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01/20/2011

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BJ

Perhaps it is working, as one guy recently commented that his 401K is back to being a 301K, up from being a 201K. He also went on a trip, to Texas.

Of course, if household incomes have decreased to their level in 1997, while fuel and food prices are up significantly, one has to wonder were the real spending power is going to come from. Certainly based on internet sales, people aren't spending.

http://www.consumerindexes.com/

Apparently not everyone is buying the Fed's master plan.

http://money.cnn.com/2010/09/07/markets/young_investors_risk_appetite/index.htm

As a business owner, internet based, I still have to ask, where are my customers? I haven't seen a recovery. In fact, my gross profit is half of what it once was. In some cases, I can't give away my inventory. I recently spoke to another business owner who lost almost $20,000 last year. They are living off Social Security, not their business. As I stated a couple days ago, another business owner was asking about food stamps.

Even with the increase in retail sales, I have to wonder about profit margins. Supposedly, everyone is bargain hunting, and food producers have, reportedly, been absorbing much of the price increases. Are sales increasing while profits and business viability decreasing?

Consumer Metrics Institute recently identified a demographic of business owners Washington seemingly overlooks, "the chronically starving self-employed". I know several, myself included.

Bernanke is perhaps primarily concerned with the Baby Boom Bubble, who desperately need their 401Ks to return to prior levels. Even so, there is still that one problem of, people max out their spending in their 40s. Can we all work within the medical industry, which will eventually implode under the wait of the Baby Boom Bubble and 30 million newly insured, and no "acknowledge" spending limits or "rationed" care?

Dennis

I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property - until their children wake-up homeless on the continent their fathers conquered.
~ Thomas Jefferson

John Theodorou

"The real question we should be asking is why Ben didn’t add this third policy objective back in 2007 and save us from a whole lot of pain over the next 18 months?"

Because his aim once the GFC took hold was to lower interest rates for home buyers to boost the domestic economy and send us back to party like it was 1999. Having failed in that mission, instead exporting inflation and instability at home and abroad, he has re-tasked juicing the stock markets as his ambition all along. Sound like a familiar policy, reminiscent of the justification for the Iraqi invasion, which seemed to change every 6 months. Oh, Ben, if there still are history books written in 100 years time, what will they say of you, clown?

Dennis

Sorry...the actual real question we should be asking is how to get rid of the Federal Reserve altogether.

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