Global central bankers, stuck at zero, unite in plea for help from governments
By Howard Schneider
JACKSON HOLE, Wyo. (Reuters) - Central bankers in charge of the vast bulk of the world's economy delved deep into the weeds of money markets and interest rates over a three-day conference here, and emerged with a common plea to their colleagues in the rest of government: please help.
Mired in a world of low growth, low inflation and low interest rates, officials from the Federal Reserve, Bank of Japan and the European Central Bank said their efforts to bolster the economy through monetary policy may falter unless elected leaders stepped forward with bold measures. These would range from immigration reform in Japan to structural changes to boost productivity and growth in the U.S. and Europe.
Without that, they said, it would be hard to convince markets and households that things will get better, and encourage the shift in mood many economists feel are needed to improve economic performance worldwide. During a Saturday session at the symposium, such a slump in expectations about inflation and about other aspects of the economy was cited as a central problem complicating central banks' efforts to reach inflation targets and dimming prospects in Japan and Europe.
ECB executive board member Benoit Coeure said the bank was working hard to prevent public expectations about inflation from becoming entrenched "on either side" - neither too high nor too low. But the slow pace of economic reform among European governments, he said, was damaging the effort.
"What we have seen since 2007 is half-baked and half-hearted structural reforms. That does not help supporting inflation expectations. That has helped entertain disinflationary expectations,” Coeure said.
Bank of Japan governor Haruhiko Kuroda said he is in regular talks with Japanese Prime Minister Shinzo Abe about opening Japan to more immigration and other politically sensitive changes needed to improve potential growth, currently estimated at only around one percent annually.
Fed Chair Janet Yellen devoted the final page of her keynote talk on possible monetary policy reforms to a list of fiscal and structural policies she feels would help the economy.
Fiscal policy was not on the formal agenda for the conference, but it was a steady part of the dialogue as policymakers thought through policies for a post-crisis world. One of the central worries is that households and businesses have become so cautious and set in their outlooks - expecting little growth and little inflation - that they do not respond in expected ways to the efforts central banks have made.
That has included flooding the financial system with cash, and voicing a steady commitment to their inflation targets in an effort to make people believe they will be met.
Kuroda acknowledged that household expectations have not moved, and said the BOJ was prepared to continue its battle to figure out how to shift them. In modern monetary theory, households and business expectations are felt to play a defining role in spending and investment decisions, and thus in shaping inflation and growth.
"Japanese inflation dynamics remain vulnerable," Kuroda said. "It could be that long-term inflation expectations are yet to be anchored in Japan" at the bank's 2 percent target.
The concern about expectations is a paradox. The Fed for example fought a difficult battle with inflation in the 1970s, hiking interest rates to recession-provoking levels and eventually winning a war of credibility over its ability to rein in price increases.
Some central bankers remain fearful of clipping that cord.
But they also are hunting for ways to jolt the economy out of its doldrums, and a fiscal push is a possible tool.
In a lunch address by Princeton University economist Christopher Sims, policymakers were told that it may take a massive program, large enough even to shock taxpayers into a different, inflationary view of the future.
"Fiscal expansion can replace ineffective monetary policy at the zero lower bound," Sims said. "It requires deficits aimed at, and conditioned on, generating inflation. The deficits must be seen as financed by future inflation, not future taxes or spending cuts."
It was not clear whether such ideas will catch on. But there was a broad sense here that the other side of government may need to up its game.
(Reporting by Howard Schneider; Editing by Chizu Nomiyama)
Old5 hours ago
Fooled around with QE. That kicked the can down the road. That will be a butt biter 2018/19. Will add 1.1 TRIILION DOLLARS to the national debt.
Thanks Yellen/Obama for the faux economy.
Now you have the central banks whining for negative interest, helicopter cash.....when really they are clueless as to how to get the economy going.
Too many inept politicos making laws when they have no idea what they are doing. Listening to big banks and Wall Street...driven by self interest.
Or listening to Yellen who has no idea either.
We are screwed!
Icallsem As Iseesem
Icallsem As Iseesem12 hours ago
If governments would only just spend less than what they bring in, we wouldn't be in this problem.
Andre16 hours ago
They are all stuck at Keynsian model. We tried it with a $1T stimulus for "shovel ready projects" and predictably it failed to move the needle. The only result was a higher deficit due to wasted money. Governments love Keynsian approach because it helps them to payoff their cronies and to buy votes.
RobertM12 hours ago
National isolation is the only solution. Only when each populace believes that THEY are in control of their country's future, will they be optimistic about it.
ted16 hours ago
The first sentence tells us the problem...."Central bankers" are not supposed to be in charge of the world's largest economies. There in lies the big problem facing us.
mark14 hours ago
INTEREST AT ZERO LOW INTEREST RATES HAS IT WORKED TO IMPROVE THE ECONOMY? IT CREATES REAL ESTATE BUBBLES AND STOCK MARKET BUBBLES OTHER THAN THAT IT HASNT HELP AT ALL INSTEAD IT HAS HINDERED.
Chris9 hours ago
Immigration is code for cheap labor.
The banks caused the economic collapse in 2007-2008 and we the people bailed them out. We were rewarded by the Central Bank, aka the Federal Reserve, giving the same banks that failed, virtually unlimited low interest money.
The Fed policies and the policies of the Obama Administration have failed, and people actually wants to extend this failure.
Let's get back to what once made us great, and get rid of our national debt.
BB56 minutes ago
U.S. needs much more inflation.
Inflation makes debt irrelevant and creates wealth.
But despite a lack of healthy robust inflation, stocks are still headed for more new highs.
Soon to be President Hillary needs to start up a infrastructure initiative that will build thousands of dog parks across the nation.
GDP will soar as Hills gets things going with the help of Janet and Ben as advisers.
Buy stocks now.
fedupman1 hour ago
So flooding Japan with illegals and Muslims will improve it? Or are they speaking about all that free money the invaders will be handed to spend by the working Japanese. Apparently all this migration is about handing out funds to make migrants go spend with all the one world big businesses,who will also screw their own nations for a buck.
Chris9 hours ago
"What we have seen since 2007 is half-baked and half-hearted structural reforms. That does not help supporting inflation expectations. That has helped entertain disinflationary expectations,” Coeure said.
I hope you Obama lickers read that.
Stephen12 hours ago
A Yahoo reader
A Yahoo reader12 hours ago
Change the name of the problem is all that is needed? Not this time! The greed has 'trickled down' and is now taking over. Problem is that trade and profits don't happen when everyone expects to make 'a killing' off of each sale or trade. Actually doing work towards a profit, taking risks that may not pay off as well as the expectations is now looked at as a waste of time unless it catches up with you like it is now. What's in YOUR wallet?
Chris7 hours ago
We are having a hard time controlling the world, and really need your help. You owe us. If you don't take care of us, we will take care of you. Permanently.
This is the NWO group that Hillary subscribes to.
Either give your hard earned money to the government in the form of taxes, or give it to the bankers.
Robert8 hours ago
It was the Keynesian stimulus that kept the US from going into a depression with 25% unemployment. The reason why it barely moved the needle was that it should have been double the amount.
Had we gone he European route our economy would have been just like Greece and Spain.
Had John McCain won the Whitehouse in 2008 we would have had a bigger stimulus package because when there's a Republican President deficits suddenly don't matter. #$%$ Cheney said do himself.
And let us not forget it was the Bush administration turning a blind eye to predatory lending and not enforcing the few regulations on the banking industry that existed that got us into this mess.
I shudder to think how this economy would have fared if we went the European route. But you conservatives just keep believing that Greece's economy is so much better than ours.
And vote for Trump because the great orange conman counts on your being poorly educated.
The rest of us will elect Hillary and you can have your hissy fits and crying games but most of the country can't be fooled all of the time.
