Today's financial headlines include speculation that the Fed will loosen monetary policy--because of the situation in Europe and the economic doldrums in the US. I also believe that the Fed will begin to loosen monetary policy. Not because of the situation in Europe, that has been openly precarious for at least the past year. Not because of the US economic doldrums, we have been living with a best-case scenario of bumpy growth since 2009. But because of the election cycle. With less than six months before the 2012 election, it is time to pump up the money supply. Stay tune for the actual data on elections and short-term monetary cycles in Bernanke's Fed.