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Posted at 2:42 PM ET, 02/16/2011

Fed raises projection on economic growth to 3.9% in 2011

By Jia Lynn Yang

Update: 4:02 p.m.

Federal Reserve policymakers expect the U.S. economy to grow as much as 3.9 percent this year, slightly higher than earlier projections, according to minutes of the central bank's last policy meeting.

The officials believe the recovery is on "firmer footing," the minutes say, but they remain concerned that the pace of growth isn't enough to put a serious dent in the country's nine percent jobless rate. They expect high unemployment to persist at least through the end of 2013.

The minutes of the Jan. 25 meeting, released Wednesday, also show that Federal Reserve members unanimously support continuing its ambitious program, launched in November, to boost the economy by purchasing $600 billion of Treasury bonds.

The minutes noted some discussion among committee members over whether to tweak the program, given that the economy has been picking up some speed.

According to the minutes, a "few members" said that a strong enough recovery could cause the Fed to pare back the bond-buying program. Others, however, said the outlook was unlikely to change enough in the next few months to justify altering the program before it's due to finish in June.

Paul Ashworth, chief U.S. economist at Capital Economics, said it's unclear how much credit the Fed's bond purchases deserve for the healthier economy. The program was intended to lower long-term interest rates, but rates have actually risen since the Fed began its initiative.

"In general terms, economic growth has been stronger since [the program] was announced," said Ashworth. "Stock markets have enjoyed a good rally, but whether that is just correlation or causation is another matter."

The Treasury purchases have been criticized by some Republican lawmakers, who fear it could stoke inflation.

But Fed officials said that despite the rise in commodity prices, they are not concerned about inflation because consumer price inflation remained low.

The Fed committee raised its 2011 GDP growth prediction from a range of 3 percent to 3.6 percent to between 3.4 percent and 3.9 percent.

They forecast that unemployment would be 8.8 percent to nine percent at the end of this year, and that the rate will continue to drop over the next two years. Officials predict the jobless rate will drop to 6.8 percent to 7.2 percent the end of 2013, still "noticeably higher than their estimates of the longer-run rate."

Meanwhile, new indicators released Wednesday showed that U.S. housing starts surged 14.6 percent in January compared with the month before, and wholesale prices rose more than twice what economists expected.

The U.S. producer price index excluding energy and food increased 0.5 percent, the largest jump since October 2008. All eyes are now on the consumer prices index report due Thursday.

By Jia Lynn Yang  | February 16, 2011; 2:42 PM ET
Categories:  Federal Reserve  
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Next: Economic agenda: Thursday, Feb. 17, 2011

Comments

I should believe this forecast, because ....?

Posted by: richard36 | February 16, 2011 3:14 PM | Report abuse

Maybe it's time to stop telling people that tax cuts for the very rich translate into jobs and prosperity.

Posted by: Anonymous | February 16, 2011 3:27 PM | Report abuse

@richard36: "I should believe this forecast, because ....?"

Because there isn't any other that's more reliable or less suspect to bias.

Unless you have a reliable crystal ball?

Posted by: egc52556 | February 16, 2011 3:32 PM | Report abuse

Those jobs people complain have been shipped overseas are not going to come back.

It doesn't matter which party you vote into power, it doesn't matter how many tax incentives you give these corporations, how many tax cuts or tax hikes you give to individuals - these jobs are not coming back.

What have you done to prepare yourself for this modern economy? 9% unemployment may be permanent, at least until the people who are unemployed get some education, make themselves more useful.

Unless you're willing to work like a Mexican - no pay, long hours, uncertain future and certainly no thanks at the end of the day - then you're going to be stuck at the level just above the bottom.

And who needs you there?

Don't expect our pandering politicians to actually do something other than lie to you about it. You're a fool if you do.

