The BBC trumpets Obama’s Stimulus for growth:
Global stock markets rise on US Fed stimulus plan
Global stock markets have risen after the US Federal Reserve moved to kick-start recovery by pumping more money into the economy.
They missed this:
SAN FRANCISCO (MarketWatch) — Egan-Jones Ratings Co. said Friday it downgraded its U.S. sovereign rating to AA- from AA on concerns that the Fed’s new round of quantitative easing, or QE3, will hurt the U.S. economy. The ratings agency said the Fed’s plan of buying $40 billion in mortgage-backed securities a month and keeping interest rates near zero does little to raise GDP, reduces the value of the dollar, and raises the price of commodities. “From 2006 to present, the US’s debt to GDP rose from 66% to 104% and will probably rise to 110% a year from today under current circumstances; the annual budget deficit is 8%,” Egan-Jones said in a note. “In comparison, Spain has a debt to GDP of 68.5% and an annual budget deficit of 8.5%.”
The US credit rating being downgraded…might not that merit a mention?
Not familiar with Egan-Jones? You may recall they were the firm that downgraded the U.S. last July before the S&P did.
“Regardless of who does the downgrade, you have to pay attention—maybe they’re not as well known, but Egan Jones has been ahead of the pack for a while,” Joe Saluzzi, co-manager of trading at Themis Trading told CNBC.
Mr Obama will do anything to ensure he is re-elected. And the bankers, fed, sec, bofe, fsa etc will be only too pleased to assist.
Cue “Two Eds” Flanders to denigrate Egan Jones, and any other Beeboid to dismiss them as partisan.
Would someone with more economics background than me tell me how much the President of the United States is individually responsible for the health or sickness of the America economy? There are other factors, are there not: Congress, Senate, states, international economy, war & peace, etc.?
The President is as responsible as he wants to be, can have as much or as little influence as capability allows. Congress writes the laws which actually make it all happen, the people who run the actual Administration departments make decisions which have real effect, and the Fed has occasional impact, like the brief market boost when Bernanke makes announcements about printing more money. The President can make policy and get someone in Congress to introduce it for voting (note: Even though we often refer to Representatives as “Congressman X”, “Congress” itself is both the Senate and the House of Reps. – that’s why it’s dishonest for the BBC to refer to an “intransigent Congress”, since at the moment only one house is run by Republicans). If it’s crap, like The Obamessiah’s joke budgets, it goes nowhere. If it’s ObamaCare, He twists arms to get it done. Alternatively, the President can veto something that would actually help if it doesn’t suit his ideology, or veto something that would be damaging.
But the President can definitely have a lot of influence on both what Congress does, and on how people feel in general. He also appoints all the Cabinet Secretaries and key Administration people who really do have a direct effect on the economy. The Treasury, Energy Sec. and the EPA are two prime examples of how a President can put ideologues in charge who really do screw up the economy.
Outside influences are real enough, of course.
BBC keeping quite on the nuts and bolts of the US economy and even try to suggest Obama doing a good job by digging a bigger hole ( a la Ed Balls). Obama has his eye on the election and will risk damaging the economy to get re elected.
Off topic a little. They were saying on BBC this morning that anyone with mental problems is barred from serving in the House of Commons. Really !!! so why did we have a raving lunatic as Chancellor of the Exchequer and then Prime Minister for a total of 13 years ?
No wonder there was a freakout when Andrew Marr asked about Gordon Brown taking medication.
I suppose the examination by a panel of experienced, professionally qualified psychiatrists and psychologists comes after the potential member of the House of Commons presents his or her complete medical records to the panel of doctors?