Guest Post: Obama - The Wimpy President

Tyler Durden's picture

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
nope-1004's picture

Change we can bereave in.

 

redpill's picture

(Sharks with freakin') laser focus on jobs!

MillionDollarBonus_'s picture

President Obama really needs to seize the moment and announce something big. I suggest he could introduce a large fiscal stimulus program with a slight variation on the previous attempts. One idea would be to offer a tax break for throwing out old electrical appliances like TVs and washing machines, and buying new ones. This will boost the economy by encouraging consumption, and its also good for the environment because modern electrical appliances are more energy-efficient. The tax break could be conditional on buying the equipment from a few selected US corporations to ensure that it stimulates only AMERICAN jobs. Just an idea.

duo's picture

Better yet, bulldoze 5% of the homes in the country to "stabilize" house prices.  What could go wrong?

MillionDollarBonus_'s picture

That is not necessary. House prices will rise if we simply stimulate aggregate demand. I would suggest some Krugman and Stigletz as background reading.

razorthin's picture

Deflation and saving are good for everyone except the elites, ackward bassclown.

MachoMan's picture

It depends...  if you buy all the real assets on the way up, deflation offers an incredible stranglehold and barrier to socioeconomic mobility.  At this juncture, I'm not convinced at all that deflation is something to be desired by the common man...  it could quickly digress into something...  terrible.  It all depends on timing and what happened in the run-up and what happens everywhere else.

However, I doubt we'll have the option to pick our poison...  not that inflation is any panacea for the morts...

Long-John-Silver's picture

Stimulation is good for about 15 minutes and a smoke break.

wisefool's picture

Sounds like my 66,666 pages taxes code.

Did I really enunciated the hisses?

Wisefool-Back to the cave.

JW n FL's picture

 

 

Obama is a Lobby Whore..

Obama has privatized more Public Housing in 4 years than Bush did in 8 Years..

This NON-Stop Sales Pitch that Obama does anything for anyone other than his Lobby Owners is a shield! that allows Obama to continue to Rob "We the People" without a Billion Dollar Lobby!

Wall Street Pushes this FAUX Exterior so that Obama can continue fucking over "We the People".

Dont Vote Cowards!

Post what Obama has done to re-distribute wealth! LOL!! NOTHING!!

caconhma's picture

Lady, you are just wonderful. It is one of the best comments on ZeroHedge.

PS

I wish I met you a long time ago.

 

Thomas's picture

You have a sex life? That makes you a ZH standout.

BTW-MillionDollarBonus: Ignore the negative votes. You are a master.

Bendromeda Strain's picture

You obviously weren't exposed to enough Hamy the Magnificent.

BenLightYear's picture

What flavor was the kool aid they offered you?

Yeah stimulate the economy by creating no long term jobs, creating more debt and wasting energy. You guys are so smart

hunglow's picture

You're cheating yourself.

Homey Da Clown's picture

MDB, you're either here strictly to troll, or your last name rhymes with Hobama.  Either way, no one is buying your bullshit.

 

I bet that Million Dollar Bonus was from a gubment program.

BetTheHouse's picture

Relax.  I'm pretty sure it's satire, folks. 

Thomas's picture

It's brilliant, relentless satire. It's satire that illuminates. It's...it's...Colbertian!

mfoste1's picture

WHY are you such a retarded cunt? your comments get junked to the fucking moon.....smart suggestion: never post here again!

Big Corked Boots's picture

Why read Krugman, while we are living it?

I Am Not a Copper Top's picture

I have to assume MDB is being sarcastic.  Please tell me you are being sarcastic?

DeadFred's picture

This guy's only been around eight weeks maybe he doesn't know how to indicate he's being sarcastic (Ihope). Otherwise he's a great lead in to what I was going to post.

"How stupid and gullible can the American people be?"

Really, really, really stupid.

CrimsonAvenger's picture

And I would suggest a 2x4 to the back of the head. It'll save you some time.

BenLightYear's picture

Since no one else decided to reply to your Keynesian kool aid recipe i will give it a shot.

