Why do people always try and use their publicity and investing newsletter to shove their own political ideology down their readers throats? They try and make the connection between politics and stock trading, but the connection is forced at best. Take for example Mark Skousen’s, a big contributor to the republican party and the conservative movement, and his latest political rant to readers in his October edition of Forecasts and Strategies, like this republican view point is really going to help you be a better investor:
“Bernanke’s motivation was largely political. He could have waited for two months to start QE3. Why the hurry? The answer is clear: Bernanke fears for his job. The Fed is no longer politically independent. I am skeptical of conspiracy theory, but I can see one developing behind closed doors at the Federal Reserve. Maybe there’s a secret underground tunnel to the White House. Not surprisingly, Obama has increased his lead in the November elections.” – Mark Skousen, Forecast and Strategies Newsletter Published 09/24/2012
Facts always destroy conspiracy theories. Ben Bernanke was appointed by George Bush and the republicans so the suggestion by Mark Skousen that somehow Ben is Obama’s little bitch is nothing more than an insult. Mark’s claim that Bernanke not waiting until after the election to start QE3 is proof that the Fed is in Obama’s back pocket is not proof at all. This conclusion reached by Mark Skousen completely ignores the fact that since April of 2012, manufacturing and jobs numbers have steadily dropped to levels so low that they destroy the notion that the U.S. economy is slowly improving. In fact, Bernanke warned everyone back in July that if things did not improve and improve quickly, additional stimulus would be needed.
I find it funny how republicans like Mark Skousen were saying as far back as 2011 that the economy wasn’t getting better, in fact it was getting worse. So finally, Ben Bernanke agrees with republicans on this point and he moves to take action and now republicans reverse their position saying things like “it wasn’t necessary” and the only reason he did this was to save Obama’s job. Come on. That’s being intellectually dishonest. You can’t hold both positions. Either the economy has been slowly getting worse for the last year and that’s why Ben took action, or the economy is improving just fine and Ben didn’t need to take action and thus he’s doing this for President Obama.
This is why I’m an independent thinker folks. I closely examine logical positions and I look for inconsistencies in them. When I find inconsistencies in logical positions, it usually means that the person holding that logical position is an ideologue that is holding on dearly to a political philosophy and is twisting the truth to suit his own biases.
The other point the republican ideologue Mark Skousen makes is that he says “Why the hurry?” He then answers his own question by saying, “The answer is clear: Bernanke fears for his job.”
Once again, facts destroy this conspiracy theory. Bernanke’s current 4 year term is not up until January 2014. This means that regardless of who becomes our next President, Bernanke will still have his job for a whole year beyond that! Considering that it was the republicans who put Bernanke in charge of the Federal Reserve in the first place, there’s absolutely no indication that any party that wins the White House will remove Bernanke as chairman.
The more likely answer to why the Federal Reserve did a QE3 is not a conspiracy at all. It’s actually quite boring really. The Federal Reserve officials are acting in whatever they think is in the best interest of the economy. I disagree with conspiracy theory assumptions. Also, I dislike it when people who disagree with someone, immediately move to attack a person’s values or their judgment. I mean think about it. To say that Bernanke is conspiring with Obama to keep Obama as President, and thus Bernanke gets to keep his job, is attacking Bernanke’s value system. To believe that, you would have to accept the premise that Federal Reserve meetings and the hours spent every day by economists and board members on the Federal Reserve is all just an elaborate lie to fool everybody into thinking their making judgments based on economic numbers when in reality, the only judgement their making is to keep Obama in as President or Bernanke his job. That’s attacking Bernanke’s values as a person and the oath of office he took to support and defend the Constitution of the United States.
Skousen goes on to say, “Not surprisingly, Obama has increased his lead in the November elections.” What are you talking about? So let me get this straight, 1 week after QE3, Obama has increased his lead as a result? Wait a second! Most people voting for Obama don’t even know that a QE1 took place, let alone QE3. I thought most people voting for Obama were lower IQ people, you know, those lazy 47% of Americans who expect the government to just give them things like food and health care. So how could these uneducated, lazy Obama voters actually get inspired by QE3? I mean I thought the only thing that motivated and inspired these people were free government handouts? How can Obama voters be intelligent and savvy enough to parse through the inner workings of QE3 and to suddenly, in 1 weeks time, come out in even greater numbers for the President because of QE3?
Once again, an illogical argument coming from republicans. Either Obama voters are lazy and dumb and are not savvy enough to understand profits, business, corporations and complex financial speech like the kind issued by the Federal Reserve, or their smart savvy investors who read through QE3 and like it and are now supporting the President in greater numbers as a result.
I think the whole idea is false and that nobody new is voting for Obama because of QE3 and that any increase in the polls have more to do with people not liking Romney than it has to do with QE3.
Then Skousen goes on to say, “Maybe there’s a secret underground tunnel to the White House.”
So let me get this straight, QE3 suggests that a secret underground tunnel to the White House exists? Mark Skousen needs to stick to stock picking and leave politics to other people.