Phil16 hours ago
I believe that our economy is in a slow, and painful downward spiral. When companies see profits deteriorate, they cut jobs, incomes, and benefits to compensated.
They claim they do this to make their stock holders happy. I personally think its so they can keep those big fat paychecks that are up to 1000 times, or more,of what their employees make.
Either way, the more they cumulatively cut, the slower the economy gets. If you want an economy that works. The middle class needs to make a decent income
After all, you can't expect people to spend money that they don't have for very long. The billionaires certainly aren't spending theirs. The stick their money in stocks. Now the stock market is questionable, at best. I guess companies need to make a profit.
As I said we are stuck in a slow and painful economic downward spiral.
danadams7 hours ago
Households have taken on record debt levels, particularly for mortgages and vehicles, at
amazingly fast and high inflation rates. What consumers don't believe, or at least some of
them, is all the B.S. by bankers and governments.
DaProfit6 hours ago
World Jewry owns & controls over 100 central banks spread throughout the globe...including the 'Federal' Reserve Bank & Bank of England. These institutions destroy the host countries with their devaluations of currency & infrastructure development 'loans' that can never be paid back in full. Pure parasites. End all central banks worldwide !
Stevo16 hours ago
Banks want inflation? Inflation means costs go up, costs that nobody can afford to pay as it is... It's not about more jobs and production, it's about affordable wages. They need to be talking deflation, bringing the costs down. inflation reached its peak many years ago. Let the markets adjust to the current situation and quit trying to hang on to something that is long gone.
Steve16 hours ago
Bankers. Always wanting a handout. You gotta love it
DaProfit11 hours ago
Jews own & run all central banks worldwide and they're experts at ripping off every country that allows their scheming, Fiat money scams. Da Jewwws have ruined Europe through multiculturalism (google Barbara Lerner Spectre multiculturalism) by opening their borders to Middle Eastern, faster breeding peoples which then displace existing European cultures.
John12 hours ago
My heart bleeds for these poor bankers.
DaProfit10 hours ago
Jewwwws are now trying to destroy Japan through immigration aka multiculturalism...like they've done to Europe...(google Barbara Lerner Spectre multiculturalism)
tom9 hours ago
Obama will bail them out!!
Old5 hours ago
These are Hillary's buddies. The ones who have donated heavily to the aged bovine.
Basically they bought Hill for filthy lucre.... To fly her later....all the way to preferential treatment and more control of YOU.
Hill for Hell 2016. Only place the greedist old sellout belongs.
Piriopolis5 hours ago
The Rothchild family has over half of the world's money.They are the Wiz behind the curtain everywhere you look.
Chris9 hours ago
"...a common plea to their colleagues in the rest of government:..."
No, the Central Banks are not a part of government. At least they are not suppose to be.
Kevin10 hours ago
follow the bank of islam!
petey ondrasek3 hours ago
begging obama for some taxpayer monies b4 he leaves office
DaProfit9 hours ago
World jewry is destroying Europe through uncontrolled immigration of Middle Easternerd...now they're turning their attention to Japan. RIP Japan & Europe. All worldwide 'central banks' are owned & run by greedy jews...even the so called Federal Reserve Bank & Bank of England
spacecapade5 hours ago
"You can starve people till they work,but you can't work people till they starve"..Ash Wiggins
marj11 hours ago
I knew the Federal Reserve had been corrupted when Alan Greenspan sat with Hillary Clinton during the 1997 State of the Union address. And he an Ben Bernanke didn't let me down. Near zero interest rates after 9-11 due to zero inflation with risk of deflation was always a sham. Fact is the 1% Globalists don't dislike moderate inflation, it is how they make their living. They find it especially effective in taking back the raises you just got such as in the late 60's and 1996-1997. As to indexing inflation to the consumer price index....well what a joke on us. It is really a producers price index which is more than comfortable with consumer inflation (it's how they make their living) as long as profits to shareholders increase. Why do you think they inundate us with so many "new" higher priced products? Well those increases are considered "improvements" and not inflationary! Well I call it "cooking the books". The way out is for us to learn, accept the pain of a real interest rate, and try to hide our glee at the 1% getting there just rewards...
Icky115 hours ago
Here's what we need to do ;
We put you criminals behind bars for the rest of your parasitic lives, and reinstall all of the regulations we used to have before Nixon allowed you #$%$ to have complete control and dropped us off the gold standard.
Then, we not only audit the Fed, we hunt down every owner worldwide untill we have you either behind bars or in a box.
Then we demolish the Fed and take control of our currency.
We do what Ecuador did and tell the World Bank and the IMF to suck it, as well, while at the same time we hunt you down like the dogs you are, so that you can join your buddies in Gitmo.
I like that idea better than any of the #$%$ you theives and vipers put out.
Lee15 hours ago
These are true globalist 1%ers saying this. The real solution is to eliminate globalist 1%ers! Globalists are the enemy of America. The base of both sides in this debate want an end to TPP, bad trade deals, to fight islamic terrorism and an end to corruption. Globalists 1%ers who infest both parties, like Ryan, Reid, the Koch brothers and Soros want the rape of America and Americans to continue so that they can continue to make that last bit of profit by sending businesses and jobs overseas for slave wages and by having open borders here to drive wages down and rents up. They are intentionally dividing the entire country to keep the focus off of what is really going on. The left and right should put aside other differences for now and stop letting the globalist 1%ers divide them just so that they can continue with their rape of America! Ask yourself, who do these globalist 1%ers and their corrupt MSM support and who are they fighting and want defeated at any cost, and you will know who you should support. And it isn't hillary!
Ken15 hours ago
When America was on the Gold Standard, there never seemed to be all these idiotic problems. Note that they want Japan and the rest to have immigration reform ie: low educated workers to take jobs that pay a lot less for the same amount of work. They are trying the same thing in America and who is it that benefits? People like multi Billionaire Georgie Boy Soros and the politicians of one political party who will promise handouts for ever and while they get rich, deliver nothing, but hot air. For the uneducated, let me spell it out for you. That would be the Dmocrats like Hillary Clinton and Obama.
Knox15 hours ago
Isn't it interesting that somehow, one of the keys to global prosperity is for Japan to embrace immigration? The Assyrian Empire used to uproot half the population of a kingdom when they conquered it, send them somewhere else, and take half of those people to replace the ones deported. The reason? There was no longer a cultural unity bent on opposing Assyrian rule, making revolution less likely. Now we see Europe suffering from Muslim "refugees", and the US "unable" to stem the tide of illegal immigrants, while bankers tell us Japan needs this, too. Who is behind this?
William Ripskull14 hours ago
The economy is dead. In 2008, Obama took an economy that was on life-support and through bad economic policy, put a bullet in its head. Now these bureaucrats literally have a skeleton lying on a gurney, and they're talking about bringing in an economic defibrillator to try to bring it back to life. Economies don't need to be fixed, they need to be left alone. Government interference will always only make the good bad, and the bad worse. Take away the Fed's and the government's ability to print and borrow money in debt for debt swaps, and the economy will start to heal itself, although it might be painful. Delaying it will only make the inevitable more painful when it eventually happens. Nothing they do that is just "more of the same" will do anything but make the economy worse, destroy the middle class, make the lower classes suffer more than they already are, and funnel money up to the already uber-rich.
Chris15 hours ago
As you Canadians know, when your car goes into a skid on ice turning against the skid is exactly the wrong thing to do, even though your reflexes try to do it automatically. Likewise the world's central bankers see that investment and the velocity of money are down, so they automatically think that spewing money into the world's markets is the answer. It clearly has not worked for almost a decade (longer in Japan) but they simply cannot change.
What would actually work is lowering taxes and regulations and making government less of a tick on the testicles of the economy-- but when you work for big government and get your check from big government, the answer is always more big government.
