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Lee
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ONE MORE TIME
A comment by Joe Lee III
There are varying degrees of celebration over the recent stock market value increases.
Warning: Do not be too jubilant.
There is a reason for the high stock market -- not a very good reason -- but a reason nonetheless.
In the past four years, the Federal Reserve, under the leadership of Ben Bernake, has printed trillions of dollars to prop up the Obama Administration’s unprecedented spending and borrowing.
We have not been able to determine the exact “value” of Bernake’s “Quantitative Easing,” but it is safe to say he has created two trillion dollars and still counting.
This newly-created extra money has to go somewhere.
Since printing large supplies of fiat money (so called Quantitative Easing) to keeps interest rates down, the only game left in which to park money is the stock market.
The more money that is printed, the more the stock market goes up.
One might say, “what is wrong with this?’
There is nothing wrong with the stock market going up and American companies becoming more valuable -- nothing wrong if the picture is true.
Unfortunately, this counterfeit rise in the stock market prices is manipulated almost solely by the fed’s Quantitative Easing -- fake money policy.
The disaster will come when the Bernake Bubble bursts and hyper inflation takes its place.
Ironically, this hyper inflation might even fuel the stock market to higher levels. The devastation will come on Main Street -- in American homes -- as the prices of gasoline, clothes, food, and everything else doubles or triples because of Bernake’s attempts to protect Obama.
The median household income has declined four years in a row, under Bernake’s policy. When the Bernake Bubble bursts, it will fall more. The number of persons at or under the poverty level has greatly increased under the current administration. When QE-induced inflation hits, the poor will be devastated.
Of course, not all of this is Bernake’s fault or Obama’s fault.
Congress has to share in the blame, but history will forget the names of the senators and congressmen involved. Bernake’s name will be a mere footnote.
History will not forget the name of the president who was in charge when it happened.
Bernakie and Obama are betting (and hoping) that they will both be out of office before the hyper-inflation explosion brings our nation to its knees.
Publisher@GrenadaStar.com
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