The Barack Obama economy is too weak to create jobs was the excuse given by Ben Bernanke for launching QE3. The chairman of the Federal Reserve Bank announced on Thursday a third round of quantitative easing, pumping an extra $40 Billion per month into the economy to buy mortgage-backed securities. Also, Bernanke is committed to keeping interest rates low until 2015 at least. While Wall Street hailed the move with gains in the Dow and NASDAQ, the credit rating agency, Egan-Jones has downgraded the United States credit rating from AA to AA- (minus) on Friday. They cited the Fed′s QE3 and said that the plan to purchase mortgage-backed securities will hurt the economy more so than help it.
Bernanke′s reasons for doing QE3 are that the economy is still very weak and fragile, and offers no prospects for reducing the high unemployment rate anytime soon. The Fed is forecasting that the unemployment rate will remain above 7.5% for at least another year. With cheap money the only tool the Fed has to use, Bernanke seems to be making a last ditch attempt to help keep Obama in the White House, knowing full well that Mitt Romney has already stated he would not renew Bernanke′s chairmanship when it expires in 2014. So by helping Obama keep his job, Bernanke is trying to help keep his own job.
Many analysts were puzzled by the timing of the Fed′s decision. There is no doubt that QE3 will do nothing to stimulate the economy significantly during the next few months. Any long term monetary policy actions could have easily have waited until after the November elections. Bernanke and Fed apologists will argue that by keeping interest rates low and buying the mortgage securities will enable banks to lend money more easily. That a positive bump in the stock markets may spur more consumer spending and borrowing as well.
But the drawback of QE3 is weaken the U.S. dollar further, leading to higher commodity prices such as oil, gasoline and various grains and food stuffs. Coupled with more tensions in the Middle East, oil has spiked again to the $100 a barrel mark with gasoline approaching $4 a gallon in many states. The summer drought had already caused food prices to rise and now we can expect further increases. So it is unlikely that consumers will have extra money to spend, especially after the latest census data shows that incomes fell another 1.5% this past year under Barack Obama.
So is it any wonder that the Barack Obama economy has been downgraded again by Egan-Jones? That our once Triple-A credit rating is now at Double-A-minus? Ben Bernanke unleashing a third wave of quantitative easing, QE3, is an admission of failure. The Federal Reserve has not truly helped the economy rebound, nor has any of Obama′s policies helped improve the bleak unemployment rate. The message being sent by the credit rating agencies like Egan-Jones is unmistakably clear, four more years of Obama, and Fed Chairman Bernanke, will only drive our economy further off the fiscal cliff.
September 16th, 2012 at 8:32 am
Expected this. Bernanke is trying to keep a depression at bay, along with a governmental collapse until Obama is re-elected. Once Obama is in again( I praY NOT), every thing will fall apart and we will be under some kind of communistic rule. Obama said he wanted to transform this country. The useful idiots and media helped give him the power to do it.
September 16th, 2012 at 12:03 pm
Things wrong all the time.
People make stupid decisions here and there.
But when these things happen with such consistent frequency it becomes pretty evident this is no string of coincidents .
Seriously, sit down and list every decision,speech, legislation and occurance in this administration in its chronological sequence and connecting the dots can almost be done blindfolded.
I’m not gonna write it down, its too much work.
But I can do the math in my head a hundred times faster.
More has gone wrong (or right depending what you are) in the last four years than in all my 55.
Its frightening
September 16th, 2012 at 12:10 pm
Slim Pud has Poisoned the Well for the Diversity
At All Cost, Crowd
As soon as we can get the Illegal Alien Lesbian
Box Checked, we can git us sum Swell Honkies
Back In The Saddle. We Need . . . .
RONALDUS MAXXUS II
ALL AMERICAN QUARTERBACK
September 16th, 2012 at 12:54 pm
Susan Rice on FOX News Sunday driving home this BS that this all because of this film.
Only a very few of these protesters have even seen this film.
It takes deep seeded hatred for this many people to hit the streets all at once with only “the report” of Islam being offended.
Most Muslims did not hit the streets.
Of the ones that did, calling for Americas death, theres enough to constitute a serious threat.
I suggest everyone watch this idiot Rice trying to make her case.
The idiocy, naivety, loyalty, is astoundingly infuriating. These jerks will say anything void of fact to escape responsibility.
