Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: ChinuSFO who wrote (86520)	12/9/2010 6:41:20 PM
From: koan	Respond to of 149317

youtube.com video courtesy of Wazoo. I cannot say that the above could not happen. Marty Zweig used to say: "don't fight the fed". What he meant by this was if the fed raised interest rates sell your stocks. If the fed lowers interest rates buy stocks. Simple as that. He pounded that drum day after day and he was dead right. We have a similiar situation now. It is hard for me to call this OT. How about highly political-lol! The picture in my head. And it is also the truth (who would deny it?); and I think an equation which could cause the above. Here it is: For 30 years the number 1 goal of every Republican has been tax cuts. They won a zillion elections pounding the drum of tax cuts. Democrats found it hard to compete saying raise taxes-lol. And the republican's said they would cut social program equally, but none of them ever did. Can't. NO one will cut defense, social security or medicare and that is all there is to cut. The CBO said the bush tax cuts for the rich did more to add to the deficit than the two wars combined. Right now the Republican's are holding everything hostage for one thing: to get huge tax cuts to the richest 2% of the people. They are holding up unemployment extensions (in a depression), even the start treaty which even bush, rice and Baker and snowcroft said was neceassary. Point being the Republican's are now in control of the house which appropriates money; and you can count on them to fight tooth and nail for as many tax cuts to the rich as they can. That is all they know how to do and all the care about. They even fought for (and got)the estate tax cut which helps 39,000 people above 10 million and adds 60 billion to the debt! Here is the problem: Tax cuts do not create very many jobs. Worst kind of stimulus and they add to the debt. We have been doing it for 10/30 years and look where we are. We had no appreciable debt when Raygun took office. But that is not my point. My point is this, as the Republican's insist at any cost to continue massive tax cuts for the top 2% of the population (as a stimulus!?) and tie up the congress. Just go back and look at the last two years, today the only government agency able to function is the fed. So as the only thing the congress is doing is adding to the debt with tax cuts which do not help the present situation, and tieing up congress, then the fed feels they are the only ones with power to act. Bernanke does not feel he can just sit around and do nothing as he sees clearly we are on the brink of a deflationary depression. Right on the cusp. And it is my understanding that there are no good economic theories to deal with deflation, except inflation. Talk about a puzzle wrapped in an enigma-lol. So he keeps employing QE as his only big gun. But that is inflationary and our senses tell us more than the 4% Bernanke is shooting for. And as our political parties seem destined to war for (ever?)no one is working in concert to solve our budget problems with a clear head, or solve them at all. The rest of the world sees this. The recent budget panel recommendations did not even get out of committee! And this is why inflation is certain and gold will continrue to rise,IMO, it is all so predictable.