This is a guest post from Mr. Accountability.
Factory production has risen almost 25% since its lowest point of the recession in June 2009. Still, because of uncertainty in the future of the economy, consumers have held back their spending and businesses have taken a “let’s wait and see” approach to investing in machinery and equipment. Also, if Europe’s financial crisis worsens, and I think it will, then that would also lead to less demand of U.S. goods and exports. Manufacturing is holding steady, but for how long? The Federal Reserve became concerned when they took a survey and realized that the reason manufacturing looked stable was because the auto industry continued to produce cars throughout the summer when normally they would slow or halt production lines. Lower inflation gives the Federal Reserve more room to try new ideas intended to boost growth. The Feds recently signaled at a meeting that they are ready to act if growth and hiring become weak. This is a signal that the Feds will begin a 3rd round of bond purchases thinking this is the answer. It hasn’t helped up until now, so why try again? We are printing money to buy our own bonds. China no longer will purchase U.S. bonds because of this tactic.
All of this so called government “help” to boost the economy will not and cannot work. Q.E.1 didn’t help. Q.E.2 didn’t help. It only served to prolong the inevitable price we must pay and added heavily to our national debt. Now these great minds are actually thinking of Q.E.3. Greece will have to accept the terms of the Germans/E.U. and give up their country in order to save itself from collapse. Greece has an out of control social economic disaster on their hands. Too many “hands out” not enough “hands on” to pay these slackers. Just like our unions. Too many demands and not enough production to meet these demands. After the collapse of Greece comes Spain and then possibly the United States. The only thing keeping the U.S. afloat is our “ace in the hole”. Our one unique ability that no other country can do is to print money. But if some – like George Soros – get their way and bring on a managed collapse of the dollar, then we – the last truly free nation – will end up in the history books as failures and idiots.
How the U.S. survives this economic assault and attack from within the very halls of our White House will prove one way or the other the words of Benjamin Franklin when after signing the Declaration of Independence, someone in the crowd of people waiting for news of the signing yelled out, “What have you given to us, Mr. Franklin?” His response was, “A Republic, if you can keep it!” He, along with all the other signers knew this moment in time would come where we would be at a crossroads with the very existence of our country and our freedom in the hands of a very few.