As outlined in 2012 Election: The 106 BEST Reasons NOT to Vote for Obama, the Federal Reserve has repeatedly engaged in monetary policy that is not helpful to “normal folks” (ie – not financial institutions) because the chicanery offers the sort of short-term results that pundits love to laud as proof of capital-R “Recovery.” Quantitative Easing is the magical elixir to end all our woes…
Too bad it hurts the middle class by artificially manipulating interest rates and driving the value of currency ever-downward.
Today’s action may take the cake. Per Drudge, the Fed announced that it will be purchasing $40 billion in mortgages per month until after the election. The markets have responded strongly as they always do when “Pump Priming” takes place.
In short, this is a thinly-veiled attempt to make the markets surge less than two months before the election. If it has an effect (and it WILL — there is a moment after you begin peeing into the wind before your leg gets wet), it increases Obama’s chances for reelection.
Sadly, the failure of this bout of quantitative easing is as predictable as the last, and as the markets seek their level in March of next year (assuming the usual Holiday Quarter bump), we could be facing utter disaster if Obama is still at the helm. Taxmageddon is still headed our way in January, and the ONLY thing we can do, as American Citizens, is vote for Mitt Romney. He has sworn that he will fire the current Fed Chair, end Taxmageddon before it starts, and repeal Obamacare.
At the risk of sounding like a holographic Princess Leia, he’s our only hope.
