Obama's Dangerous Nonsense

In yesterday's post, I had discussed the harmful consequences of the US Fed's "quantitative easing" policy - which in plain words means printing more paper dollars. I discussed how this will "export inflation" to India.

According to this report, this is what Obama said, while in India, when questioned on the Fed's latest move:

"I will say that the Fed's mandate, my mandate, is to grow our economy. And that's not just good for the United States, that's good for the world as a whole," Obama said during a trip to India. "The worst thing that could happen to the world economy, not just ours, is if we end up being stuck with no growth or very limited growth."

But has the US economy been "growing"? After all, fiat paper US dollars have been around for many decades now.

According to this article, the US economy has gone down the tubes. These are some of the horrific effects that "unsound money" - fiat paper dollars - has created:

=> More than 42 million Americans were on food stamps during the month of August. That is a new all-time record, and that number is 17 percent higher than it was one year earlier. In fact, the number of Americans on food stamps is up more than 58 percent since August 2007.

=> The number of "persons not in the labor force" in the United States has set another new all-time record. The United States has not had such an extended bout of mass unemployment since the Great Depression. The "official" unemployment rate in the United States has been at nine and a half percent or above for 14 consecutive months.

=> More than 1000 people now live in the 200 miles of flood tunnels that exist under the city of Las Vegas. Once one of the most prosperous cities in the United States, Las Vegas is now little more than a shiny, glittering corpse that is rapidly decaying.

=> Poverty is absolutely exploding and it is hitting those who are the most vulnerable the hardest. According to one recent study, approximately 21 percent of all children in the United States are living below the poverty line in 2010.

=> One out of every six Americans is now enrolled in at least one anti-poverty program run by the federal government.

=> The American Bankruptcy Institute says that there will be about 1.6 million consumer bankruptcies in 2010. That would represent a huge increase over 2009.

Thus, Obama doesn't know the anything about the vital subject of Economics.

America needs Ron Paul.

What causes economic growth? Well, not The State - which taxes, prints, and spends, thereby "consuming capital." Economic growth occurs when private people save and invest, and there is Liberty and Property - as I argued in a recent post.