Adding Fuel to the Firegreenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread
Adding Fuel to the Fire
Wired News Report
9:30 a.m. 22.Feb.2000 PST
Nobody wants to hear it, but here it is: The Federal Reserve Bank will continue raising interest rates as long as domestic demand remains as strong as it is.
That comes from no less an authority than William McDonough, president of the Federal Reserve Bank of New York, who said that Fed chairman Alan Greenspan "made very clear that we will have to use the interest rate tool as long as the demand side of the economy stays this robust."
McDonough declined to say when or by how much the Fed would raise rates. He did say, however, that the rate of inflation was low and was probably going down a bit, "... especially if you take away the effect of the petroleum price."
Still, he expressed concern about America's massive current account deficit, the result of importing capital to compensate for excess U.S. demand.
"You can finance a current account imbalance as long as foreigners want to keep their capital here," he said. "But it can someday become a problem."
-- Lynn Ratcliffe (email@example.com), February 22, 2000
"... especially if you take away the effect of the petroleum price."
WHAT???!!! Maybe I'm missing something. How is it even remotely possible to attempt to negate the rippling effect of a commodity that is ESSENTIAL to modern industrial society?
There is no inflation...There is no oil crisis...Planes are not falling from the sky...The Red Sox have won the World Series...(Sorry, even I can't believe that one)...and most importantly, It ain't Y2K.
-- Jimmy Splinters (firstname.lastname@example.org), February 22, 2000.
Must be done with mirrors Jimmy.
-- Michael (email@example.com), February 22, 2000.
Or, more likely, the Red Soxs did win and TPTB are supressing the information for reasons that no one can satisfactorily explain.
-- E. H. Porter (E.H. Porter@just wondering.about it), February 22, 2000.
No problem. When you've determined (by edict) that there will be no inflation (!!!), all you have to do is keep tossing everything from the component list that is inflationary! Easy! By the time Da Fedz are finished cooking the books, the only thing left on the CPI will be chocolate-covered grasshoppers.
You may not be able to afford a place to live or gas for the car or food, but you'll be able to rest easier knowing that there is no -- I repeat, NO -- inflation.
-- I'm Here, I'm There (I'm Everywhere@so.beware), February 22, 2000.