Use access key #2 to skip to page content.

FreeMarkets (92.43)

Why Obama's Hands Are Tied

Recs

16

July 13, 2011 – Comments (11)

In 1972, Pres. Nixon used a trick to get elected - he used price controls.  While this caused a host of problems, the public loved him because it made him look like someone who cared about the common man.  He did this because inflation was staying above 4% annually in 1971.

This trick could virtually guarantee Obama's Reelection today.  Imagine fixing gas prices at $3.35/gal - the people would love him and blame the big oil companies for the long gas lines that will be sure to follow.

But the government lies have weaved a web that have tied Obama's hands.  By continuing to insist that inflation is tame (even though it is exceeding 8% based on measurements used in the 1970's) Obama can not use price controls.  That would be an acknowledgement that inflation is high, and the Keynesian easy money policy would come under attack.

So Obama has to put his re-election into the hands of Ben Bernanke.  That he can somehow boost the economy, bring down unemployment and keep inflation from getting even further out of hand.  If I was in Vegas, I'd bet heavily against that from happening.

11 Comments – Post Your Own

#1) On July 13, 2011 at 2:27 PM, ajm101 (32.88) wrote:

So you think the people that would appreciate price controls but would be too stupid to understand the cause of long lines would think, "oh, but this is an implicit acceptance that inflation is a purely monetary phenomenon"?

There would be no downside to Obama doing something that was that poor governance, and that cynical (what, will he lose all the tea party votes?).  So you might have to just concede that he is not interested in governing in a bad and cynical way for electoral reasons.

Report this comment
#2) On July 13, 2011 at 3:28 PM, Frankydontfailme (27.77) wrote:

what  are talking about ajm?

He means explicitly clear price controls such as setting the price of gas.

We currently have subtler price controls:

attempting to elevate housing prices with mortgage forgiveness blah blah blah

attempting to elevate the auto industry with cash for clunkers and government bailout 

attempting to lower silver prices through CME manipulation

attempting to lower oil prices with lies ("transitory"), and manipulation (releasing reserves)

attempting to lower the interest rate by printing money to purchase Treasuries (the existence of the fed in general = price controls) 

The list goes on. He's not ethical. He'll do anything to get reelected but something as obvious as setting the price would clearly blow up in his face.

Report this comment
#3) On July 13, 2011 at 4:45 PM, miteycasey (30.20) wrote:

Didn't he release oil from the strategic reserves? That serves the same purpose.

Report this comment
#4) On July 13, 2011 at 10:01 PM, dbjella (< 20) wrote:

miteycasey

What was weird was when he release oil reserves gas did go down.  I noticed it and I paid less for gas for about a week or so, BUT it is almost back to where it was before the release :( 

Report this comment
#5) On July 13, 2011 at 10:30 PM, ajm101 (32.88) wrote:

If you think that President Obama manipulates silver prices, then we really don't have that much more to discuss, I'm afraid.  If he does, then by all means take the gift that you've been given and buy as much of it as you can.  Best of luck.

Report this comment
#6) On July 13, 2011 at 11:36 PM, ajm101 (32.88) wrote:

The rest of what you mentioned were stimulus programs, not price controls (subtle or otherwise).  The silver point isn't really price controls either.

Price controls are price controls.  And your response really didn't address my point in the first place.  If this is how you conduct yourself, I'm really not surprised that people don't put efforts into replying to you.

And really classy mentioning your gun.

Report this comment
#7) On July 14, 2011 at 11:24 AM, Rehydrogenated (32.26) wrote:

 Also, when TSHTF don't come to my property looking for a bailout because I'll be armed with a full auto Beretta and I  trespassers will be shot.

Armed resistance works really well on fascist governments. I can't wait til we round up all the people that refuse to serve the common good.

Good luck Rambo.

Report this comment
#8) On July 14, 2011 at 6:12 PM, Frankydontfailme (27.77) wrote:

http://www.reuters.com/article/2007/08/28/us-world-firearms-idUSL2834893820070828

Good luck rounding us up.

Hope it doesn't cost too much.

 

Report this comment
#9) On July 15, 2011 at 11:46 AM, ajm101 (32.88) wrote:

Frankydontfailme - you should seek counseling.

Report this comment
#10) On July 15, 2011 at 11:56 AM, ETFsRule (99.92) wrote:

"By continuing to insist that inflation is tame (even though it is exceeding 8% based on measurements used in the 1970's)"

Are you saying that the 8% figure is more accurate than the inflation measurement being used today (because that seems to be what you're implying)?

Can you explain the differences between the two methods, and why you feel the 8% figure is more accurate?

Report this comment
#11) On August 04, 2011 at 3:17 PM, DorminABC (99.92) wrote:

"Are you saying that the 8% figure is more accurate than the inflation measurement being used today (because that seems to be what you're implying)?

Can you explain the differences between the two methods, and why you feel the 8% figure is more accurate?"

 

Seconded.

Report this comment

Featured Broker Partners


Advertisement