Quantitative Easing – Is it a problem?

Just something to think about. Quantitative Easing!! What you might ask is quantitative easing. It is a government program to print money and use it to buy up assets like long-term Treasury Notes and mortgages from banks. Now, think about this for a minute, the government prints money and then uses it to buy treasury notes which are issued by whom? Ready, by the government. This is supposed to lower interest rates and help lower unemployment. What it really seems to be doing is simply “bailing out” banks and other financial institutions. Oh, and driving the price of gold up. LOL

How much is this costing us and again where is the money coming from. Well, the Federal Reserve (AKA the Central Bank) has printing presses and plates that print money, so they print it as fast as they can. They then send it to the banks and financial institutions and receive back the treasury notes that they printed. This almost sounds like a ponzi scheme to me. Oh, how much money are they printing, 85 billion dollars a month. That is over 1 trillion dollars a year.

This is what is causing the stock market to do what it is doing and gold prices to stay high. From my view this appears to be unsustainable and will have to come to an end at some point. Think about this. You have been getting 85 billion dollars a month from the government and sending them back a treasury note that would have paid a little over 2% interest. Now one day the government decides they are no longer going to send you the 85 billion. Whoa, what am I to do? I have gotten use to that monthly stipend and now I am not getting it. What happens then? I don’t know, but I am sure that whatever happens will not be pretty and not be good for the economy.

Fix vs. Delay – ObamaCare

Just something to think about.  ObamaCare. When will the leader of our government realize that he cannot just change laws at his whim? It’s like, OK it doesn’t work, let ME change this and see if that fixes it. We once again have the Federal Government telling the states and insurance companies how to run their businesses. By the way, changing the law to force insurance companies to sell people the policies they cancelled is not a fix it is simply delaying the inevitable under this massive law. This is a given since under this “fix” (NOT) the same thing will happen at the end of 2014.

It should be intuitively obvious to even the most casual observer that ObamaCare is broken. That there are some parts of it that need to be changed. Maybe those that supposedly represent “we the people” could take the time to read it and make the changes necessary to make it actually work. For them that would be something really unique, given that some of them were so proud of the fact that they did not read it before passing it.