“A Better Bargain”

This past week US President Obama spoke twice (On Wednesday and Thursday) to discuss what he calls a Better Bargain for Middle Class Americans.  On both occasions his talk propped up the markets and they closed higher.  This is in stark contrast to what we had to deal with when former President Bush spoke.  Whenever he spoke during trading hours the rule of thumb was “get out of the market, Bush is speaking and it will drop”.  The irony is it usually did.

I have to give President Obama credit where it’s due.  No modern politician gives a better speech.  After you hear him speaking, as an American you’ll want to take immediate action.  However I have to take issue with what he said.  He mentioned job growth in the United States and stated that the US created 7.8 million jobs in the past 40 months.  What he forgot to mention was that the jobs created are menial at best, do not carry either a living wage or benefits.  What he also forgot to mention is the untold millions who are still looking for work after an extended period of unemployment.   He also didn’t mention or spoke about the numbers of people who’ve had their unemployment benefits reduced due to sequestration.

For those who aren’t aware the United States started sequestration in March of this year.  This was mandated by a bill that was passed into law in 2011 to offset the budget battle rampant at that time.  Sequestration (or sequester as it’s called) has effectively cut every budget in every department of the US government and has effected Medicare as well, yes Medicare.   Some economists have claimed that eliminating sequestration could create one million new jobs in the United States.

Obama also spoke about the vast reserves of Natural Gas that the US possesses and how the United States could export this energy.  What he fails to mention is that “fracking” is taking a devastating toll on ordinary Americans and turning the United States into “Gasland”.  There are communities in the United States today where the “drinking” water is undrinkable, where if you want to start a fire all you need do is light your garden hose and you’ll get fire from all the flammable liquids being pumped into the ground.  Want proof?  Watch HBO’s Gasland and Gasland 2, you’ll see it for yourself.

Next Obama talked about the GOP and how the politician’s in DC have it all wrong and we need a forward thinking mentality for energy, etc.  On all these points I agree, I just don’t happen to think that Obama’s the guy to pull it off.  Time and time again he asks people to help him.  Contact your Congressman/woman, badger your Senator so they can give ME a bill I will sign.  It’s like asking everyone else to fight your battles for you.  This President may have studied Law at Harvard but he most certainly didn’t study leadership.  Leadership demands that you step up to the plate and accept responsibility for your actions or inaction.  The sequestration that I mention earlier is a direct result of a bill that this President signed in 2011.  Why?  Because he wanted to compromise with the GOP.  The GOP does not like compromise, they equate compromise with appeasement and they would probably respect him more if he stood by his own principles.

His health care law aka ObamaCare is virtually guaranteed to raise premiums across the board.  It would have worked if all Americans had access to healthcare and therefore there would be true competition in the health insurance market.  How do I know this?  Recently I had to switch to private insurance after having been on a group policy.  If I want the same coverage I had it will cost $600.00 a month more.  When I asked the insurance companies how that could be with ObamaCare they responded “what do you think will happen if we now have to cover 40-45 million more people when prior to this law we didn’t have to”?  Premiums will go up.  Who pays?  The insured will pay.  What about the fabled voucher program?  If you make too much money, there is no voucher.

I mention all this because it will have an effect on the US economy.  Consumer Spending is down as related by Retail Sales and Core Retail Sales.  Economists are cutting the GDP forecast down to 1 percent from 2 plus percent and sooner or later this will all come home to roost.  I suspect that the President is making these speeches as a preemptive strike because he knows that a looming Budget Battle will erupt very soon in Congress and it will probably start in August.  The new budget for fiscal year 2014 starts October 1st.

As an American I think I speak for many people when I say our attitude in this situation is as follows: “we elected you President, not once but twice.  We gave you a second chance to prove what you can do.  Stop asking us to fight your battles for you because frankly we’re tired of it.  It’s up to you to step up to the plate and show us what you can do.  You say you want to elevate people into the Middle Class but you do nothing to defend the rights of the Middle Class.  You saddle us with sequestration that is guaranteed to hurt, not help.”

So much for “A Better Bargain”…

About The Author

tothetick

Professional team of writers/analysts analyzing the financial markets.

Comment on Facebook

1 Comment

  • James

    Reply Reply July 28, 2013

    Interesting views, thanks for sharing

Leave A Response

* Denotes Required Field