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Impeach George Bush
A Pattern of Lies Emerges
"The British Government..." "Government Economists ... suggests that..." Since Bush doesn't have a clue, he quotes for cover.
Source: The TIP, 2003-07-15
Candidate: The FED
'The president has received information from private economists, from government economists that suggests that we are starting to see more good signs on the economy,'' White House press secretary Ari Fleischer said Wednesday. ''However, the economy still remains mixed.'' That was a month ago.
Today:
Greenspan told House lawmakers that the Fed remained worried about the possibility of deflation, even though he characterized such an outcome as remote. If it occurred, it would threaten extensive damage, he said, especially if the economy were to be hit by any type of shock.
Greenspan reiterated his concern that inflation had fallen to such a low level in this country that there was a danger that the sluggish economy might actually trigger a prolonged bout of deflation. That would be a destabilizing period in which prices are actually falling, something not experienced in the United States since the Great Depression of the 1930s.Greenspan presented the committee with the Fed's latest economic forecasting, predicting that the economy would grow this year in a range of 2.5 percent to 2.75 percent. That represented a significant cut from the Fed's Febraury forecast, when it had predicted growth this year would be a faster rate of between 3.25 percent to 3.5 percent.
The economy, weighed down early in the year by falling consumer and business confidence reflecting worries about the Iraq war, has shown disappointing growth so far in 2003. The sluggish growth pushed the unemployment rate to a nine-year high of 6.4 percent in June.
Greenspan in his testimony noted a number of promising developments that the economy should post stronger growth in the second half of his year, including the fall in interest rates and President Bush's latest round of tax cuts.
Greenspan was most optomistic about the economy when the government was in surplus, $283 Billion, in 2000. Today, the CBO estimated a $450 Billion deficit for fiscal 2003 and at least that much for 2004. And those estimates don't include spending on the Iraq occupation or another military excursion to Liberia.
For 2004, the Fed predicted a significant rebound in economic growth to 3.75 percent to 4.75 percent, a rate that the Fed said could bring the unemployment down to as low as 5.5 percent by the end of the year.
Greenspan emphasized that the central bank was prepared to leave interest rates low for as long as necessary to achieve this optimstic forecast because of a belief that the threat of deflation, not inflation, was the biggest concern at the moment.
''Policy accommodation aimed at raising the growth of output, boosting the utilization of resources and warding off unwelcome disinflation can be maintained for a considerable period without ultimately stoking inflation pressures,'' Greenspan said.
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