The media continues to crow about the Obama economy. Day after day there are articles online and “experts” on tv proclaiming America has entered an economic golden age of economic prosperity. Some of the economic analysts are even talking about a labor shortage and explosive GDP growth. The economy only grew at 1.8% which is anemic by any standards, but in the age of Obama it is considered red hot.
To the average America, they are baffled by the new media proclaiming an economic golden age. The Obama Loyalists choose to believe it, because Obama is a god like figure to them. The rest of us think this is just propaganda to prop up the faltering god-king. There is a 3rd reason why the media is proclaiming times are great, it is because they are rich and for that class of America things are good economically.
FORTUNE — One reason Ben Bernanke might be thinking it’s time for the Federal Reserve to pull back on its stimulus efforts could be American consumers.
During a speech at the Council on Foreign Relations last week, Fed governor Jeremy Stein was asked where he sees economic growth coming from, and he said consumers were one of the main reasons he was optimistic. “Consumers generally seem to be showing some signs of strength.”
They have seemed like a resilient lot. Despite a payroll tax increase, government furloughs, and the rest of the sequester cuts, consumers in general appear to be spending more this year. But that may be an illusion.
We got a glimpse of that last week. On Wednesday, the government said the economy grew 1.8% in the first quarter. That was down from an earlier estimate of 2.5%. The bulk of the reason for the revision was consumer spending. Americans didn’t open their wallets as wide or as often as originally thought.
To the people living in the media bubble, they really believe the Obama economy is booming because they are receiving the benefits. Ben Bernanke’s money printing scheme is inflating assets that are own by just the wealthy. This has created a disconnect between the perception and the reality of our economic situation. Hence whne these analysts make these proclamations of good times, many of them are actually not lying about their personal situation. For the rest of us, the economy still has not recovered.
Our political and economic elites are enjoying good times at the American public’s expense. This will can’t continue and will not end well for America.
Tags: Ben Bernanke, QE3, The Federal Reserve, The Obama Boom
