Interest-rate forecaster: Economic freedom is essential

Robert Genetski, one of the nation’s premier interest-rate forecasters, believes that additional economic freedom is essential in repairing the economy.

Genetski, known for his conservative outlook and research of classic economic principles, told about 450 members of the suburban business community Thursday morning that there would be an immediate increase in economic activity if Republican presidential nominee Mitt Romney is elected president.

Genetski, who addressed politics, the economy and even religion, is optimistic that that will happen.

“I believe Governor Romney will be elected,” Genetski said. He added, however, that if President Barack Obama is re-elected “it’s not the end of the world.”

The polished speaker quickly followed this up with a comment about the fact that he does pray, adding that his prayers are not for a particular candidate, but for general prosperity.

Genetski, who has become known over the years as an optimistic forecaster, did not have a lot of positive news when he spoke at the Cotillion Banquet Facility in Palatine. Cornerstone National Bank & Trust Company hosted the ninth annual event.

Genetski spoke about the implications of the election.

He said if Obama returns to office, the stock market growth will remain flat and interest rates would stay low for the wrong reasons.

In contrast, he believes if Romney takes office, “there would be an immediate increase in economic activity.”

He also addressed the weakness in the economy as well as the debt crisis in Europe, the country and Illinois.

“We have experienced a serious erosion of our economic freedom,” Genetski said. When he addressed the U.S. debt, he said, “we’re in really bad shape. Government spending is growing too fast.”

He stressed the need to return to classic principles that include low tax rates, free markets and limited government.

He added that we need to move away from Keynesian economic principles that Obama is following.

Participants at the economic outlook said it was timely, as it followed Wednesday night’s televised presidential debate.

“It was so appropriate with the election coming up,” said Greg French, principal and managing broker of French Commercial Realty in Inverness.

Timothy O’Donnell, financial adviser with GCG agreed with Genetski’s views on classic principles.

“He was right on with the need for less regulation,” he said.