Kevin Phillips, one of the most important political strategists, writers and commentators who served as a senior strategist for Richard Nixon’s 1968 campaign, which was the basis for a book, The Emerging Republican Majority, which predicted a conservative realignment in national politics, and is widely regarded as one of the most influential recent works in political science, says the “Democrats have become the party of Wall Street.”
The Democrats have replaced the Republicans as the big benefactors to the financial community,” said Kevin Phillips, author of “Bad Money: Reckless Finance, Failed Politics, and the Global Crisis of American Capitalism.”
“The financial community is donating more to Democrats than ever before and you’ve got more Democrats in the financial community, creating a very powerful pattern there. I don’t think you’re going to see the Obama administration and Congress willing to be tough enough in dealing with these things,” he told Reuters.
Phillips, who turned highly critical of the GOP and voted for Obama in 2008, published “Bad Money,” his 13th book in 2008. In it he warned of the pending explosion of a 25-year “multibubble” that started in the 1980s. Now he thinks that Bernanke’s war against deflation will result in hyper-inflation once the recession is over. “What we’re seeing by Bernanke is a covert attempt to rebubble”, Phillips said.
“My theory is that if we are in a commodities cycle, what you will get will be more like 1973-74-75 … where as soon as the recovery begins you get rising inflation because you’re going to play havoc with all money supply and liquidity that’s been unleashed ” he added.
Meanwhile, the taxpayer and small investor have little defense.
“The average person is going to be on the periphery of concern and I think that’s rotten,” Phillips said. [via Reuters]