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Updates On the United States Economy

By Erik Folgate

This is a quote and text from a USA Today article published today:

President Bush said Thursday he doesn’t think the country is heading into a recession, but “there’s no question the economy has slowed down.” “There’s a lot of uncertainty and I’m concerned about the uncertainty,” he said. “Hopefully this pro-growth package will help.”

Here are some quotes from Bernanke, the chairman of the Fed and text from this USA Today article.

Federal Reserve Chairman Ben Bernanke told Congress Thursday that the nation is “not anywhere near” the dangerous stagflation situation that prevailed in the 1970s. With the economy slowing and inflation rising, fears have grown that the country could be headed for the dreaded twin evils known as stagflation. “I don’t anticipate stagflation,” Bernanke told the Senate Banking Committee. Still, high energy prices and rising inflation do complicate the Fed’s job of trying to keep the economy growing and inflation contained, Bernanke acknowledged.

High energy prices are creating “inflationary stress,” Bernanke said. That is “complicating” the Fed’s work in terms of shoring up the economy, the Fed chief said.

This article from Fox Business tells that the U.S. dollar is continuing to weaken and asks the question, how low can it go?

So, the economic gloom new continues to fill newspapers, airwaves, and television sets. One thing that you need to remember when reading and listening to all of this news about the economy is that we are in an election year. The efforts in Iraq are actually succeeding and there are much less casualties right now, so the media doesn’t want to report the good news out there. Iraq won’t be a hot issue for the general election, so the media is now pushing the economy into the forefront of hot topics for the general election. If this were 2005, 2007, or 2009, you would not hear this much coverage about an economy that is slowing down, but definitely nowhere near the stagflation of the 1970s. The two people that “should” know best about the state of our economy, President Bush and The Fed Chariman, are saying that things are not as bad as they sound, but there’s no denying that it’s slowing down. You can argue that Bush is never going to say it’s bad, because he wants to help the Republican candidate as best as possible to win the election, but Bernanke doesn’t really have that much stake in the election. Anyway, don’t get too bent out of shape when you watch the Nightly News and keep doing what you are doing as an American.

Erik Folgate
Erik and his wife, Lindzee, live in Orlando, Florida with a baby boy on the way. Erik works as an account manager for a marketing company, and considers counseling friends, family and the readers of Money Crashers his personal ministry to others. Erik became passionate about personal finance and helping others make wise financial decisions after racking up over $20k in credit card and student loan debt within the first two years of college.

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