It’s actually starting to get difficult keeping up with all the money the Obama Administration is spending nowadays:
As expected, the Fed kept its benchmark interest rate virtually at zero. But in a surprise, it drastically increased the amount of money it will create out of thin air to thaw out the still-frozen credit markets that have cramped lending to consumers and businesses alike.
The Fed said it would purchase an additional $750 billion worth of government-guaranteed mortgage-backed securities, on top of the $500 billion that it is currently in the process of buying. In addition, the Fed said it would buy up to $300 billion worth of longer-term Treasury securities over the next six months. That would tend to push down longer-term interest rates on loans of all types.
All of these measures would come in addition to what has already been an unprecedented expansion of lending by the Fed. Since last September, the central bank has roughly doubled the size of its balance sheet to nearly $2 trillion from $900 billion — even before the action Wednesday — mainly because of its efforts to rescue credit markets…
Starting last September, the new lending programs — including money for bailouts of individual companies like Citigroup, American International Group and Bank of America — have caused the Fed to print new money at the fastest pace in history. But much of that money has remained dormant, because the economic downturn has made banks reluctant to lend and businesses and consumers either reluctant or unable to borrow.
It’s sad that a conservative’s best ally is Communist China when it comes to teaching Obama how to be fiscally responsible. Money Quote:
Of course, what the Chinese are worried about is not that the United States government will default on its bonds. That obviously won’t happen. The Chinese concern, now being expressed openly for the first time, is that the U.S. will adopt the standard debtor’s remedy of inflating its currency and paying back its debts in shrunken dollars. Why are the Chinese worried about this? Because Barack Obama’s budget proposes to borrow trillions of dollars, injecting them into the U.S. economy without any offsetting wealth being created. The inevitable result, as any economist not in the pay of the Obama administration or the Democratic Party will tell you, is inflation.
Thank you Obama for helping create the backdrop for inflation after Reagan conquered it in the early 1980s. Baby-boomers everywhere are proud of you of stealing their life-savings by injecting inflation into the economy and turning money that was worth hundreds and thousands into dollars and change…change you can believe in!!!
I wrote to my Representative, William Clay, this past week to ask him why he supported Obama’s spending bills. Specifically, I wrote to him and asked:
Dear Congressman Clay,
As a young professional who is fiscally conservative and socially liberal, I am worried about the amount of spending the Obama administration is spending. Specifically, I am concerned that spending $1.5 Trillion dollars on bailing banks, businesses, and debt beat homeowners will not pull the economy out of a recession but, will instead, sink the US into a deeper recession with a higher amount of debt. Considering the amount of reform that Obama wants to push through Congress comes in the form or entitltement programs, how do you propose that taxpayers pay for all these spending once the different nations that bought our debt want their money back?
Here is the response I got.
March 13, 2009
Dear Ms. XXXXX:
This will let you know I received your recent Email message commenting on the federal budget.
I appreciate having the benefit of some of your thoughts about our nation’s spending priorities. Please be assured that I will give thoughtful consideration to the issues you raised as I work to represent the interests of the First Congressional District of Missouri in the U.S. House of Representatives.
Thank you for your communication. I hope you will continue to feel free to keep me apprised of your interests and opinions in the future.
Wm. Lacy Clay
Member of Congress
I hope that voters, like me, toss you out of office the next chance we get.
Seriously, that’s the best answer you can give? That’s not an answer! It only says “thank you for writing to me but I really don’t care what you have to say.”
The article found below is no longer available on either the LA Times website or the Chicago Tribune which is where you would go if you typed in “the economy may never recover” into a Google search. Only a cache remains. Hmm…I wonder what happened to it? Could it be similar to airbrushing that occurs on the Obama Wikipedia page as well as the White House websites? PDF copy of the story available upon request. Partial copy made of website in case Google scrapes the cache too.
This is Google’s cache of http://www.mcall.com/news/local/all-obama-elkhart-020909-cn,0,6053533.story. It is a snapshot of the page as it appeared on Mar 7, 2009 08:06:33 GMT. The current page could have changed in the meantime. Learn more
These search terms are highlighted: economy may never recover
Obama: Economy may never recover without stimulus plan
By Peter Nicholas | Tribune Washington Bureau
6:29 PM EST, February 9, 2009
ELKHART, IN – Returning to campaign form, President Barack Obama on Monday left behind the fractious debate in Washington over his stimulus package, flying to this struggling middle-American city to deliver a message that the economy may never fully recover if the plan isn’t passed.
