Tuesday, February 3, 2015

Wheel of Fortune

President Obama is concerned for the middle class. He told us that before he was elected. He was greatly dismayed by income inequality. People believed him and voted based on that belief. Once he got elected he spun that giant Presidential Wheel of Fortune. 

Oh, he gave that wheel a great and mighty spin. Just to make sure the wheel spun long enough, Ben Bernanke and Tim Geitner put their shoulders into the effort. These three mighty economic talents would see to the middle class and adjust income inequality. One could feel the electricity in the air. America would be saved.

They took great baskets of cash to save failing companies. They saved the biggest banks and insurance companies. They were to big to fail. My God, it would have been a cataclysm. They gave great sums of money to "green" companies like Solyndra. Those that built magnificent wind farms and jewel like solar fields. They rescued General Motors. How could the world survive without General Motors? And they, brilliantly reserved money for "shovel ready projects".

At the same time, the FED cut interest rates to the absolute bone and started running the money presses at top speed. They would do their share to solve America's financial problems through "quantitative easing". You may never have heard that term before. No one did. They made it up to make it sound important. It means, "increase the money supply and cut interest rates".

After six years, the results of this policy have been astounding. The banks were able to pay out big bonuses to there highest level employees. The insurance companies backed Obamacare every step of the convoluted way. The wind farms and solar fields never met expectations. In fact they pretty much struck out except for their unnerving ability to kill eagles.

General Motors claimed success. But they still have some serious product issues. And they still owe us a lot of money. I think $10 billion, but I could not confirm that. When they went looking for shovel ready projects they couldn't find any. Anyone that has ever worked in construction could have explained that to them.

The greatest effect of quantitative easing was to buoy up the stock market. Even while business and employment are down, the value of stocks have seen new records. Those that have the means to invest  have gotten substantially richer under the Obama reign. So Obama made good on his promise to change the income gap. Middle class folks have lost about ten percent of their income while the one percent have gotten much richer. Yes sir he fixed that income gap for his rich friends and left middle America behind. Thanks Barack.

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