What should the Federal reserve do if the unemployment rate is getting high?

The usual: Dump money into the system and lower interest rates!

Drinking salt water might seem to quench the parched gullet, but the mariner knows it%26#039;s a fool%26#039;s drink, ending in death from thirst!

What should the Federal reserve do if the unemployment rate is getting high?

Increase the money supply. In theory, some theory suggest not, but, whatever, increasing the money supply increases the demand for normal goods, and thus, results in more hiring. More hiring means lower unemployment.

What should the Federal reserve do if the unemployment rate is getting high? loan

Start hiring more people?|||A Method to Address Economic Recession,

Remove Poverty, Terrorism, Improve Law and Order,

Reduce Drug Abuse, Inflation

And Taxes in an Interest Based Economy.

By Dr. Niaz Ahmed Khan

?Bedar Pakistan, www.bedarpakistan.com.pk

Abstract

I have developed a new financial instrument which will be much more valuable than the bonds or the treasury bills government sells in the open market to raise much needed funds to run the country .These are all interest based instruments and can only be used by institutions. The instrument I am proposing is without interest and will be used by every body to purchased goods and services in the government and private sector resulting in up to 60% discounts .This is why these will be massively bought up front in massive amounts in the shortest period of time of one month to run the country for at a year and much more by the end of the year.

Introduction

The world is facing many challenges with no solution in sight.

The main cause of all these ills is the POVERTY.

1. Issue bonds which can be used by everybody rich or poor and and are not debt TO THE STATE so there is no question of interest.

How: I take the example of USA which is under the threat of great recession.

USA borrows money by selling treasury bills and the interest based bonds. The suggestion is to sell these bonds on non interest basis

EXAMPLE: One dollar buys 5 bonds on the condition that the amount should be $100000 or multiple of it. Fewer amounts will have rate of four and three. This discount period is only for one month at the start of the implementation of this system. In the second month the rate will be 4 in the next month. The rate of 3 will apply to subsequent months for the same amount

WHERE THESE BONDS WILL BE USED? 1. All state controlled services and commodities. EXAMPLE: A bill of (any service or Commodity) $100 can be paid with 200 bonds and there will be no exception to this rule .A NET DISCOUNT OF 60 %.

A simple formula will apply: Total bill in dollars x2 is the number of bonds surrendered. Price in bonds will not be less than the cost price but without the direct indirect taxes and the duties which are added to the present to make it very expensive.

It will attract at least 150 million people to take this opportunity as early as possible. And if one is sure of making 100% profit within 30 days there will be many more that will help themselves.

RESULT - Government gets at least $15 trillion within a very short period of time of few days and much more in the rest of the year .THIS IS NOT A LONE AS STATE HAS SOLD BONDS( Commodity) WHICH IS AN ALTERNATE CURRENCY AND DO NOT CARRY ANY INTEREST. One immediately thinks that who will bear the loss and this big loss to the state is not more than total year budget of $12 trillion which it collects in one year with all the taxes and the duties but the bond price is simply a cost price without any kind of tax or duty

WHO WILL SELL THESE BONDS? State will float tenders to will select a private agency (USMF) UNITED STATES MONITORY FUND JUST A NAME GIVEN TO THIS ORGANIZATION with the lowest bid WHERE AS second third and forth bidders will be auditors of USMF . This agency will employ at least 20 million unemployed on 10% commission basis and without any salary. These agents will have to pay $500 as an annual fee to USMF in order to build the infrastructure for the sale of bonds. Agents quota Will be $300000 per month or they will be allowed to sell their whole year quota in one day or in a month, This will only materialize if the agent shares his commission with the would be buyer. Greater the share of commission quicker the sale. This investor or a buyer will sell these bonds at the same rate of 5 per dollar and his bonds will sell like hot cakes every day as there is no condition of the amount of money to purchase any amount of bonds. In this way even the poorest person will get the same rate as the investor except for the commission which he takes from the agent who makes almost 100% profit by only investing $100000 .He will sell these bonds repeatedly and will keep at least 6% profit every day till the demand lasts. NOW THINK HOW MUCH STATE HAS ACCUMULATED Much more than few years budget in matter of only one month.

FLOOD GATES OF MONEY AND TURNING POINT.

This is only the first flood gate of money and there are seven of these yet to open so at the end of 30 days or even much earlier the government declares tax free country for ever. With the removal of all kinds of direct and indirect taxes and duties the price of oil electricity telephone and of all types on other items under government control is almost 60% less than before as these are being purchased by bonds (which is the cost price) and not with dollars. The production cost of every thing has come down tremendously.

