If the Obamanistas say our economy is roaring back, then how come the Fed has to continually pump up the currency and stock market with $1Trillion/year?
Last Wednesday the financial markets poised on the brink, awaiting an announcement from Federal Reserve Chairman Ben Bernanke as to whether the $85 billion/month Quantitative Easing (QE) program would continue with no changes. The announcement came, the stock markets roared, and records were set for all-time highs on both the Dow and the S&P.
In June Bernanke suggested the economy was strong enough that the future might allow a gradual tapering off of QE. The ensuing market stampede was one of the worst market days of the year, and the doubts created have caused a market skittishness that persists to this day.
Quantitative Easing is economic heroin
Quantitative Easing has been characterized variously as an emergency stop-gap, as a short-term boost to the economy, as monetizing the debt, as managing monetary policy, as permanent open market operations, as nothing-to-see please-move-along. Call it what you will. It is stock market heroin. It has artificially propped up the stock market now for 5 years, giving the Obamanistas another piece of fake evidence to support their ridiculous claims of having heroically saved us from the recession, and laid the foundation for a booming, healthy economy.
Hey Jim, doesn’t he look good?
Bob, he’s on a respirator.
Yeah. But he sure is breathing good, don’t ya think?
Bob. He’s. On. Life. Support!
I know, Jim. But he sure looks like he’s doing good, don’t he?
Everybody with a brain knows the economy is a wretched mess
Everybody with a brain knows that America remains mired in an economic slump that began in 2007. Everybody knows that the announced unemployment rate of 7.3% (which is wretchedly awful to begin with for an administration 5 years into its reign) is a complete fraud, made possible because of the loss of 9 million Americans from the workplace. The actual unemployment number is about 11%, which is bad enough that a president would rightfully be shamed out of office, and hooted down every time he makes a speech in which he extolls his own economic virtues and his claimed love for the Middle Class.
Everybody with a brain knows that the explosion of numbers of people on food stamps, on various welfare assistance programs, and on so-called Disability, is a very unhealthy thing for the long term, and pretty crappy for the short term too.
Everybody with a brain knows that ObamaCare, aka The Atrocious Care Act, aka, government-controlled health industry, has already caused skyrocketing health care and health insurance costs, will only get worse, and on top of that has caused employers to put many thousands of employees into part-time status.
Everybody with a brain knows.
But hey, the stock market is rocking!
Quantitative easing has effects of keeping interest rates artificially low while magically keeping the value of the dollar from sinking, and artificially propping up overall stock market values. The short-term effects are complex. What they are really good at is giving the outward appearance that AllIsWell™ And so, while virtually every sign of economic health points precipitously downward, the Obamanistas can make outlandish claims like these while enjoying cover from the LeftMedia:
- We’ve cleared away the rubble from the financial crisis and we’ve begun to lay a new foundation for economic growth and prosperity.
- We’ve continued to focus on my number one priority [ed – you have got to be kidding me]since the day I took office, making sure we recover from the worst economic crisis of our lifetimes, and rebuilding our economy so it works for everybody who’s willing to work hard.
- We put people to work, repairing roads and bridges, to keep teachers in our classrooms, our first responders on the streets. We helped responsible homeowners modify their mortgages so that more of them could keep their homes. We helped jump-start the flow of credit to help more small businesses keep their doors open. We saved the American auto industry.
sidebar: these above are direct quotes from the extraordinarily hateful and partisan speech made by President Jackass this Tuesday while 4 miles away the Washington Navy Yard was still locked down as authorities searched for potential additional shooters.
Heroin is not the same as a good diet
The Reagan economic boom (and stock market boom) was not created by parlor tricks and fancy Fed moves. It was fueled by the free market, unencumbered by high taxes and high regulations. It was fueled by America. Job creation was not a policy: it happened because businesses were prospering and needed more employees to prosper even more. The stock market was not propped up by the fed. It grew because Americans saw that investing money in the stocks of growing companies was financially smart.
America, when left alone, can work and grow its way to prosperity, if only the government will just get the heck out of the way. But try telling that to the Left in general, and to the Obamanistas in particular.
The long-term effects of QE are far from good. There are negative short-term consequences as well. Furthermore, weaning America (and the world’s markets) off of it involves severe pain. Additionally, it simply cannot go on forever. But hey, while the Obamanistas dismantle our freedoms, our world standing, and our economy, at least they can say – hey, look at that stock market? Healthy economy!
Or as they like to say about their other lies….TheScienceIsSettled™
Sign up to get alerts from Joe!