The Federal Reserve will spend $45 billion a month to sustain an aggressive drive to keep long-term interest rates low. And it set a goal of keeping a key short-term rate near zero until unemployment drops below 6.5 percent.
The policies are intended to help an economy that the Fed says is growing only modestly with 7.7 percent unemployment in November.
The Fed said in a statement issued Wednesday that it will direct the money into long-term Treasurys to replace an expiring bond-purchase program. The new purchases will expand its investment portfolio, which has reached nearly $3 trillion.
If this were to go on a year, that’s $540 billion worth of QE — or “money printing” as we used to say. That’s over $4,000 per household in the United States. And in the end we’ll be back right where we are (or worse)… with some inflation added for flavor.
During the campaign, Joe Biden said that Republicans had voted for a $500 trillion tax cut. Not to be outdone, here’s Rep. Sheila Jackson Lee (D-umb) on how much extra cash was in the public coffers when tax rates were higher during the Clinton administration:
“Remember, we had a $5.6 trillion surplus in 2000 – 2001 from the Clinton administration,” Jackson said in the interview while discussing fiscal cliff negotiations.
However, according to CNN Money, the “Treasury Department reported a budget surplus… of $127 billion” for fiscal year 2001 and a $237 billion surplus for fiscal year 2000.
Jackson Lee is obviously confusing surplus with the national debt, which was $5.6 trillion when Bubba left office. Only in the mind of a lib nutburger can a multi-trillion dollar debt be mistaken for a surplus:
The Pentagon’s budget is getting cut, but that hasn’t hindered the Obama administration’s ability to wage class warfare:
With lawmakers scheduled to return to work on Monday to begin intense discussions before a looming fiscal deadline, Mr. Obama’s aides are trying to harness the passions that returned him to the White House, hoping to pressure Republicans in Congress to accept tax increases on the wealthy. The president’s strategists are turning first to the millions of e-mail addresses assembled by the campaign and the White House.
Already, supporters are being asked to record YouTube videos of themselves talking about the importance of raising taxes on the rich. Aides said those videos would be shared on Facebook and Twitter and would be forwarded to centrist Democrats, as well as to mainstream Republicans, who they hope will break with their Tea Party colleagues.
Obama’s re-election is a clear signal that enough Americans who have been convinced that they are better off if somebody else is made to pay higher taxes. To me this is like being stuck in quicksand and recording a video about how much better off you’ll be if somebody else is pushed in with you. Misery loves company, and the people who capitalize on misery love idiots.
The unions tried to disrupt things, but it looks like that effort will fail big time:
After opening earlier than in previous Thanksgiving weekends, Wal-Mart reported its “best ever Black Friday” sales, including bigger crowds than last year, the company said Friday.
The retailer rolled out deals starting at 8 p.m. on Thanksgiving Day. From 8 p.m. to midnight, Wal-Mart processed nearly 10 million register transactions, handling 5,000 items a second, the company said. Mmore than 22 million shopped in Wal-Mart’s stores during the four-hour period.
Last year, the chain opened at 10 p.m.
More than 1.3 million employees are staffing the holiday weekend, Wal-Mart U.S. chief executive Bill Simon said in a statement.
Protesters made an effort though. I can’t help but wonder if the union sent those protesters out to picket in favor of a “living wage” while paying them minimum wage and offering zero benefits. They’ve been known to do that. Look for the union irony label.
I guess one thing Big Labor can consider a resounding success is this: Nobody was able to buy Twinkies at Wal-Mart today. That’ll teach ’em!
Because he’s worked such wonders with the U.S. economy. By now Obama’s probably convinced the leadership in Myanmar to sink a few billion into “clean energy” factories that will end up serving as stimulus for Burmese bankruptcy attorneys.
Obama was welcomed into the country by a hideous mural. I believe this piece is titled “Ear Leader”:
Update: If Bush did this it would be the top story on the nightly newscasts tonight highlighting how he’s embarrassing us overseas, but with Obama it’ll barely warrant a mention.
They waited until the day after the election to make the announcement — what a happy coincidence for Obama:
Boeing announced a major restructuring of its defense division on Wednesday that will cut 30 percent of management jobs from 2010 levels, close facilities in California and consolidate several business units to cut costs.
Boeing, the Pentagon’s second-largest supplier, said the changes were the latest step in an affordability drive that has already reduced the company’s costs by $2.2 billion since 2010, according to the memo.
The measures come as U.S. weapons makers are under pressure to cut costs and preserve profit margins amid dwindling defense spending in the U.S.
And if they’re cited for violating the WARN Act, who cares? You and I will pay the fine.
In the previous post I mentioned how Obama had created a “win-win” for rich people who pledged their support, and here’s People’s Exhibit A of what will be thousands of examples in the coming months and years.
Revenge? Because Mitt Romney did… what to them exactly?
The debt has gone up well over $5 trillion in the last four years, household income is down, the labor force participation rate the lowest in decades and the unemployment rate is higher than the day Obama took office, and we’re supposed to take revenge against Mitt Romney?
Ironic that after several years of bashing Wall Street a campaign that has already raised in excess of a billion dollars is spending what is hopefully its final days having to take out a loan from those same people they’ve demonized:
Obama For America took out a $15 million loan from Bank of America last month, according to the campaign’s October monthly FEC report. The loan was incurred on September 4 and is due November 14, eight days after the election. OFA received an interest rate of 2.5% plus the current Libor rate.
Warren Buffett, Obama donor and namesake of the infamous “Buffett Rule,” invested $5 billion in Bank of America last year in an effort to help the ailing financial institution. Last month, two weeks after OFA took out the loan, Bank of America announced a plan that would lay off 16,000 workers by the end of the year.
Team Obama is spending more than it’s taking in? No way!
No wonder Wall Street needs to be bailed out all the time. Giving a large loan to a sinking politician and it isn’t due to be repaid until after an election that could send him packing? Any bank worth saving would have made the loan repayment date November 5th.
If I ran Bank of America I’d have sent Team Obama the news story below along with the following note: “Our stockholders seem to feel that we have an inherent right to a certain amount of profit, and that would force us to charge you interest on the loan you requested. Because we don’t want you to appear hypocritical in any way, we’re denying your campaign’s loan request — best of luck in the election”: