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Thread: G.O.P. Urges No Further Fed Stimulus

  1. #1
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    G.O.P. Urges No Further Fed Stimulus

    [URL="http://www.nytimes.com/2011/09/21/business/economy/gop-urges-no-further-fed-stimulus.html?_r=1&hp#&wtoeid=growl1_r1_v2"]www.nytimes.com[/URL]

    Wow!

    These guys have no freakin' shame. They want a Republican to win the Presidency so badly that they are willing to force the economy into another recession.




    [QUOTE]

    Even though the financial markets have been counting on the Federal Reserve to take action, Republican Congressional leadership sent a letter to the Federal Reserve chairman on Tuesday evening urging it not to engage in further stimulus.

    The letter was sent in the midst of a two-day meeting in which Fed officials are widely expected to undertake policies to lower long-term interest rates. That move would be intended to loosen up credit in hopes of promoting growth. The meeting ends Wednesday, and the Fed is expected to release a statement Wednesday at 2:15 p.m.

    [B]“We have serious concerns that further intervention by the Federal Reserve could exacerbate current problems or further harm the U.S. economy,” said the letter, signed by four of the top Republicans in Congress: Mitch McConnell of Kentucky, the Senate Republican leader; Jon Kyl of Arizona, the Senate Republican whip; House Speaker John Boehner of Ohio and House Majority Leader Eric Cantor of Virginia.[/B]

    The Fed’s chairman, Ben S. Bernanke, has not said further stimulus was in the works, but economists and analysts have repeatedly asserted that they believe the central bank will announce more easing.

    “I just don’t think the Fed will sit idly as momentum fizzles in this recovery,” said Dana Saporta, a United States economist at Credit Suisse.

    Minutes from the Fed’s latest meeting revealed sharp dissent within the group of policy makers, so further stimulus is not necessarily a sure bet.

    As the Republican letter notes, economists are divided on how much the move would help the stalled recovery. The Fed, after all, has tried several rounds of monetary stimulus in the last four years.

    Republican Congressional leaders expressed not only skepticism that further easing would improve the recovery, but also concerns that such actions might be damaging.

    “Such steps may erode the already weakened U.S. dollar or promote more borrowing by overleveraged consumers,” the letter from Republicans said.

    [B]Many economists, however, are unconvinced by these risks and argue that a weakened dollar would be good for the country because it would make American exports more attractive. [/B]

    With unemployment at 9.1 percent and Congress unable to agree on fiscal policies that might encourage job creation, many advisers have been calling on the Fed to continue using whatever ammunition it has left.

    The Federal Reserve is an independent body whose decisions do not have to be ratified by the president or Congress, and efforts to influence monetary policy are discouraged to maintain its credibility.

    [B]“Even if I agreed” with the Republican letter, Tony Fratto, a former adviser to President George W. Bush, wrote in a Twitter post, “I’d still disagree with the effort to put public political pressure on Bernanke.”[/B]

    Over the years, there have been many efforts by members of both parties, from both the White House and Congress, to influence Fed policies, according to Allan H. Meltzer, a political economy historian at Carnegie Mellon.

    Less than a year ago Michele Bachmann, a Minnesota congresswoman who is running as a Republican presidential candidate, sent a letter to Mr. Bernanke urging him to refrain from the last round of stimulus, which the Fed ultimately decided to do.

    In recent months other Republican presidential candidates have stepped up their attacks on Fed policy, with Rick Perry, the governor of Texas, calling further easing “treasonous.”

    Fed critics have said they are merely trying to counter pressure from Democrats for the Fed to do more.

    “This is the most politicized Fed we’ve ever had,” Mr. Meltzer said. “They’ve been doing the Treasury’s work for quite some time, buying things like Treasuries and bonds. It’s no surprise that there’s political pressure coming from the other direction.”

    [B]The Federal Reserve was meant to be independent so that it would be shielded from short-term political interests, and Fed officials have repeatedly said they are unmoved by external political pressures.[/B] A Fed spokeswoman acknowledged receiving the letter on Tuesday evening but she declined to comment further.

    Appearing to cave to political interests — on the left or the right — could compromise the Fed’s authority and jolt markets even more than a popular or unpopular policy decision.