Don14 hours ago
Central Banks were created early in the 20th century to remove from Congress the power to "mint money". As unconstitutional as that is, it is far better than leaving the power in the hands of those #$%$ clowns. Now the Central Banks seem to have become the problem. But we dare not return that power to Congress until we overhaul it. I see two critical revisions needed; (1) term limits and (2) limiting all bills to a single topic. Perhaps capital punishment for politicians enriching themselves at the public trough.
rockman14 hours ago
Forget the rest of the world, America has been painted into a corner by leftists and RINOS with short term vision. Bush 8 years, 5T to 10T. Obama 8 years, 10T to 20Trillion debt. That means the next 8 years will be 20 Trillion to 40 Trillion debt????? Leftists have NOT spoken 1 word about the debt, not one. Hillary and Bernie debates were about who could spend more and create more new government programs. The economy right now is not real, held together by short term bandages. There will be a reset, be prepared.
bluefintuna14 hours ago
Most people don't know that 'their' money is already governed as the 'banks' money. Your savings account is swept into the banks working capital and in the event of a failure you are a 2nd debtor and behind the stockholder in line for your money. Money Market funds new laws going into effect next month allow the same and you money is 'their' money...Crazy?? It's true go look it up. Now that want us to finance their debts. Milan CEO making million dollar bonuses on the backs of poor families desperate to keep their kids safe. Capitalism?? or criminal enterprise?
Bill15 hours ago
Bankers putting part of the blame for THEIR decisions on Japanese immigration policy....WOW. The bankers need to take responsibility for their own failing policies. The arrogance of a bunch of ivy league ivory tower elitists thinking they can control the world economy is beyond the pale. They've created the greatest bubble ever with the worldwide printing of money and record low and negative interest rates....it won't end well. Bubbles never do. The bankers have no one to blame but themselves. I suspect the bankers won't be let off the hook this go around when the inevitable crash occurs.
Jody11 hours ago
How does these radical immigration policies help the economy? The central banks are just trying to expand their control on domestic issues.
DENNIS8 hours ago
Read this any way you want. We are drowning in debt at every level in every country and without any growth to "grow out of it" now or on the horizon. To the contrary, the world seems to be slipping into a real depression, not only economically, but culturally and without leadership or new ideas. Hardly any wonder people are afraid and gloomy and with our political choices now like picking a new Captain as the Titanic goes down by the bow. Ouch.
Evan Brown14 hours ago
This is what Globalism has brought us to... Governments in deep debt to corporations...and soon corporations in deep debt to governments. Everyone owes everyone except the moneychangers...the billionaire speculators like George Soros, the Koch Brothers, Warren Buffet, and all their minions like the Clintons, the Obamas, and the Bushes. It isn't one party...It's ALL parties. And their best answer is to take away freedoms, strip nations of their borders, disarm everyone, control speech, and control thought.
Wake up people! This isn't how it should be.
Marjan11 hours ago
The #$%$ greedy autocratic cabal. Everything that they and their ignorant bamboozled leftist followers were warned about is coming true. Keynesian economics is #$%$ bunk. It's an addiction that mires all. It can't stop/end itself and the longer it's effectuated the worse it will get. It becomes a self-perpetuating circle of bigger and bigger bureaucratic governments and lesser and lesser citizenry with needy hands out to the government for help. It creates a parallel universes and economies, one for the rich and well-connected insiders, and one for everyone else, and it dooms the workers and middle class in the long run. Long run is the doomed reality of Keynesian economies because governments -- on the right, for political expediency and self-preservation, and on the left for clear purpose-driven agenda and ideological aspirations of creating big centralized governments and regimes -- can't stop itself from pumping up the fake economies they've created and the newly created constituencies of state -- voters -- who won't allow it to end. Damn it, we were all warned; who would listen??
stevensoleri311 hours ago
Ok, this really cracks me up. The Fed is focused on monetary tools to improve the economic outlook of families. This is like focusing on the ocean fish to save the desert cactus. The ENTIRE issue is the culture dumb-a##'es. Families and consumers see no economic future in a dumbed down, petulent and whining culture that wants instant gratification. In other words a culture that would elect a Hillary or Bernie. Everyone is scared as hell and for good reason. The liberals have built a house of cards where we cannot trust the future with our money. There is no place to run and bill is coming due.
The Arbiter11 hours ago
If THIS PLEA FROM WORLD BANKS doesn't make the S&P 500 go down significantly, this will be all the proof you'd need to confirm that OBAMA is MANIPULATING THE STOCK MARKET to help Hillary so that she can't be tied to a "bad economy".
A couple of months ago the S&P lost 100 points in a night, the NIGHT OF THE BREXIT VOTE. Over the next few days we rebounded but not back to where we were, no sir, we rebounded to ALL TIME HIGHS! IN SPITE of bad jobs reports, anemic GDP , bad housing reports, you know, all the things that USED TO damage the market. But nooooo sirreee BOB, we were headed for higher highs with nary a look back!
The S&P and the DOW have been a ALL TIME HIGHS for close to TWO MONTHS now and if this plea from WORLD BANKS FOR FREAKING HELP does't affect it, we will know that Obama is doing a LOT MORE than scheming to buy "corporate debt".
Tal Chai12 hours ago
Something is wacky with all the discussion about "the economy" in this report. WHICH economy??
The world is made up of myriad economies: Russian, U.S., Venezuelan, Chinese, etc. So, what is "THE" economy they are speaking of?
We clearly sense the big banks (as part of the mega-corporate global link-ups now) have already mentally established themselves as drivers of this new WORLD "economy" as if it were one single thing now. No wonder they are pushing for massive immigration movements to trounce borders and essentially dissolve them. The concept of sovereign nations is just too untidy a concept for their newly envisioned single-world entity with them at the financial helm.
They clearly have thrown out the ideas of the old ways with varied market economies with their unique markets of products, innovations, competitions and demands. No, it's far simpler to make it all one big WalMart World of same-same suppliers for same-same everywhere the same. Much simpler for centralized control, we can only assume.
It's spooky to hear these guys talk about the "mood of households" as if we are all worrying about inflation. What? Where did this Trojan Horse come from. All this stuff about "inflation targets" that will assuage us, the worried populations, has GOT to be some kind of diversionary babble, designed to keep the public eye off the "man behind the curtain" in their little world of OZ.
And they keep talking about households as if we are the problem for our "mood" and our not spending enough, when the real problem is we need jobs and incomes, and localized working economies where banks get OUT of the way and seek to spur markets that are working, and not try to create them out of thin air in the board room by manipulation currency policies. NO! We need free and open commerce where investment-supported innovation drives demand, creates jobs, and competition, and builds working economies.
Nothing is worse than eggheads who think they know better, and who are now at the global controls and who see it all as ONE economy. Oh brother, Look out. This ain't gonna be good..
Barry10 hours ago
Adam Smith, 1776, and the decline of developed economies.
The problem was explained and the remedy laid out more than 240 years ago. But it is ignored, distorted and suppressed. I am not an expert, but:
1. NATIONS gain wealth when workers are paid "Liberally" Adam Smith's example in 1776? The American Colonies!
2. NATIONS that pay workers, as now, by the Unfree Market, will find they "are going fast backwards." Adam Smith, 1776. And we have been for decades. It started after World War II, but accelerated after our last liberal President, Richard Nixon.
(Nixon was not a crook, but resigned because of the criminal conspiracy of U.S. District Judge John Sirica, all or most prosecutors, and the deputy head of the FBI, who sought promotion. Who? "Deep Throat". Woodward and Bernstein were his pawns.)
3. The wealthy have interests that differ from the rest of us. So they will endeavor to convince us that what they want, we should want. They will even lie to us. Adam Smith, 1776. And so we agree that laws should be passed guaranteeing that we have the "Right To Work" for LESS! And we pass laws that cripple collective bargaining by workers, like the Taft-Hartley Act.
