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Posts Tagged ‘2011’

Fed chief expects high unemployment, economic growth in 2011

January 24, 2011 Comments off

Vicki Needham

Unemployment will remain high, the nation’s economy could expand by 4 percent and interest rates may need go up, Federal Reserve Bank of Philadelphia President Charles Plosser said Monday.

“If economic growth in the United States continues to gain traction and the prospects begin to look ever better, it might be time for us to begin thinking about how do we begin to gradually take our foot off the accelerator,” Plosser told reporters after a speech at the Central Bank of Chile in Santiago, according to news reports.

Plosser said he may favor a rate increase if economic growth necessitates a change.

“It might. I’m not going to rule that out,” he said.

The central bank has said that it plans to keep short-term interest rates low for an “extended period.”

During Monday’s speech, Plosser also predicted that the U.S. could grow between 3 percent and 4 percent this year.

The Fed’s plan to purchase $600 billion in government debt will probably continue through June while the nation’s 15 million unemployed look for work, although Plosser didn’t rule out pulling the stimulus funds back earlier.

“It could end earlier if economic conditions call for it, but right now I’m not sure that that’s the most likely outcome,” he told reporters. “It obviously creates challenges for some countries because of appreciating currencies. But I think that will pass. Those are short-run issues.”

Plosser has expressed concern about whether the Fed’s quantitative easing, also known as QE2, will spur economic growth while lowering the jobless rate that has remained above 9 percent for 20 months.

“Monetary policy is not going to be able to speed up the adjustments in labor markets or prevent asset bubbles, and attempts to do so may create more instability, not less,” he said.

“Expecting too much of monetary policy will undermine its ability to achieve the one thing that it is well-designed to do — ensuring long-term price stability.”

QE2 has brought harsh criticism from some lawmakers on Capitol Hill who argue that the plan could devalue the dollar and cause inflation.

Food Crisis of 2011

January 4, 2011 Comments off

The Food Crisis of 2011

Addison Wiggin
Every month, JPMorgan Chase dispatches a researcher to several supermarkets in Virginia. The task is to comparison shop for 31 items.
In July, the firm’s personal shopper came back with a stunning report: Wal-Mart had raised its prices 5.8% during the previous month. More significantly, its prices were approaching the levels of competing stores run by Kroger and Safeway. The “low-price leader” still holds its title, but by a noticeably slimmer margin.

Within this tale lie several lessons you can put to work to make money. And it’s best to get started soon, because if you think your grocery bill is already high, you ain’t seen nothing yet. In fact, we could be just one supply shock away from a full-blown food crisis that would make the price spikes of 2008 look like a happy memory.
Fact is,  the food crisis of 2008 never really went away.
True, food riots didn’t break out in poor countries during 2009 and warehouse stores like Costco didn’t ration 20-pound bags of rice…but supply remained tight.
Prices for basic foodstuffs like corn and wheat remain below their 2008 highs. But they’re a lot higher than they were before “the food crisis of 2008” took hold. Here’s what’s happened to some key farm commodities so far in 2010… 

  • Corn: Up 63%
  • Wheat: Up 84%
  • Soybeans: Up 24%
  • Sugar: Up 55%
What was a slow and steady increase much of the year has gone into overdrive since late summer. Blame it on two factors…
  • Aug. 5: A failed wheat harvest prompted Russia to ban grain exports through the end of the year. Later in August, the ban was extended through the end of 2011. Drought has wrecked the harvest in Russia, Ukraine and Kazakhstan – home to a quarter of world production.
  • Oct. 8: For a second month running, the Agriculture Department cut its forecast for US corn production. The USDA predicts a 3.4% decline from last year. Damage done by Midwestern floods in June was made worse by hot, dry weather in August.
Categories: Food Crisis Tags: , ,

HAPPY NEW YEAR 2011!

January 2, 2011 Comments off

Happy New Year!!!!  Many more posts to come for the upcoming year so stay tuned!!

Categories: 2011, Uncategorized Tags:

Federal Reserve Banking System Explained

January 2, 2011 Comments off

  Federal Reserve Banking System Explained

Oil will exceed $145 per barrel in 2011

December 24, 2010 4 comments

As predicted by Lindsey Williams on December 16, 2010 Ken Fromm (an former Alaskan oil exec/globalist elite) has been telling Mr. Williams of particular economic woes to come from his deathbed within the next 2 years.  I have  researched Lindsey’s prior statements regarding oil, precious metals, and other world events and my conclusion is that he is amazingly accurate! Gulf Oil CEO Joe Petrowski said “I think we’ll be at $100 in the first quarter,” he added, “and there’s 1 in 4 chance we’ll take out the $147 highs before Memorial Day.”   It is very possible in the near future by the end of 2011 we will paying in the range of $5-$8 at the pump.  As of today the current price of crude oil is at $91.51.

2011 Gas Prices

http://www.cnbc.com/id/40794066

http://www.infowars.com/lindsey-williams-crude-oil-price-targeted-for-150-200-per-barrel/

http://www.allbusiness.com/banking-finance/financial-markets-investing-securities/15335343-1.html