Network News

X My Profile
View More Activity





Posted at 2:18 PM ET, 11/23/2010

Fed lowers economic expectations for 2011

By Neil Irwin

Top Federal Reserve officials expect the unemployment rate to remain around nine percent at the end of next year and eight percent at the end of 2012, according to internal forecasts that drove the central bank to take new efforts to boost the economy three weeks ago.

The 18 top leaders of the central bank expect the U.S. economy to grow at a 3 to 3.6 percent pace next year, which by their calculations will be enough to bring joblessness, currently at 9.6 percent, down to the 8.9 to 9.1 percent range in late 2011. In projections made in June, the same officials had been more optimistic, forecasting 3.5 to 4.2 percent growth in 2011 and an unemployment rate that would decline to the 8.3 to 8.7 percent range.

Taken together, the new projections, released Tuesday alongside minutes of the much-scrutinized policy meeting Nov. 2 to 3, show the diminished economic expectations that shaped the Fed leaders' decision to buy $600 billion of Treasury bonds in a bid to lower long-term interest rates and encourage growth. Those forecasts are supposed to assume "appropriate" monetary policy, meaning that the continued high unemployment is expected even with the new measures in place.

Since that decision, the criticism directed at the Fed has been deafening, with several foreign finance ministers, Republican members of Congress and conservative economists and media personalities bashing the action.

The new minutes give the fullest account to date of the Fed officials' rationale for the bonds purchase.

"Though the economic recovery was continuing, members considered progress toward meeting the Committee's dual mandate of maximum employment and price stability as having been disappointingly slow," the minutes said. "Moreover, members generally thought that progress was likely to remain slow."

Most officials expected the results of bond purchases "to help promote a somewhat stronger recovery in output and employment while also helping return inflation, over time, to levels consistent with the Committee's mandate." Some also thought the action would offer insurance against a further drop in inflation or against the "small probability" of persistent deflation.

However, the document also leaves little doubt that several Fed officials remain uneasy with the action. Some anticipated that the decision would have only a "limited" effect on the pace of recovery, arguing that action should be taken only if the odds of deflation "increased materially."

And some "noted concern" that the action "could put unwanted downward pressure on the dollar's value in foreign exchange markets" or "an undesirably large increase inflation."

Before this month's policy meeting, there was a previously undisclosed Oct. 15 videoconference among the Fed officials in which they discussed communications strategies around the possible policy change and how best to execute it. Officials considered "the merits of smaller and more frequent adjustments in the Federal Reserve's intended securities holdings versus larger and less frequent adjustments, and the potential costs and benefits of targeting a term interest rate."

The officials also discussed whether they should be more explicit about which rate of inflation they believe would constitute "price stability," part of the Fed's official mandate from Congress. The officials believe a 1.6 to 2 percent rate of inflation is optimal in the longer run.

During the videoconference, Fed members discussed having Chairman Ben S. Bernanke hold "occasional press briefings" to offer more details on the Fed's outlook and policy decisions.

In the early November meeting, Fed officials also talked about communicating to the public more generally, and they agreed to a review of the central bank's communications guidelines, to be headed by vice-chair Janet Yellen.

In recent months, some Fed leaders have become more outspoken in speeches and interviews about their preferred direction for policy, which has sometimes caused confusion in the marketplace.

By Neil Irwin  | November 23, 2010; 2:18 PM ET
Categories:  Federal Reserve, U.S. Economy  
Save & Share:  Send E-mail   Facebook   Twitter   Digg   Yahoo Buzz   Del.icio.us   StumbleUpon   Technorati   Google Buzz   Previous: Financial Stability Oversight Council getting abundant input, from all sides
Next: Corporate profits hit record rate

Comments

Oh, this is NOT good news, is it?

Posted by: theaz | November 23, 2010 2:41 PM | Report abuse

Okay, so if this radical monetization policy implemented to fulfill the Fed's mandate to improve unemployment is not going to improve unemployment, what is the real reason it is being done? Another bank bailout?

Posted by: SarahBB | November 23, 2010 2:42 PM | Report abuse

Well boys and girls, ladies and gents, a GOP takeover is likely to come in 2012

Posted by: houston123 | November 23, 2010 2:45 PM | Report abuse

Impeach Obama now before it's too late.

Posted by: Anonymous | November 23, 2010 2:46 PM | Report abuse

Grab your guns and ammo

Posted by: houston123 | November 23, 2010 2:49 PM | Report abuse

What ?!?! I thought Obama was all over improving our economy. No way his policies are having a negative affect on America's economy. Next you will ask me to believe that there never were any shovel ready jobs, 10% unemployment is the new norm, and the Bush tax cuts were not just for the wealthy. Oh wait...

Posted by: Anonymous | November 23, 2010 2:52 PM | Report abuse

"Okay, so if this radical monetization policy implemented to fulfill the Fed's mandate to improve unemployment is not going to improve unemployment, what is the real reason it is being done? Another bank bailout?"


You've never studied economics, have you?

Posted by: j762 | November 23, 2010 2:52 PM | Report abuse

Teahadists rejoice! America's pain is your gain--especially when can increase the pain for your gain.

You sabotaged the stimulus by loading up with useless tax cuts. This cost millions of jobs.

Mission Accomplished!

Posted by: Anonymous | November 23, 2010 2:53 PM | Report abuse

"Okay, so if this radical monetization policy implemented to fulfill the Fed's mandate to improve unemployment is not going to improve unemployment, what is the real reason it is being done? Another bank bailout?"


You've never studied economics, have you?

Posted by: j762 | November 23, 2010 2:59 PM | Report abuse

j762 - You know, it's possible that she DIDN'T study economics. I took two courses of economics in college, and they never covered stuff like this. So short of a degree in econ, I'm not sure that this is exactly common knowledge. How about you lay off of the poor girl for asking a question.

