THE Y2KNEWSWIRE.COM NEWS CAPSULE
The Federal Reserve Bank has said that it will begin raising interest rates in the fall. With Y2K fast approaching and the economy strong, they are attempting to cushion the economy a possible blow next year. Consumer spending is high and if it remains unchecked could result in an economy out of control. At an increase of 75 basis points over six months, interest rates will not increase dramatically. Once the Fed acts, GDP is expected to slow, inflation will remain low and unemployment will increase slightly as the new millennium advances, according to the Fed plan
Experts predict a drop in Britain's GDP of almost 1% once the new millennium begins. The main cause of the slowdown will be decreasing stock prices and companies scaling back on Y2K related projects. Just as the second half of 1999 is expected to see increased economic activity, the first half of 2000 will be depressed. Economic output by the UK will be affected most by consumers' hoarding prior to the date change, say the experts. [Once again, "experts" blaming the public for preparing. See our comments below...]
The Chinese aviation industry has announced it will be compliant by June. A new booking system has passed Y2K testing, and contingency plans ensuring safe international flights have been drafted, says an official. Additionally, the travel industry may offer huge discounts as 1999 comes to a close. Airlines are expecting a negative impact on bookings due to Y2K fears. Special packages and discounts could entice nervous travelers and boost business.
The U.S. economy could see ups and downs next year, but a recession is unlikely, says a poll of top economists. In a poll conducted by USA Today, some US economists see problems caused more by consumers than by the computer glitch itself. Most think the preparations being made now will result in decreased spending next year and a crash could follow. They do feel however, that the economy is robust enough to withstand it. [Yet again: blaming the people for preparing. It seems all economic problems will be blamed on "hoarding..."]
ONCE AGAIN, BANKERS AND ECONOMISTS BLAME THE PUBLIC, NOT BAD CODE
The blame game continues. An economist serving as a consultant to Zions Bank in Salt Lake City is quoted in USA Today as saying, "Y2K is no longer a computer problem. ...It has now become a problem of fear and human emotion."
Story: usatoday.com
The message? It's your fault for preparing. The computers? They're all fine. 100% fixed. Problem solved.
That's the bizarre rationale now gaining increased support from the banking community as bankers and bureaucrats scramble to find ways to deflect Y2K blame. The more they can cast blame on the public -- while distracting attention from the still non-compliant systems -- the less they'll get blamed when the real problems hit.
It's a full-court-press spin job, engineered by people with everything to lose if the public realizes the fragility of our current fractional reserve banking system. No wonder the explanations are getting weirder by the day: these people are desperate.
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