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Obama's Job Bill: Real Organic Growth or Another Stimulus Bi(2)

时间:2012-07-16 07:43来源: 作者:admin 点击:
Reality: Inflation is one of the biggest taxes that the US Federal Reserve levies every year on all Americans. When the Obama administration offered zero resistance to the Federal Reserves reckless e
  

Reality: Inflation is one of the biggest taxes that the US Federal Reserve levies every year on all Americans. When the Obama administration offered zero resistance to the Federal Reserve’s reckless expansion of the monetary base by trillions, an act that eventually will expand the monetary supply exponentially, they silently stood by as one of the most reckless, immoral monetary policies in American history was executed. The Federal Reserve’s actions in 2008 and 2009 will create one of the largest taxes upon, and thefts of, American wealth in the future. If Americans truly understand what is going on, the “Not a single dime” phrase should come back to haunt President Obama as much as the now infamous senior Bush 1998 statement of “Read my lips. No new taxes”.

President Obama: “And after two years of recession, the economy is growing again. Retirement funds have started to gain back some of their value. Businesses are beginning to invest again, and slowly some are starting to hire again. But I realize that for every success story, there are other stories, of men and women who wake up with the anguish of not knowing where their next paycheck will come from; who send out resumes week after week and hear nothing in response. That is why jobs must be our number one focus in 2010, and that is why I am calling for a new jobs bill tonight. Now, the true engine of job creation in this country will always be America’s businesses. But government can create the conditions necessary for businesses to expand and hire more workers.”

Reality: Retirement funds gained very little value last year if one subtracts the devaluation of the US dollar that bankers engineered last year. If a retirement portfolio now has a greater absolute amount of dollars, but that absolute amount can barely purchase more goods and services than the prior year due to currency devaluation, then the greater absolute amount of dollars is of marginal utility. Loose monetary policy and near-free credit create reckless expansions of distortions in capital markets, not recovery. Governments can never create the conditions necessary for business to expand and hire more workers. Only free markets can achieve this, and as long as governments and Central Banks collude to implement unsound monetary policies, free markets will never reign.

President Obama: “So tonight, I’m proposing that we take $30 billion of the money Wall Street banks have repaid and use it to help community banks give small businesses the credit they need to stay afloat. I am also proposing a new small business tax credit – one that will go to over one million small businesses who hire new workers or raise wages. While we’re at it, let’s also eliminate all capital gains taxes on small business investment; and provide a tax incentive for all businesses, large and small, to invest in new plants and equipment.”

Reality: The $30 billion that Wall Street banks have repaid is our tax money that was forcibly taken from us and given to the bankers. It is true that support should be given to community banks and small businesses. However, as long as these things are done within the confines of an unsound monetary system, they will never be effective long-term in preventing corruption from rearing its ugly head again and from preventing the boom-bust cycles that Central Banks so deftly engineer for the benefit of the financial oligarchy.

President Obama: “One place to start is serious financial reform. Look, I am not interested in punishing banks, I’m interested in protecting our economy. A strong, healthy financial market makes it possible for businesses to access credit and create new jobs. It channels the savings of families into investments that raise incomes. But that can only happen if we guard against the same recklessness that nearly brought down our entire economy. We need to make sure consumers and middle-class families have the information they need to make financial decisions. We can’t allow financial institutions, including those that take your deposits, to take risks that threaten the whole economy. The House has already passed financial reform with many of these changes. And the lobbyists are already trying to kill it. Well, we cannot let them win this fight. And if the bill that ends up on my desk does not meet the test of real reform, I will send it back.”

Reality: The statement “Look, I am not interested in punishing banks, I’m interested in protecting our economy” is an oxymoron. Bankers created this crisis, so if the President was sincere in his interest to protect the US economy, by definition, he would have to rid the system of the corrupt banks that engineered this crisis. That means, goodbye Goldman Sachs (GS), JP Morgan (JPM), Bank of America (BAC), Wells Fargo (WFC) and Citigroup (C). But of course, this will never happen. If consumers and middle-class families are truly to have the “information they need to make financial decisions” then we must begin with education about how our monetary system truly works, not the propaganda about 10% reserve ratio requirements [RRR] and other nonsense that is disseminated via our academic system at every level.


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