By J. Bradford DeLong
Monday, May 03, 2004,Page 9
One swallow does not make a summer, and one month of normal job growth and rising prices in the US does not mean that the Federal Reserve no longer fears economic malaise and deflation.
But the time will come when world interest rates begin to rise, as central bankers prepare to resist the upward creep of inflation.
Whenever that moment arrives, America and the global economy will face financial vulnerabilities that reflect the success of the past three years of monetary stimulation in stemming declines in production and moderating unemployment.
Short-term interest rates are astonishingly low: only 2 percent in the euro zone, just 1 percent in the US, and zero in Japan. Expansionary monetary policy has been successful, but only by pushing interest rates to historic lows -- and by convincing investors that borrowing costs will remain at their current levels for a long time.
http://www.taipeitimes.com/News/edit/archives/2004/05/03/2003153980If Kerry doesn't bring up the fact that the American Media has been saying since 2001, 'The economic recovery is expected next quarter', then he doesn't deserve to be President. And when he becomes President he wouldn't be moral if he didn't RICO the American Media Whores/GOP Shadow Government.