Fed's Fisher sees 'frightful storm' brewing

[swag]

Source: Investment News

Dallas Federal Reserve Bank President Richard Fisher yesterday predicted a grim economic outlook for the United States and indicated that the Federal Reserve Board may be considering a change in monetary policy.

In remarks made to the Commonwealth Club of California in San Francisco last night, Mr. Fisher, a voting member of the Fed’s open market committee, predicted a “frightful storm” ahead for the U.S. economy.

He said that he expects “a change of course in monetary policy to occur sooner rather than later, even in the face of an anemic economic scenario,” if inflation expectations and developments continued to worsen.

Recent increases in commodity prices already have investors concerned about swelling inflation, which Mr. Fisher described as “the most insidious enemy of capitalism.”


Read more: http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20080529/REG/756104377/1094/INDaily01

[SpiralHawk]

1. Republiconomics in action

Thanks a pantload, 'conservative' republicons

[seemslikeadream]

2. hard crash is coming in "6-24 months".

http://lifeaftertheoilcrash.net/BreakingNews.html

[grasswire]

3. beware, beware, beware

Knowing the financier elites, they'll try to ram something despicable through with any "change in monetary policy."

Scary times.

[defendandprotect]

4. Is the FED going on the Euro?

What WE should be doing is putting the FED out of busines and insisting that the Congress
create a democractic economy -- these are political questions which the Congress is elected
to decide --- "the greatest good for the greatest number of people."

"...swelling inflation, which Mr. Fisher described as “the most insidious enemy of capitalism.”

Well, we wouldn't want anything to do harm to capitalism!!!

In fact, capitalism seems to be doing it's own hatchet job on capitalism!!

Does this mean that Fisher is done handing out taxpayer money to investment banks???

[dixiegrrrrl]

8. Fed wants to go to the Amero

it's the only thing that will bail out the worthless dollar..

which is prolly why the dollar was allowed to become worthless.

shock Doctrine, remember?

The North American Union Plan that Bush has been plowing ahead with includes using one currency-the Amero.
so the dollar, peso and loonie will all be declared illegal, folks with get a certain amount of Ameros in exchange.
Gotta a feeling this is where the martial law plan comes in.

And the game will go on until the Amero is as debased as the dollar.

All Roves lead to Rome, so to speak.

[defendandprotect]

14. Given the absence of any real perspective on the FED as a private bank, etal ---

from corporate-media --- absence of informing the public that we pay interest on money that the Fed prints because it is not done by our Treasury --- absence of criticism of the GOP/Milton Friedman "trickle down" economics -- absence of giving the public any idea of how much America is
becoming the GOP's "third world America" -- absence of explaining to citizens that it is our Congress who should be making these decisions ---

...and the corporate-reporters are simply sitting there watching this go down---!!!

[defendandprotect]

15. In fact, much of this necessary info re the FED is "taboo" here at DU . . . !!!

Imagine that --- !!!

[happyslug]

18. The Amero is a Joke,

Mexico is about to explode do to lack of funds for the Mexican Federal Government do to the DROP in oil production. That means cuts for the Mexican Military, Police, Education and other government functions. The Ability of the Mexican Government to keep its economic house is order so that it can participate in the Amero is fully suspect.

Now Canada has a good economy and its oil reserves are stable (But heading for decline). Furthermore the Canadian Government is NOT dependent on il Production for revenue, thus a drop in oil production will have a much smaller affect on the Canadian Government. The problem Canada can NOT offset the economy decline of Mexico let alone the US.

If you look at the Euro, the Euro stability is the product of the willingness of France and Germany to work together to offset the inability of the rest of the Euro nations to keep their economic house in Order. I have read that both Greece and Italy have run deficients that would lead to a reduction of their own currency if their still had one instead of the Euro. Germany and France offsets these push for inflation in the Euro. France and Germany together are large enough to do this, and large enough to put pressure on the other Euro Nations to get their act together (Both Germany and France wanted Britain to Adopt the Euro so they would have another economic power to offset the economic weakness of the Southern Tier countries, but Britain declined).

