The employment act of 1946…

One of the four monetary policy goals of the Fed chair is high employment. Which is stated in the act as “responsibly of the Federal government…to foster and promote…conditions under which there will be afforded useful employment, for those able, willing and seeking to work, and to promote maximum employment, production, and purchasing power. “ Which translates into more aggressive expansionary monetary policy. On the other hand, are we more realistically in the grips of stagflation, in regards to the still lower GDP and bump in inflation? Outside of the creation of any artificial market for which the demand for labor would be needed, government intervention is inevitable if we are to move forward. But we can’t ignore the fact that the government is not a cash machine. Big B must take responsibility and act in a more utilitarian fashion, or run the risk of losing their customer base forever or for the next twenty years. Cutting interest rates and adding money through the money market system isn’t enough. More aggressive are needed to shock the hearts and minds of consumers. The predictions of the PCE and other indicators offer no crystal ball vision into the next six months. The number of dynamics at play here are staggering, we are not the only players in our own back yard. One move in the right direction is a hard look at current policy reform. Banking, credit cards, houses, car loans and taxes. Next on the table would be government spending and net exports, it’s time we leveled the playing field on imports and exports into and out of the U.S. Along with real authority over those who choose to ignore the rules. We hang on ever word from the chair, waiting for some good news…will it come soon?

AIG; thieves in suits

AIG, I have always understood that bonuses were based on performance and profits, neither which AIG has. The money they are so freely handing out is not profit. So how can AIG treat it as such, the money is a negative not to be treated as profit or even windfall. Contract or no contract, AIG has no respect or moral compass or responsibly to where the money came from. The American Tax payer money is not a bonus, it was given in good faith that it would be used wisely and responsibly. To that end, AIG should be punished for their action. What they did was break the contract with the government and the American people. AIG first priority is to those how gave it to save the company, not to reward those who raped it. At the least, with all their so-called problems, giving bonuses was the first thing they could think of to do with our money? Big business corruption abound, it’s time to say the American people will no longer flip the bill for the government’s affair with big business and big business greed and moral misconduct. SHAME ON AIG FOR SLAPPING US IN THE FACE AND SHAME ON UNCLE SAM FOR LETTING THEM.

Sales rise on inferior goods

To understand the rise in the sales of inferior goods is a lesson in economic 101. Plainly stated, inferior goods are lesser-priced goods that can take the place of something else. Like Hamburg for t-bones. Which gives you more for your money, which is good. The problem hanging out there is what if they raise the price of the inferior good?
In this economy, there has been a major shift in consumer buying to these types of products, and shopping for name brand items at discount stores. Does it pay to buy cheap priced products in bulk? That depends, if let’s say you buy 20 rolls of paper towels because there on sale. At two dollars a roll, that adds up to $40.00. Good deal right? However if you had only bought 2 rolls for four dollars you would an extra 38.00 dollars to buy something else on sale.
There is always a trade off when buying things, you like, but to sustain yourself in this time maybe learning to with less or without is better for you bottom line. Maybe you just like the taste of the cheaper peanut butter, Okay then maybe you can do without the magazine on sports saving you ten bucks. It’s much easier to manage your money when there’s a cash flow. But when the flow slows down or stops it gets harder to retrain your buying habits.
I ‘m sure you can come up with more ideas to save money, in the mean time understand that inferior products doesn’t mean lesser quality just lesser price.