Op-ed:

No matter how Obama twists it...it’s still about the economy

By: Diane Sori

Just what ‘We the People’ do NOT need...the Federal Reserve recently stated that they’re getting ready to intervene if strong consistent economic recovery doesn’t start happening soon.

Oh happy day...another useless stimulus might be on the way.

"Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery," stated the minutes of the Federal Open Market Committee’s most recent meeting.

Our economy is stalled we all know that even if Obama doesn’t, and we don’t need the Feds to tell us what we all can see just by looking around at all those unemployed.  And if you just look at our gross domestic product (GDP), the best measure of our economy's health, and see that economic growth only grew at a snail’s pace of 1.5% in the second quarter, down from 2% in the prior three months, and 4.1% in the fourth quarter of 2011, it’s kind of in your face obvious.

NOT good news for Obama at all especially if you remember his infamous words when he was first elected, or usurped as the case may be, that if he does NOT turn the economy around by the end of his first term then he does NOT deserve a second term.

Well, Obama, you most definitely do NOT deserve a second term.

The economy is now and has always been the real touch point of this election, and any Federal intervention will garner, and rightly so, political backlash from Republican leaders who have basically told Ben Bernanke and the Feds to butt out. Any rush to the rescue by the Feds this close to the November election would be nothing but a politically based maneuver to favor Obama.

But if by chance the Feds do try to be the economy’s savior, how would they do it...most likely by taking into account that with interest rates still near all-time lows, they probably will try for a third massive round of bond buying, known as quantitative easing, in order to stimulate the economy.

And that is NOT a good thing.

Quantitative easing is a government policy sometimes used to increase the money supply by buying government securities or other securities from the market.  Quantitative easing works by increasing, albeit only temporarily, the money supply by flooding financial institutions with capital in an effort to promote increased lending and liquidity.  Central banks use quantitative easing when interest rates have already been lowered to near 0% levels and have failed to produce the desired economic stimulating effect.  The major risk of quantitative easing is that, although more money is floating around, there is still only a fixed amount of goods for sale. This will eventually lead to higher prices or inflation and leave us NO better off than we are today.

And leading economists have predicted a bleak economic future if Obama is re-elected as he has NO clue as to how a successful economy works.

Bottom line...our economic recovery has indeed slowed and is on the verge of stalling.  And a harbinger of NOT good things to come is the fact that gas prices have started creeping up again, now being close to $4 a gallon for regular in many areas around the country.  And this has Obama worried and has him considering a release of oil reserves from the U.S. Strategic Petroleum Reserve...just in time to use as more campaign fodder for his re-election bid.

So now there’s even more NOT happy economic news on the home front, and its ‘We the People’ who are on the receiving end of that news.  Hurry up November 6^th, we can’t take much more of this!