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Ben Bernanke is Single-Handedly Propping Up the Obama Administration

BEGIN TRANSCRIPT

RUSH: This priming of the pump that Bernanke continues to do. There are a number of things that puzzle me by it, but the first thing is, Bernanke and the Fed. The report that they gave yesterday before announcing that they're gonna continue all of this printing of money, was that the economy is unstable, that the economy is actually weak.  Yet everywhere I look in the media, I keep hearing about a roaring recovery.  I keep hearing about, "Why aren't there any new jobs, because, look! The economy's coming back, and profits are soaring." 

We just had that story in the Drive-By Media yesterday about how wonderful the economy's doing. Well, here comes the chairman of the Federal Reserve saying, "Oh, no it's not, and if we don't continue to pump $1 trillion a year into it, it's gonna plunge."  So this economy is being artificially propped up.  Now, here's the thing about this, folks.  Everything in life can be habit forming.  So the Federal Reserve is essentially printing $1 trillion every year. 

Now, technically, they're not printing $1 trillion, and they are not adding this to the money supply.  This money is... It's a very complicated, circuitous thing to try to explain.  It ends up in the stock market, for all intents and purposes.  As such, gas prices are rising and the dollar is tanking. That means higher inflation.  There are some consumer benefits to this, though.  Mortgage rates are gonna come down a little bit because interest rates are being depressed as well.

So interest rates are coming down, because people are invested, like, in their 401(k)s. If you have anything left in your 401(k), whatever's left in your 401(k) is invested in the stock market.  The stock market is doing quite well because of all of this, so your 401(k) is probably doing okay.  That is the kind of thing that if the general population learns it, "Oh, man I kind of love this QE infinity, whatever it is."  But that's the thing: It's artificial.  There isn't any real growth that is behind all of this increase in the money supply. 

It is inflationary, by definition. 

Yeah, your 401(k) would be doing much better if there's a genuine market boom and a genuine consumer boom and a genuine economic boom, but we don't have the fundamentals in place.  There's no way to have a genuine boom of anything under liberal economic policy.  It just isn't possible -- and this is not me speaking; this is history.  Liberal economics fails. You look in Europe. All of these socialist democracies in Western Europe are just starting to turn away from their welfare state. 

Holland was the most recent one.  But it's starting to happen all over Western Europe --which, of course, many liberals think is heaven on earth.  But they can't afford it anymore.  They don't have central banks where they can just keep pumping digital money that doesn't really exist (until they print it) into their economy like we can do.  But we can't do it forever.  At some point, this has to stop, and I don't know that you want to be around when that happens. 

Look at it this way: Whoever is benefiting from this... I don't care who they are; it doesn't matter.  It's just for the example.  Whoever is benefiting from $1 trillion a year is gonna get very used to that.  They're gonna grow very accustomed to it, just like any welfare recipient does, just like any living organism that becomes totally dependent.  But at some point, it has to stop, doesn't it?  At some point, we have to stop printing this money. 

At some point, somebody's gonna get elected. Somebody's at the Federal Reserve is gonna realize that this is a disaster in the making and can't continue -- and when that happens? For example, when the beneficiaries of this primarily are people on Wall Street, you saw I think just last week a little bit of fear and near panic when it was floated that Lawrence Summers might end up being the new chairman of the Fed.  He doesn't like all of this trillion-dollar a year quantitative easing. 

He doesn't like all this spending, and he talked about how if he was chairman, he would stop it -- and the market reacted as it would be expected to and plummeted, until somebody floated the news that Summers wasn't gonna be the guy and then Summers announced that he wasn't gonna be the guy and then Bernanke came out yesterday and said, "Don't worry about it. We're gonna keep going." The market went right back up.  At some point, this has to stop.  It's all artificial. 

I think one way of looking at this is that Ben Bernanke, for whatever reason -- who knows, it could be political, could be his own view of economics -- is single-handedly propping up the Obama administration, which is otherwise an economic disaster and failure. He's single-handedly propping it up by injecting $1 trillion a year into a sector of the economy, and then the trickle-down theory comes into play as they expect that money to reveal itself, such as 401(k) accounts.

If yours is invested in the market, your 401(k) is gonna go up a little bit because of this, and mortgage rates are gonna come down because interest rates drop.  But, on the other hand, your wages aren't going up and the cost of living is going up. The gasoline prices with this are never gonna come down because of the inflationary effect of it.  So I don't know.  It's all part of this "nothing seems real anymore."  There doesn't seem to be any foundation, solid foundation supporting anything. 

