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At a loss about Obama’s stance on profits
President Obama proclaims that “now is not that time” for financial firms “to make profits.” This should bewilder anybody who wants a vibrant U.S. economy, because profits are a fundamental measure of a corporation’s health.
Obama’s openly-stated desire for financial companies to make no profits means that he is either hoping for an economic depression or that he is an economic illiterate.
Mark Kalinowski
New York, N.Y.
FDR-like plan would borrow trouble for U.S.
The Financial Times of London is a paper you probably do not read, but should. However, more than reading is needed: Understanding, action and a well-crafted “Plan B.”
The outrageous plan of borrowing our way to prosperity is like your crazy cousins getting everything they want or need now on credit cards totally disregarding payments. If you compute the future taxes to pay for the stimulus package, you will exit feet first.
Keynsians say, “Who forecloses if America fails?” Just imagine, ships no longer bringing oil, food, fiber and finished goods to our shores to swap for dollars.” How long would it be before we had little kids who had never seen bananas or shoes?
At the end of this month, the U.S. Treasury will announce T-bonds at the rate of 2.95 percent, which sounds reasonable. But that is 145 percent greater than one year ago. If that curve prevails, the dollar will not be worth a dime by 2010 and President Obama will be gone. Such are the consequences of stupid borrowings.
We now harvest Democrats wailing, “The worst economy in 50 years” during 26 quarters of growth. For the 32 quarters of the Bush presidency, there were only six that did not show growth: Two declined less than 1 percent and four were flat, no change. All the rest showed annualized growth on the order of 3 percent.
The FDR-like borrowing planned by the Obama administration will have the same effect now as it did from 1932 to 1938: disaster with unemployment up to 38 percent, given proportionality, empty shelves and Soviet-style lines in front of food markets. (The “super” prefix will have been dropped by summer.)
We do not fault Obama. He told all of us in several speeches we were not going to be able to drive SUVs or eat as much as we want. But you listened to blubbering major media pundits with thrills running up their legs when Obama, his Harvard lisp perfected, warned you.
If Michelle Obama sports a Carolyn Kennedy eastern-inbred overbite, we’ll have Camelot giga-depression style with $1,000 per pound steak on their plates.
Adrian Vance
Lakeport, Calif.