Posted by
Billy on Thursday, June 02, 2011 1:37:49 PM
On a recent visit to London I was struck by how much faith many British
politicians, journalists and political advisers have in Barack Obama being
re-elected in 2012. In the aftermath of the hugely successful Special Forces
operation that took out Osama Bin Laden and a modest spike in the polls for the
president, the conventional wisdom among political elites in Britain is
overwhelmingly that Obama will win another four years in the Oval Office. Add to
this a widespread perception of continuing disarray in the Republican race, as
well as a State Visit to London that had the chattering classes worshipping at
the feet of the US president, and you can easily see why Obama’s prospects look
a lot rosier from across the Atlantic.
But back in the United States, the reality looks a lot different. Many
political leaders in Britain fail to understand the degree to which the American
people are deeply unhappy with their president’s poor handling of the economy.
Nor have they grasped the epic scale of the defeat suffered by the president in
the November mid-terms, and the emphatic rejection by a clear majority of
Americans of the Big Government Obama agenda.
Just seven months ago, the United States was swept by a conservative
revolution that fundamentally transformed the political landscape on Capitol
Hill, and gravely weakened the ability of the president to pass legislation.
This revolution is not in retreat but gaining ground, led by charismatic figures
such as Paul Ryan, the Reaganite chairman of the House Budget Committee,
entrusted with reining in out of control government spending. And as a Gallup poll showed, America is
unquestionably a conservative country ideologically, but one that is ironically
led by the most left-wing president in the nation’s history.
Ultimately, the 2012 presidential election will be decided by the state of
the economy, and new data released this week makes grim reading for the White
House. In fact you cannot watch a US financial news network at the moment,
from Bloomberg to CNBC to Fox Business, without a
great deal of pessimism about the dire condition of the world’s biggest economy.
66 percent of Americans now worry the federal
government will run out of money in the face of towering public debts.
To say this has been an extremely bad week for the Obama administration on
the economic front would be a serious understatement. As The Wall Street Journal reported on
Wednesday, home prices in the United States have sunk to their lowest levels
since 2002, falling 4.2 percent in the first quarter of 2011. At the same time,
employment growth is stalling, with only 38,000
Americans added to the workforce in May, the smallest increase since September.
This compares with 179,000 jobs added in April. There has also been a steep slowdown in the manufacturing sector, and a
downturn in the stock market on the back of weak economic news.
Bill Clinton’s labour secretary Robert Reich summed up the grim mood in a
hard-hitting op-ed in The Financial Times, which took aim at both
the administration and Congress:
The US economy was supposed to be in bloom by late spring, but it is hardly
growing at all. Expectations for second-quarter growth are not much better than
the measly 1.8 per cent annualised rate of the first quarter. That is not nearly
fast enough to reduce America’s ferociously high level of unemployment…
Meanwhile, housing prices continue to fall. They are now 33 per cent below their
2006 peak. That is a bigger drop than recorded in the Great Depression. Homes
are the largest single asset of the American middle class, so as housing prices
drop many Americans feel poorer. All of this is contributing to a general
gloominess. Not surprisingly, consumer confidence is also down. (PAPER:
Why Obama may be heading for electoral disaster in 2012)
Unsurprisingly, the polls are again looking problematic for the president.
The latest Rasmussen Presidential Tracking Poll shows
just 25 percent of Americans strongly approving of Obama’s performance, with 36
percent strongly disapproving.
(Billy's Thoughts>>> We never know how an election will go but the truth is many of us are unhappy with our President now if the GOP will give us somebody who will stand for the values that made America great.)