Obama administration monetary policy
The current Obama administration monetary policy is to increase the money supply enough to inflate the currency (to about 1.8% per year) and offer very low interest rates resulting in net negative interest rates to bank depositors, but hopefully making the rates attractive to businesses for the purposes of expansion.
At first, the Obama administration monetary policy was the reckless monetary policy of monetizing debt at an unprecedented rate which would have very likely led to inflation, hyperinflation, stagflation, or hyper-stagflation. In February 2010, concerning the Obama administration's monetary policy, the world renowned investor Jim Rogers said that the European Union, Chinese, and Australian central bankers were more competent and honest than the Federal Reserve and that Federal Reserve Chairman Ben Bernanke was "throwing gasoline on a fire" via his inflationary policies which were debasing the United States dollar.[1]
Instead, the administration has simply incurred $7.2 trillion in new U.S. Government debt (40% of a year's entire produced wealth in the United States in 2014) as of September 2014, prior to the enormous expenses expected from the retirement of the baby boomers, pressuring future administrations to either monetize the debt or make the politically unattractive choice of directly cutting Social Security or medical benefits to seniors and others.
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Renowned investor and billionaire Jim Rogers' additional commentary on Ben Bernanke
Wall Street Pit wrote concerning renowned investor and billionaire Jim Rogers:
| “ | Billionaire investor Jim Rogers, chairman of Rogers Holdings, says he doesn’t understand how monetizing even more debt can solve a problem caused by too much debt. According to Rogers, Fed Chairman Ben Bernanke has failed in spuring economic growth as a result of the massive increase in the money supply brought about by the Federal Reserve’s loose monetary policy. Rogers suggests the U.S. must stop printing money and take on austerity measures like the Europeans did to let the economy recover.[2] | ” |
An excellent video of Jim Rogers talking about the gross economic incompetence of Ben Bernanke can be found HERE.
Articles and videos
Articles:
- Fed’s Treasury Purchases March 2009 to July 2009
- Federal Reserve is Printing Money: Prepare for Hyper-Inflation August 13, 2009
- Monetary Policy — Not Obama's Stimulus—Is What Needs Watching
- Printing money is not the cure
2009 Videos:
- Jim Rogers Says "America is out of control, demise of the dollar
- Glenn Beck on Printing Money
- Ron Paul, Glenn Beck & Company: Monetizing the Debt - The Truth
- Peter Schiff - Impending hyperinflation
- Inflation Is Going To Increase Very Substantially As A Result Of Money Printing May 30, 2009
- Hyperstagflation
- $78.8 Trillion; United States Debt Obligations exceed world GDP; Monetary Collapse Looming? February 16, 2009
2008 Videos
- Peter Schiff - Obama = print print print print print - November 6, 2008
See also
- Obamunism
- Obama administration fiscal policy
- Obama administration deficit spending
- Obama administration corporate bailouts
- Obamanomics
- Recovery Summer 2010
References