My point is the US is NOT economically strong enough to offset the Weakness of Mexico if the Amero is adopted. Canada can not offset any economic problems in Mexico without US Support, and at present Bush has so screwed up this country the US can not take care of its own economic problems let alone Mexican economic problems.

Sorry the Amero is a pipe dream that the US can only adopt AFTER we balance the budget, something Bush has been unwilling and unable to do.

[defendandprotect]

21. Two side issue questions to understand this . . . ????

One -- Is Mexico on empty or is this manipulation ---

Two -- what happened to our releasing our oil reserves to combat the oil companies?

[happyslug]

27. The Mexican Government CONTROLS the oil in Mexico.

Given that the oil in Mexico is Government controlled, and the Government NEED the income, it is hard for the recent decline to be a product of Manipulation (i.e. why would the Governing elite risk their control over Mexico for the benefit of OTHER countries oil companies?).

As to the US Reserve, the seven sisters can take the 45 days of US usage the reserves represent with ease. If there is speculation aspect of the recent price increase, release of the oil reserves will reduce that pressure, but if the cause for the recent price increase is REAL (i.e. Production of oil is PERMANENTLY below demand for oil) then the release of the Oil reserves will have, at best, only a temporary effect (i.e after the oil has been used, higher prices will return).

No the best way to lower prices is a three fold attack. First an Information attack to the American people to reduce oil usage (i.e the President, Bush today, Obama or maybe Hillary after January 20, 2009) go on the Air and tell the American people we MUST reduce usage. Praise organizations that are reducing oil consumption. Suggest ways Americans can help reduce the US use of oil. Push people to commute to work by Bike or Mass Transit. Tell people how to use the Internet to help people plan trips. Theodore Roosevelt once said the Greatest power the President has is the "Bully pulpit" i.e. the ability to get heard because one is the President.

Actual reduction of oil usage by the US Government will also help, First by pulling out of Iraq and shutting down the Military will have a greater affect on the price of oil given that 5% of total world oil usage is done by the US Military. Second by asking each department to come up with a plan to reduce actual oil usage i.e. having people travel by train instead of by Plane, having people take public transportation then going by car, even if the trip is longer. Even requiring State Police Forces to buy fuel efficient cars (i.e. In Europe the Typical police car is a VW Golf, what in the US used to be called a rabbit, not the large V-8 sedan used by most US Police Forces). This use of small cars with small four cylinders should be extended to other areas of the Government (Also can be part of the US information program mentioned above, have the President go around in much smaller cars without the Armor whenever it is deemed possible).

Third is change in the law code to encourage other means of transportation. For example permit people to take the mileage deduction even if they are making the trip by bicycle or mass transit, right now if someone takes the bus instead of his car, all he can deduct is the cost of the fare even if the mileage would be more. Fund more rails to trails programs. Fund conversion of older four lane highways into two lanes with a turning lane in the middle and two bicycle lanes on the outer edge (Notice I said older four lane highways, most designed before about 1960, after the Interstate Highway system came into play, such four lane highways were built with what are called "berms", the older four lane highways do NOT have such extras and would be better rebuilt as two lane with a turning lane in the middle do to the fact most have much narrower lanes then more modern highways and most have no berms, most are in high population areas which already limit the speed on such roads).

All of the above will have a greater affect on reducing oil prices by reducing demand then releasing the oil reserves. It means giving up on the idea that we can drill our way out of this mess (Something Bush is unwilling to accept, so I do NOT see him doing any of the above).

[ckramer]

24. do to = due to

"is our children learning?"

[happyslug]

28. I skipped that class

I use to joke I never learned what a run on sentence was till about two years after I graduated Law school. I admit my English grammar is bad. I have talked to other people and they were taught what a run on sentence was, the differences between do and due, and other basic english concepts in grade school. I can NOT remember ever being taught any of those Concepts. The First time I heard of the term "Past particulate" was in my German Class in High school.

