Floyd and Mary Beth Brown

Housing is no better because of QE2, as April housing starts fell 11%. Marketwatch.com says, "Housing is double-dipping. According to the National Association of Realtors, the average price of an ‘existing’ home was $177,300 in August, just before QE2. Now it's $163,700 - or 8% less. Economic growth has slowed. It was 2.6% last summer. It's a miserable 1.8% now. Meanwhile inflation has risen, from 1.2% before QE2 to 3.1% now."

We all wish for better news, but Obama’s policies are pointing us in the wrong direction. Regulation of business is growing. One CEO of a mining firm we talked with said he is looking for new projects abroad. “I have been fighting for nearly a decade to open a new mine in Montana, and at every turn the government places roadblocks in my way. How am I to create any jobs?”

If Obama’s tax policies are enacted then we could see marginal income tax rates of 60% in some states.  Obama clings to socialism and his new programs in healthcare and welfare.  They all retard growth. Unemployment taxes are at record highs in most states and this further depresses hiring.

The Fed has invested nearly $2 trillion in Treasury debt since 2008. The investment hasn’t paid off, but when the relentless buying of US Treasury debt ends, we have no similar experience to guide us. One result could be even further collapse and a full blown depression.


Floyd and Mary Beth Brown

Floyd and Mary Beth Brown are both bestselling authors and speakers. In 1988, working from their kitchen table, they formed Citizens United.
 
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