-- Posted Monday, 2 March 2009 | Digg This Article
| Source: GoldSeek.com
Rick’s Picks
Monday, March 2, 2009
“Phenomenally accurate forecasts”
Those who voted for Hope and Change should have enough of both by now to last a lifetime. Hope has come via the kind of desperate prayers we might employ to deflect an Earth-bound asteroid. Indeed, so dire do our economic prospects appear at the moment that Hope alone may be the only appropriate response. As for Change, it has arrived in the form of a power-grab by Big Government that would have taken FDR’s breath away. Dare we say that if President Obama’s initiatives had been any bolder, right-wing editorialists would be telling us a coup had occurred? However we choose to describe it, we doubt the Republicans will be able to stop the plan from being enacted into law. Nor do we envy those few anointed GOP “moderates” whose votes could conceivably tip the political axis leftward for a hundred years.
We genuinely wonder whether fear of the stimulus bill cuts across party lines. We don’t doubt there are at least a few voters on the left who think fiscal spending is the best way to go, and the more of it the better. But for most of us, we suspect that reality trumps any hope that More Government will somehow put the economy back on track. Big new taxes and even bigger federal outlays are not going to revitalize business or raise the standard of living. More likely is that the tactic will merely keep unemployment from pushing above 1930s levels. In any event, we cannot accept that the federal government will find ways to spend trillions of dollars of precious capital more wisely than the small businesses that form the backbone of the U.S. economy and which have been heavily disfavored by this legislation.
Tax the Entrepreneurs
And that is why President Obama’s plan threatens to put the economy in a wallow that could last for decades. Tax the “rich” who make more than $200,000 per year, and you tax the entrepreneurs who create most of the country’s jobs. If there are any significant incentives in this bill for small businesses, we have yet to hear about them. In fact, by attempting to grow the federal health-care juggernaut at the expense of small businesses, the fiscal package will only hobble them, and badly.
We have no problem with taxing hedge fund operators and leverageurs till they bleed from the ears, and we’ll even go along with a cap on bankers’ salaries (although we’d have preferred they be publicly flogged). But how could a plan that purports to stimulate the economy have overlooked the entrepreneurs who are the lifeblood of American prosperity? A logical answer is that the stimulus package is deliberately anti-capital, a vengeful and self-destructive act against every GOP president since Reagan. To the extent this is so, it could be a long, long time before the economy shows any signs of returning to health.
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Rick's Picks publishes a daily trading newsletter for gold, stock, commodity, and mini-index traders 240 times per year. Information and commentary contained herein comes from sources believed to be reliable, but this cannot be guaranteed. Past performance should not be construed as an indicator of future results, so let the buyer beware. Rick's Picks does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. From time to time, its editor may hold positions in issues referred to in this service, and he may alter or augment them at any time. Investments recommended herein should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Rick's Picks reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscribers' initials will be used unless express written permission has been granted to the contrary. All Contents © 2009, Rick Ackerman. All Rights Reserved. www.rickackerman.com
-- Posted Monday, 2 March 2009 | Digg This Article | Source: GoldSeek.com
