New highs day after day on the Dow!! The economy is fixed, right? Wrong!! I have been watching a lot of the business and mainstream media channels, and there is hardly a mention of the $85 billion a month the Fed is printing out of thin air to buy sour mortgage debt from the big banks and Treasury bonds from the U.S. government. This is $1 trillion a year!!! The Dow is going up, in part, because the big banks are buying their own stock back. Where are they getting the money? $40 billion a month is being used to buy that sour mortgage debt. That wouldn’t be the source of the cash to buy bank stocks would it?
This Fed money printing is propping up the economy, and if it were taken away, the whole thing would crash. Why do I say that? If the Democrats really don’t want to cut spending this year, then why don’t they ask the Fed to divert just two months of the bank bailout to stop the cuts? Why not? Again, the economy would implode because interest rates would spike! Here’s another question I have that the Fed chief should have been asked. To which banks is the Fed paying the $40 billion a month to remove sour mortgage debt? They can’t answer that because they fear a run on those banks.
I have to hand it to the New York Post for finally calling BS on the BS with this headline from earlier this week. “A Bull ($#!T) Market.” Anybody trading this should know this cannot and will not last. Stock market and corporate profits are both up a nearly identical 128% since the Fed started its money printing extravaganza in March of 2009. I am sure that just a coincidence.
President Obama is warning that Iran is a year away from developing a nuclear weapon. He says “. . . we don’t want to cut it too close.” So, is war with Irancoming within a year?This is serious talk from the President, and I do not think he’s bluffing. War with Iran would be a global disaster no matter who fires first.
Democratic Senator Patty Murray has a new budget that expands spending by a whopping 62% over the next 10 years! Her budget spends another $162 billion the next year alone. What part of unsustainable do these folks not get? I think the Democrats and Republicans will remain deadlocked and continue the “blame game theater” until the economy implodes altogether.
You think we can continue borrowing and printing money to infinity? The world is holding the “Global Sustainable Currency Summit” this September in China. The theme is “From Money Chaos to Global Currency.” Where do you think this will leave the U.S. dollar as the world’s reserve currency? We simply cannot continue to print money to buy hard goods from the world.
Join Greg Hunter as he gives his analysis on these stories and more in the Weekly News Wrap-Up.
Greg is the producer and creator of USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.