I really don't think it matters who is elected. Unless one party has their person in the WH, has a majority in the House and has a super majority in the Senate we are in for more name calling and finger pointing.

In such a scenerio, if the Dems carry all three get ready for huge tax increases. If the Repubs have it look for huge tax cuts and correspondingly huge additions to the national debt.

Regardless expect interest rates to stay low as 28 or so cents of every dollar pays interest on the national debt. If interest rates rise, expect massive tax increases or severe across the board cuts.

No matter who wins we are headed down a dark path.

Abrignac wrote:

Robert I agree with Abrignac.

The real battle is DECENTRALIZING the federal beast and having four branches of gov't again. Two parties wouldn't hurt.

ZRX1200 wrote:

We will get the figurative separated branches if we start respecting each others' rights to differing opinions and stop the infantile bickering and name calling.

rfenst wrote:

And... it is all Bush's fault, right?

rfenst wrote:

I generally agree too. Was just being sarcastic. What i don't agree with is interest rates remaining low. They have to rise. It will be slow if we work out of the recession slowly over time and will be sudden if we try to finish the back end of recession recovery fast.

We will get the figurative separated branches if we start respecting each others' rights to differing opinions and stop the infantile bickering and name calling.

rfenst wrote:

I don't think the Fed will even think about raising rates anytime soon. Think of the repercussions.

It would require another significant increase in the debt. Which would in turn require an even higher percentage of taxes go to paying off that debt, lest the Fed says fuqq it we're not gonna pay this month. In that case, if taxes are not raised then cuts will have to be made elsewhere which leaves entitlement programs or defense. Good luck knifing any of that. I can't see any Repub voting for tax increase at this point.

So where does that leave us? A new spending cap which adds more to the national debt, which increases the percentage of taxes for debt service, which.....and the wheels on the bus go round and round, round and round....

Abrignac wrote:

Everything can't be about national debt and the Fed. There is a lot more to interest rates than those two factors. Instead, they are ultimately controlled by markets (which the Fed can only have so much impact on).

rfenst wrote:

Doesn't the Fed set bench mark interest rates? In turn Treasury Securities are offered at auction by the Treasury Department with a set interest rate. But, the relative discount or premium the securities are sold at is in direct relationship to the current market supply and demand. However, if these instruments are sold at a discount (interest rates rising), then more securities must be auctioned off to obtain the same amount of cash had those securities sold at face value or at a premium.

Should the Fed increase rates, then the marginal rates on the securities will either increase, or they will be sold at a deeper discount than before. I'm thinking either scenario leads to a larger percentage of tax dollars needed to pay interest on the current debt.

Abrignac wrote:

N' Stuff.

ZRX1200 wrote: