During the last week of the 2014 elections, a potential time bomb’s fuse was lit when Dr. Janet Yellen, Chair of the Federal Reserve, announced the termination of Quantitative Easing.
This program allowed the Fed to purchase $85 billion in bonds each month. This series of “cash” infusions into our economy has propped up our stock market in my opinion. The termination of the program will create a partial vacuum that could cause the market to drop. I hope not; however, my fear is that like many times in our recent economic history, economic situations similar to this have had a quite negative effect on our economy. And as the pundits have been saying, “all economic malaise is blamed 100% on the Republicans.”
The Republicans are trusting souls. Ronald Reagan said, “Trust but verify.” Recently, there has been no verification of anything because this administration is completely non-transparent.
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Our economy is the number one issue; and if there is a slight drop in the indicators, the Republicans will have stepped into the abyss once again without a game plan. A reactionary response is not suitable; some action must be taken to head off the potential problems that should be anticipated when over a trillion dollars is dumped into the economy each year for the last 5 years. Is this an effort to monetize the debt? Is the Fed using the QE programs to gain total control of the equity that the bonds symbolize? These are just two questions that should be asked–not just by the Republicans, but by everyone.
If you are looking at putting money away for your retirement, this could pose a huge potential problem–not that inflation isn’t already a major problem. Our system is broken, and the politicians are shoveling more onto our plate than we can digest. The art of political deception has been around since the dawn of time. I believe that the state of the Art has risen to a new level, and we are watching the wrong hand of this economic slight of hand.
One lone voice is not sufficient, and this piece is an attempt at a wake up call. Too bad no wake-up call has ever worked in the past. Hopefully, “Veni, Vedi, Vici” is not on our economic headstone when the future archaeologists sift through the rubble of our once-great country.
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Eric Miller was the 2014 Libertarian Congressional Candidate in Indiana’s 6th Congressional District. He can be reached at [email protected]
The views expressed in this opinion article are solely those of their author and are not necessarily either shared or endorsed by the owners of this website.
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