Saturday, April 23, 2011

Quantitative Easing Explained



According to the New York Times the 'mood' of the country is at an all time low in the past two years. Two years. Well, that is because the electorate is CHRONICALLY disillusioned, disappointed and burdened.

The Republicans promised to do what is right for the country and job creation. The myth through the nation is that the Republicans know how to handle the economy best.

Hm.

...Mr. Obama has considerable support (click title to entry - thank you) for his proposal to end tax cuts for those households earning $250,000 a year and more: 72 percent of respondents approved of doing so as a way to address the deficit....


I feel for everyone. I am not happy, but, the same myth that put the Republcans into office in 2010 is a cancer in this country.

In order for the people of the USA to 'take control' of THEIR economy they first have to admit the Republicans are incapable of governing.  They have stated they are incapable of job creation.  The electorate of the USA has to admit the Bush/Cheney years were some of the most toxic economic years in recent recent history.  They were morally toxic and eocnomicly toxic.  When the electorate of the USA comes to terms with that reality they can 'move on.' 

The Bush Years of Janaury 2001 through Janaury 2009 never GREW jobs.  We lost jobs chronically.  Jobs were outsourced, every legislative measure during those years was a 'spending program.'  There was no legitimate legislation unless it was addressing social conservativism, such as "Terry's Law."  That means there is was no governance.  The Republicans don't expect to create jobs, they HOPE to 'create a business climate' that will 'encourage' jobs to be created.

Big difference.  I do believe when the 'Great Depression' occurred the President EXPECTED to create jobs and he did. 

The problem with 'the mood' of the country is that most Americans don't 'think about' the economy except in small terms, namely their own check books.  In realizing that, there are ways to 'think about' the economy that can be extrapolated into an understanding of what is being DONE TO the USA economy. 

ASSETS.  Everyone understands what assets are.  The USA has assets.  Those assets are concrete, but, there are also very fluid aspects like 'the brain trust' and 'future potential' of the country.  Don't think for one minute 'educational costs' are not about the economy, they are directly related the economy and 'the wealth of the nation.'  But, Americans also understand their own budgets and 'savings' that will result in 'payouts' of costs, be it vacations or anticpating the need for a new car or refrigerator.  They understand how 'groups of money' with a 'label' for their use is important. 

What occurred in the last quarter of 2008?  What sincerely occurred?  Was it a tragedy?  Was it something the USA had in its capacity to 'absorb?'  It certainly was something that happened and 'was handled' in order to 'bailout' huge banks and an insurance firm that was 'in service' to those banks.  Everyone wants to blame all kinds of reasons for what occurred in 2008, but, there is no doubt the 'crash' of 2008 was 'engineered' and the people, like Paulson, that came begging knew exactly what he was doing.

There are a lot of money reserves in the USA.  During the Bush years most were excoriated for their 'balance' and laid waste.  In other words, the 'protections' of things like airlines that carried a 'reserve of money' were manipulated to 'return those monies' to circulation and increase the circulating wealth that Wall Street brokerages could play with, including investment firms such as Goldman Sachs.

For those that had a bird's eye view of this mess, it was completely astounding.  The average American was too busy 'trying to do the right thing,' and believing they were actually accomplishing something to realize how far "W"rong the 'global economy,' including the USA was headed.  It was fairly 'stark' to watch it all transpiree and the only thing that could be done by spectators was to keep ones fingers crossed in 'hopes' those 'in control' were actually moral people with the best interest of the global and USA economy at heart.  Hoping all the time that citizens were actually peasants, but, 'regarded.'  As it worked out 'the person' was the 'last loyality' to these 'institutions of wealth.'  Or, best said, 'toys of wealth' that have value and loss it, only to 'pressure' governments to act to uphold their integrity without guarantees to their countrymen.

The truth of the matter is the 'wealth toys' have been running out money to play with.  Any reason is a good reason to play.  Like, 'let's try quantitative easying' to 'make jobs' happen.  If one recalls the first QE occurred as soon as a majority of Republicans were elected to the USA Congress.  Why?  TO HELP THEM LOOK GOOD as if they actually were doing something.  It didn't work, so Wall Street needed anti-depressants and then there was QE2. 

