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| Subject: the bush - bernanke economic failure | |
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Author: jw |
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Date Posted: 07:56:51 10/29/07 Mon In reply to: Bev 's message, "WHAT are you talking about . THey are actually are going totry to lower taxes for the majority" on 10:00:27 10/26/07 Fri Bush and bernanke plan on dealing with the current economic downturn caused by the real estate bubble collapse by lowering interest rates below inflation levels again, encouraging another real estate and stock market bubble. The policy will not work this time, as it did 5 years ago, because we now have inflation and super deficits created by the bush-greenspan policies. What will kill the normally economically stimulating effects of lowering interest rates is that the lowering of interest rates is causing inflation and a collapsing dollar, as we have already seen since bernanke's fed dropped the lending rate by half a percent this summer, oil responded by shooting through a record 80 dollars a barrel to over 90 dollars a barrel now, an all-time record high in inflation adjusted dollars by some measurements. The dollar has set new record lows, and continues to fall with no end in sight. While cutting interest rates will reduce the cost of home ownership on a mortgage, the rapid increase in american inflation will quickly swallow up those savings for borrowers, and force the rest of us to cut back our economic consumption. Manipulation of monetary policy will not save the economy this time, we need government action to bring back middle class jobs that were exported in the last 10 years, and the government must provide mortgages at reasonable rates to people who are able to make payments at the "teaser rates" that subprime loan sharks had been providing in the last years before they get raised to high rates. > People making less than 500 000 for a couple will >see taxes lowered. The ones who will see a rise in >taxes are the weatlthy and they should start paying >for thier fair share of this war . No reason why the >war should be ran off the bodies of the middle class >and poor . Let the wealthy give up a little for it for >a change. [ Next Thread | Previous Thread | Next Message | Previous Message ] |