November 4, 2010

The Day After

Some insightful (and common sense) comments.

1) The real loser

The real loser is Keynesianism: the idea that when businesses and individuals stop spending, government must. That idea will not rebound; it's over for this period in economic history. First Britain, and now the United States, are responding to the worst economic contraction in 75 years by contracting government, despite the fact that the world's best economists are screaming that it's exactly the wrong thing to do. (here)

2) Obama Post Election Press Conference

a) So far Obama's major nod to getting whooped last night is to speak slower and with a tinge of sorrow in his voice. Beyond that? Nope, not really.Big Takeaway...Obama rejects notion that his policies were rejected by voters last night. Says his policies are not moving the nation backwards, rejects notion that was message of last night. He's not going the Clinton way. It would have been much shorter and much more honest if he just said what he really wants to say, "Let me be clear, I'm still awesome. If you aren't smart enough to get that, it's on you not me." (here)

b) Less than 24 hours after he lost the golden mantle, President Obama went before an expectant nation with a White House press conference. He and his party had received an historic slap-down. The people had spoken directly and plainly.For the first two-thirds of the presser, the president spoke in Washington-speak. It was nuanced and hit notes that his aides would nod at approvingly. He was humbled and willing to reach out to the other side. If you were a Washington insider and you had a decoder ring, you could nod appreciatively that you understood the message.But as a political acknowledgement to an angry public, it has to be chalked up as another loss. In the language of the American people, it was not straight talk. It was babble, presented in cold language that only Professor Obama could deliver. (here)


  1. Re: Keynesianism

    In this case, I find the economists' reasoning difficult to contradict. Businesses and individuals are scared and don't invest. They save as much as possible. That means the State can borrow as much money it wants practically for free. On the other hand, 15% or more of the productive capability is idle (even more so in the building sector) and it's therefore available at rockbottom prices. Borrow money and use it to build infrastructure or invest in research should be a no-brainer.

  2. The Americans are disappointed not because Obama is not able to perform miracles but because he has pretended to able to perform them. He had launched a wonderful image of himself that doesn't seem to corresponded with reality. The lofty, long-sighted man of principles. The man of integrity who, with the support of modest Americans, can achieve everything in the 'Yes we can' way. He is first a populist who, eager to please, wants to go too fast in the USA, to the detriment of the still fragile economy. He is also too accommodating with regard to foreign affairs, seeking offered hand compromises, to the detriment of all that the USA has always defended. He accepted the massive election fraud of Afghanistan too easily, to the detriment of the Afghani population, their democracy and the war effort. He continues to deal with Pakistan funding them generously despite all known facts since the 90's and the country's shaky, untrustworthy reputation.
    He continues to try to appease Muslims with the ill inspired idea of allowing a Mosque complex to be built too near to Ground Zero.
    Like a hero he was the first to help the Haitians after the earthquake, almost discouraging others to do likewise. Since then however, and in spite of the misfortune of floods and the cholera epidemic, he seems far less concerned by Haiti.
    Many are disappointed regarding Obama simply because they realise that he is not the person they thought they had voted for.