Now when I was in grade school I read a lot, thus I can write (The two concepts are related) but detail concepts I was never exposed to. In Fifth grade and Sixth grade I had a teacher who required her students to read from a set of books she kept in the class room and do outlines of them. I did read the bare minimum of them I had to (I was more into history then pre-teen fiction even then) and then did a short synopses of the book. I kept getting Ds for those synopses. About four years later in my ninth grade English Class, I was reading my English book as the teacher was going over the English Literature I had already read and came across this strange looking set of tables like these:

A.
I.
II.
a.
b.
III.
B.

The book called it an "Outline", I had NEVER saw one before. Never taught it. Yet I am convinced my Teacher in fifth and Sixth grade gave me Ds on those book reports for I did synopses NOT an outline.

I suspect part of the problem was that I was in my useless Speech therapy class when the other students were being taught English (Thus I am in favor of the push since the 1970s for full integration of "handicap" people with the General population so that such problems do not happen again). The program was useless for it required me to circle pictures with certain "sounds" which was useless for I could spell, the problem was speaking. When someone from the County reviewed me in Sixth grade and recommended a delay tape machine so I could hear myself speak, I never saw my Speech therapist or the delayed tape machine ever again (Through in Seventh grade I ended up in Special Education for six weeks, for reason the Special Education teacher had to apologize to me for without saying why I was in Special Education, I suspect it was because because the School did NOT know what to do with me). Please note the Special Education was also doing and in place of my English Class (No conspiracy as to in being English Class just when it occurred). Thus I admit I had very little exposure to the concepts of standard American English Grammar. I did not catch up to me till Law School, but with a 140+ IQ I survived Law School.

Now I suspect the lack of Exposure to English Grammar in High School was more accident then deliberate policy, I can NOT say that as to my Grade School especially Fourth through Sixth Grade. In third grade my School hired a new School Superintendent. One of his first act was to require all spelling tests be grade on a one mis-spelled word is a B, two a C, three a D, four to more an E. Since it was NOT percentage I refused to participate. In protest from third grade to sixth grade,I NEVER Studied for a spelling test. The first time I even looked at the word was when I wrote them down as the teacher spoke the word during the test. I even was able to spell one to two correctly. I did that for Third, Fourth, Fifth and Sixth grade. It was in protest but NOT a single one of my teachers asked me about it. I did break down once in Sixth grade (or maybe fifth I had the same teaching for Spelling for both years) and did study and the teacher called me up to her desk and mentioned I only missed five or six words instead of all of them. The next week I reverted to my protest and not a word from that teacher. Notice she had knowledge I could do better for I had once, but no questions of WHY I was doing so poorly (please note this is the same teacher I had for two years while under speech therapy).

Thus while I believe my years in my High School (7th grade and above) the teachers did NOT have a vendetta against me, I can NOT say the same of my Grade School (I believe the teachers did dislike my family.

Just a comment on my errors in English. They are a product of out great Education system. My lack of background in English Grammar is a product of that system.

Now before anyone gets the idea that I oppose Public Schools, I do NOT (i.e. I support Public Schools). The reason is that I had to be put in a Class to learn even if the teachers hated my guts (and I suspect they hated my family more than any one member). That requirement forced the School to give me an opportunity that I fully exploited. They could NOT exclude me, without excluding others. That is the main advantage of Public Schools, it is a high base that every child has access to. Thus I support Public Schools, for if I had gone to a Private School with the same set of "teachers" they could have excluded me to an even greater degree.

My point here is to explain my poor grammar, and that one should be careful on criticizing other grammar for the error may NOT be an accident but a product of being self-taught.

[defendandprotect]

30. I'll have to reread this...but ...

I notice you don't mention nationalizing our own oil industry --

nor electric cars?

Back later --

[tctctctc]

5. FEDS = private banking cartel

They caused the crisis intentionally. To sell off the country. To be there, when the real estate is dirt cheap. To buy america from desperate local govt who go broke.

Not only that...but WE, THE PEOPLE, are letting them strap US with THE DEBT THEY CAUSED.

These people are criminals. And Congress is letting them do this to US.

[truedelphi]

9. Most people do not understand the truths behind the

Simple statements that you are making.

Even people who should know better - like people in the banking industry.

[defendandprotect]

16. Let's make clear: THIS FED INFO is "taboo" info at DU . . . !!!! ???

So -- how well informed is the DUer if they don't already know this or pick it up from
posts like these --- ???

