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Begin Mike Church Show Transcript
Mike: You just said the key word there. I was in an email exchange last night with our friend, Professor Anthony Sanders, over some of the news here I have today. For example, the claim by some out there in the media, in the mainstream financial media, thats Fox Business News, CNBC, Bloomberg and the like, [mocking] Obamas done it! Hes done it! The economy is fixed! Oh, my god! I never thought Id see this day!
There are men and women dressed in suits, meeting in Times Square like those returning heroes were in Times Square in 1945 when victory over Europe was declared — do you remember this? — or victory over Japan was announced. The famous picture of the sailor bending his gal over halfway backwards and laying a big old smoocherini on her, you know that picture Im talking about? Well, they did that yesterday in Times Square when it was announced that the economy had totally rebounded, why the Dow crossed 1300, why employment numbers are down, why Bernanke testified were going to have low interest rates all the way through 2015.
I dont know if you heard this part of the Bernanke testimony in Congress yesterday. Congressman Paul had yet another opportunity to interrogate the chief financial officer of the United States, because thats what Bern-yank-me basically becomes in the scheme of things. Bernanke announced yesterday on behalf of the Federal Reserve, our paper money cartel system, that were going to keep interest rates below one percent all the way through 2015. If you hear that in passing and you dont follow economics, you probably think, Thats pretty cool. Ill be able to borrow all the money I want el cheapo. Theres the problem.
I was asking Professor Sanders last night — my question to him, and I think you people listening to this show ought to have the same question on your mind if you know anything, just little smidgens of economic common sense. If you keep the interest rate artificially low, at less than one percent, and youre announcing that its going to remain so all the way through 2015 — now, were in 2012. Thats three years by my count, two and a half, three years by my count. What you are basically saying is that youre going to encourage borrowing activity that otherwise, under market-based and market-set interest rates and economics, would not happen. Mr. Gruss, let me ask you a question. What is that called? What are you inflating if you do that?
Andrew: Not sure.
Mike: A bubble. A bubble. Youre pumping a bubble up. This bubble has been pumping up since 2008, since the last quarter of 2008, since the first interest rate strike. [mocking] We gotta prime the pump. We gotta get people out there spending. As a matter of fact, the glad-handing that was happening yesterday on Fox Business News, folks, I had to turn it off. People doing cartwheels down the street, Consumer confidence is at an all-time high, for the recession, that is. Consumers are out there and they just cant wait to part with their dollars. They just cant wait to spend that money. I would say they cant wait to spend the borrowed money.
Youve got to burrow down into these economic figures to actually try to get a little bit of a grasp or an understanding of what is actually happening here. With all this talk of, [mocking]
Mandeville, LA – Exclusive Audio & Transcript – Smart investors aren’t buying this 13,000 market that’s going on.They know that the Fed and the bailouts are artificially inflating itand it’s creating… A BUBBLE… that’s going to come crashing down,hard. Listen to today’s clip from the Mike Church Show and learn moreabout what’s going on with today’s stock market.
The GDP has gone up. The economy is growing. No, its not. No, its not. Its not even beating inflation. Yet, it is presented as though this is a paradise, yet another paradise on Earth. I was listening to Peter Schiff last night. Peter Schiff was saying, Guys, guys, smart investors are not buying this 13,000 stock market binge that were on right now. They certainly are not buying this whole charade of the Obama Keynes stimulated economy as being able to sustain this purported recovery that were in.
Folks, we are in for — I know Ive been saying it for a while, but one of the things that we Austrians cannot predict or control is apparently the unlimited capacity of the federal government using the Federal Reserve to print and buoy the economy with all the money that they inject into the system. I know that sounds pretty complicated, but its really not. They just keep injecting more liquidity into it. Heres one of the indications of how you know that this is continuing apace. Number one, the price of a barrel of oil continues to rise as consumption declines. This defies markets. I know that part of the reason for this is because we are right there on the precipice of maximizing and refining the supply thats currently available. One day of shutdown somewhere in the Middle East could screw the whole thing up. Then youd really see prices rise. So I know one of the reasons why.
The other reason is inflation. The inflation is now baked into the cake. Youre going to see this — even if the demand stays low, youre going to see the price per barrel stay somewhere above $80 a barrel. That is shocking news. The historical average, if you look at a chart for the last ten years or so, its about $45 dollars. I think it got down to $39 or $40 after the 2008 crash. The historical average is about $45 a barrel, an oil man will tell you. In 2008 dollars, $45 a barrel is about where it ought to be. Thats not where it is. Its at $80. Now your historical average is going to be at $80. What does that tell you? What does that tell you about the dollars required to buy the barrel of oil? If youve been to the supermarket lately, you probably have seen this. Youve seen it in the price of bread. Youve seen the price of milk, eggs. Milk, the number one, Id say, the number one indicator. We ought to have a milk index. Things do not look good.
End Mike Church Show Transcript