Quote:
Quote by: bishop  all adjustments to money supply can be construed as artificial.. be it hording commodities, or adjusting lending rates..
i'm not sure, however, that the rate cuts must inevitably produce a bust - although they were kept in place way too long for my liking and certainly were (at least partially) responsible for creating the housing bubble as well as global inflation (notwithstanding the effect of oil prices).
that said, rates are still low compared to historical norms. the true problem seems to lay in our fiscal deficit - visualized by the continuing slide of the dollar versus competing currencies. |
In a nutshell:
- Personal Finances are solid.
- Household employement is going up....
- Average hourly earnings are going up.....
- Unemployment rate is going down....
- Consumer confidence is on the rise....
- Real net worth to personal disposable income is going up....
- Core PCE Inflation is between 2.0 - 2.5 % on average and Ben Bernanke wants to drop it between 1 - 2 %....
^^^^^^^^^^ Any questions?