Friday, September 14, 2012

QE3 & The Stock Market Bubble

Federal Reserve Chairman Ben Bernacke announced that he will print more money to implement QE3 to pump as much as $85 Billion a month into the economy for as long as necessary, presumably to stimulate economic growth and job creation again in America.   This effort will bring down historically low interest rates, even further, to encourage consumers to borrow money to make purchases.  It will not work.  Further, Egan Jones, an independent credit research firm, has down graded our US Credit Rating from AA to AA-.   Other credit rating agencies are threatening to do the same because QE3 will lead to a weaker dollar. 

QE3 is causing a dangerous Stock Market Bubble that will eventually lead to a crash, as investors pump even more money into the market in an attempt to get higher yields, since interest rate yields are so low.  QE3 will cause Senior Citizens to lose out big time because their savings are typically in government insured savings accounts that are paying nothing.  QE3 will result in higher prices of all commodities including food, oil and gasoline, which will go up dramatically because printing money will lead to additional devaluation of the dollar.  And, long term we will see inflation.

The only way to restore economic growth and job creation again in America is to bring certainty to the market by making the Bush Tax Cuts permanent, pending real tax reform.   We have to bring down the corporate income tax rate from the current 35%, the highest in the world, to something around 20% to be competitive with other countries, including China to keep more jobs in the US.   We have to implement a long term, all of the above energy plan to make the US Energy independent in the next 20 years.   We have the natural resources within the United States to make it happen; but it will not happen as long as Socialists remain in power.  We have to cut government spending from Obama's 25% of GDP to the more traditional 18% to get things moving in the private sector.  In other words, we have to implement the Romney/Ryan Economic Plan to get our country and the world back on track. 

We face a critical election in 2012.   If Obama is reelected, we will see more poverty, higher unemployment, a lower standard of living for all Americans and the bankruptcy of the United States.   We can't let that happen.  We must elect Mitt Romney the next President of the United States and gain Republican control of both Houses of Congress to restore economic growth and job creation again in America.   The Federal Reserve's QE3 will not solve our problems.  It is just more of the same. 

P.S.  To donate to Mitt Romney's campaign to make Obama a one term President, just go to and click on Donate.   Once on that page, look for the line that says, I know my Referrers Information, click on that box and type in 8544, the National Freedom Forum Referral Number to make our voices heard.  Give as much as you can to take back our country.

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