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I've borrowed a few paragraphs from an AP story here so that I might express my own views about the content of such..
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--- In the AP story 'Economic recovery losing steam'
"Even the good news for the economy this spring came with an asterisk. Home builders, for example, increased their spending at the fastest pace in 27 years. But economists say that was likely a one-time event propelled by a now-expired tax credit for homebuyers."
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Home builders increased spending at the fastest pace in 27 years?! In the middle of the worst recession since the great depression?! 27 years ago was 1983... Our country was a much different place, in my opinion, in 1983.. I was there.. That makes no sense at all and is obviously, to me anyway, a result of government & Federal Reserve interference in the economy during a recession and, at least in part, for political reasons in an election year.. Outrageous.. in my opinion
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"Companies also invested in equipment and software this spring at the fastest pace in 13 years. (And 13 years ago was about 1997, nearing the peak of the dot com bubble. Again, in the middle of the worst recession since the great depression?! I defy you to explain to me how that makes sense) And they are expected to keep up that spending. ('Expected by WHOM?! Is my question) But even that won't be enough to invigorate the rebound. And some spending on equipment that increases productivity actually makes it easier for companies to do without more workers."
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These, to me, are but two examples of how the oligarcy (government plus corporations) plus the actions of the Federal Reserve are colluding to 'hide' the disastrous condition of the 'real' economy from the American people. They seek to do this by dramatically inflating government spending. They can 'afford' to engage in this 'stimulative' economic manipulation because they control all the money! Deficit spending be damned..
And speaking of economic manipulation, check out this paragraph..
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"With the fall elections looming, Republicans in Congress and some Democrats have shown little inclination to pass additional stimulus measures that would add to the deficit in order to speed up the recovery."
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Talk about politics overwhelming fiscal responsibility.. Politicians KNOW that Americans are right to be angry about deficit spending and don't dare increase it in an election season.
So, in steps the Federal Reserve bank. An entity with accountability to NO ONE!
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"The Federal Reserve is exploring new steps to bolster the recovery in case the economy flashes danger signs of sliding back into recession or of a dangerous bout of deflation."
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Bolster the recovery as a way to help protect Washington insiders strangle hold on politics in America. As a way to make sure 'banking friendly' politicians retain the power to help financial elites prop up their failed economic system.
How will the Federal Reserve accomplish this?
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"Policymakers could cut the interest rate paid to banks on money parked at the Fed to zero. They could also promise to keep rates at record lows for longer, or revive programs to buy mortgage securities or government debt."
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Cut interest rates on bank reserves to zero to do what exactly? Make the Federal Reserves balance sheet look a little better?
Keep rates at record lows? As they have been since the dot com bust and 9/11? Isn't that a big part of how we GOT here?
Buy mortgage securities? You mean the 'toxic assets' that you already own too many of?
Buy government debt? You mean the flashy ability to create money from thin air and then LOAN it to the government while expecting the American people to pick up the tab?
I say the United States of America is in default on it's debt already if not for the Federal Reserves amazing, logic defying, ability to endlessly print money.
Folks, the economy is a train wreck. And still our government, our elected 'representatives', with the collusion and support of a panicked Federal Reserve, continue to do everything in their power to obfuscate economic reality. To 'hide' from the American people the severity of our collective economic misery.
In my opinion, what has caused most all of the calamity we now face is the refusal of 'the powers that be' to accept responsibility for this debt ridden economy and society. The same debt ridden economy and society that their collective policies created in the first place.
For they fear the pain of a greatest depression. As they should I suppose.
One more 'little thing' that has been 'bugging' me for this post..
'Price stability' You can go read about it on THE FEDERAL RESERVE BANK of MINNEAPOLIS if you like..
But to *me* it just seems that the Federal Reserve has a policy, "Price Stability", to see to it that prices only and always rise, inflation. Which undermines constantly the value of our own currency. Rather than face the boogie man of deflation..
Greg
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