ROSENGREN SAYS STALEMATE COULD HURT ECONOMY

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    ROSENGREN SAYS STALEMATE COULD HURT ECONOMY

    Eric S. Rosengren, President of the Federal Reserve of Boston, speaking in Vermont as the federal government shutdown entered its second day, said that combination of a tepid economic recovery and prospects of damaging stalemates in Washington contributed to his decision to vote in favor of continuing the Fed’s stimulus efforts at central bank’s policy meeting last money.

    Specifically, Rosengren cited disagreements that have kept Congress from passing legislation, called a continuing resolution, to keep funding the government and the loomingdebt ceiling, which will require Congress to lift the government’s borrowing limit in about two weeks to avoid a technical default.

    “Unfortunately, this remains an area of significant uncertainty, given the debates in Congress on continuing resolutions and potentially allowing the country to default on its debt,” Rosengren told the Lake Champlain Regional Chamber of Commerce in Vermont. “The uncertainties, not to mention the outcomes themselves, threaten to have a collateral impact on the rest of the economy.”

    In addition to holding its benchmark-short-term interest rate near zero, the Fed has been purchasing $85 billion a month in Treasury and mortgage-backed securities a month to lower long-term rates, such as for mortgage loans. The program has helped spur home and auto sales, he said.

    But the job market remains weak, Rosengren said, which also led him to support the Fed’s move to continue pumping stimulus into the economy. He said he is particularly concerned about the decline in the labor force participation rate, or the percent of the population 16 years of age and over that is either working or actively looking for work..

    He said normal retirement of boomers does not alone account for the size of the decline, a sign that the economy is not creating enough jobs. As a result, some workers are dropping out of the labor force because they have become discouraged by the shortage of job offers, he said, “a shortage that has been persisting over an extended period of time,”

    “A significant concern is the longer we have such an elevated unemployment rate,” he said, “the more likely it is that some of those who have left the labor force due to the lack of jobs will simply never return.”

    The main drag on the economy, he said, has come from cuts in government spending at the state and federal level, including automatic federal spending cuts known as “sequestration” that took effect earlier this year.

    “Historically speaking, significant fiscal austerity such as we have recently seen is quite unusual at a time when the economy is trying to recovery from a severe recession,” he said.

    Rosengren also echoed Federal Reserve chairman Ben Bernanke’s remarks after the September meeting, saying the Fed’s actions are not determined by “Wall Street’s expectations of what we might or should do.”

    “Rather our policies need to be consistent with achieving key goals like supporting Main Street’s more rapid return to full employment,” he said.

    http://www.boston.com/community/forums/news/politics/general/rosengren-says-stalemate-could-hurt-economy/80/6832793#post-21022892

     

     
  2. You have chosen to ignore posts from ComingLiberalCrackup. Show ComingLiberalCrackup's posts

    Re: ROSENGREN SAYS STALEMATE COULD HURT ECONOMY

     

    "The main drag on the economy, he said, has come from cuts in government spending at the state and federal level, including automatic federal spending cuts known as “sequestration” that took effect earlier this year."

    “Historically speaking, significant fiscal austerity such as we have recently seen is quite unusual at a time when the economy is trying to recovery from a severe recession,” he said

    Thanks but no thanks for the advice , you bureaucratic tool. The Fed is supposed to be nonpolitical, instead it advocates for more spending, as the good statists they are..

    As George Will recently pointed out, The Fed can no longer be considered separated from politics."A Financial Times column on Yellen, now Bernanke's presumptive successor, described her as "poised to take the tiller of the U.S. economy.

    "Oh? The economy has a tiller? And with it the Fed chairman can steer the economy? Who knew?

    On The Atlantic website, a columnist defends the Fed's recent decision not to follow through on earlier intimations about reducing its monthly purchases of $85 billion in mortgage and treasury bonds. This, the columnist said, illustrates the Fed's admirable "nimbleness."A touch on the tiller here, a nimble reversal there -- these express the fatal conceit of an institution that considers itself capable of, and responsible for, fine-tuning the nation's $15.7 trillion economy.

    As to what Rosengran said, it is absurd. The poor Government suffering from austerity?