Posted by: Anonymous | February 16, 2011 3:34 PM | Report abuse

Next we need to disprove the other GOP nonsense by raising taxes on those who can best afford it. This will help close the deficit, will not adversely affect the unemployment rate, and free up some funds to allow for some necessary growth in energy and transportation which WILL create some significant numbers of jobs

Posted by: Anonymous | February 16, 2011 3:37 PM | Report abuse

I don't know why the "experts" havent figured it out yet, or maybe they have but are saying otherwise, but 9% unemployment is here to stay. It will remain in that ballpark for the rest of our lives. I have no doubt about that whatsoever.

Posted by: red2million | February 16, 2011 3:42 PM | Report abuse

are you kidding me. You mean economic growth without jobs. The growth is driven by inflation...plain and simple. this bubble will burst and the SP 500 will be truly go to 500

Posted by: Anonymous | February 16, 2011 3:46 PM | Report abuse

The Fed "Politburo" is at it again. Just deny that inflation is affecting consumer prices(as long as you don't count food and energy prices). And keep printing money(buying Treasury bonds). And the economy is growing(but not jobs). But, don't worry about it; we're in good hands.

Posted by: allamer1 | February 16, 2011 3:46 PM | Report abuse

@anonymous: "Maybe it's time to stop telling people that tax cuts for the very rich translate into jobs and prosperity."

Or test the theory: give a tax cut (or credit) to anybody who creates a new job and/or hires somebody who is now unemployed.

How much of a tax cut/credit will it take to motivate employers?

Posted by: egc52556 | February 16, 2011 3:46 PM | Report abuse

Should we think about eliminating the unemployed and their families so we can be fully employed?
Would that make you happy?

Posted by: nychap44 | February 16, 2011 3:47 PM | Report abuse

Unfortunately, this report is likely based on a best case or nearly best case scenario. Let's not forget that the Federal Reserve is headed up Bernacke. This is the same man who tried to say that inflation is not currently a problem a few weeks. Have you been to a grocery store lately? Have you priced gas lately, or seen the recent price of clothes? This report is likely a bunch of BS.

Posted by: liberalsareblind | February 16, 2011 3:47 PM | Report abuse

They know because the CBO told tell so. ROFL

Posted by: texasoil | February 16, 2011 3:49 PM | Report abuse

The Fed should take its forecast and estimates and shove it where the sun does not shine. The taxpayers are fed up with this perpetuation of fundamentally flawed economic system. Take a hike Bernanke.

Posted by: Anonymous | February 16, 2011 3:51 PM | Report abuse

Need to be careful here.
The Republicans will do all they can politically to stifle and retard any significant economic recovery under Obama's administration. Their leadership's avowed intent is to make sure Obama and the Democrats are defeated in 2012.
Keeping unemployment high is one way to accomplish that.

Posted by: Anonymous | February 16, 2011 3:56 PM | Report abuse

Bernacke Geithner and all the rest did not see this recession coming when I did and cashed out in July 08. And you call them experts? You really expect me to believe these guys? Come on people get smart. Only listen to the people that know. Leave politics out of it when it comes to the economy and investing. There is an old saying. All the smart people go to Wall street, the dumb goes to Washington. The real money on Wall street not Washington.

Posted by: texasoil | February 16, 2011 3:58 PM | Report abuse

We we are happily busy and getting busier.

Just hope the GOP does not kill the progress.. AGAIN !!

Posted by: pdq5 | February 16, 2011 3:59 PM | Report abuse

This forecast is not believable. The Fed has a poor record for economic forecasts.

Posted by: Anonymous | February 16, 2011 4:00 PM | Report abuse

Here is a suggestion to save hundreds of billions of dollars with no downside. Start by cutting the $4 billion overt and $4 Billion under the table that we give Israel every year to occupy other people's land and keep 2 million people imprisoned! We would save money, show the world that we are being fair (for a change!) and take a big step towards getting our troops home and then saving hundreds of billions but stopping those two ridiculous, un-winnable wars (that we got into as a result of our 60 year blind support of Israel). How about it folks? You KNOW it's the right thing to do. Write to your congressman, tell him to get off the AIPAC dole and do what's right for the United States, for a change.

