There is little time left before the 2016 U.S. presidential elections. The U.S. will take a step toward a future without President Barack Obama. Now, we need to discuss the question of whether Obama's successor, even if he or she is elected from the Democratic Party, will follow in Obama's footsteps.
Certainly, Obama's second term in power was the beginning of a new era of capitalism. Obama put forward and strove to implement a vision that was based on the idea that the U.S. would follow Asia's new development path and would compete there. Unlike in the past, this new development path, which is a pacifist and non-expansionist one, goes beyond borders and Obama put forward and strove to implement a vision that was based on the idea that the U.S. would follow Asia's new development path and would compete there. Unlike in the past, this new development path, which is a pacifist and non-expansionist one, goes beyond borders and does not hide technologies. This vision can be described as a new knowledge-based capitalism, which is the beginning of a path that economically supports world peace. Obama will put his stamp on history with such endeavors. In this period that has been initiated by Obama, undoubtedly, arms industry and relevant old industries will exist in a strong way, however, they will not be able to be determinative. The emergence of this new capitalism will also be an important opportunity to achieve world peace. Indeed, the framework and instruments of recent monetary policies that have been developed by all central banks, particularly the U.S. Federal Reserve, should be discussed with this basic approach. For instance, the fact that the Federal Reserve will inevitably launch interest rate hikes should be addressed in this context, since it also has quite a political aspect.
I think, as a politician who assumes responsibility for peace, Obama, as well as Federal Reserve Chair Janet Yellen, observes not only the U.S. economy, but also the world economy, and acts with this intention.
The Federal Open Market Committee (FOMC) has been keeping benchmark interest rates at nearly zero since December 2009. The FOMC said in a statement last Wednesday that some restrictions on economy would be eased in order to pave the way for "moderate" growth. Definitely, however, this "moderate" growth fails to satisfy the Federal Reserve's employment and inflation targets. The unemployment problem in the U.S. is the main reason for incidents such as the Baltimore protests. This is why the Federal Reserve refrains from the certain time about interest rate hikes, which will be a first since 2006. In March, the Federal Reserve ceased to suggest being "patient" about the interest rate rise, replacing it with a statement that one should be "reasonably confident" that the inflation was heading toward an objective of 2 percent.
Figuratively speaking, the interest rate hike that the Federal will launch for the first time since 2006 will be a signal flare and the "crisis machine" will start to work for developing countries. This means that the crisis that broke out in 2008 might reach a deeper global phase and it might have serious and undesirable political consequences for humanity. During his two-term incumbency, Obama has sincerely worked to achieve world peace, deserving the Nobel Peace Prize. Then, Obama must know what an untimely interest rate hike would mean.
In his "The Economics of Global Turbulence : The Advanced Capitalist Economies from Long Boom to Long Downturn, 1945-2005," where he gets to the bottom of the current crisis dynamics, Robert Brenner makes the following statements about the path, which started with the Plaza Accord in the U.S. in 1985, continued with the Reverse Plaza Accord in 1995 and resulted in the 2008 crisis. According to Brenner, the dollar, which plummeted after 1985, started the recovery of the U.S.'s manufacturing industry and considerably enlarged the export-oriented "East Asian miracle." When the dollar began rising in 1995, it began overwhelming the U.S. manufacturing industry. Brenner suggests that such a situation resulted in a speculative bubble and large regional breakdown, instigating crisis and war.
This book is one of the most significant scientific works describing the dynamics of the 2008 crisis. It is obvious that if the Federal Reserve repeats the policy of the 1995 Reverse Plaza Accord, the U.S. will suffer from it most. It will foil all the steps and gains that Obama has achieved for the sake of peace. We acknowledge that Obama has served an honorable pre
sidential term and deserved the Nobel Peace Prize. We believe that this term will end presenting a peaceful economy to the world.