The prior blast e-mails have sidestepped economics, perhaps because of the fact that so much of the

back-and-forth arguments are based upon theorizing; nevertheless, the political component of myriad
assertions can be distilled andwhen necessarycompared/contrasted with definable truths. Indeed,
inasmuch as pushing the inherent income-inequality is a staple of BHO/Dems who are desperately trying
to change-the-subject, a modicum of attention must be paid to such concerns; of greater import are the
issues regarding the VA domestically [More VA Whistleblowers Coming Forward] and Iran overseas
[Israeli defense official warns of 'storm on horizon'], but they have received considerable attention and,
thus, detailed analysis can be deferred. The bottom-line point is that BHOs fiscal management is c/w his
liberal tax/spend values; thus, BHO Lies about the DEBT CEILING and, thus, the dire state of our debt.
The Credit Crisis has longitudinal roots [over the half-decade of BHOs Presidency] and resolving it will
necessitate another half-decade of reversing established-trends; auditing the-fed wont suffice.






Currently, it seems the economy is demonstrting a combination of Stagflation [stagnant
economic growth, high unemployment and high inflation] and Inflation [a rise in the
general level of prices of goods and services in an economy over a period of time.
[When the general price level rises, each unit of currency buys fewer goods and services;
consequently, inflation yields a reduction in the purchasing power per unit of money.]
Many economists feel BHOs Big Government approach has worsened the fiscal-crisis,
as america-has-fallen-to the level of being only the worlds-17
th
-most-free-economy.



BHOs approach is to jawbone with the business-community [obama-says-he-wants-to-partner-with-
american-business] and with the public [income inequality!], attempting to lull people into forgetting
that The Left Loves Poor People, for their mere existence enables him to bask continually in the bright
sunshine of good-intentions. He uses this misdirection while knowing behind-the-scenes-cronyism-
planted-the-seeds-of-the-financial-crisis and while ensuring his crony-economy kills the-middle-class
[e.g., an obama-donor-gained-nearly-$1-billion-in-tax-credits-in-solyndra-bankruptcy].



Predictably, when the CBO Compared the Compensation of Federal and Private-Sector
Employees, it found the Political class has it much better than private sector; indeed,
washington-sees-incomes-soar-as-most-of-the u-s-declines; perhaps awareness of this
fact explains why the swiss_rejected_25_per_hour_minimum_wage. This campaign to
add class-warfare to his racism/sexism themes [e.g., mandating companies disclose-ceo-
to-employee-pay-ratios] is crass, cynical and caustic [obama-administration-threatens-
the-dreams-of-low-income-students-in-louisiana].



This contrasts with the GOPs approach, manifest through Sen. Lees pro-family tax-plan and the fact
that miamis-back thanks-to the mayors-pro-growth-strategies. They fear America is in rapid-decline
economically, as well as in other arenas (e.g., military), and they fear a prediction by a Canadian
billionaire may indeed materialize: the end of US Dollar as the world's reserve currency. They note that
Right-to-Work Arizona Tops List of Best States for Job Growth and, in contrast, they lament the fact that
Unions Use Students as Bargaining Chips. They are pro-growth [e.g., Sen. Toomey Discusses The reason
to repeal the renewable fuel standard On The Senate Floor] and want the Keystone XL-Pipeline to be
built [yielding both jobs and greater energy independence that could, for example, help the Ukraine].



They lament labor-stats [Latest Rosy Unemployment Claims were BS...AGAIN!] because
the decreased unemployment rate is due to an exodus of job-seekers from the
marketplace; 47.9-million-americans are looking-for-work. They claim BHO has created
more-conservatives-than-he-has-jobs [and, remember, the end of sequestration yielded
the loss of precisely one (1) job]; at 42 months-and-counting, the current job recovery is
the slowest-since-truman-was-president, and they shudder when they observe that
unemployment is so high in france that it forces-stores to close-early. [Think of the fact
that fast-food restaurants are increasingly using electronic-ordering machines when
noting the cynical story of the Workers rights activist who filmed himself harassing a
ticket agent at a bus terminal after the agent misunderstood his ticket order; the liberal
told the man that he hopes he loses his job to an electronic ticket machine.]



