Obamacare tanked the economy and created a worldwide recession!

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by David Safier

Oh wait. That was the bursting of the housing bubble in September, 2008. Never mind.

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2 thoughts on “Obamacare tanked the economy and created a worldwide recession!”

  1. We now have had five years of collectivist policies. We know the economic result. We also know thatthis result was predictable. High taxation rates on job creators plus 90,000 pages of federal regulation plus 50 million people on food stamps produces an economy that doesnt work.

    This is a replay of the great depression policies with several notable exceptions: not only have we not allowed money supply to decline- we have expanded it by an excess of 6 trillion dollars. This nows sets up the next catastrophe. Velocity of money is no longer perfectly falling at a rate neccesary to cover up this expansion – the free lunch is likely over soon, the piper must be paid in one of two ways either the value of money will fall precipitously- think weimar germany where the cost of bread went from a dollar a loaf to a billion dollars a loaf. Or, that 6 trillion will be given implicit value by adopting a set of growth policies – reduced personal and corporate tax rates, reduced regulation and fewer people on welfare.

    We are at the moment of truth. I wouldnt be in bonds or cash. In weimar germany they spent their money every day knowing it be worth 20 percent less the next day. Velocity went to well over 100. Today our velocity is the lowest in recorded economic history – (MZM) 1.46. Once people realize they are holding wortless cash that velocity will explode. Yellen appears to be / is now committed to continuing the expansion of money at 10 percent when true economic value is increasing at one percent.

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