The Silent Tax Obama Will Use To Win The Election

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Dismal employment numbers released on Friday by the U.S. Department of Labor can mean only one thing for America’s Keynesian money managers: Future consequences be damned, it’s time for another round of inflationary quantitative easing (inflationary fiat money making).

On Friday, the Labor Department released a jobs report that showed nearly 40 percent of the Nation’s population is jobless. The percentage of the population as a whole that makes up the U.S. workforce was charted at only 63.5 percent, the lowest it has been since September 1981.

Despite mainstream economists’ collective assumption that the U.S. economy would show around 130,000 new jobs added for August, the actual figure was only about 96,000.

The report, released on the back end of President Barack Obama’s speech Thursday night at the Democratic National Convention, has given fuel to both his and challenger Mitt Romney’s campaigns.

“If last night was the party, this morning is the hangover,” Romney said in a written statement Friday morning. “For every net new job created, nearly four Americans gave up looking for work entirely. This is more of the same for middle-class families who are suffering through the worst economic recovery since the Great Depression. After 43 straight months of unemployment above 8%, it is clear that President Obama just hasn’t lived up to his promises and his policies haven’t worked.”

Obama claimed in his DNC address that despite the dismal current outlook he has “a real, achievable plan that will lead to new jobs, more opportunity and rebuild this economy on a stronger foundation” if Americans re-elect him.

Pundits have for the past couple of months been speculating that the Federal Reserve would implement another round of quantitative easing that would likely create a short-lived economic boon just before the Presidential election in November. Taking into consideration the latest job numbers, it appears that the Fed will most likely seize the opportunity to act this week at a previously scheduled Federal Open Markets Committee meeting.

The assumption is backed up by a statement released last week by top banksters at Goldman Sachs:

With today’s August employment report showing a nonfarm payroll gain of 96,000 and an unemployment rate of 8.1% because of a drop in the participation rate, we expect a return to unsterilized and probably open-ended asset purchases at the September 12-13 FOMC meeting.

We now anticipate that the FOMC will announce a return to unsterilized asset purchases (QE3), mainly agency mortgage-backed securities but potentially including Treasury securities, at its September 12-13 FOMC meeting. We previously forecasted QE3 in December or early 2013. We continue to expect a lengthening of the FOMC’s forward guidance for the first hike in the funds rate from “late 2014” to mid-2015 or beyond.

In other words: Fire up the presses, Ben Bernanke, we’ve got an election to win.

Another indicator of the high likelihood of Fed action that could lead to inflation was delivered via market data last week following the jobs report. Frenzied investors sent gold prices back to a six-month high at $1,740 an ounce.

Sam Rolley

Sam Rolley began a career in journalism working for a small town newspaper while seeking a B.A. in English. After covering community news and politics, Rolley took a position at Personal Liberty Media Group where could better hone his focus on his true passions: national politics and liberty issues. In his daily columns and reports, Rolley works to help readers understand which lies are perpetuated by the mainstream media and to stay on top of issues ignored by more conventional media outlets.

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