Posted by: alfa67 | February 16, 2011 4:00 PM | Report abuse

Gee, a prediction of economic growth from the Ministry of Truth , well timed to help the same Dear Leader who told us that the Stimulus would keep unemployment below 8%. An economic forecast from the Obama regime has the credibility of a Soviet Crop Report.
By the way, as an aside to ANONYMOUS, this is the USA, not the USSR, and we do not tax people just because other people "think they can afford it." Under the Constitution (which was neither written nor inspired by Karl Marx) all American citizens stand equal before the law. Tax rates that penalize hard work and thrift , based on what a person has rather than the effort expended to earn it, are unjust regardless of what you, or anyone else, "thinks the other guy can afford". I feel that if one person pays twice the taxes of another, then that person ought to get two votes at election time to honestly represent his or her stake in the game.

Posted by: MARKM2 | February 16, 2011 4:03 PM | Report abuse

Gee, a prediction of economic growth from the Ministry of Truth , well timed to help the same Dear Leader who told us that the Stimulus would keep unemployment below 8%. An economic forecast from the Obama regime has the credibility of a Soviet Crop Report.
By the way, as an aside to ANONYMOUS, this is the USA, not the USSR, and we do not tax people just because other people "think they can afford it." Under the Constitution (which was neither written nor inspired by Karl Marx) all American citizens stand equal before the law. Tax rates that penalize hard work and thrift , based on what a person has rather than the effort expended to earn it, are unjust regardless of what you, or anyone else, "thinks the other guy can afford". I feel that if one person pays twice the taxes of another, then that person ought to get two votes at election time to honestly represent his or her stake in the game.

Posted by: MARKM2 | February 16, 2011 4:04 PM | Report abuse

Amazing isn't it - these guys keep putting out forecasts and they are NEVER right.......then they put out another false forecast.

Posted by: Realist201 | February 16, 2011 4:06 PM | Report abuse

Amazing isn't it - these guys keep putting out forecasts and they are NEVER right.......then they put out another false forecast.

Posted by: Realist201 | February 16, 2011 4:12 PM | Report abuse

Oh BOY, Fed raises projection on economic growth to 3.9% in 2011
IM Suprised they didnt raise it to 10% and predict unemployment will drop to around 1%, SO Lets all go out and make loans and celebrate by going to stores and buy more things. Whoo Hoo, Im going out today to buy books at borders cause the FED says were goinna do better. GIVE ME A BREAK. The fed needs to stop spending foolishly and stop sending jobs over sea's and last of all lower the oil prices cause verytime it goes up it hurts the economy!

Posted by: Anonymous | February 16, 2011 4:14 PM | Report abuse

"By the way, as an aside to ANONYMOUS, this is the USA, not the USSR, and we do not tax people just because other people "think they can afford it.""
----------------------------
MarkM2: The Tax Code is an unfair, biased and illogical document that is designed to encourage (or discourage) certain economic behavior as well as collect money for the government.

So yeah, it is just as reasonable to tax people because other people think they can afford the tax as it is to CUT their taxes on the theory that they "earned" the money and deserve to keep it.

Posted by: shadowmagician | February 16, 2011 4:20 PM | Report abuse

MARKM2:
"I feel that if one person pays twice the taxes of another, then that person ought to get two votes at election time to honestly represent his or her stake in the game."

Since the wealthy can now effectively buy as many votes as they want, this already happens.

Posted by: presto668 | February 16, 2011 4:21 PM | Report abuse

Economic growth with no decernible increase in employment is worthless. The deficit doesn't decrease significantly because few people have jobs and the wealthy are still getting their unnecessary tax cuts. The rich get richer and everyone else treads water.

Posted by: hughsie48 | February 16, 2011 4:23 PM | Report abuse

With the next general election looming you can bet that there will be at least two consecutive COLA's for SS, disabled and VA vet's.

Posted by: KBlit | February 16, 2011 4:28 PM | Report abuse

and who believes a word coming from obama or the fed?

