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Barack Obama, Propaganda, Jimmy Carter, Inflation, High Interest Rates “Reinvestment Act” and The “Misery Index.” January 30, 2009

As I listen to the rhetoric that is coming from Barack Obama’s tone of voice I have to ask myself if the rapid collapse of our economy is being caused by Barack Obama telling us day after day that the economy is in very bad shape? Thus unnecessarily eroding the confidence of the American people. Thus making people believe that this huge spending package is the only way to save the The United States Of America? Is this rhetoric manipulative propaganda?

Let’s go back to an article that I had wrote previously.

I had wrote of the possible influences that Frank Marshall Davis may have had on  Barack Obama.

One of the tactics that has propelled the the Communist Party into successful power is PROPAGANDA. Propaganda is the perfect tool to sway people into thinking the same way the leader does.

My point is that it seems that Barack Obama is telling us that the economy is very, very bad and will get worse.  He tells us everyday.  We as the public already know this. It seems that he is over zealously telling this every day so the public will back him on this massive spending plan that will shift the wealth from the private sector to the government by making us dependent on the government for jobs, bailouts and miniscule tax rebates.  Seeing as how the government does not have this money to give to us, the only solution is to print the money.  Printing money that we do not have gold backing for in the federal reserve is called INFLATION.

Previous Barack Obama Propaganda:

So is Barack Obama’s Propaganda having an influence on the public that is listening? Does Barack Obama’s Propaganda have a great influence in certain sectors of our society

Ok, so what does this mean? Well in a very, very short time it will take more dollars to pay for things. When inflation gets out of control then the Federal Reserve will raise interest rates. Money will cost a lot of money to get. In the end, Barack Obama will create a lot of jobs but when all is said and done, people will still not be able to afford anything, because of high inflation, high interest rates and the inevitable much, much higher tax rates to deplete the over bearing deficit.

If you look back in history to the Jimmy Carter Administration you will find that during Jimmy Carter’s Reinvestment Act, much the same as Barack Obama’s, we went into years of double digit inflation because the dollar was so devalued (The fed printed a hell of a lot of money to fund the Reinvestment Act).  To combat high, runaway inflation the Federal Reserve kept raising interest rates. Now, much to Jimmy Carter’s credit there were 10.5 Million Jobs created under his presidency. However people could not afford to buy anything because the price of merchandise and interest were well beyond the average person.  The end result was the economy did not grow thus we had “STAGFLATION.”

Here is an interesting page from the Wall Street Journal:

Note that during the George W. Bush years there was the lowest unemployment and the the lowest interest rates.  One may argue that George W. Bush only created 3 Million jobs.  But wait…. almost everyone was working. But as the economy began to collapse because of Bill Clinton’s expansion of the Community Reinvestment Act in 1997, the unemployment number skyrocketed in the last months of George W. Bush’s term.  This was not George W. Bush’s fault at all.

Carter: Interest rate, 21%. Inflation, 13.5%. Unemployment, 7%. The so-called “Misery Index,” which Carter used to great effect in his 1976 campaign to win election.

Reagan’s last year: Interest rate, 9%. Inflation, 4.1%. Unemployment, 5.5%.

George W. Bush: Interest rate, 8% down to almost 0%. Inflation, 2.6%. Unemployment, 4.5%.

“The misery index was initiated by economist Arthur Okun, an adviser to President Lyndon Johnson in the 1960’s. It is simply the unemployment rate added to the inflation rate. It is assumed that both a higher rate of unemployment and a worsening of inflation both create economic and social costs for a country. A combination of rising inflation and more people of out of work implies a deterioration in economic performance and a rise in the misery index.”

The Misery Index

So what is my point? I think you can see the parallels between Barack Obama’s campaign and Jimmy Carters campaign and what lies ahead for us. Barack Obama is doing nothing new. It is an almost textbook repeat of the Jimmy Carter administration.  Even the rhetoric is the same. “Reinvestment Act” is the key phrase. Barack Obama also has used the “Misery Index” as an excuse to get elected.

This is how it works folks.  When interest rates climb people invest in high yield bonds, CDs and other interest generating investment vehicles. The public does not invest in stocks that are much riskier. That means that even Mutual Funds shift their assets into to CDs, Money market and bonds.  This makes it very difficult for companies to raise money for capital investments, company expansion, job growth etc. with the sales of company stock etc. What you end up with is STAGFLATION.

If you were to read this article written by John T. Woolley and Gerhard Peters at The University of California Santa Barbara.  You will see the striking resemblance of Barack Obama’s “Change” and what Jimmy Carter did when he was in office from 1977-1981.

Is is true that history repeats itself?



4 Responses to “Barack Obama, Propaganda, Jimmy Carter, Inflation, High Interest Rates “Reinvestment Act” and The “Misery Index.””

  1. marc hill Says:

    I remember Jimmy well. You have stated what I have been worried about. Good job.

  2. I highly enjoyed reading this post, keep on writing such exciting posts.

  3. Bri Says:

    this is a good site good job!

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