4. Employers may be tempted to underpay workers, but Patriotism and Ethics should dissuade them. Adam Smith, 1776. Our Rulers, the Global Oligarchs, have no Patriotism for the U.S. and, as shown by the giant convicted criminal banks, they have no Ethics. Get what you can, while you can. By the time it is discovered you will be long gone.
5. When employers get together, they tend to discuss how to suppress wages. Adam Smith, 1776.
FREE download of Adam Smith's 1776 work on the wealth of nations at gutenberg.org. Or Amazon, from $0.99.
6. Free Trade and Fair Trade:
6.1 Fair trade is based on either natural advantage, such as 30's Saudi Oil lifted for $0.05 a barrel (illustrative) or is equalized by fair tariffs, for the protection of domestic producers.
6.2 Free Trade transfers wealth from the middle and lower classes of the wealthier nation to the Plutocrats of the poorer nation. The owners of Importers and exporters benefit. The middle classes and lower classes of both nations suffer. The wealthier class of the exporting nation are content, and see no reason to change.
7. The wealthy know they need consumers with disposable funds to buy products and services. And they are concerned as economies decline. Bandaids are proposed, and may provide some relief. They do not understand why only "some relief".. They are OBLIVIOUS. Workers are CONSUMERS! Who knew!
The PITCHFORKS are coming!
Anna11 hours ago
On June 10, 1932, Louis T. McFadden, said in an address to the Congress: "We have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks ... Some people think the Federal Reserve Banks are United States Government institutions. They are not Government institutions. They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign customers ... The Federal Reserve Banks are the agents of the foreign central banks ... In that dark crew of financial pirates, there are those who would cut a man's throat to get a dollar out of his pocket ...
Every effort has been made by the Federal Reserve Board to conceal its powers, but the truth is the Fed has usurped the government. It controls everything here (in Congress) and controls all our foreign relations. It makes and breaks governments at will ... When the Fed was passed, the people of the United States did not perceive that a world system was being set up here ... A super-state controlled by international bankers, and international industrialists acting together to enslave the world for their own pleasure!"
dgbee6 hours ago
This is pure absolute suicidal nonsense generated by those who would be king without doing a days work. Bondholders are not entitled. They are risk-takers who should no better than to accept the premise that low interest rates allow for expanding debt, i.e. the cost is so low, how can you resist? What happens when rates rise and taxes must rise to finance that load? We're all poor and government is there, like Venezuela, to pay back debt at the expense of the working class.
TeamRecon12 hours ago
Great article, discussing the limits of monetary policy. And most Americans will fail to look in the mirror at the problem creating a low growth environment. You see, our problems are Fiscal and structural in nature. Over 50% of Federal expenditures are nothing more than transfer payments. Risk taking, business, thrift and creativity are disincentived. Being a parasite is glorified culturally in many ways. And as much as we want to create a boogyman out of the Fed, we only have ourselves to blame.
Sean7 hours ago
Every. Single. Thing. These people (the federal reserve bureaucrats) have done has been wrong. They have made things worse and worse and worse for decades. Worse for the masses, that is. But the ultra-wealthy are getting richer and richer through all this. I don't begrudge anyone wealth that they've earned through work or productivity or creating a new thing, but this is just hoarding cash by manipulating currency and the markets. It's all fake. It's debt. It's enslaving more and more people. They're milking the masses and destroying Western civilization to make themselves fabulously wealthy.
Why does NOBODY in the media ask ANY questions about what they say? For instance Exactly HOW will opening up Japan's borders for immigrants to come flooding in help the Japanese economy??? That's what the same people are telling everyone in Europe & the U.S. But it's not doing anything except driving down wages and giving masses of cheap labor to the already wealthy. Not to mention turning these countries into 3rd-world hellholes of crime and cultural violence. That the ones promoting these policies are safe from, of course.
Rob13 hours ago
A letter from Abe Lincoln to William Elkins.....1863
"The money power preys upon the nation in times of peace and conspires against it in times of adversity. It is more despotic than a monarchy, more insolvent than an autocracy, more selfish than a bureaucracy. I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country. Corporations have been enthroned, an era of corruption will follow, and the money power of the country will endeavor to prolong it's reign by working upon the prejudices of the people, until the wealth is aggregated in a few hands, and the Republic destroyed."
Carl14 hours ago
This would be funny if not so serious: "One of the central worries is that households and businesses have become so cautious and set in their outlooks - expecting little growth and little inflation - that they do not respond in expected ways to the efforts central banks have made." Fancy that -- people are smarter than the banks (and leftists) because people learn; institutions and ideologies do not. People have understandably grown "cautious" because they have _seen_ "little growth" and expect more of the same, regardless of what their overlords in the central banks, governments, and media tell them. We are living in an age of rising propaganda and authoritarianism because institutions think they are in charge and can act without consent of the people.
An american patriot
An american patriot12 hours ago
Bank of Japan governor Haruhiko Kuroda said he is in regular talks with Japanese Prime Minister Shinzo Abe about opening Japan to more immigration and other politically sensitive changes needed to improve potential growth, currently estimated at only around one percent annually.
Please tell me.. What the hell has Japanese not letting the NEW WORLD ORDER people bring in massive amounts of Moslem immigration from the middle-east got to do with the world growth..
If these Billionaires would start being happy with enjoying all the money in the world and STOP TRYING TO ENSLAVE ALL THE WORKING PEOPLE THEN JUST MAYBE things would start getting much better..
Guoyu13 hours ago
WHAT?! To hear the mainstream Clinton media the economic recovery is progressing apace; in fact, it's full-steam ahead! So why the sudden panic? Ah, we guessed it, the mainstream media have been LYING to the people all along - who naturally feel it in their accounts.
You know something is wrong when your average 2-bedroom condo in crime-ridden areas now costs more than $650,000 and the 2-bedroom house with garden will set you back $1,750,000 ! And then of course there's the vacuum cleaner with a price tag of $695.00 and the office chair for $6,500.
Something is not quite right.
Doug14 hours ago
What actually happened was all the billions of dollars showered on the banks did not reach the people.
The banks kept the money, fired their business loan departments, put the free money into manipulating the stock market, mostly by shorting it. They have made a ton of money but not one penny went to business start-ups, expanding going concerns. If you want real growth then make laws that naked shorting of stocks are illegal. That banks are barred from owning stocks and that they go back to
lending money as their only legal source of revenue. Do that and you'll have growth on a scale you
CIPHER9 hours ago
Globalization does not work long term to sustain the larger world economies. We are seeing low growth, low inflation and low interest rates along with massive national debt increases throughout the world. Even with the massive debt increases and 4% unemployment, the U.S. GDP is only growing at a rate of 1%.
They claim that globalization "floats all boats" but what we have seen is quite the opposite long term. No doubt the few become wealthier, however the massive poor grow in comparison. The only thing that happens to big economies like the U.S. and EU is that over time they start to stagnate. Why, because the wealth of the country flows outward from these places.
We see that even with wealth flowing out of the country it can not raise these third world, low cost region countries enough without bringing the large economies lower and lower. The big feast is over. The globalists tell us that there is no alternative. Globalism is the deal of deals, the final battle yet they accelerate the race to the bottom, which moves us towards a major catastrophe of epic proportions.
upndown15 hours ago
Bunch of academics where common sense aint so common. The Fed shouldn't be printing money for banks but rather the govt needs to be creating an environment where people can create their own wealth. Essentially instead of giving money to banks, get disposable income in the hands of the people. That will be very difficult where most disposable income is going to health care and student loans or satisfying the high regulatory burden. These bubbles need to fixed first before monetary policy can become effective again.