    If anything, Federal Reserve members seem to be trying show their ability to exert their own influence. Traditionally, Fed officials have refrained from commenting on fiscal policy except in the vaguest of terms, but [B]in an August speech Mr. Bernanke called on Congress to avoid steep spending cuts in the near future. He also gave specific recommendations for fiscal measures to promote long-term growth. [/B]

    [/QUOTE]

  2. #2
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    This is beyond stupid for two reasons:

    1) Further stimulus IS unnecessary and counterproductive.

    2) Even if another stimulus were to be effective, it wouldn't be felt until after the election anyway.

    Nothing to see here (is there anything ever worth seeing in the NY Times?)

  3. #3
    [QUOTE=Buster;4152388][Wow!

    These guys have no freakin' shame. They want a Republican to win the Presidency so badly that they are willing to force the economy into another recession.[/QUOTE]

    :rotfl:

  4. #4
    [quote]The Fed, after all, has tried several rounds of monetary stimulus in the last four years.[/quote]

    The definition of Insanity: Doing the same thing over and over and expecting a different result.

    :dunno:

    :jets17

  5. #5
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    [QUOTE=AlbanyJet;4152513]The definition of Insanity: Doing the same thing over and over and expecting a different result.

    :dunno:

    :jets17[/QUOTE]

    But the last one just wasn't big enough! lol

  6. #6
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    First off this is just fed policy. If there is no demand no one will borrow money anyway. Just like putting more money in the pockets of business via tax cuts will not cause them to hire more employees without demand. It appears to me the GOP leadership is trying to stop lending because it might spur a better economy. It is selfish.

    [URL="http://dictionary.reference.com/browse/economics"]//dictionary.reference.com/[/URL]



    [QUOTE]
    Economics - the science that deals with the production, distribution, and consumption of goods and services, or the material welfare of humankind

    [/QUOTE]


    This can also be described as spending. And the current craze to tell everyone to not spend and to hold fast will just prolong the high unemployment we currently have.

  7. #7
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    [QUOTE=Buster;4152664]First off this is just fed policy. If there is no demand no one will borrow money anyway. Just like putting more money in the pockets of business via tax cuts will not cause them to hire more employees without demand. It appears to me the GOP leadership is trying to stop lending because it might spur a better economy. It is selfish.

    [URL="http://dictionary.reference.com/browse/economics"]//dictionary.reference.com/[/URL]






    This can also be described as spending. And the current craze to tell everyone to not spend and to hold fast will just prolong the high unemployment we currently have.[/QUOTE]

    Who is telling people not to spend? We are just telling the government not to spend more of our money on pointless policy.

  8. #8
    [QUOTE=Buster;4152388][URL="http://www.nytimes.com/2011/09/21/business/economy/gop-urges-no-further-fed-stimulus.html?_r=1&hp#&wtoeid=growl1_r1_v2"]www.nytimes.com[/URL]

    Wow!

    These guys have no freakin' shame. They want a Republican to win the Presidency so badly that they are willing to force the economy into another recession.[/QUOTE]

    this could lead to a fed decision that has no objections unlike the last one that had 3.

    this was a stupid letter in my view even though i don't think there should be more fed action now anyway (the economy isn't weak enough yet)

  9. #9
    the GOP is against rebuilding American infrastructure... Our bridges, tunnels and highways.

    I guess just waiting for them to fall down is another policy choice. It's not my choice but hey that's one way to go.

  10. #10
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    [QUOTE=Trades;4152672]Who is telling people not to spend? We are just telling the government not to spend more of our money on pointless policy.[/QUOTE]

    You are talking about the US government. The Organization that built our giant highway system, built our RR system, educates millions, put a human on the moon, built the Panama canal, conquered Iraq in a month, liberated Europe from Nazism, Stared down the USSR, can kill every living creature on the face of the earth if it chose too, etc…

    They should be scared of spending (even though nobody is scared to lend the US government more & more money) because it might cause terrible things?

    Really?

    What do you think this implies to the average American who can see that sales are down at his/her workplace?

    The shortsightedness of this 'austerity' is so stoopid it boggles the mind.

    Get people working before we solve the debt issues.

  11. #11
    [QUOTE=Buster;4152728]Get people working before we solve the debt issues.[/QUOTE]

    Can you explain this in more detail?

  12. #12
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    [QUOTE=bitonti;4152708]the GOP is against rebuilding American infrastructure... Our bridges, tunnels and highways.

