Obamanomics Combines With Fed to Guarantee More Economic Misery by Matt TowerySubmitted by bobbyw24 on Sun, 11/14/2010 - 08:53
I'll give President Obama a bit of credit for signaling that he will abandon temporarily one aspect of his crazy economic philosophy, best termed "Obamanomics. " It appears the president will at least allow the George W. Bush tax cuts to remain in place for some additional period of time. That's a smart move for him because everything else both the administration and the Federal Reserve are doing or considering appear to be setting us up for another economic disaster.
First, let's consider what that whacky Federal Reserve is doing. CNBC summarized the Fed's recent move better than I could. They reported: "The Fed plans to print enough money to buy an average of $75 trillion dollars in treasury bonds each month for eight months. ... The bond purchases program is intended to energize the economy by forcing down long-term interest rates. Those lower rates might encourage some consumers to borrow and spend more."
Wow. The presses printing those dollars will be smoking from the rate of speed at which they will be laying down ink on that special paper. Well, at least the folks who print money will have plenty to do.