    Inflation-adjusted per capita federal spending went up $822.90 from fiscal 2008 to fiscal 2012, according to official data from the U.S. Treasury and the Census Bureau.

    Real federal spending also increased $2437.64 per household between 2008 and 2012.

    In constant 2012 dollars, the federal government spent $3,176,376,470,000 in 2008 and $3,538,446,000,000 in 2012, according to the U.S. Treasury.

    The Government is the be-all and end-all for these zealots.. funny, the trillion dollar stimulus came and went and the economy got worse! Inconvenient truth.


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  4. You have chosen to ignore posts from skeeter20. Show skeeter20's posts

    Re: ROSENGREN SAYS STALEMATE COULD HURT ECONOMY

    The liberals don't get it, and the liberal economists don't get it.  The Federal Government has created a no-win situation.  the patient dies if you cut spending,the pateint dies if you don't cut spending.

    This is where the badly misunderstood and misapplied "Keynsian" economics has led us.  Into an inescapable death spiral.

     
  5. You have chosen to ignore posts from skeeter20. Show skeeter20's posts

    Re: ROSENGREN SAYS STALEMATE COULD HURT ECONOMY

    In response to A_Concerned_Citizen's comment:

    In response to ComingLiberalCrackup's comment:

    [QUOTE]

     

     

    "The main drag on the economy, he said, has come from cuts in government spending at the state and federal level, including automatic federal spending cuts known as “sequestration” that took effect earlier this year."

    “Historically speaking, significant fiscal austerity such as we have recently seen is quite unusual at a time when the economy is trying to recovery from a severe recession,” he said.

    Another leftist Statist mouthpiece heard from...yes, the poor Government is suffering so...

    Inflation-adjusted per capita federal spending went up $822.90 from fiscal 2008 to fiscal 2012, according to official data from the U.S. Treasury and the Census Bureau.

    Real federal spending also increased $2437.64 per household between 2008 and 2012.

    In constant 2012 dollars, the federal government spent $3,176,376,470,000 in 2008 and $3,538,446,000,000 in 2012, according to the U.S. Treasury.

    The Government is the be-all and end-all for these zealots.. funny, the trillion dollar stimulus came and went and the economy got worse! Inconvenient truth.


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    It's like lying for you is second nature, it's your default position when you can argue facts.

     

    How about this fact numbnuts: The economy did an about-face after the stimulus and went from a negative 9% to a positive 2% within two quarters, after the country had been in a recession for over a year.

    I don't expect you to be the sharpest tool in the shed but outright lying to defend your ignorant ideology only shows how despearte you are. Sad really.

    [/QUOTE]

    Just shut your piehole. you have no idea what you are talking about. What you think isn't austerity.  True austerity is the only possible way out of this, and it is not guarranteed to work, and it will be painful.

     

     
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  10. You have chosen to ignore posts from ComingLiberalCrackup. Show ComingLiberalCrackup's posts

    Re: ROSENGREN SAYS STALEMATE COULD HURT ECONOMY

    93% of economists...who were these economists? Were there any conservative economists, or was the usual gang of Government suckups polled?

    Joe Biden said the Obama stimulus economic policy came directly from their "genius" advisor ... Jon Corzine !!

    Lawrence Lindsey, who served as economic adviser to President George W. Bush, argued in a Weekly Standard essay that the proposition made by Obama's stimulus was absurd on its face.

    "Everyone except flacks for the White House knows that the 2009 stimulus package failed miserably to produce the promised results,"

    They made a rock solid promise thta the stimulus would make unemployment under 6%, instead it went up over 10%...but facts dont matter, if you spend a trillion to bribe Dem interest groups, all is well..

     "But even if you buy the White House's argument that the $800 billion package created 3 million jobs, that works out to $266,000 per job. Taxing or borrowing $266,000 from the private sector to create a single job is simply not a cost effective way of putting America back to work. The long-term debt burden of that $266,000 swamps any benefit that the single job created might provide."

    As time passes, the math on Obama's stimulus plan gets worse -- even if you accept the most optimistic analysis of how many jobs it has created.

