In what is beginning to seem like an echo heard ‘round the world, the Federal Reserve announced the economy is losing strength. After a two-day meeting, the Fed will not take any new immediate actions, but they “will provide additional accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability.”
Though the statement seems rather vague, Dan Greenhaus, chief global strategist at BTIG LLC told Bloomberg, “They were as blunt as you can get without actually pulling the trigger. They’re saying, ‘Hey, things are not good and we’re an inch away from easing.”
Bloomberg Businessweek reports that the next big news regarding the health of the economy will come this Friday when the U.S. Labor Department releases its July hiring and unemployment trends report.
The country is also waiting for the resolve of issues surrounding the fiscal cliff, and what will happen as tax cuts expire and deep spending cuts begin. Fed Chairman Ben Bernanke said that depending on Congress, a recession could follow if the country falls off the cliff.
The European economic crisis is also intensifying worries in the US economic and labor markets.
Its not the end of the world when the us dollar, the euro, or any fiat currency expires worthless. It has happened numerous times in this country already. (GASP) Yes, it's wildly disruptive but history has shown the failures of government economic directive time and tine again. The monetary and political scientists of our day are simply waving the magic money wands of the past for the same reasons and to the same aims as their predecessors.