How Obama is Deliberately Crippling U.S. Economy
Photo Credit: WND
Conservatives believe this is Obama’s playbook, while liberals dismiss it as rightwing paranoia. But consider Obama’s economic policies with this paradigm in mind.
For any economy to function properly depends on the availability of capital and credit, raw materials, manufacturing capacity and production, and labor. To intentionally cripple an economy, one or more of these elements would have to be controlled or withheld.
American leaders have been overloading the economy with debt to pay for goodies promised to the populace since long before Obama, but the first big push for outright misallocation of capital (something strongly promoted by progressives) started with the Community Reinvestment Act of 1977, signed by Jimmy Carter. After all, the two principal economic engines driving the U.S. economy were automobiles and housing. The Act forced banks to misdirect their investment capital to areas and individuals that previously did not merit credit because of the high risks involved.
Thus, in place of 30-year mortgage loans that in the 1960s had fairly strict standards and required 20 percent down, we ended up with “liar loans” and 0 percent down, all with the support of Fannie Mae and the blessings of progressive officialdom. At the peak of the housing bubble in 2007, there were roughly 450 trillion dollars’ worth of derivatives and mortgage junk bonds floating in the world markets, while the combined total of GDP of all world economies was estimated at only 57 trillion dollars! Once the housing bubble burst, it almost took the developed capitalist countries down for the duration, and we are still suffering from the after-effects of this blowup.
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