$5 Trillion in Additional Debt

Fritz Pfister
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Posted: Mar 03, 2012 12:01 AM

The solution to the American debt crisis is economic growth. After three years of progressive economic rule the economy is at risk of slipping into another recession exacerbating the debt. Pro-tax, pro-spend, anti-growth, anti-fossil fuel policies have led us here.

Yet the Obama administration says we’ve turned the corner and deserves four more years to finish the job. What evidence of a turnaround? Jobs? Nope, unemployment has remained above 8% for thirty six straight months. Housing? Nope, existing home sales 60% of healthy, new home sales 40%.

The economy cannot fully recover until housing recovers. Housing won’t recover until there are jobs created adding buyers to the market.

The very ones who create problems are now telling the American people they are the ones who can fix problems. They are asking the American people to send back the arsonists to put out the fire.

Granted the economic crisis was not solely Obama’s making. Those responsible are progressives of both parties who passed laws, and regulations that suppresses, not encourages economic growth.

Is it possible to achieve recovery by following the same policies, or is stagnation the highest achievable outcome when dictates from central planners crush entrepreneurs, and business owner’s plans? How can anyone plan a budget with perpetual dictates coming from an Imperial presidency, and omnipotent bureaucracy?

Obamacare, Dodd Frank, EPA regulations must be repealed for America to be able to realize full growth potential. These not only suppress economic growth, they shift power from the individual to the central planner. Patently un-American in nature, destructive of our economy, and way of life.

Just when the economy begins to show signs of life progressive ideology slams the door shut. After the most wasteful spending in our nation’s history, adding $5 trillion to our debt in just four years, comes radical environmental ideology driving up gas and food prices; by design to advance the fairy tale green economy.

Six months of minimal job increases will come to an end or falter at best. Although barely enough job creation to meet the demands of new entrants into the workforce, team Obama declares this success. No, it’s an embarrassment and a failure. The longest time between the end of recession and recovery ever.

The housing market is off to its best start in years due to record low interest rates, mild weather, and pent up demand. People must be sick and tired of waiting for the promised recovery to arrive, and are taking action. A smart move to lock in a low cost for housing.

With Obama energy policy favoring environmental radicals over the good of the nation, rising gas and food prices will put the brakes on economic growth, just as in 2008 and again in 2011. Why would people react differently in 2012? Consumer spending and confidence will decline beginning another downward spiral.

This means more job losses, more government expense, more money borrowed. The debt ceiling is $16.4 trillion, projected to last only past the election, will need increased. This time approaching $20 trillion, likely leading to a credit downgrade and potential bond crisis.

If so, inflation and interest rates would rise rapidly. Times would get tough for millions more Americans. Obama won’t change course, progressive Republicans won’t change course. Who are the people who will change course? The conservative or the liberal?

The window of opportunity to buy a home is open. When the low interest rate window closes it will be slammed shut for years. When will that window be slam closed? Nobody knows, but it will happen when we have a bond crisis. It’s inevitable with current economic policy.

Buying a home now means you can at least know your cost of housing if food, gas, utilities, rent, and taxes skyrocket. Don’t say you weren’t warned.

America’s last hope is economic growth achievable only with a conservative electoral victory on November 6 that restores the promise of the individual free to pursue their own happiness in a free market economy, free from the Obama Imperial dictates shackling the private sector.

The opinions expressed here are solely those of Fritz Pfister or identified sources, and not necessarily those of RE/MAX Professionals of Springfield or RE/MAX International.