It’s no secret that President Obama, in his first 6 months in office, chose Monetary Policy over Fiscal Policy. However, most people do not understand what that means. Essentially with Monetary Policy, President Obama cleared the treasury to print more money and infuse the economy with it; however today we are feeling the effects of this effort. With QE1, QE2, and now QE3 the money supply in the US economy has been growing at an alarming rate. This in turn has impacted the cost of goods sold outside the US. Moreover, it has increased the cost of goods Americans buy in our daily lives and will increase in the next 12 months potentially over 10%. That means while your income may be suffering and not growing, the goods you buy like bread, daycare, or even gas will cost more. This upcoming election will be determined by how the voting public perceive the good, the bad, and the ugly aspects of our economy and which candidate will provide the better plan to get out of it. But it all starts with the policies implemented – Monetary vs Fiscal.
In my recent article on Fox Business, Obama Chose Monetary Policy – And You’re Feeling It, I discuss the detailed impact of President Obama’s choice.
Ed Butowsky is the managing partner of Chapwood Investment Management and is an internationally recognized expert in the investment wealth management industry. Ed is also a frequent guest on other networks such as CNN, NBC, ABC, Fox News, Fox Business, and Bloomberg to name a few.
Tags: cost of goods, economy, ed butowsky, fiscal policy, inflation, mitt romney, monetary policy, money, president obama, presidential election, recession, treasury