Iraq, Income Inequality Created the Problem Economy, Stupid!

 That's not diected at you, but at mainstream news that pretends it has discovered something new when, in actuality, it's hiding important analysis, again.

As we saw in the late 80s and early nineties, creating a massive national debt by warmongering and inefficient build up of the military helped create the deep recession of Bush 41's last years. 

The former president did help start a recovery by increasing taxes the wealthy, but sensible recovery takes time.  Clinton expanded on the Bush 41 help by re-equalizing the economy from the Reagan great inequality society setting the stage for years of great growth only ended by Greenspan's horrific use of high prime rates that ultimately started the Bush 43 recession in March 2001.

In what appears to be more and more political all the time, Greenspan then dropped interest rates to incredible lows and approved sub-prime lending on a large scale to help the presidency that sources say he was particularly excited about.

Now Bernanky, Bush's new puppy, is looking for a particularly rapid recovery of the economy that is very temporary, of course adding more to that national debt and, obviousl,y due to expire when a Democrat gets into office.  He should be the first to go afterwards -- in  February 2009 if possible.  Clinton learned the dangers of leaving a Republican pet in the slot.  A fed Chief must try to help and economy or lose his seat for the most part, but he can help throw an election by increasing interest rates to extraordinary heights before the next poll.

tags: economy  iraq  national debt  bernanke  fed  interest rates  greenspan  

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