Obama's nonsensical use of the Fed

World Net Daily ^ | 11/12/2010 | michael master

[bronkburnett]

Stock prices are increasing because bond yields, treasury yields and interest rates are falling ... not because of a better economy. What will happen to stock prices, pension funds, 401k accounts when interest rates increase again? Look at Japan and Europe as the examples. Both are struggling, increased money supply has not helped, and so now both are calling for increases to their birth rates.

Because this administration will not step up to this problem of decreased demand from low birth rates, it is succumbing to the pressure of Wall Street to artificially inflate stock prices. The Fed is flooding the financial markets with additional capital to decrease interest rates, which then drives up stock prices. The Fed is causing even bigger problems for the future with its current manipulations. The only ones who win are on Wall Street – and they were big donors to Obama in 2008.....

Obama wants to take money out of the economy so he can spend it on what he wants, and then he wants the Fed to replace it with money that will cause interest rates to decrease.

That is nonsense. The lack of business expertise in this administration is frightening.

To add more nonsense to the equation, Obama thinks that he can replace the decreased American consumption with more export business. Obama claimed that his trip to Asia would open up new markets for American goods, goods that cost three times more to make in the U.S. than what they cost to make in Asia. The only goods America makes that are not available at substantially cheaper prices in Asia are military weapons. So is Obama selling military weapons to Asia?

[bronkburnett]

Did Mitch McConnel actually say that he was opposed to ending all ear marks? if so, the Republicans are already decommiting on their promises. They will pay a price in 2 years if they don't stop this adminstration and all of its corrupt activities.

Oh what is going to happen? Who is going to stop this administration?

[carton253]

Earmarks serve for both good and bad. To do away with earmarks is not the answer. To do away with "pork," McConnell is in favor of that. But earmarks are also used to allocate funds for legitimate purposes.

Sometimes, it is helpful to have the whole story and not just half.

[bronkburnett]

you make a good point.

but the harm from earmarks far outweigh the benefits ... especially how they make McConnell look.

the biggest problem of earmarks is that the process removes visibility of them. they defeat the process of vetting by our elected officials who are supposed to be representing us.

if a Congressman wants something for some special need, then why not present it to the Congress and ask for a vote? earmarks eliminate that process. they look dirty. they look like more back room deals. And they look like corruption. if McConnell does not understand this, that scares me about him. if McConnell does understand this and yet he will not ban earmarks, then his actions scare me even more. we cannot let him take down conservatives with him. a corrupt Republican congress got Obama elected. we cannot let it happen again. now let's move to a bigger item ... the corruption in Obama's administration, the lack of business sense, and the deficit that is increasing because of how he is spending money to reward his donors ... like the Fed $600 Billion.

[Hotlanta Mike]

Gonna create another bubble and allow his cohorts in crime cash in near the peak.

[carton253]

I think it's important not to go on "looks" and "appearances."

I think it is pretty silly to post that "if McConell doesn't understand this..." He knows. That is why he was specific in differentiating between the two.

I think I would wait to see what happens in the new Congress rather than project "failure" on McConnell.

[bronkburnett]

“Gonna create another bubble and allow his cohorts in crime cash in near the peak.”

that is exactly what they are doing. Clinton did the same thing with the Dotcom bubble.

this is the most corrupt government in the history of the USA.

[bronkburnett]

McConnell is the one who is against banning earmarks. he is opening the door to more corruption if he does not stop them.

the tea party movement put the Republicans over the top in this 2010 election. and if the Republicans do not react accordingly, those same tea party people will abandon them in 2012.

Does McConnell understand this? if yes, then he looks bad. if no, then he also looks bad. McConnell is making a mistake either way.

[WorldviewDad]

What jumped out to me from the article was the statement about decreased demand because of a falling birthrate. As a culture we will have to eventually deal with the fact of a falling birthrate and how we are going to handle it. Fewer kids mean fewer kids clothes needed, fewer toys needed, eventually fewer cars, homes, appliances, etc...during the transition we will have more workers available then will be needed unless things change. I am actually seeing this first hand...the school district I live in just raised their tax rate by double digits because they have FEWER kids to teach...can't fire any of the teachers...they would not be able to find another job.

To see a good explanation of this, I would advice seeing “Demographic Winter” and “Demographic Bomb”. The first documentary actually predicted the economic down turn in the U.S. based upon birthrate declines.