Michael11 hours ago
So, Princeton University economist Christopher Sims solution to the problem is to go into massive debt and wish upon a star that future inflation magically happens to take care of it ? or, is it the BOJ genious plan to flood every decent country on the planet with muslim immigration and terrorists? Even this articles characterization of the Feds battle with inflation during the 70's is a joke! If these are the world's experts, we are truly doomed. Put them all on a deserted island together and pray for a hurricane !
GregoryB12 hours ago
For the globalist #RulingClass, the answer is always more government.
When Ronald Reagan took office in 1981, there was 13% inflation, 21% interest rates, 7.5% unemployment, slow growth and general "malaise." [Internationally, the Soviet Union was on the march and the latest phase of the 1400 year Jihad against Western Civilization was beginning. The Jihadists had taken over Iran and were holding American diplomats hostage.]
Ronald Reagan said:
--“In this present crisis, government is not the solution to our problem; government is the problem.”
He also observed:
--“The government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.”
Ronald Reagan cut taxes and reduced regulation and set off an economic boom. If economy under Obamanomics recovered as fast and the economy under Reaganomics, America's economy would be $2.8 Trillion larges and there would be 2.8 million more jobs. Instead, we got the slowest recovery since the Great Depression, falling wages, doubling the national debt, the lowest labor force participation rate since the 1970s, the lowest homeownership rate in 51 years, etc. etc. etc.
In America and in many if not most countries, the people, business and the economies labor under the burden of the ever fattening albatross of government around their necks.
Unfortunately, the Globalists at Jackson Hole, who produced and profit from the current mess, don't want to change directions and policies, they want to double down on their failed policies.
The, Democrat Party, liberal, and Globalist answer to the failures of government is always more government. But, that does not have to be the answer of We the People.
Cranky guy12 hours ago
It's funny and tragic at the same time. More control hasn't worked, so we need still more control. Funny, how the US economy had almost no active government for most of its existence, and did just fine. There were booms and busts, but overall growth made it the most attractive place to be for almost two centuries. Panics happened, and things were tough for a year or two, but within three life was back to the upswing.
There are two exceptions to this. The Great Depression, and now. What was different was big-time government intervention. FDR put tons of new programs in to boost things, and the economy got worse in his second term. Look at a chart of GNP for the Thirties. There's a double dip, right where previous history says a normal economy should be climbing.
Why? Because those that had any money sat on it. When the government says they have to step in to save the day, normal people hunker down to see what happens. When nothing much happens, they stay hunkered.
Same thing today. Spend nearly a trillion for "infrastructure". Why? Haven't heard of huge logjams of freight not getting to market. Workers that can't get to work. If this kind of spending really spurred growth, the Soviet Union would be alive and well, and Chairman Mao's policies would still be running China.
Rick22 minutes ago
Who do they think they are kidding? They are nearing endgame and gov (their co-conspirators) can't do anything more about it it, they are at negative interest rates already.
You know what the funny thing is about it? They think they are going to get away with it with their lives intact.
No amount of blaming is going to get you oligarchs out of this. make no mistake about it... We are going to drag every single one of you from your bunkers and hang you with the corrupt politicians you control.
Your families won't be spared. Your property and possessions will be taken from you and trust me, depending on which groups find you first, hanging will be merciful compared to what many of us will do to you.
Sean12 hours ago
In the first place, the author (propagandist troll) made reference to the central bankers as if they were ‘the other side of government’ and ‘the rest of government’. They are private bankers, not part of our government. They are not ‘Doing God’s Work’, as Goldman Sachs CEO famously claimed. They are bloodsucking vipers whose only concern is to make more money off the backs of their indentured crop, namely us. The only thing that can be depended upon is that the solution is to get a new, REAL Dept of Justice into Washington who may be bold enough to go after the criminals on K Street, on Wall Street and on Pennsylvania Ave. We will not survive four more years of establishment control of our crippled economy, the massively burdensome regulatory beast that chokes competition and protects the big corporate interests and out of control spending on the military-industrial complex. We need a change in Washington, not more of the same. We cannot fix the extensive problems in this country and, in fact, the whole world by doing more of the same. The big money-vacuum, war-mongering, surveillance-state, influence-peddling machine eventually has to be made to answer for their crimes against us and future generations. And for the author to cast these greedy gamblers in the banking industry as capable of being part of the solution is laughable and a grave dis-service to ‘The People’.
Brant13 hours ago
I never use all caps but here goes. BUY LAND NOW. The big dogs leeches do it for some reason. Even if its 5-10 acres. Can get cheap way in country. Probably even California and NY. You don't want to be near cities. You want to watch the news of the future not be the news. 5-10 acres of arable land, not those with beautiful mountain views. Get some animals. Make friends with your neighbors. That old southern "flag" that everyone hates may well save your life some day. You don't have to have one or even believe in some of the "things" it might represent, but you can be assured that flag will protect you if that time comes. I would rather be protected by that flag than the false security from gubmint.
Ken S.13 hours ago
Translation from 'globalese' into plain English: "We want/need more of your money" - these are the morons that have been creating hate and discontent over all of the EU (and are very delighted at their progress towards making the EU something few citizens really want) and have set their sights on the US with an all-out effort to turn the US into a version of the EU. Why the hell do you think 'Brixit' happened? The British have seen their future simply by taking a close look at what is happening in France - and in all the EU - save for the more savy ex USSR block countries who still remember what it's like living under a dictatorship. Seems we aren't as bright (collectively) as we seem to think we are.
Tell the globalists to go screw themselves! Let their banks fail and we'll see what really happens. I'm way past tired of giving taxpayers money to these clowns that cannot seem to run a bank properly.
Dana13 hours ago
Probably a more accurate description of our economic morass can be discerned from the YouTube video here: https://www.youtube.com/watch?v=0Z760XNy4VM. We may not be mice but, collectively, we act in very similar ways. We've reached our peak in how many of us can be stacked on top of each other in the cities so there's no place to naturally expand to. Welfare economies have their limits which we've passed now to the point of staring over the precipice as we start to fall. We don't know how to live in a stagnant economy and our so-called "leaders" don't know how to react to one either. It messes with their re-election plans so they try "command economics" and planned economies like Mother Russia did for most of the last century. How's that working out for everyone? China had to grudgingly accept capitalistic "reforms" but is almost too late to the game.
You can NOT grow and INorganic economy! Either it exists on its own merits or it doesn't. You can send all the jobs out of the country and try to exist on government doles and a Service economy as the savings accounts are spent and the "money" in your pocket fritters away to toilet paper while the next generation slouches toward total ignorance and self-absorbed nihilism engrossed in their "smart" phones China makes for us. We - the U.S. especially and the West in general - rose through work, determination and overcoming whatever was in our way. It's what makes life livable and propels one through it. Not Safe Zones and living off Mom, Dad and the government.
Splid13 hours ago
People should spend their money as they see fit. These "doldrums" are a wise and responsible reaction to reckless monetary policy and the overzealous politicians who support it.
For all the rhetoric around Marxist ideals (taking from some to pay for others) the reality that bureaucracy is the most inefficient and incompetent structure is rarely acknowledged. It has led to the lowest labor participation rate in over 40 years.
Let people keep their money. It is the moral thing to do. It is the most beneficial thing for the economy.
Max4214 hours ago
The real problem, of course, is the serious decline in true free enterprise capitalism. In Europe, Japan, and the US, the global crony capitalists have aligned themselves with socialist governments, which hand out massive government welfare programs to keep people afloat to the extent they become comfortable with the status quo, while the global crony capitalists get government support to expand world wide and discourage competition at home. It's loosely a fascist economic system which depends on ever expanding market growth, thus the concentration on China, India, and the rest of the third world such as South America. Central bankers know this, but won't admit it, because they really don't know what to do next.