    In the second quarter of 2012, CBO estimates, somewhere between 200,000 to 1.2 million people have jobs they otherwise would not have were it not for the stimulus. Assuming, optimistically, that the number is 1.2 million, that means each of those jobs cost taxpayers $692,500.

    As time goes on, the maximum number of jobs sustained by Obama's stimulus will decline rapidly. By the first quarter of 2013, it will sustain between 100,000 and 600,000 jobs, says CBO. If it is 600,000, each of those jobs will have cost taxpayers $1,385,000. By the fourth quarter of 2013, the maximum number of jobs it sustains will be 400,000 -- at a cost to taxpayers of $2,077,500 per job.

    It is true that Obama entered office in the midst of a deep recession.

    But, according to the National Bureau of Economic Research, that recession ended in June 2009... Since then, America has been in a "growth" cycle, but a pathetic one. Real gross domestic product growth peaked at 3.9 percent in the first quarter of 2010, and Obama is now in real danger of being the first U.S. president since World War II not to see at least one quarter of economic growth at 4 percent or higher in a first term.

     
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  14. You have chosen to ignore posts from Hansoribrother. Show Hansoribrother's posts

    Re: ROSENGREN SAYS STALEMATE COULD HURT ECONOMY

    The Fed is government sponsored cartel. They are owned by member banks. All they care about is the banking system and their pals in the banks and in the Treasury Department. 

    Not that the way the Republicans are doing it is the way to go, but Obamacare must go, most of it anyway. What the Fed thinks of the kabuke theater in Congress doesn't really matter. If he thinks the stalemate between the House and the President is bad for the economy, what does he think Obamacare is going to do to it when millions of productive people get hit with huge increase in what they pay for health care and health care insurance?

    Frankly I do not know why the President cannot acknowledge that Obamacare is a mess and why he and the House cannot come up with something to replace it. Of course that isn't somethinhg that can be done in a matter of days, but maybe they could just agree to do that and the just pass the CR and the Debt Ceiling. Part of the reason for the stalemate with Obamacare is that it was a totally partisan bill that did not see the light of day before it was rammed down our throats.

     
  15. You have chosen to ignore posts from RSF4Life234. Show RSF4Life234's posts

    Re: ROSENGREN SAYS STALEMATE COULD HURT ECONOMY

    In response to Hansoribrother's comment:

     

    The Fed is government sponsored cartel. They are owned by member banks. All they care about is the banking system and their pals in the banks and in the Treasury Department. 

    Not that the way the Republicans are doing it is the way to go, but Obamacare must go, most of it anyway. What the Fed thinks of the kabuke theater in Congress doesn't really matter. If he thinks the stalemate between the House and the President is bad for the economy, what does he think Obamacare is going to do to it when millions of productive people get hit with huge increase in what they pay for health care and health care insurance?

    Frankly I do not know why the President cannot acknowledge that Obamacare is a mess and why he and the House cannot come up with something to replace it. Of course that isn't somethinhg that can be done in a matter of days, but maybe they could just agree to do that and the just pass the CR and the Debt Ceiling. Part of the reason for the stalemate with Obamacare is that it was a totally partisan bill that did not see the light of day before it was rammed down our throats.

     



    So it wasn't passed by the house?

     

    It wasn't passed by the senate?

    It wasn't deamed constitutional by the supreme court?

    Obama didn't beat Romney who had repealing at as part of his main platform?

     
  16. You have chosen to ignore posts from Hansoribrother. Show Hansoribrother's posts

    Re: ROSENGREN SAYS STALEMATE COULD HURT ECONOMY

    In response to RSF4Life234's comment:

    In response to Hansoribrother's comment:

     

    The Fed is government sponsored cartel. They are owned by member banks. All they care about is the banking system and their pals in the banks and in the Treasury Department. 

    Not that the way the Republicans are doing it is the way to go, but Obamacare must go, most of it anyway. What the Fed thinks of the kabuke theater in Congress doesn't really matter. If he thinks the stalemate between the House and the President is bad for the economy, what does he think Obamacare is going to do to it when millions of productive people get hit with huge increase in what they pay for health care and health care insurance?

