| This is all part of the real Bernanke plan for QE III. Bernanke's historical perspective is that the fiscal austerity that arose halfway through the great depression made matters worse, not better. Considering all the B and C team Republican players running, and on voodooTea Party economic policy, no matter how quaint and provincial, I expect the XL pipeline will be approved, but not until it is sold as part of an Obama jobs program, and along with a late depression era style infrastructure spend program (QE III). North American and European economies are undergoing debt deflation in the private sector. For the financial system to survive, gov'ts must step in and replace that debt. Low 30 year "long bond" rates set up the environment for gov't and private sector spending for infratructure builds, which is the bedrock for future economic activity and growth. Political rhetoric aside, actions indicate Obama has moved and occupied the right of centre space, forcing Republicans even further to the right, to a point where Republican fringe politics have come to the fore, and that cannot elect a party leader that can win the White House. |
