Crippling debt and deficits have lead the global economy to the precipice. Finances of world governments since the financial crisis have dramatically deteriorated and confidence in paper money has reached a new low. Equity markets are crashing while gold (the barometer of trust in paper money) soars.
As we stare into the abyss, President Obama stands ready to address the nation. His speech is likely to extinguish the last vestiges of confidence in a US economic recovery.
What will he say?
Based on prior speeches, Obama will reach low and use the standard class warfare blame game strategy. Rather than accepting the warning from S&P that the US is spending itself into bankruptcy, he will shoot the messenger.
Highlights of the speech will feature the following:
- Blame Standard & Poors
- Blame Congress
- Blame China
- Blame Republicans
- Blame (insert name of anyone except Obama)
The trillions of new debt taken on since the 2008 financial crisis have done nothing except push the US closer to insolvency. The trillions of dollars spent on bailouts, stimulus and support for deadbeat homeowners has simply put another burden on an already weak economy. Will Obama talk reality and propose constructive programs to put our free enterprise economy back on track? Or will he simply propose more of the same – tax “millionaires and billionaires”, spend more, borrow more and hope that things get better?
Based on Obama’s disdain for the free enterprise system and businessmen in general, his remarks could easily result in a total vaporization of confidence in the government’s ability to contain the debt crisis. Obama’s speech could easily turn the contained depression which started in 2008 into an all out economic collapse.
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