The Best Recovery Money Can Buy
by badwillie 1 Replies latest social current
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Yerusalyim
Interesting.... my comments in red...
One possible cloud on the horizon is that falling inflows of foreign, mainly East Asian funds into the US may force a rise in interest rates in the run-up to the election. Hmmm....interest rates are the lowest they've been in 40 years...the Fed isn't predicting raising the prime rate...but even if they did...even by a full point...the interest rate would be lower than anytime in the last 30 years or so. Another is that the oil producing exporting countries (Opec) actually OPEC is The Organization of Petroleum Exporting Countries...he needs to do more research may get fed up with the decline in the value of their dollar earnings and push up the price of oil. That was the trigger point for the first oil shock of the 1970s). The failed arab attack on Israel in 1973...and the west...especially US support of Israel was what caused the first "oil shock"
But for the moment George Bush is riding high on an economic revival that everyone except most US economists and investment bankers knows means trouble via the twin budget and trade deficits in the medium term. As for the fiscal stimulus, more and more commentators are noticing that it is not just tax cuts that are boosting the US economy but vast increases in militaryquite UNTRUE...unlike the economic growth in the Reagan years...the increase in Military spending both as a percentage of the budget...and the economy is quite low. - or, in the case of lucrative contracts in Iraq, militarily-induced - spending. That 1950s-style military industrial complex is back. hyperbole.