Quote:
Originally posted by CamB
Big swinging dick economist states that tax cuts were a particularly crappy way to try and grow the economy:
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don't use that for a clear pic. That group has interperped the situation to defend their position. It's a former treasury sec Robert Rubin group think. Clinton's Rubin still defends his wrong position about NAFTA and Mexico. An easy clear pic of that article can easily be seen if you look at the forecasting history of the Congressional Budget Office. It has creditibility for fact finding, not forecasting. It's almost a given that if it says the direction is going one way that it will probably go the other. Todays US inflation is a direct result of US Fed Reserve Chairman Greenspan's lack of reacting to the increasing prices of commodities. He was more concerned about an economic slowdown instead of the dollar value. Greenspan is reacting now somewhat, but he's about a year late. His slowly raising of the Fed Funds rate is not leadership but of following the present market's position. His concern has been stability as seen from raising the Fed Funds rate and 10yr note interest rates falling. The weakness of his position is the failure to attack inflation by a noticable increase in the Fed Funds rate and causing a belt tightning.. The Fed Reserve has historically been reluctant to disturb the markets during Presidential elections. It doesn't matter what party is in office. Party politics manipulates info for their own political gain. An attack on inflation will probably cause an increase of unimployment which will be blamed on the current president who is in office. The associated uncertainity will ripple into the markets. Markets do not like uncertianity.