Bernanke: Fed ready for "substantive" action

Reuters ^ | Thursday January 10, 12:38 pm | reuters

[kenn5]

I hate the Fed, hate, hate, hate. Time to go back to the gold standard.

[jdsteel]

All I can do is shake my head.... and this word comes to mind “Stagflation”

Stagflation, inflation plus a stagnant economy. Our economy is doing pretty well WITH SOME NOTABLE EXCEPTIONS. Guess what; no economy is ever 100% good. There is always a fly in the ointment. The lower dollar is set to make 2008 a record year for exports. Wealthy internationals may soon start buying U.S. stocks (which look cheap to them), which should propell it to new highs. A little inflationary pressure ex-food & energy should do wonders for the yield curve. If so, we may have a normal looking yield curve for the first time in years. The lower dollar is not all bad and not all good. For now, I'll take it. As long as U.S. productivity keeps kicking butt there should be no stagflation.

[Toddsterpatriot]

Time to go back to the gold standard.

Exactly! We need some good old fashioned deflation. And soup lines. I like soup.

[AdamSelene235]

Rather than a "gold standard" how about we allow the free market to create whatever currency instruments (free from punative taxation) people see fit to use.

People would then be free to choose whatever instrument they like. Naturally electronic gold would probably enjoy some popularity but I suspect there are even better solutions out there.

[Toddsterpatriot]

Naturally electronic gold....

LOL!

[Toddsterpatriot]

Anyone have a picture of electronic gold?

[newnhdad]

I’m not sure that a rate cut does anything but boost wall street temporarily. The home lenders won’t be lending to riskier people and the sluggish demand = lower values = less spending on improvements = less economic activity.
Cheaper dollars = high fuel prices = increased costs to consumers on inflexible commodity = less economic activity = increased chance for a reduction in economic growth.
It only makes us more attractive for foreign investors.

Unless it’s a direct stimulus to consumer activity, I don’t see this helping at all.

[meyer]

Oh good - let’s devaluate the dollar even further to compensate for a few bad mortgages. DUH!

[meyer]

Unless it’s a direct stimulus to consumer activity, I don’t see this helping at all.

Maybe Bernenke's buying a new house. That'll stimulate consumer activity in a barely measureable way.

[kenn5]

Perhaps I need to clarify - Get Rid of the Fed! The Feds caused the depression in the first place. Do you want a bunch of unaccountable bureaucrats to regulate our money supply? Go to the gold standard and get rid of them.

[AdamSelene235]

Anyone have a picture of electronic gold?

[Halgr]

Sounds like you love the kool aid.

;-)

[Signalman]

I predict a full percentage point cut at the next Fed Meeting.

[FreedomProtector]

The most the Fed will do is .5% cut, the Fed believes in not surprising the market...they give enough hints until the fed futures matches what they will do, and then they make slow changes and watch the data.

[AdamSelene235]

Behold the hero of the Fedophiles.

A man who never spent a single day of his life in the private sector but somehow is wiser than the markets and capable of leaping recessions in a single bound.

[Toddsterpatriot]

Do you want a bunch of unaccountable bureaucrats to regulate our money supply?

You'd prefer Ted Kennedy regulate the money supply?

Go to the gold standard and get rid of them.

Exactly! They can stand in the soup lines with the rest of us. I like soup.

[ex-snook]

"I fail to see how destroying the dollar improves the economy."

He's just trying to get through the next election before the sh't hits the fan. Stagflation is on the way. Creating cheaper debt is not a solution, it was the problem. Failure of trade deals to produce the 'good paying jobs' is the problem. The problem ignored, is the problem unsolved.

[Toddsterpatriot]

No chance of more electronic gold being issued than the gold in the vaults, right.

[montag813]

Gold and euro explosion after Ben remarks.

[3niner]

signaling .5% cut to both rates.

Sounds like it. Many expected .5% in December, and the market reacted negatively, when it was only .25%.