U.S. economy is crumbling

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In the 1980s under the guidance of President Ronald W. Reagan, we forced the Soviet Union into economic collapse. In the 2010s, under the guidance of President Barack H. Obama, we will do the same to the United States of America.

It is reported that our national debt will reach $16.4 trillion this coming fall. This once-great republic is broke. All that awaits is our republic’s postmortem, but who will pay for it? Of course, the American public!

John C. Huffman

Augusta

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wtinney
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wtinney 02/06/12 - 01:29 am
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The reader is correct but

The reader is correct but missing a lot of key data that would better make his case:

Doug Woodward, an economist at the USC’s Darla Moore School of Business, was in the news last month with a merry prognosis of our economy. Yes, there he was, giving out roses to all that would listen – and, obviously, many do listen because the media in South Carolina tends to lap up his every word (much like the media of the nation used to lap up every word of Alan Greenspan, former Chairman of the Fed). One has to wonder why the media hangs on the words of people, like Woodward, that have not only been wrong but their expertise make their blunders outright embarrassing.

I challenged Dr. Woodward back in 2009 when he forwarded his first rose (that smelled nothing like one) as he claimed the recession over, 2.8 GNP for the fourth quarter and 3.0 GNP for the next year. Not only were these numbers not achieved by our economy but, if they had been, it still would virtually have remained a recession because such poor GNPs do not demonstrate growth when at least that much in new additions to active participants in our economy would have taken place demographically.

Dr. Woodward came out last year, seemingly backsliding on those earlier, rosy, predictions by saying he and others of economic expertise did not truly understand the depths of the economic problem and that we had seen nothing like it since the Great Depression. Many then said he was now back to Earth giving real economic-based assessments.

Not so fast! A month ago those claiming unemployment benefits decreased to their lowest number since 2009, the invisible hand of the consumers picked up in Christmas shopping, housing foreclosures leveled off, the Federal Reserve was able to strike a deal with major banks to basically provide TARP-like loans to Italy and Greece; and what happens? Here comes Dr. Doug with his rosy projections again.

First, the amount of those claiming unemployment decreased because the extension for unemployment benefits had run out (that extension dates back to early 2010) but still this report was recently revised upwards to show a greater increase in jobless claims than we had actually seen in 6 weeks. Second, the invisible hand of consumers doing Christmas shopping is seasonal and had already retracted by late December (not to mention that the effects of such an invisible hand did not come till weeks later than usual). Third, housing foreclosures have leveled off because banks generally 1) back down as the Christmas season nears – not to look like Ebenezer Scrooge; and 2) because most that were toxic mortgages have run their course within the courts and financial systems. Lastly, the Federal Reserve’s move to basically bail-out the weak economies of the Euro-zone demonstrates they did not learn a thing from the failure of TARP here in this country (dollar values drop, spending power is lost, inflationary problems resulted).

Knowing all this, again, the average person on street has a better nose for economics than those that are trained economists with years of researching within the field. The only thing these economists have now are rosy pictures to draw to see if they can create some mentality of better economic prosperity for the country. People may be in a condition of being miserable – but if they do not believe they’re miserable, then obviously they’re not in such a condition. Is that all they base their precious reputations on? Does any economist ever rely on tried and true economic principles anymore? Apparently not.

Please remember that every single jobs report by this administration over the past 6 months have been revised "upwards" once every ounce of 8 seconds of fame has been drained from the origional report. With little fanfair does the revised version get much notice. Another thing to consider is that everytime bad news comes out - some survey is done of economists stating a perceived upswing (prediction) but when good news comes, they barely mention the huge problems and underlying issues of the reports/statistics. Seems like an awful lot of manipulation going on here.

Haki
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Haki 02/06/12 - 02:12 am
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Obama 2012.

Obama 2012.

carcraft
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carcraft 02/06/12 - 05:27 am
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Wtinney- I listened to Neil

Wtinney- I listened to Neil Boortz the other day. The other problem with the jobless numbers is that, according to Boortz, is that the base from which jobless claims are being made has decreased. The base has gone from 66% of Americans eligible to enter the work force to 62%. So yes the jobless claims have droped but the chronic no longer seeking employment unemployed has risen by 4%. Obama spent $800 billion guaranteeing unemployment would not reach 8%. Putting a trillion dollars a year in unbacked printed money is going to lead to inflation and we have seen in gas prices, grocery prices and many other items like clothes etc. Don't look now but Obama is in the toaster!

southernguy08
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southernguy08 02/06/12 - 06:21 am
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Good one, HAKI. Thanks, I
Unpublished

Good one, HAKI. Thanks, I needed a good laugh.

willie7
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willie7 02/06/12 - 08:57 am
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Obama all the way in 2012.
Unpublished

Obama all the way in 2012.

allhans
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allhans 02/06/12 - 09:24 am
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Obama still has a chance as

Obama still has a chance as long as the uninformed continue to believe he is there to help. HA!

