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Archive for November, 2010

Obama’s mid-term election loss, and QE2.

Obama’s mid-term election loss, and QE2.

It was not unexpected that Obama and his party would get a spanking from disillusioned U.S. voters, in fact, the Democrats should be thankful that they were able to keep a slight majority in the Senate.

About a year ago, I had mentioned some of the reasons as to why Americans had become disenchanted with President Obama’s policies.

 

  • High unemployment, (in spite of 10,000 points at the Dow and so-called economic growth ballyhoo.)
  • The disappointment of the progressive forces that helped put Obama in the White House. (Especially young white voters).

*Disparity between campaign rhetoric and reality.

  • The uncertain, dim future of the U.S. economy.
  • The unpopularity of the wars in Iraq and Afghanistan, etc.

Since then, Obama has elected to continue with the same failed policies which have not been able to reduce neither the unemployment nor the deficit. At least, one would have assumed, that the main reason for the stimulus package would be to reduce the unsustainable unemployment rate in the U.S.

This time around, the Federal Reserve Bank of the U.S. is coming up with quantitative Easing 2, to boost the very weak economic recovery which could not reduce the high unemployment. By the way, according to the White House, recession had ended about fourteen months ago. How funny and unrealistic the White House could get ? Continue to be this funny, Obama could become one of the irrelevant U.S. Presidents. Only hype, but no substance. The majority of the people that voted for Obama, voted for him hoping that he would be a different type of a leader. He is proving them wrong. Like the rest of most of the past U.S. Presidents, Obama is more interested in the welfare of the greedy bankers who are actually destroying America, than he is in fighting for the interests of the millions of common  people that actually put him in the White House.

According to Charles Hugh Smith, of Two Minds:

“the “problem” in the U.S. economy is not a lack of credit or high costs of credit: the problem is too much debt and the fact that there is no market demand which requires expanding business. Indeed, everyone already has everything, and replacement of existing goods in a bloated consumer economy cannot generate GDP growth of 3-5% a year. Rather, replacement instead of expansion means the GDP will contract by 3-5% each year–a fact that is already visible if you  emoved the 12% of the economy that is Federal spending generated by the $1.6 trillion annual Federal deficit.”

Read more: http://www.businessinsider.com/quantitative-easing-fail-spectacularly-2010-10#ixzz14DSdwyRc

By the way, I am not against government stimulus per se, I am only against when billions of tax payers’ dollars is handed to U.S. banks and other financial institutions who happen to be the creators of the economic mess the U.S. is in, to begin with.

As long as stimulus money is not used on programs that directly benefit the citizens, Quantitative Easing 2 would not add a single U.S. citizen to the employed list. As usual, QE2 also would continue to prolong the misery and tragedy of the American people by giving more stimulus money to the banks, so that, they continue with their greed of amassing more profits while the deficit becomes insurmountable and life becomes desperate for the average U.S. citizen. Here is the truest example of neo-liberalism in action.

Professor Mekonen Haddis

 

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