On Wednesday, July 21, President Obama triumphantly signed the latest plank in his bid to outdo Franklin Delano Roosevelt’s Depression-era radical expansion of federal government powers. While Obama’s overall program has yet to challenge the New Deal as the greatest federal power grab in U.S. history, the Dodd-Frank Wall Street Reform and Consumer Protection Act is certainly the most massive imposition of federal power ever inflicted on the financial sector.
When John Stossel of Fox Business Network wrote his recent “Memo to Alan Greenspan” column, he recounted many of Greenspan’s failings while Chairman of the Federal Reserve, including especially Greenspan’s relentless expansion of the money supply and lowering of interest rates that set in motion the housing bubble that burst in 2007.
On August 10 President Barack Obama signed into law a $26 billion spending bill that, proponents claim, will save the jobs of 300,000 teachers, police officers, and other public employees in danger of being laid off.
Most people — except possibly the American political class — know that one of the prime causes of the current economic crisis was government policies that resulted in countless people taking out mortgages that they couldn’t possibly pay back. Then financial firms who had made the bad mortgages issued securities backed by these shaky loans. When the borrowers defaulted, the whole house of cards came tumbling down — or at least it would have come tumbling down if the federal government hadn’t bailed out so many firms, delaying the day of reckoning.
The Department of Labor’s Bureau of Labor Statistics issued a news release on August 13 stating that the “Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3 percent in July on a seasonally adjusted basis.” The report also noted: “Over the last 12 months, the index increased 1.2 percent before seasonal adjustment.”
The continuing implosion of the U.S. economy in the aftermath of unprecedented federal bailouts and unemployment programs has now brought forth a stunning loss of 484,000 jobs in a single week. What remains uncertain is when this news will penetrate the consciousness of policy makers in the White House and on Capitol Hill.
According to a new study by the Cato Institute, the gap between the haves and the have-nots in the United States continues to widen. This isn’t much of a surprise; we’ve all become accustomed to the dire warnings, mostly from anti-business liberals within the government, about the rich getting richer and the poor getting poorer. The irony is that those rich, over-privileged classes include – indeed, are dominated by – government employees.
When the Federal Open Market Committee announced yesterday that “the pace of economic recovery is likely to be more modest in the near term than had been anticipated,” stocks in Europe lost three percent of their value, interest rates on the U.S. 10-year Treasury note dropped startlingly as investors ran to safety, and the dollar hit the lowest level against the Japanese Yen since 1995.
An April report from the International Monetary Fund promoting a world central bank and a global fiat currency went totally undetected by the global press for months, but after a blog post earlier this month on the Financial Times’ website, it is now in the media spotlight.
Buried in Friday’s employment report from the Department of Labor Statistics were two key numbers that reflected the slowdown in the economy so long denied by the administration: “private sector employment edged up over the month (+71,000). Thus far this year, [such] employment has increased by 630,000, with about two-thirds of the gain occurring in March and April.” (Emphasis added.) The other appeared in the final paragraph of that report: “The change in total nonfarm payroll employment for May was revised from +433,000 to +432,000, and the change for June was revised [downward] from -125,000 to -221,000." (Emphasis added.)