Why Obama deserves impeachment

Despite the almost daily record notching feats of the US stock indices, things are not going smooth with the US economy. Otherwise Obama wouldn't be facing possible impeachment hearings. The Benghazi and IRS scandals are only the beginning. If those fail to unseat Obama, more will come. Don't think about the US leading the world in the coming years as it itself will be in perpetual crisis mode.

The main failing of Obama is not his failure to manage crisis, though he's certainly lacking in this bit. Instead it's his inability to read the future based on a reading of the money supply movement. Obama should have known that the money supply, that is not the conventional definition by the economists but the total credit in the economy, would be in severe trouble once the sequestration kicked in on 1st March, 2013. And by correlation, so would be his position. All along throughout the Great Recession, itself a misnomer since it actually is a Grand Depression, government spending had been the driver of credit growth. Without it, credit growth would've stumbled, pulling the economy down with it.

It's not that anybody can reverse this trend. Credit will definitely contract, sequestration or not, because the consumption leg of the 4C is floundering. It had been propped up only by the grace of Obama's deficits. Even Mitt Romney, if he had been elected, would've been coming up against similar intractable situations as Obama is now facing. Probably not Benghazi or IRS since those could be blamed on his predecessor but others would in time rise to the surface.

How do we know that federal debt is being constrained given that the Fed Funds Flow statement for Q1 2013 would only appear early next month while that for the current quarter in September 2013? Easy, just look at the budget deficit. This year's deficit has been projected at US$642 billion. That's half a trillion less than last year's.

The Republicans just need a few more Senate seats in the 2014 mid-term elections to give Obama the boot. Or they may succeed earlier provided the total credit in the system declines for a couple of quarters before making their impeachment move. See how powerful is the soulless credit market in determining one's fortunes.