Economic Chaos: Brought To You By...

Floyd G. Brown * The Center for Western Journalism

Bernanke and Obama Want More Economic Crisis

We predicted here at Capitol Hill Daily that Ben Bernanke wouldn’t taper the Federal Reserve bond buying this month. Yet all the pundits on Wall Street and in the media were fooled. They were fooled because they don’t understand the iron rule:

Don’t listen to what politicians say! Watch what they do.

If you act on the words of politicians (and Ben Bernanke is just another politician), be prepared to experience a head fake. Politicians tell you what you want to hear, not what they actually think or plan to do.

We were confident in making our prediction because we tuned out the D.C. propaganda and watched reality. Reality tells us that unemployment is higher than the numbers Obama’s Labor Department publishes. Inflation is higher than the Consumer Price Index (CPI) they publish. And the economy is much weaker than the Obama cheerleading squad is willing to admit.

If you don’t believe us, then give it the eye test. Drive past nearly any strip mall in America and count the vacant storefronts. Nearly every chain, from Staples (SPLS) to Best Buy(BBY), is shuttering stores. Restaurants are closing. Corporations are hoarding cash and not investing.

The talk of tapering has caused interest rates to spike, and mortgage loan numbers have tanked. New housing is barely off of life support. Car dealers still aren’t selling cars at pre-2008 numbers despite low interest rates and the average age of cars on the road reaching record highs.

The Federal Reserve will never be able to stop Quantitative Easing (QE) until the economy actually recovers. But mark our words… If they don’t stop it soon, they’re running the risk of causing a flash crash in the currency.

The world is already awash in U.S. dollars. China is dumping dollars. Russia is dumping dollars. Japan is weakening the Yen. If the dollar selling gets too great, and I see little reason to hold dollars under this wrong-headed policy, we run the risk of a total crash.

Even without a crash, the QE policy is systematically transferring wealth to the political and banking elites. Inflation is the greatest stealth tax in history.

continue article at The Center for Western Journalism:

http://www.westernjournalism.com/knock-knock-whos-another-lying-politician/