You are correct, the markets have been going upwards for ten years now. I remember during the last Presidential election how you kept
spouting off how well you did in the stock markets under Obama. But what you fail to understand is why the markets kept going up under
Obama verses why they are going up under President Trump.
Quantitative Easing Explained
How Central Banks Create Massive Amounts of Money
BY KIMBERLY AMADEO
Updated April 09, 2019
Quantitative easing is a massive expansion of the open market operations of a central bank. It’s used to stimulate the economy by making it easier for businesses to borrow money. The bank buys securities from its member banks to add liquidity to capital markets. This has the same effect as increasing the money supply. In return, the central bank issues credit to the banks' reserves to buy the securities.
The Federal Reserve began Quantitative Easing in
Under President Obama
Where do central banks get the credit to purchase these assets? They simply create it out of thin air. Only central banks have this unique power. This is what people are referring to when they talk about the Federal Reserve “printing money.”
The purpose of this type of expansionary monetary policy is to lower interest rates and spur economic growth.
Lower interest rates allow banks to make more loans. Bank loans stimulate demand by giving businesses money to expand. They give shoppers credit to purchase more goods and services.
By increasing the money supply, QE keeps the value of the country's currency low.
This makes the country's stocks more attractive to foreign investors.
It also makes exports cheaper.
Japan was the first to use QE from 2001 to 2006. It restarted in 2012, with the election of Shinzo Abe as Prime Minister. He promised reforms for Japan's economywith his three-arrow program, “Abenomics.”
The U.S. Federal Reserve undertook the most successful QE effort.
It added almost $2 trillion to the money supply.
That’s the largest expansion from any economic stimulus program in history.
As a result, the debt on the Fed’s balance sheet doubled from $2.106 trillion in November 2008 to $4.486 trillion in October 2014.
That's how Obama got the stock market to go up.
But under President Trump there in no Quantitative Easing happening.
So what is causing the market to rise now?
U.S. unemployment fell to 3.6 percent, lowest since 1969
The U.S. economy added 263,000 jobs in April, notching a record 103 straight months of job gains and signaling the current economic expansion shows little sign of stalling.
The unemployment rate fell to 3.6 percent, the Labor Department said Friday, the lowest since 1969. The official unemployment rate has been at or below 4 percent for more than a year.
Gross Domestic Product, First Quarter 2019
Real gross domestic product (GDP) increased at an annual rate of 3.2 percent in the first quarter of 2019 (table 1), according to the "advance" estimate released by the Bureau of Economic Analysis. In the fourth quarter of 2018, real GDP increased 2.2 percent.
3.5 Million People Have Been Lifted off Food Stamps
The number of people receiving Supplemental Nutrition Assistance Program benefits declined by 3.6 million since Trump was elected president and 3.1 million since he assumed office.
I could go on and on about the economic indicators of the day as so many others here already have
but your hatred of Trump won't let you see what is right before your eyes.
Suffice it to say that under Obama the markets rose solely as a result of Quantitative Easing,
which have had sever negative effects on the economy.
But you think that is okay because you did well in the stock markets.
Under President Trump
the markets are going up directly as a result of current economic policies.
Which will have zero negative effect on the future economy.
Even the Liberal press had to reluctantly admit that under President Trump companies are coming back,
10 Companies That Are Bringing Jobs Back to America
U.S. companies are responding to Trump with a series of American job announcements
Bayer AG (ADR) (OTCMKTS:BAYRY)
Amazon.com, Inc. (NASDAQ:AMZN)
put out a press release on Jan. 12 announcing it will be embarking on an ambitious hiring spree.
According to Amazon, it will be creating 100,000 new jobs for American workers over the next 18 months.
Ford Motor Company (NYSE:F)
had been planning to build a $1.6 billion factory in Mexico.
Instead, the company announced it was cancelling the Mexican car factory and added that it would invest $700 million to expand its Flat Rock Michigan factory.
International Business Machines Corp.(NYSE:IBM)
In December, IBM CEO Ginni Rometty announced her company had plans to invest $1 billion in the U.S. over the next four years, and that it will be filling 25,000 new U.S-based positions
Wal-Mart Stores Inc (NYSE:WMT)
Look for Walmart to hire 10,000 new retail employees. In addition, the company estimates that the construction or remodeling of stores, distribution centers and other facilities will support a further 24,000 construction-related jobs
Sprint Corp (NYSE:S)
Sprint made the initial announcement in December. It confirmed that the 5,000 new positions were in addition to 5,000 hires it had announced in April
Count Lockheed Martin Corporation(NYSE:LMT)
the company will hire an additional 1,800 workers at the Texas plant where the airplane is built.
In addition to the direct hires, Lockheed Martin pointed out the ripple effect that it expects will create “thousands and thousands” of supply chain jobs across the U.S.
Hyundai Motor Co (OTCMKTS:HYMLF).
The South Korean auto maker announced it will boost its spending in the U.S. by 50% over planned levels, spending $3.1 billion over the next five years.
General Motors Company (NYSE:GM)
GM says the $1 billion will be spent on “multiple new vehicle, advanced technology and component projects” and will result in 1,500 new or retained jobs.
450 of those will move from Mexico to Michigan
when GM “insures” pickup and SUV axle production
A division of United Technologies Corporation (NYSE:UTX)
Trump announced he had reached a deal with Carrier to keep 1,000 of those jobs in Indianapolis.
That’s not quite the same as hiring, but the deal did bring 1,000 jobs back to America
plus our farmers are losing
You seem to forget I live in a farming community.
Our farmers are not only getting a higher price for their wheat,
but the production is up to all time highs.
here is some pricing
CBOT September SRW ended at
$5.up 20 cents
KCBT September HRW closed at
$4.6up 35 cents
MGEX September HRS traded at
$5up 6 cents
All wheat futures prices rose week-over-week
after USDA reduced its global wheat production and ending stocks estimates in its monthly supply and demand report (see below). Soft red winter (SRW) September futures gained 20 cents to close at $5.23/bu and hard red winter (HRW) September futures jumped 35 cents to end at $4.67/bu. Hard red spring (HRS) September futures rose 6 cents to close at $5.43/bu. CBOT September corn futures gained 35 cents to end at $4.54/bu. CBOT August soybean futures gained 33 cents to close at $9.19/bu.
What you, and the rest of the world, repeatedly fail to understand is that as the most powerful nation on the face of the earth
WE DON'T NEED ANYONE.
They need us, and they are upset because they want to keep stealing from us with their unfair trade deals. We're not worried
about them because in the end we hold the largest nuclear arsenal in the world. WHAT DA PROBLEM IS