    Frankly I do not know why the President cannot acknowledge that Obamacare is a mess and why he and the House cannot come up with something to replace it. Of course that isn't somethinhg that can be done in a matter of days, but maybe they could just agree to do that and the just pass the CR and the Debt Ceiling. Part of the reason for the stalemate with Obamacare is that it was a totally partisan bill that did not see the light of day before it was rammed down our throats.

     



    So it wasn't passed by the house?

     

    It wasn't passed by the senate?

    It wasn't deamed constitutional by the supreme court?

    Obama didn't beat Romney who had repealing at as part of his main platform?



    I am not saying it is illegal. I am attempting to explain why it is the subject of attack. 

    Do you think it is a smart thing to do to pass a 2000 page bill and not know what is in it???

    The input into the bill was partisan.

    In the only attempt to include input from Republicans, Obama basically told McCain to shut up because Obama won the election.

    The method to pass the bill was a partisan procedure to skirt the rules of the Senate so that 60 votes were not required.

    Not one Republican voted for it. 

    I am attempting to explain why the opposition is not going away any time soon. Compare what happened with Obamacare compared to Medicare and Medicaid under Johnson in 1965. 

     
  17. You have chosen to ignore posts from andiejen. Show andiejen's posts

    Re: ROSENGREN SAYS STALEMATE COULD HURT ECONOMY

    In response to Hansoribrother's comment:

    In response to RSF4Life234's comment:

    [QUOTE]

     

    In response to Hansoribrother's comment:

     

    The Fed is government sponsored cartel. They are owned by member banks. All they care about is the banking system and their pals in the banks and in the Treasury Department. 

    Not that the way the Republicans are doing it is the way to go, but Obamacare must go, most of it anyway. What the Fed thinks of the kabuke theater in Congress doesn't really matter. If he thinks the stalemate between the House and the President is bad for the economy, what does he think Obamacare is going to do to it when millions of productive people get hit with huge increase in what they pay for health care and health care insurance?

    Frankly I do not know why the President cannot acknowledge that Obamacare is a mess and why he and the House cannot come up with something to replace it. Of course that isn't somethinhg that can be done in a matter of days, but maybe they could just agree to do that and the just pass the CR and the Debt Ceiling. Part of the reason for the stalemate with Obamacare is that it was a totally partisan bill that did not see the light of day before it was rammed down our throats.

     



    So it wasn't passed by the house?

     

    It wasn't passed by the senate?

    It wasn't deamed constitutional by the supreme court?

    Obama didn't beat Romney who had repealing at as part of his main platform?

     



    I am not saying it is illegal. I am attempting to explain why it is the subject of attack. 

     

    Do you think it is a smart thing to do to pass a 2000 page bill and not know what is in it???

    The input into the bill was partisan.

    In the only attempt to include input from Republicans, Obama basically told McCain to shut up because Obama won the election.

    The method to pass the bill was a partisan procedure to skirt the rules of the Senate so that 60 votes were not required.

    Not one Republican voted for it. 

    I am attempting to explain why the opposition is not going away any time soon. Compare what happened with Obamacare compared to Medicare and Medicaid under Johnson in 1965. 

    [/QUOTE]

    Hansoribrother,

    One thing that happened with Social Security, Medicare as well as Medicare Part D is they were passed into law, and as time went on, and feedback came in, several provisions were taken out and several provisions were put in.

    Tweaking Obamacare along the way makes a whole lot more sense then a wholesale repeal of it....just as they tweaked the aforementioned laws/acts.

     
  18. You have chosen to ignore posts from NowWhatDoYouWant. Show NowWhatDoYouWant's posts

    Re: ROSENGREN SAYS STALEMATE COULD HURT ECONOMY

    If Republicans wanted to be a part of Obamacare, which was all Republican ideas anyway, they probably shouldn't have agreed to oppose everything Obama wants in order to make him a one term president and break him.

     

    Funny how no one ever has an answer for that

     
  19. You have chosen to ignore posts from FortySixAndTwo. Show FortySixAndTwo's posts

    Re: ROSENGREN SAYS STALEMATE COULD HURT ECONOMY

    In response to A_Concerned_Citizen's comment:

     

     

     

    Hey, I don't pretend to know everything

     



    BWAHAHAHAHAHAHAHAHAHAHAHA.....

     
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