Finally, something we agree on. REH
----- Original Message ----- From: "Harry Pollard" <[EMAIL PROTECTED]> To: "Karen Watters Cole" <[EMAIL PROTECTED]>; <[EMAIL PROTECTED]> Sent: Thursday, June 26, 2003 2:30 PM Subject: Re: [Futurework] Fed running out of ammonition > Karen, > > These clowns are beyond the wall (where they should stay). > > All that forcing interest rates down will do is to build up future > problems. The dollar is considered by foreigners to be sound enough to > invest in. Should that change, the only way to get 'em back will be to > raise interest rates. > > That will be fun. > > To think that anyone feels that political control of the economy is better > than allowing the free market to do it. > > Harry > > --------------------------------------------------------- > > Karen wrote: > > > > >Ammo low, Fed eyes last bullet to lift economy > > > > > > > >Federal Reserve's expected interest-rate cut this week may add modest > >stimulus but is not without risks. > > > >By Ron Scherer | Staff writer of The Christian Science Monitor, June 23, > >2003 edition > > > > > > > >NEW YORK - For the past 2-1/2 years, the Federal Reserve has lowered > >interest rates to stimulate the economy. The result has been a virtual > >gully washer of money in the economy. But now, as the Fed contemplates yet > >a 13h cut, it has become much more difficult and complicated to pump up > >the economy by lowering short-term interest rates. > > > > > > > >So, when the Fed meets Tuesday and Wednesday to review the economy and > >make a decision on interest-rate policy, it will have to consider why this > >rainstorm of cash hasn't done the job. > > > > > > > >If business won't build new factories at these low interest rates, will > >even lower rates make any difference? And, as interest rates get closer to > >zero, Fed chairman Alan Greenspan will have to ponder if he needs to keep > >some ammo in his pouch in case he needs it later this summer. > > > > > > > >"The Fed's decisions are becoming increasingly difficult," says Jon > >Blumenfeld, US Interest Rate Strategist at Commerzbank Securities in New York. > > > > > > > >Despite the difficulties, Fed-watchers expect Alan Greenspan and his > >fellow bankers will reduce rates yet again - probably by a quarter of a > >percent. But, a half a point is not out of the question. > > > ><http://www.csmonitor.com/2003/0623/p02s01-usec.html>http://www.csmonitor.c om/2003/0623/p02s01-usec.html > > > **************************************************** > Harry Pollard > Henry George School of Social Science of Los Angeles > Box 655 Tujunga CA 91042 > Tel: (818) 352-4141 -- Fax: (818) 353-2242 > http://home.attbi.com/~haledward > **************************************************** > > ---------------------------------------------------------------------------- ---- > > --- > Outgoing mail is certified Virus Free. > Checked by AVG anti-virus system (http://www.grisoft.com). > Version: 6.0.489 / Virus Database: 288 - Release Date: 6/10/2003 > _______________________________________________ Futurework mailing list [EMAIL PROTECTED] http://scribe.uwaterloo.ca/mailman/listinfo/futurework
