UPDATE: Top 10 U.S. Economic Issues to Monitor
It is Irresponsible to be Responsible
Those who are irresponsible get rewarded.
Those who are responsible get punished.Since it is irresponsible to be responsible in America today, we cannot rely just upon “In God we Trust.” Our destiny is in our hands, not His. God Bless America.
“It is irresponsible to be responsible.”
This is the new motto of America as I view it. Indeed, we should replace the motto on our currency from “In God we Trust” with this new motto given the anti-Judeo-Christian orientation of our current leaders. Since my article “The Top 10 U.S. Economic Issues to Monitor” was published in early 2008, we have elected Barack Obama as President of the United States. He is about to close out his current term of office. It is a big disappointment that all of those top 10 economic issues in the study have not been adequately addressed.
We are now, due to length of time and the magnitude of the problems, facing more serious negative repercussions than ever. In the almost four years of his Presidency no economic positives have been accomplished. Many economic indicators have actually deteriorated even further which now makes them a greater concern. We will address here only a few of those concerns to monitor.
Government Expenditures and Deficits
This still remains the most serious concern. Over the past four years, we have seen a rapid deterioration of the country’s finances and record levels of government debt unprecedented in the history of the Republic in this magnitude. The regional debt ceiling will be raised from $11.3 trillion to the requested $16.4 trillion. This is an increase of 45 percent during President Obama’s term. National debt has increased under Mr. Obama faster than any other president, and it increases at a rate of $4.25 billion per day. The U.S. debt as a percent of GDP is second only to Greece!
The Federal Reserve cannot, with its monetary policies, prevent this continued deterioration. It will take a coordinated effort that involves a meaningful fiscal policy. This fiscal policy is predominately the responsibility of the President. The Obama Administration has simply not addressed the situation adequately. Standard and Poor’s has stated that additional credit downgrades on U.S. debt could occur given the magnitude of the debt and continued deficits. The IMF has likewise expressed concern about these issues considering the global implications of a further U.S. credit downgrade along with the deficits since the U.S. dollar is a reserve currency.
Social Security and Medicare
America needs Enlightened Leadership. All that has occurred in the past four years is pointing the blame at someone else, and the creation of an environment of class warfare on multiple levels. Thus, one must seriously question the goals of the Obama Administration. Their failure to address these key economic issues calls into question if, given their Socialist-Communistic orientation, they are not actually intent on pushing America into an economic crisis. Only a true Greek-like or worse meltdown would allow a re-elected Obama to carry out the radical redistribution of wealth, which he and his mentors Reverend Wright and Bill Ayers believe in. The longer these economic issues remain, the more serious and devastating will be the outcome.
The Audacity of Hope appears to be social-economic-political destruction of America as we know it. Certainly, the comments of the Obama Administration about “the flaws of our Colonial document” (The U.S. Constitution and Bill of Rights) must be taken more seriously than in the past. The Obama Administration’s recent attack against Religion is of paramount concern, and the orientation of Attorney General Holder that “he will select what laws to be enforced,” brings into question our American principal of Rule of Law.
Since it is irresponsible to be responsible in America today, we cannot rely just upon “In God we Trust.” Our destiny is in our hands, not His. God Bless America.
About the Author(s)
Darrol J. Stanley, DBA, is a professor of finance at the Graziadio School of Business and Management. He is well-known as a financial consultant with special emphasis on valuing corporations for a variety of purposes. He has also rendered fairness opinions on many financial transactions, and he has been engaged by corporations to develop strategies to enhance their value. He has served as head of corporate finance, research, and trading of four NYSE member firms. He likewise has been the principal of an SEC-registered investment advisor. He has completed global assignments as well as having served as Chief Appraiser of International Valuations/Standard & Poor's in Europe, Central Europe, and Russia.