posted on Apr, 22 2004 @ 08:19 PM
Quite often we never actually know the truth on governmental actions, or related agencies.
The Federal Reserve, Alan Greenspan, recently released a five year old transcript of his meetings with the members, which is how it is handled. Five
year delay for release.
But it appears way back in 1998 the darkness loomed heavy on the US economy.
WASHINGTON (AP) -Federal Reserve Chairman Alan Greenspan and his colleagues struggled through the fall of 1998 to develop the appropriate response
to a spreading global financial crisis that Greenspan called the most extraordinary event he had seen in 50 years.
When the crisis hit Russia in August 1998, that country was forced into a botched devaluation of its currency that rattled financial markets in the
United States and around the globe. That raised fears that the U.S. economy might be the next to fall prey to the spreading financial crisis.
While Greenspan and other Fed policy-makers sought to portray a sense of being on top of the situation in their public comments, the transcripts
showed that Fed officials were clearly worried by the unfolding crisis.
In an October 15, 1998, emergency conference call, Greenspan told other members of the Federal Open Market Committee - the group that sets interest
rate policy in the United States: "At this stage, after 50 years of looking at the economy on almost a daily basis, I must say that I have never seen
anything like the current situation."
Greenspan went on to say that from his extensive readings of economic history, he believed that "it would be an extremely rare event for this type
of financial environment to emerge and eventually to recede without having any impact on the economy."
This is only what I have suspected for some time.
I wish I had access to the last two years transcripts, as I have had the same impression of the US economy for almost that same time frame, and it
continues to draw my attention. Surely our most recent economy is still being effected by the suggested crisis in 1998.
And actually, I can say with sincerity, that the immediate upcoming bout of inflation is the net result of the efforts in the years described.
Please note the most recent inflation figures, were negetive in content, and were over 50% higher than expected!
Renewing concerns about inflation, the Labor Department reported that consumer prices rose by 0.5 percent in March, higher than the 0.3 percent
advance forecast by economists.
[Edited on 22-4-2004 by smirkley]