Tuesday, June 14, 2011

The #1 Republican Lie

Republican politicians lie, constantly. Sometimes these lies are devious. Republican politicians just want to pull the wool over your eyes and make you believe they have all the answers, and no one else has a clue. Most of the time though, Republican politicians are just plain stupid. They don't have a clue what they're talking about. My favorite, recent, often repeated, Republican lie? Printing money.

The grand Republican lie ... President Obama is letting Mr. Bernanke print money to the point that inflation will run wild. We have to stop printing money. Printing money is a sin. Printing money is the root of all evil. Printing money. Printing money. Oh my god the world is going to come to an end because those Democrats are printing money. Run for gold, because we're printing money.

When you hear a Republican moan about our great money printing machine, just ask them for the facts. Now then, Mr. Republican Politician, tell me again about how our nation's money supply indicates that we've allowed money printing to get out of hand? Then stand back and watch the idiot stand there, incapable of supporting the claim that we are printing money. Why? Because we aren't printing money.

The facts are explained pretty darn well by Niels Jensen in his June 2011 investment letter, here. Read it. And ask yourselves, how in the living hell have we gotten ourselves into the situation that we've elected Republican politicians who are economic idiots?

Mr. Bernanke's $600 Billion QE2 program that Republicans so hate, and claim it's money printing run wild? It's led to a $230 Billion increase in the money supply, from $1.7 Trillion and change to $1.9 Trillion in change. Big whoop. Over that same six month period, business loans have grown from about $600 Billion to around $640 Billion, only a $40 Billion increase. The banks are taking the money and not lending it out, for lack of loan demand. Money printing isn't happening because there is no lending. There is no lending because there is no demand for loans. There is no demand for loans, because everything is produced everywhere but in America. Who's the blame for that sorry state of affairs?

Don't get me started on how the Republican Bush administration screwed our country by standing around with stupid grins on their faces while our manufacturing base left for China.

We're not printing money. Inflation is not a problem. Nor will it be in the near term. Our problem is the stupidity of the Republican politicians and how they allowed China to kick our ass and take away our manufacturing base. And a long string of Republican free trade agreements, and the idiocy in how we take a soft glove approach to China are to blame. Republicans are to blame.

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