SECOND OPTION

State also offers one million duty free if one deposits $100000 non refundable .This brings out all the black and spare money which state WAS NOT ABLE TO GET BEFORE AND AS THERE IS NO TAX AND HENCE NO TAX EVASION SO ALL THE MONEY IS WHITE AS IT IS BEING GIVEN TO GOVERNMENT .

This was the second flood gate of money which is even bigger than the first one and the exact amount is impossible to asses unless the system is implemented.

In order to provide cheep bonds through out the year government offers three types of registration fees.

1. Pay $100000 in the start of the year and get the rate of 5 for the rest of the year and this will suit the professional鈥檚 and salaried person鈥?/p>

2. pay $10000 yearly and get 20000 new bonds at the rate 5 every month but one has to collect 10000 bonds( equal to fee) to get this cheap rate through out the year. Higher the registration fee more the entitlement of cheep bonds. This registration will suit any small time business who will sell his product cheaper provided 15% bonds are also paid with rest of cash money by the customer SEE THE NEXT REGISTRATION FOR FARTHER EXPLANATION 15 %BONDS .This will apply to all goods in private sector and does not apply to the government sector. This is a big incentive to accept bonds in the private sector as the business accepting more bonds will have more business than the trader not accepting the bonds so the bonds market will multiply and there will be a constant need for bonds in the open market.

3. Third type of registration will be of $100000 which will entitle the business to sell its products through USMF. The value of merchandise sold through this source will help the business to get the 5 bond per dollar rate equal to the amount sold or opt for the duty free option equal the amount sold. But with one condition of surrendering 15% bonds at each sale in dollars

EXAMPLE; MERCHANDISED SOLD THROUGH USMF $1000. BONDS SURRENDERED 150 ARE DEPOSITED IN STATE ACCOUNT TO BE SOLD AGAIN SO THE CYCLE OF BONDS IS ESTABLISHED .A receipt of bonds surrendered is obtained from USMF for evidence of sale of merchandise and this receipt will entitle the traders to get cheep bonds or the duty free option through out the year BUT THE SAME RECEIPT CAN BE USED ONCE ONLY.

WHAT IS THE BENEFIT TO BUSINESS .1? CHEEP BONDS THROUGH OUT THE YEAR

2 .DUTY FREE OPTION WILL HELP INDUSTRY.

3. The quota which can be sold is ten times the amount of Registration but not more unless the registration fee is increased. Now all the business will opt for this registration in order to reduce the cost of production. These 15% bonds the business will get back through a chain of dealers sub dealers and ultimately the customer will pay this bond portion as he will get the end product very cheep because of tremendous cut in the cost of production by the factors already mentioned. This will replace the GST or the VAT or the two price system seen all over USA. Almost every body will sell their product through this channel as it will be much costlier to sell the product out side this system as cheap bonds are not available otherwise.

According to rough estimate at least $1000 trillion transactions are carried out every day in US and at each transaction 15% bonds are being surrendered, the price 15 bonds is $3 .So 3% of 1000 trillion will be $30 trillion which goes into government account without any compulsion every day (UNBELIEVABLE) this is the third flood gate of money AND IS CALLED THE GOLD MINE

4 Now the state is sitting in the driving seat and all the money in banks of private sector have transferred into government account and banks are no more the lenders but are borrower from the state which is the only source left and will invest in business with sound feasibility study checked by the state bank. The state will offer to invest 80% and the bank will bring investor who is willing to pool rest 20%. This 20 % will be deposited in the bank and the bank will oversee the running the business, running expenses will be given to the investor from its share of 20%. There will be no collateral and share of the profit and loss will be shared in the ratio of 60 and 40. The bank will share the 60% with the investor and 40 % will go to state funds and the state will provide every thing under its control below cost which will farther reduce the cost of production and at the same time will MARKEDLY improve the profit margins OF ALL THE BUSINESSES. No major business can refuse this offer. Any bank showing repeated loss will go out of business as there will be no more funds available from the government source and all other interest based sources are not available any more. Interest based banking is gone for ever or it may be at a very small scale and the state will not offer loans on interest as these are not any more profitable and risk free as there is no collateral . The amount of profit government will share will be unimaginable and this is the 5Th flood gate opened

THEN WHY NOT INVEST ON PROFIT AND LOSS SHARING BAS

Can anyone predict what would happen to the unemployment rate if all of the Military personnel who a

deployed worldwide were suddenly returned to the USA?

