Economy is sick, but Fed “cure” is worse

The weekly jobless claim numbers continue to be bad news. Expectations were that some 330,000 Americans would be filing for first-time jobless claims. The actual number was 339,000.

The more telling number is 63.4 percent, the number of Americans in the workforce — which is the lowest workforce participation rate since the Jimmy Carter administration.

You can download our data card to see how this number has worsened in the Obama era. People will say, “well, unemployment is 7.3% and President Obama inherited a mess.” For once I agree. He has now inherited his own mess. One of the first progressive socialist policy initiatives under President Obama was the Stimulus bill — y’all remember that right? It had the government spending close to $1trillion in taxpayer dollars to “stimulate” the economy.

However, what many Americans have truly forgotten, and the Obama administration certainly won’t remind you, is what was supposed to happen to unemployment as a result of the stimulus. At this time, it was supposed to be just 5.6 percent. Another broken promise.

Even more horrific, the Federal Reserve has taken over the role of chief “stimulator” through “quantitative easing” which means printing money to the tune of approximately $50-$60 billion per month. The Fed has taken up the mission to infuse money into our economy until the unemployment rate drops to six percent. It’s a house of cards.

Many will point to the Dow Jones Industrial average record numbers to illustrate how well the economy is doing, but that is a way wrong answer. We have effectively created an artificial economy — not a true free market economy and growth. If you factor in the number of Americans who have dropped out of the workforce and are no longer counted, our unemployment rate is closer to 11 or 12 percent. And consider how many Americans have been forced to part-time employment as a result of Obamacare’s definition of a full work week as 30 hours – not to mention seeing their wages depressed as food prices rise as their dollars are worth less.

The economy is ailing, but the medicine the Fed is dispensing might eventually kill the patient.

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8 Comments on "Economy is sick, but Fed “cure” is worse"

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TheGoodstuff
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Your right. I can see this patient dying out within two years.

Sgt. Bob
Guest

You tell me Mr. West; what’s it going to take to get Obama out of office before he destroys America?

Ken Largent II
Guest

How would one stop the Federal Reserve Bank from controlling our economy without gettting assassinated? (See Executive Order 11110).

Gerald Zirnstein
Guest

That red headed nurse looks half crazy but I’d do her if I could get the nasty flourescent green syringe away from her.

Don Anastas
Guest

Yet the government insists on printing their version of unemployment
7.3% when the number 23.3% real unemployment would certainly be more
accurate. And the media is glad to accommodate the regime.

Rusty catania
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Without the QE money injected into the economy, the economy has actually shrunk by $55 billion for 4 straight quarters. That by The Fed’s definition is a depression

dchrist81
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3Q GDP DECREASED $58.4 Billion
http://market-ticker.org/akcs-www?post=225788

“The BEA’s GDP tables tell us that the gross change in GDP from 2Q -> 3Q was $196.6 billion. But the Fed’s QE program injected $255 billion, so in fact the economy shrank during the 3rd quarter.

When people tell you that they believe the economy is in a recession, as a recent survey said was commonly believed — they’re right.”

PigManFan
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Core inflation has been openly changed and does not include *food, gas/energy, or house prices.* So, inflation isn’t bad as long as you don’t eat, move, or live indoors. Creating money out of thin air is inflation.