President Obama, Vice President Biden and Attorney General Holder all made some very hard-hitting statements yesterday.
Obama told Fox news that the United States’ climbing national debt could drag the country into a double-dip recession:
“I think it is important, though, to recognize if we keep on adding to the debt, even in the midst of this recovery, that at some point, people could lose confidence in the U.S. economy in a way that could actually lead to a double-dip recession.”
Obama is finally acknowledging that the enormous debt overhang is a drag on the U.S. economy.
However, just as the administration’s talk of a “strong dollar policy” isn’t credible, I am not sure that Obama’s talk about debt is credible, given that America is still involved in multiple giveaways in favor of too big to fails, two costly wars, and other multi-trillion dollar spending binges.
Biden told Jon Stewart that bailing out the giant banks is:
Socialism for the rich and capitalism for the poor.
I agree, as do Joseph Stiglitz, Nouriel Roubini and Nassim Taleb.
But Biden is still drinking the kool aid:
He defended his administration’s decisions to rescue Wall Street institutions from the brink of failure. “Because if we did not bail them out, we would have been in a position where there was a literal depression, not a recession.”
That’s a myth, Joe.
And Holder announced:
The launch of an interagency Financial Fraud Enforcement Task Force to combat financial crime.
Holder claims that the Task Force will go after both past and future fraud.
Sounds good to me.
But given Holder’s failure to keep his word in other important areas – like discontinuing Bush administration policies of spying on Americans – I’m taking a wait and see approach.