The Obama Adaministration and the Obama Campaign have been contridicting each other regarding the economy for months now. The latest example of this the announcement that the Federal Reserve would pump $40 billion of new dollars every month into the American economy in hopes of jumpstarting this anemic recovery.
The first two "stimulus" programs added $2.8 trillion to the National Debt, with little economic growth to show for it. A third addition of debt our children and grandchildren will have to pay is expected to fare little better. Liberals are completely committed to the theory of increased government spending is the key to economic growth. One has only to look to Europe to see the folly of this theory.
However, less than two months from the presidential election the Obama Campaign will have you believe the nation's economy is well on the road to recovery.
In the entire month of August, the United States of America created only 96,000 jobs averaging $10 per hour. This is contrasted by Thursday's news that last week 388,000 people filed first time unemployment benefits, and another 360,000 Americans stopped looking for work all together.
If the Obama Campaign is to believed, then why the need for another stimulus? The Fed is simply going to print tens of billions of new dollars and add that amount to the deficit. How completely irresponsible.
Dollars, like anything else, are not unlimited. When the government floods the markets with freshly printed money the value of each dollar goes down. The positive effects are short term and fleeting similar to a sugar high off cotton candy. Gee, something happening in the next two months that President Obama would want some short term gain for?
The negatives have a far more lasting effect. The government will print these new dollars instead of the method of choice for the Obama Administration, borrow from China. When the government prints unsustained dollars, the value of the dollar goes down versus foreign currency. Therefore, it requires more dollars to purchase imported items. Everything from bananas and coffee to gas to diamonds will cost more in 2013. Investments will see less return as American stocks will be less attractive. Seniors especially will see an anchor on their investment income.
These facts coupled with the expiration of the Bush Tax Cuts, increased taxes and fees from ObamaCare, and we are looking at another severe recession. The average family income in the United States fell from $55,000 in 2008 to $50,000 in 2012. If a family has less money coming in, less return on investment, higher taxes, higher cost of living, less money to improve their lives.
It is basic, common sense economics. It is very transparent that the main objective of this plan is get President Obama a second term. After all, there is a saying in Washington, the first goal of any first term administration is to become a second term administration.
Due to this announcement, the FY2013 deficit projected at $1.2 trillion will be revised to $1.7 trillion. If we balanced the budget next year and kept it balanced moving FORWARD (Obama's new favorite word), we will be paying $10 billion a year for over 200 years just to meet the interest on this debt.
May God forgive us for what we are doing to our children.