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Recovery for the One Percent (again)

June 2, 2013 by Jeff (ILoveCapitalism)

I partly made this point last week. Now here’s Marc Faber saying it well:

The Fed has been flooding the system with money. The problem is the money doesn’t flow into the system evenly. It doesn’t increase economic activity and asset prices in concert. Instead, it creates dangerous excesses in countries and asset classes. Money-printing fueled the colossal stock-market bubble of 1999-2000, when the Nasdaq more than doubled, becoming disconnected from economic reality. It fueled the housing bubble, which burst in 2008, and the commodities bubble. Now money is flowing into the high-end asset market – things like stocks, bonds, art, wine, jewelry, and luxury real estate.

Money-printing boosts the economy of the people closest to the money flow. But it doesn’t help the worker in Detroit, or the vast majority of the middle class. It leads to a widening wealth gap. The majority loses, and the minority wins.

Bold added. Faber has neglected to mention that Big Government is “closest to the flow” of anybody; money-printing is, first and foremost, a hidden tax to pay for Obama’s oh-so-ingeniously-productive(!) deficits and spending. And a regressive tax, at that. Obamunism at work!

By the way, the effect that Faber talks about is well known to Austrian School economists and other believers in sound money; it’s called the Cantillon Effect.

And if anyone wants to say it’s Bernanke doing it, not Obama, my answer is this: Yes, but Bernanke was re-appointed by Obama and is absolutely doing what Obama needs and intends.

Filed Under: Big Government Follies, Economy, Free (or Private) Enterprise, Obama Incompetence, Occupy Wall Street Tagged With: Economy, Obama, small government, sound money, the ninety-nine percent, the one percent

Recovery for the One Percent

May 27, 2013 by Jeff (ILoveCapitalism)

Even as I read about the stock market making new highs, I keep reading about more Americans on food stamps than ever before, more Americans quitting the workforce, old people who can’t get a decent income from their savings anymore, business people who can’t start businesses or who are cutting back or even shutting down, and Americans struggling under their debt loads and unable to make ends meet.

This is in Obama’s fifth year. Whom is Obama’s economic recovery (such as it is) for? Cui bono?

My answer is: Obama’s policies benefit the Big Government – Big Banking – Big Labor elites, in that order of seniority. My next question is: how did the world get to the point where the people who support Obama’s elitist policies are supposedly friends of the little guy?

Why isn’t Big Government recognized as the ultimate ‘special interest’? Why aren’t we all laughing in Obama supporters’ faces, when they pretend to stand for the People? And what will it take to get the average person to understand that she would find life much more feasible and affordable, if only America would return to a system of (genuine) free enterprise under sound money and small government?

Filed Under: Economy, Free (or Private) Enterprise, Obama Incompetence, Occupy Wall Street Tagged With: cui bono, Economy, Free Enterprise, Obama, Occupy Wall Street, small government, sound money, the ninety-nine percent, the one percentm

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