Good Sir, President Obama, you and your party have been rebuked tonight, not because of your parties name, but because of its impotent results. If the economy does not turn around, you Sir, will be a one term President, deservedly so.
If we are to take the newly elected republicans at face value, this country is about to return to “German-style” fiscal conservatism, which should effectively cancel out all plans of government stimulus and bailouts, no? Yes, from here on forth, all law abiding Americans are bounded by their honour to wear checkered pants, bow ties and smoke egregiously long cigars, while overlooking a fiercely lit fire. Based on campaign promises. business is back. Taxes will go lower and regulations will cease to exist. However, before we get to enjoy the chocolate cake, we must work through the mud first. We must impose harsh austerity measures, which will strengthen the dollar, weaken gold, stocks and commodity prices, in order to return America to fiscal conservatism.
If we are to believe what the newly elected republicans campaigned on, the Federal Reserve will be reined in and QE2 will be canceled. After all, how can they allow the Fed to waste another trillion dollars under their newly formed fiscally conservative government? Moreover, the markets should be on notice, effective immediately, for deflationary policies to be enacted by our newly formed government. Out with the old and in with the new, yes?
Naively, I am forced to believe everything changed today, because the votes are in. The people have spoken, no?
Oddly enough, the cynic in me says “nothing has changed.” The government has zero power over the great corporate lobby. The cynic in me says oil will remain ludicrously overvalued and gold will sustain its value, while the dollar continues to make new lows. These people who are elected know what needs to be done but lack the balls to do it. I say this with confidence because I have seen this puppet show before and I know how it ends: trillions in deficits, staggering liabilities and the end of America’s hegemony over its foreign subjects.
For the sake of my children, I hope to be proven wrong.
NOTE: Many thanks to Jakegint and Woodshedder for making tonight a memorable and enjoyable election. We should do this again.