First of all I would like to spit in your face and kick you in the balls for your poorly understood perversion of Keynesian economics. Nowhere did Keynes write that a one time shot of productivity waste will do any good. Maybe it's time you go and read what he actually has written rather than pulling some half statements you saw in a post or overheard out your ass. He was quite clear in his theory for the govt boosting aggregate demand. It was anything but a one time money drop combined prematurely throwing away fruits of past productivity. For the govt to boost aggregate demand in a way that boosts the economy AND offers a retun it can not be a one time wham bam thank you maam act.

First the government needs to employ people in a position that allows them to feel as though they have a job in the indefinite short term future....ie 3-5 years. People buy beer with 3-6 months jobs and cars, appliances, houses, house remodelings, pools, vacations and such with long term employment outlook. No one is going to buy anything they don't need with a short term job. ( well at least in theory...nowadays I wouldn't be surprised if Obama sent out 20$ checks and folks tried to use them fo down payments on cars)

Once people feel they have secure employment they start making the purchases that are the basis for economic growth. The problem we have now at the moment is that even those with jobs are scared shitless because they see their neighbors who just a little while back were in same position and the only thing that is different is loss of job or a change of job with lower pay. Yes it is a big change but who the he'll makes 100k a year and can't survive for 6 months or a year after they lose their job. It is ok to save some money...long term it's good and healthy ( we are about to find out first hand what Japan would have looked like for the last 20 years had their citizens spent 105% of what they made.

Once people start feeling confident that things are going to be ok then slowly piece by piece the economy starts to get it's legs back and we start to grow again. Now that growth alone is going to seem small and slow. Not because it's not enough but because it is natural growth ie healthy sustainable growth not keynesiast bubble growth. For the last 2 decades of bubble growth we need the banks to start lending again. The majority of growth we have witnessed over the last 2 decades has been from credit growth. Personally I am fine with natural growth and let the dumb shits who spend more than they make ask for handouts on the highway by their house to pay for the 2 extra bedrooms no one uses.

Now in regards to your idea of the govt giving a rebate or refund for throwing out useable appliances and buying new I can't really stop laughing. The return you seem so excited about from energy savings is quite a bit less than the energy wasted. What I mean is that you are going to throw out working appliances that cost energy to produce and replace them with new ones that take energy to create to save energy. I assume you have never actually read any type of non fiction book let alone one on basic math or Econ ( it's not your fault most of us went to public schools) just some of us realized we were just as dumb as when we started so we kept on reading.

Then to top it all off your no job creating idea is gonna come with quite an ugly price tag. Well not for you but for your children. Maybe no one has noticed the actual playbook TPTB are using. If you ingrane shit in people's heads at an early age, constantly tell them that's the way it is then all you have to do is wait til the later generations die and everyone thinks the way things are are the way they are supposed to be. 2-3 generations away our grandchildren will be raised to think that trading your productivity to pay fo an odious debt acquired before they were even born is the way it's supposed to be.

If Obama wants to spur economic growth he can do 1 of 2 things. First he can have the fed buy all th bullshit sitting on the banks balance sheets and have Ben handle it in whatever way he see's fit....maybe call it MLAPCAP...multilateral assets purchase and cash allocation plan...basically Obama points to the printer in front of Ben and says let's see if you can work magic or if only elves like Orin an can and I'll replace your ass. Ben can then go about doing whatever the ghost of Econ past tells him to do. Then the banks can start creating credit out the wazoo and we can get the party started again.

The other option is a real jobs program. He could fund and subsidize that bs solar company from the last stimulus and nationwide put 8 solar panels on top of every house and 50 on top of every business. Would create over a decade of job growth and would pay for itself many times over. That is the type of program Keynes envisioned. Not some half ass refrigerator buying spree.

Yes I understand today's solar sucks...but so you think it would be the same shit if we sunk 15 years of growth and 4trillion dollars into it? I imagine the innovation would be quite extraordinary.

Keynes was not so much wrong as misunderstood. Keep in mind any keynesiast idea creates debt. So any idea must have a return on investment that totals the debt incurred plus interest...nationwide solar panels would and new toasters wouldn't.

nmewn's picture

I stopped reading right here...

