The pathetic progressive socialist excuse of “we just need to spend more money to stimulate the economy” is stupid at best, and nefarious at worse.
As Written By Allen B. West:
Of course we’re all focused on the Islamic jihadist attack in Orlando and its aftermath. It just amazes me that President Obama and his leftist flying monkeys remain focused on gun control as the solution to 49 Americans being gunned down. Here we are some 96 hours afterwards and ISIS still operates from its base of operations and center of gravity in Raqqa, Syria — no consequences. The only consequence has been another angry lecture from Barack Obama. But yesterday there was another indicator of the failure of our Dear Leader — and we need pay close attention, as there will be Very. Serious. Consequences.
As reported by Fox Business News, “The Federal Reserve on Wednesday kept short-term interest rates near historic lows, opting for no change in monetary policy at the conclusion of its two-day June meeting.
The decision was right in line with Wall Street expectations, which had priced in just a 2 percent chance of a rate rise this month. In a statement, the Fed explained its reasoning for the decision, citing soft business investment, inflation running below the 2 percent target, and a slowdown in the labor market.
The May jobs report, released two weeks ago, showed a significant drop in the rate of job creation from previous months. The U.S. economy added just 38,000 net new jobs during the month, while Wall Street expected 164,000. Figures from the prior two months were revised lower, while both the labor force participation and unemployment rates declined. The lower participation rate signaled more Americans left the workforce in May.
“The committee will carefully monitor actual and expected progress toward its inflation goal. The committee expects that economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate,” the statement read. Randy Frederick, managing director of trading and derivatives at Charles Schwab (SCHW), said the June decision showed the Fed was finally moving its expectations in line with Wall Street’s.
“There is so much data and so many things that can happen, it’s hard to forecast a couple months ahead let alone a couple of years,” he said. “Look at December: Their forecast was for four rate hikes, the markets said ‘no, just two.’ Now the market is [lowering its expectation and] the Fed is moving down as well. The collective wisdom of the market is right,” he said.”
Let’s have a little Monetary Policy 101 for bubbas and bubbettes that cuts to the chase.
We have an economic Armageddon looming and Janet Yellin and the Federal Reserve can’t do anything to avoid it. They’ve maintained the horrific monetary policy called “quantitative easing,” meaning they’ve been printing money and buying up our debt and bad assets floating through our financial system.
The holdings or accumulation of money by the Fed has grown in the era of Obama from $1 trillion to nearly $4.5 trillion. Banks have been borrowing money from the Central Bank at these absurdly low interest rates and storing it up in reserves. All of this is happening in order to try and mask the abject failure of Obamanomics — you know the tax and spend policy that has resulted in last quarter’s almost invisible 0.8 percent GDP growth and an annualized average GDP growth in the reign of Obama barely at 2.2 percent. Folks, it just ain’t working and no level of spin can hide that…but Wall Street loves the crack cocaine of freshly printed money and therefore, an artificial economy is being created. In others words my beloved readers, they are creating another fiscal bubble — yep, the government is doing it all over again.
Last time in 2008 it was the result of the government getting involved in the mortgage industry, believing every American possessed a right to own a home. Now, because Barack Obama, our most prolific progressive socialist president, cannot institute proper tax, regulatory, economic growth policies, the economy is damn near flat-lining.
Heck, if it weren’t for the oil and gas industry and the state of Texas along with others like Tennessee and Florida, just consider what the state of America’s …..
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