The election aside...
Our economy is in quite a dire predicament. The Federal Reserve has cut interest rates again another half a percent--down to 1.25%. This is very close to the 1.1% price deflator used in the third-quarter GDP report, meaning we could have a situation where interest rates go below the inflationary rate. The worst case scenario is still looming: interest rates cut down to the bone, with the economy still not moving. This situation is what happened to Japan with its prolonged recession.
I really don't think many people are really understanding the severity of this statement. There is this assumption that the economy will just correct itself out of the blue, and there is no sign that this is going to happen. The traditional Republican avenues--tax cuts and rate cuts--are not working. It is my fear that, indeed, we have no choice but to head where Japan was economically in the 1990s with the current state of federal leadership.
Melon
Our economy is in quite a dire predicament. The Federal Reserve has cut interest rates again another half a percent--down to 1.25%. This is very close to the 1.1% price deflator used in the third-quarter GDP report, meaning we could have a situation where interest rates go below the inflationary rate. The worst case scenario is still looming: interest rates cut down to the bone, with the economy still not moving. This situation is what happened to Japan with its prolonged recession.
I really don't think many people are really understanding the severity of this statement. There is this assumption that the economy will just correct itself out of the blue, and there is no sign that this is going to happen. The traditional Republican avenues--tax cuts and rate cuts--are not working. It is my fear that, indeed, we have no choice but to head where Japan was economically in the 1990s with the current state of federal leadership.
Melon