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<blockquote data-quote="bacha29" data-source="post: 5912916" data-attributes="member: 58386">When I was very young a man with a 5th grade education tole me,,,,,&quot; The American economy is powered by one thing only....The ability of poor people to get credit&quot;....How true those word were. Today 70% of the US economy is consumer spending. It&#039;s pointless to deny the fact that the Chairman Of The Federal Reserve Board runs this country. What he&#039;s trying to do here is pretty obvious. Interest rates are right now within historical norms and he seeks to keep them there will getting inflation to within the Fed&#039;s goal of 2%.Every morning I make it a point to check out Kenny Polcari morning commentary. Early this spring Kenny said that the Fed is unlikely to make a major move on interest rates and money supply if inflation will settle into the 3% range and employment remains strong. You guys are all correct when you talk about indebtedness in all forms and the danger of default is there. At the same time money must continue to move freely and if it stops moving you&#039;ve got a recession and economies are much harder to restart then they are to stall out.</blockquote>

[QUOTE="bacha29, post: 5912916, member: 58386"] When I was very young a man with a 5th grade education tole me,,,,," The American economy is powered by one thing only....The ability of poor people to get credit"....How true those word were. Today 70% of the US economy is consumer spending. It's pointless to deny the fact that the Chairman Of The Federal Reserve Board runs this country. What he's trying to do here is pretty obvious. Interest rates are right now within historical norms and he seeks to keep them there will getting inflation to within the Fed's goal of 2%. Every morning I make it a point to check out Kenny Polcari morning commentary. Early this spring Kenny said that the Fed is unlikely to make a major move on interest rates and money supply if inflation will settle into the 3% range and employment remains strong. You guys are all correct when you talk about indebtedness in all forms and the danger of default is there. At the same time money must continue to move freely and if it stops moving you've got a recession and economies are much harder to restart then they are to stall out. [/QUOTE]

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