Posted by: Anonymous | November 23, 2010 3:00 PM | Report abuse

Baloney,

Another just in time made to order release by Bernanke to justify his continued control of our economy and financial lives.
This is news/ Where are the green shoots Bennie, already dead for winter? One more notch for your exemplary record of prognostication. So far you've got an F.

Just gives him more made up reasons to keep the free depositor money feed bag on his masters, the banks at the expense of the prudent, i.e. savers.

Did you ever think that the Fed's monetary algorithms dictate how CPI, money supply and other variables are calculated and not vice-versa. His formulas are designed to match the answers the fed wants, not the reality of the mess they have created for the past 30 years.

You want banks to lend, take the punch bowl away Bennie.

Posted by: wesatch | November 23, 2010 3:05 PM | Report abuse

Teahadists rejoice! America's pain is your gain--especially when can increase the pain for your gain.

You sabotaged the stimulus by loading up with useless tax cuts. This cost millions of jobs.

Mission Accomplished!

Posted by: Anonymous | November 23, 2010 2:53 PM

****************************

Kindly explain how higher taxes create more jobs, expect at the IRS of course.

Posted by: hisroc | November 23, 2010 3:09 PM | Report abuse

Anonymous wrote: "I thought Obama was all over improving our economy. No way his policies are having a negative affect on America's economy."

So this is bad? The article says that "The 18 top leaders of the central bank expect the U.S. economy to grow at a 3 to 3.6 percent pace next year, which by their calculations will be enough to bring joblessness, currently at 9.6 percent, down to the 8.9 to 9.1 percent range in late 2011."

Compare this to the supply-side economic paradise under W: Accelerating record job losses. Imploding financial system. Collapsing economy.

From PolitiFact: "For Bush's last three months. Between October and November, 597,000 jobs were lost; between November and December, 681,000 were lost; and between December and January, 741,000 were lost.

"For the most recent three months under Obama: 519,000 jobs were lost between March and April, 322,000 from April to May, and 467,000 May to June. "

Problem is that the teahadists have the understanding of economics of a 2-year old. They think that Obama can waived a magic wand and fix everything, just like in the movies. They think that Obama need only call the tax cut fairy to sprinkle her magic dust on us and we'll see a full employment, no inflation, and the Cubs winning the World Series.

Oh, don't forget the 72 virgins courtesy of the Cato Institute.

Bush's economy was all downhill. Obama's is slowly but surely uphill. I'll take Obama's economy any day over the delusional conservatard supply-side paradise of W and the teahadists.

Posted by: Anonymous | November 23, 2010 3:10 PM | Report abuse

So, exactly three weeks after the mid-term elections, the Fed discovers that the economy is not improving. This after the Fed revised their outlook on October 20 upwards and said that the economy was improving?

As Church Lady would say, "How conveeeenient!"

So much for the impartiality of the Federal Reserve. One more public institution that has been corrupted to sway public opinion for crass partisan purposes.

Posted by: hisroc | November 23, 2010 3:21 PM | Report abuse

The outlook for the future is always uncertain. But the history of the last decade is a fact. For the United States the facts of that decade were stagnant employment, massive loss of manufacturing jobs, and serious financial instability. That instability manifested itself in the stock market crash of 2000, the unprecedented bubble in house prices, the bubble in oil prices, and possibly the worst crisis in the financial system in American history. The Federal Reserve and most of the economics profession seem to be in denial of that history. A charitable description of Federal Reserve policy over that decade would be that it was ineffective. A more reasonable description would be that the Federal Reserve helped destabilize the American financial system. Nevertheless, the Federal Reserve marches on under the assumption that any extreme action is acceptable as long as its consequences will not be experienced next month.

Posted by: Anonymous | November 23, 2010 3:33 PM | Report abuse

'Fall of the Republic' is a MUST Watch Video -- that will answer a few questions you may have, and then some.. www.youtube.com/watch?v=VebOTc-7shU&feature=channel

Posted by: Anonymous | November 23, 2010 3:34 PM | Report abuse

To those who believe higher taxes cannot create more jobs. It really depends on what the extra revenue is used for. If it is to take money from people who are likely to save it or use it for foreign investment and give to people who are likely to invest it at home or spent it on domestic products it definitely creates jobs. The effect or raising or lowering taxes depends very much on what happens to the money. It has been amply demonstrated over the last decade that tax cuts for the wealthy are the least effective way to create jobs. The excess capital generate by those tax cuts was used for financial speculation rather than industrial investment and went out in smoke when the financial casino failed. The constant refrain that a private unregulated market knows best how to allocate resources is simply nonsense. The government should not control the economy but must create conditions that lead to productive investment, not unrestrained speculation.

Posted by: Anonymous | November 23, 2010 3:36 PM | Report abuse

What a surprise!!!!!!! The Administration has concentrated on about everything but the economy and jobs. With the real unemployment rate closer to 17%, any improvement in the economy will bring those who stopped looking, back to looking. So the unemployment rate is likely to change little or even rise some.

Unfortunately, extending unemployment benefits has historically only made things worse.

Posted by: Jimbo77 | November 23, 2010 3:41 PM | Report abuse

This story must be wrong! His lordship Obama told us he would walk on water and perform his daily miracles to make everything alright again. I don't understand. He promised he could do anything and now all he does is blame Bush.

Posted by: Anonymous | November 23, 2010 3:44 PM | Report abuse

Anonymous:
"His lordship Obama told us he would walk on water and perform his daily miracles to make everything alright again."

No, he didn't. The only people who say that are the people who didn't like him in the first place.

Posted by: Anonymous | November 23, 2010 3:50 PM | Report abuse

this is almost a mathematical demonstration that the tax cut extension for the richest will not create jobs at all.
The tax cuts for the richest already exists , the Qe2 is the last tool of the Fed for creating jobs. Since no significant jobs creation will happen in 2011 , tax cut extension for richest is only debt creating and not job creating.
Which Was to Be Demonstrated

Posted by: charlestaieb | November 23, 2010 3:57 PM | Report abuse

The naked emperor and his little Socialist Democrat buddies will have a tough time selling the American people this one for the 2012 election.

