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MOSLER'S LAW: There is no financial crisis so deep that a sufficiently large tax cut or spending increase cannot deal with it.

Fed’s Williams slips in a plug for a fiscal response

Posted by WARREN MOSLER on February 24th, 2012

So look what slipped into a Fed statement:

*DJ Fed’s Williams: Current Economic Conditions Call For Strong Fed Response
*DJ Williams: Weak Total Demand Calls Supports Fed Policy Action
*DJ Williams: Sees Value In Targeted Stimulus Actions
*DJ Williams: Mortgage Bond Buying Has Helped Housing Market
*DJ Williams: Fiscal Actions May Also Help Revive Housing, Aid Economy
*DJ Williams: Fiscal Stimulus May Be More Potent Than Monetary Policy Now
*DJ Williams: Housing Has Hurt Economy, Not Sole Cause Of Slow Recovery

9 Responses to “Fed’s Williams slips in a plug for a fiscal response”

  1. Unforgiven Says:

    How about:

    Fiscal response might be more potent than monetary policy now and always.

    Reply

  2. pebird Says:

    Thank god for election years. Otherwise we might never get the roads repaved.

    Reply

    Monica Smith Reply:

    @pebird,
    Where did legislators get the idea that their job is to manipulate the population, rather than manage our physical resources and assets? Surely it’s not all the fault of MBA program fixation with personnel management and human resource allocation.

    Reply

  3. Patriot Says:

    Have you seen this thing about the alleged 15 trillion dollars scammed from the Federal Reserve? It sounds ridiculously impossible, but these days, anything is possible.
    http://www.veteranstoday.com/2012/02/21/intel-exclusive-trillion-dollar-terror-exposed/#.T0nNUQU7jUQ.facebook

    Reply

    Nate G. Reply:

    @Patriot,

    No offense meant, but don’t be dumb.

    http://www.ny.frb.org/banking/frscams.html

    Reply

    WARREN MOSLER Reply:

    any transfer of funds by the fed is a credit to someone’s account at the fed.
    it doesn’t ‘go’ anywhere else. and the fed publishes an ongoing financial statement showing the account totals

    Reply

    Winslow R. Reply:

    @WARREN MOSLER,

    Except when the transfer is in cash?

    CAIRO (AP) — Egypt went forward with a trial Sunday that has plunged relations with the U.S. into the deepest crisis in decades, prosecuting 16 Americans and 27 other employees of pro-democracy groups on charges they used foreign funds to foment unrest.

    http://news.yahoo.com/egypt-opens-trial-strained-ties-us-143631425.html

    The most recent Fed’s financial statement for commercial banks ( H.8 ) shows another increase in net funds due to related foreign offices along with a corresponding increase in cash.

    Reply

    WARREN MOSLER Reply:

    right, cash advances are reported as well

    Winslow R. Reply:

    Reported on the streets of Egypt.

    More interesting times? Fed with QE3 or ….?

    http://research.stlouisfed.org/fred2/series/BASE?cid=124

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