The Federal Reserve concluded its regularly scheduled, two-day Federal Open Market Committee meeting today, and their post-meeting statement revealed that they revised downward their projections for GDP and revised upward their unemployment estimates, through 2013.
This strongly suggests that the ten Federal Reserve bank chairman are reading the tea leaves in the same way as 76 percent of Americans, they do not see any substantive improvement on the horizon until after the November 2012 elections, and only expect improvements to begin in 2014 and beyond.
According to FOXNews, reporting in a Reuters article today, officials now expect the world’s largest economy to expand by a tepid 2.5 percent to 2.9 percent next year, down from the rosier 3.3 percent to 3.7 percent they were expecting in June.
They saw the unemployment rate going no lower than 8.5 percent to 8.7 percent by the end of 2012, up from the more sanguine 7.8 percent to 8.2 percent range envisioned in June.
Fed officials believe the economy will have reached full employment when the jobless rate drops to between 5.2 percent and 6 percent. In their forecast, the unemployment rate would still be at 6.8 percent to 7.7 percent at the end of 2014.
Fed Chairman Ben Bernanke has called the lofty levels of U.S. unemployment a national crisis.
Why should the Federal Reserve expect any change in performance, when the Democrat ideology of trying to “tax and spend” our way out of this situation, is in direct conflict with the Republican/Tea Party mandates of no new taxes, especially against “job creators”, and substantial cuts to our bloated entitlement programs?
This struggle could not be more apparent than the “log jam” which has held the so-called “Super Committee” in stasis, since it began meeting two months ago.
“I’m worried you’re going to fail, fail the country,” Erskine Bowles bluntly told the committee that is charged with finding at least $1.2 trillion in reductions over the next decade.
Bowles “chops” come from having been President Bill Clinton’s chief of staff, and more recently as the co-chair of the Simpson-Bowles “National Commission on Fiscal Responsibility and Reform”, an 18 member bi-partisan public/private group created by President Obama in early 2010.
The commission first met on April 27, 2010, and after much work delivered their comprehensive report on December 1, 2010, but in a vote taken on December 3, 2010, it only secured 11 of the 14 votes necessary to adopt it, and send to Congress for approval.
So, it is no surprise that sources familiar with the discussions gave the six Republicans and six Democrats on the panel less than a 50-50 chance of reaching agreement because of an impasse over taxes.
With a deadline three weeks away, the evenly divided, 12-member committee has shown few signs of progress. Democrats have demanded higher taxes as their price for accepting significant savings from benefit programs such as Medicare, but have been rebuffed by Republicans who oppose tax increases.
The real problem in this stand off is that the Republican have “seen this movie before”.
Democrats are actively inciting “class warfare”, many believe the result of which is the “Occupy Wall Street” movement, which liberals and the mainstream media have desperately tried to co-op, and turn into their own latter day “Tea Party,” whose mantra is [having the] ‘1 percent pay their fair share’ [of taxes].
This ‘1 percent’, followed closely by the next 9 percent, are also the desperately needed “job creators”, and more taxation will dampen their incentives to invest in the expansion of their businesses, creat jobs and lower unemployment.
Regardless, it has already been shown, ad nauseum, but totally ignored and deflected by Democrats and the mainstream media, that the so-maligned “millionaires and billionaires” pay double or triple the tax rates paid by the “middle class”, and also pay the majority of total income taxes collected, while 47 percent of American pay no tax whatsoever.
But, even if such a tax were allowed to pass, as far as the two fastest growing entitlements, Medicare and Medicaid, the Democrats offer no [necessary] reform at all–only savings from “forced” reductions in spending, focused on further “gouging” providers and suppliers. Many experts believe that this would ultimately cause many providers to leave the Medicare/Medicaid “system,” thereby severely restricting the availability of medical care for seniors and the indigent.
Back in August, at the eleventh hour when the vote to increase the debt-ceiling was passed and this committee formed, the financial markets responded by the worst 8-day market decline in some time–signaling that a pultry $1.2 trillion dollar reduction over 10 years, against a growing $14.7 trillion national debt, was a virtual joke, and not to be taken seriously.
Then, the International Monetary Fund chimed in with its “recommendations”, key amongst which, was bringing the “unsustainable” U.S. entitlement programs under control, just like those imperiling the very future of Europe.
Finally, Standard and Poors took the bold step to lower the credit rating of the United States of America–for the first time in history.
It is clear that the liberal/socialist ideology of the Democrats, the mainstream media and President Barack Obama are taking a stand against the 76 percent of American people who recent polls show feel that the country is going in the wrong direction.
And the financial markets, where the real “skin in the game” is accounted for on a minute-by-minute basis, agree.
If the United States is going to recover before it collapses, Democrats who are governing to “please” college students, the [unemployed] “human zoo” of OWS, [public] labor unions, those who have made poor life choices and expect [taxpayers] to “clean up their mess,” and those hipocrites commonly known as “limosine liberals”–the objective of whom is a socialist takeover to redistribute wealth from those who sacrificed to earn it–to those listed above, must come to an abrupt end.
The ideological force majeure that is miraculously bringing about this change is the Tea Party, being implemented everyday by the growing number of people who align themselves with the credo of smaller-less intrusive government, balanced budgets, lower taxes and greater freedom.
The allusions of the post-meeting statement released by the Federal Reserve today are very foretelling–we can expect no real change in our fortunes, until President Barack Obama and a large number of the Democrats in Congress are removed from office, after the November 2012 elections.
The very future of our country and its people desperately depend upon it.
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