Fed predicts economy will get worse

Posted January 6th, 2009 by Jim Brown

In the minutes from its last meeting, the central bank said it expects GDP to decline in 2009 and unemployment to rise into 2010.

NEW YORK (CNNMoney.com) -- The U.S. economy is likely to deteriorate further this year and unemployment will rise into 2010, according to the latest forecasts from the staff of the Federal Reserve.

This bleak forecast was presented to Fed policymakers when they met last month and lowered interest rates to near zero. Low interest rates are one key tool the central bank uses to try to spur economic activity.

According to the minutes from that meeting, the central bank is now predicting that gross domestic product, the broadest measure of economic activity will fall in 2009.

"I think that the Fed is really very scared right now -- like everybody else -- and they want to pull out all the stops," said David Wyss, chief economist for Standard & Poor's.

The Fed indicated that most members at its meeting expected a slow recovery to begin in the second half of the year, but that unemployment would still rise "significantly" into 2010.

Employers cut 1.9 million jobs over the first 11 months of 2008, which took the unemployment rate up to 6.7%. The December report will be released by the Labor Department Friday and economists surveyed by Briefing.com expect a loss of 475,000 jobs and that the unemployment rate will rise to 7%, which would mark a 15-year high.

The Fed cited a multitude of problems dragging down the economy besides rising unemployment, including stock market declines, low consumer confidence, weakened household balance sheets and tight credit conditions. It said business spending is also likely to fall due to weak retail sales and the credit crunch.

In addition, some members of the Fed expressed concerns that the economy could worsen even more than currently expected.

http://money.cnn.com/2009...

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Ludwig von Mises - prophet

On January 7th, 2009 Republicae says:

Ludwig von Mises - prophet extraodinaire said:

"All isolated measures of government interference with market phenomena must fail to attain the ends sought. If the interventionist government wants to remedy the shortcomings of its first interferences by going further and further, it finally converts its country's economic system into socialism of the German pattern. Then it abolishes the domestic market altogether, and with it money and all monetary problems, even though it may retain some of the terms and labels of the market economy."

"The boom produces impoverishment. But still more disastrous are its moral ravages. It makes people despondent and dispirited. The more optimistic they were under the illusory prosperity of the boom, the greater is their despair and their feeling of frustration. The individual is always ready to ascribe his good luck to his own efficiency and to take it as a well-deserved reward for his talent, application, and probity. But reverses of fortune he always charges to other people, and most of all to the absurdity of social and political institutions. He does not blame the authorities for having fostered the boom. He reviles them for the inevitable collapse. In the opinion of the public, more inflation and more credit expansion are the only remedy against the evils which inflation and credit expansion have brought about."

http://www.1776solution.b...

"If I want to be free from any other man's dictation, I must understand that I can have no other man under my control." ~William G. Sumner

Pray that the public ...

On January 7th, 2009 Bob-45 says:

finally realizes that it is safer to do something than do nothing about ending the Fed.

By the way...

On January 7th, 2009 hartman says:

There's no way those are the real minutes of the meeting. Minutes aren't supposed to be that polished, that scripted, that perfect. These minutes read like a damn storybook.

http://federalfallacy.com

bump

On January 7th, 2009 legalizeliberty says:

http://www.votenader.org/...
http://www.flickr.com/pho...

Ron Paul Will not Question Obama

On January 6th, 2009 JoeSix-Pack says:

I got a call today (1/6) back from Ron Paul's staffperson. He was polite and explained that Ron paul did not feel there was enough evidence to take such an action. He kept saying there is nothing to it, but He did not have anything specific to answer the dual citizenship at birth or the Indonesia citizenship issues. He mentioned that Marty Berg is a Clinton supporter, and that the Clinton's would have been all over this if there was anything to it (what if they are tied into it or have secrets that Obama keeps).

I conceded that if Ron Paul truly believes there is not a case, his position is correct, but still am not convinced that he is right (i.e., that there is no case). I understand the ire that would be raised if congress took such an action, but I still contend that it is the constitution that is at stake, and that Obama really dug himself in by refusing to provide:

1. Original birth certification with the name and location of the hospital, attending physician, witnesses, etc.
2. Not providing information on his Indonesian citizenship status.
3. Sealing records (i.e., his dissertation, and university enrollment applications, etc.).

Mr. Obama is running for president of the United States, not coach of an 8 year old softball team in Gary Indiana. We have some right to ask questions, and if we do not get answers, we should be suspicious. It's time to take back our country.

See my view here:
www.JoeSixPack.me

Obama didn't dig himself in

On January 7th, 2009 Adam0980 says:

Obama didn't dig himself in anywhere. You and everyone else interested in this issue are complete hypocrites. You're only interested in it because you don't like the person. It's not because some law could be broken. You just stand behind that to cover your true desires and interests. You just don't like Obama so find some absurd, shot in the dark issue that could destroy who he is and the possibility of him getting the job you don't want him to have. And probably on top of that you don't wanna accept that Ron Paul lost or anything remotely associated with him. Government as we know it and don't like it will continue. Deal with it.

