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View Full Version : Obamanomics strikes out.



LWW
11-14-2010, 05:00 AM
After the thinking class predicted that increasing the money supply could only ignite inflation, followed by the sheeple class claiming that if Obama says that it won't happen then they believe the power of his word alone will insure that this simply cannot happen ... we now have an observable reality which shows the thinking class to have again been correct and the sheeple class to have been again led to financial slaughter:

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">There might not have been a second round of quantitative easing, if Federal Reserve Chairman Ben Bernanke shopped at Walmart.

A<span style='font-size: 11pt'> new pricing survey of products sold at the world’s largest retailer [WMT 54.13 -0.21 (-0.39%) ] showed a 0.6 percent price increase in just the last two months, according to MKM Partners.</span> <span style='font-size: 14pt'>At that rate, prices would be close to four percent higher a year from now, double the Fed’s mandate.</span>

The “inaugural price survey shows a small, but meaningful increase on an 86-item grocery basket,” said Patrick McKeever, MKM Partners analyst, in a note. Most of the items McKeever chose to track were every day items like food and detergent and made by national brands.

On November 3, the Fed announced its much-anticipated purchase of $600 billion in Treasury securities. An effort to keep market rates low since the central bank’s benchmark rate is already at zero. The Federal Open Market Committee’s statement said, <span style='font-size: 11pt'>“Currently, the unemployment rate is elevated, and measures of underlying inflation are somewhat low, relative to levels that the Committee judges to be consistent, over the longer run, with its dual mandate.”</span>

<span style='font-size: 14pt'>But since that statement, interest rates have actually gone up, backfiring on a Fed chief who wants his quantitative easing to spark inflation of 2 percent annually. A moderate amount of inflation would be considered good for the economy.</span> <span style='font-size: 17pt'>The problem is that inflation is already running well above a healthy level, investors said, Bernanke is just not looking in the right place, like a Walmart.</span>

<span style='font-size: 11pt'>“I suspect that when the Chairman thinks about reflation he has a difficult time seeing any other asset besides real estate,”</span> said Jim Iuorio of TJM Institutional Services. <span style='font-size: 14pt'>“Somehow the Fed thinks that if its not ‘wage driven’ inflation that it is somehow unimportant. It’s not unimportant to people who see everything they own (homes) going down in value and everything they need (food and energy) going up in price.”</span> ...

<span style='font-size: 11pt'>Prices of cotton, silver wheat, soybeans, corn are all up big this year.</span> <span style='font-size: 17pt'>Cotton futures are up the most, climbing 90 percent so far in 2010. The price of silver is up 63 percent.</span> ...

Bernanke keeping interest rates artificially low is sparking outrage among central bank chiefs around the world, who feel the U.S. is essentially exporting inflation.

China’s CPI surged 4.4% in October, according to figures released Thursday, higher than economists’ expected and up from a 3.6 percent annual reading in the month prior.

Said EmergingMoney.com Founder Tim Seymour, “Bernanke definitely must not shop at WalMart in China.” </div></div>

THE REGIME'S WAR ON PROSPERITY MARCHES ON! (http://www.cnbc.com/id/40135092)

LWW

Qtec
11-14-2010, 05:09 AM
Show me where in that article they mention Obama?

Q

LWW
11-14-2010, 05:26 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Qtec</div><div class="ubbcode-body">Show me where in that article they mention Obama?

Q </div></div>

I refuse to believe that you are actually that stupid.

Are you honestly asking us to believe that Bernanke isn't Obama's boy?

Are you honestly asking us to believe that Bernanke isn't following Obama's policy initiative?

LWW

Qtec
11-14-2010, 05:36 AM
So he is not mentioned in the article?

You can't bring yourself to say it. How pathetic.

Does not the Fed Reserve operate independently of the WH?

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">According to the Board of Governors, the Federal Reserve is independent within government because "its decisions do not have to be ratified by the President or anyone else in the executive or legislative branch of government." </div></div>

Q

LWW
11-14-2010, 05:44 AM
Well, you finally proved me wrong Snoopy.

I was guilty of holding the bar far too high for you.

Back where the air is thick and no swamp water flows:

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">(Reuters) - President Barack Obama on Monday said Federal Reserve Chairman Ben Bernanke has his strongest support and is doing a good job.

"He has my strongest support. I think he's done a good job," Obama said in an interview with ABC News. "What we need is somebody at the Federal Reserve who can make sure that the progress that we've made in stabilizing the economy continues, and I think Bernanke's the best person for that job."</div></div>

TRUTH VS TRUTHINESS (http://www.reuters.com/article/idUSTRE60O61G20100125)

LWW

LWW
11-14-2010, 05:46 AM
Even the DailKook sees what you cannot:

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">At least that's a reasonable conclusion after Mr. Bernanke all but submitted his job application to Barack Obama yesterday by endorsing the Democratic version of fiscal "stimulus."

While the Fed chief said any stimulus should be "well targeted," even a general endorsement amounts to a political green light. Mr. Bernanke certainly knows that Mr. Obama and Democrats on Capitol Hill are talking about some $300 billion in new "stimulus" spending, while President Bush and Republicans are resisting. And by saying any help should "limit longer-term effects" on the federal deficit, he had to know he was reinforcing Democratic opposition to permanent tax cuts.

Mr. Bernanke could have begged off -- and would have been wiser to do so -- given how much the Fed has already made itself a political lightning rod with its many Wall Street interventions. He might also have thought twice about endorsing one party's policy preferences a mere two weeks before Election Day given his obligation to preserve the Fed's independence. </div></div>

OH MY! (http://www.dailykos.com/story/2008/10/21/03558/029)

LWW