Ben Bernanke says US economy 'close to faltering'

[Gerald]

US Federal Reserve Chairman Ben Bernanke has told Congress that the US economy is "close to faltering" and more action may be needed.Giving testimony to the US legislature, he said the Fed was "prepared to take further action as appropriate" to bolster the recovery.His comments come after the Fed already decided to shift $400bn of investments into longer-term government debt.Stock markets responded positively, with the Dow Jones rallying over 1%.But US markets fell back again somewhat in afternoon trading.

China 'blocking'

He said the switch into longer-term government debt announced last month - dubbed Operation Twist - was the equivalent of a half-percentage-point cut in interest rates, and gave a "meaningful, but not an enormous support to the economy".But he warned that the eurozone debt crisis, as well as overly hasty spending cuts by the federal government, risked undermining the US recovery.When asked what additional action the Fed might take if the economy continued to weaken, he reiterated policy options he has laid out in past speeches:giving clearer guidance as to how long interest rates will be held close to zero, and in what circumstances they would rise;increasing "quantitative easing" - the Fed's purchase of US government bonds and other debts;cutting the interest rate paid on excess cash that the banks hold at the Fed.But he added that the US central bank's monetary policies were "no panacea".

http://www.bbc.co.uk/news/business-15173683



Note: 4 October 2011 Last updated at 19:24 GMT

[magicstix]

"Come now, you rich, weep and howl for your miseries that are coming upon you! Your riches are corrupted, and your garments moth-eaten!"

"Wail, you who live in the market district; all your merchants will be wiped out, all who trade with silver will be destroyed!"

"They will throw their silver into the streets, and their gold will be like refuse..."

:D

[Rockstar]

"Come now, you rich, weep and howl for your miseries that are coming upon you! Your riches are corrupted, and your garments moth-eaten!"

"Wail, you who live in the market district; all your merchants will be wiped out, all who trade with silver will be destroyed!"

"They will throw their silver into the streets, and their gold will be like refuse..."

:D

Reckon I'll be hanging around the trash can then

[magicstix]

Reckon I'll be hanging around the trash can then

Heh, gold only has value because we assign it one. It's not an inherently useful metal in and of itself, nor is it particularly rare. It's every bit a fiat currency as something printed on paper.

[Castout]

Great news, it has been boring. Tis is an interesting times we live in.

Political, economical and global climate crises are coming our way HARD and FAST!!!

I expect mankind to fail to live up to the challenges. We're good at failing. And then to make excuses why we didn't fail. Oops.

http://img.photobucket.com/albums/v319/roh_kudus/evolution4funcustom.jpg
||

http://img.photobucket.com/albums/v319/roh_kudus/Evolution.jpg

[JU_88]

Yep its no big secret that there is a storm coming, the economy is about to fall on its ass. Its not a question of 'if' but 'when'.:down:
the only real question I have is how bad is it going to be? many seem to suggest it will be far more serious than 2008 this time around.
Might be a good time to stock up on tinned food.
@Cast out, I dont think anyone will be celebrating when they lose there jobs, savings and security. we talking about possible instabillity on a global scale, I dont think anyone is safe.
I only hope a better system will rise from the ashes.

[Skybird]

Heh, gold only has value because we assign it one. It's not an inherently useful metal in and of itself, nor is it particularly rare. It's every bit a fiat currency as something printed on paper.
People from at least two thiosuand years beg to disagree with you when you think state'S money is as precious or worthless as gold. That does not mean that gold has a nature-given value, but it has proven to be a more trustworthy value asset to trade with int imes of crisis, than printed paper money. That is why owning solid gold and owning a piece of paper with options for gold, are not the same.

There were times both in Germany and the US, when the states were so threatened by the lacking trust in their inflation money that they simply prohibited the trading and possession of gold. Happened to be the case in the USin the first half and the middle of the past century, happened to have taken place in Germany until the mid-30s of the last century. The police raided homes to search for private stocks of gold!

If the crisis has become worse enoiugh.- You will not be able to trade anything for your stocks or your 500,000,000 thaler-notes - while with gold, silver and jewelry, you will still be able to get somethign for them. These items are labelled a crisis asset because they can hold out for longer than printed notes, stocks, coins (as long as they are not made of gold or silver themselves), and fonds papers. All these valued papers die first. Gold also can die - but it dies last of them all.

Go and find somebody really old who still has memories of the big inflations in Germanyx and America. Maybe then you understand what the difference is between paper, and gold.

