Maggie's Farm

From Dick Morris:

As it becomes clearer that the deficit caused by spending has landed us in a new economic crisis, entirely of Obama’s own making, his popularity and job performance are likely to drop as well.

The old recession — that the public says was caused by Bush — shows signs of winding down. But the new recession and/or inflation — triggered by Obama’s massive deficits — is just now coming upon us.

If Obama refuses to cut back on his spending/stimulus plans (despite convincing evidence that Americans are not spending the money), he has three options:

a) He can raise taxes, which will trigger a deeper recession;

b) He can print money, which will trigger huge inflation;

c) He can pay more interest to borrow money, which will send the economy diving down again.

The blame for these outcomes will fall squarely on Obama’s deficit and spending policies. The fact that Americans are aware of these issues, and already disapprove of Obama’s performance on them, indicates that they will be increasingly receptive to blaming him for the “new” recession.