Economic Observation 2003-4

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             related sales figures like appliance outlets, clothing stores and gasoline
             stations also posted substantial gains.
             Coupled with short-term interest rates being at a forty-five year low,
             this economy may just push us into positive promise land.
             Investment Business Daily contents that throughout the third quarter
             of 2003our economy has been expanding at an unbelievable rate of seven
             point two percent (7.2 %). These statistics make this current economic
             recovery the best in the past twenty years or more.
             An economic spurt like this should go a long way towards reducing the
             huge unemployment numbers, cutting the high number personal bankruptcies
             and making the common man whole again. Having a job at Christmas will raise
             However, if the economy suddenly has more money circulating than it
             has in twenty years then there is the threat of inflation. The question
             should loom -- will this economy be able to afford this growth spurt if
             inflation grows rampant' Inflation is just that, an abnormal increase in
             either excess credit or currency which therefore raises the prices of our
             goods and products. The answer has come from the Fed.
             "The Federal Reserve is expected to hold its main short-term interest
             rate at a 45-year low of 1 percent at its last meeting of the year in
             December, as well as into part of 2004, economists predict. Holding short-
             term rates at such low levels might motivate consumers and businesses to
             spend and invest more, something that would lift economic growth." (Aversa)
             "Employment continued to trend up in November and the unemployment
             rate, at 5.9 percent, was essentially unchanged from October, the Bureau of
             Labor Statistics of the U.S. Department of Labor reported today. Non-farm
             payroll employment rose slightly over the month (57,000)." (Em
             ...

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