Theres more to this than they care to admit.
Its an easy conclusion to come to seeing as how the Danish cartoons did not create half as many protesters in half as many countries.
I’m sooo tired of having my intelligence insulted
September 16th, 2012 at 1:28 pm
Sue, so you expected Bernanke to be some player in some conspiracy “governmental collapse until Obama is re-elected” to assist President Obama in making the economy “fall apart and we will be under some kind of communistic rule”? And this is after years of portraying Obama as some smuggled in baby with the intentions of growing up to be President in order to transform us into some terrorist loving communistic nation, or something, after the most obstructive GOP in history did everything in it’s power to intentionally sabotage the economy with the admitted intentions of “insuring Obama to be a one term President”.
And you guys actually want to be taken serious?
And this is the best you got? It’s no wonder the Romney/Ryan campaign is crashing to the ground.
September 16th, 2012 at 2:15 pm
Okay Ronald…
You tell us why the idiot is printing more money 2 months before the election.
I mean, did your buddy not say the private sector is doing just fine ?
(I’m dying to hear this)
September 16th, 2012 at 2:19 pm
Oh, BTW, he doesnt call them terrorists
September 16th, 2012 at 5:23 pm
micky 1, Ronald 0.
These QE measures punish savers, reward speculation, empoverish everybody that doenot have meaningful holdings of gold and silver (most of the middle class). It’s a form of taxes on the poor (a war on the needy). It won’t reignite the real estate because there are no jobs, people can’t get mortgages. The only explanation left is that Bernanke wanted to give Obama a little push over the November mark, the taxpayer be damned.
September 16th, 2012 at 9:37 pm
I almost never comment, but i did some searching and wound up here Obama Economy Downgraded Again Right Pundits.
And I actually do have 2 questions for you if you
tend not to mind. Could it be simply me or does it look as if like some
of these comments look like left by brain dead visitors?
like to follow everything fresh you have to post.
Would you list of all of your public pages like your twitter feed,
Facebook page or linkedin profile?
September 16th, 2012 at 9:38 pm
…and corporate profits are at an all-time high. What Romney knows how to do (make a buck in the private sector) is already being achieved across the economy. The Republican candidate offers us nothing.
As for understanding the recent actions of the Federal Reserve (which has been run by Republicans since the 1980s) you might start with Milton Friedman and Anna Schwartz and their classic critique of Fed policy during the Great Depression. We learn from history, with the result that the last few years look stellar by comparison with the “Hoover economy.”
And the soaring stock market is predicting even better times ahead! (Especially if your income comes from profits or capital gains.)
Socialism? Bah!!
September 17th, 2012 at 3:06 am
BTT?
Jeffy Immelding (GE) and Warren Buffet’s secretary (Berkshire Trains) couldn’t agree with you more…LMAO
“And the soaring stock market is predicting even better times ahead! (Especially if your income comes from profits or capital gains.)”
Johnny YachtClub Heinz Kerry
Al Gore-Unhappy Green Czar flying around in G5’s
BJ Clinton
MF Corzine
Bela Peelooski
Harriet Reid
and the hits just keep on coming…
Yes BillyRay was elected not to appease “…those FAT CAT BANKERS…”
BillyRay needs a “shovel” to scoop up that sh**
Paul Krugman must be YOUR GUY.
ROFL
L Rivera is completely right.
September 17th, 2012 at 4:33 am
Corporate profits are high because the private sector, unlike the government, has reduced their spending costs.
September 17th, 2012 at 5:31 am
At least there’s an admission from you Andy that the private sector is doing just fine, under the Obama Administration at that.
September 17th, 2012 at 7:55 am
Ron, wise up.
Its a very gad sign when the private sector reduces costs, such as employment.
Only an idiot would see that as an admission lof anything other than failure.
=======================
“Could it be simply me or does it look as if like some
of these comments look like left by brain dead visitors?”
If you’re going to people brain dead I suggest you re-read your crap before you submit it.
“look like left by “?
Can you say “duh”?
September 17th, 2012 at 8:31 am
Obviously I didnt even re-read my own crap.
Oh well
I’ve never claimed to be anything than another ass hole with an opinion.
“We learn from history, with the result that the last few years look stellar by comparison with the “Hoover economy.””
