RUSH: Here it is, QE3, straight from the horse’s mouth. The Federal Reserve statement: “To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee agreed today to increase policy accommodation by purchasing additional agency mortgage-backed securities at a pace of $40 billion per month.”
So, there it is, ladies and gentlemen. It’s basically a bond-buying program. It’s being called another aggressive stimulus program. Forty billion of mortgage debt per month, and they’re gonna continue to purchase the assets until the outlook for jobs improves substantially. Well, the outlook for jobs is not going to improve substantially as long as we have policies in place by Barack Obama and the Democrat Party. So this means forever, until the outlook for jobs improves substantially. So we’re basically printing more money, QE3. Printing money equals inflation, equals Zimbabwe, Third World. The stock market loves it. It’s like a sugar high. Stocks are gonna go through the roof. The stock market is going to love this. In fact, they already do. And that will be fine with Obama.
The optic of the stock market going up will, in his view, hopefully cancel out all the other bad economic news, like the unemployment number today is back up again, no improvement whatsoever. In fact, there hasn’t been any improvement at all. It’s not even being discussed because Mitt Romney’s the big problem in the Drive-By Media. This is a huge amount of money. Why is it necessary to spend $40 billion a month if the private sector’s doing so well? Obama’s claim, “We’re coming back.” The whole Democrat convention: We’re roaring back, we’ve turned the corner, we’ve turned the tide, whatever. They’re gonna purchase these assets until the outlook for Obama’s job improves, is what they really mean. It’s his job they’re worried about. The vote, by the way, was 11 to one at the Federal Reserve. It didn’t work.
Well, interesting question. Snerdley said, “If the other QEs haven’t worked –” quantitative easing, printing of money, stimulate the economy, “– if stimulus 1 didn’t work, if QE1 didn’t work, if QE2 didn’t work, why will this one?” It won’t. It will create the illusion that things are working with, what, 55 days before the election. That’s all this is. Again, this is not designed to revive the economy. This is designed to revive Obama’s election chances. That’s all this is. As I said in the first hour, a campaign contribution is an exact way to look at this. People aren’t going to understand that, I don’t think. If you run around, put it that way, people you want to persuade. It may work. I don’t know. But none of the other QEs have worked to revive the economy. And this won’t either, but the hope is it revives Obama’s electoral chances by creating an impression or optics that there’s economic activity and, of course, there will be in the stock market. It’s the kind of thing causing the stock market to skyrocket. Business Insider has a story that gold has spiked, stocks are surging to five-year highs today because of this. It’s all illusion.
RUSH: Back to Ben Bernanke and QE3 for just a second. The Fed is making $40 billion of bond purchases a month, mortgage-backed securities purchased by the Federal Reserve to stimulate the economy. Nothing they’ve tried before has worked. This is the Federal Reserve, Ben Bernanke, going all-in for Obama today. I’m telling you, folks, they are panicked in Obamaville. It’s like I said moments ago. Really, with all this support they’re getting, all of this propping up from the media everywhere — Hollywood, academia, pop culture — Obama ought to be up 20%.
They should have been able to take Romney out just this week over this national security business if Obama had any believability, if he had any credibility. If the media had the power that they used to have, if the media had the monopolistic power they used to have, they could have killed Romney off the past couple days. Oh, they’re trying. They’re still trying, and I’m telling you: They’re frustrated as heck that they haven’t been able to. So here’s Bernanke today with QE3. Nobody knows what’s gonna happen.
Theoretically what ought to happen with this kind of printing of money is hyperinflation. What ought to happen here is the cost of things skyrocketing — gasoline, grocery bills, utilities, you name it. We have never done this before. This country has never printed money like this before. We’ve never borrowed money like this before, not even a fraction of this. We’ve never pumped like this. We’ve never tried this before.
We have never flooded the country with illegitimate dollars like this — and when I say “illegitimate dollars,” these are not dollars from resulting from any kind of growth or production or productivity. These are illegitimate dollars. They’re not real. I mean they’re real, but they’re not related to any economic activity. We’ve never done this before, and the stock market right now is going nuts. They love it ’cause there’s new money involved.
NASDAQ’s up 52, which is big for NASDAQ. They love this kind of infusion because this money is used to buy securities, bonds, or what have you. The Dow is up 235 right now. But it could trigger a market plunge down the road because what this illustrates is that there is panic. There’s panic at the highest levels of the institutions that have stewardship over this country and its finances. If left alone, we’re headed to a financial collapse. If Obama’s reelected, it’s just a question of when.
Is it 18 months? Two years?
It’s not a question of “if” we’re going to financially implode; it’s a question of when. And this pumping now announced by Bernanke today is evidence that they’re panicked. And if anybody where the big money is gets the idea that there’s panic behind this? Then, “Katie, bar the door,” as to what might happen with the stock market. I’m not gonna predict. I don’t know enough. All I know is, this has never been done, and now there’s nothing more to offer Wall Street.
It’s clear that what they want is hyperactivity on Wall Street so Obama can say, “See? There’s great economic activity out there!” That’s to cover up all this other “middle class shrinks to all-time low” news. No-new-jobs news is out today. This Bernanke guy is… Well, here. Romney has put out a statement. The Romney campaign has put out a statement on this today, QE3, and I have the statement. I’m holding it here right in my formerly nicotine-stained fingers. (shuffling paper)
Here’s the Romney statement: “The Federal ReserveÂ’s announcement of a third round of quantitative easing is further confirmation that President ObamaÂ’s policies have not worked. After four years of stagnant growth, falling incomes, rising costs, and persistently high unemployment, the American economy doesnÂ’t need more artificial and ineffective measures. We should be creating wealth, not printing dollars.
“As president, Mitt Romney will enact bold, pro-growth policies that lead to robust job creation, higher take-home pay and a true economic recovery.” Note to the Romney campaign: Later today will you tell us what you’re gonna do to do all that? I mean it would help. No, I don’t doubt ’em. I just say, “Lay it out there! What are you gonna do? What is a ‘pro-growth policy’? What’s gonna lead to job creation? What’s gonna lead to higher take-home pay?”
Put it out there!
We know this doesn’t, so tell us what the plan is.