Posted on 08/02/2011 11:38:34 AM PDT by Fred
US Fed to consider more stimulus as recovery slows
The US Federal Reserve policy makers may have to start weighing additional steps to boost the recovery after growth fell below 1% in 1-H of this year, as economists cut 2-H growth forecasts.
The FOMC will meet August 9 in Washington after the government marked down its measure of economic growth to annual rates of 0.4% in Q-1 and 1.3% in Q-2, casting doubt on the Fed’s June outlook of 2.7 to 2.9% growth for this year.
A gauge of US manufacturing, a main engine for the expansion in the USA, slowed unexpectedly last month to the lowest level in 2 yrs.
Fed Chairman Ben S. Bernanke said in Congressional testimony in July that the Fed may take new action if the economy stalls, including beginning a 3rd round of bond purchases (QE-3).
The central bank could also cut the interest rate it pays banks on excess reserves and pledge to hold its assets at a record high and interest rates at record lows for a longer period, he said. Stay tuned…
(Excerpt) Read more at livetradingnews.com ...
QE1 and QE2 worked so well, let’s do it again./s
might as well pass out monopoly money. It’s worth more then the dollar.
I think I’ll join the crowd. I’ll agree with QE3 if I get some. What the hell, I can stand there with my hand out like the rest of the Democrats.
You mean like all of wallstreet
More?
Just when the he!! is the last time has the economy been stimulated by the government????
Hell no on QE3, how about strengthening the dollar for a change !
When in casual conversation with fellow citizens who asked in whatever form how QE2 works, I’d say something like, “Oh, it just paves the way for QE3.” Which sounded like a joke, and I guess was a joke. But not really, because I always knew there’d be a QE3, same as there will be QE4 and QE5, even if no one names them. Life is one long QE party at the Fed.
ICE BERG DEAD AHEAD, SIR!....................
Federal or any government ‘stimulus’ of the economy is like the old physicians practice of ‘bleeding’ the patient. If, after the first treatment, the patient gets worse, bleed him again. If he still gets worse, bleed him again. If he gets even worse, bleed him some more. When the patient dies, declare that you did all you could do....................
Gold is at $1638.
Gold futures for August and September are up $24 on the day.
Everyone ready for the ride?
So, the boat is filling rapidly with water, and I drill more holes in the bottom of the boat to let out the water faster?
Got it!
There is a negative correlation between government spending and economic growth.
>So, the boat is filling rapidly with water, and I drill more holes in the bottom of the boat to let out the water faster?<
Keynesian economics explained...
Oh, and I forgot to mention, bleeding killed our first Washington, and bleeding the economy will kill our second...................
If you can’t afford the debt, just devalue it by devaluing your own currency.
I prefer the ‘bleeding the patient’ analogy. It worked so well on Washington.................
...and if the patient floats, SHE’S A WITCH!
Our leaders (Politicians) are desperate. They know we are cosmically screwed in the mid to long term. But they will do ANYTHING to prevent things from going downhill in the short term. So they employ these nonsensical, self-defeating measures to make things look good enough so they can win the next election. Nevermind that it only makes the eventual catastrophe that much worse.
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