Stan Mahan14 hours ago
Haruhiko Kuroda should be tried and hanged before he ruins Japan. If he gets his way, the Japanese culture will be diluted and the economy and culture will end up being like Europe. The Japanese have a beautiful country and culture with very little crime, young people that respect their elders, excellent schools, great work ethic and many other fine traits. Should the Japanese give all of this up for monetary policy. Please do not let this fool destroy your wonderful country.
ImaHippyBurning9 hours ago
The Time Has Come to Round Up The "Collective Globalists" and take back what they ILLEGALLY STOLE from hard working Taxpayers!
DEPORT ALL illegal criminals immediately and make them come through the front door, and only those who truly wish to be AMERICANs are wanted!
Arrest and prosecute the Corrupt Elitist Filth who have been using GUBmint as a weapon to silence their enemies, who have fleeced the American Workers and lined their own pockets, who use GUBmint positions to garner wealth and power while selling out their OWN Country!
Email Not Monitored
Email Not Monitored10 hours ago
This is why all our economic puppeteers have driven us to the brink since 1913. They target economic symptoms, and it is precisely because they are either too stupid or too evil to address the causes. The primary cause, of course is their own manipulations. Every tax, every regulation, every law passed to give productivity-destroying unions more power than job creators...it all is ruinous to economic growth. Keynes gave himself the credit for "theorizing" what the West had been doing since at least the 1860s, but his/America's economic policy essentially is designed to print money, hand it out to rich people, and hope that 1 out of 10 will grow the economy to cover the losses of the other 9. Oh yeah, and raise the minimum wage and build some bridges that no cars use...and ensure the Media ONLY talks about those charming, altruistic redistributions of other people's money, but never admit that neither have ever generated even short-term GDP growth. Many disingenuous economists point to the turnaround after WWII as proof that Keynesianism works. But FDR had been practicing this witchcraft since he took office, yet America fell deeper into the abyss. The difference was war. There was a bubble after WWI, also, and well, that worked out so well for us 10 years later. WWII's bump was shorter, so we did Korea. That gave us 10 good years, but then the GDP bills came due, so we needed Vietnam. Ah, but we lost that war, and apparently losing wars doesn't produce a temporary GDP bump. See any similarities with today's Keynesian War on Terror (which we've already lost)?
Tom10 hours ago
The fact that most people cannot get through their heads is this: if you do not create value through invention and creativity, your economy will not grow. Governments cannot grow an economy and neither can the Central Bankers. If it wasn't for the Personal Computer in the 1980s and the Internet in the 1990s, the world economy would have collapsed long ago. Mr. Bernanke and his "helicopter money" did not create a thing. It just created the inflationary housing bubble of 2007, a fitting end to the Bush II Administration. Greenspan did the same thing in the 1990s and we got the tech crash of 2000, a fitting end to the Clinton Administration. The bankers and the government need to cut back on creativity-stifling regulations and allow people to create and invent. That will grow the economy, not bureaucratic rules that tell me how I should tie my shoelaces.
Myrmidon10 hours ago
Our economy is politically rigged to keep business competition down. The big business dogs don't like little small business dogs nipping at their ankles, so they pay the corruptionist politicians to grow the government and encourage it to make many regulations, the cost of which are passed straight on to the consumer. Meanwhile, little fledgling competitors that don't have consumers yet can't afford to break into the business, so mediocre companies cruise along without a care for getting better, promoting each others relatives and taking the profit.
Sadly, this restraint of small business means that large numbers of people can't find decent work in the reeking corruption of a stagnant political economy. This is economic inefficiency, and it always occurs when surplus labor and capital cannot, for political reasons, be used to create wealth. Once again, the reason for this inefficiency is because politicians have conspired with criminals to restrain healthy competition.
These bankers are nothing but corruptionists. What they want is cheaper and poorer wage slaves poured into the stew for the political economy that they represent to exploit. Adding these people to a political economy will just create more and deeper poverty, as the deliberately idled workers compete to see who will take the biggest wage decreases. the few will do very well with untrammeled immigration while the many will become very poor.
Anna11 hours ago
The drive for one world gov in other words the NWO started with the bankers. What a joke to talk about inflation...they control inflation. Helps them, confiscates the value of our money. I would translate this as implement our demands or else we will crash your economies. Interesting they point out Japan particularly since they are steadfastly refusing to import Muslims. Bankers are demanding "immigration reform". On the one hand native populations are supposed to not have babies to protect the environment. Then they tell us we have to flood our countries with third world migrants BECAUSE we aren't having babies. We are supposed to implement "structural" changes to boost productivity in growth?
This article is living in a trance/MATRIX BS that amounts to do what we want, i.e. commit suicide culturally, kill the middle class (bled to death to subsidize the cheap labor they want) or we will collapse your economy.
The unconstitutional Fed (a private banking cartel, half of the banks FOREIGN) should be abolished. These people are EVIL. Sick of their controlled shills in media passing on the drivel like it means something. The only meaningful information in this article are their very real threats.
nemisis5 hours ago
Why give banks QE the money when the squander the billions and trillions for a small few. One way is to give QE to the people directly check that are productive in society. Instead we give corporate welfare to the CEO's that are no better than you or I when it comes to work experience.
Stop using the top town approach. It does not work. Throw money from the top down.
Use the bottom up approach. Throw money to the people that really need for people that have kids. This will help divert the immigration issue of tomorrow and consumer spending. Only reason to bring in immigrants is to fix a quick approach to the main issues
Pyronaught11 hours ago
"It requires deficits aimed at, and conditioned on, generating inflation. The deficits must be seen as financed by future inflation, not future taxes or spending cuts."
In other words, these idiots want governments to keep spending money they don't have on ineffective stimulus and other forms of government waste with the idea of making every last person pay for it through increasing inflation so that politicians don't have to sign off on tax increases or spending cuts-- both of which are unpopular with voters. Government prints more money to cover its never ending spending, prices go up, and the dumbed-down sheep just think prices increases are a natural phenomenon rather than driven by the Feds debasing of currency. Best I can tell, that idea has already caught on.... been doing it for decades now.
Charles11 hours ago
When individuals borrow so much money they can't pay it back they have to declare bankruptcy.
When financial institutions get carried away with bubbles and schemes they get bailed out by the governments?
I don't believe in perpetual motion and I don't believe in creating free money out of thin air.
Governments, financial institutions, and businesses have to learn to live within their means just as ordinary citizens do.
Guess the trick is how to regulate sanity when so many cheats are already so well established and institutionalized.
Anna12 hours ago
Except it's not "our" money. It's the Manipulator's money. The US dollar doesn't belong to America. It belongs to The Federal Reserve; a privately owned business and run by private families who are a group of Investors (in nations, governments and the world's economy) They want 2% return on their investment not 1%. Their plan is to manipulate an illusion. Their paper money is worthless paper. Their coins are lead, aluminum and worthless. They're brain washing people to go all plastic cards to save the cost of printing, storing, security transporting, counting paper and aluminum. No human errors giving change, no hoarding paper and aluminum. The final illusion: no "cash", numbers only. Stored and moved in split nano seconds on computers at your swipe, tap, or click. And the Federal Reserve can sabotage, wipe out, ruin, remove, change your numbers or not allow you to access nor transact, those numbers (money, dollars, one world currency, stock, savings) for any reason they, the government, decides or creates new laws to do so to further manipulate it's enemies into poverty and dependance. Oh yes, you will support the private Investor families. Because they'll decide when your paper and aluminum isn't worth what they allowed.