"For the govt to boost aggregate demand in a way that boosts the economy AND offers a retun it can not be a one time wham bam thank you maam act.

First the government needs to employ people in a position that allows them to feel as though they have a job in the indefinite short term future"

So, the presumption here is, if everyone were employed by the government the economy would soar for "the indefinite short term future".

Well, what the hell are company's waiting on?...surely its within the power of government to just nationalize all private industry...lol.

Keynes horseshit theory died in the 70's when stagflation and high unemployment took hold...you just weren't around to see or experience it kid.

Now run along and play with Krugman's apples.

BenLightYear's picture

Subsidize not privatize

I must be dumb cause I'm not aware of the effect of a national jobs program has on INCREASING unemployment.

nmewn's picture

I have no time for Keynesian apologist trolls.

"Subsidize not privatize"

Maybe someone else will find the time to subsidize you...I will not...as far as I'm concerned you can rot in your Keynesian hell bitch.

MnMark's picture

First of all I would like to spit in your face and kick you in the balls for your poorly understood perversion of Keynesian economics. Nowhere did Keynes write that a one time shot of productivity waste will do any good. Maybe it's time you go and read what he actually has written rather than pulling some half statements you saw in a post or overheard out your ass.

And nowhere did Karl Marx write that those who disagreed with communism should be thrown in the gulag or a North Korean prison labor camp and worked to death...but that was the natural result of actually trying to implement communism.

And the natural result of trying to implement Keynes' policies in the real world is that people want all the government spending during the hard times but do not want to pay for it during the good times with tax increases and government surpluses stored for later.

So Keynes, whether he advocated what is now done in his name or not, is as responsible for it as Marx is for what communism has done to the world.  Keynes and Marx did not understand the real world or human nature well enough, and their well-meaning ideas when adopted by actual politicians in the actual real world cause disaster.

Someone may come up with a great theory about how people ought to be able to fly if they just jump off a building and flap their arms hard enough, but if you don't know enough about reality to see how that will turn out, don't be angry if people blame those who made the suggestion when someone is foolish enough to try it out.

BenLightYear's picture

Your right...it's not the gang bangers fault that kid got shot in the drive by it's the gun makers....RESPONSIBILITY...did they take that word out of the English dictionary?

I would love for you to tell me how Keynes theories don't work. Not how they are not employed properly but how his actual theories don't work. I'll even be nice and let ya pick what theory or paper you want to use. Generally this would be admitting self defeat on my part however I doubt you can understand and point out his theories that actually wouldn't work. Not everything he wrote was right or applicable to our economy today so you can make me look stupid if your smart enough :)

Andre's picture

"First the government needs to employ people in a position that allows them to feel as though they have a job in the indefinite short term future..."

The government needs to employ all the people? So Keynes was a Marxist?

That might explain a few things.

The point I will give is the need to longer-term employment. Try raising a kid as a contractor. Not a happy thing. Friends? Heck, schooling? OMFG

The inability to form more than surface relationships is, IMO, a major social disadvantage.

Sgt.Sausage's picture

Here's the first fatal flaw in your above spewage:

"First the government needs to employ people in a position"

The government's legitimate purpose should have shit-all to do with jobs. Government doesn't create jobs. Folks actually employed by the government are leaches, sucking up your tax dollars for no legitimate return.

From there, your argument only gets worse.

BenLightYear's picture

I should have stated at the beginning I am not pro Keynes or pro govt involvement.

Now if you can come up with a plan to keep the govt out I would love to hear it. Since the only way to get the govt out of it is revolution I'm taking the side of 2 lesser evils. I would prefer the govt to do the right thing under the wrong pretext than the wrong thing under the wrong pretext.

If you can convince the country to tell the govt to screw off than congrats to you. Instead of responding you should go write this wonderful moving speech that everyone is gonna turn off jersey shore to watch.

Since the govt is involved whether we like it or not ( something Keynes clearly understood) they might as well do the right thing. Keynes was as a % as right as most famous world changers. He wasn't always right and his theories had to be followed correctly and when outside factors changed the paradigm adapting correctly is necessary.

