Henry Morgenthau, after two terms of FDR’s “New Deal”, stated, “We have tried spending money. We are spending more than we have ever spent before and it does not work…After eight years of this Administration we have just as much unemployment as when we started…And an enormous debt to boot!”
Many consider Federal Reserve Chairman, Ben Bernanke, to be a financial genius. However, a closer look at some of his most crucial predictions suggest the opposite.
First, in early 2008, Bernanke predicted that the US would not fall into a recession.
In early 2009, we are now mired in the worst recession since the Great Depression.
Second, in early 2007, Bernanke predicted that the subprime mortgage mess would be grave but largely contained.
In early 2009, housing prices have plummeted and foreclosures have exploded.
Third, in early 2008, Bernanke predicted some small banks would fail, but the largest institutions would remain healthy.
Beginning in the summer of 2008, the giants started to crumble. IndyMac failed, then Washington Mutual, then Wachovia was sold to Wells Fargo, then Citigroup & Bank of America received billions of dollars of bailout money, and now the FDIC is considering as much as $500 billion to cover failing banks in 2009.
Despite these critical errors in economic forecasting, Bernanke continues to play a leading role in directing our nation’s fiscal and monetary policy. Neither Bush nor Obama even considered replacing him.
Perhaps a better policy would be to select those few individuals who accurately predicted the current economic crisis and allow them to propose potential solutions.
The time has come to stop rewarding failure.
Obama’s defense budget is virtually identical to that of the Bush administration’s, around half a trillion dollars. However, with a nearly $2 trillion budget deficit and over $11 trillion of national debt, can we afford to be in over 90 countries around the world? Or is it possible, as some have suggested, to reign in the global empire, cut spending, and defend America with a more focused, cost effective strategy?
This topic is debated in the following CNBC video.
Congresswoman Michele Bachmann is introducing legislation to prevent the US Dollar from being replaced by any global currency.
This is the first, big step toward protecting America’s monetary sovereignty. Next, Congress should stop agreeing to nearly $2 trillion budget deficits, and the Federal Reserve should quit printing trillions of dollars out of thin air. Then, we might actually restore strength to our Dollar.
Read the article here.
The Fed’s preferred gauge of prices, which excludes food and fuel prices, rose 1.8% in February. This coincides with two, consecutive increases in the Consumer Price Index (CPI). In addition, AAA announced that gasoline prices have risen 10 cents in the last month. Is this the beginning of a major, inflationary event?
Top financialy analysts, such as Peter Schiff, Marc Faber, Jim Rogers, Warren Buffett, and a few others have warned that the Fed’s printing spree may initiate a significant bout of inflation commencing as early as next year. The latest price hikes and last week’s 4% drop in the Dollar may have hastened the onset of their prediction.
Read the article here.
Illinois is running a massive budget deficit. Instead of making the painful, but necessary spending cuts to get its budget under control, the new Governor is going to raise income taxes, corporate taxes, cigarette taxes, and automobile licensing fees.
Illinois isn’t the only state adopting major tax hikes. California, already in a record breaking budget deficit, just passed $13 billion of new taxes into law. The Governors of Arizona and North Carolina are advocating significant tax increases as well.
Will your state be next?
Read the article here.
The Federal Reserve Transparency Act (HR 1207) now has the support of over forty Democrats and Republicans in the House.
The Federal Reserve, responsible for our monetary policy and the health of the entire financial system, has presided over at least six, major “Boom-Bust” cycles since its inception in 1913.
However, it is virtually unaccountable to Congress or the American people. With its inability to predict or to halt the latest financial meltdown, the Federal Reserve is finally coming under increased scrutiny.
Momentum to audit the Fed is rapidly growing in Congress. If it’s going to print, borrow, and lend trillions of our dollars, don’t we have a right to know how they’re spending our money?
While the American people are suffering from the worst economic downturn since the Great Depression, Congress is meeting to decide how best to decide the college football national championship.
So, don’t worry about the nearly $2 trillion budget deficit, $11 trillion national debt, or 650,000 job losses per month. Congress has all that under control. For now, they have more pressing matters, like deciding how a national championship playoff system should work.
Makes you want to cry.
Read the article here.
The Obama administration has predicted that 3.5 million jobs will be created and/or saved by its nearly $1 trillion stimulus package. However, a slew of economists have this to say regarding this seemingly bold claim:
“Very uncertain”
“Difficult to distinguish among alternative estimates”
“Subject to substantial margins of error”
As the ABC News article states, “Assumptions are piled atop assumptions, rules of thumb, historical experience, theory, and more than a little hope.”
As a result, such a claim cannot even be properly measured. It’s akin to a scientific model that can’t be put to the test. Such a model is effectively worthless.
Therefore, the claim that the stimulus package will save and/or create 3.5 million jobs is about as absurd as the Bush administration’s stubborn refusal to acknowledge the economic recession which commenced in late 2007.
Who are they kidding?
Read the article here.
After losing $2.8 billion last year, the agency is expecting a much bigger loss in 2009. Postmaster General, John Potter, said, “Without a change, we will exhaust our cash resources…We can no longer afford business as usual.”
The USPS has begun a number of cost cutting measures and has even proposed delivery cutbacks, as well as closing a number of small, rural offices. However, Congress has not been receptive to the latter proposals.
Read the article here.
