You are here: HomeEconomy

Economy

Ford Motor Company disclosed on December 21 that it is offering to buy out 41,000 United Auto Workers (UAW) union members with early retirement deals as the company attempts to reduce payroll costs and return to profitability by 2011.

piggy bank brokenChinese officials have once again publicly stated their intention to buy less U.S. Treasury debt, according to the December 18 Shanghai Daily newspaper. "The U.S. current account deficit is falling as residents' savings increase, so its trade turnover is falling, which means the US is supplying fewer dollars to the rest of the world," Zhu Min, deputy governor of the People's Bank of China, said. "The world does not have so much money to buy more U.S. Treasuries."

BernankeThe Federal Reserve decided on December 16 to keep interest rates at historic lows near zero percent. The Fed released a statement declaring that even though there are signs of improvement, economic conditions “are likely to warrant exceptionally low levels of the federal funds rate for an extended period.”

With the expiration of one of the most turbulent years, economically speaking, in American history, it is not surprising that Time magazine has recognized Federal Reserve Chairman Ben Bernanke as Man of the Year. In an era of unbridled optimism gone bust, the ubiquitous media presence of the unassuming Princeton economist who has become — in Time’s panegyrical prose — “our mild-mannered economic overlord” and “the most powerful nerd on the planet” would make Bernanke a shoo-in for such recognition.

The economic conventional wisdom of the moment is that the U.S. economy has begun to turn around. According to mainstream economists, a tentative recovery can be found in the third-quarter numbers, and in the drop in new unemployment claims from October to November.

Sign up for The New American daily highlights