Rate (C/G)ut the Earth!
Rate (C/G)ut the Earth! Ganga Prasad G. Rao http://myprofile.cos.com/gangar I am no macro-economist, at least not with the credentials of Greenspan, Bernanke or Dr. Reddy. But I do know that lower inter-bank interest rate set by the Fed cascades down as lower interest rates on home loans and credit card loans on one hand, and to easier credit for businesses on the other. A surprise decision to lower interest rate ultimately means more real disposable income in the hands of the working class and induces higher consumption which in turn spurs production and investment, not to mention a spurt in stock markets globally. Not surprisingly, the boost in consumer confidence and higher economic activity augurs well for the incumbent party that seeks to 'soft-launch' the economy in its campaign to retain power. So what could be wrong with this tried and tested strategy? Nothing, if one did not care beyond the boundaries of one's nation and this generation. But in today's global e