Q. Why are our president and his Democrat allies not interested in cutting spending and fixing our federal debt problem?
A. They have already solved the debt problem. And most folks should not like their solution.
The Federal Reserve and Ben Bernanke are printing money to buy Treasuries and mortgage backed securities to give Obama and company a temporary exemption from the laws of economics. Democrats can spend as they please and Bernanke will print all of the money needed to do it. This debasing of the currency is called monetization and if it continues the wealth of the nation and the middle class will be destroyed by inflation.
Want redistribution? Wanted or not, it is happening now.
Worried about a federal default on its debt? They are defaulting now.
In December the Fed expanded a fourth round of quantitative easing which began in September. The Fed policy is to each month print $85 billion to buy US debt obligations that no one else will buy. This keeps interest rates low and politically acceptable and it assures that all the debt which the US needs to sell will be bought. The Federal Reserve has been called the buyer of last resort, and now it really is.
This is different than earlier policy because it is open ended and the announced policy will continue until unemployment gets to 6.5 percent or inflation reaches 2.5 percent. ObamaNomics will never get us to the former and we may already have reached the latter, but the Fed will keep printing money anyway. And of course, the unelected and politically “independent” Fed can change its policy whenever it wishes.
This means we no longer really have a debt problem. Obama and Bernanke are monetizing the debt. It is being erased at the rate of $85 billion per month, or $1.020 trillion per year. If this policy continues, our progeny will not have a debt problem.
In the meantime we are now being taxed at a rate of $85 billion per month, or $1.020 trillion per year.
To me it is inexplicable why GOP are not railing about this in public and not doing something to stop it.
You should no longer think of deficit spending as a debt problem. Deficit spending is now a tax.
Every member of Congress that votes for deficit spending is voting to tax. And every member of Congress that votes to increase spending is voting to increase taxes.
If GOP cared, they would not have voted this month to appropriate $60 billion for Hurricane Sandy relief without also making spending offsets elsewhere in the budget. GOP are now nothing more than codependent spendaholics.
There really was no fiscal cliff. It’s a ski jump. We are on it and moving forward. The best time to stop is now. Here is a reference which suggests what might happen otherwise.
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Q. Why are our president and his Democratic allies not interested in cutting spending on the least of these and fixing our federal debt problem created by Bush and his republican allies?
Our President and his democratic allies will not cut spending on the least of these during these hard economic times created by the borrow and spend for all war all the time, tax shift from the rich to the middle class, republicans.
PS, has anyone noticed the main runs calling for spending cuts for the poor are the rich?
No.
Turning the dollar into funny money is a tax on the middle class. Obama and Bernanke have us on a road to destroy the middle class. This is wealth destruction and it will fundamentally change society. When the middle class is destroyed we will all be moochers, but there will be no one left to take from. Obama taking points show that this is what he really wants.
Where are all the jobs republicans promised to create in 2010?
In the senate trash can waiting enactment into law. No GOP laws, no GOP jobs. Besides BHO has created all the jobs we need.
Republicans put two wars on a credit card, raided the surplus to give the rich a tax cut which was really a tax shift from the rich to the middle class, sent manufacturing and high tech jobs overseas, busted the Unions, and drove the country into the ditch like drunk frat boys, and now they have the nerve to call for entitlement spending?
H-Y-P-E-R-I-N-F-L-A-T-I-O-N
Does anyone know if Jimmy Carter and Barrack Obama are acquainted?
Correction should read and they have the nerve to call for cuts to entitlement spending .
At least Jimmy Carter nor Barack Obama sent our troops to war based on dead wrong intelligence to look for WMD that was not there to the tune of 4 billion dollars a month.
How Republicans behaving badly is a free pass for Obama to behave daly is beyond me.
Help me out.
Thought you would ignore that question.
It must be that Democrats do not have any talking points on H-Y-P-E-R-I-N-F-L-A-T-I-O-N
US hyperinflation is a myth. Read all about it.
http://theautomaticearth.com/Finance/us-hyperinflation-is-a-myth.html
I guess it depends on what your definition of behaving badly IS.
That is a worthless response, as always.
What is the ratio of Treasuries to MBS?
The Big 6 still have trillions of bad MBS on their books due to the suspension of mark to market. Bernake is just helping out his mega rich buddies.
What would be the Repubic plan if they had any pull in the fedgov?
A BushII scheme? When the US economy was in the best position in history in 2006, BushII was setting record deficits each year. What possible reason could there be to believe they would do anything differently now than they did then?
Its a 40 – 45 mix with the MBS getting the short straw.
The GOP have no plan. They are in standby mode awaiting Democrap leadership. After all, BHO won his election. He and his minions seem pleased to have us on the road to hyperinflation. Bernanke will keep us on that road until BHO tells him to stop. BHO wants to redistribute the wealth of the nation and so we are. Elections have consequences.
I have presented my plan several times and will spare all of you from repeating it yet again.
” If Obama is truly out to redistribute the wealth, he’s not doing a bang-up job of it, as more wealth has moved to the top of the income scale and the country has gotten more unequal. ”
http://thinkprogress.org/economy/2012/09/19/874751/obama-hasnt-redistrubuted-wealth/
Great, a failure all around. No wonder you are his lapdog.
No wonder you attack the messenger because you can’t attack the message.
That cliche-d statement makes no sense. I am pointing out that Obama failed by my measurement and by yours, you of course continue to be his lapdog. That is not an attack it is fact.
Who says President Obama failed?
Obama is a failure because after four years in office the only way he can fund the government is by having the Federal Reserve print funny money for him. This is unprecedented.
President Obama is doing what he has to do to pull the country out of the ditch the drunk frat boys drove the country into.
He has had four years. Why does he not try something that works?
Your reference below says what he is doing is not working. It says what he is doing is harmful.
http://theautomaticearth.com/Finance/us-hyperinflation-is-a-myth.html
I am thinking he really does want to redistribute the wealth of the nation and remake society by destroying the middle class.
I’m thinking you have President Obama confused with Mitt Romney and Paul Ryan.
Neither of those men are the President.
How much deflection is necessary to make this guy seem competent?
Neither of those guys are President of the United States of America and you ask what does the President have to do to prove he is competent? LOL!
How often do we hear that it is Bush’s fault or the fault of the House of Representative or the fault of the Republicans in the Senate?
Actually what I asked was… “How much deflection is necessary to make [The President] seem competent?”
Try to keep up.