Recession / Inflation fears rear its ugly head (1 Viewer)

blackadder

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again....

http://money.cnn.com/2008/02/27/news/economy/bernanke_house/index.htm?cnn=yes


so if we are in the throws of a recession and facing inflation wouldnt that be stagflation? Why are they not addressing that?

So as not to spook people. Manage perceptions for the sake of "orderly outcomes." Kinda the same reason we get told "they hate us because we are free," rather than examining motivations in detail.

Inflation is now in the system. It's not just from oil but from food as well. We are burning food in the form of ethanol at the same time that grain and meat demand is also spiking in China and India. Supply and Demand.

It's dicey.

A recession or prolonged slow down will moderate inflation. But given the geometric increase of population and deepening economic links between India, China and the rest of the world we are not going to see some dramatic fall off in demand.

Unless crop yields can be quickly (and safely) increased, which is being worked on with genetically modified crops, and we start diversifying energy sources this is going to be an issue going forward.
 

saintfan-n-alex

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the day i saw GWB on T.V. a few months ago claiming the economy was strong i knew we were in trouble
 

blackadder

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the day i saw GWB on T.V. a few months ago claiming the economy was strong i knew we were in trouble

You can pretty much discount anything he -- or any other President -- states publically.

You are on your own to evaluate truth. Wheter it's terrorism, the Middle East or the economy, they are going to spin it the way they want you to hear it.
 

blackadder

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the day i saw GWB on T.V. a few months ago claiming the economy was strong i knew we were in trouble

You can pretty much discount anything he -- or any other President -- states publically.

You are on your own to evaluate truth. Whether it's terrorism, the Middle East or the economy, they are going to spin it the way they want you to hear it.

The economy is strong so long as there is stable demand for goods and services. The rub is that we have propped up demand for decades now with debt, Keynesian spending and cheap money.

The foundations are shaky.
 
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Pure Energy

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The Fed worries about the smallest of things. The Economy has cycles. Cycles means ups and downs. It's not the Feds responsibility to over-react during every downturn.

That being said, I have a sizeable HELOC, I'm not complaining about lower interest rates.
 

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