DOUBLE DIP RECESSION….Dow Plummets 512 points….August 4, 2011 to make it a 1,000+ point drop in two weeks!
Obama prides himself on FDR’s policies within his NEW DEAL plan. I want to first start off with FDR’s Treasury Secretary and what he said about the failure of FDR’s Marxist New Deal:
FDR’s Treasury Secretary Henry Morgenthau, angry at the Keynesian spenders, confided to his diary May 1939: “We have tried spendingmoney. We are spending more than we have ever spent before and it does not work. And I have just one interest, and now if I am wrong somebody else can have my job. I want to see this country prosper. I want to see people get a job. I want to see people get enough to eat. We have never made good on our promises. I say after eight years of this administration, we have just as much unemployment as when we started.And enormous debt to boot.”
UCLA economists Harold L. Cole and Lee E. Ohanian are among those who believe the New Deal caused the Depression to persist longer than it would otherwise have, concluding in a study that the “New Deal labor and industrial policies did not lift the economy out of the Depression as President Roosevelt and his economic planners had hoped,” but that the “New Deal policies are an important contributing factor to the persistence of the Great Depression.”
1. Manufacturing Sector is at its lowest in almost 2 yrs
2. Consumer spending is down .2%, largest drop in 2 yrs
3. National Debt is now increased to $16 TRILLION and that only gets Obama to Jan 2013
4. The new Debt Increase now puts the US at 100% spending to GDP
5. Unemployment is still at 9.2% despite spending $1 TRILLION on jobs that were not “shovel ready”
6. Real unemployment sits at 17%
7. The worst run of selling on the DOW in 33 days- August 4, 2011 as it drops 400 points
8. Unemployment numbers for July come out tomorrow 8/5/2011
Obama and the Democrats YELLED that if this debt ceiling increase was not done, that we would be downgraded and stocks would suffer. Hmmmmmm, debt ceiling is increased and………stock market plummets 350 points and we are on a downgrade warning if SPENDING is NOT CUT massively soon!