It seems that if the Washington politicos fail to reach a resolution on preventing a fiscal crisis, the biggest loser will be the FED. The U.S. central bank is on record as pushing for continued monetary ease as long as unemployment remains unexpectedly high. The recent definition as forwarded by some Fed Governors and Presidents is around the 6.25% rate of unemployment. If the fiscal cliff is realized, projections are for the jobless rate to rise to between 9.5 and 10.0%. The question for the global financial markets will be: What is the FED‘s response going to be in an effort to counteract the renewed contraction in the U.S. economy?
Posts Tagged ‘Nout Wellink’
Notes From Underground: The Biggest Loser If The Fiscal Cliff is Activated? Ben Bernanke’s Fed.
December 3, 2012Notes From Underground: The Brothers GRIMM and other fairy tales
July 14, 2010We have word from Europe that the stress tests done on their regional banks will be fair and transparent. Do we believe that to be possible? No way, no how. The stress tests will be dependent on the questions asked and if the DESIRED OUTCOME is already known, then the questions are, of course, self-fulfilling. Right or wrong, the elites of Europe are too vested in the EU project to let any genuine tests bring this “edifice” tumbling down. Helmut Kohl often opined that the major purpose of the EU was to secure the blessings of peace for its children and grandchildren. This dream will not die easily–noble ideas seldom do.