Why Obama is Sabotaging U.S. Economic Growth

June 30, 2010 07:55

The Obama Administration knows very well that passing the financial reform bill is not going to improve the unemployment picture, or solve the economic crisis, or even prevent the stock market from crashing again.

By Zubi Diamond at AIM

If the financial reform bill passes, the bad Wall Street will win, the good Wall Street will not. And investors and American families will lose.

As I explained in my article, The Dodd “Financial Reform” Bill Lets Soros Off the Hook, the bad Wall Street consists of the hedge fund short sellers, the predators who loot investment capital and slow down economic growth.

New home sales have dropped by 33 percent. The unemployment picture is not improving. The stimulus bill did not work. What is happening to our economy?

I wrote in my book, Wizards of Wall Street, that we will never recover from this crisis until the 7-point action plan is implemented.

My recommendations include restricting short sale transactions, ending mark-to-market accounting completely, restoring the old financial market circuit breakers, and restoring the old uptick rule without any modification. These changes will protect invested capital and save the capitalist system.

You cannot solve a problem unless you know correctly and truthfully what caused the problem.

The elected officials and the big media lent deaf ears to my analysis and forecasts. But everything I predicted is unfolding before our very eyes.

But brace yourself: the worst is yet to come unless my recommendations are implemented completely.

Treasury Secretary Tim Geithner says the U.S, can no longer drive global growth. What does this mean?

Answering a question on the BBC, Geithner said that the administration is now taking steps to come out with better growth outcomes across the global economy.

Translation: The administration has purposely hamstrung U.S. economic growth as a way to burst the bubble of America’s supremacy. The financial reform bill carries this process forward by suppressing the capitalist spirit, business freedom, and economic growth.

President Obama had hoped to carry his trophy legislation to the Chinese and Russians at the G20 and G8 meetings. It would have been like bringing America’s head on a platter.

Ask yourself: with the administration passing the financial reform bill, will it translate to solving the economic crisis? Will it translate to robust economic growth for America? Will it heal the private sector and create more jobs and reduce the unemployment rate or stop the stock market from crashing again? The answer is “No.”

Then you should ask yourself: Does the Obama administration know this? The answer is “Yes.”


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