JRC2024
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JRC2024 02/06/12 - 09:34 am
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Obama will always get the

Obama will always get the vote of the people with the hand stuck out with the palm up to receive.

bjphysics
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bjphysics 02/06/12 - 09:40 am
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“U.S. economy is crumbling”

“U.S. economy is crumbling” and Alien Lizard creatures will land in spaceships on the mall intent on turning Republicans into Soylent Green and steal the Earths water.

Whatever

dichotomy
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dichotomy 02/06/12 - 10:00 am
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Send Obama AWAY in

Send Obama AWAY in 2012.

Broke? We are not broke. Broke infers we merely have no money. We are worse than broke. We each owe the government (which in turn owes the Chinese) one year's salary, give or take. We each currently owe $50,000, including each of our children and grandchildren. We are much more than just broke. To put it in macro-economic terms that the average American can understand.....we're screwed. Obama is not responsible for all of that debt, but he and the Democrats are responsible for about 50% of that. No small feat for only being in office for 3 years. We cannot tolerate another Obama term. We cannot tolerate another term of Harry Reid and the Democrats controlling the Senate.

I am not naive enough to think that merely electing the current crop of Republicans will be the salvation of this country. But it is a start. We will still have to beat them over the head with the CUT SPENDING bat. If they don't do it we will get some different ones next time.......if there is a next time. Want to raise taxes a little bit....fine.......AFTER we cut spending and eliminate government agencies. When we cut all of the fluff and we are down to the bare essentials then come see me and we will talk about increasing taxes.

shrimp for breakfast
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shrimp for breakfast 02/06/12 - 11:11 am
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I can't lay all this at the

I can't lay all this at the President's feet. The crumbling of America didn't start on his watch. It was greed that laid the foundaation for the shape of the economy.
While I'm no fan of Obama let's be realistic. President Bush was the commander in chief when this all started. I blame the banks. They don't care about the common man. Their botton line is their profit margin. In doing so they wrecked the economy, put people on the streets and ended up getting bailed out by the American people. The same people that they hold in contempt.

Conservative Man
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Conservative Man 02/06/12 - 11:16 am
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I agree with shrimp that this

I agree with shrimp that this started before "Our Dear Leader"' came to office. That's why I identify myself as a conservative not a Republican.But something must be done and soon.As dich...said we are worse than broke. Every man, woman and child, living and yet to be born in this country for the next couple of generations owes money to China and our other debtors unless something is done and done quickly...We have to revamp our tax system, we need to get some of the "leeches" off the public teat, and we have to get this economy moving so more people will be working..
How? Get rid of the "Socialist in Chief" It won't miraculously save us overnight, but it will help stop the bleeding.
Whoever is elected should follow the Hippocratic oath and first do no harm.That sure doesn't sound like Obama does it?

lovingthesouth72
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lovingthesouth72 02/06/12 - 11:48 am
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Big government + Obamacare:

Big government + Obamacare: BANKRUPT ECONOMY. Get big government out of the way, get rid of unnecessary regulations and taxations, let small businesses compete, let industries prosper and flourish, and then the economy will pick back up, people will once again be able to get a job, and will then have money in their pockets to provide for themselves and their families. And this trash talk about the government providing for all your needs will be a thing of the past; which in reality since the economy is bankrupt anyways government won't have anything to provide for you either way. If Americans really want to fight poverty, you need to work, not stand in line for the next handout. But people say, "well, there are no jobs". The real way to solve poverty is to strengthen the economy, not make people depend on the government for everything. That is why we need to elect a candidate that will fight to do just that. Obama's polices are fiscally irresponsible, borderline communist, and are destroying this country. This man is not worthy of the office of the Presidency anymore. He had four years, and he has failed. Obama for 2012 ONLY if you want to see this great country go bankrupt. America deserves better.

Mojoe
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Mojoe 02/06/12 - 12:20 pm
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In one post here someone says

In one post here someone says that they cannot lay all of this at Obama's feet. I agree with that however I do blame him for not doing what he could do to solve the problem. He vetoed the XL Pipeline from Canada. There were at least 40,000 jobs attached to that project and more that would be long term jobs once it was complete. Instead Canada has said that if we don't want the oil then they will sell it to China, and then of course China will resell it back to us at an even higher price. Obama does not have a clue as to how to turn this economy around. In fact most of what he has done in the last 4 years has simply made it worse. Obama 2012 heck yes, if what you mean is that he leaves office in 2012. We need real leadership and help and this is not the time for someone who needs training wheels.

KSL
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KSL 02/06/12 - 02:58 pm
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Mojoe, I am firmly convinced

Mojoe, I am firmly convinced that what obama has done has been on purpose.