Can anyone predict what would happen to the unemployment rate if all of the Military personnel who are?

the unemployment rate would likely decrease as the retail and service sectors that cater to the populations would be revitalized. That is assuming the military personnel themselves remain employed by the DOD.

Of course they could stay in the military if they want to. And the majority (except the reserves) would want to.

Can anyone predict what would happen to the unemployment rate if all of the Military personnel who are?

loan

Thanks for the best answer, but I still believe they wouldn%26#039;t %26quot;opt out%26quot; unless they had another job lined up. Report It

|||They would still be employed, just restationed. So, nothing would happen to the unemployment rate. They sign for a stated amount of time. Until they stints are up, they do not have the option of just quitting. So no, they can%26#039;t just say%26quot; Ok, tour is over, home now, I quit%26quot;. And the influx of 1 or 2 hundred thousand in local economies across the country would get a very slight bump, but nothing substancial.|||Just because they come home doesn%26#039;t mean they still aren%26#039;t in the military.|||Unemployment rates won%26#039;t matter when Al Quaeda strikes ....|||Well regular military would still be employed, so no effect there. Reservists and national guard troops who are deployed, by law have be either given their old jobs back or a similar one. This would create some displacemen though, so it could put a little upward pressure on the unemployment rate. But deployed reservists and national guard troops are a very small percent of the total labor force, so the effect will likely be negligable.|||I thought they just got a leave from their jobs to fight for our wonderful country.|||Would probably go up.

If the MIlitary cut all it%26#039;s bases, that would mean that military funding was decreased.

Dont%26#039; think the government would be stupid enough to slash the budget this dramatically with out first being certain that there are enough jobs being created for them to fill.|||jurydoc is probably correct. If the half-million plus people who are overseas returned to the US, they would all need a place to live and food to eat, want to see movies and drive cars, and generally spend their money on consumer goods here in the US instead of foreign countries.|||Absolutely minimum impact for of those people already have a job line up. Hell we can some qualify skill personnel in all field. we hurt right now in must of the fields as far finding qualify people.|||Not a blip.

To begin with, the numbers aren%26#039;t that many. There are about 120K in Germany, 170K in the Middle East, about 35K in Korea. Throw another 100K scattered around and the numbers really aren%26#039;t that high.

But even with those limited numbers, most are active duty military who would still be in the military when they returned. Those not on active duty already had jobs when they left. Most of those are coming back to those jobs and those that, for some reason aren%26#039;t, are far better qualified to look for a job than most.|||Not every person in the military intends to be career military. They%26#039;ve got to come home sometime.

And there ARE actually military jobs here on U.S. soil, believe it or not. They aren%26#039;t suddenly unemployed simply because they%26#039;re not engaged in active combat.

Or are you suggesting we should keep them in the line of fire purely to be able to say our unemployment rate is %26quot;low%26quot;?

I%26#039;d say our unemployment rate is far more aggressively affected by the outsourcing of jobs to India than it would be by returning our military men and women to the U.S.

Why aren't liberals talking about how the unemployment rate has decreases by more than half in

Here%26#039;s the true stats back to 1999(Clinton):

2004 qII , 5.5%

2004 qI , 6.1%

2003 qIV , 5.533%

2003 qIII , 6.033%

2003 qII , 6.033%

2003 qI , 6.367%

2002 qIV , 5.533%

2002 qIII , 5.667%

2002 qII , 5.733%

2002 qI , 6.167%

2001 qIV , 5.233%

2001 qIII , 4.767%

2001 qII , 4.333%

2001 qI , 4.6%

2000 qIV , 3.667%

2000 qIII , 4.033%

2000 qII , 3.867%

2000 qI , 4.4%

1999 qIV , 3.767%

1999 qIII , 4.267%

1999 qII , 4.2%

1999 qI , 4.633%

I, personally, see an upward trend, not downward.

Another interesting stat to look at is US median income (in 2005 dollars):

2005 $47,716

2004 47,490

2003 47,772

2002 47,806

2001 48,073

2000 49,061

1999 49,067

So, not only are more people unemployed, those that are working have lower wages and less buying power.

Sorry to burst the bubble you%26#039;re living in...

