By Bill O'Reilly

As we all know, the U.S. economy is bad and getting worse, not a good thing for President Obama as he approaches three years in office.

Speaking to Chris Wallace on Sunday, the CEO of FedEx, Fred Smith, was very pithy in his analysis of the economy:

(BEGIN VIDEO CLIP)

FRED SMITH, CEO, FEDEX: Our investment levels are significantly below where they have been in the past. So our corporate tax code, our energy policy, our trade policy and the tremendous increase in regulations are all impeding the economy's ability to grow at -- at reasonable levels.

(END VIDEO CLIP)

And Mr. Smith is correct. The private marketplace has lost confidence in the Obama administration's economic policies. It's as simple as that.

Therefore, the Democrats have a huge problem: How can they re-elect Mr. Obama if the economy is so terrible? Speaking on CBS, Maryland Gov. Martin O'Malley, an uber-Democrat, layed out the strategy:

(BEGIN VIDEO CLIP)

GOV. MARTIN O'MALLEY, D-MD.: There are going to be two economic plans that the people of our country will choose from. One that was the failed plan, proven to have failed, under George W. Bush, which brought us not only record deficits but, worse, record job losses in our country. And then you will have the plan that has been advanced by the president, once again renewed with his drive for the American Jobs Act that will create jobs in our -- in our country.

(END VIDEO CLIP)

So Gov. O'Malley is basically saying Mr. Obama will continue to demonize former President Bush while putting forth that more federal spending will create jobs and that the evil Republicans are blocking that job creation.

In reply, Mississippi Gov. Haley Barbour, an uber-Republican, said this:

(BEGIN VIDEO CLIP)

GOV. HALEY BARBOUR, R-MISS.: Martin's amnesia about the fact that Obama had the biggest Democratic majorities in Congress since Lyndon Johnson, they passed everything he wanted, including ramming health care, Obamacare, down the country's throat and now they complain well, gee, we didn't get everything we wanted, those mean Republicans? Bill Clinton never did that. Ronald Reagan never did that.

(END VIDEO CLIP)

So it comes down to this: You, the American voter, will eventually have to make the call between the two strategies.

"Talking Points" does not believe the Democrats are in a strong position because the debt is just too huge and blaming Mr. Bush is just too old. Of course, I could be wrong because there is one other thing in play here. We are becoming a nation of excuse-makers. Younger Americans especially have a tendency to accept excuses for bad behavior and failure no matter how outlandish those excuses are. Our culture has shifted from personal responsibility to, "It's somebody else's fault if I don't do well."

While admitting mistakes is hard, it's necessary if you want to solve problems. So far the Obama administration has not admitted to many mistakes.

So there you have it. The upcoming presidential election will hinge on how much reality Americans are willing to accept.

And that's "The Memo."

Pinheads & Patriots

Denmark is a nice country, but don't go there in February. Even the Vikings head south that time of year to rape and pillage

But now the Danes are extending their nanny state. They have instituted a new tax on food they consider full of fat, like butter, milk, cheese, pizza and some meat. Before the law was passed on Saturday, Danes rushed into the grocery stores buying all that stuff, demonstrating, once again, that the Danish government is pinheaded for trying to manage every aspect of people's lives.

— You can catch Bill O'Reilly's "Talking Points Memo" and "Pinheads & Patriots" weeknights at 8 and 11 p.m. ET on the Fox News Channel and any time on foxnews.com/oreilly. Send your comments to: oreilly@foxnews.com.