Posted on 03/30/2015 11:31:33 AM PDT by Citizen Zed
Former Fed Chairman Ben Bernanke , in rare public comments on the economy, said Monday he thinks low interest rates may not be here forever.
Bernanke said in a Washington, D.C., speech that downward pressure on rates would ease as economic recovery in Europe and better growth in emerging markets take hold.
"The implications are from that perspective that the downward pressure on global interest rates will probably moderate somewhat, continue to moderate somewhat over time and the pressures for the trade deficit of the United States will probably moderate somewhat over time," Bernanke said.
As for now, Bernanke said Europe "is in a depression basically."
Bernanke also explained the Fed's recent decision to lower its estimate of the long-run unemployment rate to 5.1 percent, saying it likely resulted from the recent decline in the jobless rate along with a lack of wage pressure. The Fed , Bernanke said, is "obviously paying attention to things like real wages to see if those are responding in seeing if we are reaching full employment." But he added that full employment is a difficult number to gauge. "Nobody really has that number with any precision, and the Fed will continue to grope to find out what the right number is,'' he said.
(Excerpt) Read more at mob.cnbc.com ...
Interest rates could rise and you may already have won $10 million in the Publisher’s Clearing House Sweepstakes!
Like he ever had a clue. The Fed is now effectively a hamster on a wheel. They can’t get off as if they raise rates the stock market will tank.
Europe experiencing an economic recovery sounds about as likely as the Dodgers moving to Fairbanks.
Bernanke speaks: His income could rise
Bwahahahahaaa... good one, Bernanke!
Spot on! They have absolutely painted themselves into a corner. We're hosed.
I predict we will have weather, interest rates could change sometime, and there might be hostilities in some part of the world.
I predict we will have weather, interest rates could change sometime, and there might be hostilities in some part of the world.
“Nobody really has that number with any precision, and the Fed will continue to grope to find out what the right number is,’’ he said.
So three men walk into a room where they meet Albert Einstein. Einstein shakes their hands and asks each of them what their IQ is.
The first man says “My IQ is 170”. Einstein said “Outstanding! We can discuss my latest theories of quantum physics and higher mathematics!”
The second man says “My IQ is 140”. Einstein says “Wonderful! We can discuss the latest developments in art and music.”
The third man says “My IQ is only 87.” Einstein replies, “So...where do you think interest rates are headed?”
(*with apologies to the Borscht Belt)
“We’re hosed.”
We sure are, but the Fed isn’t. They’ve been “printing” funny money for almost 8 years while the debt was being run up as well. What’s gonna happen when interest rates start rising and who’s gonna get rich because of it?
I’d use much stronger language than “hosed”.
Einstein, Picasso and Boudreaux all die and arrive at the Pearly Gates one after each other.
First up is Einstein. St. Peter says, I’m sorry but we have a new rule here at the gate. Before I can let you in, you have to prove who you say you are. Agter all you’re the 34th Albert Einstein we’ve had this month.
So Einstein thinks for a minute and says, perhaps if I had a chalkboard and chalk. St. Peter snaps his fingers and poof the items appear.
Einstein writes out an elegant mathematical proof. St. Peter considers this and says, “Clearly you are the great Albert Einstien, come on in.”
Next up is Picasso, who says, if I can borrow that chalkboard, and proceeds to draw a magnificient painting. St. Peter says clearly you are the great artist Picasso, come on in.
Boudreau steps up and St. Peter explains the rule and then frowns and says. Einstein and Picasso were just here and demonstrated their identity through their unique skills. But I’m not sure how you’re going to be able to do that.
Boudreau said, “Who’s dat Einstein and Picasso?”
St. Peter smiled and said “Come on in Boudreau!”
And then there’s the statistician, the accountant and the economist who crashed at sea.
The statistician calculated the odds of survival and immediately sank.
The accountant recalculated the distance to shore until it was short enough to swim.
And the economist assumed he has a life raft.
actually, we all owe bernanke a debt of gratitude..
although qe was not popular, it knock one of the 3 legs of depression off the stool..
we have had a hell of a recession, one of the worst, but we did not drop into depression, in spite of fubo trying to get bernanke to play ball...
the fact that europe is in depression and we are not should be a real big hint...
my concern was never over the qe, but the speed and velocity of the eventual tightening..
tighten it up nice and slow, and we should be able to ride out the rest of the ‘06 recession..
tighten it up too fast, and we can still spin off into depression...
“Bernanke also explained the Fed’s recent decision to lower its estimate of the long-run unemployment rate to 5.1 percent,”
Anyone using or quoting those illusory numbers loses all me immediately.
I would have to argue that we are now in an ongoing depression. Minimum 20% real unemployment. 92 million people out of work. Revised 1st quarter GDP .2, Housing starts at a 40 year low. $18 trillion in national debt. If it was not for food stamps, 2 yrs of unemployment insurance and welfare the soup lines would wrap around every block. People would be starving to death.
We are not in a recovery by any stretch of the imagination. For at least 22 more months there will be no chance of a recovery as its not on Barkey’s bucket list. He is attempting to destroy the economic system of the US and doing a damn fine job of it. We are headed for an economic collapse in the next several years. Our status as the reserve currency of the world is in serious danger.
If you want to know how the country is doing all you need to do is look at the BDI which is in the toilet.
Whichever comes first....
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