Signs of economic failure mount.

Obamanomics is based on the idea that the artificially induced financial panic produced Sep 15, 2008 can be cured by the injection of ever increasing FED money. If you are an economist, you watch with fascination to see if all what you have been taught works as you have been told. If you are an interested individual (such as me), you watch with trepidation as you see the Obamabots recreating the 1930s and trying to CHANGE us into a socialist society. It is a process accompanied by incredible hubris, like Obama going to Copenhagen, expecting that his mere presence would sway the IOC to award his crooked friends in Chicago the 2016 Olympic games to milk.

I do not know if I have the gift of words to describe the economic mess the FED has created to elect Obama and its further efforts to negate the effects of the 'mark to market' coup against America. So, let me start. Through various machinations, the FED helped the banks develop an astounding 200+ Trillion bundle of derivatives that sit on the bank balance sheets as "assets." This is more than three times the derivatives that were on bank balance sheets before the meltdown. These derivatives are interest rate sensitive. Should the FED raise interest rates, these "assets" decrease in value and will set off another meltdown of the banks and the Stock Market as well.

So, the FED is obliged to keep interest rates low. How low? The current rate is as low as it can get between 0 and 0.25%. This creates other problems. First, the value of the dollar is reduced viz other currencies and gold. So, the FED must keep interest rates low to keep the Stock Market up, but the low rate is reducing the value of the dollar. The FED can counter this by letting some of the hot air out of the derivatives bubble (which creates some deflation), which reduces money velocity and slows the economy. The FED can also try to manipulate gold prices by selling US gold or borrowed gold, but there is only so much it can do.

The result? A slow economy, high unemployment, loss of the value of the dollar and restiveness in the Stock Market. The FED can not deal with one pile of money without affecting other things. Stagflation with high unemployment is the best the country can hope for under Obamanomics. A continuous downsizing of America is the radicals' goal and it is happening. The edifice of Capitalism is crumbling and people are losing jobs and wealth.

Soon, Liberals will start blaming Obama personally. They will not admit that their ideas are at fault. To be fair to the man, he is just a ventriloquist's dummy, his speeches written for him, delivered via a teleprompter and economic moves are directed by shadowy figures.