Personally I prefer an economy where the govt regulates for the interests of the society as a whole and nothing more. Since we won't get that we can at best hope when they do involve themselves it does the least damage and maybe a little good.

blunderdog's picture

Yes I understand today's solar sucks...but so you think it would be the same shit if we sunk 15 years of growth and 4trillion dollars into it? I imagine the innovation would be quite extraordinary.

The problem is that arbitrary interest-rate control by central bankers prevents logical financial risk vs. reward for truly important infrastructure development.

The reason you can't get financing for high-tech industry and infrastructure is directly attributable to keeping interest rates too low to make long-term but risky investment appealing.  Subsidization of crappy technology in the environment in which even the POTENTIAL payoff holds no appeal is placing the cart before the horse. 

It is more valuable to maintain an environment in which any/all forms of innovation with revolutionary potential are funded.  If the best solar has to offer is a sunk cost of $4 trillion to give us electricity at costs similar to the next decades' worth of coal consumption, it is obviously a dead end.  In other words--it would definitely be the same shit if we paid business to produce the same shit--and that's what it sounds like you're describing.

There are occasionally development opportunities which are so tremendously powerful that direct subsidization may be worthwhile.  I personally am pretty glad we built a phone network and national power-grid.  But the only recent development which is at all comparable in terms of scale is the Internet.

(BTW: Anyone using "Keynesian" as an epithet is, probably unknowingly, just cherry-picking stuff to hate.  Newton was "wrong" too, but we still use his equations.  We wouldn't have built the Space Shuttle without that crazy commie in Russia, either.)

cranky-old-geezer's picture

 

 

House prices will rise if we simply stimulate aggregate demand.

Falling prices also stimulate aggregate demand, and falling prices are what the natural market is trying to do.  

However, bankers (like yourself perhaps?) want prices to stay where they are and not fall, so they don't have to write down the value of mortgages they hold and foreclosed homes they own, thereby postponing the invevitable balance sheet crash, insolvency, and bankruptcy.

Sure, the Fed can keep printing currency and "recapitalizing" these insolvent banks, which you would support no doubt.  But then the dollar collapses.

Natural markets always prevail in the end.  So which poison do you prefer?  Bank collapse or currency collapse?

Long-John-Silver's picture

Michigan has been doing that for years now. Not long ago they bulldozed a full 400 acres of abandoned homes and leased it out to Corporate Farmers.

lolmao500's picture

Or better yet, bulldoze all of Detroit so no more people call Detroit a shithole. In the minds of keynesians, that will even reduce poverty! I mean, if you destroy poor neighboorhoods, it means there's less poverty right?

New_Meat's picture

"President Obama really needs to seize the moment and announce something big."

I concur.

- Ned

{taking bets, too}

{{ya,  pickin the winnerz!}}

Long-John-Silver's picture

He'll never willingly resign the office, sorry.

Hedgetard55's picture

Along with the old appliances we can toss out the old geezers, anyone over 70 years old, and give a tax break for each one that is put to sleep. Solves the Social Security cash flow problem as well.

thatthingcanfly's picture

"I'm not quite dead yet!"

"I think I'll go for a walk!"

Thomas's picture

And in the spirit of the gun sales to the Mexicans, we could buy their drugs. Call it "Cash for Hash" or "Cash for Stash". Then they would spend it in the US and we would become stinkin' rich.

Oh, even better. They could implement a Cash for Gold. Set up kiosks in malls. As blinder said, they could buy any asset they want. 

nmewn's picture

"And in the spirit of the gun sales to the Mexicans..."

Its actually worse than that.

Now there are reports of an Operation Gang Banger in northern Indiana...across the state line from...Chicago.

http://www.examiner.com/gun-rights-in-national/exclusive-report-documents-indicate-atf-fbi-allowed-indiana-crime-gun-sales

nmewn's picture

Plus one on Franky ;-)

I am puzzled though...this current gang is so inept it can't shoot straight on anything. No administration, in my memory, has been this incompetent...not even Carter. They are relying strictly on the MSM to not report whats going on outside the bubble. And the MSM has zero cred to boot.

This could be the big one lizbeth...lol.

StychoKiller's picture

Perhaps the purpose of the US Govt is to "pretend" to fail...