Bernanke At Jackson Hole: Economic Outlook "Inherently Uncertain." USA! USA! USA! USA! USA! USA!

[Amerigo Vespucci]

Bernanke At Jackson Hole: Economic Outlook 'Inherently Uncertain,' But Fed May Act

JEANNINE AVERSA | 08/27/10 12:02 PM | AP



http://www.huffingtonpost.com/2010/08/27/bernanke-at-jackson-hole-_n_696972.html

JACKSON, Wyo. — Federal Reserve Chairman Ben Bernanke said Friday that the Fed will consider making another large-scale purchase of securities if the slowing economy were to deteriorate significantly and signs of deflation were to flare.

Bernanke acknowledged that the recent pace of growth is "less vigorous than we expected." He described the outlook as uncertain and said the economy "remains vulnerable to unexpected developments."

At the same time, he said growth is likely to pick up next year. He downplayed the odds of another recession, even after a series of dismal reports on housing and manufacturing this week stoked fears that the economy may be on the verge of another downturn.

His remarks came 90 minutes after the government said the economic growth slowed sharply in the second quarter to a 1.6 percent pace.

Bernanke stopped short of committing to any specific action. But he raised the prospect of another Fed purchase of securities, most likely government debt or mortgage securities, to drive down rates on mortgages and other debt to spur more spending by Americans.

"I believe that additional purchases of longer-term securities should the FOMC choose to undertake them, would be effective in further easing financial conditions,"he said. The FOMC stands for the Federal Open Market Committee, the group of Fed policymakers that makes decisions on interest rates and other steps to aid the economy.

The other two options he laid out are:

_Providing more information in the Fed's post-meeting policy statements about how long Fed policymakers would continue to keep rates at record lows. For more than a year, the Fed has been pledging to hold rates at ultra-low levels for an "extended period."

_ Cutting to zero the interest the Fed pays for banks to keep money parked at the Fed. That rate is now 0.25 percent.
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"The issue at this stage is not whether we have the tools to help support economic activity and guard against disinflation. We do," Bernanke said. "The issue is instead whether, at any given juncture, the benefits of each tool, in terms of additional stimulus, outweigh the associated costs or risks of using each tool."

[Hawkowl]

1. Fucking tool

This guy isn't stupid. He knows EXACTLY how to fuck over the vast majority of Americans to benefit his Wall Street overlords. The Fed is a private consortium of banks that controls our money supply. Wall Street rules this country.

[Subdivisions]

2. Disinflation?

:wtf:

[grasswire]

3. ...now watch this swing... (n/t)

[Skidmore]

4. Jackson Hole? What's he doing there?

Changing Cheney's batteries?

[Urban Prairie]

5. We all are on the deck of an economic Titanic, and slowly sinking into an ocean of red ink...

"Inherently uncertain", yeah, right...beat around the "Bush" just like Phil (mental recession) Gramm...but in more direct terms, our joke of an economy is what it is, primarily due to every job or potential job that is not nailed down here in the US by pure physical necessity, has become increasingly vulnerable to the recession, as well as the usual suspects of automation, robotics, technological advancements, as well as outsourcing and off-shoring.

Our government seems to be afraid to let the cat out of the bag, that someday soon our foreclosed electronic vapor-like house of economic cards on a computer hard drive, will BSOD completely, since obviously GDP growth is no longer any indicator of potential JOB GROWTH. What is to become of us here in the US? Are most going to have to work for the government directly or indirectly, to still be somewhat securely (if at all) employed? Or will the federal government eventually permit anyone, regardless of age, who can volunteer for "homeland defense" by sitting in a hoverround while holding a rifle?? Or perhaps those who are able to simply stand up and walk, can successfully enlist/re-enlist in the never ending "war on terrorism" as a member of our military.

Or perhaps many who may lose or see their "entitlements" cut to the bone, will need to become desperate contestants on "America's Got Talent" or maybe if they are unemployed but still young, slim, busty, attractive, and female, a few might be able to get on "A Minute To Win It"..heh!!