Bloomberg Worldwide reports that the Fed seems prepared to lower the interest rate to close to zero {0.5%} later on today and use its own balance sheet as a key tool for monetary policy.

A general rule of thumb is that a lowered interest rate indicates increased supply of money into the system which devalues the money that is already in the system {inflation}.

This can be confusing until we realize that price and value are not the same thing. Is the 2008 Ford Mustang more valuable at the time of purchase than the 1967 'Stang? No. The difference is that the money today isn't worth as much as it was in 1967. The value of the car remains about the same. A dozen eggs today sells for about $1.50, but what did it sell for in 1967? 25 cents? Minimum wage in 1967 was about $2.15/hr, but today it is $5.15/hr; if paychecks don't keep pace with the inflation of the money supply, the result is a reduction in the value of the paycheck, or an effective pay cut.

The present "recession" began a year ago, but all year we've been told that the economy is strong and thriving. This month the news was released that this present recession began last December. Whether you call it disinformation, or propaganda, doesn't matter. Now they are admitting to recession, and "trying to stave off depression", so if the past year is any indication, what are the possibilities that we are now in a depression?

I realize that the scope of this forum is supposed to be local, but with national camped out in our living room, bedroom, and kitchen, it is hard not to take notice.