I think the 2008 Presidential race will be very different from '04 [View All]

I'm speaking of the issues. 2004 was so close to 9/11 and the Bush administration had made Terrorism the top issue that it was bound to overshadow domestic issues, that usually favor the Democrats.

However, in 2008, for the first time in many election cycles no president or vice president (assuming Cheney doesn't run) will be on the national ticket. In a sense the presidency is an "open seat." I think that the political climate will also be a marked change.

We are already seeing the seeds being planted--The I word is coming back--Inflation. The great domestic issue of the mid to late 70's which had a hand in defeating Ford in '76 and certainly Carter in '80. It isn't only Energy prices but other core rates of inflation are going higher, and the energy prices will ultimately lead to higher costs in other areas being passed on to the consumers.

This will ultimately lead to higher interest rates (already it is) as the FED, like they did in the 70's and early 80's will try to use higher interest rates as a way to slow inflation.

Ultimately this could lead to a recession as it did in 1979-80 and 82-83. While recession may level off inflation and interest rates it will cause higher unemployment.

I think the political pendulum is beginning to turn--unfortunately the reckless fiscal policies of the Bush Administration will lead to more misery for everyone, but if there is a silver lining, it will probably benefit Democrats in 2008, and probably as soon as 2006.