    I guess just waiting for them to fall down is another policy choice. It's not my choice but hey that's one way to go.[/QUOTE]

    .

    [QUOTE]
    The single most important thing we want to achieve is for President Obama to be a one-term president.

    ~ Senate Minority Leader Mitch McConnell
    [/QUOTE]

  13. #13
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    [B]The single most important thing we want to achieve is for President Obama to be a one-term president.

    ~ Senate Minority Leader Mitch McConnell [/B]

    well of course - we can't afford more than that. Once he's out, the healing can begin. :yes:

  14. #14
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    Snarkilly good commentary on the "Jobs Bill"

    [QUOTE]
    The president has taken to the campaign trail to promote his American Jobs Act. That's a good name for it: an act. "Pass this bill now!" he declared 24 times at a stop in in Raleigh, North Carolina, and another 18 in Columbus, Ohio, and the act is sufficiently effective that, three years into the Vapidity of Hope, the president can still find crowds of true believers willing to chant along with him: "Pass this bill now!"
    Not all supporters are content merely to singalong with the prompter-in-chief. In North Carolina, a still-devoted hopeychanger cried out, "I love you!"
    "I love you, too," said the president. "But… ."
    Oh, no, here it comes: conditional love. "But, if you love me, you've got to help me pass this bill!" You'd be surprised how effective this line is: I tried it on Darlene in the back of my Ford Edsel when I was 17, and we didn't get home till two in the morning.
    Pass this bill now, or I'll say "Pass this bill now!" another two dozen times! With this latest inspiration, Obama has taken the post-modern phase of democratic politics to a whole new level. "Pass this jobs bill"? Simply as a matter of humdrum reality, there is no bill, it won't "create" any jobs, and it will be paid for with money we don't have. But the smartest president in history has calculated that, if he says the same four monosyllables over and over, a nonexistent bill to create nonexistent jobs with nonexistent money will be yet another legislative triumph in the grand tradition of his first stimulus (the original Dumb And Dumber to the sequel's Stimulus And Stimulusser).
    The estimated cost of the non-bill is just shy of half a trillion dollars. Gosh, it seems like only yesterday that Washington was in the grip of a white-knuckle, clenched-teeth showdown over whether a debt ceiling deal could be reached before the allegedly looming deadline. When the deal was triumphantly unveiled at the eleventh hour, it was revealed that our sober, prudent, fiscally responsible masters had gotten control of the runaway spending and had carved (according to the most optimistic analysis) a whole $7 billion of savings out of the 2012 budget. The president then airily breezes into Congress and in 20 minutes adds another $447 billion to the tab. That's what meaningful course correction in Washington boils down to: [B]seven billion steps forward, 447 billion steps back.[/B]
    This $447 billion does not exist, and even foreigners don't want to lend it to us. A majority of it will be "electronically created" by the Federal Reserve buying U.S. Treasury debt. Don't worry, it's not like "printing money": we leave that to primitive basket-cases like Zimbabwe. This is more like one of those Nigerian email schemes, in which a prominent public official promises you a large sum of money in return for your bank account details. In the case of Ben Bernanke and Timothy Geithner, one prominent public official is promising to wire a large sum of money into the account of another prominent public official, which is a wrinkle even the Nigerians might have difficulty selling.
    But not to worry. [B][I][SIZE=3]On Thursday night, the president told a Democratic fundraiser in Washington that the Pass My Jobs Bill bill would create 1.9 million new jobs. What kind of jobs are created by this kind of magical thinking? Well, they're "green jobs" – and, if we know anything about "green jobs," it's that they take a lot of green. German taxpayers subsidize "green jobs" in their wind-power industry to the tune of a quarter of a million dollars per worker per year: $250,000 per "green job" would pay for a lot of real jobs, even in the European Union. Last year, it was revealed that the Spanish government paid $800,000 for every "green job" on a solar panel assembly line. I had assumed carelessly that this must be a world record in terms of taxpayer subsidy per fraudulent "green job." But it turns out those cheapskate Spaniards with their lousy nickel-and-dime "green jobs" subsidy just weren't thinking big. The Obama administration's $38.6 billion "clean technology" program was supposed to "create or save" 65,000 jobs. Half the money has been spent – $17.2 billion – and we have 3,545 jobs to show for it. That works out to an impressive $4,851,904.09 per "green job." A world record! Take that, you loser Spaniards! USA! USA![/SIZE][/I][/B]
    So, based on previous form, Obama's prediction of 1.9 million new jobs will result in the creation of 92,000 new jobs, mostly in the Federal Department of Green Jobs Grant Applications.
    Just to put it in perspective, the breezy $447 billion price tag for the Pass My Jobs Bill jobs bill is about 20 times higher than the most recent Greek government deficit currently threatening the stability of the entire Eurozone. Indeed, Greece's projected 2011 deficit – $24 billion at last count – is little more than half of just one of Obama's boutique, niche "green jobs" programs. As Churchill almost said, never in the field of human con tricks has so much been owed by so many to so little effect.
    Fortunately, there is no "American Jobs Act". Indeed, the other day, tired of waiting for Obama to turn his telepromptered pseudo-bill into a typewritten actual bill, the Texas Congressman Louie Gohmert waggishly introduced an "American Jobs Act" all of his own. But back on the campaign trail the chanting goes on, last week's election results in Nevada and New York notwithstanding. America has the lowest employment since the early Eighties, the lowest property ownership since the mid-Sixties, the highest deficit-to-GDP ratio since the Second World War, the worst long-term unemployment since the Great Depression, the highest government dependency rate of all time, and the biggest debt mountain in the history of the planet. And the president has just announced to the world that he's checked the more-of-the-above box. The Pass My Jobs Bill jobs bill proclaims that this is all he knows and all he wants to know.
    In my new book, I point out that Big Government leaves everything else smaller – and, when it's bigger than anything ever attempted, the everything else is going to be way smaller. Maybe if you're a "public service" worker or a tenured professor at Berkeley or a green-jobs racketeer or a New York Times columnist married to an heiress, you can afford Obama. But, if you're not, look at your home, look at your savings, and figure out what'll be left after another four years of "stimulus."
    "I love you!" squeals the Obammybopper in North Carolina. "I love you, too," says Obama. "But… ."
    But: You gotta take this half-trillion dollar bill, and the next one, and the one after that. Like Al Gore says in "Love Story," love means never having to say you're sorry.

