The next four years will be difficult and I predict domestic and foreign issues will continue to digress. If the first two weeks since Obama has been reelected is any indication of things to come, we are all facing difficult times ahead.
Europe has officially slid into its second recession of the Obama Presidency. Eurozone unemployment is at 11.1% and the Euro still faces a collapse with Greece, Ireland, Spain, and Portugal debt at massive levels. What is happening in Europe does not bode well for the United States. In the first week after the Obama reelection unemployment filings went up nearly 25% (78 thousand). Why? These layoffs are coming because companies know Obama is set to increase taxes on businesses and they know ObamaCare and its taxes will go into effect in 2014. Personally, I have insight into the semiconductor industry and know that the manufacturing facilities are only half loaded. Semiconductors are used to make all electronic products. Therefore, this is a good indication that the economy is slowing and it is no surprise the semiconductor industry has already announced layoffs.
The situation in the Middle East continues to deteriorate. The Arab spring was a nightmare. Egypt is no longer a reliable ally. Libya is so unstable that all Western countries have removed their embassies. Syria is in a bloody civil war. Israel and Palestinian Hamas are at war. Syria is at war with Turkey. The U.S.-Pakistan relationship is teetering on failure. Afghanistan remains unstable despite Obama’s escalation of the war. Iran is getting closer to a nuclear bomb. And the U.S. has been recently attacked by Egypt (Embassy), Libya (Embassy), and Iran (Drone in neutral airspace). The bottom line is that U.S. – Middle East relations are deteriorating at an alarming pace.
The administration is claiming ignorance (that it was unaware) on the deteriorating security in Libya that led to the embassy attack and subsequent death of 4 Americans. The administration is also claiming ignorance over the fact the CIA chief was compromised and confidential files were removed from his watch. Instead, the administration chose to lie and deceive the American public over what happened in Libya so Obama could win reelection. What’s worse, the media was complicit with this cover up.
The Labor Department reports that people living in poverty spiked to its highest levels in October, 16% (over 50 million Americans). This is good news for Democrats who depend on this electorate who vote liberally because they like the entitlements poverty brings them. However, how long can these handouts last before austerity measures are needed?
Health insurance premiums went up on average by 15% this past year and they have gone up over 40% since ObamaCare was passed. Even though the legislation will not go into law until 2014 companies must prepare for its high cost. The Affordable Care Act is the most deceiving name this law can have.
In the face of the fiscal cliff, Democrats still insist the best way to handle our 16 trillion dollar debt is to raise taxes on the wealthy, avoid cutting spending (except military), and refuse any entitlement reform.