The Obama administration has just made certain that there will be minimal foreign or even domestic investment in the United States. Their shakedown and blackmail of BP has major corporate investors looking elsewhere for expansion and exploration. No company answerable to their shareholders or investors will risk capital in a country which has brutally abandoned the rule of law.My company is headquartered in Switzerland and in recent conversations with business executives and clients overseas, they have told me that this and many of this governments actions has completely chilled their enthusiasm to invest in the United States.The same applies to domestic U.S. companies, why would they expand within the country or even continue to do business here? They will not.This lack of faith and confidence will not be easily overcome and will exacerbate and make permanent a high unemployment rate and a lower standard of living. This is yet another step in making certain another recession in just over the horizon.
The total incompetence in Washington-unless of course they are in fact a super villain like Moriarty hell bent on the economic destruction of the country–is fully on display. We have people taking profits in 2010 without hiring, giving the impression of a recovery when in fact they are simply storing their nuts for the long winter ahead. (or packing them up to take them elsewhere). We have corporate socialism run rampant as bad companies become worse ones, things that don’t work get funded, and things that worked are regulated into submission. Things actually needing regulation like Fannie and Freddie are left to run wild. And then we have this priceless observation by Steve McCann over at American Thinker who presents a global reality which liberals will deny right up until they are consumed by the reality of it.
And he is absolutely correct. No one is going to spend money here or do business here, unless they are on the receiving end of massive tax incentives. And even then they should expect at any moment to be frog marched into the Oval office and worked over like an under performing pimp by his mob boss every time the Prez needs a photo op, a new slush fund, or fresh fuel for the latest grievance narrative.
There are plenty of other places to do business in the world. And find them they will.
Note: Skip has a nice related post here
Cross Posted from NH Insider