • Endorsed spreading chaos in the Middle East.

  • First banned and now slowed down offshore oil drilling.

  • Considered curbs on fracking (horizontal drilling to unlock shale deposits in the Northeast — a potent new source of oil).

  • Imposed a carbon tax on domestically produced coal and oil through EPA mandate.

  • Proposed an end to tax advantages designed to encourage oil drilling and exploration.


Now Obama is reaping the fruits of these misguided policies — $4-per-gallon gas, soon to go up to $5 or $6!

And the fuel-price increases will take their place alongside food-price rises. Food prices for corn, soybeans, wheat and other basic crops have almost doubled in the past year.

(The Consumer Price Index deliberately understates fuel and food inflation in its formula to avoid triggering cost-of-living adjustment increases in private pay and government programs.)

Finally, he has encouraged the Federal Reserve Board to almost triple the money supply, over $1 trillion of it based on the purchase of worthless mortgage-backed securities.

The combination of reduced confidence in the dollar (at home and abroad) and the rises in fuel and food prices will force up prices as costs push them higher. Already, the International Monetary Fund (IMF) has pressed for the replacement of the dollar as an international currency by "drawing rights" printed by the IMF. Such a policy, of course, would be a disaster since it would attempt to base global currency on an institution without the power to tax. But it is a measure of how far faith in the dollar has fallen that it is being seriously urged. U.S. inflation can only fan that movement.

Since the Fed has got to stop printing money soon — lest it become wallpaper — interest rates, too, will rise, also contributing to the cost push price inflation.

But the economy cannot afford to pay these higher prices. Consumer demand, which accounts for three-quarters of GDP, is already stagnant. With inflation, it will drop. Then, unable to recoup their costs, vendors will be forced to raise prices even higher. An inflationary psychology will take hold of the economy. Higher interest rates will be needed to break its hold, forcing us into yet another recession, this one fully courtesy of President Obama.

For months now, political pundits have wondered if the economy would improve, helping Obama's reelection chances. It now appears that the exact opposite is likely and that his reelection chances will be washed away by a massive flood of inflation as a consequence of his misguided policies.

Obama will doubtless blame oil companies and speculators for the fuel price increases, but his role in encouraging instability in the oil-producing regions of the Middle East is apparent enough. He put the demand of the Egyptian people for political change ahead of America's need for financial stability. He was so enraptured by being "on the right side of history" that he forgot about his role as the head of our economy and its vulnerability to the very instability his policies fanned.

=<<

Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.



BUY THE BOOK

Click HERE to purchase it at a 46% discount. (Sales help fund JWR.).


Comment by clicking here.



Dick Morris Archives


© 2009, Dick Morris

Columnists

Toons

Lifestyles