WASHINGTON, January 16, 2016 — In his final State of the Union Address, President Obama said, “The United States of America … has the strongest, most durable economy in the world.”
Obama’s brand of wishful thinking brings to mind the time he downplayed the threat posed by ISIS, which he compared to a junior varsity team, “This is not an organization that can destroy the United States,” he told National Public Radio.
ISIS does not rule America, but that didn’t stop its sympathizers from shooting up San Bernardino, California, killing fourteen.
On Friday, Obama’s “durable economy” saw the Dow Jones industrials tumble nearly 400 points, following oil’s drop below $30 per barrel. And with economic sanctions soon to lift against rogue Iran, the oil glut will probably grow, putting more downward pressure on the price of black gold.
As if things couldn’t get any worse, the world’s largest retailer, Walmart, announced it will close 269 stores, with a loss of 16,000 jobs. The company’s earnings are down 12 percent.
And the engine of global economic growth, communist China, saw its own growth slow, sending shudders through the global economy. (China’s Shanghai Composite Index slid into free-fall, but because the rigged market has no connection to reality and few foreign investors, that was less alarming than it sounds.)
There is a silver lining to the market carnage: President Obama and Hillary Clinton’s uber-wealthy benefactor, Warren “The Oracle of Omaha” Buffett, lost $2.3 billion on Friday from just five stocks: Coca-Cola, Wells Fargo, IBM, Kraft Heinz and American Express.
Don’t worry, Buffett will be just fine. His estimated net worth is $66.7 billion.
In 2011, Buffett wrote an op-ed for the New York Times, saying, “Our leaders have asked for ‘shared sacrifice.’ But when they did the asking, they spared me. I checked with my mega-rich friends to learn what pain they were expecting. They, too, were left untouched.”
Factoring mightily in America’s growing income gap is the Federal Reserve’s massive bailout known as quantitative easing.
In 2013, Andrew Huszar, who managed the Fed’s $1.25 trillion purchase of toxic mortgage-backed securities, said in the Wall Street Journal:
“I can only say: I’m sorry, America … Because QE [quantitative easing] was relentlessly pumping money into the financial markets during the past five years, it killed the urgency for Washington to confront a real crisis: that of a structurally unsound U.S. economy. Yes, those financial markets have rallied spectacularly, breathing much-needed life back into 401(k)s, but for how long.”
The unprecedented taxpayer bailout of Wall Street was in reality a massive transfer of wealth from people like you to those that run mega-conglomerates like Berkshire-Hathaway, whose majority owner happens to be the politically connected Warren Buffett.
During the financial crisis of ‘08, investment bank Goldman Sachs, in which Berkshire held a $5 billion stake, got $13 billion from Uncle Sam as a “too big to fail” member of the financial sector. Berkshire was also the largest shareholder in Wells Fargo bank and American Express, which received $25 billion and $3 billion respectively.
“My friends and I have been coddled long enough by a billionaire-friendly Congress,” said the cynical Buffett at the conclusion of his New York Times piece. “It’s time for our government to get serious about shared sacrifice.”
Have you noticed that in Obama’s America, the champions of “shared sacrifice” and “income redistribution” have grown in power and wealth at the expense of your freedom and prosperity?