Ben Barnanke is pursuing a 3rd World economic policy. His monetarization of our debt or quantitative easing has created inflation. This has artificially boosted economic numbers to make it seem as if there’s economic growth. Bernanke is doing this help Obama’s 2012 re-election efforts.
As we approach next year’s presidential elections, the chances of President Barack Obama being ousted by a rival from either side of the political divide are low, according to Thanos Papasavvas, the head of currency management at Investec Asset Management
“History is very much on the side of the incumbent President and unless we have a double-dip recession with a significant increase in unemployment I don’t believe Obama will lose 2012,” Papasavvas said in an interview with CNBC on Thursday.“On the economic side, any signs of a deteriorating economic environment will see the Fed enacting QE3 (the third round of quantitative easing, or creating money) and hence indirectly reducing the probability of the economy derailing Obama,” Papasavvas added.
With the Republicans divided and no major rival yet to emerge, Papasavvas believes the American right wing will keep its powder dry for 2016 when four years of fiscal austerity will play into their hands.
It’s a gamble that could backfire as inflation, combined with lack of wage growth is devastating America’s living standards. This in turn will fuel voter anger at Obama. If Obama re-election is Bernanke’s goal, inflation is not the way to do it. It will all but ensure Obama is defeated. The Federal Reserve shouldn’t play politics with our economy!
