Last night, Governor Palin shared a link via Facebook of an article written by Eric Bolling:
President Obama had us all fooled… until now!
I spend a great portion of my time analyzing the economy and the affects of policy on our lives. Last night I put it all together.
President Obama claims to be the protector of the poor and the middle class, a man of the people. He vilifies the wealthy “millionaires and billionaires” every chance he can.
Here’s how the scam works. Banks are allowed to “borrow” from the fed at virtually zero% (0%). they then take “our” money and loan it right back to the government, a risk free handout to the banks, from us. The bank’s loan some of our money to the middle class and poor at 4% or 5% whatever they can get. Home loans, car loans, etc., that’s more free money to the banks. And, what they can’t loan, they throw into the stock market… in bundles of billions of dollars… driving up stock prices.
All these gimmicks create huge profits for the banks, printing and loaning trillions of dollars keeps interest rates at zero. Obama and Bernanke keep telling America low interest rates are good for the economy. But look what’s really happening:
Interest rates artificially held at zero crush middle class families who have investments in bonds. Many do. And it forces the middle class to make riskier and riskier investments. Which they cannot afford to do.
Interest rates artificially held at zero crush the poor by driving prices to the moon.
Interest rates artificially held at zero are destroying the nest eggs of retirees. There are millions of retirees who thought they would be financially stable when they retire. The problem is that they are heavily invested in fixed income products. Fixed income means their investments are tied to interest rates. Meaning zero interest, zero returns and zero income for retirees… so, it forces our parents and grandparents to work 5 or 6 more years than they had planned. Ever wonder why more and more retirees are headed back to work. Greeting customers at Wal-Mart or bagging groceries at Albertson’s? Thank Obama.
You can read the entire article here.
The one thing I always like to mention is that there is one more irritating part of the Obama/middle class myth that makes me want to leap out my skin. That is the “tax cut” that 95% of Americans have received. This of course is the 2% decrease in the Social Security Tax withholding. Therefore, less money is going into social security than what would be if Obama hadn’t tried yet another social experiment on the country. His band aid to this of course is to print more money out of thin air.
So much goes into this and it affects our markets and the power of our dollar. While the average American pays 2% less for social security, this economic uncertainty has driven up the cost of energy, fuel, food, and has driven down the value of wages. Further, it’s cost us jobs. The average middle class family that Obama claims to champion is much more in the red now than they were even under the Bush years where we all could agree that some belts needed tightening anyway.
Anything Obama claims to have inherited has gotten much worse. You don’t blame your predecessor only to turn around and amplify his worst qualities.
Update by Doug: I’m compelled to add my two cents to Steve’s point about Obama’s 95% tax cut. Another component of Obama’s “I gave tax cuts to 95% of Americans” myth has to do with the Earned Income Tax Credit. The EITC allows people who don’t pay any federal income taxes to receive a “tax credit” on taxes they didn’t even pay. Thus, Obama is able to get away with the claim he gave income tax cuts to 95% of Americans when only about half actually pay them. Effectively, the EITC is nothing more than a welfare check, but “earned income tax credit” has a much nicer ring to it than “welfare check”. What a country.