I think the economy is going to the dogs but maybe its going to the Cats. Either way let me give my take on Obamanomics. I do believe that Obama has done great harm to the economy and is certainly to blame for driving us off the cliff.

I like the old saw “skating on thin ice” as an analogy. How does one skate on thin ice? Very carefully. Obama has the whole economy skating on thin ice–we all scared and nervous. What do you do when you are concerned about the economy? You hang onto your money. Look at how our saving rate has gone from flat to 4% over the last 20 months or so. Cap & Trade-Obamacare-financial reform-we have tax rates for 2011-we have no plan for domestic oil/gas production have created uncertainty. Not only are American consumers hanging onto their dollars but they are shrinking their consumer debt. Ditto for American businesses. How to plan for expansion when you are under the threat of Cap/Trade plus the pain that is coming in obamacare 2013. American corporations have piled up over a trillion in cash on their balance sheets and are paying debt as while-this money is not going to create jobs but is just sitting there. There is huge amounts of cash and available borrowing capacity out there in corporate American but who wants to invest with this gang in DC?

The second thing, IMO, that Obama has done to the American economy is taking our future. We plan-invest-spend based on future expectations. We have a 1.6 trillion deficit projected for this year–the national debt will reach so many multiple trillions in the next few years or so. Yet we are historical low interest rates so what does the future hold for us? I think we are in for 10% unemployment until Jan 2013 or so. No growth in the jobs market for the rest of 2010 and 2011 is looking mighty dark in my opinion. Look at Merck-Pzfiser-Hershey-Smuckers-HP-IBM plus numerous other corporations. They are making plans to reduce employment over the next few years even as profits soar. America’s corporations are voting with their pocketbooks and no one seems to be expecting any economic growth as its now about managing your expenses and bottom line as opposed to growing your business. We have a crippling budget deficit and the only way to solve this is either to grow the economy (that’s not happening under Obama see point one) or to live with diminished expecations.

I am no econ guy but is there any silver linings out there in our economy? Has Obama got any job program or economic growth program that does not start and end in government jobs?

Boy this is a happy post–maybe I need to replay the Cat video