Book Reviews | Gordon Campbell | News Flashes | Scoop Features | Scoop Video | Strange & Bizarre | Search

 


Dan Spillane: Fed Speaks, But Can't Call Jobs Home

Citizens for Corporate Accountability
Dan Spillane

Federal Reserve Speaks, But Can't Call the Jobs Home

-Serious Problems With 02/11 Federal Reserve Testimony

(SEATTLE) 02/12/04 - Alan Greenspan says a continuing worry is that the Fed policy could become "improperly calibrated" to economic developments. Indeed--"fedspeak"--what does he mean?

It turns out, in the past when the Federal Reserve has failed, it is because their moves to affect the economy have not worked for one reason or another (for example, failing while lowering target interest rates in order to achieve higher employment--sound familiar?) . Such failures tend to end badly. Perhaps even, like the 1970s, a period of "stagflation", or more like the present-- periods of alternating stagflation and deflation, relying heavily on borrowing at both the federal and consumer level.

Greenspan also mentions that currency-related changes to profits have been t emporarily offset by currency hedging activities. He mentions foreign companies--but neglects to mention similar effects related to domestic companies, faced with, among other things, skyrocketing aluminum, copper, and energy prices, all coming at the same time. Forget about new hires--how can companies like GE, Boeing, and Caterpillar operate at all domestically, once currency/inflation hedging runs out? The most recent manufacturing survey ("ISM") shows a prices paid component not seen since right before the 2000 stock market crash. In short, US inflation creation is far outrunning job creation--and apparently, running US jobs offshore in the process. Might this be an example of Greenspan's "improper calibration"?

What Greenspan doesn't mention is more interesting--the effect low interest rates have had on foreign economies--sending several foreign stock markets into bubbles, which dwarf those of the 2000 bubble. Thailand, Brazil, Turkey...the list is long. A bubble is one type of "improper calibration."

Finally, it is striking to see a headline claim of "vigorous growth ahead"--if that were truly the case, interest rates would not be at multi-decade lows. After all, it is a long, long way up to a "normal" interest rate environment--the only way from down this low, is up. Something clearly is "improperly calibrated" between what the Fed is saying about the economy, and what interest rates are set to.

Face it Greenspan, problems go way beyond the federal deficit. Lending and equity growth in US markets is way, way ahead of an economic reality that is not only way overdue, but may never materialize.

The sooner the US admits it has a stock market and lending market appropriate for an economy with two to eight million more jobs--instead of less--the closer the economy will be to a sustainable recovery. The Fed cannot fix the mess the Bush administration created--a fact both liberals and conservative Republicans increasingly understand.

*********

- Citizens For Corporate Accountability is a 'Think Tank' non-profit, dedicated to public interest and the detection of corruption which endangers the basics of democratic society. It was founded in 2003 by Dan Spillane. The first major issue identified by Mr. Spillane, Electronic Voting Reform, has received significant national media attention subsequent to Mr. Spillane raising concerns to Congress and a number of activists since the summer of 2002. It was recently revealed that significant problems exist nationwide in this area--as a result, several new bills are pending for the 2004 Congress.

http://www.libertywhistle.us


© Scoop Media

 
 
 
 
 
Top Scoops Headlines

 

Werewolf: Living With Rio’s Olympic Ruins

Mariana Cavalcanti Critics of the Olympic project can point a discernible pattern in the delivery of Olympics-related urban interventions: the belated but rushed inaugurations of faulty and/or unfinished infrastructures... More>>

Live Blog On Now: Open Source//Open Society Conference

The second annual Open Source Open Society Conference is a 2 day event taking place on 22-23 August 2016 at Michael Fowler Centre in Wellington… Scoop is hosting a live blog summarising the key points of this exciting conference. More>>

ALSO:

Buildup:

Gordon Campbell: On The Politicising Of The War On Drugs In Sport

It hasn’t been much fun at all to see how “war on drugs in sport” has become a proxy version of the Cold War, fixated on Russia. This weekend’s banning of the Russian long jumper Darya Klishina took that fixation to fresh extremes. More>>

ALSO:

Binoy Kampmark: Kevin Rudd’s Failed UN Secretary General Bid

Few sights are sadder in international diplomacy than seeing an aging figure desperate for honours. In a desperate effort to net them, he scurries around, cultivating, prodding, wishing to be noted. Finally, such an honour is netted, in all likelihood just to shut that overly keen individual up. More>>

Open Source / Open Society: The Scoop Foundation - An Open Model For NZ Media

Access to accurate, relevant and timely information is a crucial aspect of an open and transparent society. However, in our digital society information is in a state of flux with every aspect of its creation, delivery and consumption undergoing profound redefinition... More>>

Keeping Out The Vote: Gordon Campbell On The US Elections

I’ll focus here on just two ways that dis-enfranchisement is currently occurring in the US: (a) by the rigging of the boundary lines for voter districts and (b) by demanding elaborate photo IDs before people are allowed to cast their vote. More>>

Ramzy Baroud: Being Black Palestinian - Solidarity As A Welcome Pathology

It should come as no surprise that the loudest international solidarity that accompanied the continued spate of the killing of Black Americans comes from Palestine; that books have already been written and published by Palestinians about the plight of their Black brethren. In fact, that solidarity is mutual. More>>

ALSO:


Get More From Scoop

 
 
 
 
 
 
 
Top Scoops
Search Scoop  
 
 
Powered by Vodafone
NZ independent news