Why aren%26#039;t liberals talking about how the unemployment rate has decreases by more than half in the last quarte

I Don%26#039;t think they are going to make our case for us. Just remember that this nation is still great despite the griping by the Libs. By November of 08 America will be so sick of hearing the belly aching we%26#039;ll be ready for another Republican President. I wonder which excuse they will use then? Probably we are racist or anti feminist or maybe homophobic. ( Sorry for the reference to Ann Coulter) I couldn%26#039;t resist.

Boy. look at the angry people who responded to this and isn%26#039;t it interesting that they spout all these figures without reference to a source. One of them makes up something and they all jump on it like it was fact. Don%26#039;t you love it when they get so mad that they can%26#039;t think straight?

Why aren%26#039;t liberals talking about how the unemployment rate has decreases by more than half in the last quarte

loan

Economy was ramming ahead under Clinton and Gore, you%26#039;re right!|||Because they know that bush and his cronies are pathological liars!

you FINALLY got a job?!!!|||Congratulations.....the unemeployment rate has gone down while the whole rest of the country has gone to sh*t.|||Because gas prices are going up again.|||should we thank Bush? or Walmart?|||Why aren%26#039;t you talking about how countries in the Mid east are changing their trading money from U.S petro dollars to Euros? And, why aren%26#039;t you talking about the giant deficit and debt that Bush is racking up? And, why aren%26#039;t you talking about if this trading in Euros instead of dollars continues that the value of our dollar is going to shrink dramatically, meaning that people will have to have 2 or three full time jobs just to make ends meet. why don%26#039;t you mention that California is paying over $3.00 a gallon in gasoline the rest of the states are next. All the while the oil industry is taking in billions in subsidies (our tax money) that Bush gave the same oil industry. And, these same oil corporations are making billions in record profits while you and I are paying for the same tank of gasoline twice because of these subsidies. Oil per barrel is only $60 to $62. That means even more profits along with our tax dollar give aways.

You quote some pie in the sky numbers about unemployment without looking at the entire economic indicators that contribute to a healthy economy and you expect us to buy it. Get real.|||Again, this statement could only have come from Fox News. I did not note that the unemployment rate went down to 2.3%, which would be the lowest in the recorded history of Western civilization. Thanks for bringing this to my attention Mr. Hannity.|||Feel free to provide sources. At any rate, even if that%26#039;s true, which I find hard to believe, most people, regardless of their political views, would agree with me that the war in Iraq is a much higher priority right now. And there aren%26#039;t too many of you left who claim that%26#039;s going well. (Cheney%26#039;s embarrassing attempts to describe Britain%26#039;s planned withdrawal as a sign that they *are* going well notwithstanding...)|||More than half??? That would mean a drop of from 6% to 3%. Didn%26#039;t hear about that happening. The change is usually around half a percent. Significant difference. As for the liberals talking about it, it%26#039;s all mathematics. When a person is no longer eligible for unemployment coverage then they are employed, whether they have a job or not. There are only 2 categories so all those people with no job and no unemployment coverage must be employed which causes the rate to fall if no new unemployed were added.|||So What.....

It is still higher than when Clinton left office. What are you bragging about????

http://www.economagic.com/em-cgi/data.ex...|||well, maybe you don%26#039;t know this but once a person%26#039;s unemployment benefits run out they%26#039;re no longer counted among the unemployed. also tho service industry jobs like cashier and restaurant work, fast food and maid service has remained steady, higher paying jobs like computer specialists and factory jobs have been shipped overseas. the under employed aren%26#039;t counted either. the numbers are rosier than reality.|||Because they don%26#039;t want to give Bush credit for doing anything good. If it%26#039;s good they give credit to someone else but if it%26#039;s bad they always blame Bush.|||Because it%26#039;s not true. And, those jobs that have been taken are, for the most part, minimum wage jobs.... Don%26#039;t believe everything you hear on Faux news....or the loud-mouthed talk radio jerks.|||Don%26#039;t know - every shred of data on the subject refutes every class warfare argument. The Census Bureau reports that most of the job growth is in the %26quot;service sector%26quot; which includes all white collar professions, and 80% of the growth of the service sector is in technology and healthcare with much of the rest coming in finance, law and other professions servicing the technology and healthcare industries, and they tell us %26quot;service sector%26quot; means food service sector and that %26quot;all the new jobs are McJobs.%26quot; That%26#039;s flat-out lie.

The Liberals take a Census Bureau report that says that the middle class has declined in size in proportion to the US as a whole in the last twenty five years and they report a %26quot;decline of the middle class%26quot; - saying that the average income of the middle class is declining or insinuating that at least as many households are moving down as are moving up, when the same Census Bureau data set that showed them the middle class had declined in proportion to the whole also showed that 92% of the households leaving the middle class had moved UP.