Posted by: Desertdiva1 | November 23, 2010 3:58 PM | Report abuse

Cripes, I could have told you in 2007 (before Obama was even nominated, so don't blame him) that we were in for an epic world of hurt that would have no easy answers.

Whoever was going to become president was going to have a big economic load dumped on them, and in all likelihood would enter the end of their first term in office with things much worse than when than at the beginning. It wouldn't matter if it was McCain or Obama, Romney or Clinton, thing were going to be bad.

Posted by: Anonymous | November 23, 2010 3:58 PM | Report abuse

This story must be wrong! His lordship Obama told us he would walk on water and perform his daily miracles to make everything alright again. I don't understand. He promised he could do anything and now all he does is blame Bush.
---------------------

And if you had a brain, you'd be blaming Bush as well!

Posted by: Anonymous | November 23, 2010 4:03 PM | Report abuse

Not so fast, wingnut morons:

From today’s NYT:
American companies just had their best quarter ever.

American businesses earned profits at an annual rate of $1.659 trillion in the third quarter, according to a Commerce Department report released Tuesday. That is the highest figure recorded since the government began keeping track over 60 years ago, at least in nominal or non-inflation-adjusted terms.
...

Running the nations' economy isn't like you and your dimwit cousin-wife managing the budget for your trailer...

Posted by: Anonymous | November 23, 2010 4:04 PM | Report abuse

Grab your guns and ammo
-------------
I believe we already did that and it's costing us a trillion dollars a year in wars that should never have been started. Guns, ammo, defective Hummers, defective bulletproof vests, not enough equipment, just now getting tanks in to Afghanistan -- guess we needed all those guns to show up at tea party hee-haws and swagger around.

Posted by: Anonymous | November 23, 2010 4:06 PM | Report abuse

Well, I guess this just goes to show that the public is no so stupid as the politicians believe. We are not hiring because the is no businesses. Therefore unemployment remains high. Mr. Obama can offer loans, spend money, or enter into any other ridiculous activities, but it will not change the basic fact that this economy is hurting

Posted by: Anonymous | November 23, 2010 4:14 PM | Report abuse

I knew this was going to happen.
That times would be bad for the entire year of 2011. Then, heck, even at the end of 2011, unemployment will still be hovering around 8%. That's not good news at all...you bet !!!!

And I am so disappointed that Congress went on Thanksgiving Day break BEFORE they voted on unemployment extensions. The 99ers lose out this week, the last week 11-27 is the end if Congress doesn't do something and VOTE.

Even with an extension until Feb 28th, that will help families through the holiday and then house taxes due March 1st.....but they better be looking to extend through out the year of 2011.
Think of all the foreclosures that will take place again if unemployment doesn't get extended.

Does anyone know when Congress gets back from Turkey Day holiday?

Posted by: Anonymous | November 23, 2010 4:17 PM | Report abuse

Where are the jobs Boner?

Posted by: Anonymous | November 23, 2010 4:18 PM | Report abuse

sorry, that entry was mine.....
forgot about this Anonymous stuff.


!!!!!!!!!!!!!!!!!!!

Posted by: TheBabeNemo | November 23, 2010 4:19 PM | Report abuse

Save us B.O.!

Blame somebody! Fire up the teleprompter and shift the responsibility to someone else!

Dither!

Posted by: Anonymous | November 23, 2010 4:20 PM | Report abuse

Remember when Hopey Dopey was going to focus on job creation like a laser. Obama: one failed experiment. Yet he still grades himself an A. We know what the A stands for.

Posted by: Anonymous | November 23, 2010 4:21 PM | Report abuse

THE HEADLINE for todays newspaper is that Chinese workers are being used to assemble a government funded memorial to Dr. King. So, while millions of American's remain unemployed, the cockroaches that we elected see fit to displace a few more US workers. Unless you are a complete dunce, you will see the relationship between our utterly destroyed economy and the bleak and getting worse economic outlook. The ONLY way we will *ever* climb out of the hole the ruling class have dug us into is to put an end to free trade. We wan 25% across the board trade tariffs and 50% duties on any offshore produced goods and services accessing our consumer economy on top of those! And we want a flat out and absolute ban on any and all "guest workers" - none of them are needed nor are they wanted. This summer our "leaders" are going to see a series of revolts and national strikes that will paralyze this country unless free trade is ended. A government that WILL NOT attend to the needs of it's citizens has lost any excuse for its continued existence.

Posted by: mibrooks27 | November 23, 2010 4:23 PM | Report abuse

The Fed is no above slanting its own news releases. Dig a bit deeper and you'll find that the projection is based on several assumptions, most of which are about as reliable as those Obama used to prove the forced insurance program known best as ObamaCare was budget neutral. The unemployment projects assume that none of the "permanently unemployed" (those out of work for 2 years who have quit looking) will not come back into the job market. Second, it fails to properly account for the new workers entering the job market. Otherwise, it is hinting an an actual 300k or so pickup in jobs. Ain't going to happen folks. There's not that many fast food places out there. As to price stability, one only needs to spend a couple of hours buying the weekly groceries to know that inflation is already here. And this does not even include the massive increase in the cost of health care since ObamaCare. This is a nice way of saying the longest, deepest recession in history will continue and worsen under the leadership of this administration.

Posted by: Anonymous | November 23, 2010 4:25 PM | Report abuse


not the Boner comment, the one before it.
//////
I have yet to hear anything on CNN or the WAPO and any type of "unemployment benefit story". What, there is more news than just
"House voted down the unemployment extension bill".....and boom, that's it. They should be all over this story instead of dancing with the stars bull.

I heard Pelosi said that they will try and get at least a 6 week extension passed before Xmas. WHEN? May be good for the families that will buy ---at least one gift for their two children (that's how lean it will be for them). House payment and food comes before Xmas ya know !!!!!!!

