We can’t wait until unemployment is where we’d like it to be” or inflation gets “out of control” to tighten credit
The above is a quote from Federal Reserve Chair Ben Bernanke.
Gets worse, Bernanke believes the economy will not dip into another recession, yet of course, unemployment will remain at high levels.
While the Fed will raise interest rates from a record low before the economy returns to “full employment,” Bernanke said officials don’t know when that process will start. The banking system isn’t fully healthy and lenders are “cautious” in providing credit, he said.
“The unemployment rate is still going to be high for a while, and that means that a lot of people are going to be under financial stress,” Bernanke said at the event, part of a dinner hosted by the Woodrow Wilson International Center for Scholars.
Bernanke’s stance is consistent with that of several Fed colleagues. Atlanta Fed President Dennis Lockhart said June 3 that the central bank may need to raise rates even with “unacceptable levels of unemployment,” while Eric Rosengren of the Boston Fed said last month it wouldn’t be “appropriate” to have rates close to zero with the economy at full employment.
Kansas City Fed President Thomas Hoenig, the longest-serving Fed policy maker, is calling for an increase in the federal funds rate target to 1 percent even sooner, within a few months. Traders don’t expect the Fed to start raising rates until the first quarter of 2011, based on futures on the Chicago Board of Trade.
Another influence to raise rates was the markets or investors.
Meanwhile the IMF is demanding nations reduce their debt and U.S. Treasury Secretary Geithner wants the G20 citizens to go shoppin'.
Anything but promoting policies and reforms that will foster job creation.
IMF is Bust - Guess Who Will Pick up the Tab? Wager on DoubleDip
Obama is about to pick up $100Billion tab for the EuroCrisis. This is why Geitner was in Europe last week. It is bad either way.
We could send the fools further by going to the banksters. Trouble is, that now Spanky and the Fed have figured out that the M3 collapse could be bad. What prescience!
So whether the IMF gets Fed or private funds, American small business starves and we lose jobs. The double dip is a sure thing if this scenario unfolds.
where is the link?
It's just an article making an announcement when this was announced a while ago, it's more they completed it...
so where is the track of the IMF funding coming from the U.S.? That would be the news but there is no documentation to make this connection.
The Federal Reserve is opening up lending to foreigners again, I forgot which vehicle it was, I think foreign currency swaps to foreign central banks.
I think the IMF is pure evil at this point. They are clearly on a neo-con agenda, using this crisis to advance it.
If you research out a direct link of the U.S. funding the IMF, specifically this $40 billion that would be news and I hope you would consider writing it up as an Instapopulist...
but check your sources on it, make sure it's accurate in other words if you find something like that.
but this report is more a finalization of previously annouced bail outs.
It is here
not proof of the amount of U.S. funding to the IMF
Here is a WSJ blog post on how funds from the U.S. get into the IMF's coffers.
This is also a Republican latest political thing, all the while they voted against TBTF amendments to do something, derivative amendments to do something, regulation amendments to do something.....
and their amendment to make the IMF accountable to get back the money is supposedly going to disappear as well.
But the point is the U.S. taxpayer is not paying for the Greece bail out directly of the $40 billion from the IMF.
It's more like $4 to $8 billion. I have issues with any funding to the IMF at this point, esp. considering they refuse to demand reforms which caused this mess, i.e. the financial sector, investors, executives and esp. derivatives and instead are all about union busting and wiping out public pension systems.