Fed Again Cuts Economic Forecast

[Weatherman2020]

Its deja vu all over again with Obamanomics.

First President in history to not obtain at least a 3% growth. Even the lousy one term Presidents.

In forecasts released as part of the central bank’s interest-rate setting Federal Open Market Committee, officials cut their growth forecast for this year to 1.8%, from 2.0% in June, and held steady their view for next year at 2.0%. Notably, they lowered their long-run view on the economy’s growth rate to 1.8% from 2%.

 

[SassyIrishLass]

This can't be....the left keeps telling us what a great Obama economy this is.....lol

 

[The Irish Ram]

They meant Iran. What a great Obama economy this is for Iran........

 

[william the wie]

A large part of the problem is productivity driven deflation that has been made worse by Obama driving labor costs through the roof.

Another big part of the problem is having theorists like Bernancke, that do not keep up with their professional reading, turning the Fed into the problem not part of the solution. For example he and Yellin still show no signs of understanding the importance of balance sheets and P&L results. Robert Shiller won his Nobel by disproving the theories the last three Fed chairs relied/rely on.

 

[gipper]

A large part of the problem is productivity driven deflation that has been made worse by Obama driving labor costs through the roof.

Another big part of the problem is having theorists like Bernancke, that do not keep up with their professional reading, turning the Fed into the problem not part of the solution. For example he and Yellin still show no signs of understanding the importance of balance sheets and P&L results. Robert Shiller won his Nobel by disproving the theories the last three Fed chairs relied/rely on.

Bernanke and Yellen are Keynesians. As such, they are fools. They think massive government debt is good, but private corporate debt is bad.

Who has benefited from ZIRP and who has it harmed? Clearly this is an easy question to answer. It has benefited the wealthy and harmed the middle class.

The reality could be that the US economy is currently in recession. That 'real' GDP growth is negative.

Are You Ready for the 2017 Recession?
Are You Ready for the 2017 Recession?
The U.S. economy is still growing. But barely. And the pattern is clear. Instead of gathering strength, it is weakening… with lower GDP growth, quarter after quarter.

“Nominal” GDP growth is now 2.4% – the lowest rate, outside of recession, since World War II.

To get “real” GDP growth, you need to subtract inflation (the GDP deflator)… which, according to one official measurement, is 2.2%, not including food and energy. If those numbers were correct, it would mean the U.S. economy is essentially stagnant. Dead in the water.

Most likely, official inflation is understated.

President Reagan’s budget advisor, David Stockman, recalculates, taking out much of the statistical hocus-pocus from the feds’ numbers. He figures the real rate of price increases that most Americans suffer – his “Flyover CPI” – has been averaging 3.3% for this entire century.

Using that number, we see the real economy is now in recession, with a growth rate of MINUS 0.9%.

Most likely, the downward drift of output will continue. If so, you should expect an official recession before the end of 2017.

 

[william the wie]

A large part of the problem is productivity driven deflation that has been made worse by Obama driving labor costs through the roof.

Another big part of the problem is having theorists like Bernancke, that do not keep up with their professional reading, turning the Fed into the problem not part of the solution. For example he and Yellin still show no signs of understanding the importance of balance sheets and P&L results. Robert Shiller won his Nobel by disproving the theories the last three Fed chairs relied/rely on.

Bernanke and Yellen are Keynesians. As such, they are fools. They think massive government debt is good, but private corporate debt is bad.

Who has benefited from ZIRP and who has it harmed? Clearly this is an easy question to answer. It has benefited the wealthy and harmed the middle class.

The reality could be that the US economy is currently in recession. That 'real' GDP growth is negative.

Are You Ready for the 2017 Recession?
Are You Ready for the 2017 Recession?
The U.S. economy is still growing. But barely. And the pattern is clear. Instead of gathering strength, it is weakening… with lower GDP growth, quarter after quarter.

“Nominal” GDP growth is now 2.4% – the lowest rate, outside of recession, since World War II.

To get “real” GDP growth, you need to subtract inflation (the GDP deflator)… which, according to one official measurement, is 2.2%, not including food and energy. If those numbers were correct, it would mean the U.S. economy is essentially stagnant. Dead in the water.

Most likely, official inflation is understated.

President Reagan’s budget advisor, David Stockman, recalculates, taking out much of the statistical hocus-pocus from the feds’ numbers. He figures the real rate of price increases that most Americans suffer – his “Flyover CPI” – has been averaging 3.3% for this entire century.

Using that number, we see the real economy is now in recession, with a growth rate of MINUS 0.9%.

Most likely, the downward drift of output will continue. If so, you should expect an official recession before the end of 2017.

I think a more fruitful way of looking at things is examing the creation of negative utility:

On the basis of bang for the buck Harvard doesn't make the top ten of greater Boston Universities.

We have AGW believers who do not realize that their theory was disproven in 1961 by Edward Lorenz when he discovered that accuracy of measurement needed for long range weather control and prediction was not mathematically possible.

Such negative utility and its avoidance is where real growth is possible.

 

[EdwardBaiamonte]

Its deja vu all over again with Obamanomics.

First President in history to not obtain at least a 3% growth. Even the lousy one term Presidents.

In forecasts released as part of the central bank’s interest-rate setting Federal Open Market Committee, officials cut their growth forecast for this year to 1.8%, from 2.0% in June, and held steady their view for next year at 2.0%. Notably, they lowered their long-run view on the economy’s growth rate to 1.8% from 2%.

Yes we need a return to capitalism to restore growth:
1) eliminate corporate taxes
2) eliminate the union threat
3) eliminate budget deficits
4) make inflation illegal
5) give the Fed single mandate
6) reduce regulations by 50%