PRESIDENT GEORGE W. BUSH Message Board

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Politics : PRESIDENT GEORGE W. BUSH

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To: pompsander who wrote (745583)	7/18/2006 3:57:09 PM
From: DuckTapeSunroof	Read Replies (1) of 769670

Re: "...I don't know. Pandering to the base seems the way of the world." Yah... but it's SUPPOSED to be a tactic that wins you votes ober-all... not one that loses votes. (IMO --- as I'm sure they know these basic political facts --- it seems to indicate great weakness, and a flailing around for votes: a gamble, possibly a bad one. Not to mention the immorality of it, of course....) Re: "If we do have a recession next year (a really scary thought)" I'd count on it. The Fed is engineering it right now, making the rational policy choice that recession is the lesser evil compared to a serious inflation outbreak. If inflation gets seriously entrenched in the economy, with inflationary expectations around 6.5% or higher, then the Fed would have to react with some MAJOR, 'Volker-style' tightening.... And, what could have been a 'normal-sized' recession might turn into a huge downturn. Count on a domestic recession. The Index of Leading Economic Indicators (best predictor for recession we have) is now down 6 months in a row.

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