Posted by: docwhocuts | February 16, 2011 4:30 PM | Report abuse

I live in Florida in what was once a middle class neighborhood. Every 3rd home is empty, either foreclosed or abandoned by the former owners. Most were either over appraised when sold or the banks talked people into taking the equity out of their over appraised homes at higher payments. Florida relies on tourists & home construction. Both are flat. People have lost jobs, homes have dropped up to 50 % in appraised value & the tourists are staying away. How can the government keep squawking about increased jobs & a booming economy ? Maybe the rich with all their tax cuts can buy more gold toilet seats or the big shots at the banks can get millions in bonus money, but the average person is in deep trouble & the government covers us up like a cat covers up his crap in the litter box.

Posted by: wasaUFO | February 16, 2011 4:31 PM | Report abuse

U.S. Debt-to-GDP Ratio Tops 97% with No Debt Reduction Proposals

Many corporate-owned politicians, pundits and other propaganda peddlers appear to be deliberately distorting the difference between "debt" and "deficit" while at the same time heralding "deficit reductions" that are anything but. To clarify in context, the U.S. national "debt" is how much the American government owes, and is presently $14.1 trillion and rising. The U.S. federal budget "deficit" is how much that debt increases in any given fiscal year, and for the current year is projected to be $1.5 trillion. In the real world, a "deficit reduction" would be an actual or mandated increase in revenues or decrease in expenditures which has the effect of decreasing a given year's deficit (ie. decreasing the increase in the debt for that year). And unless and until a deficit reduction is large enough to not only eliminate the deficit but create a "surplus" that is applied to debt retirement, A DEFICIT REDUCTION DOES NOT REDUCE THE DEBT. Furthermore, reducing planned increases in future spending may avoid a contingent deficit increase, but that is not the same thing as actual deficit reduction.

The American Sheeple need to snap out of their TV/iPhone/Facebook-induced trances and listen closely to what the talking heads are saying: The national debt is not the same thing as the federal budget deficit. Deficit reductions do not necessarily (and in fact rarely) result in debt retirement. Much of what Washington is currently proposing is not really deficit reduction anyway. And even if it was, it's all too little and too late:

http://watchingfrogsboil.com/proposed-federal-budget-deficit-reductions-do

Posted by: Anonymous | February 16, 2011 4:33 PM | Report abuse


This is coming from the same inept administration of Barry the incompetent boob Obama, that would have you believe the recession ended in July, 2009. That administration.

Miserable failure Obama

Posted by: screwjob23 | February 16, 2011 4:38 PM | Report abuse

Meanwhile Canada will have twice that GDP growth, because they won't be fighting two foreign wars of Republican adventure that serve only to provide Red China with cheap resources ...

And they didn't do tax cuts for the ultra-rich who then outsource jobs overseas and ship the capital overseas as well.

...

Results matter. 3.9 pct GDP growth means nothing if we don't see 500,000 US jobs for American citizens created each and every month.

Not H1-B visa holders from India. Not illegal workers hired by Republican CEOs and CFOs who get "fined" 0.00001 percent of the profit from that "arrangement" with no risk of personal asset seizures or jailtime.

American jobs.

In America.

...

PERIOD.

Egypt and Tunisia can happen here too.

Posted by: WillSeattle | February 16, 2011 4:39 PM | Report abuse

i guess obama plan is working.

Posted by: Anonymous | February 16, 2011 4:42 PM | Report abuse

Don't believe the money printers. More printing will mean more inflation which means no growth.

Read the headline from the UK.


http://nakedempire.wordpress.com/

Posted by: nakedempire | February 16, 2011 4:42 PM | Report abuse

Every time you go shopping check the "made in" label.
The world is populated with billions of people who will work for a $ a day. That is not a bad thing for people living in poverty.
The problem is America insists on using housing as a buffer to global realities. That is why we have millions of people who will never find a decent paying job again unless we use housing once again.
We are where are because we have politicians who live in the moment and in the past. And the third world who are mapping out their future.

Posted by: Anonymous | February 16, 2011 4:44 PM | Report abuse

"Egypt and Tunisia can happen here too."

Yeah, and the south is going to secede once again.

Empty threats are not only pointless, they cause people to laugh at you.

