“On the other hand, all that has happened is that the tax rates that have now been in force for almost 10 years have been continued for 2 more years. The Fed has the economy fully primed for rising inflation and interest rates as the recovery takes hold. The EPA is on a rampage to implement the mother of cap and trade and otherwise shut down the economy. Interior Secretary Salazar is shutting down domestic energy production. Obama’s National Labor Relations Board is preparing to shut down small business as it implements card check and forced unionism by decree. Obamacare will kill more and more jobs as it causes health care costs to rise faster and faster, and its employer mandate and tax increases loom closer and closer.
The net net of these countervailing forces is hard to determine. The best guess is that there will be some real recovery over the next year. But the economy is more likely to turn down as we enter into 2012 and the Obama negatives gather force. If inflation does start to accelerate, another recession a year or two later will be inevitable, depending on when the Fed decides the inflation is getting out of control and has to be stopped. Obama’s Back to the Future economics will then have succeeded in fully restoring the 1970s.” Read more.
“The New Big Picture”
The American Spectator, December 15, 2010.
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