I'm mad as heck. Even though I am in Tier II and get to finish it out, an extension would put me in Tier 3 and save me for March taxes and income tax....since I opted NOT to have federal tax taken out of my unemployment.

And the worse.......there are still no jobs out there. I send at least 3 resumes out a day.....and on Sunday, manage maybe 12...that's about it. And it's not like the old days that you get called directly from the company for an in-person interview.....It's all online and you get an email saying "if we deem that you are the right fit, we will contact you".
Criminey, ya can't win.
And what if you are one of the 99ers that had to give up Internet access because of the bills. Goin' to the library is fine, but takes gas.
Times are bad. Unemployment recipients DO give back to the economy by paying their houses, food, utilities. It's not like the circular flow stops.

Geez.....

Posted by: TheBabeNemo | November 23, 2010 4:28 PM | Report abuse

audit time fed. here comes rand paul.

Posted by: Anonymous | November 23, 2010 4:33 PM | Report abuse


mibrooks:

Have you seen that commerical where the Chinese "teacher" is talking about how empires fall and goes on to say......
"the Americans work for us now"???

And everyone chuckles.....

what a powerful commercial..

Posted by: TheBabeNemo | November 23, 2010 4:35 PM | Report abuse

The Fed lowered economic expectations for whom? I thought I just read that corporate America had the largest profits in recorded history this last quarter. They seem to be doing OK. It's just ordinary slobs who've been left out.

Posted by: Anonymous | November 23, 2010 4:38 PM | Report abuse


The automobile industry is bouncing back slowly. Job restoration for some laid off workers. Not enough. Not job creation. When one talks about 1200 jobs hired back.....doesn't seem like a number we should even care about. Not with 4.2 million out of work. We need the big numbers....who cares if 150,000 jobs were created last quarter......hey 450,000 filed unemployment. Dig?

AND,we still haven't done anything about "infrastructure" like road, highway repair, bridge repair, the electrical grid .....all those shovel ready jobs in the states ---whereby the states claimed that they had them...then we found out that the states lied a bit....and there were no shovel ready jobs.

//////

Posted by: TheBabeNemo | November 23, 2010 4:43 PM | Report abuse

and remember, companies (no matter if LLC, corps, or sole proprietorship) don't want to hire full time because of Obamacare.
They don't know how that is going to play out. So they run scared. No new employee that they have to pay benefits for.

Might be a boom for the temporary agencies. Kelly Services, and such.

Posted by: TheBabeNemo | November 23, 2010 4:49 PM | Report abuse

Just how long did we think it was going to take to clean up 'w's mess?

It's a wonder, especially given the GOP's need to put party before country, that we're doing as well as we are.

Posted by: mmax | November 23, 2010 4:51 PM | Report abuse

Are we afraid of North Korea? Our forces are exhausted and not in a position to start another conflict? Or there is nothing to gain in fighting with N. Korea? I mean no gold or OIL but liability alone? Or we cannot sell this WAR to our war mongering goons in America, who wants to fight with Muslims and ISLAM ONLY?

Posted by: citysoilverizonnet | November 23, 2010 4:53 PM | Report abuse

That Recovery Summer was INCREDIBLE. Why would anyone be dumb enough to vote for an affirmative action, untested community organizer thinking he knew anything about creating jobs.

Posted by: Anonymous | November 23, 2010 5:11 PM | Report abuse

inflation.....it's already happened.

just because one can buy/lease cars cheaper than usual, or buy GM stock cheap, doesn't mean jack to those who are scraping by. Who has money for a new car in the "common man world"????? Heck, most have lost their car or sold it....no lie!!

Every housewife of househusband in the USA knows inflation has hit. Look at the prices at the grocery stores. They have doubled or tripled since early 2009.

What was 3.99 is now 5.99. At one time, everything was about 3.99 ((smiles)) if one would average it out. Now it's 5.99 to 6.99.

Gas is going to go up, just wait.

When soup doubled in price and the crackers that you put in your soup doubled in price....how does one expect to feed a family. Lots of hamburger helper out there....that rose 3 bucks in price!!!!

It is a freakin' mess and they say they want to stop inflation from taking hold. Too late fellas.

for example: Thanksgiving. Do you know how much it costs to "do thanksgiving". I am doing a small breast for my boyfriend and myself with only dressing (Stove Top cheap stuff-not homemade like usual), cranberry sauce, yams, and plain white bread with butter. I bought a pecan pie on sale. And you know, 50 to 60 bucks right there. Or more.....(I don't want to try and figure my cost out)
This was unemployment money too folks. Unemployment benefits made it possible for me to have, at least, some Thanksgiving food celebration

But on the other hand the 50 to 60 bucks is my cable bill too. See?

Celebrate Thanksgiving if you can, but say bye bye to Xmas. And New Years' Eve....stay in with a gallon of Smirnoff. You will have a better time. If one can even afford that.

The rich don't understand what the common man of America is going through. They turn away.


Posted by: TheBabeNemo | November 23, 2010 5:16 PM | Report abuse

Maybe if we stop pointing the finger and doing the blame game, work together maybe, just maybe we can fix this thing.

Posted by: Anonymous | November 23, 2010 5:22 PM | Report abuse

NYTimes, Tue, Nov 23, 2010:

Headline: Corporate Profits Were the Highest on Record Last Quarter

"...American businesses earned profits at an annual rate of $1.66 trillion in the third quarter... ...Corporate profits have been going gangbusters for a while. Since their cyclical low in the fourth quarter of 2008, profits have grown for seven consecutive quarters, at some of the fastest rates in history."
====================

Of course unemployment is going to stay high. The Pirates of Wall Street, Corporate America and the Pirates of Washington, DC are doing better than ever. Open borders to make unskilled and semi-skilled labor even cheaper; outsourcing the middle and upper-middle classes; and the fed gov is borrowing boatloads to offset the lost tax revenues caused by unemployed U.S. citizens in the lower, middle and upper-middle classes -- and putting even more profit from the interest into the pockets of the International Banksters Cartel.