So, you think its a good idea when you present the 30s economy as a valid comparison ?
Help me out here would you ?
Seriously, in the face of all the evidence of liberal failure it takes a psychopath to defend this administration.
Once again, pay attention asshopper.
Obama has racked up more useless debt and useless spending in 3 1/2 years than in all of Bushs 8.
Unemployment is still above 8%.
Interest is at 0% but banks will still not loan money.
Consumer demand/spending has gone down incrementally for two years straight,1.2% yesterday.
Inflation has outgrown income by almost 50%
Foodstamp distribution has risen almost 50% in the last 3 years.
Unemployment benefits have been extended so many times since this jerk took office that I’ve lost count.
Gas is approaching 5.00 a gallon.
Cutting defense costs and premature withdrawals in the mid east are costing billions of dollars, and American lives.
GM is still knee deep in debt and no one is buying the Obama cars.
Chicago unions are screwing the middle class they say they care so much about.
The housing market is worse off than ever before.
Energy costs, electricity bills are higher than ever. (as promised by the idiot in chief)
The fed, under this administration, just printed its third round of useless dollars making them all less worthy. (republicans never were crazy about Bernanke)
The overwhelming majority of Americans are worse off than they were 4 years ago. Period.
And theres liberals who think this 4 years represents a path to success ?
They’re nothing but totally entrenched and immersed idiot loyalist ideologues who will not concede mistakes and failures on theirs and their leaders fault.
Please Ron.
Defend this without looking like a fool
September 17th, 2012 at 2:19 pm
If someone told you that the stock market, which was at 7949 at the time of Obama’s inauguration would reach 13553 today, that would be a good thing, right?
How has this happened?
Easy, American companies have divested themselves of their most costly liability, the long-term American worker.
It doesn’t matter who is the next President, the current unemployment rate is the “new normal”.
Increased productivity, computers and outsourcing, (both here and abroad) results in companies running lean.
If either Obama or Romney promises a significant increase in jobs they are lying (I think Romney’s latest is 12 million new jobs, ridiculous).
If they need a job done now, they merely hire a company and call them again when needed.
In-house people to do, graphics, advertising, accounting, etc.? Never again.
American companies are going to continue to have record profits, but hiring middle management? Ummm…no.
If people are to succeed in the future they will have to become much more entrepreneurial.
Speaking from a local perspective, a person could have an 8th grade education and make $70,000 a year with full benefits putting bolts on a Dodge Dart. This allowed for a very well-to-do middle class. Those days are gone forever.
Now? A person putting bolts on a Chevy Malibu now starts at $12 an hour and eventually gets to $14 with minimal benefits.
Again, this is the new normal.
It doesn’t matter who is the next President, the current unemployment rate is the “new normal”.
Increased productivity, computers and outsourcing, (both here and abroad) results in companies running lean.
If either Obama or Romney promise a significant increase in jobs they are lying (I think Romney’s latest is 12 million new jobs, ridiculous).
If they need a job done now, they merely hire a company and call them again when needed.
In-house people to do, graphics, advertising, accounting, etc.? Never again.
American companies are going to continue to have record profits, but hiring middle management? Ummm…no.
If people are to succeed in the future they will have to become much more entrepreneurial.
September 17th, 2012 at 2:25 pm
Too bad as it is an effective stimulus.
Every penny is spent within a week, right back into the economy.
What do wealthy people do with extra money? Put it in the bank.
So who is the job creator?
I do, however, understand why people are miffed when people doing nothing are making almost as much as many individuals that are working full time.
I have paid into the unemployment fund for many years so I am considering laying myself off for a while. Seems fair, right?
September 17th, 2012 at 2:37 pm
This renders your whole argument, naive and ridiculous.
“Every penny is spent within a week, right back into the economy.
What do wealthy people do with extra money? Put it in the bank.”
Each taxpayer is on the hook for 50,000.00 as of 2009. Each taxpayer has not even received their return on GM, never mind the rest of the 5.2 trillion in failed stimulus.
Wealthy people only put their money in the bank during a failed economy and invest in robust economies.
“Now? A person putting bolts on a Chevy Malibu now starts at $12 an hour and eventually gets to $14 with minimal benefits.
Again, this is the new normal.”
Just recently GM falsely claimed it paid off its loans.