Posted by: Anonymous | February 16, 2011 4:50 PM | Report abuse

I checked my Palantir. It appears that the Federal Reserve members are totally unaware of Sauron massing his evil armies in the land of shadow. Not to mention Southrons coming forth from Harad. Ill winds are blowing, and all the Federal Reserve can do is project a lousy 3.9% growth? It's obvious we need at least 5% growth to resist the force that will soon issue from the Black Gate.

Posted by: MarkDaniel | February 16, 2011 4:52 PM | Report abuse

Despite the rosy bs the politicians want to keep telling us, the only significant job growths for the next several decades will be in the so-called emerging economies, like China and India, thanks mostly to the American corporations contracting jobs to those for cheap labor - whether unskilled or skilled. And when it's no longer cost-effective to hire the workers there because their labor costs rise in the future, the American companies will turn next to South America or Africa to do the same, but they won't bring those jobs back to America. So, if there aren't enough Americans then who can afford to buy their products made overseas, hey, no worries, by then there will be enough Chinese and Indians who can and they'll sell to them, instead. In the end, most Americans won't be even worthy as their customers, let alone their employees. Now, that's what American brand of capitalism and free trade is all about, my fellow Americans!

Posted by: TalkingHead1 | February 16, 2011 4:54 PM | Report abuse

The Fed only did QE2 to mollify the Chinese so they could steadily reduce their position in U.S. Debt without dumping it. There was no economic justification for it. All the speeches by the Fed and Treasury are just eyewash and mis-information for the masses.

The U.S. is the biggest currency manipulator on the planet.

Posted by: wesatch | February 16, 2011 4:54 PM | Report abuse

Yes, you can have economic growth without adding jobs people!

It's showing that US companies are operating more efficiently and still getting the same results.

Once we reach that optimal level of efficiency, and then continue to grow, then you'll see more jobs ... but that's why jobs are always a lagging indicator.

Posted by: vmidurk | February 16, 2011 5:01 PM | Report abuse


They have been Obama's Wars since January 21, 2009. So far, Barry the chickenhawk who never spent a day in uniform, has sent 1,050 American service members to their deaths since taking office.

Posted by: screwjob23 | February 16, 2011 5:04 PM | Report abuse

exactly the rate of inflation predicted under QE2.

inflation.....

who "gets" the inflated money?

ever ask yourself that question?

no? and you're commenting now?

Posted by: docwhocuts | February 16, 2011 5:05 PM | Report abuse

As long as the Republicans can keep the rich rich and the poor poor they're one happy bunch of terminally greedy, ethically bankrupt pond scum.

Posted by: Anonymous | February 16, 2011 5:05 PM | Report abuse

Many comments about 9%unemployment is the new normal, and is here to stay. Folks the U.S. has no "centrally" managed economy, no "industrial" policy, not even an "energy" policy. What we have is a "consumer" driven economy, or what some might call a "Wal-mart" economy. There is no policy that drives acceptable employment; no policy for industrial output; no policy for acceptable "balanced trade". No one is dictating any kind of national policy for the economy, except, of course, the FREE MARKET ideology. There is a believe in the "INVISIBLE HAND" of the market, that will efficiently allocate resources, based on the "LAW OF SUPPLY AND DEMAND". You don't need to be much of an economist to see that this THEORY is very much discounted by other successful economies, working towards world domination. Capitalism turns round and round on unmanageable cycles of boom and bust. What will be the next "big idea" from our mythical economists?

If we can't figure out how to put people to work, then we can't "win the future". Everyone has a role to contribute to our collective success. The role of government is to help people achieve that success.

Why bother with public education if we accept unemployment as the "new normal"?

Posted by: Anonymous | February 16, 2011 5:09 PM | Report abuse

dear wesatch:

excellent point.

we manipulate because of our WWII obligations.

The chinese manipulate for "profit".

Posted by: docwhocuts | February 16, 2011 5:09 PM | Report abuse

It's time for Obama and his liberal gang to begin a massive hiring of federal employees. That won't do much to solve the budget problem, it's true, but it will get Democrats what is uppermost in their minds, another term for Obama. First things first- the country can wait.

