Mostly seen on bumper stickers, the word Obamanos, is spanglish for “let’s go Obama”. However in the Urban Dictionary, one of its meanings is also “those who will fall for anything. I.e. I can’t belive all these Obamanos, who really think he’ll change all our problems.” I think the later describes the coined name much more appropriately. Here’s why;
The last four years were horrible for the US. Obama even managed to double the deficit, now approaching 17 Trillion US Dollars in public debt. The economic policies of the last four year will be the same of the next four years, which will further undermine the US economy and hence international markets, at least for now. We live in a global economy, where most markets around the world are dependent on the consumption of Americans. With destructive economic policies like the Dodd Frank Act, however, more and more foreign corporations will no longer put up with the hassle of having to comply with burdensome US regulations and will search for other customers abroad.
Watch the video below that supports this thesis. Oil-producing nations like Sudan and Iran are becoming reluctant to supply oil to the US and much prefer providing oil to China due to easier trade terms.
The repercussions of foreign countries selling oil to China is immense. Iran and among other nations are setting up bi-lateral trade agreements with China to by-pass the US Dollar and hence, the collapse of the petrodollar system is born.
How is this any good for the US? The whole foundation of a fiat-based reserve currency is confidence. As confidence is lost, as we are currently starting to see, so goes the US Dollar. As more worthless dollars come back home to chase fewer products, this will send the US Dollar into hyperinflation. Hyperinflation is a depression. Although, deflation, too, can cause a depression.
When George W. Bush took office in 2001, there were 17.3 million Americans on food stamps; at the end of his term in 2008, there was 28.2 million, a 63 percent increase in 8 years or (1.36 million every year). With Obama there are now, in 2012, 46.37 million Americans (or 15% of the entire US population) on food stamps. This is an increase of 64% (or 4.54 million) every year. Can you still hear the chanting of Obamanos now? “Let’s go Obama!!! We need more people on food stamps!”
The unemployement rate at the end of 2008, during the end of Bush’s term, was 6.8%. After 4 years it is now at 7.9%. There were no net increase in jobs during his whole first term.
What about the fiscal cliff that the mainstream media and Obama are totally ignoring? After December 31st:
-Income tax increase
-Capital gains tax increase
-Dividends tax rate increase
-Estate and Gift Tax exclusions are going down.
The only thing Obama will do is make it easier to do their income taxes, No jobs and no income. Instead of “let’s go Obama”, maybe “No Mas” is more appropriate.
How are these tax increases any good to a sluggish US economy? I can smell a stock market sell-off to avoid paying the extra taxes in the new year.
Don’t be fooled by the charismatic nature of Obama; although definitely a good speaker, look beyond the rhetoric and discover what he does and not what he says. Actions speak louder than words. The hope and change people were promised were all but an illusion. An increase in debt, food stamps, unemployment, and inflation is what Americans have gotten and, in their gratitude, have asked for another four years.
Are you an Obamanos?
