Posts Tagged ‘Quantitative easing 3’

Pump, pump, pump it up!
Pump that bullshit economy up!
Keep, Keep, Keep it afloat!
Keep that false economy afloat!
Ben Bern-yank-me, the chairman of the Federal Reserve, reminds me of a cheerleader chanting this cheer as he relentlessly pushes the print button on the printing press. Please don’t confuse the wild look in his beady eyes with anything resembling a spark of monetary responsibility. This guy is nothing but a puppet on a string for the Obama administration.
The latest announcement from The Fed is nothing more than a propping mechanism intended to temporarily keep the economy from collapsing and aid Barack Obama with his re-election efforts. From the beginning, this administration has been thick as thieves with the banksters. The fascist back scratching favors that Obama did for them are being returned with repeated rounds of “quantitative easing” from the central bank. This disgraceful disregard for the economic future of our great nation is, in my opinion, bordering on treason.
Here is a little analogy that I came up with to describe the state of the economy and what QE can do for it:
The stew (economy) is on the stove. The pot is there (able workers with a desire to work), the stove top is there (factories and manufacturing facilities), the flame is lit and burning.
Unfortunately, the stew has been scorched because of poor kitchen management (systemic issues with Congress and the office of the President). The meat (jobs) and potatoes (profits) are shriveled and burned beyond recognition. But don’t worry the sous chef (Bernanke) has a gallon of milk (QE) he is going to pour in and create “liquidity”. All of this milk should magically cure the charred meat and shriveled potatoes!
No matter how much milk he pours into that pot, there will not be an edible stew. The basis of that stew is ruined. The pot needs to be scraped clean and new meat and potatoes need to be added. The recipe for stew does not need to be changed, stew has been delicious and essentially the same for a few thousand years. What needs to change are the kitchen help (Congress) who keep walking by and taking a spoon full of the broth out for tasting, never intending on putting more broth in which results in the stew scorching. The chef (the President) thinks he is being clever and can fool the customers. After the stew was scorched, the chef walked into the restaurant and announced to the patrons, “we are proud to introduce our new improved stew” and talked of its deliciousness as the patrons scrunched their noses and spit the stew back into the bowl. The chef ordered his kitchen help to distribute free bread (health insurance, low interest loans, welfare) to the customers and convince them that the stew was actually appetizing now with the bread. The stew is a poor product and the bread will only pacify the paying customers for so long. The chef knows that his stalling tactic will not solve the problems that his kitchen has, but it has bought him a little more time.
It is easy to imagine that a restaurant with this type of kitchen management would go out of business very quickly. So why is it so difficult for people to understand this same logic applies to government?
With every round of QE we take one more step toward an irreversible fiscal disaster brought on by unchecked expenditures by the Federal Government, crushing debt, and inflation caused by reckless monetary policy. The measures being taken by Obama and his administration are temporary measures and are not intended to help a recovery or foster growth, these measures are intended to slow the collapse to a “manageable” speed. Mark my words, if Romney is elected this thing will unravel at record speed as he assumes office….just as it did to Obama when he took office. Obama’s stall tactics have succeeded in keeping the economy from falling apart for 4 years, he will pull the plug on it as he exits. On the flip side, if Obama is re-elected we will begin to hear him call for austerity. It will go over with the entitlement crowd here in the US just as well as it went over with the entitlement crowd in Greece. Obama, who is prone to placating to the welfare warriors, will attempt to jack taxes on the 50% of Americans who still pay them and alienate the small businesses of America even further with heavy taxation, fees, etc.
In my opinion, by 2016 America will be much, much different than it is today, and that will hold true regardless of which one of the two evils gets elected.

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