There weren't even any good economic numbers only a forecast of good economic numbers "Thomson Reuters forecasts a gain of 4.3 percent for same stores sales."
The Republican's in Congress manufactured the debt crisis in an attempt to make themselves look tough and to thumb Barack Obama in the eye. They forgot however that austerity is a dirty word on Wall Street and it wasn't a bright forecast that calmed the markets as much as it was Santa Claus in the form of Ben Bernanke promising more free money until at least 2013.
The Federal Reserve doesn't care a wit about Congress or Barack Obama they can all go to hell on a hang glider as far as the Fed is concerned. Budget cuts mean nothing to the Federal Reserve; they create money from thin air. The Fed orders the Treasury to print say, a billion dollars. Then the Treasury sells a billion dollars in Treasury bills to cover that printing. Those treasury bills are then sold plus interest, today that's 2.125 percent. So the cost to you, the taxpayer is one billon dollars plus $21,250,000 interest.
The Federal Reserve then lends that money to banks such as Goldman Sachs for .17 percent, that's seventeen one hundredths of one percent. So the banks cost to borrow that billion dollars from the Federal Reserve is one billion plus $1,700,000 interest, or a net loss to the American Treasury of $19,550,000 per billion dollars lent. Multiply this loss figure say, ten or twenty times or even a hundred times and you wouldn't even begin to get close to the actual figure because the Federal Reserve has printed 1.7 trillion dollars over and above the amount it held in 2008. So our figure of a 19,550,000 dollar loss on each billion lent would be roughly, $3,323,500,000 that's in addition to the additional $1.7 trillion printed.
Ben Bernanke reassured the Wall Street boys that any austerity would exempt them. With the prime interest rate at 3.25 percent and savings accounts paying two percent there is little money to be made in traditional banking. Lend $200,000 for a home loan for 30 years for 5.5 percent? In this economy, what would you call a safe job in this economy?
Actual unemployment in this country is around 20 percent while in Las Vegas Nevada one in 14 homes are in foreclosure in Tampa Florida the number is one in 20, Sacramento one in 19 and in Phoenix the number is also one in 14 homes. So sure, lets all go shopping.
CNN - Bachmann wins Iowa straw poll, narrowly besting Ron Paul
August 13, 2011|From Paul Steinhauser and Peter Hamby,
"Minnesota Rep. Michele Bachmann won the Ames Straw Poll Saturday, besting eight other Republican candidates in a nonbinding but politically significant vote in the first caucus state of Iowa.
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