Prediction: March 17, 2008
ECONOMIC & ELECTION 2008
Prior to President Bush’s first election win the economy in Canada and the U.S. went terribly sour for about a year before the election. Some believed this was an Economic cycle asserting itself, others believed it was due to the prospect of a Republican White House; this is for the Historians to determine. The reasons for the current economic malaise are easier to identify; Trillions in debt for an unpopular War in Iraq, bailouts of Mega Banks brought about by their own greed and complicity, millions of U.S./Canadian jobs sent offshore by the large Corporations motivated, once again by greed, for short term profits.
There is no doubt in the mind of the average American; the Democrats will reside in The White House in January 2009. The minority that would dispute this are The Republican Party faithful whose job it is “to soldier on in the face of certain defeat.” Senator Hillary Clinton or Senator Barak Obama will be the next President. I respect and admire Senator John McCain for his military and political service over many decades, but the battle has been lost by The Current Administrations policies.
ECONOMIC OUTLOOK
The new administration, next January, even though “saddled with the debt from the previous administration”, will begin making moves that will “shore up” confidence in the flagging economy. A troop pullout from Iraq has been mentioned repeatedly, some troops will be withdrawn but a robust force will be in place for decades! Post war investments in rebuilding the U.S. Military will be required, this is something Democrats and Republicans should be able to agree on. This will be long term funding and money well spent for future security requirements. The housing debacle currently playing out, was brought about by poor oversight provisions – “small government” promoted by Republicans? This will escalate to crisis proportions long before the election; will House Democrats & Republicans be able to salvage less affluent American’s homes? Demand it!!
In the summer of 2009 the economy will begin to rebound, slowly but without doubt. As Iraq begins to take the field against the insurgents, exported by close neighbors to cause America grief, with the Iraqi Army’s growing capabilities and competence will come success. World Financial Markets will recognize the positive changes in American Fiscal Policy and it will be time to return to “business as usual.” OPEC will realize that a worldwide recession is not in their best interests and will make efforts to bring the price of oil to a reasonable level $60/65/barrel?
