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By Mr. Curmudgeon:
While Islamic militants riot outside U.S. embassies overseas, and kill American counselor officials and their support personnel, another terrorist act just as deadly took place on American soil. Federal Reserve Chairman Ben Bernanke announced his independent, in your face, answer-to-no-one agency will flood the U.S. economy with $40-billion-a-month in counterfeit greenbacks to buy worthless mortgage-backed securities. He said the Fed would continue the policy “until such improvement is achieved in a context of price stability.” That’s Fed speak for “Forever.”
Commodity prices, like oil for instance, soared after Benny boy’s announcement. So much for “price stability.”
As if to prove the government is occasionally good for something, a U.S. Department of Agriculture report reads: “Agricultural production is sensitive to changes in energy prices … Climate change policies could also affect energy prices as a result of taxes on emissions …”
Translation: The high prices you pay at the pump eventually boost the prices you pay at the grocery store. Everything you buy is shipped … and that requires fuel. It is also nice of the USDA to admit potential climate-change legislation will boost food prices still higher, taking those yummy carrots right out of your child’s mouth.
So, you ask, “What does the Fed’s move really mean?
First, the 2012 Republican Party platform states: “A sound monetary policy is critical for maintaining a strong economy. Inflation diminishes the purchasing power of the dollar at home … and is a hidden tax on the American people.”
Worse still, for the Fed that is, the document pledges that the “Republican Party will work to advance substantive legislation that brings transparency and accountability to the Federal Reserve, the Federal Open Market Committee, and the Fed’s dealings with foreign central banks.” How, you ask? “Through an annual audit of the Federal Reserve’s activities,” that’s how.
While most conservatives awaited an “October surprise” from the Obama campaign to boost the president’s dismal re-election prospects, Ben unveiled his “Mid September surprise,” hoping to give Obama just enough temporary “recovery” to get him past November and block any future, pesky Republican audits.
So much for the Fed’s “independence.”
A criticism by the whiny left is that the Supreme Court ruling in Citizens United opened the floodgates for big corporations and shadowy billionaires to contribute zillions of dollars secretly to evil Republican superPACs. Bernanke, who heads the world’s most secretive organization, just made a very public $40-billion-a-month donation to the Obama campaign – and YOU get to pay for it every time you fill your gas tank or buy broccoli.
Secondly, and more frighteningly, an open-ended QE3 means the Fed is at its wits end. Everything they have done thus far has failed. So, they’ll just do more of the same … indefinitely. The Fed’s announcement is a left-handed way of admitting that America is in an economic depression and the Progressive gods can’t stop the boat from sinking. So, they’ll keep bailing water with their little hands until America sinks under the waves.
Who knows, America’s demise might just coincide with Bernanke’s celebration of the Fed’s 100th birthday in 2013.