Diary

Myopic Maobama and Bernanke the Master of the Obvious

Obama’s chief economic guru at the Fed, Ben Bernanke—not even a shadow of his mentor Alan Greenspan, is quoted in a recent Bloomberg article as saying that he doesn’t see “much evidence that inflation is becoming broad-based or ingrained in our economy.”—USA to planet Obama—the price of fuel is causing everything to become more expensive which is inflation on a broad base.

Further he states, “(If commodity prices stabilize), “the upward impetus to overall price inflation will wane and the recent increase in inflation will prove transitory,”—IF is unfortunately his operative word and it doesn’t leave one with much room for confidence.  How does one expect a commodity price to stabilize when the manufacture and delivery of goods is directly reflective of the costs associated with the manufacture of said good and those costs are made volatile by the current administration’s policies on everything from dollar devaluation (QE) and fuel pricing to business tax implications and Obamacare?

And on energy Bernanke sniffs, “strong gains in global demand that have not been met with commensurate increases in supply”.  Where did he get his Masters in the Obvious?  Saudi has not increased production since the 70’s and they will not unless and until a strong US president clearly states that US production will increase.  And further, actually delivers permits to drill.  Regardless of when this new US oil hits the market, the affect of actually starting the process will move Saudi and its OPEC partners to increase supply to reduce the margins of profitability for the US companies that would be investing in this new found US oil boom.  PERIOD.  Don’t let comrade Maobama and his Keynesian idiots tell you any different.  This is supply-side economics, or Reaganomics if you will, and that is how free money works.

So Bernanke confides that “the Fed needs to do “more thinking””.  Wow.  How oxymoronic is that?  More thinking, like cash-for-clunkers?—In a microcosm, that one failed government stimulus illuminates how poorly Maobama’s government predicts outcomes—within three months the program went from $1 billion to $3 billion, money which was supposed to last for over a year at the original amount and was cut short by 9 months and over budget by $2 billion.  Not to mention the fact that the program made used cars more expensive and made no discernable impact on new car sales over the long term.

Or more thinking like QE I and II?  As Bernanke states, “many factors other than monetary policy affect the value of the dollar.”  Right, like printing money?—Every dollar you print pushes the value of the dollar down.  I can count a few trillion of the “many factors” that are devaluing US currency.

So if words like “if” and “more thinking” scare you when they come out of the Fed Chairmans mouth, what do you think they do to cowardly capital?  That is correct, like John Huntsman said recently, the capital is fleeing the risk. 

And the risk is Maobama himself.  The tunnel through which his vision is sharply focused has no light at the end but more of a lighting storm—oh, Maobama sees the flashes and thinks that it is salvation but it is impending doom.  Higher energy costs, insufferably higher taxes to support union entitlements, using the power of the government to halt business growth, QE I and II, cash-for-clunkers, GM “rescue” while ignoring the rights of share-holders, and the list could go on for pages…these policies are all under the liberal brain-trust that Maobama surrounds himself with and has become through his own experience. 

Is that the change you wanted to believe in?