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CNSNews.com Editor-In-Chief Terry Jeffrey discusses whether the president can change the current economic course of the country.
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Years have been the -- cost period of economic growth since World War II.
But in his pre Super Bowl interview President Obama said his policies will still slow up economic growth this year.
The latest GDP number as you know shows the economy is actually contracting.
Joining us now is Terry Jeffrey he's the editor in chief -- Dot com all right Terry you brought -- the news that the last eight years with a world since 1940 years ago we got back.
-- -- -- -- Where all we now aware all we going bearing in mind outlasted GDP report of what the president says is going to be growth this year tell us it's.
-- I think the biggest shadow hanging -- economic growth and employment United States and this year is succumbing implementation of obamacare.
We are now eleven months away from when this loss that's be fully implemented.
The IRS and HHS are still issuing regulations people running -- -- But the final loss actually gonna force them to do but the biggest single thing in obamacare I believe.
Is a mandate that all employers have more than fifty full time employees must provide them with health insurance.
That's like a brick wall.
To regret the small business if your guy has 45 people working for you again -- -- -- shop and -- -- for people under obamacare.
Maybe not.
Okay it's a big you say is V biggest drag on our economy as we go towards the future.
-- it is Obama look at a big enough drag to push -- into a recession.
Well you know I think I think -- you know.
The -- National Bureau of Economic Research times recession since when economic growth starts to decline rather than increase in the recession goes down to the trough.
Well you know we just saw the fourth quarter economic growth -- a little bit.
So I think -- -- question is this just a blip in the red on a very very weak expansion or.
Have we already started to recession I don't think we know at this.
The budget what what will be your judgment -- -- that we don't actually -- I understand that apple wants your judgment if you go to Obama cannot come and action.
-- -- they raise taxes the president wants to raise taxes some mall we may have a sequestration big spending cut come march the from us.
-- -- in your judgment all we likely headed to recession.
I will murders happened some time but I think it's very possible we are in when especially when you look at.
A continual.
We're getting a record number of people who aren't in the labor force which is actually depressing the unemployment numbers.
Which are still high so unfortunately I think it's possible or already in recession -- that -- given the weak economic growth congress has been very careful.
About what they -- gone forward dealing with -- -- -- Fiscal issues so explain it to me Terry why is the stock market rallying I've got the Dow up may be cool points this morning at thirteen 960 fall what what you -- -- explain this.
Well.
I I can't explain it of course that you know what's more important is a long term trend in the stock market in the long term trend in the economy.
Rather than the momentary trend you know we have some some theoretically good things at the beginning a year and that's a sure they're good things in the long -- That the president congress made a little bit of an accommodation.
They're trying to -- right now.
But eventually we have a crisis is congress gonna let Obama go forward with the full obamacare that was -- 2010.
I think gonna give him another -- point for -- to 2.4 trillion dollars in debt.
To run up over the next couple of years how much leverage you are the Republicans going to exert and the administration.
Give it under the constitution controlled house they do control spending and borrowing.
I think the discipline president or they can accommodate the president I think -- -- huge question for the.
But that but nothing's gonna stop Ben Bernanke from keeping up it is -- -- the printing presses and in May be back now it was because back -- -- -- -- recession.
Now I don't think so yeah.
-- -- Paul -- and the other day saying that he thought that instrument was exhausted.
In terms of stimulating economic credit I think we do have a problem that where you now have the Federal Reserve.
Being the single largest owner of US government debt.
We're running up all this debt in the Fed is buying a big -- Chinese are buying a big attack -- Eventually we're gonna run out of a market for US debt that eventually that is gonna happen eventually interest rates are gonna go up.
Right now than it did that that the treasury is paying very low interest rates on a historical basis while barring historically and president announced money.
Time Terry Jeffrey CNS thanks for joining us we will see you again thanks a lot.
