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WH Fearmongers For More Stimulus Money

From Obama’s Gunga Dins at Reuters:

White House sharply cuts growth forecast

By Alister Bull | Reuters
September 1, 2011

WASHINGTON (Reuters) – President Barack Obama sharply cut estimates on Thursday for U.S. economic growth, underscoring the difficult challenge he faces in spurring a stronger recovery and creating more jobs.

Poor President Obama. Though, he might find this challenge less difficult if he would just try some of the things that have always worked in the past.

In a midyear review of his annual budget, Obama predicted average unemployment of 9 percent in 2012, when he will have to fight for re-election

And, after all, his re-election is the important thing here. Not the untold millions of unemployed.

"The economic projections make clear there is a real need in the short term to kick-start economic growth and get on a sustained higher growth path," White House budget chief Jack Lew told reporters on a conference call.

In other words, they have decided to use fear mongering in order to get still more government spending from the American taxpayers. But, after all, November 2012 is getting closer and those votes aren’t going to buy themselves.

Obama must convince voters his policies are working in order to retain the White House, but doubts have grown over his stewardship of the economy after a summer of wild stock market swings and a raft of bad economic data that underlined the risk of the country plunging back into recession.

A new CNN/ORD poll found 65 percent of respondents disapproved of his handling of the economy, reflecting the harm done by a bitter budget fight between Obama, a Democrat, and Republican lawmakers that led to ratings agency Standard & Poor’s cutting America’s top-notch AAA credit rating

Was Reuters trying to see how much disinformation they could pack into one sentence? Nobody cared that there was a debate about letting the government borrow trillions of dollars more from the Chinese. And S&P certainly didn’t downgrade our credit because some Republicans objected to us going further into debt.

Economic growth was marked down compared with what the White House had forecast in February, with conditions deteriorating even further after the administration locked down its predictions in June for the midsession review.


As a result, it offered an alternative economic forecast based on what has happened in recent weeks. That projects GDP growth this year of 1.7 percent, compared with 2.7 percent expected back in February, with 2.6 percent forecast for 2012, down from a 3.6 percent prediction in February

We think Reuters is trying to say that the administration has realized that its absurdly rosy growth predictions would never come true.

The new economic data on Thursday was the latest in a series to suggest the economy remained on a slow-growth path and offered hope it would dodge a recession…

"Despite recent setbacks, the Administration expects the economy to grow at increasing rates in the months and years to come," the White House said. "The potential for a sharp recovery is present," it added, noting abundant capacity in the economy to increase output, including high unemployment…

Yes, nothing screams "potential for a sharp recovery" like high unemployment.

This article was posted by Steve on Friday, September 2nd, 2011. Comments are currently closed.

3 Responses to “WH Fearmongers For More Stimulus Money”

  1. proreason says:

    If GDP growth is negative for 2 consecutive quarters there will be another official “recession”.

    Fortunately for the Boy King, gubamint spending counts in GDP, so another recession will be easy to avoid, particularly since Boner gifted him another 2.8T a month ago. That’s plenty enough to trick the statistics.

    If Congress doesn’t approve, so what? He’ll spend it anyway. He’s the president after all.

  2. JohnMG says:

    Well, at least unemployment didn’t rise above 8%.

    What?? You mean it did? Oh…….

    Neeeeeever mind.

  3. Papa Louie says:

    Obama is still spending the original stimulus and it has resulted in zero jobs for August. That should make it clear that additional stimulus money will not help because any amount times zero still equals zero. You can’t get the water level of a pool to rise by taking water out of the deep end and redistributing it to the shallow end. All you get is more waste and evaporation, even if you try to do it twice as fast.

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