Obama also used the forum to make a veiled swipe at Republicans, suggesting the minority party is offering “the same failed ideas that got us into this mess in the first place.”
With Congress still negotiating details of the $800 billion-plus plan, Obama urged speedy completion of the bill. He got a largely enthusiastic reception from the 2,500 people in attendance, though there was an undercurrent of unease in the gymnasium bleachers.
As Obama walked on stage, a lone voice in the crowd implored the president to create new jobs. In the past year, unemployment in the city – a center of RV manufacturing — has jumped from 4.7 percent to more than 15 percent.
In his opening remarks, the president cautioned that “if we don’t act immediately,” unemployment across the country will rise, and “our nation will sink into a crisis that, at some point, we may be unable to reverse.”
Obama’s trip marked the start of a road show that continues Tuesday with a visit to Fort Myers, Fla. – another region hit with high unemployment and home mortgage foreclosures.
The president will get a bit of bipartisan validation when he arrives in Fort Myers: Florida Gov. Charlie Crist has agreed to introduce Obama, the White House announced Monday.
Behind the presidential trips is a White House calculation that the messy argument over components of the stimulus plan has proved to be a diversion, according to a presidential aide. By leaving Washington and speaking to Americans enduring the brunt of the economic downturn, Obama hopes to redirect attention to the need for the stimulus in the first place, the aide said.
Speaking to reporters aboard Air Force One, en route to Indiana, Press Secretary Robert Gibbs said: “This is not explaining to Indiana what’s going on in Washington. This is taking Washington to show them what’s going on in Indiana and all over the country – and why people are hurting.”
The president said he “made a mistake,” adding he doesn’t want to “send the signal that there are two sets of rules:” one for people who diligently pay taxes, another for those who don’t.”
The president ticked off ways the stimulus would help Indiana residents who have been laid off.
Obama mentioned an extra $100 per month in unemployment insurance, government subsidies to make temporary health insurance less costly and more job training.
“This is not just our moral responsibility – to lend a helping hand to our fellow Americans in times of emergency – it also makes good economic sense,” Obama said. “If you don’t have money, you can’t spend it.”
UPDATE: To clarify, I am saying that ever since Obama announced today that the economy is not doing that bad, it’s impossible to find any prior articles stating that “economy may never recover without stimulus plan” without looking through Google’s Cache. Of course, you can still find his prior speech stating “our nation will sink into a crisis” but those webpages don’t show up when you search for “economy may never recover” into a Google search. I used to be able to find these websites prior to his announcement.
In a little over 50 days, Obama has spent:
(1) $787 Billion on “stimulating the economy” when the bill reeks of pork-barrel spending
(2) $275 Billion on paying for other people’s mortgages and home-equity loans(!!!)
(3) $410 Billion omnibus bill that, again, has all the trappings of pork
on the basis that the economy will never recover if these bills are not passed…
And now he says that the economic crisis isn’t that bad? Great! Then let’s CANCEL the first two bills. Spending more money than what Bush did in eight years in office is hardly an achievement that taxpayers should allow President BO get away with.
Confronting misgivings, even in his own party, President Barack Obama mounted a stout defense of his blueprint to overhaul the economy Thursday, declaring the national crisis is “not as bad as we think” and his plans will speed recovery.
Challenged to provide encouragement as the nation’s “confidence builder in chief,” Obama said Americans shouldn’t be whipsawed by bursts of either bad or good news and he was “highly optimistic” about the long term.
The president’s proposals for major health care, energy and education changes in the midst of economic hard times faced skepticism from both Democrats and Republicans on Capitol Hill, as senators questioned his budget outlook and the deficits it envisions in the middle of the next decade.
But Obama, speaking to top executives of the Business Roundtable, expressed an optimistic vision and called for patience.
Richard Parsons, chairman of beleaguered Citigroup Inc., asked if Obama could offer some help in a national battle “between confidence and fear.”
“A smidgen of good news and suddenly everything is doing great. A little bit of bad news and ooohh , we’re down on the dumps,” Obama said. “And I am obviously an object of this constantly varying assessment. I am the object in chief of this varying assessment.”
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