Posted by: mhr614 | February 16, 2011 5:26 PM | Report abuse

It's time for Obama and his liberal gang to begin a massive hiring of federal employees. That won't do much to solve the budget problem, it's true, but it will get Democrats what is uppermost in their minds, another term for Obama. First things first- the country can wait.

Posted by: mhr614 | February 16, 2011 5:26 PM | Report abuse

Should you believe this??? OF COURSE NOT! But we all know that because we read financial blogs and sites. What about the general public, the voting public?? The fed is saying no inflation, faster growth, etc. Folks, they will never admit anything. Never admitted the housing collapse, or never saw it coming.

http://precisiontradingsolutions.blogspot.com

Posted by: kjordan3637 | February 16, 2011 5:28 PM | Report abuse

In Obama's budget there is three billion in spending on the "green" agenda. A $3 billion spending spree on energy with pet projects such as wind getting $127 million, an 88% increase. Solar will get $457 million, an increase of 44%. Then there is a heavy infusion of cash to the unions with GM getting $588 million, an increase of 93%. If that is not enough spending for you, there will also be another cash for caulking giveaway or some such. These totals do not include the the $53 billion for the high speed rail that is suddenly so vouge.

It all sounds great. A progressive nirvana. The only problem is: WE DON'T HAVE ANY MONEY !!!

And here we have this Washington Post article and the Fed, the US Governments own laundry, telling us that everything is gonna be just great.

Every month, CBO prepares a two-page balance sheet that summarizes what the government is spending and taking in. The latest version, released Monday, reports that Uncle Sam has paid $80 billion in net interest on the federal debt through the first four months of the 2011 fiscal year.
That represents a 9.1% increase over the same period last year.

I'm feeling fine, aren't you?

Posted by: Anonymous | February 16, 2011 5:28 PM | Report abuse

Economy used to serve people. Now people serve the economy. Sad to hear the economy is winning.

Posted by: ratl | February 16, 2011 5:29 PM | Report abuse

Obama’s Unemployment Rapture

The Rapture is a Christian Doctrine in which Christians disappear

Obama thinks that since all the other Messiahs get a Rapture, he should get the same–

so Obama has unemployed Americans “disappear” from the Unemployment numbers after 6 months

see?? Obama’s Unemployment Rapture

Obama--on Jihad against Free Enterprise, Jobs and America

Posted by: Anonymous | February 16, 2011 5:56 PM | Report abuse

I've noticed that when a "projected..." or "expected..." positive story on the economy comes out, the Dow goes up. Then a "oops we were wrong about the projected..." story hits the news about a week later, the Dow goes down. Hmmm

Posted by: thebink | February 16, 2011 6:02 PM | Report abuse

Obama says the economy will increase at 5%. The economists say it will increase at 2%. Obama says the unemployment rate is 9%. Gallup says it is 1.1%. in his two years in office Obama has done little more than lie to America, so who do you believe?

Posted by: Anonymous | February 16, 2011 6:06 PM | Report abuse

Read "Empire of Illusion" by Chris Hedges.

America is going down, and fast.

Posted by: Anonymous | February 16, 2011 6:09 PM | Report abuse

Does anyone believe what the government says any more? Obama has refined the art of double talk so well that its only place is liberal media headlines. It's getting to the point where if Obama says it, it ain't true. Please Wash Post, you can become a better paper by ignoring such nonsense.

Posted by: Anonymous | February 16, 2011 6:19 PM | Report abuse

Headline is a little rosier than the rest of the article - hmm - seems to be a WaPo trait under this administration.... Here's one - "Obamba's GREAT" ....at being the worst prez ever - Carter celebrates - says "monkey is off my back - thank God! I didn't think it would ever happen!"

Posted by: Anonymous | February 16, 2011 6:25 PM | Report abuse

I don't think you will have to fret about the unemployment rate. In January, the economy added 36,000 jobs and the rate dropped almost one half point. The embedded, career Democrat staffers in the Department of Labor are going to look out for our "brilliant young president". Those are the numbers that are completely bogus.

