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tw · 11-08-2007, 05:54 PM

Returning to the topic: Bernanke (Federal Reserve Chairman), in testimony to a joint (Senate and House) committee, said that stagflation is back.

Stagflation was created when government was spending massively, government debts increases, oil prices rose to prices well in excess of $5 per gallon (in today's money), the dollar dropped massively, massive debts from Vietnam were coming due, jobs eventually were lost, GM, Ford, and Chrysler made cars so crappy that one always would not start every cold winter morning in the parking lot, mortgages were hard to obtain, the US 6th fleet at one point could not even put to sea due to fuel shortages, housing market crashed, gold rose to record dollars per oz., heavy machine operators would make best money driving construction equipment onto ships as so many American business were selling off capital equipment just to survive, copper prices increased by a factor of ten, accountants (bean counters) were in great demand while engineers (innovators) had trouble finding jobs, violent crimes increased (as anyone in Philadelphia what the lead news story has been most every night for the past two weeks), the third largest industrial base in the world (US overseas owned businesses) were being sold off completely to pay for America's debts, government was lying about environmental laws and enforcement, that light at the end of the tunnel was finally considered fiction (ie "Mission Accomplished"), and - how curious - the president was a crook AND a liar. Deja vue?

Bernanke has a problem. Core inflation numbers imply near zero inflation. However those numbers exclude things like energy (oil) and food. Two years ago, what $20 once bought in the grocery store now costs almost $30. But there is little inflation? Only according to the official government numbers. We know how honest this government (dominated by wacko extremists) is.

The Fed must raise interest rates to combat inflation? It cannot. According to Bernanke, a recession is a real possibility. So the Fed must lower interest rates? They already did that with prime rates as low as 1% when the threat of recession was less. Having lowered rates too low to make a 2003 economy look good, well, economic forces are now conspiring to take revenge for the easy money.

Nothing suggests stagflation will approach 1970s pain. But then how many here were 16 or older in the 70s? I suspect half in The Cellar have little grasp of anything but a Roaring 20s economy.

Bernanke’s dilemma: This economy has been in a slow destruct mode as America even entered a war that would only cost $2billion and it now created more anti-America uprisings even in S America. How many appreciate why this author has been so appalled for so long? How many know that tw was never even partially aggressive critical of politicians until George Jr came forward to lie routinely? Welcome to the George Jr economy which we will have to pay for in the next ten years.

In 2000, Bill Clinton left America with a $260billion surplus. George Jr quickly turned that surplus into a deficient that had increased to as much as $400 billion. As Cheney said, "Reagan proved that deficits don't matter." Welcome to what those who voted for George Jr were really voting for. This debt created when the economy was at its best - when surpluses are supposed to be created. No decent American has a kind thing to say about this scumbag president. Tw has never (UT, et al should confirm this) in what - 20 years - ever been anywhere near this critical of any leader.

Welcome to what may be the start of stagflation according to Fed Chairman Bernanke.

11-08-2007, 05:54 PM	#45
tw Read? I only know how to write. Join Date: Jan 2001 Posts: 11,933	Returning to the topic: Bernanke (Federal Reserve Chairman), in testimony to a joint (Senate and House) committee, said that stagflation is back. Stagflation was created when government was spending massively, government debts increases, oil prices rose to prices well in excess of $5 per gallon (in today's money), the dollar dropped massively, massive debts from Vietnam were coming due, jobs eventually were lost, GM, Ford, and Chrysler made cars so crappy that one always would not start every cold winter morning in the parking lot, mortgages were hard to obtain, the US 6th fleet at one point could not even put to sea due to fuel shortages, housing market crashed, gold rose to record dollars per oz., heavy machine operators would make best money driving construction equipment onto ships as so many American business were selling off capital equipment just to survive, copper prices increased by a factor of ten, accountants (bean counters) were in great demand while engineers (innovators) had trouble finding jobs, violent crimes increased (as anyone in Philadelphia what the lead news story has been most every night for the past two weeks), the third largest industrial base in the world (US overseas owned businesses) were being sold off completely to pay for America's debts, government was lying about environmental laws and enforcement, that light at the end of the tunnel was finally considered fiction (ie "Mission Accomplished"), and - how curious - the president was a crook AND a liar. Deja vue? Bernanke has a problem. Core inflation numbers imply near zero inflation. However those numbers exclude things like energy (oil) and food. Two years ago, what $20 once bought in the grocery store now costs almost $30. But there is little inflation? Only according to the official government numbers. We know how honest this government (dominated by wacko extremists) is. The Fed must raise interest rates to combat inflation? It cannot. According to Bernanke, a recession is a real possibility. So the Fed must lower interest rates? They already did that with prime rates as low as 1% when the threat of recession was less. Having lowered rates too low to make a 2003 economy look good, well, economic forces are now conspiring to take revenge for the easy money. Nothing suggests stagflation will approach 1970s pain. But then how many here were 16 or older in the 70s? I suspect half in The Cellar have little grasp of anything but a Roaring 20s economy. Bernanke’s dilemma: This economy has been in a slow destruct mode as America even entered a war that would only cost $2billion and it now created more anti-America uprisings even in S America. How many appreciate why this author has been so appalled for so long? How many know that tw was never even partially aggressive critical of politicians until George Jr came forward to lie routinely? Welcome to the George Jr economy which we will have to pay for in the next ten years. In 2000, Bill Clinton left America with a $260billion surplus. George Jr quickly turned that surplus into a deficient that had increased to as much as $400 billion. As Cheney said, "Reagan proved that deficits don't matter." Welcome to what those who voted for George Jr were really voting for. This debt created when the economy was at its best - when surpluses are supposed to be created. No decent American has a kind thing to say about this scumbag president. Tw has never (UT, et al should confirm this) in what - 20 years - ever been anywhere near this critical of any leader. Welcome to what may be the start of stagflation according to Fed Chairman Bernanke.