Posted on 07/26/2014 8:29:09 AM PDT by Kaslin
I received a note the other day from a social Democrat, who wrote:
“When Obama came to power the Dow Jones Industrial Average was 7,900, today it is over 17,000.
When he came to power, the Federal Budget deficit was 11% of gross domestic product (GDP), today it is 2.8%.
When he came to power, the economy was in a free fall and losing 8 million jobs, today it is growing and all the lost jobs have been recovered.
We are poised today to become the greatest energy producer in the world and North America will produce more oil and gas than the entire Middle East. Pennsylvania alone by next year will produce more gas than Qatar. It is estimated that the economy will grow 3.5-4% next year fueled in great part by the energy boom.
Inflation is low, interest rates are low, credit is becoming plentiful. Tourism has broken all records. What is it that makes you dislike him so much?”
It’s a good question. We must not let partisan politics interfere with our view of the economy.
Certainly, under Obama, the stock market has done well. In fact, when Democrats have been in the Oval Office, Wall Street tends to do better.
But that’s a superficial analysis. This time the recovery on Wall Street is due more to the Federal Reserve’s easy-money policies than the Executive Office of the President’s fiscal policies or leadership.
The energy boom in the United States has little to do with the Obama Administration. In fact, the White House has been trying to thwart the fracking-technology boom through Environmental Protection Agency (EPA) regulations, etc.
Certainly, fiscal policy has improved lately, with the budget deficit falling to under $400 billion this year. But that’s due to gridlock and the Republicans controlling the House more than responsible spending by the President.
Yes, the official unemployment rate has declined under Obama, but that’s largely because more adults and teenagers are dropping out of the labor force. The labor participation rate is at a 30-year low.
Moreover, ObamaCare has caused a huge increase in part-time work. ObamaCare mandates that employers provide health insurance for those working 30 hours a week or more. Consequently, employers are hiring more part-time workers who therefore earn less money than when they worked more hours.
In short, I’d say that the stock market has done well despite Obama and the Democrats.
You Blew it! Is Michael Moore a Hypocrite?
Like Al Gore, Paul Krugman and other critics of free-market capitalism, Michael Moore profits handsomely on the system he attacks. Moore is famous for taking the working man’s side in various documentaries criticizing corporate CEOs and big business. Those films include “Roger and Me” (about GM) and “Capitalism, a Love Story.”
In a recent divorce settlement, it was learned that Moore has a 10,000 square-foot house in the same neighborhood as Madonna and Bruce Willis. Moore owns multiple homes (nine) around the country. And he is reportedly worth more than $50 million.
On CNN in 2012, Moore vehemently denied he was a rich man. Pierce Morgan asked him point blank:
“I need you to sit here and say ‘I’m in the 1 percent.’” stated Morgan.
“Of course I’m not, how can I be in the 1 percent?” responded Moore.
“Because you’re worth millions.”
Moore can no longer be in denial.
To be fair, I have nothing against people making lots of money, even in criticizing the system. But if you are going to be a critic, you might have a better case if you live a low-profile lifestyle and give most of your money away to causes you support. I admire people like Warren Buffett, who still lives in a modest middle-class house in Omaha, and the late Sam Walton, who drove an old pick-up truck around Arkansas.
But one thing you can say about Michael Moore: He still dresses and looks like a poor slob. He would fit right into the classic TV series, “The Beverly Hillbillies.”
Not unless he controls what Yellen is doing.
The stock market has not increased in value. Instead, it reflects inflation caused by more than tripling the money supply. The stocks are worth less, but it’s hidden under the fact that the dollar is worth less.
*snickering*
When he came to power, the economy was in a free fall and losing 8 million jobs, today it is growing and all the lost jobs have been recovered.
Well you can destroy him right there s that is total bullshit.
There are less people in the workforce today then before. Full time jobs were lost and almost all replacement jobs have been part time. The economy is still in a free fall when no one is hiring full time workers with benefits and only hiring part time with no benefits.
Haven’t you heard? Is the reason for ALL success stories...ever. To believe otherwise is, well, racist.
Who wrote this fantastic? Donald Duck?
The Stock market has but the what is, $85B a month into the market propped it up.
Debt 2.8% of GDP. and the unemployed are almost 100M? What drugs are they on that they can make this stuff up and still be able to write it down?
Right - that ‘Quantitative Easing’ scheme? That’s literally injecting new money into the economy that wasn’t created by growth. How we don’t have hyper inflation right now is beyond my (non-economics education) capabilities to fathom.
Exactly right! The market is held up by the trillions that is cooking the books. When the crash happens is when the Fed Reserve quits manufacturing fake money. The Fed Reserve needs to be destroyed and our money backed in gold or silver, not paper. This currently is impossible.
The money’s got to go somewhere.
All the money is sitting at the Federal Reserve….banks are not lending…just collecting a very low interest rate..inflation under Obama has skyrocketed in energy and food…
Well, they say that figures don’t lie. But one has to take into account that it may be liars that do the figuring.
“How we don’t have hyper inflation right now is beyond my (non-economics education) capabilities to fathom.”
I suspect its due to the fact that the bulk of the new money is in banks and not in the hands of consumers. So it’s manipulating stuff that doesn’t yet affect us. Also, there’s a general insecurity that is preventing people from spending. Inflation is too much money chasing too few goods. Hyper-inflation is fleeing money for hard assets. If a “recovery” does start, the floodgates will open.
The stock market’s high valuation is a direct result of Federal Reserve money-printing and central banks throughout the world buying stocks to prop them up. This plus the zero interest rate policies that make it impossible for middle class Americans to grow their savings is largely responsible for the growing “income inequality” that the Democrats have the nerve to use as a political issue.
What it boils down to is that after the 2008 crash America had two options - we could endure massive financial pain and restore actual value to our currency, real-estate and stock markets, or we could print and borrow money like crazy trying to reinflate everything no matter what.
We chose the latter. What’s happening now cannot be sustained for much longer and it won’t be pretty when all these chickens come home to roost.
It’s not a success... It is inflation.
17,000 today is only worth half it was when Obama took office- if they were reporting the inflation rate honestly. It’s the equivalent of 8,500
With them printing money like crazy, and the cost of everything at least twice what it was when Odumbass took over.
>>and all the lost jobs have been recovered.
And all the lost jobs have been replaced with lower-wage, mostly part-time jobs. But hey, a job’s a job as long as government bureaucrat can count it!
Bernanke and the Fed’s ability to `print’ money with a few computer key strokes, and throw it at business has a lot to do with the current happy bulls’ hit economy. They make the money, issue the T-bills and call the printers with the order.
He would if he could, but Obama can’t kill the stock market all at once.
That bubble is going to pop eventually, something like paying off charge cards with new charge cards. Eventually you run out of other peoples’ patience and then we fall a very long way.
Banks can loan ten bucks for every dollar they have in the vault? Feds, same/same. We’re doomed.
Printing monopoly money has kept the stock market going. Such sneakiness leads to the hidden tax of inflation over time.
Sponsoring FReepers are contributing
$10 Each time a New Monthly Donor signs up!
Get more bang for your FR buck!
Click Here To Sign Up Now!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.