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Rush Limbaugh

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RUSH: Take a look here at the unemployment news as reported today by Reuters. Headline: ‘Jobless Claims Drop, Monetary Stimulus Seen.’ Oh, and we have got to talk about this, this QE2, quantitative easing. This is the second phase of printing money. This is the Fed. The target date here is November 2 or 3. That’s when they’re going to have their next meeting. And all eyes are focused on this meeting, and some of them are focused with great fear. Quantitative easing is printing money, funneling a bunch of money into the economy in the hopes of igniting economic growth. Now, insanity is defined as doing the same thing over and over again expecting a different result. How much have we ‘stimulated’? How much have we pumped? The Fed has lent somebody two trillion bucks. We’ve had TARP, we’ve had the Porkulus, we’ve had a couple of stimulus bills of $250 checks to people.

We’ve done nothing but Keynesian stimulus! It hasn’t worked, and yet here comes QE2. Now, the problem with QE2, low interest rates — they’re fighting inflation here, inflation and deflation at the same time. At least this is their stated objective at the Federal Reserve. Now, low interest rates are said to be key to igniting borrowing, which is to stimulate growth. Well, business is already sitting on tons of cash as we have noted on this program. Businesses large and small are sitting on cash; they are not spending it. Many businesses are not interested in credit. It’s not a problem. What they need is customers, and yet doggedly and stubbornly the Federal Reserve continues to say the problem is a lack of credit. No lending. Banks aren’t lending money. The banks are hoarding the money.

The Fed’s printing it, giving it to the banks under the auspices they’re gonna lend it and the banks are hoarding it like everybody else is hoarding the cash they’ve got nobody is willing to spend it because nobody knows what the future holds with the regime. The fear is massive tax increases are coming. People are preparing for that. That looks to be the reality. The best planning. So QE2, quantitative easing, low interest rates. Well, that’s good for borrowers but there aren’t going to be any borrowers. But who is it hurt? Who is hurt by low interest rates? Savers. And hasn’t our government been chiding us for years that we’re profligate-spending consumerists, not saving enough money? Well, people on fixed incomes (largely seasoned citizens and the retired sector) are not going to see their stash, their savings, their portfolio grow because all of this printing is ostensibly going to keep interest rates. Well, that’s the objective.

All the while there are people saying, ‘No, we need to inflate. We need to inflate the currency.’ Well, if you start inflating the currency, the same thing happens to savers. What they have becomes worthless, or worth less, as time goes on. And then what happens? They make up a significant number of people. People who have some savings, retired. If you’re taking away their ability to feed themselves — and, look, one-seventh (ostensibly, supposedly one-seventh) of this country can no longer feed itself. And that’s how I interpret one-seventh of the country being on food stamps. Can you imagine? Can you believe this to be true, one-seventh of our population can’t feed itself? They haven’t the wherewithal to earn a living?

They are totally conditioned to entitlement receiving. One-seventh of the United States of America can’t feed itself? That number is only going to get worse. Now here comes quantitative easing, printing going under the guise this is gonna lead to economic growth. It won’t because it hasn’t. At what point do we stop the insanity, again defined as doing the same thing over and over again expecting different results. This hasn’t worked; I don’t know where it ever worked for any substantive length of time. I mean you really have to wonder, ladies and gentlemen, all the things the Federal Reserve and other government economic mavens are doing, sure looks like they are purposely devaluing the dollar. Why?

Who and why would somebody purposely devalue the dollar? I mean it makes sense if you are impossibly in debt. It’s what Germany tried to do after World War I when they owed the world so much money after the Treaty of Versailles, and look where it got ’em. Got ’em wild inflation and eventually Hitler. So keep a sharp eye on November 2nd, November 3rd. In fact, keep a sharp eye on November 3rd, the day after the election. Keep a sharp eye on what the Fed announces because it will affect how to markets react. In fact, I’ve got a piece here. It’s very long. This is a piece on par, if you remember when I first learned of and then explained to you the concept of baseline budgeting, how the federal budget’s put together.

I’ve come across a strikingly similar explanation of the current financial position that we are in. It prints to 16 pages. My job is to take the complex and make it understandable, to synthesize this into a single segment monologue. I’m still working on doing that. But at some point it will happen. I promise you. So printing, borrowing, I don’t care what you call it: The government is doing too much of it. The private sector is not doing any of what they need to do.

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