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Politics : PRESIDENT GEORGE W. BUSH
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To: DuckTapeSunroof who wrote (484472)10/31/2003 12:03:27 PM
From: Orcastraiter  Read Replies (1) of 769670
 
Liquidity will also have additional pressure put on it because the US is beginning to borrow more money to pay for the wars and the tax cuts for the rich. This additional borrowing will put pressure on available capital and will help to boost interest rates.

Course there will likely be a line held on interest rates going into the 2004 election. The fed almost always keeps rates flat in an election year. But if this is done in a climate where inflation and increased pressure is put on available capital look for a spring effect to significantly raise interest rates through the later part of 2004 and 2005.

Orca
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