Wednesday, July 07, 2004

Reason for Republicans to Vote Kerry and Democrats, Nader

If your candidate wins the presidency look for him to bear the blame for any problems which occur one year later. What are the likely burdens to bear in late 2005 and all of 2006? Inflation is heating up and this will be followed by a price-wage spiral. Gas prices are the primary cause and if they continue to rise with the increased consumption, inflation is not going to slow. The Federal Reserve will continue to fight it with higher interest rates. However if oil prices continue to rise, raising interest rates will not slow inflation. Radical changes in how we fuel our cars, factories and homes would put the brakes on. With high interest rates home values come tumbling down. No more refinancing, no more spending. Combine this with more outsourcing to give investors a profit and to keep prices low enough for consumer spending to continue and you have a formula for stagflation. Remember stagflation? Inflation, underemployment, declining real wages and purchasing power. Any effort to stimulate the economy further with more tax cuts and increased spending will only serve to force the fed to raise interest rates higher. I am not an economist and so I might very well be misreading this but I don't know of how this can be avoided short of new alternative fuels coming online very quickly. If you're a Democrat you want Bush to take the blame for this mess. If you a Republican you want Kerry to be the scapegoat. Solution: vote for Kerry or Nader. Whoever wins loses big time in 2006. I welcome someone wiser than I to tell me why I am wrong so I don't feel my stomach turning when I walk into the voting booth.

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