Fed Report on Business Conditions

The Fed confirmed the economy is in a persistent state of stagflation as independent observers readily predicted from the outset of the Bush tax cuts and the Fed always supported as sound economic policy.

Identifying the determinants and recognizing the indicators for a stagflationary trend is to admit that the Bush tax cuts (trickle-down economics, or more recently known as Reaganomics) does not work even with a multi-billion dollar stimulus package. The evidence is overwhelmingly negative, yet the speeches at the Republican National Convention were strong positive on continuing the Bush tax cuts.

The convention speeches did not mention how the highly regressive tax code resulted in a huge budget deficit and stagflation, just like when it was called Reaganomics.

For conservatives, this is not a case of making the same mistake over and over again, but a successful means of cycling the political economy from contraction (accumulation) to expansion (distribution) of wealth.

An Obama executive will hasten the distribution phase of the cycle, producing wealth to be later consolidated in the accumulation phase of the cycle.

The Hamiltonian model of political economy (Reaganomics--the Bush/McCain tax scheme) does not allow the vast majority of Americans to keep the wealth they create, but consolidates it through a regressive tax code and consolidation of industry and markets.

The allowed consolidation of indistry and markets creates a demnad for government which is financed with a regressive tax burden, keeping the rich rich and the poor poor in an endless cycle of boom and bust, or the business cycle. The Fed's report today confirms the highly predictable, but preventable, phase of the cycle that is completely dependant on the tax code and the amount of allowable pluralism in the marketplace.

Progress the tax code, deconsolidate the capital and markets and the phenomenon of the Republican National Convention will be limited to a sociological farce without the possibility of political practicality.

If you want economic stability and a prosperity that is a personal financial security beyond the top one-to-ten percent class of incomes...let the majority rule!

Join the coalition for Obama/Biden 2008!

Very best wishes.