[truedelphi]

17. I've surnised it being taboo but have no idea why?

Once before my Federal Reserve comment got dungeoned, someone said in Response, "Well, let's not blame the Jews."

Huh? Are only Jewish people assumed to be smart enough to be insiders of the banking system??

[defendandprotect]

20. Probably deserves its own thread . . .

'cause there are quite a number of "taboo" subjects here which get dungeoned ---
and rather impolitely, I must say---!!!

FED RESERVE is one of them --- which seems quite inane because it was one of the centerpieces of
JFK's presidency that he issued an Executive Order to remove currency printing from the FED and
returned it to the Treasury.

On a lot of these "taboo" subjects, it's hard for me to judge whether it's a case of the DU
administration being not well informed on these subjects or whether they fear the very high interest
and strong feelings which accompany these subjects.

"Tin foil hat" could also be a worry for them --- but it seems so outdated it's hard to believe???

[defendandprotect]

22. If you notice . . .

that's an excellent way to keep discussion from going forward on a number of taboo issues --
and when they can't be discussed people are left unenlightened and sometimes with very
distorted concepts ---

For instance, it seems we can't discuss Israeli politics without hitting that note --
Yet, Nixon armed right-wing fundamentalist Israelis who have taken control of Israel and
IMO murdered Rabin. See: "Murder In The Name of God"
Peace loving, liberal Israel is almost unheard - unacknowledged -- and totally suppressed.

I was listening to Thom Hartman last week and he made a very strange comment about the "Bilderbergers" being simply a case of Jewish hatred --- ??? !!!!
And he was adamant and cut off all conversation about it ---
said it always traces back to hateful propaganda against Jews --- !!!

When you get these very emotional responses to making these subjects "taboo" . . . I'm always
concerned.

[truedelphi]

25. Thom Harttmann and the Bilderbergers

See, that's what I mean. Now it is true that oh about one hundred and twenty years ago especially in Europe, your banking elite was made up of Jewish families. I never quite understood how that operated until I spent a summer in Europe. I would visit a crystal glass store and realize that all the crystal glass artists in one region were from one family. All the brick layers from another. Etc. For centuries, the trades were handed down from family to family.

But that is not the case any more. Especially not with the influence that America held in the fifties up to now. The American banking industry seemed to have quite a WASPISH element to me, at least as I was growing up.

[defendandprotect]

29. Also, historically ---

as I understand it -- and I think Howard Zinn has written about this/??? --
People of the Hebrew faith were often very socialist minded --- strong liberals --- strong supporters of progressive ideas ---

In fact, in large part, McCarthyism could be said to not only be an attack on the ideals of
democracy, but in its purging of government "liberals," it was largely an attack on Jews in government --- Jews who were very liberal and socialist in their thinking!

Yes -- of course --- every nation has it's own right-wing --- we can't ignore that ---
but we must also acknowledge that people of the Jewish faith are often liberals, left wingers.

[endarkenment]

6. funny thing about that swelling inflation

due to criminal shennanigans going back almost 20 years, the official inflation rate is deliberate bullshit so they can screw everyone hitched to COLA policies (like everyone on social security).

[central scrutinizer]

7. stagflation is back!

Thank god we have a President with an MBA!

[jaybeat]

11. MBA = Millions of Broke Americans (nt)

[central scrutinizer]

13. bumpersticker I saw yesterday: "No child left a dime"

[defendandprotect]

10. Isn't the Commonealth Club of California kind of like the Chamber of Commerce, etal???

and he's telling them he's ending the threat to capitalism .....

[aint_no_life_nowhere]

12. John McCain's response regarding these complex economic issues

"Hunh?"

[The Diest]

26. He thinks we still use haypennies. nt

[OneBlueSky]

19. “the most insidious enemy of capitalism" . . .

wonder if he ever considered the possibility that capitalism itself IS the enemy . . .

[Magleetis]

23. I think

its just part of the overall repug strategy. First, concentrate all the wealth and power in the hands of a few. Then crash the economy thus eliminating the poor and middle class. Sort of a Soylent Green scenario. Then the folks with all the money and power will have total control. The rest of us become their slaves.