Printing Money to Get Obama Re-Elected

FED Chairman Ben Bernanke, realizing that the country is getting fed up with the Fed, has begun speaking out on his own behalf. He might be better off if he remained quiet. His denials sound like the protestations of a guilty man.

At a meeting in Indianapolis, Bernanke declared several thing including a claim that he did not expect the country to go into economic recession and that he was not using “QE3” to influence political debate or the outcome of the election.

How believable is Bernanke?

According to Forbes, “Using monetary policy to influence the political debate ‘would be highly inappropriate’ and ‘likely […] ineffective,’ explained the Chairman.”

Funny, the economic reporters at Forbes don’t think it would be ineffective. They think it is very effective. Staff writer, Robert Lenzer recently published a piece with the headline, Obama Will Owe His 2nd Term In Part to Bernanke’s QE.Lenzer called the pro-Obama results “unintended consequences” but he has to be a mind reader to make such an assertion. All he can say on the basis of the evidence is that Bernanke has hidden the pain of the real economy from the voters, making Obama look better than he would look otherwise.

“Bernanke’s stubborn and persistent commitment to piling monetary reserves on monetary reserves has driven asset prices higher, made Americans more wealthy on paper, and reassured the voters in key contested states.”

How? By keeping interest rates practically less than zero, the housing market has not died. In fact it seems like it might be turning around. Also, Bernanke’s QEs have kept the nominal value of stocks higher than they should be in this atrocious economy.

“Your 401K, your pension assets, your residence, have increased in value since the dire fall of 2008. This happened on Obama’s watch despite the rate of unemployment, despite the 45 million people on food stamps, despite the very meager rebound in economic growth. The ‘wealth effect’ could continue in fits and starts though election day – giving comfort to the voters.”

So here we have a government monopoly affecting the outcome of an election. Effectively the Administration is voting for itself.

But this growth is illusionary — based on money-printing and price controls of interest rates. It isn’t the real economy. And many people know it. As Mish at Global Economic Trends Analysis has reported,

“The quarterly survey of CEO expectations looking six months out shows that while CEOs are still positive in regards to capital spending and sales, the recent plunge was the third largest plunge in expectations in history.”

They see what is ahead, and they know it will be bad. And Bernanke is doing all he can to make it worse.







Comments

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Mark Horne was born in Melbourne, Florida, but has also lived in Liberia, West Africa, and Kwajalein, Marshall Islands before graduating from high school. He is an experienced editor and freelance writer, working with Gary DeMar, George Grant, Chuck Colson, and many others. He earned a Master of Divinity from Covenant Theological Seminary and has pastored in Washington State, Oklahoma, and St. Louis, Missouri. Mark is a prolific writer and the author of a layperson's commentary on the Gospel of Mark, a tract on baptism, and a biography of J.R. R. Tolkien. He currently resides in the St. Louis area.

Posted in 2012 Election, Business, Debt, Economics, Federal Reserve, Politics Tagged with: , , , ,
  • CaptTurbo

    No limits to what they will do to keep O’Manchurian in place. How many noticed the fudged unemployment numbers just released?

  • http://www.facebook.com/people/Bob-Marshall/100001163952013 Bob Marshall

    Both Romney and Obama said Ben Bernanke is doing a good job. They both said the same about Timothy Geithner. Obama hasn’t touched the fed. Mitt Romney said in a Republican debate when asked what would he do about the fed/ replied, ” i am not going to take my effort and focus on the fed.” More people need to watch both videos on youtube. Romney Obama the Same? and The Ultimate Mitt Romney Flip-Flop Collection. These speeches are in their own words and not conspicicy theroist say them.

  • afanaglenn

    Mr. Marshall. You are wrong. Romney has a problem with printing all of this money, as would any real economist. It is not that they are printing money, it is that this just continues because Obama finds this the easiest way to address the problems with the economy.
    And to hear today that the unemployment rate dropped below 8% all of a sudden right before the election. Someone is really cooking the books. The rate gets adjusted upward each month after the figures are publlicized, but the revision is never publlished. And to think that the rate dropped .3% in one month belongs in the fiction section of the library.

  • adamenochnoah

    The Fed is the problem, & until we get rid of it there will be no recovery…