Posted by: VastRightWingConspirator | February 16, 2011 6:29 PM | Report abuse

They missed the crash and now they are going to miss the inflation take off. Sure core inflation is modest -- and who needs to eat or drive? If food cost inflation is causing rebellions around the world, how long can it be before the effects are felt here? Raising taxes before the growth rate hits 5% would do the job needed, but that won't happen, so starting to sell off those bonds by June is essential.

Posted by: sonberg | February 16, 2011 6:45 PM | Report abuse

Any chance of getting a breakdown of what the forecasted recovery is to look like across the Nation and across our economic sectors for 2011 ? And I ask becuase there are States that are in kindof an emergency budget review process today. And given the pay cuts and benefit reductions that are being discussed at lower levels across America I'd like to get a better understanding of the impact that these everyday changes will have on our economic forecast today.

Posted by: jralger | February 16, 2011 6:47 PM | Report abuse

Let's see...
They told us late last year that we were "seeing a turnaround."
Last month, they told us that fascist-socialist China was driving up commodity prices everywhere.
Then, in the last two days, "experts" (from jolly old England) tell us, "Oh no, by Job, we don't see inflation. No, not here. Nope."
Today, we're on again???
Does everyone understand that Wall Street & the Old Media conspire day in and day out to keep the average investor trapped in a flushing toilet of misinformation, disinforamtion, "slush fund" accounting standards, Smiling-Happy People on the Boob Tube, etc.?
Amerika, if you want "change," then cash in your Wall Street Casino chips NOW!
You KNOW, in your heart of hearts, they're simply biding their time for the perfect moment to yank that rug out from under you.
And guess what? They've conveniently kept interest rates low so you can still make those wild bets that will feather THEIR nests.
Bring them to their knees!!! Without money, they are bugs fighting over chunks of dog vomit.
Amerika needs a turbo enema now!

Posted by: BigSea | February 16, 2011 6:56 PM | Report abuse

The point missed by the Reich Wing is that the lack of US jobs is not the President's fault.

It's Congress' fault - specifically the Republicant House.

Expect to be fired - all of you.

Every single one.

Results matter.

Not excuses.

Posted by: WillSeattle | February 16, 2011 6:59 PM | Report abuse

To the bi-lingual resident of 1600 Pennsylvania Avenue: "Buriani, Obama." for the linguistically challenged: "..Ta-Ta" in Swahili!

Posted by: fregameeate | February 16, 2011 7:21 PM | Report abuse

The "Reich" wing? Is that "Reich" as in Robert Reich, an Obama acolyte--with heavy emphasis on "lyte.?" And your right. Every Government "worker", (note the quotes), should be summarily dismissed. Government Unions are just like Thom McCann--both have 50,000 loafers!

Posted by: fregameeate | February 16, 2011 7:24 PM | Report abuse

Baloney. How about an article that shows how badly these so called "experts" are when it comes to forecasting economic results. The pro obama cretins, gloat at how their messiah is the answer. Absolutely pathetic.

Posted by: nomobarry | February 16, 2011 7:26 PM | Report abuse

Get rid of Republicans and tea partiers. Problem solved.

Posted by: camera_eye_11 | February 16, 2011 7:31 PM | Report abuse

More bad news for the Grand Offal Party. The GOP specializes in getting our USA into Great Depression/Recessions. Democrats specialize in getting us out of Republican messes.
Republicans want our econony to fail while President Obama is in office. They want the Obama presidency to fail. So, obviously, they want our nation to fail.
New kind of patriots!

Posted by: jimsteinberg1 | February 16, 2011 7:32 PM | Report abuse

Yup, Boehner/McConnell. You were right all along. That stimulus money wasn't going to do a damned thing.

Right does not make you correct, though. If you and McCain had been in charge unemployment would be 15% or more and climbing.

Posted by: PoliticalPrisoner2012 | February 16, 2011 7:55 PM | Report abuse

Preppers Depression is calling for a balanced budget with closed business doors for 2 years to starve out the fatty corrupt feds.

