Mary Altaffer / AP Federal Reserve Chairman Ben Bernanke. Posted on 11/08/2007 7:07:58 AM PST by Lazamataz
Federal Reserve Chairman Ben Bernanke said on Thursday the U.S. economy has been resilient in the face of credit market strains but it faces risks on both the growth and inflation fronts.
Mary Altaffer / AP Federal Reserve Chairman Ben Bernanke.
"Financial market volatility and strains have persisted," Bernanke said in testimony prepared for delivery to the congressional Joint Economic Committee. "In addition, further sharp increases in crude oil prices have put renewed upward pressure on inflation and may impose further restraint on economic activity."
Bernanke said that when Fed policy-makers met on Oct. 30-31, they saw both downside risks to economic growth and "important upside risks" to inflation, citing oil and other commodity price increases and a drop in the dollar's value.
A slowdown does not equal recession, it may be a soft landing.
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Also, just curious? Are you aware, that household discretionary spending as increased from 52% to 64% within the last 5 years - (though I agree completely with your tag line, and it is only getting worse on the State and local levels).
Right here on FR is just fine. Some ability to sort the good news from the bad is required. This use of good/bad is the standard where bad news is useless and good is functional news.
The housing market does not make an economy (not even close).
Reality is the American economy just grew at a very solid pace of 3.9%. We are in the six straight year of economic expansion (apprx 24 + straight Qtrs of growth)....Of over 4 straight years of solid job growth, wages are UP, household income is UP, federal income taxes are lower, discretionary spending as increased from 52% to 64% within the last 5 years alone!
Did I leave out productivity is through the roof - Going on 5 or 6 straight years of gains, interest rates are low, inflation is low, the economy as adapted to higher energy costs (needlessly higher) Reality is there are a great number of economic positives.....The MSM (and some others) simply want to ignore them because it doesn't fit their agendas....Be it politically (for the MSM) or because they are "short" on the market (individuals).
No I was not putting down FR. FR is not a financial forum. I was referring to finding financial news in places other than CNBC, and the MSM. Reality is that Inflation is huge when you count Food and energy. Credit is dying up. Credit cards are being maxed out. Mortgages are harder to get. Jobs are on the decline(The government gives enough information in own report to prove that its numbers are false). People don’t know how they can afford gas,heat,and food. Things are not so rosy as some would have you believe.
Reality:
A very few years ago:
A tank of heating fuel $200.00
A tank of Gas $20.00
Now:
A tank of heating fuel $800.00 - $900.00
A tank of Gas- $60.00+
Milk $1.69 Now: $5.79
paid a dollar for a lemon today
used to get half a dozen
keeps going without any wage inflation won’t be any money for hilliary’s trillion dollar million idea plans
Kudlow had a chart today showing that our dollar is no lower than it was 20 or 30 yrs ago...that is’s very cylical in its range....IIRC that is...
The dollar took a nosedive back in the 70's and it's never recovered. The history of the dollar goes back over 200 years of course, and in 1940 the dollar was at about the same level as it was in 1800.
Another reason not to have anymore rate cuts. Inflation and oil are to high.
The US and other countries need to intervene in the currency markets to drive out the speculators and pop the weak dollar bubble. Then the Fed needs to cut rates aggressively.
No with oil near $100 mainly on the weak dollar we need a rate increase. A recession is unavoidable now.
Have Mudlow explain this:
These are some of the things you may have seen advertised Below and how much food and groceries were in the 80’s
2% milk $1.59 a gallon Iowa 1987
Apple Juice 99 cents per gallon New Jersey 1986
Apples 39 cents a pound Wyoming 1986
Bacon $1.69 cents per pound New Jersey 1986
Blue Bonnet Margarine 50 cents per pound Pennsylvania 1981
Bratwurst $1.69 per pound Iowa 1987
Bread Sliced 55 cents New Jersey 1986
Broccoli 39 cents per pound Wyoming 1986
Cheese Puffs 89 cents a bag New Jersey 1986
Corn $1.18 for 12 Pennsylvania 1981
Flour 99 cents for 5 pounds Pennsylvania 1981
White Sliced bread 50 cents Pennsylvania 1981
Grapefruit 33 cents New York 1988
Ground Beef $1.39 per pound New York 1980
Ham and Cheese Pizza $2.49 New York 1988
Heinz Ketchup 99 cents Pennsylvania 1981
Ivory Dish Soap 79 cents New York 1980
Kiwi fruit 99 cents per pound New Jersey 1986
Kraft Singles Cheese $1.47 for 12 Pennsylvania 1981
Leg O Lamb $2.19 per pound Wyoming 1986
Margarine 99 cents per pound New Jersey 1986
Milk 85 cents 1/2 gallon New York 1980
Milk, 1 percent $1.69 cents per half gallon New Jersey 1986
Miracle Whip $1.27 Pennsylvania 1981
Navel Oranges $1.39 for 10 New York 1980
Peanut butter, Skippy $1.49 jar New Jersey 1986
Pineapples $1.69 each New Jersey 1986
Plums 39 cents per pound Pennsylvania 1981
Pork and Beans 40 cents Iowa 1987
Pork Chops $2.49 per pound New York 1988
Pork Loin $1.39 per pound New York 1988
Pot Roast $1.49 per pound Wyoming 1986
Potatoes $1.00 for 5 pounds Wyoming 1986
Rib Eye Steak $3.89 per pound Iowa 1987
Ritz Crackers $1.59 Wyoming 1986
Strawberry Jam $1.39 Pennsylvania 1981
Tomatoes 39 cents per pound New York 1980
Tuna, Star Kist 99 cents per bag New Jersey 1986
Turkey 55 cents per pound New York 1980
And if you believe for a second that current prices will go down or even level off, I got a bridge for sale.
They’re gonna skyrocket.
Food production takes alot of energy.
Prediction: it will only get to 5X this cycle, and cross around Down 25,000 / Gold $5000.
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