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Barach Obama came to the Presidency with a radical domestic agenda and with little interest, or understanding, of global political matters. While he did assume office at a time of financial crisis, it is important to understand that much of the corrective work had been done by the time he took the oath of office. The TED spread, indicating banks’ ability to lend had narrowed dramatically from where it had been in the fall. The yield on high yield bonds began coming down in November. While we were still in recession, the bottom was only four months away. The patient was still sick, but the crisis was over.
He was elected, he claimed, to institute a liberal program. He had no interest in negotiating with those he had defeated. “I won,” was the way he put it. In the meantime, chief of staff Rahm Emanuel noted that “a crisis is a terrible thing to waste.” An $840 billion stimulus bill was rammed through Congress during the honeymoon period. The Affordable Care Act was passed unilaterally a year later, while Democrats still controlled both chambers. Not one Republican voted for the bill, something that had never before happened with such a consequential piece of legislation. The President didn’t care; he was on a roll.
In terms of his liberal domestic agenda, Mr. Obama never considered what their consequences might mean in the global world. For example, in the energy sector where a combination of horizontal drilling and fracking technologies were changing the role of America in the production of fossil fuels, he chose to go with “green” energy, solar and wind companies. His EPA, catering to deep-pocketed environmentalists, inflicted burdensome regulations, delaying construction of the Keystone XL Pipeline for four years and preventing any drilling on federal lands. We have become the world’s largest producer of natural gas, but that is in spite of Mr. Obama’s policies, not because of them. Had Mr. Obama worked with the industry, instead of against it, we would today have surpassed Russia as the world’s largest exporter of natural gas, and events in Ukraine and Europe might well have unfolded in a way far more pleasant for the West, democracy and the people of Ukraine.