The Preppers Depression method of balancing the budget will be effective at spending decrease, and it doesn't appear that the people see it as any problem for themselves or the future generations to control it this way.

The Fed ran people out of homes and shut off bank loans, so they have little to lose by bring down the goons who did that to them.

Posted by: dottydo | February 16, 2011 8:35 PM | Report abuse

We will never compete with $2 a day Chinese workers. Currency manipulation, lax environmental laws, state supported export industries, and a trip to the Gulag by any Chinese worker daring to organize a union, this is how they do it. Why do we accept it?

Posted by: magnifco1000 | February 16, 2011 9:15 PM | Report abuse

High unemployment should not be taken light or as a given because it equals civil and economic disturbances as the unemployed demand either jobs or payments from state or federal governments.

No matter how high the stock market is or how rosy the government's reports are the danger persists. The danger lies in the people's adverse reaction to all the unemployed hanging around and demanding things, as well as in the unemployed's right to expect better from the government in making jobs possible. This situation has been historically demonstrated in Germany and other European countries since the WW1.

Now, what are we really going to do about it? Are we really going to drop globalization theories and practices? Are we willing to pay more in the marketplace and buy things made in the United States?
Are we willing to make the dollar stronger and keep foreign buying of America at the risk of fewer exports? It is not easy!

Posted by: worldweary2 | February 16, 2011 9:19 PM | Report abuse

No to the Republicans:

No to outlawing Unions.
No to more tax breaks for the top 1%.
No to repealing Child Labor Laws.
No to Eliminating Social Security and Medicare.

No, no, no!!!

Posted by: magnifco1000 | February 16, 2011 9:22 PM | Report abuse

Of course we know that the 9% figure is a flat out lie. So, when you base your forecasts on lies it follows that......

Posted by: Single_Payer | February 16, 2011 9:26 PM | Report abuse

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Posted by: zhenge155 | February 16, 2011 9:27 PM | Report abuse

"But Fed officials said that despite the rise in commodity prices, they are not concerned about inflation because consumer price inflation remained low."

They obviously don't buy gas or food. Oh, that's right, the consumer price index doesn't count food or gas. Too bad we can't.

Posted by: Anonymous | February 16, 2011 10:05 PM | Report abuse

There are no jobs. The government is bankrupt. Inflation is on the edge of exploding. The housing market is bloated with unsellable inventory. The middle east is aflame. The Chinese communists hold a trillion dollars worth of our bonds. And the fed forecasts strong growth. They are brilliant. They have it all under control.

Posted by: Anonymous | February 16, 2011 10:28 PM | Report abuse

It is obvious that government economists who predict anything in this volatile world are just as apt to be successful as any of us posting on this article, myself included.

The "dismal science" is apparent with every prognostication from government people, think tanks, Democrats and Republicans alike.

The truth is that there is no "rational man" (the staple of economics)who deals in goods and services at any time in any manner. It is a wild wild world out there!

Posted by: worldweary2 | February 16, 2011 10:47 PM | Report abuse

"Those jobs people complain have been shipped overseas are not going to come back.
It doesn't matter which party you vote into power, it doesn't matter how many tax incentives you give these corporations, how many tax cuts or tax hikes you give to individuals - these jobs are not coming back.
What have you done to prepare yourself for this modern economy? 9% unemployment may be permanent, at least until the people who are unemployed get some education, make themselves more useful.
Unless you're willing to work like a Mexican - no pay, long hours, uncertain future and certainly no thanks at the end of the day - then you're going to be stuck at the level just above the bottom.
And who needs you there?
Don't expect our pandering politicians to actually do something other than lie to you about it. You're a fool if you do.
Posted by: Anonymous | February 16, 2011 3:34 PM | Report abuse "

there are thing the goverment can do...
but why would it...
clean out the dems and see if the republicans can deliver...

Posted by: Anonymous | February 16, 2011 11:04 PM | Report abuse

I really enjoyed your post. It was very interesting.

Posted by: Tuan Parter | February 22, 2011 6:12 PM | Report abuse

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