Obama very Bad for Economic Recovery

Forbes magazine editor and former presidential candidate Steve Forbes tells Newsmax that Mitt Romney will win the GOP presidential nomination and defeat President Obama in the November election. But he warns that an Obama victory — perhaps even the anticipation of an Obama win — will lead to a market selloff and another recession.

Forbes is president and CEO of Forbes Inc. He ran for the Republican presidential nomination in 1996 and 2000, urging the adoption of a flat income tax with a single tax rate. He makes frequent appearances on the Fox News Channel.

“I think Romney will win the election against Obama. But if you have a good conservative core in the Senate you’re going to get things on his desk, the president’s desk, that I think are going to be much stronger for the country, much better for the country, than if they weren’t there.

“So this isn’t just about winning a particular race, it’s also about having the cadres, so to speak, who can make positive things happen.”

Fed Chairman Ben Bernanke has warned of a pending fiscal cliff that the nation is approaching. The Bush tax cuts are set to expire on the first day of 2013, and deep spending cuts are also in the works.

Asked if lawmakers in Washington will be able to deal with this “cliff” without causing turmoil in the markets, Forbes responds: “After the November elections, if President-elect Romney makes it clear that he’ll sign temporary legislation on January 20 extending those tax rates for a few months so Congress can make deliberations on a whole new tax bill, I don’t think the markets are going to have much of a hiccup. I think they’ll make the Bush tax rates retroactive to January 1.

“So the key is who wins the election. If Obama happens to win, I think you’ll see a market selloff. I think we’ll be on the way to another recession. And I think the markets, if they anticipate Obama will win — markets don’t wait for a bad thing to happen, they sell off before it happens.”

He was also asked if he believes a Republican White House and GOP Congress would implement a flatter tax code.

“I don’t think you’re going to get a proposal from Mister Romney on the flat tax,” he declares.

“As a matter of fact when I ran 15 years ago, he did ads against the flat tax. But the key thing is if you have the right people in the House and the Senate, the tax bill — and there will be a tax bill or tax bills plural — will be shaped in a way where I think we will get dramatic simplicity.

“We might not get a pure flat tax but we’ll get something pretty close to it, and maybe the flat tax itself. I don’t think Romney is going to resist if he sees there is strong support for genuine tax simplification. I don’t think he wants to meet the fate that the senior George Bush met when he went against the base of the party.

“So the key thing is to have a good base in the Senate, a good base in the House, and then I think we can positively shape the tax legislation.

Commenting on the United States recently surpassing Japan as the nation with the highest corporate tax rate, Forbes says: “It’s part of the reason why the U.S. economy is not doing well, why this recovery is so punk — proportionately probably even worse than from the early ‘30s.

“Normally when you have a big downturn you have a sharp upturn, at least initially. This time we didn’t get a sharp upturn. This year we’re going about 40 miles an hour on a superhighway when we should be doing about 80, and one of the reasons is the uncertainty about taxes and the high tax burden.”

Everything this man has done has been to the detriment of the country. This country needs to get back to the greatness it once had. No president has done so much damage in such a short period of time. Time for a change is NOW. We need not be fooled into thinking he can accomplish anything he said during his first campaign. HE’S ALL TALK.