Had enough yet America?

Posted by: Anonymous | November 23, 2010 5:38 PM | Report abuse

warren buffet's arguing the ultra-wealthy have never had it so good and stating he and others in his bracket should pay more taxes. insofar as many of the wealthiest are doing nothing to decrease unemployment, congress should raise the taxes of the wealthy and create useful jobs programs for the unemployed. chances of this happening with the incoming congress: zero. none. it isn't going to happen. the populace has again screwed itself out of legislating decency, if not fairness.

Posted by: Anonymous | November 23, 2010 5:38 PM | Report abuse

The prdictions are somewhat irrelevant because in off-shoring lots of jobs they off-shored the statistical models they have depended on in the past. So with so many more people part-timed or contracted out to save company overhear they aren't even in the conversation but you can bet they are in the non-buying mode and forced into off-the grid existence due to the unfotunate circumsances of continued excessive corporate profit takings and managerial pay scale to follow the big corp ceos forceing up local tax requirements which are being daily estimated downward casusing further layoffs and cost cutting... Meanwhile the oblivious upper echelon in DC and board rooms dream on... as they throw more money to anestheize Congress to the realities of life on planet earth waiting for it all to get better now that they kissed the Wall Street pinkies...

Posted by: Wildthing1 | November 23, 2010 5:40 PM | Report abuse

hisroc,

This is not about higher taxes creating jobs. So explanation is not required.

This is about stabilized economies creating jobs. And of course the policies and legislation that support growth being understood by the people. Just a little bit.

At the present our debt (US) is quickly approaching 60% of GDP. At some point in time if something is not done to stop the trend it will go to 70% of GDP quickly.

Our current account balance is in a shambles and getting worse.

On the one hand if the dollar crashes that's good and on the other that's bad. It depends on whether you travel, stay at home, or try to export in a competitive world marketplace. (amongst many other things but those are just illustrative)

In the last twenty years when the US economy has prospered and our markets prospered and we experienced tremendous job growth we signaled to the world that the US was serious about reigning in debt. And yes there were tax increases (read my lips) and yes business profits and hiring grew.

And yes there were spending cuts made in moderate fashion to assure that growth in receipts exceeded growth in spending. But those spending cuts were addressed across the entire budget. Discretionary spending was approximately 37% of budget now it approaches 30%.

It's time people and government address the left side of the balance sheet. We've increased the debt of this nation 100% over the last ten years by only looking at the right side of the balance sheet.

That will stabilize the economy and if history bears itself out that will lead to growth in jobs and receipts. Simply put if receipts grow by 3% and outlays by 2% are you doing better or worse?

Posted by: KVK12 | November 23, 2010 5:43 PM | Report abuse

Biden's "summer of recovery" is turning into Biden's "decade of recovery."


Goodbye Democrats. Goodbye.

Posted by: FormerDemocrat | November 23, 2010 5:52 PM | Report abuse

Now can we do that blue state secession thing?!

Posted by: manicdrummer | November 23, 2010 6:11 PM | Report abuse

it is time to make major changes in our political and diplomatic commitments.

1) Cut the number of overseas military bases by 50%

2) Pull out of Iraq altogether and get of afghanastan by dec 2011.

3) change local finances and how services are paid.


4) cut federal and state workforce by 30%

Posted by: Anonymous | November 23, 2010 6:22 PM | Report abuse

Despite a nearly jobless economic recovery, U.S. companies boasted their best quarter in history, earning profits at an annual rate of $1.659 trillion in the third quarter.

Corporate profits have been accelerating since hitting a cyclical low in the final quarter of 2008, (Bush leaves office) growing for seven straight quarters (Obama in Office) and the most since the government started keeping track 60 years ago, the Commerce Department reported Today (11/23/2010).

http://www.nytimes.com/2010/11/24/business/economy/24econ.html

Just the facts! Sorry Tea Party buffoons some people don't watch Faux News and research facts before posting....

Posted by: waxtraxs | November 23, 2010 6:23 PM | Report abuse

What, the GOP takeover isn't creating jobs yet? I was so sure the GOP was going to lift everyone who wanted a job directly out of poverty and into that magical, mystical middle class populated by people earning $150K/year.

It'll be interesting to see how the Tea Party spins this in two years.

Posted by: Anonymous | November 23, 2010 6:31 PM | Report abuse

"Fed lowers economic expectations for 2011"

Again, the Fed and Obama Administration are months behind the American people. We know the economy will be in the toilet until 2012, when the next president can fix it.

Posted by: llrllr | November 23, 2010 6:33 PM | Report abuse

Since when did they ever forecast a recession?

They never declare a recession until it's over. Technically, the economy entered a recession in December 2007 but we didn't hear one word about it during the primaries or the general election. We knew of the meltdown, but until then there was not one word about negative economic growth.

Posted by: blasmaic | November 23, 2010 6:35 PM | Report abuse

People, the problem is quite simple and the reason the American people are not being told the truth is Politicos and news orgs. don't think Americans can take the truth.
America entered into the world of the global economy about 15 yrs. ago.
To ease the transition Housing was used to make people forget they were being paid less, and things were not O.K.
Wall street and big business said forget about competition, make us big and we will be America's saviours. The danger is that China and India will do what America did after ww2 and employ their own people to raise their standard of living.
That is the conundrum that not one person has the guts to explain to the American people.

Posted by: Anonymous | November 23, 2010 6:40 PM | Report abuse

HOW "SAD" that So many U.S. Citizens are Suckered by these CRIMINAL "FED' $BANKster Cartel Thugs!! - When will America "Wake-Up"? - These Crooks have $Economically RAPED Our' REPUBICK for Decades,-- and Congress AFTER Congress,- of both Traitor patrties have went along!! - Please America,-- We are almost $BANKRUPT from these Criminal Globalist Rapists,--- AND YET so many 'Sheep' Red & Blue Dingleberry Followers!! -- America seems to deserve their' own Destruction by these Glopbalist "FED" Criminal $$$BANKster THUGS!!!! --- HOW SAD- - SO MANY IGNORANT UN-EDUCATED FOOLS!!!

