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 economy would be – and please, unemployment is not 4.7 percent.
The lies of Obama’s slow jam with Jimmy Fallon may appeal to the unwashed masses who believe in unicorns and rainbows. But for those of you who frequent these pages, yep, even the mindless progressive socialist detractors, you know this story does not end well. Y’all remember the stimulus? How much did the Obama administration spend there…and what were the results? Obamacare? Why, it was such a disaster, the largest healthcare provider in the country, United Healthcare, decided to drop out of the Obamacare exchanges.
If you listened to Janet Yellin drone on in her speech you could sense the exasperation in her voice. If our economy were truly strong, we could easily absorb a 1-2 percent increase in borrowing interest rates. But that’s not the case. Here’s the issue: who’s talking about this on Capitol Hill? What presidential candidate is talking about this issue?
In a year, I don’t want to wake up and find out, using the words of Ricky Bobby, “this just happened.” One day we awoke in 2008 and were told the sky was falling. Could it possibly happen again? Yep, and no one is talking about it. Our monetary policy cannot be used as a cure for the sickness of a failing economy.
And 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. We’ve gone, in the Obama years, from $10.67 trillion of accumulated debt over the existence of the United States…to $19.3 trillion. I want someone supporting Obama’s Keynesian economic theories to explain all this government spending, debt, deficits and yet we still have the Federal Reserve trying to prop up our economy.
Ok, I’m a simple fella born and raised in the inner city of Atlanta. I went to the University of Tennessee and earned a couple of Masters degrees from Kansas State University and the US Army Command and General Staff College. I do not have a PhD in economics from some high brow Ivy League school — thank God, because these 500-pound brains don’t have a freaking clue. Economics isn’t that hard, it’s about common sense. More government spending doesn’t grow an economy, but somehow it appears that America lacked common sense in 2008 and got even more boneheaded in 2012. Doggone, y’all wanna continue down this path to destruction? Be stupid again in November 2016.
End of lesson, class dismissed.