NY Fed Index Drops to Recession-level Low

NY Fed Index Drops to Recession-level Low

The report indicates that any economic gains realized since 2009 are eroding....

The index is almost at a 3 1/2 year low.

More rough reports for Obama & Co. to address.

This morning, the New York Federal Reserve Bank released its monthly "Empire Index" of business and manufacturing activity for New York and New Jersey. Last month, the index showed a -5 rating, signaling a weakening economy. (Anything below 0 signals contraction in the economy.) Analysts had expected the index to improve to a -2 rating. Instead, the index collapsed to more than -10, indicating a sharp economic pullback in the region.

(Reuters) - Factory activity in New York state contracted for a second month in a row in September, falling to its lowest level in nearly 3-1/2 years as new orders shrank further, a report from the New York Federal Reserve showed on Monday.

The New York Fed's "Empire State" general business conditions index dropped to minus 10.41, from minus 5.85 in August, frustrating economists' forecasts for an improvement to minus 2, according to a Reuters poll. It was the lowest level since April 2009.

The survey of manufacturing plants in the state is one of the earliest monthly guideposts to U.S. factory conditions. The sector contracted in August for the first time in 10 months.

A major contributor to the U.S. recovery as the economy emerged from recession, manufacturing has been faltering in recent months.

Maybe This is part of the problem?

Since Obama has taken office ….
[through Q2 2012 for comparative purposes]

--> For every $1 added to the economy, we’ve added more than $3 in debt

--> added $5.23 trillion in debt vs. $1.68 trillion to the economy
--> 50% increase in debt vs. 12% increase in economic output

Total Public Debt:

$10,626T [Jan 20, 2009]
$15,856T [Jun 30, 2012]

--> $5.23 trillion increase in debt

[source: Treasury Dept]

......

GDP

$13,923T [Q1 2009]
$15,606T [Q2 2012]

--> $1.68 trillion increase in GDP

[source: BEA]

For Every $1 Added to the Economy, Obama Added More Than $3 in Debt

Keep in mind, April 2009 was in the midst of the recession. The recession would officially end and the economic "recovery" begin just a few months after hitting this low. That it is again hitting this low suggests the economy is starting to give back any gains its had over the past three years.

Any economic recovery we enjoyed was always very weak by historical standards. Especially, considering how far the economy had fallen during the recession. Now, even a very weak recovery seems to be an illusion.

Every dollar printed by the Fed requires a payment of interest in return. We're screwed no matter which way you look at it.

Sounds like QE3 is right around the corner... ugh.

reply to post by PatriotGames2

Really makes you wonder why they can't print themselves their own interest.

What a scam job.

Originally posted by nathanscottecho
Sounds like QE3 is right around the corner... ugh.

It's already here !!


Sep 13, 2012

The Federal Reserve said it will expand its holdings of long-term securities with open-ended purchases of $40 billion of mortgage debt a month in a third round of quantitative easing as it seeks to boost growth and reduce unemployment.

“We’re looking for ongoing, sustained improvement in the labor market,” Chairman Ben S. Bernanke said in his press conference today in Washington following the conclusion of a two-day meeting of the Federal Open Market Committee. “There’s not a specific number we have in mind. What we’ve seen in the last six months isn’t it.”

Fed Undertakes QE3 With $40 Billion Monthly MBS Purchases

reply to post by xuenchen


It's a sad sad story. Now it just leaves me wondering how long it'll all last. However, the machines of war have been starting to crank a little faster lately, and nothin means business like war. God help us.

reply to post by xuenchen


Xuenchen, I really don't see any economic improvement since 2008. What I do see is that the asset bubble is deflating and the FED keep pumping air into the bubble praying that;

1. the economy is going to catch up to the bubble through normal market cycles
2. that inflation will make the people think they are richer because their pay went up because of inflation.

If you read Bernanke's paper about the Japanese stagflation you will see exactly what he is trying to do to the US economy. After reading this paper I could plainly see the failing in it because you can deflate an economy doesn't translate into aggregate demand to further stimulate an economy.

Then you have even helicopter Ben's words that you need good accounting controls and regulations to ensure that the easing is effective.

www.princeton.edu...

Then you have the phony CPI numbers which are a joke when looking at inflation today. I love John Williams of www.shadowstats.com. I suggest anyone who wants to understand how bad our economic numbers are cooked to read his primer on the CPI.

www.shadowstats.com...

If you look at John's inflation adjusted numbers for the last 4 years we have had about 20 percent cumulative inflation while the official CPI reads about 0-2 percent....

the deck is stacked from top to bottom in the financial sector.....

Sometimes we get jaded to the numbers. I look at it this way. QE3+ is the equivalent of printing enough mony to give each and every American more than 100,000,000. Every. Single. Month.

This can't last too long before they finally finish off the dollar, which of course is their intent.