Posted on 08/31/2012 3:37:53 PM PDT by whitedog57
Federal Reserve Chairman Ben Bernanke spoke at Jackson Hole, Wyoming this morning and repeated his mantra that The Fed is ready to step in with more easing.
The costs of nontraditional policies, when considered carefully, appear manageable, implying that we should not rule out the further use of such policies if economic conditions warrant.
The word appear stuck out like a sore thumb. The stock market reacted negatively to his announcement.
There is little The Fed can do about unemployment when the employment to population ratio is stuck in a hole. So, why do it?
And housing has been impervious to increases in monetary base.
But the stock market is very sensitive to increase in monetary base.
So, both employment and housing are seemingly impervious to Fed action. But should The Fed simply be pumping air into the stock market? Perhaps in an election year.
Regional Reports
The Institute for Supply Management-Chicago Inc. said today its business barometer fell to 53.0 this month from 53.7 in July. Figures greater than 50 signal expansion. Economists forecast the measure would drop to 53.2, so this is a slight surprise to the downside.
Meanwhile, up the road from Chicago, the ISM Milwaukee Purchasers Manufacturing Index fell to 42.9 from a previous reading of 46.7. Analysts were expecting a read of 49.0.
So, both Chicago and Milwaukee prints were downward trending.
But across the pond in Europe, unemployment remained constant at 11.3%.
(Excerpt) Read more at confoundedinterest.wordpress.com ...
At least I live in the Red part of California (the valley). Going to SF creeps me out.
There’s no other way to keep this debt regime going at all. The only way to provide enough revenues to sustain the enormous government, would be to have an enormous manufacturing base.
The only other way is to tank the dollar enough to bring a huge manufacturing base back to the USA in order to export to other countries. With a very low dollar, foreigners would buy products from us.
There is one other way: cut all federal funding to local governments first, then abolish all local regulations against new, small manufacturing starts (where the potential ingenuity really is), against owner-builders, etc.
Otherwise, forget it. Because the B. will be starved more each year, until we see freedom again.
Weimer Republic/Zimbabwe... here we come!
I have been through the depression days starting in 1929. I know what it is for parents to go begging for days old bread and powdered milk. I know how an immigrant mother was torn between independence and joining a union to get labor for what is due. I know how and why such a population of citizens will go to war to hold on to a belief that the USA in spite of such struggles was by far the best of nations. I know what it is like for a fresh 18 year old to go overseas to fight an enemy that killed my only brother on Okinawa. I know what it is like to come away from war with only the G I bill to give me a way for a better future. I know that if one chooses a course of life that fits their capabilities they can have a good life in this USA. However. I do not know or understand how politicians and their cronies can speak of job creation without telling what jobs they are talking about. These people only blow to the winds and easily beguiled populace. Let them lift up the USA (and I deliberately refrain from using America)by speaking to the ways and means the USA will maintain It’s exceptionalism. Obviously energy independence is out front, but how many new and even unthought of happenings/products are being ignored. We need to know where and for what the jobs all the hucksters talk about.
You said it very well. Thank you. Here’s an example of what’s going on against new production.
I would eventually provide a few jobs, but my remote, sparsely populated rural county has outlawed new, small manufacturing operations, even one-man shops. Also, the local officials recently took all of an elderly ranching couple’s cattle and outlawed their right to do any more ranching—all on false accusations (mostly from only three women, who also shouted for more tax hikes and regulations against property rights) that the couple was neglecting their cattle (false, as non-socialist neighbors know).
Others (cluster of small artistic corporations) wanted the couples’ permits for ranching on government property (only part of their operation). Government wanted to sell their cattle and take the proceeds as revenues.
It’s not a good environment for business, and paying leases for a small lot in a so-called industrial park in the middle of nowhere is out of the question. And BTW, most of the so-called environmentalists showing up in commissioners’ meetings to speak against new production shops and owner-builders are relatives and/or associates of big, government-connected business interests.
Your response to my blog brings to mind another peeve of mine. I don’t understand how one or more people in this Nation can be allowed by courts to impede/control/stop anyone else’s accepted and needed efforts to produce value for a nation’s well being. We have to extinguish the idea that every body/anybody has a right to displace any other person(s) rights on a whim of jealousy.
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