I'd love to view that site... unfortunately it seems to go to some sort of bizarre framed up search engine thingie that makes my popup blocker scream.
Call me skeptical, but I find it dubious that there'd be any fiscal wisdom coming from a site that feels it necessary to jam a bunch of popups onto my screen and, when failing, falls back to a 'search engine'.
However, as you seem to be completely enamoured of this particular pundit, perhaps you can enlighten us on how the economy is stable when:
- People's average savings rate is less than 2% (that's AVERAGE, mind you, not median... meaning there's a whole lot saving less, and probably NONE, to offset the richer types who can afford to sock it away)
- The average citizen is in debt up to his eyeballs, with the average personal debt nearly that of GDP, and climbing. A whopping 42% either don't pay, or make minimum payments, on their outstanding CC bills.
- A realestate bubble exists that is built on top of very low interest rate loans to the aforementioned average citizens who're in debt to finance those homes, many on razor-thin margins of comfort beyond the loan payments, such that an increase to interest rates would cause foreclosures and bankruptcies on a major scale.
- That the treasury has been printing greenbacks like a madman and selling them to foreign banks to help cover the massive trade imbalance, and that interest rates will have to rise to ward off inflation when those foreign banks reach the limits of their tolerance for absorbing these debt tickets in lieu of actual trade. Rember that all those dollars are cheques, and one day those foreign banks will come calling to cash those cheques.
Right now, things are crappy but obviously could be a lot worse. I do not, however, share your optimism in the future of the USD as a solid currency under the current situation. I would be much more enthusiastic if the following policies were put in place:
- Balance trade. This is probably the biggest issue to affect the country overall. The mindless consumption has to come to an end before the whole game torques itself into a hyperinflationary spiral.
- Give people incentives to save some money and not mortgage their lives away on frivilous and useless bullshit. Raising interest rates would be a good way to do this, but with obvious bad results given that most people are in debt to the teeth right now. In any event, the current trend of spend spend spend before you earn is A Bad Thing(tm) and will come to an ugly conclusion.
However, as neither of those situations seem likely at the moment, I'll put more of my faith in the Euro, Yen or Renminbi.
I will say that there's a certain amount of truth to the Bush = Low Interest Rates scenario you suggested. If you look at the Fed's actions in the past, he's generally cut interest rates for republicans, increased them for democrats. Whether or not he does that because he's politically motivated or because the fiscal policies in place at the time demand his action is a matter of debate, but traditionally GOP = Low interest rates (for good or ill).