Bernanke Leaving Interest Rates At Zero
By Dell Hill
Remember back to the Summer of 2010? And again this past Summer, when President Barack Obama sent his Vice President gallivanting around the country to celebrate “Recovery Summer”??
There was that poor sap - the walking gaffe machine - traipsing around from one union hall to another, touting his master’s golden touch on an economy that was lower than whale poop.
It most certainly wasn’t a “Recovery Summer” in 2010 and things weren’t any better this past year, no matter what the lying Democrats tell you.
If and when we DO have an economic recovery, it will be reflected in two very critical numbers. 1) The unemployment rate will drop below 6% and, 2) Federal Interest rates will start to climb. According to the latest news from Ben Bernanke, we should expect to start that recovery celebration for perhaps another two years...probably three.
The doom and gloom comes from Fox Business Report.
“In an effort to support the anemic economic recovery, Ben Bernanke’s Federal Reserve is reportedly poised to keep interest rates at virtually zero into 2014 -- nearly six years after slashing them to record lows during the financial crisis.
According to The Wall Street Journal, Fed officials have become increasingly uncomfortable with their pledge in August to keep interest rates exceptionally low at least through mid-2013 because some believe economic conditions -- low inflation and high unemployment -- could call for easy-money policies to last longer.
The report underscores the disappointing nature of the economic recovery, which has failed to create enough jobs to bring the unemployment rate to acceptable levels. Data released this week show that U.S. gross domestic product grew at just 1.8% in the third quarter.
As part of an overhaul of its communications strategy, the Fed is likely in January to stop predicting a fixed date for rate increases and instead may signal its intent through a range of forecasts along with its quarterly economic outlook, the Journal reported.
The Fed began cutting interest rates in 2007 amid signs the economy was slowing and the housing market was under severe stress. Then the central bank axed rates to near zero in December 2008 and later unleashed a pair of bond-buying exercises aimed at bringing down long-term rates even further.
Some economists worry the easy-money policies will spark a painful bout of inflation, but the Fed has said it is also concerned about the slow economy creating a deflationary spiral that is very tough to escape.”
Dell’s Bottom Line:
This weeks revelation that the new housing sales figures for the past seven years were, in fact, grossly over-reported is bound to have an additional negative effect. At the moment, I have very little confidence in ANY numbers that are published by ANY Obama administration agency. We seem to be experiencing a steady stream of “adjusted” and/or “corrected” figures. Adjustments and corrections that paint a far worse condition than the original reports.
Is there any way to re-float this sinking ship?
Yes, there is. Elect a president who will immediately offer an austere, but manageable budget, instantly repeal every regulation issued over the past three years plus, and sign legislation into law which will inspire private enterprise to flourish once again.
Senate Majority Leader Harry Reid has 25 such pieces of legislation - already passed by the House of Representatives - sitting on his desk. He refuses to even put ANY of them on the floor of the Senate, thus following the explicit instructions of his President.
When this Congress is adjourned, all 25 of those bills will die right where they sit - collecting dust on Harry Reid’s desk - which makes control of the Senate as important as the Presidential election next November.
“Recovery Summer”???
Mr. President, YOU LIE!
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