EU Presidency: Obama Plans 'a Way to Hell'
Associated Press, March 25, 2009...
STRASBOURG, France. ...[European Union President Mirek Topolanek] told the European Parliament that President Barack Obama's massive stimulus package and banking bailout "will undermine the stability of the global financial market."
Topolanek's comments are the strongest criticism so far from a European leader as the 27-nation bloc bristles from recent U.S. criticism that it is not spending enough to stimulate demand.
The United States plans to spend heavily to try and lift its economy out of recession with a $787 billion economic stimulus plan of tax rebates, health and welfare benefits, as well as extra energy and infrastructure spending.
To encourage banks to lend again, the government will also pump $1 trillion into the financial system by buying up treasury bonds and mortgage securities in an effort to clear some of the "toxic assets" — devalued and untradeable assets — from banks' balance sheets.
Topolanek bluntly said that "the United States did not take the right path."
He slammed the U.S.' widening budget deficit and protectionist trade measures ... and said that "all of these steps, these combinations and permanency is the way to hell."
"We need to read the history books and the lessons of history and the biggest success of the (EU) is the refusal to go this way," he said.
"Americans will need liquidity to finance all their measures and they will balance this with the sale of their bonds but this will undermine the stability of the global financial market," said Topolanek.
This is what happens when uninformed people elect an inexperienced, slick talking media star for President, backed by an out-of-control Democrat Congress filled with free spending Liberals all determined to force their liberal agenda and Socialism on America -- regardless of the cost and regardless of whom it may hurt or ultimately destroy!
An incompetent government destroying America's inheritance and future...
Is this the change and hope for which Americans voted?
AAR
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It's gonna be interesting to see the reaction of all the "smartest people in the room" in this administration when what Topolanek is predicting comes true. There are so many factors that people like Tim Geithner, Larry Summers and Christina Romer are ignoring, like what effect rapidly increasing interest rates will have early next year, how consumers will react when Cap & Trade legislation causes their electric rates to "skyrocket". (Obama's own term during the campaign, BTW). Liberals rarely look at anything in dynamic terms, and as a result, often have to go back to their stock fall-back plan of "well, at least we tried."
ReplyDeleteThe real irony in all this is that, while we're plunging headlong into socialism, European countries, who have discovered over the last 30-40 years that it didn't work, are beginning to swing back the other way. During the campaign, Obi-One said:
“We can't drive our SUVs and eat as much as we want and keep our homes on 72 degrees at all times ... and then just expect that other countries are going to say OK.”
My guess is that what Americans drive and eat, and the temperature they maintain in their homes is going to be the least of the world's worries in the next few years.
The EU seems most fearful of hyperinflation driving the valuation of the Euro (€). To protect from this the major players are calling for financial regulation, because they’ve already tried the socialist / Keynesian approach, the center-right Topolanek is pointing out the obvious to his EU counterparts.
ReplyDeleteIf Obama is successful in this, the long term result will be a printing of money on both sides of the pond in a spend-race to keep currency relevance. Gordon Brown is gladly joining in this folly and the Bank of England has admonished him that it (England) cannot keep pace.
Here’s the kicker; historically hyperinflation caused by Keynesian print-and-spend has resulted in an inflation rate that is greater than the rate of money creation.
The more we print, the higher the inflation; the higher the inflation the more worthless the money. Therefore, it is impossible for a government to spend its way out of a recession,/i>. Money needs to be moving around the economy, not flooded with worthless paper.
Count Taly d’Haricots
Gordon Brown is gladly joining in this folly and the Bank of England has admonished him that it (England) cannot keep pace.
ReplyDeleteAnd he got called on the carpet for it in pretty resounding fashion. Hopefully, someone will have the cajones to make this same speech to Obi-One in the near future.