Wednesday, September 21, 2011

Federal Reserve Destroying The US Dollar

The Federal Reserve will print another $400 billion to buy long term securities to reduce mortgage interest rates and long term borrowing costs.    This amounts to Quantitative Easing III and will only lead to even more inflation and higher prices for food, gas and other commodities.    And, it is just plain ridiculous.   Mortgage interest rates are as low as 4%, about the lowest in American history, yet many Americans cannot qualify for refinancing mortgages because about 10 million Americans are upside down on their mortgages and therefore cannot refinance.   And,  as a result of falling home prices, lenders are requiring higher down payments and credit scores than normal to purchase homes.    Lower mortgage interest rates are not the issue.   It's about Jobs, stupid not mortgage interest rates!! Obamanistas have been destroying jobs for the last three years.   Further, by cutting rates even further, senior citizens that depend on interest income on their savings to live are being killed. 

The banks are sitting on more than a trillion dollars that theoretically should be available for loans.   The private sector is sitting on another trillion dollars in cash rather than making investments to grow jobs because Obama's economic plan has been such a job killer.    The Federal Reserve pumping more money into the system will have no impact on economic growth or job creation, except that it will further  destroy the value of the dollar.  Upon announcement of this third round of Quantitative Easing, the stock market fell 300 points and it is continuing to fall.

It is becoming clearer by the day that the Federal Reserve, as managed by Ben Bernanke, is out of control.   As such, Congress must limit the charter of the Federal Reserve and provide more oversight to prevent activities that are counter productive.   The notion that the Federal Reserve can act without any limits is wrong.   These brainiacs in Washington DC are destroying our economy and bankrupting our country.  It has got to stop.

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