Posted by: jward52 | November 23, 2010 6:48 PM | Report abuse

WILL OBAMA BE ABLE TO BRING BOTH SIDES OF AISLE TOGETHER?

Paul Krugman’s bashing Sen. Simpson and the Republican Party is way off the mark. He has been around long enough to realize that there is much blame to go around to both parties. For one thing the Dems have been in majority in both houses for the past 4 years. They have been privy to the guilt of Rep. Rangel and chose to wait and wait with out getting down to condemn the illegal actions of one who writes the tax codes. Both houses may be responsible for this protexia of their members. Krugman should understand that this is the same ill which brings both houses butting their heads against each other. Krugman also gives a free pass to Bernanke whose excuse for Q2 or flooding the markets with billions out of the thin air, increasing the need to raise the debt ceiling now all of a sudden, seems to be asking for Congressional help. If his job description enabled him to fight inflation, fight unemployment and when Congress – forgetting, not for the first or last time, its core functions – directed the Fed “to promote effectively the goals of maximum employment, stable prices and moderate long-term interest rates.” And maybe boost global economy. He has failed for almost 6 years to accomplish any if not all of his mandated goals. So as far as using Bernak as a good guy Krugman misses the boat widely.

Maybe Simpson used a poor choice of words talking about a “blood bath” but nevertheless the Dems should have been smart enough to see the whirlwind of debt growing and made some provisions while they were in charge to restrain debt, but they didn’t. Obama’s team also voted off budget to finance the “War of Necessity” which followed in Bush’s footsteps. Obama signed a health care bill whose full meaning and cost were unknown and disliked. If Obama had any sense he would demand that Congress take up the massive growing debt and from today, work on a plan to bring both sides together so that the nation will have plenty of transparency and know just what’s going on. One of the first goals should be to remove Rangel from his seat and show that for once the Congress will not stand for evil doers in its midst. How could anyone believe the words of Rangel that he did have any financial gain? Sure he is sorry, but he dug his own grave. If law makers are above the laws they write, we become banana republics with corruption running rampant throughout the halls of Congress. The fact will be that the two major political parties will be working against a meeting of the mind and will both blame each other for the standstill. Maybe the American people should hold Congress hostage till they work out a plan on the debt ceiling.


Posted by: nmann6 | November 23, 2010 6:53 PM | Report abuse

No one knows what the hell their talking about. We have wall st giving a different prediction every day, most economist tell us were moving in the right direction, a few question that statement. The feds now tell us don't hope for to much, REALLY. The profits of the corporations hit 1.66 trillion dollars for the third quarter, a record high. Yet were still at and unemployment rate of 9.6. mm mm
If you can't smell something rotten here then you need help.

Posted by: shipfreakbo214 | November 23, 2010 6:56 PM | Report abuse

So we're printing up 600 billion dollars, WHY?

Posted by: grunk | November 23, 2010 7:03 PM | Report abuse

Same old WaPo. Play up big headlines ridiculing Gingrich, who only helped make Clinton a hero, over some petty differences with Olbermann the failed sports writer and the idiot who felt a thrill up his leg. I really think he felt it elsewhere.

And then some petty sniping at George Bush who is smarter than the fool Carter by refusing to bad mouth his successor who doesn't have any other way to go but to blame Bush for all his failures of the last 2 years.

Now you sugar coat the bad news on the economy and the failed procedures to help by quoting the optimistic (?) statement that the unemployment rate may go down to over 8% by the time the next election is ready to turn out this one term president and rid us of his socialist endeavors to turn us into third rate nation wallowing in debt that we may never get over.

Posted by: Anonymous | November 23, 2010 7:11 PM | Report abuse

However, corporate profits continue to surge. US corporations had one of their best quarters ever. $1.7 trillion in profits. HP, Dell, they are raking it in. Despite fluctuations, why do you think the stock market is where it is. So, somebody is making the money!

Posted by: magnifco1000 | November 23, 2010 7:25 PM | Report abuse

The Fed is looking at the incoming congress, the turnover in many states to gop control, and realistically - if we are not plunged into a serious depression by the end of next year it will be a major league miracle. Akin to feeding the mass on a few loaves and fishes.

republicons
job creation" programs are to lay of hundreds of thousands of public servants, like cops, fireman, teachers, garbage collectors, road repair personel, maintenance etc. The best way to grow the economy is by pulling hundreds of thousands of jobs out, and cutting access to credit and capital. Well, in teahadi fantasy land it is....

Posted by: John1263 | November 23, 2010 7:28 PM | Report abuse

You teabaggers once again believe what is on fux before you believe your own eyes. If you have not been driving through literally dozens of "shovel ready"projects for the last 1 1/2 years you don't live on the East coast, that's for sure

Posted by: John1263 | November 23, 2010 7:31 PM | Report abuse

Meanwhile dumb and Odumber were out in Indiana touting their economic progress.
These $@$%$% clowns still don't get it.

Posted by: Anonymous | November 23, 2010 7:39 PM | Report abuse

Not mentioned is that the IT press is reporting that President Obama gave the go-ahead on backing Congress expanding H1-B visas and outsourcing of US jobs to India during the recent trade visit.

Your jobs.

Your unemployment.

Going to India.

Not to the USA.

WE NEED THOSE JOBS! Kill the H1-B visa program!

Posted by: WillSeattle | November 23, 2010 7:59 PM | Report abuse

Jobs aren't in America because "free trade" has outsourced them to China and India. So what's the Republican plan? Tax breaks for big business and corporations who obviously don't need it. Corporate profits are surging. Reduce the size of government? Yeah, layoff even more people, that's really going to help reduce the unemployment rate!

Posted by: magnifco1000 | November 23, 2010 7:59 PM | Report abuse

why has obama failed so miserably?????

