Back on July 17, Sen. Chuck Schumer (D-NY) revealed the Democrats’ agenda for the economy: inflation. “Despite two false starts, we’re having a much rougher time than we ever imagined getting unemployment down,” Schumer told the Senate Banking Committee. “So get to work, Mr. Chairman.” Bernanke, said Schumer, should act before November.
“We will act in an apolitical, non-partisan manner to do what is necessary for the economy,” Bernanke quickly responded. “We have said we are willing to take further action.”
As the election grows close, the Fed is acting to inflate the dollar – just in time to try to save President Obama. According to the Fed, a third round of “quantitative easing” may be on its way so long as the economy doesn’t ratchet up. On July 31, the Fed Open Market Committee minutes included this statement:
Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery.
The power of the Federal Reserve has grown since the election of Barack Obama; the markets are responding to every cough and sneeze of Fed Chair Ben Bernanke. Should Bernanke inject more cash into the economy, prices will rise; stock prices will increase; real estate costs will skyrocket.
And then, come the fiscal cliff in January, the economy will tank. The CBO reported yesterday that with President Obama’s scheduled tax increases, unemployment should jump to 9 percent. When inflation kicks in, the stagflation rate will approach Jimmy Carter levels.
All to get Obama re-elected. When our economy is this easily manipulated from the top down, so are our votes. That’s the whole idea. And both Obama and Ben Bernanke know it.