They have an agenda, and they are willing to lie to support that agenda.|||Marko! You know why? That would be giving, Our President the Kudos that he so rightfully deserves!! Tax Cuts work. And they won%26#039;t anything to do with believing that sort of %26quot;Right-Wing Trash%26quot;. Good Stuff. Here%26#039;s a Star to prove it.|||They don%26#039;t want to talk about the truth. Only lies.|||Because that would be a positive, and they only deal in the negative!

What is the age group with the highest unemployment rate?

20%26#039;s probably

What is the age group with the highest unemployment rate?

Probably infants. Those lazy bastards.

What is the age group with the highest unemployment rate? loan

seniors? as in old people|||people under 18?

also older people in there 50-60s|||drop out students|||Zero to age 6.|||I would have to go with infants as well|||deceased or baby%26#039;s they don%26#039;t do nothin%26#039; !|||Ages 1-15|||teens, lazy no counts|||60 and above

Are liberals going to blame Bush since the unemployment rate?

is now lower since Bush took office than it was during the artificial market boom under Clinton?

Are liberals going to blame Bush since the unemployment rate?

Lib%26#039;s always blame Bush %26amp; God But this they will try to take credit for that%26#039;s for certian

Are liberals going to blame Bush since the unemployment rate? loan

of course not they will claim cresit since they are the majority in congress now|||And more blacks own their homes than ever.

That will make Dems mad.|||No, those few liberals who rabidly hate Bush will just segue into the McJobs canard, or they%26#039;ll change the subject to My Pet Goat or some other B.S.

The real dimwits will claim it all happened since November 2006.|||All these positive changes seem to be happening after 2006 when the Democrats were elected to Congress. HMMM I wonder if that might have something to do with it. The preceding 6 years things were just the opposite. Compare that to the unprecidented levels of employment during the Clinton Administration and the last 6 years look pretty puny.|||The market boom under Bush has been much more artificial and damaging to the long run health of the country that it was under the Clinton administration, because it has been fueled by massive deficit spending and tax cuts for the rich. - Crack Cocaine also has a stimulative effect, but that doesn%26#039;t mean it is a good thing. - The next generation will suffer for what Bush has done to the country in more ways than one.|||If people are SMART, they would blame business for the unemployment rate, not the government. The president didn%26#039;t tell these people to send their companies overseas for cheaper labor. This blame game is just another way for one party to make another party look bad. I%26#039;m sick of it. C%26#039;mon, Americans!! Lets stop blaming the government and start taking responsibility for ourselves!!|||of course they always do its sad really.

How is the Gross Domestic Product related to the inflation rate and unemployment rate?

Inflation is the sudden increase of a product. Namely the product in this situation, a domestic product, such as pinesol maybe, can have a sudden price inflation if less workers are there (hence unemployment rate) to make the product to be sold. Since their is less of the product, that means the prices increase causing a inflation.

Heres a simple chart for you to observe

Workers Make%26gt;Pinesol%26gt;Pinesol production decreases suddenly because of lack of sales%26gt;Need for less workers%26gt;Less workers means higher unemployment rate%26gt;Suddenly Pinesol becomes famous%26gt;More workers needed but workers competent for task unavailable%26gt;Low number of Workers%26gt;Less Products%26gt;To make up for money price increase

The End

How is the Gross Domestic Product related to the inflation rate and unemployment rate?

The inflation rate and unemployment rate are expressed as a percentage of the GDP where GDP is used as the standard of measure.

Although we use the GDP as our standard, understand that when comparing our inflation or unemployment rates with countries in the EU that the standards are different because of inherent structural differences in criteria.

How does Underemployment and the underground economy affect the unemployment rate?

One thing you have t onsider is there are three types of unemployment.

1. which is the national average is designed to calculate everyone who is on unemployment.

2. Which is the unemployement rate for College educated people

(almost always 1.5% or less)

3. Which is the actual number of unemployeed people at any given time who may or may not be on unemployement

With this in mind, its an easy answer. lets say you have a degree in engineering. for whatever reason, engineering is eliminated. Now, although you have a degree you take a job at a factory. you are now under employeed. The reason you got the job is because you are beyond qualified. But the guy who was just qualified enough is now jobless.

you are underemployeed as a result of your new job, and the other guy who would have gotten the job is unemployeed