The worst case scenario of Obama and the socialist Democratic Party is that spending will not be restricted or brought into line with revenues, resulting in increased borrowing of money, which will lead to increasingly crushing interest payments demanding ever more borrowing to produce ever shrinking results. President Obama and his Democratic allies will use the election victory to demand more revenue, which is just a fancy way for saying that they will increasingly use the power of the state to take money and wealth from those who do have it and transfer it to those who are politically supporting Obama and the Democrats. This will decrease the incentive to create wealth, force producers and top income earners into hiding their wealth, and eventually lead to lowered economic growth. Increased regulations will have the same effect, forcing wealth creators to comply with rules and regulations and devote less resources to hiring employees and paying them more money. The federal reserve will continue to pump out dollars through various 'easing' schemes, and economics 101 teaches us that increased supplies of money chasing fewer goods and services will lead to inflation. As inflation sets in with low economic growth, President Obama will respond by doing the exact opposite as he should- he'll increase spending and put in place more regulations and print more money, thereby accelerating the decline. Internationally our influence will evaporate, China and Russia and fascists in Islamic nations will gain in power, the withdrawal of the US will lead to a power vacuum and increased uncertainty abroad, and states like Germany and Japan will seek to fill this void in order to protect their own legitimate interests. As the world economy collapses, anti-Semitism will increase too, and Iran will take the lead in an effort to go after Israel, which may even have a nuke set off in it which would kill millions. We're looking at a replay of the Great Depression followed by World War Two with a Holocaust thrown in.
Again, the best case scenario from this election is that we simply avoid some or all of the above.
The situation that I describe above is not just my mad ramblings- other people see some of this as a real possibility too. The Daily Mail's Simon Heffer wrote an article that mirrored these ideas. In New dawn? This looks more like a new dusk he wrote:
The next four years for America look bleak. It’s not so much a new dawn as a new dusk. And with 50 months left in power, President Obama, his hands tied by a Republican-controlled House of Representatives, is a lame duck already.We can only hope that these worse-case scenario's prove more wrong than earlier predictions made by me and others four years ago. Four years ago, I predicted that the election of Obama would lead to higher gas prices, higher debt, a less safe world, continued high unemployment, and a poisoned political environment- and I was right. I can only hope that me and Simon are wrong about the future of America now that Obama has been re-elected to a second term.
He was re-elected despite a majority of voters thinking the economy is on the wrong track. And with tax rises that could wreck recovery due on January 1 – the so-called ‘fiscal cliff’ – experts fear a recession here in 2013.
The most sensible policy – which a Romney administration would have pursued – is deficit reduction. Instead, the second Obama term will increase the deficit, further diminishing America’s economic power and credibility.
Around $1 trillion a year will be added to debt – bringing the total to $20 trillion by 2016. This will drive up interest rates on US bonds, and hard-pressed Americans will have to pay more taxes to fund higher interest payments. Meanwhile, the President is determined to push through his ‘Obamacare’ health insurance policy, which would account for a large part of that increase.
But the Democrats are well aware that the pumping of federal money into corporate bail-outs and infrastructure projects in declining regions is the key to creating a state clientele that keeps voting them back into office.
The administration is already devising stealth taxes to help pay for the bribes it wishes to offer the coalition of minorities that comprise its supporters. Some will corrode the core of American self-reliance, such as taxes on any substantial capital gains made from house sales. Others are simply opportunist, such as a tax on tanning salons.
...Swingeing taxes that fall disproportionately on wealth-creators and entrepreneurs will not be all that stalls an economic recovery. So too will a failing national infrastructure whose state of disrepair is beyond pork-barrel handouts from Washington to local communities, but requires a big federal programme – and big federal money. Roads, rail and airports all cry out for investment and improvement. But as long as money is thrown at failing industries – such as in the car industry bail-out that helped Mr Obama win Ohio and Michigan this week – the administration cannot afford to take big strategic decisions such as these....
...And as America subsides into a welfarist, subsidy culture, so will its paranoia about China – already running at near-hysterical levels in some manufacturing regions – grow. America increasingly fears China both as an economic and a military titan – the two components of being a superpower.
Defence cuts in America are inevitable once the borrowing binge brings serious damage to the economy – as it will by mid-term, if not before – and that will increase the nation’s sense of vulnerability towards the Chinese.
And America’s intractable unemployment problem – it was 8 per cent when President Obama assumed office and is 7.9 per cent now – is increasingly perceived as the result of a highly disciplined and well-trained workforce in China that systematically undercuts over-regulated American business....
...Obama’s supporters claim the worst is over, and the best is yet to come. Such clichés patronise not merely the American public who, by re-electing him, have chosen the soft option rather than a confrontation with economic reality. They also patronise a substantial part of the developed world that, even if it no longer looks to America for political leadership, relies for its standard of living on the US being economically strong.
On the evidence of the past four years, notably Mr Obama’s record of serial economic incompetence, the next four are going to be exceptionally trying – and, sadly, not just for Americans.