Then quickly gave all employees 4000.00 bonuses.
Wise up and cut the crap.
Seriously, if you’re going to go down that road you’ll get more bites in the psycho ward.
September 17th, 2012 at 2:43 pm
“If someone told you that the stock market, which was at 7949 at the time of Obama’s inauguration would reach 13553 today, that would be a good thing, right?
How has this happened?
Easy, American companies have divested themselves of their most costly liability, the long-term American worker.”
Boy, were you ever wrong.
Real Estate is being sold off en masse dirt cheap.
“Fed Chairman Ben Bernanke, in a news conference following the announcement, said that the Fed’s actions will support the recovery but won’t be enough to fix high unemployment.
“I personally don’t think it’s going to solve the problem,” Bernanke said.
He again urged Washington lawmakers to address the pending jump in taxes and drop in government spending currently set to begin on Jan. 1, which is generally described as a fiscal cliff. He previously said the cliff, if allowed to play out, could send the economy back into a recession.
“I don’t think our tools are strong enough to offset a major fiscal shock,” Bernanke said.
But, he said, the Fed has tools that will help and feels compelled to use them.
“It’s a Main Street policy. What we’re about here is trying to get jobs going,” Bernanke said.
Policymakers — with one dissenting vote — announced they would buy $40 billion a month in securities backed by mortgages in an effort to lower long-term interest rates and mortgage rates specifically.
This third round of bond buying, referred to as quantitative easing, or QE3 in this case, is the first in which the Fed has tied its actions to improving economic conditions rather than a specific date in the future.
The Fed will keep buying mortgage bonds as long as “the outlook for the labor market does not improve substantially,” its announcement said.
Today’s policy statement also extended until mid-2015 how long the Fed will keep its key interest rate near zero. It had pledged in January to keep the rate near zero until late 2014.
The Fed also will continue an earlier policy called Operation Twist that specifically targets lowering long-term interest rates. ”
==================================
Try again
September 17th, 2012 at 2:55 pm
And you are right on one point.
They didn’t put their money in the bank.
When the market was at 7700 the “smart” money went into the market for equity purchases and acquiring leaps and call options.
You know what an investor calls an 80% rise in the stock market in less than four years?
A robust (or at the very least a recovering) economy.
September 17th, 2012 at 2:56 pm
For all of the crying about us being unfriendly to corporations, what do they have to complain about?
Money can be borrowed at next to nothing (which is why even a company with plenty of cash reserves would be stupid not to borrow), taxes are easily avoided and these stringent regulations everyone speaks of are certainly not affecting corporate profits.
The U.S. should follow the same model.
Borrow on the cheap, use our markets as a weapon (not as formidable as before, but still powerful), cut silly spending (like continually reforming a military suited to fight World War II again when the next war will be fought with a keyboard and a mouse) and invest in industries with a future (or even a present).
That last one was for Romney who was content with letting the American auto industry perish. Being in Michigan we take it personally.
He now applies revisionist history and says he merely wanted it done with private funding. Noted auto pioneer Bob Lutz (a loyal Republican) laughs out loud at that notion.
He has stated that banks didn’t even know if they would be in business and when he called about funding they laughed and then hung up the phone.
September 17th, 2012 at 3:02 pm
Oh, I can see what’s coming.
Another victory for the right on RP.
As L. Rivera said, “Micky 1, Ron )”
It is more accrued,
Patrick, Micky and Andrew-1912
The left-0.
Of course there is the minor caveat that the people that keep declaring victory also happen to be named Patrick, Andrew and Micky.
Coincidence? I think not.
September 17th, 2012 at 3:08 pm
Ok, gotta get back to work.
We are currently going through the Affordable Health Care Act to find the loopholes that allow for profit. What do you kids call it? Obamacare?
People in the medical profession that complain about not making money under the new health care act are simply fools.
When have 35 million new “customers” entered a market and it becomes less profitable?
Merely increase volume at a slightly less margin and capitalize on those procedures and tests that pay the most.
This is why doctors even admit they are not very astute at business.
September 17th, 2012 at 3:21 pm
“You know what an investor calls an 80% rise in the stock market in less than four years?
A robust (or at the very least a recovering) economy.”
Amazing. You actually think using two exact opposite descriptions works for your argument.
Absolutely amazing.