Dennis12 hours ago
In Germany, England and America through the old system Fractional Reserve banking for ever into the past has served bankers to enslave humanity. Note the details that caused the England vs France one hundred years war, 1337 to 1453 (?) Bankers cause wars for their profit. Now in the 21 century derivatives are like a casino for bankers that have caused a 552 Trillion dollar wager that will lose. Where is the Glass-Steagall act now. Bill Clinton did away with it. These bankers want to enslave humanity with, "the world cannot do without us. Bail us out". NO. Horse manure. Watch and see many banks go under and out of business. The US Congress must rescue America. Cancel the 19 trillion dollar debt, jail the banker gangsters and create a currency that is not manipulated by central banker gangsters in New York City.
marcel12 hours ago
Reuters' Howard Schneider “to structural changes to boost productivity and growth in the U.S. and Europe.”
Zerohedge - "It May Take A Massive Program, Large Enough To Shock Taxpayers" - The Jackson Hole Post-Mortem
At present when you aim for naked ‘productivity boost’, this can only mean and can only involve more or a higher rate of robotization on the workplace floor, because of the technology progress that has degenerated the job slice of (competitive, viable) investments.
Also, aiming for ‘growth’ only means more CO2 output,
which triggers higher taxation because of international treaties.
So the true problem that should be addressed, in my book, is this, how dumb are these so-called ‘economists’ exactly?
‘Boosting the economy’, which in present terms can and should only mean ‘boost employment’, because in an economy where the hunt for yield has obviously saturated,
any (real and competitive) growth to be hunted for through financial sectors can only be a mirage, for that facts of the data of the results show, hunting yield through ‘front running’ has already completely emptied the sea of possible (noteworthy) possibilities (hence QE subsidy to save bank employment).
Thus, the only trigger left for economic ‘growth’ and ‘employment boost’ that is left, somehow inevitably means investing in negative yield, loss giving employment (are you still with me).
What? ‘loss giving employment’? What the hell is that.
‘Loss giving employment’ is either QE to the balance sheets of the financial sectors and their loss giving bonuses, manned by loss giving money managers in institutes that should have gone belly up because of their losses,
you QE into environmental investments, where this injection into labour and infrastructural environmental projects, i.e. cleaning up your environment not by CO2 taxing but by actual sweat of the eyebrow,
where QE into environmental investments is actually a true environmental tax policy that taxes dead capital bubbles stacked on balance sheets in the financial sectors and at the ECB now (and indirectly promoted by the FED who will adopt ECB direct policy soon it appears),
through ‘asset capital inflation’ or ‘dead equity inflation’, to be leveraged for equity that is called ‘jobs’.
This newly minted ‘environmental jobs’ equity is actually the synthetic derivative of non performing (negative performing, loss generating) balance sheets asset stripping.
Try the math.
(Are you still with me)
Cranky guy12 hours ago
These ivory tower clowns just don't get it. The cause of the problem is the very solutions they are talking about. Why is growth so lackluster? One word answer, confidence..
Does hearing that Washington thinks they need to spend nearly a trillion dollars to jump-start things inspire businesspersons to invest their hard-earned money in growth? Of course not. They sit back, tread water and wait to see what happens. When nothing basically results, they look for what opportunities come along and continue treading water.
When governments pile new rules on top or other new rules, you don't expand until you figure out what said rules do to you. Then you see if you can still make a buck, and plan accordingly. In extreme cases, like coal, you give up. This is NOT encouraging to growth.
jrnhkkdo6 hours ago
A couple of thoughts: Japan's constant rhetoric on upping its immigration policy is complicated by a structural issue that should be obvious to everyone: the language barrier. It takes a special kind of immigrant to tackle learning the Japanese language in a serious way, and those people are in a minority. Second, all the central bankers can think of and allude to is more deficit spending...that's all they have, and that is a major cause of the problem we already have. No one wants to even whisper the idea of seriously getting back to an asset based currency system (remember Bretton Woods?) It would be bitter medicine, BUT they want to talk long term, that would be long term.
Turn or Burn
Turn or Burn13 hours ago
As I sit by the the many railroad tracks that cross Arizona that originate at the docks in California and view 100's of trains loaded with products day in and day out 365 from China I have to ask how does this help make jobs in america? How does this give one pride of work and accomplishment to take on debt of homes and cars made in America? So we get shelves stocked to the ceiling at Wal Mart at great prices all made in China. And it's a known fact that 85% of America Shops at Wal-Mart and I ask myself does this really save me the money to take on the payment of a Home or Car? I would think some but really are we talking the boost to buy a home or any major purchase? Globalism is a nice Utopia but it seems to have some major setbacks for everyone involved.
Scott13 hours ago
I'm not sure what I find more ridiculous: the press or these so-called experts. First of all, the prss has been telling us for almost 9 years that the economy is doing better, but regular people can see for themselves that it is not. Next, the article goes on to say "Fiscal policy was not on the formal agenda for the conference....". But if this group of experts truly is concerned, why wouldn't fiscal policy be on the formal agenda? And there was this: "One of the central worries is that households and businesses have become so cautious and set in their outlooks - expecting little growth and little inflation - that they do not respond in expected ways to the efforts central banks have made." I guess that means that we simple people simply can't see the Emperor's new clothes. And now that our debt is twice what it was 10 years ago, they want to take on more debt, but only based on the notion that "the deficits must be seen as financed by future inflation, not future taxes or spending cuts". Again, the Emperor's new clothes. What a load of sh!+.
Todd J8 hours ago
When the economies falter back in 2008 and onward, the Central Banks create QE and bought Governments Bonds to force the private sector to take more risk taking and more debt by the private sector. Now the private debts are about to falter so Central Banks are buying private debt but Central Banks can never buy enough corporate debt because the private sector can always create more bonds and stocks. There is nothing to stop the private from creating more debt and stocks as long as there is a buyer. I think Central Banks are starting to figure that they cannot buy all the debt so Central Banks are going try to blame governments for not deficit spending but even governments can spend only so much. I think the trigger will be when Central Banks and government start blaming each other and do nothing that is when collapse will start. Give this 2 to 5 years.
Ken8 hours ago
This is what happens when you invest in government and infrastucture.
You get stagnation and near zero growth. Government does not create wealth, it destroys it. The US spent massively on infrastucture over the last 8 years and what do we have to show for a 10 trillion in our debt? Sorry, but the right solution was to slash taxes, and get the private sector economy moving again. We should have slashed government spending, and let those that work for earn the money KEEP it.
Instead we made everyone poorer with these democrat party, socialist ideas. More of the same will lead to Venezuelan like results. The central banks are running out of other people's money to support the welfare states.
jim14 hours ago
We can keep regulating businesses to death and see if that will work some more? IN the past 5 years all of 3 new banks have opened in this country while hundreds have closed under the volumes of new regulations. And yet we are poised to elect a leader that will do more of the same and expect different results. Maybe, just maybe this is not a good idea and for once how about letting the free market have a shot at this without 10 million regulations.
RH14 hours ago
Interesting that the media and this Administration think everything in the economy is going fine and all the people that like this President smile and feel proud. Anyone who just studies a bit on their own can see the world has MAJOR economic problems as does this country. No doom and gloom from me just a reality check. Their solution will be a one world order, one world economy and one world currency. Perhaps even followed down the road with a one world religion. its not an accident that we are here now. Just ask Mr George Soros? This is exactly what they want and Americans are to busy playing video games, watching TV and getting ready for football. They honestly have no clue.......
tony9 hours ago
Socialist economics does not work except for those at the top of the pyramid. The Keynesian model is backwards and assumes a backwards insane stance in production. ( break a window then sell a new window - This is supposed to make things better?)
This has been proven false many times. The Keynesian model assumes all demand is equal, it is not. Demand by government is destructive to wealth as it robs wealth to pay for it's largess. The only way out of the global depression is for government to get out of the business sector. One size has never fitted all and the current government structure is filled with gratuities and kickbacks of infinite variety. This system robs people blind and stifles the economic engine of free enterprise. Get government out of the way and things will right themselves, with Government be prepared to sink even further into the quagmire of socialism. Check Venezuela.
