Bernanke Speak for: Its all going down the Shitter!

[Rubber Duck]

"One of the concerns that I have is that there is some interaction between the credit market situation and the growth situation," Bernanke said.
"If the economy slows considerably, which worsens credit quality, that worsens potentially the condition of credit markets that might tighten credit further in a somewhat adverse feedback loop," he said in congressional testimony.

http://www.guardian.co.uk/feedarticle?id=7344762

[Drewbert]

http://bigpicture.typepad.com/commen...he-fed-is.html

[touchring]

Originally Posted by Rubber Duck

"One of the concerns that I have is that there is some interaction between the credit market situation and the growth situation," Bernanke said.
"If the economy slows considerably, which worsens credit quality, that worsens potentially the condition of credit markets that might tighten credit further in a somewhat adverse feedback loop," he said in congressional testimony.

http://www.guardian.co.uk/feedarticle?id=7344762

Really? But what if lowering interest rates doesn't prevent recession? Then we'll have the best of both worlds - Inflation + Deflation, at the same time. Inflation in cost of living and deflation in wages and assets.

6 months down the road, Bernanke might say: The US is in a liquidity trap, lowering interest rates cannot increase economic activity. We'll start raising now.

[Rubber Duck]

Originally Posted by touchring

Really? But what if lowering interest rates doesn't prevent recession? Then we'll have the best of both worlds - Inflation + Deflation, at the same time. Inflation in cost of living and deflation in wages and assets.

6 months down the road, Bernanke might say: The US is in a liquidity trap, lowering interest rates cannot increase economic activity. We'll start raising now.

I think Hyper-Inflation is a trade off that the Republicans have decided to pay to avoid annihilation in November.

[touchring]

Originally Posted by Rubber Duck

I think Hyper-Inflation is a trade off that the Republicans have decided to pay to avoid annihilation in November.

Sure this is conventional belief, but i think this inflationary policy has nothing to do with the election. It will continue until the subprime problem is solved - that will be years from now.

I'll be loading more silver next week.

[Rubber Duck]

Yes, and commodities will continue to rise until they are priced in Hard Currency.

The inflation problem is one of psychology. What it requres to solve that problem will be the American Public facing economic reality. We are years of that yet. As Bush says, the economy is fundamentally sound, because it is almost entirely based on borrowing money to buy cheap imports. He knows that when push comes to shove they will just let the printing presses roll. I think he is hell bent on becoming the first President to be assinated after he has left office.

Originally Posted by touchring

Sure this is conventional belief, but i think this inflationary policy has nothing to do with the election. It will continue until the subprime problem is solved - that will be years from now.

I'll be loading more silver next week.

[bwhhisc]

Originally Posted by Rubber Duck

I think Hyper-Inflation is a trade off that the Republicans have decided to pay to avoid annihilation in November.

We may be heading for stagflation...

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

And just a side note, don't count the Republicans out unless Hillary get the nod. Beyond great charisma, Obama is a lame
duck with glaring lack of experience when it comes to economics, politics, let alone international affairs, military etc.
Mark my words, a whole lot of Democrats would better stomach McCain than Obama if that is the hard choices.

[touchring]

Originally Posted by bwhhisc

We may be heading for stagflation...

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

And just a side note, don't count the Republicans out unless Hillary get the nod. Beyond great charisma, Obama is a lame
duck with glaring lack of experience when it comes to economics, politics, let alone international affairs, military etc.
Mark my words, a whole lot of Democrats would better stomach McCain than Obama if that is the hard choices.

The Asian governments are afraid of Obama. It is his lack of affiliation that worries them with respect to protectionism. They are not comfortable with dealing with someone they haven't dealt with previously.

[Drewbert]

Originally Posted by bwhhisc

Obama is a lame
duck with glaring lack of experience when it comes to economics, politics, let alone international affairs, military etc.

Much like Bush.

Hopefully he's better at picking his advisors and accepting advice than Captain Deciderer.

How much experience did JFK bring to the table?

[touchring]

Originally Posted by Drewbert

Much like Bush.

Hopefully he's better at picking his advisors and accepting advice than Captain Deciderer.

How much experience did JFK bring to the table?

But JFK won. Oratory skills does count at the US elections.

[Rubber Duck]

Originally Posted by touchring

But JFK won. Oratory skills does count at the US elections.

Yes, and whether women want to crawl under the desk and such your cigar, also seems to be a factor, but I am still fucking puzzled as to how Bush got elected!

Originally Posted by bwhhisc

We may be heading for stagflation...

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

And just a side note, don't count the Republicans out unless Hillary get the nod. Beyond great charisma, Obama is a lame
duck with glaring lack of experience when it comes to economics, politics, let alone international affairs, military etc.
Mark my words, a whole lot of Democrats would better stomach McCain than Obama if that is the hard choices.

I think a lot of Americans are not going to be happy with McCain.

It is his intervention that has screwed up Boeing's future in the Refuelling market.

Why couldn't he just join the bung queue like all the other politicians?

http://news.bbc.co.uk/2/hi/business/7272272.stm

[bwhhisc]

Originally Posted by Rubber Duck

I think a lot of Americans are not going to be happy with McCain.

You are right...and if the ballot was allowed to say "None of the Above" that would win this election.