RUSH: Baton Rouge, Louisiana, this is Tina. I’m glad you called. Great to have you on Open Line Friday. Hi.
CALLER: Hi, Rush. It’s great to talk to you again.
RUSH: Thank you.
CALLER: My question is, I wanted to know if you thought that what Ben Bernanke did yesterday with the Fed, the money, and the debt increase and the borrowing, et cetera, is gonna help Obama in this election, because that’s my fear, is that people will look at the stock market or whatever and —
RUSH: No. That’s gonna be one of the results of this, the increased stock market activity will allow the regime to say, “Look, the economy is doing really great, look at the stock market.” I want you to hear me on this. The thinking at the Federal Reserve — I studied this last night and today. It’s not my opinion. I’m telling you what I have learned. The thinking, Bernanke, the Federal Reserve, that if they didn’t do this, it’s double-dip recession time, and Bernanke, of course, doesn’t want that during a campaign ’cause he is in the tank for Obama. They’re trying to stave off this collapse, folks, that’s coming. This is a Band-Aid to stave off the financial implosion that is coming if these policies don’t change. And there is no policy change here.
They’re not even really buying this debt with cash. They’re buying more debt with debt, mortgage bonds and security. And the theory — this is amazing — the theory this time is the same for the previous two. The theory is to put more money out there in the hands of lenders. The purpose is to put more money in the hands of banks so they will loan to small businesses so that small business will invest in itself. It hasn’t happened the first two times. It’s not gonna happen this time because the businesses that have good enough credit to borrow money are afraid of what to expect if this guy gets elected. They’re afraid of the big Taxmageddon that’s coming. They’re afraid of Obamacare. They’re afraid of what’s gonna happen if he gets reelected. They’re not gonna borrow.
This is designed to stave off the collapse, and what’s gonna have to happen at some point is Bernanke’s gonna have to do the opposite. At some point, he’s gonna have to reduce the money supply. At some point, interest rates are gonna have to go up. At some point, inflation is going to have to go up. This, I have no doubt, is an effort to help Obama. But it’s also an effort, these guys think, in their hubris, to stop a financial collapse that they believe is imminent. And they think they can stop it with this, even though the first two QEs had no effect whatsoever.