    [URL]http://www.steynonline.com/section/13/steyn-on-america[/URL]
    [/QUOTE]

  15. #15
    it should also be noted it used to be a huge breach of etiquette to talk about the fed politically. Central banking was not a battle ground for partisan politics. If global investors believe our central bank is at the beck and call of the minority party (whoever it is) it's a possible disaster in the markets.

    not that the GOP cares about governing well. they just want to win.

  16. #16
    [QUOTE=bitonti;4152753]
    not that the GOP cares about governing well. they just want to win.[/QUOTE]

    says the guy who EMPHATICALLY supports a President who has done nothing but campaign for reelection in his tenure...

  17. #17
    [QUOTE=Trades;4152750]I tried it on Darlene in the back of my Ford Edsel when I was 17, and we didn't get home till two in the morning.[/QUOTE]

    ah yes the Edsel. Good stuff.

    like Rodney said hey baby You musta been something before electricity

  18. #18
    [QUOTE=AlwaysGreenAlwaysWhite;4152756]says the guy who EMPHATICALLY supports a President who has done nothing but campaign for reelection in his tenure...[/QUOTE]

    ah yes the 2 wrongs make a right defense. Even if that's true don't you want to hold your side to a higher standard?

  19. #19
    [QUOTE=bitonti;4152753]it should also be noted it used to be a huge breach of etiquette to talk about the fed politically. Central banking was not a battle ground for partisan politics. If global investors believe our central bank is at the beck and call of the minority party (whoever it is) it's a possible disaster in the markets.

    not that the GOP cares about governing well. they just want to win.[/QUOTE]

    [url]http://www.youtube.com/watch?v=phJcI3mrZWI[/url]

  20. #20
    Jets Insider VIP
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    [QUOTE=bitonti;4152753]it should also be noted it used to be a huge breach of etiquette to talk about the fed politically. Central banking was not a battle ground for partisan politics. If global investors believe our central bank is at the beck and call of the minority party (whoever it is) it's a possible disaster in the markets.

    not that the GOP cares about governing well. they just want to win.[/QUOTE]

    OK Heloise, we will hold our pinkies up while we drink our tea as the ship sinks. Etiquette, ROFLMAO.

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