Posted on 03/09/2009 2:17:30 PM PDT by Lady GOP
HARRISBURG, Pa. – The nation is on the "brink of a depression," but there's a "reasonable chance" that the $787 billion economic stimulus package will help ease the situation, Sen. Arlen Specter said Monday.
Specter, R-Pa., said the nation's economic situation is more dire than the public has been told, but did not elaborate.
"Our economic problems are enormously serious — more serious than is publicly disclosed. And I think we're on the brink of a depression," he told reporters at the state Capitol.
(Excerpt) Read more at news.yahoo.com ...
Can you ask the mods to change it to “news?”
Thanks.
I reported it, thanks.
In Scottish Law, passing on crippling debt to your children's children's children is much beloved, due to the way it parallels the staying power of curses in the Old Testament. Hence its appeal to Arlen "Stimulus" Specter (A.S.S.)
WASHINGTON (Reuters) – The Federal Reserve is risking inflation after doubling the size of the U.S. monetary base and will face tough choices if prices start to rise before a recovery begins, according to a study by a regional Fed bank.
The U.S. central bank has massively boosted the monetary base, which includes currency in circulation and bank deposits held at the Fed, in an effort to support markets during the most severe financial crisis since the Great Depression.
"Inflation does not appear to be a risk in the current environment: the economy is in recession. Inflation is falling and is not expected to return before the recession ends," according to an essay in the March/April edition of Review magazine, published by the Federal Reserve Bank of St. Louis.
"If inflation resumes but the economy does not recover, policy-makers will face a difficult choice. Monitoring the size and composition of the monetary base will help us understand what actions are needed," the study said.
Emergency measures to flood credit markets with cash to stop them freezing in panic over bank losses doubled the size of the Fed's balance sheet and boosted the monetary base to around $1.7 trillion.
Fed officials agree they need an exit strategy to soak this money back up once the recession ends. They don't think it is an inflation risk right now because banks are still too scared to lend the extra money out in a way that would boost the broader money supply and lead to higher prices.
In the meantime, they must save the economy from an even more severe downturn, and argue that programs used to boost credit markets can be allowed to expire as the recession ends.
Critics warn it will be politically very hard to pull the plug on some of these support measures if financial markets remain under strain, possibly forcing the Fed to water down its commitment to keep prices low and stable while supporting the economy.
Billionaire investor Warren Buffett on Monday praised the efforts of the Fed to stimulate the economy but cautioned the measures could lead to an inflationary cycle worse than the one that followed the 1970s oil shock.
if we are heading into depression, spending $787 billion ain’t gonna do nuthing to stop it
“On the brink...” he says. Is it time yet to recognize the 1930s depression yet?
Thank YOU!
I can not believe this POS RINO voted for Porkulus and now tosses out this statement. My blood is boiling!
“Our economic problems are enormously serious — more serious than is publicly disclosed. And I think we’re on the brink of a depression,” he told reporters at the state Capitol.
More dire than we’ve been told? What a crock!!
BTW, I don't believe the government or the MSM.
I guess everything is okay... right? (as long as we don’t read those nasty reports in the MSM)... :-)
NOT!
Depression huh?? The only think I’m depressed about is that Arlen Spector won’t sit down and STFU...
I wonder about Pennsylvania, and Pennsylvanians in paricular, who keep sending asshats like Specter and Murtha back to Congress over and over again. If you are proud of the two of them, then it must suck to be you.
they doubled the money supply. National GDP has not grown. Your dollar is about to become half as valuable, if the recovery starts or not. Maybe a year or two?
“there’s a “reasonable chance” that the $787 billion economic stimulus package will help ease the situation”
I don´t know about the rest of you, but I would want more than a “reasonable chance” on a $787 billion dollar investment.
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I, for one, probably am on the brink of depression.... Will have to work until death at this rate, my retirement assets will never recover...
With clowns like Specter and Obama, it’s guaranteed.
Hey ScottishBoy!! Triangulate this!!
Doubling the money supply means something only if the money is in circulation. In this case, the money is sitting on bank balance sheets, out of the hands of consumers and non-financial businesses.
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