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Politics of the economy (Discussion)

oLahav said – Tue, 23 Sep 2008 15:39:17 -0000 ( Edit Link )

The US election is coming up (and so is the Canadian one, if anyone’s interested). And you’ll notice campaign leaders are constantly talking about curing the economy.

The truth is, the economies in North America are in deep trouble. Everybody’s blaming the other party and claiming they’re the only ones who can come up with the right solution.

Do you believe any of them? Do you even care? What are your views and how politics and the economic crisis are being handled right now?

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Author: oLahav; Authority 711

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lucyinthesky said – Tue, 23 Sep 2008 15:56:59 -0000 ( Flag Edit Mark / Unmark Best Link )

I don’t think you can blame one political party or the other. Regarding the United States, I think it’s the Federal Reserve bank, specifically chairman Ben Bernanke, that makes the critical decisions on the economy – the federal administration has to trust their financial decisions because I highly doubt they have the expertise to tell him what to do.

I think it’s difficult to pinpoint blame when dealing with money, politics and investment, simply because we don’t know what really goes on behind closed doors, or who really makes the ultimate decisions and their reasons for doing so. I can’t say that I don’t care – it`s just that I probably don’t know any better, simply because there are so many factors flying around for why things happen the way they do.

Ultimately, an interest rate of sustainable growth is the best solution. Central banks have a responsibility to keep inflation at a low level. If something rises too quickly too soon, chances are it’s going to fall just as fast in the future.

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