Yes, the “very least” is fitting and not at all robust in the weakest recovery ever on record costing more than the 40 cents we borrowed on each dollar.
The bean market trading beans,(real estate, shtty mortgages)selling bonds to Bernanke is all thats happening and not a statement of faith in the private sector or public but simply a bullish move for those not willing to see their bonds decrease in value further.
They’re dumping their sht and thats all they’re doing as any indicator.
I’d fire your ass in a heart beat if thats the best analysis you could come up with.
Better go gitcher unemployment before thats all gone and a loaf of bread costs a wheel barrel full o money
September 17th, 2012 at 3:23 pm
“When have 35 million new “customers” entered a market and it becomes less profitable?”
They had no choice Einstein
September 17th, 2012 at 3:29 pm
Oh, dont forget oil.
But, the middle east turmoil is not Barrys fault so…
September 17th, 2012 at 3:35 pm
Anyone waiting for our economy to return to “normal” will die of old age waiting.
Again, this is the new normal. We are demographically upside down and no country can succeed when those numbers exist.
No one is to blame, but as we approach Japan-like numbers (half of the population categorized as senior) the economy will never return to “normal”.
Medicare, private pensions and social security worked fine when people worked until they were 65 and then promptly died at 66.
I have already apologized to my nieces (both in their 20’s) as our baby boomer voting block gains increased control.
We will have to tax them to death as we avoid that fate due to medical innovations.
I will probably live another 20 or 25 years and I am sure I will never again see the economy of the 90’s (when any idiot could figure out how to make money).
Get used to it folks, this is it!
September 17th, 2012 at 3:55 pm
Oil is up because of increased consumption.
The U.S. is now producing more oil than any time in our history and we are more efficient than ever before.
But of course it is not “our oil” and it enters the same international bucket.
I am going to make a prediction, regardless of who wins the presidency; oil prices will be higher in two years.
I am not exactly Nostradamus and that one is easy.
In fact, as of December 2011, the U.S. Census Bureau reports,
“For the first time, the top export of the United States, the world’s biggest gas guzzler, is – wait for it – fuel.
Measured in dollars, the nation is on pace this year to ship more gasoline, diesel, and jet fuel than any other single export, according to U.S. Census data going back to 1990. It will also be the first year in more than 60 that America has been a net exporter of these fuels.”
Drill baby, drill.
September 17th, 2012 at 4:40 pm
“We will have to tax them to death as we avoid that fate due to medical innovations.”
Refreshing when liberals admit to the inevitable consequences of their policy achievements over the last decades. It’s also a soulless admission that people of conscience would fight to prevent.
September 17th, 2012 at 4:47 pm
“Anyone waiting for our economy to return to “normal” will die of old age waiting.”
Thats refreshing.
Sounds to me like you’re just backing yourself in case this jerk gets re-elected.
Then again, whats normal for moonbats is called pick pocketing.
Sounds like you had one too many, screwed the fat chick,then married her just so you could say it was true love and have some dignity in public
September 17th, 2012 at 4:53 pm
“Oil is up because of increased consumption.”
Riiiiiiiiight. Half a billion tweaking Muslim crack monkeys in heat across the globe has nothing to do with it.
At 5.00 a gallon I’m buying all I can !!!!!!
Good grief dude, pull it out before I laugh me a hernia.
September 17th, 2012 at 5:05 pm
“The U.S. is now producing more oil than any time in our history and we are more efficient than ever before.”
Poppyc0ck !!!
The highest year for U.S. production was in 69.
Today its at 1940 levels.
http://aspousa.org/peak-oil-reference/peak-oil-data/anwr-and-offshore-drilling/
Stop talking outcher butt…pleeeeease ?
September 17th, 2012 at 5:12 pm
This is like listening Anna Nicole say she quit drugging
September 18th, 2012 at 4:08 am
@ buzzbee
The stock market is up, partly due to it being the only other game in town, since bond yields are so low, but also because it is a futures market and therefore subject to the value of the dollar. Which, Obama and Bernanke have been busy trashing the past four years.
Let’s see…,
The price of gold has more than doubled since Obama took office.
The price of gasoline has doubled since Obama took office.
The prices for all of your major grains (wheat, corn, rice, etc.) have all doubled since Obama took office.
So is it any wonder that the stock market has been inflated as well?