[lbo-talk] FOMC

[Eubulides]

[No change in policy, and the kept the reassuring phrase, "for a
considerable period." But there was a shift in the wording on the
balance of risks between inflation and deflation ("an unwelcome fall
in inflation" in Fedspeak) - now they're equal. That sounds like
they're beginning to prepare the markets for a policy shift, i.e.,
tightening, but slowly. The "considerable period" wording may
disappear in the next release, though. Time to watch public
statements of Fedsters very closely in the coming weeks for more
signs of a shift.]

<http://www.federalreserve.gov/boarddocs/press/monetary/2003/20031209/defa
ult.htm>

Release Date: December 9, 2003

==============================
http://www.federalreserve.gov/boarddocs/speeches/2003/20031211/default.htm
The American economy has been in the forefront of what Joseph Schumpeter,
the renowned Harvard professor, called "creative destruction," the
continuous scrapping of old technologies to make way for the new.
Standards of living rise because the depreciation and other cash flows of
industries employing older, increasingly obsolescent, technologies are
marshaled, along with new savings, to finance the production of capital
assets that almost always embody cutting-edge technologies. Workers
migrate with the capital. This is the process by which wealth is created,
incremental step by incremental step. It presupposes a continuous churning
of an economy in which the new displaces the old, a process that brings
both progress and stress.
[snip]

Really? All those textile workers in South Carolina etc. have migrated to
China and Mexico?

The new displaces the old? How long have human beings been making clothes
and shoes and stuff.........?

Ian