It is clear that Republican House members favor European style austerity measures during a time of economic ambiguity. Today, they stampeded towards tighter monetary policy, a stronger dollar, after coming off a jobless recovery from the worst economic crisis since the Great Depression. Fortunately, the Fed is level-headed, taking a wait and see approach after two rounds of QE. Typically, in an election year, we can expect lower gas prices and little Fed intervention. However, this year may be different if Europe fulfills the on-going self-perpetuating prophecy of failure. If the situation does get worse, I have no doubt that Mr. Bernanke will take the lead to supply the market with the needed stimulus. China acted today to lower their benchmark rate. If the U.S. engine follows suit, I expect we should see the Fed in action in the next 2-3 months.
It is always favorable to the challenger, Mr. Romney, to pursue office during a weak economy, given that persuading voters to favor change is much easier when people lack jobs. My guess is Mr. Bernanke is none to happy with the harsh criticism the Fed receives from lawmakers who are not very knowledgeable of the policy blunders of the GD. Never mind that every single bank in the country was insolvent, until the Fed instilled confidence in the system and propped up institutions all over the world through secret liquidity operations. We will let history do the talking. Even Mr. Larry Kudlow acknowledged that the problem is deflation, not inflation, and we know he always hails "king dollar."
I am no fan of loser mentality, displayed by pessimistic approach during general elections. If lawmakers did their job as well as Mr. Bernanke performed his, perhaps we would not be stuck with high unemployment. Infrastructure spending will go a long way to putting blue collar Americans back to work. This cohort is plagued by less education and hence, unemployment rates higher than the norm. It is not necessarily in their interest to support the Republicans, but it appears Mr. Romney will capture the majority of the vote from the uber rich and less educated states in the south. I anticipate those with bachelor's degrees or higher will vote favor the incumbent, although this depends on their own employment situation and standing in the current economy.
It is always favorable to the challenger, Mr. Romney, to pursue office during a weak economy, given that persuading voters to favor change is much easier when people lack jobs. My guess is Mr. Bernanke is none to happy with the harsh criticism the Fed receives from lawmakers who are not very knowledgeable of the policy blunders of the GD. Never mind that every single bank in the country was insolvent, until the Fed instilled confidence in the system and propped up institutions all over the world through secret liquidity operations. We will let history do the talking. Even Mr. Larry Kudlow acknowledged that the problem is deflation, not inflation, and we know he always hails "king dollar."
I am no fan of loser mentality, displayed by pessimistic approach during general elections. If lawmakers did their job as well as Mr. Bernanke performed his, perhaps we would not be stuck with high unemployment. Infrastructure spending will go a long way to putting blue collar Americans back to work. This cohort is plagued by less education and hence, unemployment rates higher than the norm. It is not necessarily in their interest to support the Republicans, but it appears Mr. Romney will capture the majority of the vote from the uber rich and less educated states in the south. I anticipate those with bachelor's degrees or higher will vote favor the incumbent, although this depends on their own employment situation and standing in the current economy.
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