742. Help Obama to win the second term (10/24/2012)
The recent Gallup poll shows that Mitt Romney leads over President Barack Obama in president Campaign. That’s just a gimmick to cheat people. The election result is pre-decided. Obama will stay for his second term. It doesn’t relate to any politics. It is for a case of the Feds. They need Obama’s Health Reform that they forced Chief Justice Roberts to change his mind in June to pass the “Health Reform”. (see “ 726. The surprise turnaround of Chief Justice (7/4/2012)”)
To keep Obama to stay in his seat, they have to create an economic background that favors him. Two months before voting date, in early September, we saw European bank chief Draghi said the bank would buy the bond with no limit. How could this affect US president election?
Draghi helps out Obama campaign
By Robin Harding in Washington September 6, 2012
Barack Obama’s chances of re-election as US president rose on Thursday and the words that did it were not his but Mario Draghi’s.
Long before Mr Obama stood up to accept the Democratic nomination in Charlotte, North Carolina, the head of the European Central Bank had sketched out a new plan to buy the bonds of troubled eurozone countries.
That will not move the polls; it will not move a single vote. But Mr Draghi has lowered the gravest of risks to Mr Obama: a pre-election meltdown in the eurozone that would have blown up banks, pulverised Wall Street, and routed a fragile US economy back into recession.
If that happened, it would not be Mr Obama’s fault, but he would get the blame. Just as the failure of Lehman Brothers doomed his rival John McCain in 2008, a eurozone implosion would create economic odds too great for Mr Obama to surmount.
Within days, Federal Reserve Chief Bernanke pushed out another QE which would push up economy temporarily but hurt it in long term with inflation. The Republicans felt it immediately. The timing of issuing QE3 is not a coincidence. It helps Obama.
Fed risks political fallout from QE3
By Robin Harding and James Politi in Washington September 14, 2012
Mitt Romney, the Republican candidate, duly opened fire on Friday after the Fed began an open-ended third round of quantitative easing (QE3), under which it will buy $40bn of mortgage-backed securities a month.
QE3 will create another housing bubble.
Marc Faber: Fed's QE forever is ludicrous; no country has become rich from consumption
Source: BI-ME , Author: Constantine Gardner Fri September 14, 2012
"Asset prices will go up and the money will flow to the Mayfair Economy," he said, defining the latter as an "economy of the rich people whose assets prices go up and whose net worth increases" without any trickle down benefit to the real economy.
What you have is a small economy that is booming and the majority of the economy is being damaged by QE, Faber explains.
Faber sees the Fed's monetary policies over the last 15 years as mainly responsible for the various asset bubbles (Nasdaq, real estate etc...) leading to the subprime crisis in 2007. "The money printers and the neo-Keynesians interventionists are responsible for the crisis, reckons Faber, and people should know this."
Dr Bernanke's attempt to boost growth and reduce unemployment will end up, according to Dr. Faber, in a fiscal Grand Canyon with never ending deficits, the majority of the economy being damaged, the man in the street facing higher prices and losing his job.
Faber sees the Fed's monetary policies over the last 15 years as mainly responsible for the various asset bubbles (Nasdaq, real estate etc...), the Nasdaq bubble is the dot.com bubble, I talked about these two bubbles from #733 to #739. And the Federal Reserve now continues to create the third one. At the purpose to help the Feds to remove the hot potatoes in their hands to the ordinary people.
743. Create a hoax of a better off economy (10/29/2012)
Three months before the voting date, the unemployment rate was still high that it made the re-election unlikely for Obama.
What Does an 8.3 Percent Unemployment Rate Mean for the Election?
By: Jon King | August 5, 2012
Many pundits (including this one) have made the point that if the unemployment rate is at 8% or higher that the president will have an uphill battle to win the election.
The reason why 8% is such a hurdle is that no modern president has ever won re-election when unemployment was over 8%. Actually, if one wants to take an even more skeptical view, they could say that no president since Roosevelt has won re-election with unemployment over 7.2%.
It’s hard to convince people the unemployment rate would drop below 7.2% in two months from 8.3%. But they still could manage to get a figure of 7.8% in order to make Obama’s re-election more reasonable.
Fact Check: Labor Secretary Solis Misleads on Jobs Revisions
by Joel B. Pollak 5 Oct 2012
Suspicion about the federal government's September jobs report has fallen on Secretary of Labor Hilda Solis, who appeared on CNBC this morning and defended the numbers from the Bureau of Labor Statistics (BLS), claiming--falsely--that upward revisions of 86,000 jobs were from the private sector. In fact, the new number is entirely accounted for by upwards revisions to state and federal government payrolls.
The BLS reported that while only 114,000 jobs were created in September--which would have translated into a rise in unemployment from 8.1% to 8.2%--the unemployment rate fell dramatically to 7.8%. That unusual drop is the fastest in nearly three decades, and was unexpected even in the rosiest predictions.
One reason for the rise was an upward revision of 86,000 to the July and August jobs numbers--all of which came from a 91,000 increase in the estimate of public sector jobs. Private sector job estimates were actually revised downward by 5,000.
In addition, the BLS reported a large rise in the number of part-time jobs, adding 600,000 jobs to the total--a dramatic increase of 7.5%, not explained by any other economic indicators--and raising questions about whether the government had changed the way it counted part-time workers.
Nobody can verify the figure. It’s all under their control. They could cover up the truth of 911 attack. They could make Bin Laden died twice. So what to maintain a puppet president? If they could have kept a war criminal (who activated a war with a lie) to stay on his second term, what’s the problem for another puppet? All they have to do is to create a hoax of a better off economy for several months then blame everything on the coming financial cliff.