ImaHippyBurning9 hours ago
And the Braindead Leftists who sat with their thumbs up their collective Asssses as they supported Barak HUSSEIN's economically disastrous monetary policies to take an already bad debt problem and tack on another historic $9+ TRILLION that your kids, kids, kids kids will not be able to come out from under!
The reset is fully underway as I and many others said 8 years ago when they elected The Manchurian and still they clamor for another filthy corrupt GUBmint slob called The Clinton Mafia to further destroy the american Dream!
? ? ? ...
? ? ? ...9 hours ago
? Excuse me, the price for one can of soup, just went up 25¢, ok, so that is 1 times 20 cans, times 20 other brands, times 20 other stores, times 20 other branding stores, time 20 other states or provinces, time 20 other countries, 25¢ a can, not 1 ¢ or 2 ¢ or 5 ¢, plus,
? Now theses shops are pulling new stunt, 3 for 10$ , but if they were already 2.99$ , then what the frig deal is that, if you round off to the near nickel or dime, and who earns that lost penny per can, Or worse, they never were 2.99$ they were 2.00$, and marked up to sell at 2$ and even at that they are only worth 99¢
? And that is of most daily items up 25 ¢ times billions of items sold just under that 99¢ value minus the lost penny that goes to the next bidder dealer,
? As for banks, they know the capitalized marketing is faulty, an last week there was a splurge to buy in to market shares out of nowhere, which pre-sequals another buy and sell out trend before banks and markers crash, and just in time for the election, to place blame on who ever wins, or loses,
? Ever since they strted selling those currappy Mustangs in the late seventies, you could tell the corruption was bountiful,
? Last chance to save Americanized, vote Trump.
? You can Vote Hillary, but cause of being female, you'll hear nothing but blame blame blame,
? At least with Trump, Hey, it's business, whatever...
Frank10 hours ago
The baby boomers are aging. They represent the largest demographic in population in the developed world. Aging baby boomers downsize they do not go out and buy more things, they buy less of everything.
There will be no major growth driven by consumerism because the population has too few younger people in it to consume bigger, houses, better cars etc.
That is why politicians will never tell you, that they want open borders in order to import consumers from the third world where they have more people than they can feed, house and take care of.
The better solution to boost growth is to 100% eliminate the PERSONAL INCOME TAX.
That will put money in the hands of the younger people who will then spend a large percentage of it on consumer goods and some boomers will feel more secure and spend more as well or wait to downsize life spending habits.
The problem is and always been that the Governments cost too much, spend too much and suck money out of the economy and let's not forget Government produces nothing,
All it does is take money from you the TAXPAYER and redistributes it to the companies owned and operated by their donors.
That's why 80% of all wealth stays in the hands of the few elites who run everything.
Take away the personal income tax and reduce governments ability to keep feeding the insatiable greed of the elites.
Corporate taxes should be maintained but reduced as well to free up capital and take it away from the most inefficient creation in the history of mankind.
The Government !
Brant10 hours ago
The public "reason" for the FED was to temper the frequent economic downturns collapses. It occurred to me the FED is much like the "fight every forest fire" mentality of the forestry service. Doing that left forests full of dry tinder deadfall. When a wildfire does happen, it's all consuming and burns 1000s of acres/square miles. In nature, fire is beneficial. Some seeds require fire to thrive. No fire creates environment for disease that wipes out vegetation. Economically, lots of little downturns are much better than one all consuming collapse that wipes out everyone.
Richard11 hours ago
Reduce the oppressive and largely ineffective regulatory burden placed on business and potential entrepreneurs. Even in the US mortgage area, the Federal regulations seem to be one sided and ineffective. I understand from my banker friends that zero or tiny deposit mortgages are coming back into the market and that soft pressure is being exerted on the mortgage industry to make loans to people who have questionable ability to repay them, especially minorities. So we are readopting the policies that caused the meltdown less that a decade ago. We need smart regulation not oppressive, ineffective and often counterproductive regulation.
Todd11 hours ago
The bankers have a new reality staring at them, and they can't seem to grasp it. The machines are taking over. That line may sound like some aluminum foil hat stuff, but it isn't. I'm not saying this a sci-fi taking over, but rather we have made machines to do the work of many people who used to do that same work. Because the vast majority of manufacturing is now done by robots, a factory that used to employ thousands, now employs hundreds. When I moved to Florida 35 years ago, I used to have to drive past the sugar cane fields. During harvesting season there were hundreds of workers burning, cutting, stacking, and loading the cut cane onto carts to be taken to the reducing plant. The last time I drove by those same fields there were just 4 people driving the machines that cut the cane, shred the tops and load the cane into huge carts, that when full, were dropped by the machine operator and he would hook up to more carts and keep on going. And, unlike before, that work went on 24 hours a day, with 12 people doing the work of hundreds. The fields were harvested in a matter of days, not weeks. The example is to show that the world no longer needs people to do most of the hard, repetitive work that has been done by hand for thousand of years.
The world's economies are not going to grow if there are no jobs for the masses. That is the new reality. The world's governments don't even want to talk about it, if they even realize what is truly happening. What is needed to get the world's economies going is finding out ways to create whole new categories of jobs, and training for the people to do them. The old days of a high school graduate getting a job where he, or she doesn't have to think and getting a good paycheck are over. What the world is going to do with those same people is the real challenge of the future.
The banks are not equipped to handle what is happening, and they should not be. The idea of central planning of economies worked SO well under Stalin and Mao, that we should be extremely wary of any edicts on the future economies from central banks. The last time any group of banks solved any economic issues was when JP Morgan got all the banking heads in the same room and said they were not leaving until they had stopped the existing recession. They did, and it scared Teddy Roosevelt so badly, that he did his best to reduce the influence of any banks on the US economy. The big difference between Morgan and his bankers and the central bankers of today is the Morgan people had their OWN money in the deal. Today's central bankers are all working with other people's money. Let's see what the central bankers of today would do if it was their money on the line, not just ours.
r12 hours ago
All this talk of stagnation and low wages. But the Obama Hillary Globalist elitests want to keep flooding our country with more low IQ, low skilled workers. Do we not think there is a connection between wage growth and profitability when we have to keep taxing the citizens more and more to subsidize the lazy, when we could force them to work? What if we kicked out all the illegals and stopped the corruption at the H1b program? The libs and establishment republicans just want to keep this train going to pad their own pockets. It's sad to see that the vast population can't or wont think enough to see that Hillary is a full speed ahead vote for this problem to continue.
Ar12 hours ago
You can't seriously expect Japan, the most racist country in the world, to open its borders to a flood of immigration can you? Japanese people still consider you a foreigner even if you look Japanese and your bloodline goes back 12 generations on their soil.
No one wants to say what the real problem is. China. 1.4 billion people trying to enter the international work place and flood the economy, competing with 1.2 billion Indian people competing for both western and Chinese slave labor jobs. That's 2.6 billion people trying to enter a Western market engineered to sustain about 250 million Americans, 100 million Japanese, and 500 million Europeans. Demographically, geographically, and economically, it isn't possible. New wealth has to be created and capitalism defines wealth outside that model. If a nation is not self sustaining without international trade, it should not enter the international market place and its people should not migrate to those economies, because the migration will only dilute the production of wealth, causing global recession, then global poverty.
Joseph12 hours ago
Face it Reuters and Yahoo. The theories of Keynes, fractional reserve banking, central banks, fake money, and above all, CENTRAL PLANNING, have all been a massive failure. These ideas were tried by Roosevelt as part of the New (I mean, Raw) Deal. Result? In the late 30s the US economy STILL had sluggish growth at best and double-digit unemployment. Same as today, except the unemployment rate is fake and masks massive welfare, food stamp use, and former workers on "disability". The solution? FREE MARKETS and REAL MONEY. That's right Reuters and Yahoo. The present system is destined to crash sooner or later.