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It’s Obama ....

November 06, 2012

What will be the impact on the northern economy, on Alaska in particular with Obama’s win ? 

Since the 2008 financial crisis the United States has pursued a stimulative ($1 Trillion + deficits) fiscal policy while the Fed has followed an ultra-aggressive policy of easy money. Yet the wisdom of these policies is being questioned by some in the investment community as the US economy struggles with anemic growth of about 1.5%.

Any move to restore fiscal balance would be painful in the short-term. The Fed’s money-printing is causing lower economic growth. It will be difficult to unwind its $4 T balance sheet. More economic pain lies ahead.