So Adam you like this

On January 7th, 2009 SIERRAHPBT says:

So Adam you like this marxist piece of dung?? you like what he is going to do to this country?

"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson

I am more concerned about the return of my money than the return on my money. --Mark Twain

No, I didn't say that.

On January 7th, 2009 Adam0980 says:

No, I didn't say that.

adam0980 said You just don't

On January 7th, 2009 SIERRAHPBT says:

adam0980 said
You just don't like Obama ....

you got right.. I hate any prick who is a marxist , commie bastard who is guilty of treason to this great nation! throw in...
carter, bush 1, clinton, bush 2, FDR.. and just about every single CONgress jerkweed that has been elected since 1913!

did I make my point?!

"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson

I am more concerned about the return of my money than the return on my money. --Mark Twain

And... Yes, you made your

On January 7th, 2009 Adam0980 says:

And...

Yes, you made your point, and, more to the point, my point.

it is their plan...

On January 6th, 2009 ecorob says:

to slowly and methodically bleed america to death...

a true patriot has only one choice to make...

O Captain, My Captain, rise up and hear the bells!

And when does the fed go Bankrupt

On January 6th, 2009 meekandmild says:

or put out of business by "we the people"?

Well hell,

On January 6th, 2009 sistagirl86 says:

I already predicted that......And I don't know $h1t about economics.

Must not be very smart people over at the FedRez.

It's always worse

On January 6th, 2009 McClarinJ says:

than they will admit. Jobs loss through 2012?

They ought to know.

On January 6th, 2009 nwind says:

They are the one pulling the strings on it.

Pat

BOHICA!!

The american public is not accustomed to discussing the

On January 6th, 2009 Regnad Kcin says:

fed reserve or monetary policy. They are just not familiar with the concept. They know that money is money, and they are having enough trouble getting used to not having any money, let alone figgerin' out what money is.

Watching the video from yesterdays RNC chair debate really convinced me that all of our libertarian theorizing and esoteric slogans just do not resonate with today's electorate.

From now on, even simple chants like End The Fed, or F**k the Fed should be viewed as potentially confusing when presented to a general audience of the rank and file GOP.

It seems that to make inroads with the GOP's neoconservative base, we should be using a slogan that is understandable and resonates well with the standard English vocabulary of the Neocon. We need to promote a new mantra, "The Fed is Icky." Several variants on this theme come to mind. The Fed is ICKY, The FED is icky, and The Fed IS icky, show great promise. We could even have an "Icky Girl" on You Tube. Imagine the possibilities.

Maybe after a few weeks we could ratchet it up a bit, to "The Fed is SO Icky."

Funny - great idea!

On January 6th, 2009 Qwerk says:

Let's use this phrase often!

The fed has decided to TELL US the economy will get worse

On January 6th, 2009 tstorey says:

The fed has been TOLD to tell everyone "worse."

The fed is just doing what they are told to do...don't get cross with them.

A gutless little lackey is just that...nothing more nothing less.

You ask the busboy to clear your dinner plate and he does it.

You tell the banker to tell the people stuff and the banker tells them...what's the big deal here?

The Fed

On January 6th, 2009 truth supporter says:

is just an extension of the Rothschild Bank of England. These private bankers who are running the governments really need to GO. Are there enough honest politicians in Washington to stand with Ron Paul and end this monster that has usurped the American government?

And, they would know...

On January 6th, 2009 Bob-45 says:

since they are causing it.

Actually, they have simply

On January 6th, 2009 Republicae says:

Actually, they have simply been rebelling against reason, anytime you try to buck the MARKET and interevene into every area of the MARKET, which always has more force then any government or offical economic managment system then the MARKET will always take its RENGENCE as it seeks to bring about equilibrium back into the economy. They, and some of us here, think they are in control, believe me the MARKET will prove them wrong, it always does and then they have to scramble around seeking a solution to the very problems their own actions caused in the first place.

We might not realize it yet, but the MARKET is the ally of Freedom, and will always seek to fight against tyranny, even the tyranny of good intentions!

I'm putting my bets on the MARKET against the FED!

http://www.1776solution.b...

"If I want to be free from any other man's dictation, I must understand that I can have no other man under my control." ~William G. Sumner

no shit!!!..... tell us

On January 6th, 2009 SIERRAHPBT says:

no shit!!!..... tell us somnething we didn't know!

"When governments fear the people there is liberty. When the people fear the government there is tyranny."
-Thomas Jefferson

I am more concerned about the return of my money than the return on my money. --Mark Twain

And on the front page of MSNBC...

On January 6th, 2009 hartman says:

"Wall Street advanced moderately Tuesday, as fresh details from the Federal Reserve on its efforts to combat the recession helped offset disappointing economic reports."

How does that possibly make sense? Fed says that even it, Overlord of the World, does not expect a recovery and MSNBC spins it as great news!

http://federalfallacy.com