Greenspan sees early signs of U.S. stagflation

Ok more news for those still living in a bubble and think that things are fine and dandy.

Greenspan sees early signs of U.S. stagflation

 

It gets worse, much worse. The f**king Central Banks are at it again.

http://www.realclearpolitics.com/articles/2007/12/fed_spreads_the_runway_with_fo.html

Of course they agreed, the Central Banks are all run as one big scam.

 

http://biz.yahoo.com/ft/071216/fto121620071354448683.html?.v=1

Out of the shadows: How banking's secret system broke down

 

All the more reason to vote for Ron Paul

 

The banks introduce all new money into the system. They get to release it as loans, and collect interest on it.

They've had an unfair advantage under the central banks for a long time.

People are finally starting to figure it out.

 

The Fed is under political pressure to inflate money supply to support the housing bubble. Clearly the Fed is lying about the inflation rate.

Greenspan said that "It's critically important that the Federal Reserve is allowed politically to do what it has to do to suppress the inflation rates that I see emerging, not immediately, but clearly over the intermediate and longer-term period."

 

What there trying to do is get the banking system to work normally, not inflate the housing bubble.

 

Most homes in California, Florida and the Northeast are overvalued by 30% +

The Fed is throwing good money after bad.

Once the subprime loans go into negative equity what is the Fed going to do?

 

Its not about subprime loans, its about banks not wanting to lend money to consumers, business or even other banks and when that starts happening the economy is doomed to fall.

 

That's what the Fed is telling us.

This is an election year and both parties are playing the populist subprime card giving away taxpayer money.

 

The Fed is saying what basically the market is doing.

http://www.washingtonpost.com/wp-dyn/content/article/2007/12/10/AR2007121001612.html?hpid=moreheadlines

 

The Fed funds rate is 4.25%

For the year to date, inflation is at 4.2% - compared with 2.6% in the same month in 2006.

Any more rate cuts will leave the fed rate under the rate of inflation.

 

I don't disagree they have a problem, you typically want the fed funds rate to be 2 hundred basis points above inflation at the same time banks are holding on to cash which is/will hurt the economy.

 

He sees early signs? We've been in a recession for over a year now, the guy is really insightful.

On the other hand, based on what he wrote in his pre-FRB years and certain statements he made in later years, the guy is a closet goldbug. He just doesn't want to scare YOU into dumping FIAT. I don't believe for a second he is as dumb as we think

 

Dude in all your previous posts you have been denying that we have a problem and that things are just great from low unemployment rates to no recession. Are you changing your tune now?

 

The market should determine interest rates. 200 base points is just some arbitrary nonsense, it is that kind of inflexible thinking that hamstrings the market.

What Bogart is saying, is that the FED has run out of room. Either the economy picks up, or they will be forced to raise interest rates. They've already squeezed our foreign landlords as hard as they can. Now they have to squeeze the citizens to make a difference.

 

http://en.wikipedia.org/wiki/Recession

http://www.marketwatch.com/news/story/gdp-revised-up-49-third/story.aspx?guid=%7BA3B91208-8075-4F75-ACE9-AE9BCFBA7AFF%7D



Try again.

 

In the past I’ve rejected your claims of doom and gloom because they are untrue. But I've never denied that we have strong inflationary pressures in the economy its just not the 15 or 20% you guys tend to claim it to be and we are not in a recession yet as some of you guys have been claiming we've been in one for the past year.

 

200 bases points is the standard to keep inflation in check. Sometimes the market doesn't function as it should remember it was the market that created the subprime market and it was the market that drove homes prices up 20% a year for 5 years it was the market that once valued pets.com more then GM and Ford Combined

The fed has a few options it can do such as what its going to do now with the auctioning of 40 Billion dollars of cash at interest rates between the fed market rate and the discount rate. They can cut to discount rate to match the market rate. They can accept more forms of collateral instead of secured treasury bonds which people tend to want to hold on in a time of crisis.