[Castout]

Yep its no big secret that there is a storm coming, the economy is about to fall on its ass. Its not a question of 'if' but 'when'.:down:
the only real question I have is how bad is it going to be? many seem to suggest it will be far more serious than 2008 this time around.
Might be a good time to stock up on tinned food.
@Cast out, I dont think anyone will be celebrating when they lose there jobs, savings and security. we talking about possible instabillity on a global scale, I dont think anyone is safe.
I only hope a better system will rise from the ashes.

I never said about celebration and indeed nobody is safe.

I watched Home on my tv last night, downloaded from youtube.
The problem is massive. The world is facing water shortage, climate instability induced starvation, rising sea level as the water temperature keeps rising. Mankind is facing its biggest challenges it has ever seen and I don't think we are ready for any one of them. The balance of life and the ecosystem are already ruined thanks to us.

Hell we'll end up going to war against one another I bet.

Mankind is facing a global crisis, a planet wide political, economic, climate and ecological crisis all in one.

And I shudder because our kind is known to prefer to show our worst aspect in times of severe crisis. We are largely irrational, extremely selfish, foolish and primal.

[Jimbuna]

It could well be worse than that of 2008 but hopefully everyone will learn from it this time because I don't think they learned much from 2008.

[Ducimus]

Might be a good time to stock up on tinned food.
.
:hmmm: you know, stocking up on food is a common practice here in Utah. I should start doing that myself. Maybe i'll order a few cases of MRE's instead of this bulk food in the sealed buckets i see at all the major supermarkets. :O:

[kraznyi_oktjabr]

:hmmm: you know, stocking up on food is a common practice here in Utah. I should start doing that myself. Maybe i'll order a few cases of MRE's instead of this bulk food in the sealed buckets i see at all the major supermarkets. :O:"Three Lies for the Price of One": it's not a Meal, it's not Ready, and you can't Eat it. :O:

[soopaman2]

The fed is not a federal owned facility. It's private. Meaning they look out for their own interests before the interests of the people they supposedly serve.

Would work well if they had actual customers like a privately owned business. You can't just take your business somewhere else like any other enterprise.

No, the fed.... It's got a mandate, and it can strangle the world. Oil is traded in dollars, as well as other commodities. Bennys manipulation of our fiat currency is damaging the world. When you deflate the dollar by printing more (quantative easing) you make it more expensive for fuel, food and staples all over the world.

All world currencies should revert to sterling or gold. It would stop all these games that have damaged us, and made so many people suffer.

Something hard to show for paper, "put your money where your mouth is" so to speak, as of now, most currencies in the world is fiat, and nothing more than glorified IOUs.

Hyperinflation is a great word here... That is the extreme effect of Benjamins games. Weimar Germany: your daily pay had half the value before you went home. Zimbabwe, a bundle full of 100,000 bills for a loaf of bread..

But go ahead, maintain the status quo, your 401ks are safe so are your pensions, the geniuses who came up with mortgage derivatives (that crashed the housing bubble) will take great care of it, they got your union pensions as well... And soon enough the SSI we all paid into our entire lives...

:timeout:

Just kidding, it's ok. Everything will be fine. Right Benjamin?

[Jimbuna]

I'd make do with a few cases of beer

http://img682.imageshack.us/img682/2884/drunkcob.gif

[soopaman2]

I'd make do with a few cases of beer

http://img682.imageshack.us/img682/2884/drunkcob.gif

Sadly the needs of a man are far simpler than the needs of a nation. Beer helps you forget.

Bread and circus Mr.Buna, bread and circus. Until the goth barbarians tell the western roman emperor he isn't needed anymore.

(goth=germans by the way, great conquerers they were)

[Ducimus]

"Three Lies for the Price of One": it's not a Meal, it's not Ready, and you can't Eat it. :O:

HA! nice.. but there not ALL that bad.. only certain ones. You always know which MRE's are the worst... they're the ones that are left in a nearly empty box after everyones already grabbed theirs. This "winner" was usually, Omelet with ham slice if memory serves correctly.

Believe it or not, my personal favorite was corned beef hash, but ONLY because of the little bottle of tabasco sauce that came with it. That little bottle turned what was basically Alpo dog food in a pouch, into something not only edible, but slightly tasty.

[Gerald]

I'd make do with a few cases of beer

http://img682.imageshack.us/img682/2884/drunkcob.gif Why am I not surprised, :DL

[Jimbuna]

:DL