Wednesday, August 17, 2011
Is Obamanomics the opposite of Reaganomics?
Each crisis demands its own strategy. Crisis are cyclical, every 8 or 10 years the economy pes through a shock and readjustment. For instance, do you remember the digital bubble? However, the last two crisis had an artificial make-up. The companies pretended to be healthy but they were rotten. One can't deceive all the time, and banks had to admit they were broken, after a period of misdoings, giving credit to every person who wanted a new home. Of course, this generated a carnival of bad credits, people speculating with this market flaw. What Obama is doing should have been done eons ago, he is regulating the credit and making declarations more transparent to tax payers. This is not a left or right strategy, is tactics of war. Times under Reagan were much different. Remember he approached Russia and China, and the press never imagined he'd be a communist or even a "pink". In my country, Brazil, as we say, the government "fastened the belts", making credit only available for those who could afford. Economy this way goes slower but much more secure. Down here you must prove the bank you don't really need the money until they approve your credit. Of course, also in Brazil "belts are being loosen". Lula cut many taxes in fields that started to sink. But we'll be starting to recover in three or four months. USA will be stable around December. Right now it's a matter of panic. Don't worry, the Western world will survive, and soon we'll be talking about the old Israel-Palestine-Iran-Iraq affair. Write down this: we'll have a new conflict involving Iraq and Iran. I hope this time USA let them kill each other in "peace".
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