Tag Archives: Stimulus

New study from the Federal Reserve finds that QE stimulus doesn’t grow the economy

Investors Business Daily reports on our incompetent government’s policies.

Excerpt:

For four years now, we’ve heard policymakers and pundits alike defend the Federal Reserve’s quantitative easing based on the idea that, without it, the nation’s economy would have imploded.

Now, a new study from the Fed itself suggests that’s not the case.

The study, by San Francisco Federal Reserve economist Vasco Curdia and New York Fed economist Andrea Ferrero, suggests that quantitative easing (QE) has done little to boost the economy’s trajectory.

“Asset purchase programs like QE2 appear to have, at best, moderate effects on economic growth and inflation,” the economists wrote in a special research note that was released last week.

In their study, Curdia and Ferrero looked specifically at the impact of the Fed’s QE2 program, which totaled $600 billion.

Assuming the $600 billion program lasts for five years — with the Fed buying bonds the first year, holding them for two, then selling them off for the remaining two — the spending turns out largely to have been a waste.

That level of QE stimulus, even when coupled with the Fed’s promise to hold interest rates at zero, likely boosted GDP by a mere 0.13 percentage point, the study found. It added just 0.03 percentage point to inflation.

Bottom line: $600 billion in QE2 spending boosted GDP by less than $200 billion.

[…]And even that minor amount of growth was due in large part to the Fed’s explicit vow to hold official interest rates at close to 0% until the unemployment rate reaches 6.5% or lower, Curdia and Ferrero said.

Take away that promise, and QE2 added just 0.04 percentage point to GDP and 0.02 percentage point to inflation.

What caused it?

With $17 trillion in total U.S. debt — an amount that’s now growing at a rate of $1 trillion a year — the authors argue that the Fed is essentially trapped into printing money through QE.

If QE — which now pushes $85 billion a month into U.S. Treasury and agency debt — stops, interest rates will soar, dragging the economy down.

Fed Chairman Ben Bernanke has been sanguine about this, suggesting this enormous pile of debt can all be sold off with little disruption.

We’re not so sure. Once the Fed begins selling off its massive $3.6 trillion in assets acquired under the QE program (see chart), it will send interest rates surging and tank the economy.

Even more troubling is what it says about current politics.

The White House and a Democrat-led Senate have boosted spending dramatically — outlays as a share of GDP rose initially by 25% under President Obama

The Fed, by buying up much of the newly issued federal debt, has become the No. 1 enabler of a spendthrift government that’s pushing us to the brink of fiscal disaster.

At $85 billion a month, QE2 spending is roughly equal to the amount of federal debt we add each month.

We elected a Keynesian who thought that government could create economic growth (jobs!) by borrowing money and printing money. The countries of the world largely cheered our decision to elect him. He failed to grow the economy and he failed to create jobs. Eventually, the money he’s been spending to keep a sinking ship afloat is going to run out.

John Hawkins of Right Wing News interviews Dr. Helen Smith about Men On Strike

I thought this interview posted on Right Wing News was a very appropriate thing to post on Fathers Day. The whole thing is worth reading, because it’s stuff that is never discussed much by the people who complain that men aren’t marrying as they used to, under the new changed standard of what marriage is. Well, marriage has changed, and it’s not as attractive to men as it used to be.

Here’s a snip from the interview:

If a man came to you and he said, “Listen, I think marriage is great. There’s no downside to it.” What would you say to him? Not telling him not to do it, but maybe saying, “Have you thought about the other side of this?” What are some of the negatives for men in marriage that are making men less likely to marry?

Well, the first negatives are the legal ones. If man does get divorced, he’s much more likely to pay alimony. For example, about 97 percent of alimony is paid by men, only about 3 percent by women. Men tend to lose with their children more often. Only about 10 percent of men get custody of their children if there’s a divorce. In marriage, …if a man finds out a couple of years down the line that the child isn’t his, the state, in certain states — not most states — a man can be forced to pay for that child even though that child is not his. At the same time, if he wants a vasectomy — now this one is hard because it’s actually not on the books — but if a married man goes to a doctor and wants a vasectomy, most doctors in this country will not perform a vasectomy unless that man gets his wife to sign off.

…If he wants to leave the marriage, a woman can just point her finger and tell her lawyer that a man committed child abuse, domestic abuse — and a lot of times it’s just taken as a given. If a woman wants a restraining order against a man in a marriage, men most often are taken to jail when, you know, the woman calls the police. However, studies actually show that violence in domestic relations is almost 50% from men and 50% from women. If a woman gets angry for any reason, she can simply accuse a man and men are just assumed guilty in our society.

