I dissent. There is such a thing as lowering rates too far and too fast. I believe that is what is happening. When that happens, you get people with jobs who still cannot make ends meet because inflation has hit the market hard. Sometimes it is better to allow the business cycle to exist. That can lead to shorter recessions and faster recoveries.
I guess you think you are dealing with a kid. [waiting for the punch line i opened myself up for there]. I can't remember, but I recall something called iran-contra? Can you refresh my memory on that? As far as the current so-called recession, I agree that all of this is subjective. However, I myself have slowed down my consumption because I can't afford what I used to afford. So whether the country is in a recession or not, I know that I am simply because my paycheck is not keeping up with the rising prices, therefore I spend less. That is the difference between this current so-called recession and the one that so-called happened in 2001. In 2001, the employers were hit the most. Yes, people lost jobs but many didn't. Those that didn't still had decent spending power.
Inflation fueled by a weaker dollar has been and continues to be. A good bit of that is caused by falling interest rates.
I didn't make any assumtions on the age or other charateristics of who I was talking to. I think that you are mistaken on the economic definition of recession. It appears from your description above, that you are suffering from the effects of inflation.
Our economy is slowing down because people aren't spending money, consumption. That is the type of recession we are in. Why aren't we spending? Because the cost of core goods are so high. Food and Gas, things we can't do without is taking up all our money. We have no disposable income to waste on unnecessary things. I am starting to feel that you are arguing just to be arguing. Don't you know that bush is trying to give us a tax break so that we can spend money. Lower interest rates so people will buy houses. No of this matters to most week to week check people because you could lower it to zero and if you can't even pay the monthly payment it doesn't matter. Do you not understand this? It's not rocket science, refman. You can rhetoric it up all you want, but bush as squeezed every drop out of the economy for the gain of the wealthy. Hell, the lower interest rates help only the wealthiest as well. Unreal how bad this **** is. Bush is a monster as bad as I've ever seen.
There is only one cause of inflation- fiat currency weakness. More debt, less confidence, larger money supply, credit crisis. Inflation is inevitible with a Central Bank (the Fed) using debt to fuel economic expansion. There is always a correction cycle when debt bubbles are used to create the illusion of productive industry, wealth and savings. We are heading into a pretty nice size correction cycle. Whether you agree with this or not does not matter, you will feel the correction. We always get what we deserve. Hope you are either very rich or you have alot of savings and little personal debt; because the ride could get pretty bumpy. It is no accident that gold and oil are up and the dollar is down.
You are describing all of the symptoms of inflation. There is no doubt that we are in a horrible inflationary period. That inflation may well lead to a recession. If you get the two together, you get stagflation, Jimmy Carter style. My point is not that things are rosy. My point is to distinguish between inflation and recession. If one cannot diagnose the problem, one cannot endeavor to fix it in any meaningful way. Bush has done a poor job of fixing it. No doubt. The Fed has gone into panic in order to avoid recession. I believe the end result has been to prolong the suffering.
Wow, you look pretty foolish. Your post is pretty much 100% wrong. Did you see the inflation report this morning? Feb core inflation was UNCHANGED. Inflation is in check, big guy http://biz.yahoo.com/ap/080314/economy.html
that's a one month number and from the article you posted "The better-than-expected February inflation reading will likely be reversed in coming months, considering the big surge in energy prices in recent weeks."
liberals always cling to any future prediction of negative news. Very weak argument. Look at the facts, not some meaningless prediction.
[fact]Consumer inflation, after pushing relentlessly higher, posted its mildest reading in six months in February thanks to energy and food costs moderating.[/fact] its only one month
what's awesome is that unless oil prices start to go down the rest of the month, we already know this is a one month "trend"
heard cheney is on his way to the middle east to try to jump start the israeli/palestinian peace talks. then hes on his way to saudi to beg opec to pump out more oil. i think he has a better chance w/ the peace talks. no way is opec going to bump up production. theyve alreay said no several times.
tell that to cheney. i guess the admin thinks that increasing production would reign in prices. i guess they forgot that they torpedoed the dollar (w/ more devaluation to come due to recession) and theres a war in iraq. this whole ***** is fubar.