Consider that Obama mocked the Bible books of Deuteronomy and Leviticus by name. Obama’s speech is still on You-Tube. These books are in the Jewish part of the Bible, the Old Testament , which is also part of the Christian Bible.

Note that Obama has never even CRITICIZED the Koran, much less MOCKED it.

Deuteronomy 28, in the very book Obama mocked by name, pronounces specific curses:

15 However, if you do not obey the LORD your God and do not carefully follow all his commands and decrees I am giving you today, all these curses will come upon you and overtake you

team obama confusion and stupidity??

20 The LORD will send on you curses, confusion and rebuke in everything you put your hand to, until you are destroyed and come to sudden ruin because of the evil you have done in forsaking him


ineffective failed stimulus billions–unable to produce any jobs???


38 You will sow much seed in the field but you will harvest little, because locusts will devour it. 39 You will plant vineyards and cultivate them but you will not drink the wine or gather the grapes, because worms will eat them. 40 You will have olive trees throughout your country but you will not use the oil, because the olives will drop off.


foreign debt–loss of national sovereignty???

43 The alien who lives among you will rise above you higher and higher, but you will sink lower and lower. 44 He will lend to you, but you will not lend to him. He will be the head, but you will be the tail.


Sources:

Obama mocking Deuteronomy and Leviticus by name
http://www.youtube.com/watch?v=Hi-V_ilJu0w

The Bible: http://www.biblegateway.com

Posted by: Anonymous | November 23, 2010 8:06 PM | Report abuse

"You've never studied economics, have you?"

Which makes me wonder, did you? Are you now able to join all those other economists who want to believe they can see the future reliably? Those whose predictions fare no better, and often worse than a local weather forecaster? Who drive business reporters to lead with a sentence that almost always contains "unexpectedly?"

What value do economists offer? After all the Fed is loaded with them, and they just announced again they can't ever seem to get it right.

Posted by: infuse | November 23, 2010 8:12 PM | Report abuse

1. If you want Socialized Medicine...
2. If you want producers to be punished…
3. If you want non-producers to be rewarded…
4. If you want Unions to be paid off…
5. If you want permanent 9.6 pct. (cooked books) or 17.0 pct. (real) unemployment…
6. If you want GM owned half by the government, and half by unions...
7. If you want open borders...
8. If you want Black Panthers with night sticks outside polling stations…
9. If you want our president bowing to the War Lords of third world nations...
10. If you want the State Department apologizing to Communist dictatorships for our own "civil rights abuses..."
11. If you want the federal government suing states for enforcing the law…
12. If you want gay marriage…
13. If you want environmental fascism...
14. If you are intolerant of Christianity but…
15. …you want tolerance of everything that hates Christianity…
16. If you want a Mosque at ground zero...
17. If you want Iran to have nuclear weapons…
18. If you want to bankrupt our children’s future…
19. If you want to disband NASA…
20. If you love to be politically correct and want to limit the free of speech of others…
21. If you need to be told to vote, or are driven to the polls by a UNION bus…
22. If you like employees but hate employers…
23. If you believe minority status should give a person a leg up in being hired…


Vote for a Democrat!

Posted by: FormerDemocrat | November 23, 2010 8:27 PM | Report abuse

The unemployment rate will stay the same because Big Business, whose profits are the biggest in history, and the GOP have a signed agreement to keep the Economic Recovery at bay until Obama is out of office. What else could it be? Hugh profits for Business and the GOP still calling for their taxes to be lowered. All this to be payed by everyday Americans who have taken the worst hits from the Bush/GOP Economic Policies. The Grand Old Party declared war on most Americans back when Obama won the election. They have persisted in keeping the recovery from happening with the help of Big Business. And now they want more. So in the coming years Americans can only blame themselves for feeding into the GOP rhetoric that Obama has stymied Big Business. Because with the report that came out about Big Business profits, We know now that the GOP lied to every American. And we fell for it.

Posted by: sumo1 | November 23, 2010 8:36 PM | Report abuse

American corporations have one of their best quarters ever? The fed says it's going to be another tough year for the unemployed in this country. Something doesn't jive here. With all of these corporations making record profits don't they need to start hiring? Who is doing the work and buying the goods to make these profits? The people on unemployment? Hmmm maybe all this outsourcing has something to do with it.

Posted by: whess8 | November 23, 2010 8:37 PM | Report abuse

Talking points for Republican candidates****
*****2010/2011 Edition*************

Issues we support:
* Communist China / India
* Outsourcing of American jobs
* Foreign countries involvement in US politics
* Tax Evasion
* Tax breaks for rich/corporations
* Americans without health insurance
* Wall Street/CEO’s
* Terror(ists)

Issues we are against:
* Airport Security
* Functioning US government
* Employment of UNITED STATES citizens
* Free Speech
* Science
* Education
* Environmental laws
* Labor Laws
* Economic recovery

Please copy and paste so all members know how to respond during the next assault on the United States government and its people.

If you have any questions we can be reached at support_republicans@china.gov

Posted by: abe_froman | November 23, 2010 8:37 PM | Report abuse

Gobble gobble
There's no turkey on the table this Thanksgiving.

Posted by: TheBabeNemo | November 23, 2010 8:44 PM | Report abuse

For all the anti-Obama Yahoos out there in Zoo city who follow every word of Rush Limbaugh best radio demagogue since a few other warped guys in pre-war Berlin, here is my bet: You folks who spew your venom are currently no where on the scale of life's success, two years from now, or twenty whether President Obama wins re-election or not...you folks will still be in that same Zoo City, and still not be anywhere higher than you are on the scale of life's success.
So while you folks profess matters of economics, that you are obviously not qualified to speak while anonymously jacking each off with your idiocy, President Obama will neither know or care of your existence. And you my American Zoo City Inhabitants will still be on the outside looking in at thinking and intelligent people feeding you government benefits, you speak out against, but need to survive. YOU BETCHA!!

