On July 17, 2012, Senator Chuck Schumer(D-NY) urged Federal Reserve Chairman Ben Bernanke to start quantitative easing or similar measures before November.(November 2012 is the presidential election)
Via Big Government:
Yeah, that’s right. Pass the buck to Bernanke because Barack Obama sure ain’t gonna cut government spending or cut taxes, so all that’s left is to order the Fed to print more money. And before November, just in time for Obama’s re-election. If Bernanke had a magic stimulus under his bed, he should have whipped it out four years ago for the good of the country. Now, it’s just obvious that he’ll be inflating the economy for political reasons.
Sen. Jim DeMint (R-SC) warned against the plan, saying, “If we’re printing more money to buy more of our national debt, we are diluting the value of our dollar over time.”
Today we see the Fed is considering pumping more money into the economy and inflating the currency by the end of September.
Fed "hawks" are more concerned about inflation resulting from easing the path toward inflating the currency, but are keeping mum for now. "I know people feel like we haven't made enough progress," James Bullard, St. Louis Fed president, said, allowing that he would go along if inflation falls too low or if the economy takes a brutal hit.
Some officials are counting on "Operation Twist," under which the Fed is buying $267 billion worth of long-term Treasury securities and selling an equal amount of short-term securities so they can depress long-term interest rates to spur spending and investment.
But the option creating the most dissension is "quantitative easing," or QE, in which the Fed has been acquiring long-term securities with newly created money. It has already been tried twice, once in 2009 and early 2010, when the Fed bought $1.25 trillion worth of mortgage-backed securities and $300 billion of Treasury securities and debt issued by Fannie Mae and Freddie Mac, and a second time in 2010 and 2011, when the Fed bought $600 billion of Treasury securities.
Bernanke has said repeatedly that the Fed will not take political considerations into account. We’ll find out soon if he is telling the truth.
The Feds previous actions did nothing more than artificially stimulate the economy evidenced by the fact that the economy is stagnating again.
Simply slapping a band-aid on a gushing wound will not heal the wound and artificially stimulating the economy will not stop the endless cycle of creating an illusion that the economy is getting better when it isn't.
Job creator, employers, business owners have consistently told America what needs to be done in order to create stability so they will expand, hire and invest which automatically would stimulate the economy naturally, but the Obama adminsitration and liberals across the board refuse to listen.
Democratic Hotel Mogul, Steve Wynn, July 2011:
I believe in Las Vegas. I think its best days are ahead of it. But I'm afraid to do anything in the current political environment in the United States. You watch television and see what's going on on this debt ceiling issue. And what I consider to be a total lack of leadership from the President and nothing's going to get fixed until the President himself steps up and wrangles both parties in Congress. But everybody is so political, so focused on holding their job for the next year that the discussion in Washington is nauseating.
And I'm saying it bluntly, that this administration is the greatest wet blanket to business, and progress and job creation in my lifetime. And I can prove it and I could spend the next 3 hours giving you examples of all of us in this market place that are frightened to death about all the new regulations, our healthcare costs escalate, regulations coming from left and right. A President that seems, that keeps using that word redistribution. Well, my customers and the companies that provide the vitality for the hospitality and restaurant industry, in the United States of America, they are frightened of this administration.And it makes you slow down and not invest your money. Everybody complains about how much money is on the side in America.
You bet and until we change the tempo and the conversation from Washington, it's not going to change. And those of us who have business opportunities and the capital to do it are going to sit in fear of the President. And a lot of people don't want to say that. They'll say, God, don't be attacking Obama. Well, this is Obama's deal and it's Obama that's responsible for this fear in America.
The guy keeps making speeches about redistribution and maybe we ought to do something to businesses that don't invest, their holding too much money. We haven't heard that kind of talk except from pure socialists. Everybody's afraid of the government and there's no need soft peddling it, it's the truth. It is the truth. And that's true of Democratic businessman and Republican businessman, and I am a Democratic businessman and I support Harry Reid. I support Democrats and Republicans. And I'm telling you that the business community in this company is frightened to death of the weird political philosophy of the President of the United States. And until he's gone, everybody's going to be sitting on their thumbs.
People like Mr. Wynn are our job creators, our investors, the people that boost our economy and they are telling the country what the underlying problem is and how to fix it.
Lest anyone think Steve Wynn is nothing more than a billionaire out for nothing but personal gain, understand this is the man that has been dubbed "Secret Santa."
Now Wynn and registered Democrat is donating to pro-Romney superPAC Crossroads GPS, according to Politico..
Artificially stimulating the economy by quantitative easing is nothing but an illusion to convince Americans things are getting better, but that illusion fades as it has done the last two times the Feds tried to cover for Obama and doing it again before the November presidential election will be nothing more than abuse of power by the Fed to get Obama reelected.
(Changes have been made to this post to include the Politico article connecting Wynn with Crossroads GPS)