Has US Federal Reserve Policies Been Engineered for President Obama’s Re-election?

I have been arguing that Fed policies have been designed for the re-election of Barack Obama.

More clues from LVMI President Douglas French at the Laissez Faire Books,

In their paper “Social Mood, Stock Market Performance and U.S. Presidential Elections: A Socionomic Perspective on Voting Results,” researchers at the Socionomic Institute studied the results of every presidential election, since 1792. According to the paper, stock market performance is the best predictor of election results: better than unemployment, GDP or inflation.

It turns out, the higher the DJIA, the better the chance of re-election. Voters give incumbents a pass for their first year in office, figuring it was, in this case, George W. Bush’s fault. So the Dow 30 stood at 9,712.73 on Oct. 30, 2009, when Obama started his second year. That’s the point of no return. It will take a 25% market meltdown, from over 13,000 on the Dow to below 9,712, for Ann Romney to start thinking about rearranging the furniture at 1600 Pennsylvania Ave.: That is if the social mood folks have it right.

So while the Fed’s money policy hasn’t produced more jobs (and won’t), the ground-hugging interest rates have levitated the securities markets and may just get Obama elected to four more years.

Job One in Washington is to be re-elected. How Lord Keynes’ methods get it done doesn’t matter.

This only goes to show how inflationary policies benefits the political class and their allies.