People who possess a marginal grasp of economics and business have a good idea what is going on with the Obamanomic caused economic calamity right now. True, this idiocy started when George W. Bush was in office, but just as I said YEARS ago, Bush was pretty much just like his daddy, just marginally better.
To begin problem solving, you must first determine the cause of the problem. People in government do NOT handle problem solving that way, they throw money at a problem because that is the only thing they understand.
This minimum wage increase caused everyone else to have less disposable income because all of the sudden (for no reason at all to "Progressives"), prices started skyrocketing. When people have less money, they start to cut back on stuff. It just so happened, they started defaulting on their mortgages because they purchased more house than they could afford because of stupid government forced lending practices.
Anyhoo, to keep the market stable, to offset the stupidity of raising minimum wage (which always crashes the economy for one reason or another), the Federal Reserve started pumping money into the four largest banks on Wall Street to keep them afloat after all of the BAD MORTGAGES started having an adverse affect. They called this "Quantitative Easing." Normal people call it borrowing money to pay for your already borrowed money or "monetizing the debt."
Those money pumps from the Fed have never stopped since November of 2008, they have only gotten larger and larger month to month. You can see from the graph that there were times when the market started making some corrections and then an event happened to start it back upward again. Those periods are EXACTLY when the Fed increased the money pumps.
It defies all mathematics that to this day, the federal government continues this practice KNOWING that there is no possible way that it will work and that the QE has to come to an end at some point. QE2 ends with the month of June and Ben Bernanke has said they would no longer continue those money pumps after that time.
The market is going to crash and HARD. There is nothing else that can happen. Why have they done this for so long? Quite simply, because they are stupid. They appear to honestly believe that the government can take money from the people that earned it, redirect it to the banks that did not, falsely prop up those banks, tax that money into oblivion, and NOTHING will get hurt in the process.
They are WRONG.
Now, what is going to happen after the market plummets at the end of June? They will start the money pumps again to keep the appearance of the market being stable. They have no other choice. All the while, what little money that we individuals STILL have will be worth even less. Prices will continue to EXPLODE because of all the excess money that has been printed. Just look at the numbers right now.
My industry is dead, how about yours?
Companies that pushed for ObamaCare will continue to get waivers FROM ObamaCare in ever increasing numbers.
Democrats will even continue to try to kill your grandparents, too.
Democrats will continue to attack the very industries that are VITAL to our survival.
Unemployment is going to continue to explode. It is hovering around 22% right now.
Other countries that are totally dependent on the United States for their very existence will continue to collapse.
Here are 50 things that you should know about the Obama enhanced Depression.
And here is about thirty minutes of Dr. Sowell telling us what is happening, what has happened, and what is going to happen, if we keep following the "Progressive" ideology that has never been successful in anything.
Folks, it is way past time to light the torches, storm the Capitol, and demand our money back.
Please take the time to comment.