"The overall economy as measured by the gross domestic product contracted at an annual rate of 0.7 percent in the January-March period, the Commerce Department reported Friday.
The revised figure, even weaker than the government's initial estimate of a 0.2 percent growth rate, reflects a bigger trade gap and slower consumer spending. It marked the first decline since a 2.1 percent contraction in the first three months of 2014, a slump that was also blamed on winter weather."
Ref: Associated Press
Perhaps the Federal Reserve should pursue further lowering the Federal Funds Rate.
Although as the Federal Reserve , itself, explains: ". . . all else being equal, lower interest rates tend to raise equity prices as investors discount the future cash flows associated with equity investments at a lower rate."
And, . . . thus, this effect of low-interest might already be responsible for the current near-record United States income inequality as reported by the huffingtonpost.
Uh-oh! Never mind. It looks like it might be difficult to lower the Federal Funds Rate anyway:
Wait a minute ! Maybe the USA should follow the lead of Europe where some bonds issued over the last few months have yielded negative interest rates; i.e. the bond purchasers paid the, f'rinstance Swiss and German, governments for the privilege of buying their bonds.
Oh, and some European banks now exhibit negative interest rates for simple deposit accounts; depositors pay the bank to hold their money! That should get them pesky citizens to start spending, . . . or alternatively stuffing cash into their mattresses!
Or something.
Oh well, . . . DonDiego supposes he'll just have to muddle through somehow.
_ _ _ _ _ _ _ _ _ _
n.b. Nowhere in the above has poor old DonDiego assigned personal blame to any individual, group, or organization, extant or extinct, for the relatively poor economy.
DonDiego recognizes the power of a Central Bank can be employed effectively or ineffectively and for honorable purposes or nefarious intentions. He joins Presidents Thomas Jefferson and Andrew Jackson in suggesting that over time the negative effects of a Central Bank will be felt as the Government employs the institution for its own benefit, and the benefit of those governing, as opposed to the benefit to its citizens.
The more powers to "help people" that the Government acquires unto itself, the more ways they have to screw things up. Or maybe it has something to do with the influence which wealthy folks have on the Government is magnified by such economic powers; maybe it's not a screwup at all.
"L. Cassius ille quem populus Romanus verissimum et sapientissimum iudicem putabat identidem in causis quaerere solebat 'cui bono' fuisset."
__Marcus Tullius Cicero
The revised figure, even weaker than the government's initial estimate of a 0.2 percent growth rate, reflects a bigger trade gap and slower consumer spending. It marked the first decline since a 2.1 percent contraction in the first three months of 2014, a slump that was also blamed on winter weather."
Ref: Associated Press
Perhaps the Federal Reserve should pursue further lowering the Federal Funds Rate.
Although as the Federal Reserve , itself, explains: ". . . all else being equal, lower interest rates tend to raise equity prices as investors discount the future cash flows associated with equity investments at a lower rate."
And, . . . thus, this effect of low-interest might already be responsible for the current near-record United States income inequality as reported by the huffingtonpost.
Uh-oh! Never mind. It looks like it might be difficult to lower the Federal Funds Rate anyway:
Wait a minute ! Maybe the USA should follow the lead of Europe where some bonds issued over the last few months have yielded negative interest rates; i.e. the bond purchasers paid the, f'rinstance Swiss and German, governments for the privilege of buying their bonds.
Oh, and some European banks now exhibit negative interest rates for simple deposit accounts; depositors pay the bank to hold their money! That should get them pesky citizens to start spending, . . . or alternatively stuffing cash into their mattresses!
Or something.
Oh well, . . . DonDiego supposes he'll just have to muddle through somehow.
_ _ _ _ _ _ _ _ _ _
n.b. Nowhere in the above has poor old DonDiego assigned personal blame to any individual, group, or organization, extant or extinct, for the relatively poor economy.
DonDiego recognizes the power of a Central Bank can be employed effectively or ineffectively and for honorable purposes or nefarious intentions. He joins Presidents Thomas Jefferson and Andrew Jackson in suggesting that over time the negative effects of a Central Bank will be felt as the Government employs the institution for its own benefit, and the benefit of those governing, as opposed to the benefit to its citizens.
The more powers to "help people" that the Government acquires unto itself, the more ways they have to screw things up. Or maybe it has something to do with the influence which wealthy folks have on the Government is magnified by such economic powers; maybe it's not a screwup at all.
"L. Cassius ille quem populus Romanus verissimum et sapientissimum iudicem putabat identidem in causis quaerere solebat 'cui bono' fuisset."
__Marcus Tullius Cicero
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