April 28, 2011, Fairfax, VA—Americans for Limited Government President Bill Wilson today issued the following statement on the reported 1.8 percent growth in the Gross Domestic Product (GDP) by the Bureau of Economic Analysis:
"Once again, the U.S. economy is slowing down, only growing at 1.8 percent in the first quarter of 2011. The reason is because of inflation: higher prices, particularly for food and energy, coupled with persistently high unemployment, crashing housing prices and a dramatic increase in producer prices. What we are witnessing is stagflation ala the 1970's.
"Barack Obama has concocted a recipe for disaster in the U.S. economy not seen since Jimmy Carter was in office. Gold is more than $1,525 an ounce, oil more than $110 a barrel, and gasoline nearly $4 a gallon. The Producer Price Index has soared 5.8 percent in the past year as the cost of doing business soars, and consumer prices are up 2.7 percent. By next year, 10 percent producer inflation and 5 percent for consumers are very realistic possibilities.
"The reasons for our sorry state are simple enough. Too much money printing by the Federal Reserve, a 188 percent increase in its balance sheet by $1.78 trillion to $2.73 trillion since July 2008, is causing the inflation. Too much government spending and borrowing, with a $1.645 trillion budget deficit this year alone, is squeezing investment capital away from real businesses to government debt service and explains the lack of job creation.
"It's going to take strong leadership to deal with these swirling clouds, and sadly, Barack Obama and Ben Bernanke appear as helpless as lambs to wolves. It's time for a real change."
"Double-Dip in Housing, Rising Inflation, and Soaring Debt Disprove 'Stimulus,' Threaten Ship of State," ALG Senior Editor Robert Romano, April 27th, 2011 at http://blog.getliberty.org/default.asp?Display=3281
"Obama's Pain at the Pump," ALG Senior Editor Robert Romano, April 25th, 2011 at http://blog.getliberty.org/default.asp?Display=3273 .