Obama: Costly Stimulus Needed



CHICAGO (Reuters) - President-elect Barack Obama promised on Monday to jolt the faltering U.S. economy with a costly stimulus package next year and introduced the team that will help him navigate the global financial crisis.

Obama, who warned again that the economy would likely get worse before it got better, declined to put a price tag on the two-year stimulus proposal which other Democrats have estimated at hundreds of billions of dollars.

The scope of the economic crisis has widened in the 20 days since Obama's White House win. Auto companies warned they were short on cash, unemployment numbers rose and the government injected $20 billion into Citigroup.

"These extraordinary stresses on our financial system require extraordinary policy responses," Obama said, adding his administration would honor public commitments made President George W. Bush's team to address this crisis.

Separately, the president-elect indicated he had not decided whether to roll Bush's 2001 tax cuts for the wealthy early or allow them to expire at the end of 2010 as scheduled.

Obama said his team was already working on the details of a package to save or create 2.5 million jobs and urged the next Congress to act on it immediately in early January.

"We have to make sure that the stimulus is significant enough that it really gives a jolt to the economy," he said, describing its price only as costly.

"I want to see it enacted right away. It is going to be of a size and scope that is necessary to get this economy back on track."

Obama had harsh words for the struggling U.S. auto industry, acknowledging he did not want the sector to fail but criticizing company executives for failing to present a clear recovery plan when they testified before Congress last week.

Obama, who takes over from Bush on January 20, confirmed his economic team at the news conference.

Timothy Geithner, 47, president of the New York Federal Reserve Bank, will become Treasury secretary, and Lawrence Summers, 53, a former Treasury secretary under President Bill Clinton, will be director of the National Economic Council.

They did not speak at the event, which Vice President-elect Joe Biden also attended.

U.S. stocks rallied late on Friday after news leaks about Geithner's appointment.

Stocks pared gains during Obama's remarks on disappointment over his refusal to specify a figure but then rallied strongly on the back of Washington's move to support Citigroup and on general happiness with Obama's new team.

"People are confident in what (Geithner) can do, he's more market friendly, or he's perceived that way," said Neil Massa, senior trader at MFC Global Investment Management in Boston. "That's helping the overall tone of the market."


DEFICITS, SACRIFICE, AUTOMAKERS

Obama said the country would see a substantial budget deficit next year, which he described as "bigger than we've seen in a very long time."

"American taxpayers are understandably concerned, if we already have a big deficit, and now we're added an additional stimulus, how are we going to pay for all that?" he said.

"The right answer is that we have to first focus on getting the economy back on track."

Obama said he would discuss steps toward a "sustainable and responsible budget scenario" at a news conference on Tuesday at which he is expected to announce further members of his economic team.

"We'll have to scour our federal budget, line by line, and make meaningful cuts and sacrifices, as well, something I'll be discussing further tomorrow," he said.

Obama supports a bailout for Detroit automakers but said he was disappointed that the chief executives for General Motors Inc., Ford Motor Co., and Chrysler LLC did not present a concrete plan in their testimony before Congress.

"I think Congress did the right thing, which is to say, 'You guys need to come up with a plan and come back before you are going to get any taxpayer money,'" he said.

Obama has kept a low public profile since his November 4 victory over Republican John McCain, remaining in Chicago to pick his Cabinet but not formally announcing any of his choices. Geithner was the first official Cabinet announcement.

Obama also named University of California, Berkeley, economics professor Christina Romer to head his Council of Economic Advisors and Melody Barnes to head his Domestic Policy Council. Barnes, a former chief counsel on the Senate Judiciary Committee, was a policy advisor to Obama's presidential campaign.

Summers is also a possible successor to Federal Reserve Chairman Ben Bernanke, whose term ends in January 2010.

In Washington, Bush said the government stood ready to help the banking system as it did with Sunday's Citigroup deal.

Bush, speaking after a meeting with Treasury Secretary Henry Paulson, said he had also spoken with Obama about the Citigroup rescue and promised to inform the incoming president and his economic team of any future major decisions.

