TRUTH ALERT: St. Louis Fed Chief warns of the "Seven Faces of “The Peril”"
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Finally some truth out of the Fed?Bank of St. Louis President James Bullard outlined a doomsday scenario today regarding the potential future of the U.S. Economy. As a member of the interest-rate-setting Federal OpenMarket Committee, his comments carry special weight.In a paper released today titled “Seven Faces of The Peril,” he lays out two possible paths for the U.S. economy. And it got plenty of attention today. After the document was released it caused concern in the markets and sent stocks falling as much as 110 points, only to rebound later in the day.He argues, there is a high chance that low inflation married with low interest rates may lead to the kind of deflation that crippled Japan for a decade and is considered a threat to the Japanese economy even to this day.Read More: http://morichesdaily.com/2010/07/sevenfacesoftheperil%C2%94/
Seven Faces of The Peril by James BullardFED Report PDF September-October Issuehttp://research.stlouisfed.org/econ/bullard/pdf/SevenFacesFinalJul28.pdfFederal Reserve Bank of St. Louis ReviewAbstractIn this paper I discuss the possibility that the U.S. economy may become enmeshed in a Japanese-style, defationary outcome within the next several years.
RE: Or high inflation leads to a crash of the 600 trillion dollar OTC interest rate derviatives market and possibly the one to one and a half quadrillion dollar derivatives market as a whole -- an even more disasterous scenario.I know which one the bankers would pick.I know which one they are picking/have picked.Too bad it is the NY Fed that has all the power.He sounds like a basically decent guy, if I'm not deceived (again).
See Also:FED research report: U.S. is closer than ever to Japan-like deflationhttp://forum.prisonplanet.com/index.php?topic=181747.0
Fed's Bullard backs more asset purchases if needed29 July 2010, by Greg Robb (MarketWatch)http://www.marketwatch.com/story/feds-bullard-backs-more-asset-purchases-if-needed-2010-07-29Excerpt:The Federal Reserve should buy more Treasury securities if inflation dips lower, rather than lengthening its existing promise to keep rates low for an extended period, said James Bullard, the president of the St. Louis Federal Reserve Bank on Thursday. In a research report, Bullard said the U.S. is closer than it has ever been to a threat of Japan-like deflation.
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So...whose blog is this? There's so much on the web which is so important...and the right kind of "educational" - and whomever did this is someone I want to share some time...and beers with: Well done. My contribution today is:
ReplyDeleteThe problems we see today are merely the symptoms of a corrupt government, which leads to a corrupt group of large companies/corporation/wealthy individuals who have gotten into bed and actually Legislated corruption. It is all...our fault. Now we have no separation of Business & State...which is essential to a just self governance model...and we also have a problem in that we do not have a democracy anymore, but a duopoly which operates a form of fascism more than free-market capitalism. We are in the dead-cat-bounce phase of the worst depression in world history; it will be shorter yet very violent at times early on...and the Dow will be lucky to stay above 4800 when the plummet occurs. The corruptions have led to false books at most large companies, put the burden of taxes on those least able to afford them and the federal reserve system & rediculous banking system of super-low reserve requirements, fees at the head of the loans & investments with ratings and regulating agencies betrothed to those they are regulating & rating. We are in, deep shit - yet it is our fault. To close, we all need to value our only power: choice. The vote we cast & the dollar we spend are our only powers. Term limits & publicly funded elections are a good start. Thank you for the soap box!