Administration's policies fail to revive sagging US economy

Despite the White House assessment last week that the Obama foreign policy has brought a new "global tranquility," the headlines would say otherwise.

You would have to search long and hard to find "tranquility" across the world that is being touted by this administration.

So in the midst of this crumbling of peace in so many parts of this world, the President used his Saturday morning weekly radio broadcast to promote his improvements in the economy.

What? This can't be true!

One would think that with war raging in the Middle East and with Eastern Europe in a state of siege that the weekly message would have centered on these hot spots.

But since the President decided to promote his new economy, let's take just a minute to examine his improving economic picture.

What if the feds decided or were forced to reduce or eliminate their monthly $65 billion infusion into the economy that has provided a false floor in our sagging economic forecast?

In the past seven years, real personal income in the United States has actually increased. But a new study out shows that "all of this increase is due to government transfers" ($65 billion monthly) and not from an improvement in the real economy.

"Disposable income per capita is actually lower than it was at the end of 2005," the new study reveals.

And my favorite takeaway from the study: "The U.S. economy has been on life support, graciously provided by Central Planners. However hard they try, they will soon realize that no amount of money printing can cleanse the rot of the U.S. economy."

But here's where it gets real scary.

A full 40 percent of the American population spends more than their income each month. How can this be true? Well that lower 40 percent on the economic ladder gets help in other ways, borrowing, selling assets, assistance from family, etc., according to the study. Although real income is up 8 percent, real expenses for necessities are up 14 percent.

Even simple math indicates this economic position cannot be sustained.

Here's some more boring math.

From 2005 to 2012, the real impact on your pocketbook came from necessities. In that timeframe, rent went up 26 percent, utilities were up 54 percent and food prices were up an astounding 115 percent.

So when the President tells the American people that the economy is improving, your spending tells you otherwise.

When the day arrives - and it will - when the feds discontinue printing this phony money, something drastic and perhaps beyond our imaginations will occur.

One observer asked the obvious question.

"What part of 'currency printing does not equal wealth creation' is so difficult for policy makers to understand?"

But the truly chilling observation is this: "The question is whether we will see an explosion or whether within a generation people will come to accept their lot in life and become nothing more than scavengers."

This administration believes in the impossible when it comes to economic policy. In their skewed view of the world, they actually believe that spending has no limits and tomorrow will never come.

They are wrong on both counts.

There's this funny old - and undoubtedly untrue - legend about the guy who was caught in the middle of a misdeed by his wife.

His famous line is, "Who are you going to believe - me or your tired old eyes...?"

That's this administration's take on the economy.