The views expressed in any article published in this blog are the author's own and do not necessarily reflect the views of Joseph Foster or Bob Lupoli.

Thursday, November 4, 2010

Berneke Bumbling on Q. E.

Bob:  Mr. Ben Berneke, the Federal Reserve Chairman has cranked up the printing press to solve the recession. Below are two comments made by American citizens the first in response to Berneke? Quantitative Easing.

Here is my take on the issue,  the first QE was done by Greenspan that started the housing bubble and Americans began to spend freely on borrowed money, it increased consumer spending and created a false unsustainable  growth in the US economy that bubble busted in 2008.

With all of the Federal bailout and easing after the bubble busted the recession remains,  and unemployment remain at 9.6% this is the Government official number, but some wise Economist and investment guru dispute the number and claim the unemployment is much higher. Now a second QE is to occur many doubts it will work.

Here is the greatest deception that is being committed on the American people by both political parties: The politicians fail to focus on the fact that America is being deindustrialize nor is such fact being spoken about by either political parties; reason it serves the interest of Corporate America to relocate to countries outside the US the benefit is high profits from cheap labor. The politician on both sides of the isle has been silenced since their funding for the most part comes from these elite of special interest group that just loves low paid workers that may not be obtained in the US. These group of elite Capitalist know from history that high profits may be achieved if they could legally buy slaves, however that practice  has been made illegal.

The second comment by the reader address some of the fault of the Republican Party, The label of conservative which applies to the Republican party in the past was accurate, but that label during the past ten years has changed and that party today which claims to be conservative is no longer a conservative party, During the eight years of Bush it created a bubble, it created two wars financed by borrowed money both un winnable Wars, moreover accumulated a massive debt to the tune of trillions of dollars.

In the mid term 2002 election this party spin has been small Government and lower taxes, prosperity and more jobs, the aspect of small Government has been said by the Republican party for the last three decades and neither the Republican or Democratic party has ever down sized the growth of the Government, therefore the spin is false and not achievable, the second lower taxes again another false spin,  how could you lower taxes when Government spending keeps increasing; how could you lower taxes when both parties favour wars and the military Industrial complex.

How could you create more jobs in America when it is to  the detriment to the Corporate bottom line to hire Americans, the preferable choice where possible hire Labour in countries where labour may be hired for $35, 00 per month. Here is what happened in the 2002 election; first the Democrat to the voters come to our side and we shall save you, some believed the spin and when to that side. The Republican said the same thing and some then went to the Republican side. Since neither party has convinced the voters that the ultimate Savior is one of the party, the voters in effect created a grid lock Government and failed to give one party a decisive mandate to govern the country.

A similar scenario occurred in Germany when finally a charismatic leader Hitler appeared on the scene, his promise to save the people was believed by majority of the German people, and  for this reason they gave him a decisive mandate to Govern the country. They called  him the Fuehrer, and they began to celebrate since the Fuehrer fulfilled the promise he made,  by curing German unemployment.
Later came the disaster of war that is another story. If you need to use a crystal ball in predicting what holds for the future of the US, You must read the history of Germany from the period of the German depression, and when the central Bank attempted to revive the economy by printing more money that did not work. Moreover, read as to what has occurred in 1990 in Japan again it remained in recession. The German scenario may occur in the US since Berneke is attempting to revive the US economy by the printing press. I agree with the comments of the writer as to the present citizens of America the population of America has changed with an increase of uneducated Americans. The brain washing technique meted to them by the news media and the spin of politicians that serve special interest group now easily influences the voters, in their confusion as to which party will turn the country around they voted for a Grid lock Government

Two Comments written by Americans;
Comment #1
The US Treasury prints a new bond and the US Fed buys it, and then sells it to banksters. The banksters borrow from the Treasury at near zero percent and invest into the bonds at 3-4%. Why would they want to make risky loans, if the gangsters guarantee them a healthy profit and taxpayer bailouts? This is a shameful Ponzi scheme. The Fed gangsters and approving politicians should be prosecuted for destroying the American middle class and the US Dollar. They are certainly NOT representing the best interest of American Citizens

Comment #2
I find it amazing that the Bush administration never put the cost of their two wars in the budget. President Obama has added these costs to the budget, but NO ONE points this out. Republicans whine continuously on the money that is being spent, well not one of them will vote for us to get out of these ridiculous wars. Their answer will be to remove the cost back out of the budget. What has happened to the citizens of this country? We have become a nation of stupid. No one takes the time to research what they are voting on, instead they listen to garbage news and ridiculous ads by the people who lead the uneducated with fear. I give up on our country ever coming out of the mess Bush and Cheney got us into. Too little education in our country has finally caught up, so long middle class.

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