The other thing is psychological reasons. Men’s self-esteem suffers more than women when they don’t see their friends as often and that’s because women tend to congregate a little more. When men lose contact with those friends, their mental and, you know, their psychological health can suffer from that. Men are also generally given the worst part of the house once kids come along. The man is kind of put downstairs to the basement, whether he wants to be there or not. Now sure, a lot of men might enjoy the basement, but they shouldn’t be forced down there.

In my work over the years, I’ve actually seen men who hang around outside or they’ll say, “I don’t mind being outside in the garage,” but the minute they get a divorce they’re right back in that house and wanting the full use of it.

So, I do think that there are a lot of issues that men want to consider when they think about marriage because in our society if you make a mistake and if you’re a man, there’s a lot more at stake. If you’re a woman and you make a mistake, yes, it can be bad, but the state is with you. You probably are going to get your children; you probably are going to get some child support; it’s more than likely you’re not going to be kicked out of your house. There’s even more support for you. There are a lot of organizations to help women; there are almost none to help men.

You know, one way to tell if a woman you like is interested in marriage is to read her an interview like this and then ask her for her feelings. If she is dismissive of the feelings of men, and the changing incentives that men face in this world, then you should really reconsider marriage to her.

By the way, if you’d like a quick re-cap about how feminism has changed marriage, here are a few of the main bullet points that describe what marriage used to mean:

  1. Being the legally and socially recognized head of the household
  2. An expectation of regular sex except in rare cases
  3. Legal rights to children
  4. Lifetime commitment
  5. The presumption of premarital chastity from the wife
  6. Spritual leadership role that is not undermined by forces outside the home
  7. Moral leadership role that is not undermined by forces outside the home
  8. The right to work to earn money and spend it as you see fit

There are more, but those are a few. And you can see, with a little reflection, how different laws and policies have degraded the old definition of marriage and put in place a new feminized definition that takes away the woman’s responsibility to choose a man wisely, to be responsible and self-controlled, to do her part to be accountable to her husband’s leadership, and to avoid choices that destroy the marriage.

Here are some specific things that undermined the 8 points above:

  1. Governmental meddling in the household and imposing values on children in public schools
  2. The normalization of sex-withholding as a way of undermining male leadership
  3. Uneven custody laws and false accusations during custody hearings
  4. No-fault divorce, which encourages women to initiate divorces in order to get the marital home, alimony and child support
  5. Sex education, taxpayer-funded contraceptives, taxpayer-funded abortion, single mother welfare
  6. Public schools teaching things that dogmatically that undermine religion, like Darwinian evolution
  7. Public schools teaching things that dogmatically that undermine morality, like sex education
  8. High tax rates, massive welfare spending which has resulted in inflationary monetary policy

Note: I am chaste and most of this stuff hasn’t really impacted me personally as much as it affects men who have married and had children. I am just being analytical about the way the world is for men.

Very often, women are blissfully unaware of how their own voting undermines men’s willingness and ability to get married and to stay married. Instead of recognizing the motivations and needs and goals of men and changing themselves, they often just resort to insults and blaming. And of course there is a non-stop chorus of male voices who affirm this – even conservatives and Christian leaders do it. The man-up crowd often tells men flat out to lower their standards and let the woman rule regardless of her ability to listen to men, care about men’s goals or care about men’s feelings.

9.5 million people have left the workforce under Obama

BLS Labor Force Participation April 2013
BLS Labor Force Participation April 2013

CNS News explains the real state of the work force in America.

Excerpt:

9.5 million Americans have left the workforce during the presidency of Barack Obama, according to the Bureau of Labor Statistics.

In April, the total number of Americans counted as “not in the labor force” declined for the first time since December, but that number was still near a record high at 89,936,000.  

Those not in the labor force declined by 31,000, from a record high of 89,967,000 in March.  That broke the recent record of 89,304,000 not in the labor force in February of this year.

Since February 2009, the first full month of Obama’s presidency, 9,549,000 people have left the labor force.  There were 80,387,000 Americans not working that month, compared with 89,936,000 not working or looking today, according to the latest economic release from BLS.

The Bureau of Labor Statistics (BLS) labels people who are unemployed and no longer looking for work as “not in the labor force,”and that includes people who have retired on schedule, taken early retirement, or simply given up looking for work.

In the 50 months since Obama has been in office, the number of people counted as not in the labor force has declined 16 times.

Remember that during that period, we have been adding more people through birth and immigration, and running up our national debt by over SIX TRILLION dollars since Obama took office (total debt is now $17 trillion). When you spend that much money, you should be seeing MORE people employed. And you would be seeing that, if it’s being spent on private sector job creation. But it’s not. It’s being wasted. And the very people who voted for Obama – the young people – are the ones who will have to pay it all back. Without jobs! Is collecting money from government welfare a long-term solution to repaying the debt? That’s what we are doing now – putting millions of people on disability and welfare. Is that going to help them to pay back all of Obama’s borrowing later?

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