Jane18
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Jane18 02/06/12 - 03:52 pm
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Do NOT ever doubt that KSL!

Do NOT ever doubt that KSL!

faithson
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faithson 02/06/12 - 04:00 pm
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Boortz, now there is blowhard

Boortz, now there is blowhard you can trust. To much listening, not enough THINKING on the right.

faithson
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faithson 02/06/12 - 04:07 pm
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and Mr. Huffman probably

and Mr. Huffman probably believes the earth is 6000 years old, and that a women's place is in the home, and that the Soviet Union's collapse was caused by 'american exceptionalism', NOT.

KSL
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KSL 02/06/12 - 04:07 pm
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Actually, you have that

Actually, you have that backwards, faith.

Swampman
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Swampman 02/06/12 - 04:27 pm
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Uh, yeah, of course

Uh, yeah, of course everything Obama has done has been on purpose! Everything the Republican House and the Tea Party and George W. Bush have done was done on purpose too - and that means advocating policies that helped cause the problems and obstructing every on-purpose effort Obama has made to solve the problems too.

There's plenty of bad faith to go around. A Democratic president, Bill Clinton, began to get this nation's financial house in order and a Republican president, George W. Bush, absolutely threw that away just as the chickens from conservative-driven financial deregulation came home to roost. As the incoming president prepared to take office, he met with the outgoing president and economic gurus across the ideological spectrum as the nation teetered on the very brink of a Great Depression-level crash and, despite the fact that nobody really wanted it, they agreed that only more defiicit-funded stimulus would prevent a plunge into the abyss.

And now Republicans are telling America we need to double-down on their way to doing things.

But, BTW - the American economy is not crumbling. Hitting some bumps in the road, yes. Experiencing the macroeconomic corrections and reconfigurations of a global economy we share with other emerging powers, definitely - just as my economics professors were saying in the late 70's and early 80's was almost certainly going to happen someday. Ours is still the biggest economy in the world. It is past time to stop throwing the baby out with the bathwater with all this gloom and doom nonsense.

southernguy08
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southernguy08 02/06/12 - 04:44 pm
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SWAMP, the American economy
Unpublished

SWAMP, the American economy isn't crumbling? Seen the economic stats lately? Our national debt will be hitting SIXTEEN TRILLION very soon! What book on economics says in dire times to spend money you don't have? Never saw that. Must be the liberal book of money knowledge. Liberals...they love to spend OTHER PEOPLE'S MONEY! The only problem is, sooner or later, it runs out!!

KSL
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KSL 02/06/12 - 05:33 pm
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Look, there were plenty who

Look, there were plenty who predicted that what obama was going to do was going
to make the recovery take longer and unemployment worse. They were proved right.

KSL
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KSL 02/06/12 - 05:55 pm
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Do you know Jeff immelt is?

Do you know Jeff immelt is? He's obama's jobs czar and Ceo of ge, who happens to be closing a plant in Wisconsin and move jobs to???? China. Way to go obama!

Bizkit
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Bizkit 02/06/12 - 09:02 pm
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Dang bjphysics you've foiled

Dang bjphysics you've foiled our master plot!! But we were only going to turn the Tea Party into Soylent Green and we are going after the gold and your women. Lizard man Out!

Bizkit
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Bizkit 02/06/12 - 09:06 pm
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Remember even with our

Remember even with our economy in shambles we are still number one!!! We need to tell the Reserve to just forgive all our debt and then negotiate with China-either treat us better or will starve your economy by buying only american. Take that sluurrrrrp. Lizard sluurrrp.

robaroo
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robaroo 02/06/12 - 09:25 pm
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Have you seen the commercials

Have you seen the commercials where you can sell your unwanted gold at jewelry stores or traveling buses? There are a whole lot of people who expect the US and other countries go bankrupt.

The electronic bits of your bank accounts will be worth even less than the paper in your wallet. No matter what happens, you can still trade gold for for goods and services.

It may already be too late to do anything about it. Let's thank our Republican and Democratic politicians for playing Santa Claus while the country files under Chapter 13.

RunningMan
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RunningMan 02/06/12 - 09:35 pm
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I see the narrow minds of the

I see the narrow minds of the CSRA are at it again. I am so glad Obama has been above all of this nonsense for most of his life and now as President. He has proven he is a better person and man than most at a time when others can only act badly. The economy will only get better, and when it does he will probably NOT be blamed for that either. Continue on CSRA, I am sure you can do not better.

KSL
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KSL 02/06/12 - 09:48 pm
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I am partclarly interested in

I am partclarly interested in hearing running man's comment on immelt. Seems I'm not going to get anything but generalizations about southerners. Yep, when you can't provide a cogent response, resort to attack. Right out of the Alinsky playbooks.

bjphysics
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bjphysics 02/07/12 - 06:57 am
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