Posted by: Anonymous | November 23, 2010 8:54 PM | Report abuse

hi,
welcome to :
===== http://www.ftoto.com/======
everybody, take your time and a little bit.
This is a shopping paradise
Special!!
UGG Slippers
Cheap Lacoste Shoes
Fake MBT shoes
Replica NBA Jerseys
Fashion Jewelry
Watch

╭⌒╮⌒╮.’,”’,,’,.”,,’,”,.
╱◥██◣ ”HOES ’,”’,,’,.”.”,,’,.
|田|田田│ ”,,’,.’,”’t-shirt ,,’,.”
╬free shipping╬╬╬╬╬╬_

Posted by: Anonymous | November 23, 2010 9:05 PM | Report abuse

I have asked Ben to contact me before he makes another major decision - he hasn't. See what happens when he does things on his own.

Posted by: ramseytuell | November 23, 2010 9:15 PM | Report abuse

I have asked Ben to contact me before he makes another major decision - he hasn't. See what happens when he does things on his own.

Posted by: ramseytuell | November 23, 2010 9:15 PM | Report abuse

The People understand that Obama wants to make America into a Marxist/Socialist Society. The People REJECTED OBAMA and HIS POLICY. It is a Fact that Obama is determined to make America over into a Marxist/Socialist Society. The People have showed what they want. The don't want a compromise. The People want Obama STOPPED. Do what must be done to STOP Obama and his Marxist/Socialist Desire.
2 Thessalonians 2:11-12
11And for this reason God will send them strong delusion, that they should believe the lie, 12 that they all may be condemned who did not believe the truth but had pleasure in unrighteousness. You now know the truth. What is your excuse now.

Posted by: Anonymous | November 23, 2010 9:18 PM | Report abuse

What do you think about interracial love? and interracial dating online?
I really don’t know why they call it forbidden love.
Love is an emotion that transcends all boundaries of race, caste and creed.
Love does not see the color of the skin, nor the social status of the person. The All pervading emotion is very pure and it can stand the test of time, if the need so arises.
I am a black girl and I met a white guy on BLACKWHITEHUB dot com recently. What's your idea about interracial marriage? BLACKWHITEHUB DOT COM is a dating club for interracial singles to have fun together. Interracial is not a problem here, but a great merit to cherish!

Posted by: abulaw | November 23, 2010 9:23 PM | Report abuse

Its truly sad that the extreme left wing policies of Obama and the Democrats has damaged the nation so badly that millions upon millions will remain UNEMPLOYED for years.

Posted by: valwayne | November 23, 2010 10:40 PM | Report abuse

ATTENTION READERS - PLEASE TAKE ACTION

We have set up a website. This is a start for state by state unity. Next we will start going from county to county, and then city to city. Once we reach that point we would be able to organize active civil disobedience. Our new site is http://www.fromthetrenchesworldreport.com. When you get there go to the Organized Resistance page. We need as many people as possible to go to the site in order to get it into Google search engine so we can begin organizing. If you have any ideas as to how to improve the site please put it as a comment on the front page story.

Posted by: Barbara99er-GA | November 24, 2010 10:37 AM | Report abuse

For the past 10 years we've been importing tens of thousands, often over 100 thousand foreign guestworkers to take prime American white collar jobs.

These are not the hard-to-fill "Einstein" type jobs for the most part, but common business function jobs. That process continues today.

The time has come to ask "Why?" and to curtain - or better yet end - the foreign guestworker visa programs that make this possible. These are jobs that Americans can do, would love to have, and often recently were doing (until they got tapped on the shoulder and forced to train their foreign replacement).

Posted by: cruzdolores | November 24, 2010 11:14 AM | Report abuse

Wonderful.
Share a website with you ,
put this url in google search
( http://www.gobuyvogue.com )
Believe you will love it.
ACCEPT PYAPAL PAYMENT AND CREDIT CARDS
DELIVERY TO YOU DOOR TO DOOR
Free Shipping
About 5-7days you will get the stuff.
Let’s check out it

Posted by: Anonymous | November 25, 2010 4:45 PM | Report abuse

This Global sympathizing News website, is full of BS!

The newly elected Tea Party and a few Republican leaders haven't even had the opportunity to get behind the wheel yet - not until January until they start!

In the meantime we have to put up with Socialistic PSYOPS and abuse of Aerican citizens by losers Obama Pelosi and Reid who are passing Draconic against America legislation - I would like to see these people tried for Treason and hanged!

What are you talking about, Neil Irwin? Tring to fill the the dumbed down portion of American's heads with, "Look the GOP Party won and the Economy is not repaired!

The truth is this election and those to follow are not about Left Vs. Right it is about Constitutionalists, kicking out the Shadow Government that runs the Democrat and Republican Party! Along with ending the foreign Private Federal Reserve, who is by design and order, of the Rothschild's Central Bank in Britan purposely bankrupting America under Helicopter Ben Bernanke!

When is debt ever solved by prining more money on assets we don't have and going deeper into debt? Give your head a shake!

Until that is accomplished there will be no peace or economy or Liberty in America!

Stand up for your rights,demand an Audit, kick out the Federal Reserve, Protest the TSA kick them and their Scatter X-Ray Machines out of the airports! Do not fly to airports where the TSA is handling Security! If these scans are so important for security instead of oppression of the people - how is it they could be shut off with no questions and concerns on Opt-Out day?

Kick out any politician that is a member of any Elitist organizations - Bilderberg Group, Council on Foreign Affairs, Trilateral Commission, Club of Rome, Skull and Bones, WTO, WHO and the United Nations!

Refuse to deal with them and kick them out at the slightest opportunity!

Posted by: Anonymous | November 27, 2010 2:53 PM | Report abuse

Post a Comment

We encourage users to analyze, comment on and even challenge washingtonpost.com's articles, blogs, reviews and multimedia features.

User reviews and comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. Finally, we will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. Please review the full rules governing commentaries and discussions.




characters remaining

 
 
RSS Feed
Subscribe to The Post

© 2010 The Washington Post Company