Get Ready for QE16

When politicians do something they know the people won't approve of, they come up with some kind of term for it that nobody understands.  For example, when the Obama administration bombed Libya a few months ago--clearly an act of war--they called it "kinetic military action."  "Social justice," of course, means taking money away from those who have earned it and giving it to those who haven't.  And "quantitative easing" (QE) is the Federal Reserve's term for creating hundreds of billions of dollars out of thin air.

There have been two of these "quantitative easings" so far by the Fed (in the current recession).  The idea is--and this is the Keynesian monetary philosophy--that if the government would only create enough money and pour it into the economy, then economic indicators would improve and a recession or depression could be ended.  Since QE1 didn't work, the idea was that enough money wasn't created.  Hence, QE2.  When that doesn't work, there will be a QE3, a QE4, a QE5, ad nauseum.  They will never admit that the economic theory itself is wrong.

"Quantitative easing" is exactly what Hoover and FDR did during the Great Depression that prolonged it for so long (they didn't call it "quantitative easing," though).  And finally, after 10 years of it, an honest Democrat admitted its failure.  Henry Morgenthau, who was the Secretary of the Treasury under Roosevelt, told his fellow Democrats in 1939: "We have tried spending money. We are spending more than we have ever spent before and it does not work."  And it's not working today, either.  But it's all Obama and his people know and that's a main reason they need to be removed from office.

Folks, there is plenty of money out there already.  Financial institutions have money, but they are afraid to loan it because of "loan modification," liberal-speak for reason after reason why borrowers should not have to pay what they owe when it is due, or perhaps, not pay it back at all (more "social justice").   "Loan modification" is simply the fancy term for welching on debts.  No intelligent bank is going to loan out its money if there is a strong possibility it will not get it back.  But they had to do that (forced by pressure from the Clinton adminstration) and that is a major reason for the current economic recession.

A lot of businesses today have money, but they are afraid to spend or hire in the current economic climate created by the Obama administration.  Obama is creating a vast amount of uncertainty as to what the cost of Obamacare is going to be, future taxation and regulation, and other unpredictable employer costs.  Businesses need to be able to plan for the future, but when they don't know what the rules are going to be because government constantly changes them, then the risks for investment become too great.  As long as a government that is hostile to business exists--as the Obama government is--then businesses are going to hang on to their money until a more favorable climate arises.  The money is out there, but smart people are not going to invest under Obama.

And since they won't...we need QE3, 4, 5, 6, etc.  Which simply creates more government debt, economic inflation, and has finally led to a lowering of America's once pristine credit rating.  It happened, not surprisingly, under a Democratic administration.  And if they can think of a catchy phrase to cover up their incompetence--one that the majority of people won't understand--then they continue to pursue their ineffective policies.  And since they've involved the government so heavily into the economy, it becomes politically impossible to change course.  We have created a mentality in this country, that, if there is a problem, it is up to government to solve it.  In more cases than not, government is the problem.  But a politician who loves power, and thinks he can create a utopia on this earth if people will only listen to him, will never admit that. 

And it's the people who suffer.