THIS IS NOT ->Delawareliberal


Friday, May 26, 2006


George Bush is bad for the economy and other living things.

The Cunning Realist has a good analysis of the recent stock market dropsy. Here is the money:

The economy is going to founder until interest rates come down, or at least stop going up.

What's troubling is that we don't determine our own interest rates at this point. Essentially, the rest of the world is telling us that if we want to borrow to pay for preemptive wars and a reckless fiscal policy, we can---but other nations won't underwrite it on favorable terms. Think about that the next time your mortgage or credit card payment increases. President Bush gets blamed for a lot, and justifiably so. But this de facto ceding of monetary power to foreigners is an inexcusable and dangerous screw-up. It didn't have to happen.

Where is my apology Mr. Castle? You chaired his election campaign here in Delaware. I want an apology.

Bill Clinton is a smart guy, and he knew the limits of what the government could and could not do to affect the economy. He knew that the lingering Reagan debt and chronic deficits was a cancer that would drag the economy down and severely limit the government's ability to act.

Clinton's spending control and modest tax increases enabled Greenspan to use interest rates as a lever to control the economy, and Greenspan was able to keep all the balls up in the air for an unprecedented amount of time.

But once the deficit and debt become so huge, those levers are out of our hands as jason correctly points out here.

I am convinced the 2000 recession was caused by interests who wanted to get their hands on the sheer wealth that was flowing into the middle class, and they prevailed on Greenspan to increase rates until the desired recession occurred and the middle class was forced to liquidate assets to survive.

Also of course, Clinton's start on repaying the national debt was a threat to those same interests, because the national debt is another major engine for upward transfer of wealth.
You are my class warrior buddy. We should have a beer sometime.
Yeah, if Dems don't take at least one house in November I'll be needing twelve or fourteen beers.

I'll look you up as soon as I figure out what to do about anonymity (still pondering). I like the idea of a Drinking Liberally chapter, combining two of my favorite pastimes. Thing is, a DL chapter needs a non-anonymous sponsor to set it up.
I started the process with DL and stopped when I got overwhelmed with other stuff. It seems like a good outfit.

I was thinking East End Cafe in Newark or maybe the Deer Park.
Your are Excellent. And so is your site! Keep up the good work. Bookmarked.
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