Ugly Reality Sets Back In

Simplistic analogies absent causative details are not an answer to anything, just as endless partisan finger pointing are part of the problem not a solution.


The fact remains when the Dems took over Congress in 2006 and the White House in 2008 they thought they had carte blanch to undertake and endless stream of spending in pursuit of their utopian socialist dependency dreams. With their secure super majorities in both houses, they added nearly $5,000,000,000,000 to an already insurmountable debt, made an already dismal unemployment number worse and in essence kicked the crutches out from under an already hobbling economy with a new and endless sea of stealth taxes on business via the cancerous growth of regulations. Many of which exist for no other purposes than to exercise government control and justify the existence of a new raft of Federal bureaucrats.

With all these facts laid squarely at their feet, both the public and the markets reacted. Firstly global markets contracted under a tide of inflation and uncertainty. Secondly the voters (the very same ones who were praised as paragons of wisdom and virtue for putting the Dems in power) resoundingly threw them out of the House and greatly diminished their numbers in the Senate. So now these same voters are subject ridicule and derision as ignorant and partisan because they got slapped in the face by the consequence of their folly of electing these arrogant fools and elected a different bunch of arrogant fools.

The Dems have seen what they thought was going to be decades of dominance (can you hear me Mr. Carville?) snatched away in but an instant, and they are desperately thrashing about to find a scape goat to blame, anyone to blame but themselves for their own folly.

Now the new bunch of arrogant fools have co-operated with the old bunch of arrogant fools and added another $2,400,000,000,000 to the aforementioned insurmountable debt and again the markets react with further contraction and flight to hard assets and we get the same game played again. Both bunches seek to blame anyone but themselves for the consequences of their folly.

So now after the schizophrenic reaction on the DJIA to the FEDs announcement that zero interest rates will continue, money moved out of bonds, where low interest plus inflation means a net loss, and into dividend paying stocks. But then it only took until this morning for the ugly reality to set back in and the markets are again sinking like a stone. Gold is again reaching new highs and has even surpassed platinum in price. The Italian stock market has been shut down in a vain attempt to stem the exit of cash. The Dow again invokes rule 48, for the second day in a row. The Swiss Franc continues to soar against both the Dollar and the Euro.

But fret not the arrogant fools of both parties will continue to delude themselves (and try to convince you of their delusions) that there is a “political solution” to a systemic problem of economic and monetary misalignment. Sadly the partisan hacks on both sides of the aisle will buy into it and make of themselves just as big a bunch of fools as those in Washington.