Thus, BHO is consciously expanding the Welfare State, trying to create a permanent Dem-electorate;
poverty is stuck at 15% [a record 46.5 million], and 6.4 million more Americans are living in poverty
under BHO. The definition of poverty includes having Air Conditioning, Cable TV, and an Xbox, and
efforts to cut-back continually fail [e.g., Congressman Issa Calls for the FCC to Halt Life Line Program
(a.k.a. Obama Phones). Food-Stamp usage is sky-rocketing [house-passed-bill-cutting-40-billion-from-
food-stamp-program; Planned cuts in food stamps decried; snap-food-stamps-showdown-set-in-house;
and Tattoo Parlor Took Food Stamps as Payment]. People Won't Work for Food Stamps, for today's
food-stamp debate has echoes of welfare reform; thats why bills have been introduced in michigan that
would make-welfare-recipients [gasp] work-for-their-benefits and pass a drug-test.



Consider what occurred six months ago, when Dems again pressured the GOP to Extend
Unemployment Ins, asserting that more than one million people unable to find work
would otherwise see their assistance expire just after Christmas; Dems on the House
Ways and Means Committee sent a letter to Rep. Dave Camp (R-Mich.) asking the
panels chairman to hold a hearing on the approaching end of the federal Emergency
Unemployment Compensation program, claiming it to be an urgent economic issue.


bill_maher_rips_takers


BHO and the Fed papered-over these concerns, even if justice is -not-being-done-on-wall-street; in this
What, Me Worry? stock market, Investor sentiment is dangerously exuberant. After Congress-quietly-
overhauled-its-insider-trading-law, it was discovered that new-regulations-killing-small-banks were
making-too-big-to-fail-banks-even-bigger; when ag-holder met-with-jpmorgan-ceo-to-discuss-how-the-
bank-can-get-off-the-fraud-hook, he was arguably extorting compliance with the BHO-agenda.





Meanwhile, the current Monetary Policy was depicted by the WSJs Assistant editorial
page editor James Freeman [after the Fed decided to maintain a $85 billion-a-month
bond-buying program [$45 billion of treasuries and $40 billion of mortgage-backed
securities] thusly: Rich get richer and Good news for Government. Two asset bubbles
housing and government debt .... Government grows because borrowing is low cost.
Fed Reserve buys two assets mortgage debt and government debt. 0 interest rate
artificial yield card. Fed dominant force not productivity and people making things and
innovation.] Thus has the pumped-up-fed continued the-monetary-stimulus, seemingly
stabilizing americas-economy; the question that has arisen is whether there is any-way-
for-the-fed-to-get-out-of-qe, noting that the economy is still very weak and is arguably
being propped-up by mega-purchases with money created out of thin air (viewed as an
extremely bearish indicator).



Likely affecting the Feds behavior are bad signs for the global economy [rising interest rates, cooling in
the housing market, continued weakness in Europe, and an implosion in emerging markets,
particularly the popping of the credit bubble in China]; also at-play is continued deleveraging the
nations financial sector, which shed another $15 billion in debt in the first quarter. At the same
time, the Fed predicted just 2 to 2.3% growth in real Gross Domestic Product for the remainder of 2013,
even as the economy was only growing at a 1.8% annualized rate. But even if the Fed is right about the
remainder of the year [and it turned-out it wasnt], 2 to 2.3% growth was nothing to write home about.



Overall, the implications of QE forever are fairly clear. Continued expansion of the
monetary base by $85 billion a month will facilitate:
1) More debt monetization by the federal government, which continues to have a
willing buyer for its unbridled spending sprees.
2) It allows foreign governments to continue to dump U.S. treasuries for profit.
From the end of March through July, foreigners dumped $131.7 billion of U.S. debt after
increasing assets for 15 months straight, according to data compiled by the U.S.
Department of Treasury. These four months mark the largest drop in foreign holdings of
treasuries on record, detailed monthly Treasury data going back to the year
2000 reveals.
3) It helps banks to continue to sell junky mortgage-backed securities for 100
pennies on the dollar.
4) Banks will continue to stockpile the QE cash as reserves in excess of statutory
requirements, which have swollen by $226.7 billion since June alone to now $2.17
trillion.
5) Overall, its just another bailout for governments the world over, the housing
market, bond investors, and other Wall Street bigwigs.