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The Real Winner of the Presidential Election

George Washington's picture





 

8164995180 4f8b99c43a b The Real Winner of the Presidential ElectionImage by William Banzai

 

US News and World Report notes that Bernanke helped Obama to get re-elected by juicing the economy … at least temporarily:

The Federal Reserve had a key role in the presidential election—possibly even a decisive one.

 

Exit poll results show that, not surprisingly, a majority of voters said the struggling economy was their top concern …. In the end, voters seemed to believe the economy was gradually getting better, and Obama deserved more time to make things right.

 

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Without question, the biggest factor impacting the economy this fall was the Federal Reserve’s decision in September to extend its controversial quantitative easing program indefinitely, until the economy is back on track for good. This type of monetary easing is an arcane strategy that doesn’t directly impact consumers. But it can have a powerful effect on the economy that filters through to ordinary people in many important ways. And the biggest advocate of quantitative easing has been Fed Chairman Ben Bernanke.

 

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Consumer confidence, in fact, rose sharply in the weeks leading up to the election, even as business leaders were becoming more worried about problems such as the looming fiscal cliff. That’s one thing that pushed our Obamanometer reading onto Obama’s side. The Fed probably had as much to do with that as anything else.

 

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Bernanke has also shown himself to be a pragmatist determined to do whatever is necessary to help the economy recover today, even if it risks unpleasant consequences—such as higher inflation—in the future. Voters seem to approve. So maybe the politicians ought to listen.

While Romney is as mainstream economically as Obama, he did make noises about auditing the Fed, criticized additional Fed easing, called Fed stimulus “artificial”, “ineffective” and “just making it up”, promised to appoint some monetary hawks, and said that he would challenge Bernanke’s re-appointment.

Some of it was undoubtedly attempting to appease Ron Paul supporters (and other libertarians), who hate the Fed. But at least some of it appears to have been genuine.

As such, the big winner from the election is the Federal Reserve.

Postscript: Numerous economists say that we must end or substantially rein in the Fed.  Both liberal and conservative protesters – Occupy and Tea Party alike – have railed against the unchecked power of the Federal Reserve.

Support among the public and House for auditing the Fed is almost 100% … but Democratic Senate leader Reid has vowed to kill an audit (even though he previously supported it). Given that Obama has been re-elected, and the Dems have kept the Senate, it appears that the Fed will retain its powers without any real checks or balances.

 


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Wed, 11/07/2012 - 23:24 | Link to Comment Dr. Sandi
Dr. Sandi's picture

 

Bernanke has also shown himself to be a pragmatist determined to do whatever is necessary to help the economy recover today

This is a real knee slapper. I always love unbiased reporting that endeavors to rise above the dominant paradigm and zero in on the truth.

 

Wed, 11/07/2012 - 21:14 | Link to Comment Goldilocks
Goldilocks's picture

Queen - 'We Are The Champions'
http://www.youtube.com/watch?v=04854XqcfCY (3:11)

Wed, 11/07/2012 - 21:09 | Link to Comment Robslob
Robslob's picture

Ben will not accept another appointment as he knows the clock is ticking and knows it is better to leave "while still on top".

In the end the Fed got the stooge they wanted but just like any child given the option to have candy for breakfast no matter the consequences the Fed has put themselves at the forefront of the firing line when it all goes south...about < 12 months from now.

Wed, 11/07/2012 - 21:16 | Link to Comment jekyll island
jekyll island's picture

The tribe has voted and people have decided they want free shit from the government.  How will the government be able to do this?   Ben?  Anyone?  Ben?  

Wed, 11/07/2012 - 21:08 | Link to Comment Tombstone
Tombstone's picture

The wages of debt will be a total reckoning with the false dictates of the FED.

Wed, 11/07/2012 - 20:58 | Link to Comment NeedleDickTheBu...
NeedleDickTheBugFucker's picture

Romney promised to "fire" Bernanke.

Obama reappointed Bernanke and would no doubt reappoint him again.

"Public Service" is a total misnomer as it's all about power and self-preservation.  Therefore, it was an easy choice for the Ben Bernanke after analyzing the alternatives:

Facilitate the election of Mittens = lose job.

Facilitage the election of Obama = keep job.

Voilá

Wed, 11/07/2012 - 20:25 | Link to Comment Sam Clemons
Sam Clemons's picture

The Fed is going to die by suicide.  They are done.

Wed, 11/07/2012 - 20:20 | Link to Comment samwell
samwell's picture

fuck that Jew Rat bastard at the Federal Reserve.  His time will come.  he will be run out of DC on rail or maybe even hanging high from a lamp pole!

Wed, 11/07/2012 - 20:25 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

It's more likely he be awarded the Hero of the Soviet Union and get a sinecure on the People's Central Committee.

Wed, 11/07/2012 - 19:59 | Link to Comment NotApplicable
NotApplicable's picture

"It's getting better all the time" = "Can't get much worse."

Wed, 11/07/2012 - 20:40 | Link to Comment Enslavethechild...
Do NOT follow this link or you will be banned from the site!