Geithner says Obama will bring down deficits – Yahoo Finance.
The article above is an example of politicians setting expectations, and creating an environment with the opportunity to fail–that is win the next election. However, the Obama Administration has been long short on explaining how they will cut the deficit. One report suggested their sights are set on 3% of GDP, from the latest estimates of 12.5% of GDP. Good Luck.
Does the administration plan to sustain a tax rates at relatively high levels to bring down the deficits? And the question I’d love to hear addressed, how do you keep a Congress from spending the money in exchange for votes in reelection efforts. The Democrats never did this during their reigns in power. And as we saw in the Bush Administration, the Republicans never controlled spending either. The two parties simply spent on different priorities, but spend they both did.
I supported Obama for President, because his values were in the right place, but not because he had some magic elixir for managing an economy. For now the administration is saying all the right words, but
- declining numbers of jobs
- increasing government spending rates
- declining value of the dollar
- next inflation’s coming
Hope the train gets off these tracks, but for now, I’m looking for investments that profit with a struggling USA–they exist.