And now, what was it, the president of Brazil who has canceled a White House visit?  Folks, do you know the last time that happened?  The last time a world power -- semi, of any size -- canceled a visit with the United States? Usually when this happens it's we cancel it.  This doesn't happen.  It doesn't happen like this.  This is unprecedented, and what that means is that we aren't what we used to be in the eyes of the world.  That's all Obama foreign policy, pure and simple all. 

There is a downward spiral that's taking place here that's being artificially propped up, and, yeah, it's working for a while. But at some point it's gotta stop, and then what?  Nobody knows.  But the odds are that it's not gonna be pretty.  I mean, these are already the super rich who are largely the beneficiaries of all this spending, and the income gap continues to widen. The rich are getting richer.  I wonder why.  Why would that be? 

Why would the rich be getting richer when the Fed's pumping $1 trillion into the stock market?  Makes total sense, right?  But here we are with a Democrat regime and Democrat Party that made people believe that they're gonna fix this income gap.  The Democrat Party, they stand for the little guy. They're gonna make sure the rich get theirs! They're gonna make sure these rich people get their tax increase.

They're gonna make sure these rich people get punished. Because the rich people are only rich because they've taken everything from the poor, right?  So after five years of Obama, the rich are getting richer and that gap between the top 1% and everybody else is wider than ever -- and it only stands to reason.  If we're pumping $1 trillion a year into the place where the rich fiddle around with their money, what do you think's gonna happen?

BREAK TRANSCRIPT

RUSH:  We start in Springfield, Illinois.  Hi, Todd, great to have you here.  Hello.

CALLER:  Rush, nice to talk to you.  I have a question for you.

RUSH:  Yeah.

CALLER:  I'm convinced that the Democrats, no matter how long they're in office, are going to have to keep this quantitative easing up in order to keep the train on the tracks.  My question is, if someday the Republicans can regain the White House, I would assume one of the first things that the new president would do was stop this.  Well, then everything's gonna go to hell --

RUSH:  Well, wait a minute, I don't know that a Republican president can.  The chairman of the Fed's doing this.  Now, the Fed's an independent agency.  Now we know the reality is that there's collaboration.  So I get your question.  The Fed would be the one to do it; the Republican Party president would get the blame.  It's a legitimate question.

CALLER:  You know, I can hear Pelosi and Reid now, we have another Herbert Hoover in the office.

RUSH:  Yeah, well, we've got one now, is the bottom line.  But, no, it's a legitimate question.  I mean that's the whole point.  At some point this stuff does have to stop, and when it does -- there are people who are being habituated to the existence of this income, this inflow, and it's significant.  A trillion dollars a year, from nowhere.  Just because they happen to be at the stock market, they're getting it.  Just because that happens to be the focal point of the regime wanting to show economic growth. 

You know, here's the thing.  For all of the people that vote Democrat 'cause they think they're for the little guy, for all the people that vote for Democrats 'cause they think they're gonna stick it to the rich, for all of these people that vote for Democrats because they really care about the downtrodden, it's just the exact opposite.  Who is it that always does the worst during Democrat regimes? 

Now, back to this question that I asked of you ladies.  Has it been worth it to get your free birth control and abortions while you're waiting tables?  The alternative is -- I mean, if you had economic freedom, if you had a roaring economy, you could buy your own stuff, and a lot of other stuff, too.  Well, I think that's rather obvious.  The question is being asked, how many leftists will take my question and not even mention the story?  Of course it's gonna happen.  I knew that.  Look, it's a tweak, Snerdley.  It's a media tweak.  I'm just gonna have fun with 'em here. 

But really, it's the same old question that we always ask.  Would you not rather provide for yourself and have even more freedom and more opportunity than sit around and just accept what little you get?  I mean, look at the price you're paying for this.  Is it really worth it?  I mean, the women that voted for Obama were convinced that the Republicans hate them, that there's a War on Women, and that if the Republicans got elected, they wouldn't be able to get abortions.  This is what the Democrats tell 'em.  If Republicans get elected, if Romney got elected, you're not gonna get your birth control pills, and they believe this.  So in exchange in their birth control pills they live under an administration where the best work they can get is $10 an hour.  Food stamps, too, they may be able to help out.

But, I mean, for crying out loud, as a person who wants everybody to be the best they can be because that's what defines a great country. As somebody who understands that in this country alone people can be the best they can be. They can be better than they ever thought they could be. They can reach heights in this country nowhere else they'd have a chance to.  And so many people throw that away for the promise of what ends up to being so little.  That Julia ad that they ran, I guess it worked.  You know, cradle to grave, being taken care of by the Democrat Party, including your little three-square-foot garden outside your government apartment that you can take your little pitcher and water your three or four flowers and watch them grow and then write a poem. 

END TRANSCRIPT

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