Skip to comments.Obama Is In The Catbird Seat
Posted on 09/15/2012 2:37:03 AM PDT by LD Jackson
On March 2 of this year I posted this: Events May Determine Obama's Fate, an article which outlined several possible events that could tip the coming Presidential election either to Obama or to Romney.
First on my list of events that would favor Obama is "A Well-Timed QE3." Yesterday, Ben Bernanke announced that the Fed would begin buying $85-billion worth of debt every month until further notice beginning today.
This is bad news for America, but good news for the President. Anyone who believes the Fed operates independent of the administration and of politics is a fool. Whether this infusion of new money into the financial system is "well-timed" is yet to be determined. I had predicted a June QE3.
Yesterday, the stock market exploded upward at the news. Expect the administration to announce the economy has rebounded. In the next two months, expect the media to publish many stories about new economic activity in the private sector which will generate new jobs. Expect the CEO's of large corporations to announce new plans for expansion and/or to cancel planned retrenchment activities.
Of course, the timing of this QE3 will prohibit any of this propaganda from being verified by official government statistics. Perhaps that's why it happened now rather than in June.
Another advantage of doing QE3 now is that its primary negative effect -- a surge in price inflation -- will not be noticed by consumers until after the election. The dollar will eventually fall against rival currencies, but rival governments are sure to print their currencies as well, thus mitigating the dollar's fall in value against them. Any action by the Chinese, Russians or others interested in ending the dollar's reign as the world's reserve currency would also occur after the election.
By the way, the only remaining "event" on my list that could benefit the President is "A Well-Timed National Emergency." This event is still possible should QE3 disappoint the President's reelection campaign by not exhibiting the expected effects -- or by exhibiting unexpected adverse effects. The possibilities are endless. War in the Middle East is always on the table. Another financial "crisis" can always be manufactured. And, of course, urban violence of one sort or another may flare up at just the right moment. Coincidentally, ABC News reported today that the "FBI Warns of Violence in America Over Anti-Islamic Movie."
By the way, the events I outlined that could benefit Romney seem unlikely to occur prior to the election. Although economic activity is still stagnant, Obama and the media are effectively papering over the bad news that too many Americans are sick and tired of hearing. There seems no chance in hell that birther issues or Obama's college records will injure him. The truth about Bin Laden's death is trickling out but there are no bombshells. Fast and Furious has been defused. The Solyndra story has no legs.
The bottom line is Obama is perched in the driver's seat -- or should I say the catbird seat -- and Romney can do nothing about it except spit into the wind.
The advantages of incumbency and a sympathetic media cannot be overestimated.
This article was originally posted at Property...Freedom...Peace.
Obama is going to lose, the national crises is one he brought on himself and the Fed’s actions are going to be useless to change the economic situation.
I sincerely hope you are right.
>> Obama is perched, Romney can spit into the wind.
>> QE3 ... will not be noticed by consumers until after the election
Err... prices are jumping now. And why wouldn’t the private sector accelerate the inevitability with the election on the horizon.
You know what? Obama doesn’t know jack-$hit about economics.
It’s his handlers doing all of the manipulation to try and keep the black Mau-Mau on track to remain the face of America’s downfall.
All zero’s good at is running up little flights of stairs and reading the teleprompter.
I really wish I was just kidding.
Of course, another consequence of recent events is that many Americans will see Obama as a weak fool ala Carter and that his admin is disastrous not only domestically but also internationally. Many voters remember Obama saying he would usher in a period of peace, and Islamists around the world would love him and us. They obviously don’t love him and us. I have a difficult time believing current events are going to help Obama. Unless he sends in the cruise missiles ala Reagan. That he won’t do.
Another pundit who sounds authoritative but who really has no claim to authority. But that’s how he makes a living, thinking and writing, then more thinking and writing. Like all of us he has a 50/50 chance of being right, but the rest of us acknowledge uncertainty and decide not to sound like a pompous idiot.
he morons will look at the false highs of the stock market as "proof" that it is working and think that all they need to do is be patient before they get some of the largess. They have no idea of how bad things really are or how much worse Bernanke is making them.
Why did you post this rubbish ?
Like we don’t get enough left being pompous pundit lies peddled to us every day ?
Whonthe hell is this know it all snot ?
Buying $X billion of bonds every month -- especially when these are now including mortgage-backed securities that are likely worthless pieces of paper -- isn't going to "stimulate" anything. The Fed's discount rate has been right around 0% for a long time, so to continue to lend money at 0% isn't going to help at all. When the most obvious impact of "stimulus" is seen at the gas pump ... and not in a good way ... I'm not sure the author is correct in his base assertion here.
It's $40 billion a month. Isn't it?
And average gasoline prices are already over $4.00 per gallon. I think people will notice that.
This is not rubbish. Instead, it is one of my coauthors viewpoint of what might happen to help swing the election towards Obama. Sherman Broder is most certainly not left wing. He isn’t saying this will happen for sure, he is just worried it will play out this way. He hopes he is wrong and so do I.
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