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On the "Glenn Beck Radio Program," Glenn explained why he wouldn't be surprised to see our supply chain collapse and empty shelves in America in the near future. Shortages are already wrecking our economy, China (where many of our goods are still made) is facing an energy shortage, and the Biden administration sure seems to be doing everything it can to make things worse.

Glenn noted a serious warning from American CEO Mike Beckham: "There's a major storm brewing in the supply chain," Beckham wrote on Twitter.

Thanks to China's centrally planned system, electricity shortages are causing huge delays in product manufacturing. In fact, some items are facing a 33 percent cut in production. "It could dramatically impact every [American's] life next year. But almost no one knows about it yet," Beckham warned.

Glenn went on to explain exactly what this means for you — and what you can do to prepare.

Watch the video clip below to hear Glenn break it down:


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Every decision made by President Joe Biden has ended in "disaster," Bill O'Reilly told Glenn Beck.

O'Reilly joined the radio program to explain why he thinks there's only one "mechanism" Americans can use stop the Biden administration's mess.

"Give me one thing that [Biden] has done, just one, that's improved this nation. Everything that he has been involved with is a disaster. Everything from the COVID mandates, to the energy policies, to the economic policies, to the inflation, to Afghanistan, to the collapsing southern border, to the social woke business, to the denial of due process. Right across-the-board, there isn't anything this man has done, or stood for, that's improved America," O'Reilly said.

"But there is no mechanism to do anything about it until a year from this November: the midterm elections. That's the only mechanism that we have, under the Constitution. We elected this guy and he's there for four years. You neutralize him next November [2022], with the Republicans taking back the House and Senate, then he's done. [He] can't do anymore damage because you've got him in a hole. And he's not going to be proactive with executive orders. He's just going to stay there in his jammies for two more years. OK? So that's the only mechanism."

O'Reilly also tore into the corporate media for using its power to defend Gen. Mark Milley after news of his China calls broke. Is there any deterrence in American society anymore to keep our leaders and media in check?

"What does this say to the United States of America when you have two of the most powerful information agencies in the world — NBC, Comcast, and AT&T, CNN — actively deceiving you?" O'Reilly said. "They know what they're doing. And yet there is absolutely no way for anyone to hold them accountable other than not watching them, which has, of course, happened. You know they have no audience. But just the corruption level of the information flow to the American people is at an all-time high. We have never had a worse media in the history of this republic."

Watch the clip below to hear O'Reilly break it all down:

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Twitter is full of fake communists. Privileged teenagers and 20-somethings who tweet about Karl Marx from their iPhone, safe inside their parents' house.

A recent example of this is the "What is your job on the Leftist commune?" meme. It began as a tweet from some anonymous Twitter Marxist, asking "What is your job on the Leftist commune?"

She continued, "I'm gonna be leading discussion on theory some days, making clothes from scraps other days, and making lattes whenever needed."

The tweet got thousands of likes, retweets, and comments. Things like, "Bringing everyone water. Pouring tea and hot cocoa for folx in the reading alcoves. Checking in and doing a pause-to-breath with folx."

By the way, "folks" is spelled with an "x" for some reason.

Other commune occupations included "proofreading pamphlets," singing, archery, cooking, crotchet, "guiding embodiment practices," tarot card reading, "identity politic lawyering." Therapist, librarian, prostitute, and "puppy kindergarten teacher."

They're basically parroting Marx, whose communist society sounds like Woodstock or Burning Man.

They're basically parroting Marx, whose communist society sounds like Woodstock or Burning Man.

A magical place where "there are no painters but at most people who engage in painting among other things," which allows "everyone sufficient free time to take part in the general affairs of society — theoretical as well as practical," so that "there are no politicians but at most people who engage in politics among other activities."

Don't you know that communism is all about leisure and good vibes? A playground full of puppies and lattes.

Marx refers to "idle time" as a time for higher activity. He calls it "time for the full development of the individual."

Me Time. A life of spa days.

Generation Z is the first digital generation. The first generation to be born inside the internet. So it's no surprise that they have fallen for this kind of Marxist nonsense. If someone convinces you that Marxism will free you from work, of course you'd want it.

