Greenspan Sees Early Signs of Stagflation
QuestionGirl December 17th, 2007 - 10:10 amAnd so did Actor212………
The U.S. economy is showing early signs of stagflation as growth threatens to stall while food and energy prices soar, former U.S. Federal Reserve Chairman Alan Greenspan said on Sunday.
In an interview on ABC’s “This Week with George Stephanopoulos,” Greenspan said low inflation was a major contributor to economic growth and prices must be held in check.
“We are beginning to get not stagflation, but the early symptoms of it,” Greenspan said.
“Fundamentally, inflation must be suppressed,” he added. “It’s critically important that the Federal Reserve is allowed politically to do what it has to do to suppress the inflation rates that I see emerging, not immediately, but clearly over the intermediate and longer-term period.”
The U.S. central bank has lowered its benchmark interest rate three times since mid-September as a housing downturn, tightening credit conditions, and steep food and energy prices threaten to push the U.S. economy into recession.
But cutting rates can have the unwanted side effect of pushing up prices, so the Fed finds itself in a tricky position of trying to revive growth without spurring inflation.
More at Reuters
December 17th, 2007 at 11:54 am
Even if someone does decide to try to reverse the interest rate increases that have suddenly caused many home buyers to lose their homes it will still be too late for many millions of people that were lied to by inflating appraisals which were then used to obtain higher than needed loans and the adjustable rates that were played down at the time of signing. It is my belief that these mortgage brokers along with real estate agents are the real culprits here. Those that invested in hedge funds that bought the paper that the banks were selling were simply opportunists and I do not feel sorry for them. The banks and other financial institutions that bundled and sold these mortgages are suspect in this swindle. Every day we are seeing more and more people homeless and dropping from the rolls.
December 17th, 2007 at 10:10 pm
Sir Alan “Bubbles” Greenspan. December 17, 2007 (LPAC)–Last Friday, for the first time ever, wheat rose as much as 30 cents, or 3.1% to a price above $10 a bushel. This was double its price from a year ago. The same week, rice also jumped to a record price, as did soybeans and corn. Like wheat, soybeans have also almost doubled in price this year, and, at almost $12 per bushel, are now at the highest price in 34 years. The story of corn, which has been well-told by LPAC, began its price climb toward the end of last year, with the onslaught of the ethanol craze. According to Bloomberg News, as a result of this, American processed cereals producers Kellogg’s and General Mills have already raised prices, while baked goods producer Sara Lee Corp. said it will increase bread prices for the second time in three months. Bloomberg also reports that Japan’s biggest maker of soy sauce, Kikkoman Corp., is planning its first price increase in 18 years.
Headlines are filled with justifications citing a reduction of land under cultivation to drought in various places around the world. While some of these may actually be true–those related to a lack of investment in water management infrastructure, for example–one commodities trader got closer to the truth when he noted that “interest rates have been too low for too long,” indicating the “disaster” was more man-made than natural. This trader, who spoke with Bloomberg News, targetted former Federal Reserve Chairman Alan Greenspan by name, saying that he “kept interest rates way too low,” and started something that can’t be stopped. “Inflation is starting to take over,” he said, “and really, we haven’t seen anything yet.”
December 17th, 2007 at 10:12 pm
War$, Food$, oil$, arm$, narco$, devaluation$, ga$, taxe$, commoditie$, heat$,transportation$ = Inflation + low wages=Recesion
December 17th, 2007 at 10:20 pm
Sir Alan “Bubbles” Greenspan and his priting of dollar machine is leaving inflation. Ben “Helicopter” Bernanke is trying to bailout the bankrupt banks like Citibank, JP Morgan Chase, Wachowia, Merryl Lynch, Lehman Brothers, Bearn Stearns, Golman Sachs, Fannie Mae, Freddie Mac, Sallie Mae, Bank of America, the british banks like Barclay, Royal Scotland Bank, the Swiss Bank UBS, the bankrupt Northen Rock, the French Paribas, the German IKB, Sachen and every bank is dead, broke. The stole the money , the swindle that Alan “bubbles” Greenspan with the Federal Reserve, the Bank of England, the European Central Bank and all the Central Banks with the orders of the Basel bank the Bank of International Settlements who is the Central banks of Central banks prepare to broke the whole world.
Now the Moody , Fithc and others are lowering the credit rates in the debt insurance that is broke.
ANd the pensions of public workers in California with Calpers, in Colorado with Pera, and every pension in the world will be privatized in the hands of the Wall Street, London bankers and Hedge Funds.
My friends, the whole is broke and the collapse of the whole Financial/Monetary System is here.
The food , oil, gas is tooo expensive. Now foreclosures will be less money to pay for clothes, food, education, vacation, and all the expenses.
Less taxes for towns, can create a FISCAL crisis.
We have a financial/monetary/banking/housing/energy/political/foood/inflation/tax/insurance/human/famine crisis.
Bur$atil..
December 17th, 2007 at 10:21 pm
A M E R I C A Homeless 2008.
http://www.larouchepac.com/new.....thank.html
December 17th, 2007 at 10:24 pm
Thank you to Alan “Bubbles” Greenspan and the bankers.
Thanks for:
1. Devaluate our dollar.
2. Oil over 90 dollars.
3. Wheat over 10 dollars.
4. Cooper, zinc, gold, silver, platinum, and very metal be so expensive.
5.Devaluate the bond market.
6.Print all this cheap dollars and endebt the whole country.
7.For silence with the wars.
8. Speculation
9. Financial derivates as CDOs and other bubbles , collapsing now.
10. Thanks Sir Alan Greenspan for leave America homeless, broke, unemployed, hungry, slave working, thanks to SIR GREENSPAN.
December 17th, 2007 at 10:28 pm
Thanks to the US Secretary of Treasure of the USA for:
1. Take over 2 trillions for war$.
2. Lie to American about the “good economy”.
3. To give all the taxpayer money to the cronies in the pentagon and Wall Street for more wars.
4. Leaving America broke, debt, loosing wars, devaluated dollar, broke banks, foreclosures, speculation.
5. To be close to the Federal Reserve, Pentagon and White House to steal all the money of the world and leave the world today in wars, humgry, famine, dollar on the floor, unemployed, civil wars, drunk, drug addict.
My real THANKS to the Federal Reserve, the US TREASURE, the US Pentagon and the US White House.
And the US Supreme Court.
Thanks,
Bur$atil.
December 17th, 2007 at 10:32 pm
Thanks to the reelection of Bush/Cheney.
Thanks to Paulson, Bernanke, Greenspan, Wall Street, the City of London, the Hedge Funds, the Bond market, the speculators, Thanks so much.
Santa must be with them, the rest are homeless, hungry, broke, poor, unemployed, cold, sick, disable.
Thanks to the GREAT AMERICAN like BUSH and the Federal Reserve, the US Supreme Court, the US TREASURE, the IRS, the UN, the CIA, DEA, FBI, FMI, WB, thanks so much. Wow, Thanks , thanks, thanks.
Still watching football, beisball, but not money in my pocket.
Broke , broke America.
And China and India, and the whole world as well.
Is not enough thanks for the War in Iraq.
December 17th, 2007 at 10:33 pm
And more thanks for the famine that is coming all over.
Thanks.
December 17th, 2007 at 10:39 pm
Is a war that we can not win= FAMINE.
Thanks to the bankers and the monopolies.
FAMINE.