Myths from The Capitol that You Shouldn’t Believe

Politics is simply a game of lying. Lying to investors, lying to the people, garnering votes for themselves, etc. Here are some lies from Washington that you shouldn’t believe.

  1. GDP is growing.Although the U.S. GDP has grown, the national debt has grown even more severely. What we’re experiencing right now is basically a debt-reliant GDP increase. And once that flow of debt stimulus stops…..
  2. American’s have the highest standard of living in the world. Although one cannot fully trust the statistics, it’s clearly evident that American’s are experiencing a declining standard of living. With the social, economy, and political problems in America these days, it’s hard to see why anyone still believes that Americans enjoy the highest quality of living.
  3. Republicans (or Democrats) are a bunch of useless politicians. Both parties are trying to injure the other’s image by making insults and calling the other side “counterproductive.” The truth is, both the Democrats and GOP are conterproductive. Just look at how much time they spent arguing over the debt ceiling.
  4. America’s problems aren’t so bad. Indeed, America’s problems are worse then they seem. “Money makes the world go round”, and we’ve officially run out of it.
  5. The government is by the people, for the people. Politicians say that they’re interested in the best long term goals of America. That’s a bunch of BS. If they were truly interested in America’s future, they would inact policies that may be unpopular in the short term, but good for us in the long term. Of course the politicians only care about the short term, so that they can get more voters on their side.
  6. The financial system is safer now than pre-crisis. It’s not. By bailing out so many banks, it’s just encouraged more risk taking. If the banks make big profits from their big risk, they get to keep the rewards. If the banks face problems, they’ll just stick it to the taxpayers.
  7. QE helps the economy. It doesn’t. Other than provide temporary liquidity and an up-force to the financial markets, QE doesn’t affect Main Street at all.

This guest post was written by Tony Chou who runs the Investorz’ Blog, where he teaches those who are interested about how to invest in markets such as stocks and commodities.