One day after the Federal Reserve Bank's “Federal Open Market Committee” (FOMC) announced it would create an additional $600 billion in currency over the next eight months, commodities markets skyrocketed as investors frantically sought hedges against the coming inflation. The Federal Reserve Bank, staffed with Keynesian and a few Monetarist school economists, calls the move “quantitative easing.”
With high-fructose corn syrup suffering from years of bad press, and consumption of the popular sweetener falling to a 20-year low over concerns it might be a factor in the rampant obesity and other health issues raging across the U.S., the Corn Refiners Association (CRA) has applied to the Food and Drug Administration (FDA) to change the name of its profitable product —used in the manufacture of soft drinks, candies, sauces, and scores of other processed food and beverages — to “corn sugar.”
When the Federal Open Market Committee announced yesterday that “the pace of economic recovery is likely to be more modest in the near term than had been anticipated,” stocks in Europe lost three percent of their value, interest rates on the U.S. 10-year Treasury note dropped startlingly as investors ran to safety, and the dollar hit the lowest level against the Japanese Yen since 1995.
Addison Wiggin asked his readers to imagine an older happily married couple, having their usual morning breakfast together:
They work well together, though maybe the lady of the house has been “the better half” lately … doing a larger burden of the work, paying more bills, keeping the house together and so on. But nevertheless, things are good, so it seems. Times are a little tough, but there’s no imminent reason to suspect the relationship won’t last.
When ABC News announced that Fannie Mae and Freddie Mac would be de-listed by the New York Stock Exchange on July 8, writer Rich Blake said that “these once mighty enterprises will trade alongside stocks on the Over-The-Counter Bulletin Board, a place where many companies go to die.”
On Friday Reuters reported that non-government payrolls rose only slightly in June and overall employment fell “for the first time this year … indicating the economic recovery is failing to pick up steam.” This report followed several others last week indicating weakness in consumer spending, housing, and manufacturing which “have heightened fears [that] the economy could slip back into a recession.”
Just when Americans thought that the bailouts were over, Bloomberg Financial News service reported on June 13 that the final tab for Fannie Mae and Freddie Mac bailout is increasing and may total as much as $1 trillion.