OBAMA ECONOMICS WRONG, MERKEL RIGHT
Europe Recovers as U.S. Lags Dollar drops as Germany, France see growth MSM had been forced to throw in the towel. The numbers are too obvious thoug they still ignore the much lower German unemployment. Obama and his minions may be running around taking credit for saving the US economy from depression. Actually, even the one successful stimulus program, Cash for Clunkers, is a copy of relatively cheep German one.
Still, it is Merkel's Germany that has"unexpectedly" succeeded in spearheading Europe's return to economic growth regardless of her unbalanced economy. The trouble with the German economy according to The Economist is that it does not rely sufficiently on consumer spending."Last year consumer spending was only 56% of GDP compared with the 70% in America."
Well, it turns out that Germany is being saved by her exports which enable her to take advantage of Asia's astonishing Rebound. If only America had not so magnanimously destroyed her own economic base, she would have been in a position to do the same.
The truth is that the countries (US and Britain) which followed Keynes most religiously are slowest to recover and are destined to suffer for years from the a terrible debt burden. This was not supposed to happen so. Really?!
I believe that a higher savings just may save our future provided we stop borrowing and invest, yes invest, in energy independence which does NOT mean expensive solar and wind but Nuclear plants and electric cars.
Here's the economic reality: Every $1 per barrel rise in oil decreases U.S. GDP by $100 billion per year and every one cent increase in gasoline decreases U.S. consumer disposable income by $600 million per year.
Curtailing our spending will force China to restructure its own economy and put us in a position to demand that China play fair as WTO rules demand not to mention curtail our financing of Mideast dictators.
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