Now, if QE1 was in response to an election to help the Republicans 'look good' what does that mean?  Does it mean they PREFER Republcans.  Yes, but, not in the way one would think.  Not that 'The Fed/ The Wealthy/The Players' believe Republicans are their friends, but, that Republicans LACK the morality to consider citizens important enough to actually put them at the center of policy.  Republicans don't put citizens at the center of policy, they put their cronies at the center of policy. 

Now, back to the 'monetary reserves' within the USA.  Not necessary, money 'sitting around,' but money LEGISLATED.  The fluidity of the USA is its capacity to move money.  To legislate policy that moves money.  The economy.  Okay?  So, when Republicans write legislation like the recent bill that funds the wealthy and defunds the poor and the elderly, they are doing it realizing 'there is a reserve of legislated money.'  No surprise, right? 

The reasons Republicans legislatie is for wealth.  That is a fact.  That is a VERIFIBLE fact.  They do not legilslate to benefit the citizen.  That is the role of govenrment.  Government is suppose to uphold the dignity of the citizen through policy that works for them.  There is nothing "W"rong or anti-government or anti-democracy about the theory 'cradle to grave.'  That better be at the center of government policy even if that means upholding the private sector to supply the 'needs' of the people.  That is not occurring anymore.  That 'loyality' to the citizen is not at the center of government policy.

The Recovery and Reinvetment Act was about the citizen.  The 'neglected' infrastructure of the country took a priority and it was decided we needed a tax break to help the Middle Class recover from the disasterous events of the last quarter of 2008.  The Recovery and Reinvestment Act put money in the hands of many and infused the eoconomy with purchasing power.  The tax break to the Poor and Middle Class helped the economy to stabilize.  That is a fact.

We also needed a new energy infrastructure.  We had aging power plants, growing need for domestic oil which was escalating in cost, a 'grid' that was grossly neglected and needed to be reconstructed, so there were 'significant' incentives to businesses to begin to move the USA out of the dark ages of energy production and into a 'bold new world.'  Two years later and we are finally seeing the private sector reacting to those funds.  Los Angeles is working on improving its air quality by being the first city in the USA to promote and institute 'public electric charging stations.'  We are witnessing the implimentation of "Cape Wind.'  We finally have solar manufacturing in New Mexico and wind turbines in Michigan.  Home grown new infrastructure.  Finally.  That doesn't happen overnight and it doesn't happen without the commitment of government with support of the citizen.  Slowly, but, surely the USA is turning this huge 'energy beast' into a 'friendly face' of benign environmental damage or danger.  OR DANGER.  DANGER.  Like, destroyed fisheries and polluted tourist areas.

The Affordable Care Act became reality.  It has been sabotaged a bit by a USA Senator named Joe Liberman, whom will no longer run for office.  He put his 'insurance cronies' before the people of this country and defeated a vital Public Option necessary to 'control' private industry costs to the consumer.  But, the Affordable Care Act is a magnificent document.  It has stopped the bleeding, literally and figuratively.  Oh, I know the costs of health insurance are being inflated before all the provisions go into effect, but, that will be addressed over time.  Importantly, people are receiving coverage.  There are lives being saved and longevity now within reach of people that didn't believe they would ever 'see the light at the end of the tunnel.' 

Before we go down the road again of pursuing a Public Option again, we should see how this flies.  The real challenge to contaiing 'health care premiums' lies in 'containing costs.'  Secretary Sebilius has her hands full and the 'panels' funded by the Affordable Care Act will be invaluable to her, the the President and to the American people.  There is every indication there will be strides in changing 'the dynamic' of 'the cost' of American health care once 2014 rolls around and the entire nation is 'on board.'  I have confidence in the 'due dilligence' of President Obama and Secretary Sebilius to bring 'the best' of health care to the American people with a focus on cost and cost containment.

I may be by the year 2016, the topic of The Public Option will surface once again, IF, the American government cannot legislate to win compliance and loyalty of the Health Care Insurance Industry.

