Our politicians in Washington (especially the Obama administration) are following the economic policies of Federal Reserve Chairman Ben Bernanke, who made these economic predictions over the past four years (YouTube Video):
On July 14 California's bond ratings, already the lowest in the nation, took another hit. Moody's Investors Service downgraded $72 billion of the state's general obligation bonds by two steps, from A2 to Baa1. The new rating, just two steps above junk grade, will increase the costs of California's borrowing and deepen the state's financial distress. A few day earlier, Fitch Investors downgraded the state's general obligation bonds from A- to BBB, also two steps above junk grade in its rating system.
“Consumer prices shot up in June by the largest amount in 11 months,” the Washington Post reported June 15, “reflecting the biggest jump in gasoline prices in nearly five years.” The 0.7 percent June increase in the Consumer Price Index represents an annual rate of more than eight percent as well as the first consumer symptom of the hyper-inflation the Federal Reserve created over the past year.
The Ludwig von Mises Institute’s Howard S. Katz has revealed that the Federal Reserve Bank has inflated the U.S. currency to unprecedented levels since September 2008 and that it is hiding the fact. Katz cited a Federal Reserve letter he received in response to an inquiry where the Fed admitted that its Open Market Committee stated it “has increased the Fed balance sheet to levels never before seen.”
Just days after Vice President Joe Biden told George Stephanopoulos that it was “premature” to push for another “stimulus” spending bill, Obama economic adviser Laura D’Andrea Tyson told a seminar in Singapore on July 7, "We should be planning on a contingency basis for a second round of stimulus." Though Tyson is a member of Obama’s Economic Recovery Advisory Board, she said in the speech she was speaking for herself and not for the administration.