Now they're quitting their jobs in droves. The media is calling it "The Great Resignation," but really it's just a new version of Marx's anti-work movement.

Gen Z are incredibly progressive. And they expect the government to be involved. Decades of Marxist activism have finally convinced a generation that the point of work, the point of life, the point of government, is activism.

Pew Research Center found that seven in ten "members of Gen Z are more likely than older generations to look to government to solve problems, rather than businesses and individuals."

Seven in ten of Gen Z believe that the government should do more to solve problems. A majority of them are not proud of America, a majority of them hold negative views of capitalism.

They believe Marx when he says that Capitalism is only good for producing its own grave-diggers. We know that this is actually a description of communism. Actually, communism is much worse. Because it always results in mass graves.

They haven't realized that that the world that Marx foresaw is long gone. It failed. Repeatedly.

They don't realize that, even on the page, Marxism doesn't work. Because ultimately the greatest flaw of Marxism is that it forces us to choose between productive slavery and unproductive freedom. Either way, with Marxism we can never be free.

"The Great Resignation" is ultimately a crisis of freedom, identity, and exhaustion. It is, as noted in a recent Gallup report, an expression of great discontent. Gen Z feels like they have nothing to lose and nothing to gain.

But in America, there's always something to lose and gain.

But in America, there's always something to lose and gain. They just need to have a little patience.

For the most part, Americans adhere to the libertarian maxim, "As long as you're not hurting anyone…." It's our undeniable belief in the goodness of the people around us. If you've traveled out of the States much, you know this to be true. There's a spirit inherent to America, and it is overwhelmingly good in nature.

Marx's utopia would ruin us. It would make us as lazy as Marx. A man who lived off other people his entire life. A man who had no loyalty to any nation because no nation wanted him. He was stateless. Do you realize how awful a person has to be for them to be stateless?

Maybe Gen Z just needs to see America at its finest.

Marx's utopia would quickly become disgusting. It would leave us feeling empty. Hopefully, they realize this before it's too late. For their own sake. Because, if America ever actually fell to communism, they would be the first ones against the wall.

When the government plans to spend $3.5 trillion that it doesn't have on a loose definition of "infrastructure," it's a good idea to know what's actually in it.

On the radio program, Glenn Beck revealed some of the expenditures Democrats hid in the bill, like a 10-fold increase in fines for employers who don't comply with the government's COVID-19 mandates, "equitable" bankroll for Biden's Build Back Better agenda, and "climate justice" funding.

"Let me tell you what's in our infrastructure bill, the $3.5 trillion bill," Glenn began. "Nancy Pelosi quietly tucked an enforcement mechanism into the $3.5 trillion reconciliation bill, passed it down to the budget committee, and sent it to the House floor. It's something you should know about, on page 168. I know, why read it? It's 2,465 pages."

Glenn pointed out the huge fees for certain businesses that refuse to comply with the Biden administration's proposed vaccine mandates. The fees could be as much as $700,000.

"Up to $700,000 ... that will kill all companies that are noncompliant. Kill them. That's 80 million of us who work in companies that are going to be fined in that way, if they don't bow the knee to the king," he said.

Glenn and Stu Burguiere went on to discuss more Democrat "wish list" items hidden inside this reconciliation bill, such as establishing "business incubators" who are authorized to disperse tens of billions of dollars to startup businesses in underserved areas, including the formerly incarcerated, and exclusive to businesses less that five years in operation or in "the planning stages."

"These sorts of businesses are the most risky place to put your money. Well, that matters when it's your money. But if it's not your money, who cares how risky it is. It's our [taxpayers] money so they don't care at all," Stu noted.

"Well, there's also $5 billion for climate justice block grants to pay for community organizations for, among other things, facilitating engagement of disadvantaged communities in state and federal processes," Glenn read. "Wait a minute. 'Facilitating engagement of disadvantaged communities in state and federal processes'? Organizing votes — that's what it sounds like."

"This is essentially all of us funding the fever dream of Barack Obama," Stu said.

Watch the video clip below for more details:

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