There have been significant impacts in social issues where President Obama has been able to impact our infrastructure, the most revolutionary being the repeal of "Don't Ask, Don't Tell."  It is such a hideous name and hideous concept.  I always thougt it was laughable.  But, the gracious First Lady Michelle Obama has been at the forefront in regard to tackling a profoundly worrisome health problem with our children, obesity.  If one wants a healthy nation, then there needs to be a strong effort to return sanity to The American Diet and the First Lady is doing it.  We are lucky to have a Second Lady, namely Mrs. Jill Biden that is compelling when it comes to advancing the purpose of Community Colleges and setting importance on education as a pathway to financial success for our nation.  She and the First Lady have also 'dug in' to support military families to make a difference in lives and keep families together rather than disintegrating under the pressures of deployment.

But, as to why the country is so unhappy now, is because they wanted a bi-partisan Congress to work with the President to bring back jobs, encourage small businesses and HONOR the American citizen by containing the National Deficit, WITHOUT draconian cuts and victimization of women and the poor;  while addressing the 'beginnings' of the National Debt.  None of that has happened.  We, as a nation, have witnessed more partisan politics than desired.  Partisan politics that hurts 'the citizen' while 'indulging' the wealthy.

The point to all this is 'to temper' the 'mood' if you will in a hope that 'some outreach' will actually make a difference. 

The American people are not interested in 'destroying' their country in order to allow exploitation of their Constitution and legal system.  They are not interested in having their 'money reserves' for Medicare, Medicaid and Social Security LUSTED by Wall Street or 'lame' ideas about what is important other than 'entitlements.'  The American people know what is important and it is NOT radical. 

The American people want the dignity of their country upheld.  They want leadership.  Meaningful leadership.  They want their senior citizens to receive their benefits as promised, their health care as needed and compassion for the needy in sufficient amounts.  They want their military to be respected, but, also to be respectable; but they want their soldiers home from a war front where people are mostly illiterate and unable to 'learn' to be soldiers.  They want to stop throwing money and weapons at meaningless military agendas and they want the spending brought BACK to Pre-Iraq War levels.  They want their deficit addressed in a dignified way that will not destroy the Poor or Middle Class.  They want an economy returned to them that will 'in time' be sustainable and productive with MEANINGFUL employment. 

The people of the USA want a Middle Class.  They want to honor a right for collective bargaining, they want to be able to have community leaders be honorable and produce good products and services for the country.  We want responsible and honorable labor without calling union workers 'lazy' or 'unnecessary.'  Labor is some of the most skilled in the world and there is no reason why the produces produced are the best in the world.  No reason.  If we can launch a Space Craft, we can build an electric car. 

The people of the USA want to be put FIRST rather than last when it comes to government policy.  They want reasonable policy that recognizes 'the right' of people to 'think' and carry out their lives uninterrupted and unexploited.  The American people are not a commodity.  Their economy and hopes for a better life is NOT a method to deceive and 'engineer' profits at the cost of lives and their 'striving.'

The American people want beauty in their lives, parks to enjoy, protections for their wildlife and an Earth environment that HONORS the priorities of their country and the safety of the future of their children. 

The people of this country, in the year 2011, are very disillusioned and not completely able to 'get their minds' around the 'best' method to address their problems, all they know is that what is transpiring is exploitive, hideous and ruinous to this country.  The 'methods' of finacial market places are NOT honorable , nor have they been for nearly ten years now. 

The American People are still striving to 'Get Their Country Back,' but, what they don't realize is that is chronically shanghaied by Republcans that kiss the ground Wall Street walks on.

What the electorite has to remember is that they continue to trip over their own naivety in being willing to believe everything they hear and everything they see from sources not willing to listen to them, but, only for a while until they have the POWER they seek to once again exploit the people of the USA from their economic morality in a country where 'caring for each other' actually matters.

I have said it over and over and over again, the agenda of the Republicans for nearly ten years has resulted in the destruction of the American Dream.  When are the people going to make that connection and stop their own disappointment because of the poor decisions they make at the ballot box?

Builders of New Homes Seeing No Sign of Recovery  (click here)
...Kim Meier’s spring promotion, which includes a $17,000 credit at a nearby General Motors dealer, has produced seven sales since the beginning of March, a veritable windfall of business for a builder who sold only 20 houses last year. “We needed to do something dramatic,” said Mr. Meier. “The market’s been soft.”...

Offering a car as a bonus to purchasing a home?  Wow.  That is really 'out there.'  The Ameican electorate has to put people into federal office to stop this excoriation of the American landscape.