So Much For That

The market has given up the open’s gains already, while for some inexplicable reason crude pushes higher.

My office is inundated with commentary from the pols, especially vermin from CNN, explaining how spending cuts will unquestionably lead to a global depression.

Guess what. That’s probably already going to happen regardless.

You don’t destroy this much wealth and not have fallout. The US government keeping a relative pittance of citizens employed while simultaneous controlling a quarter of the country’s transactions is not going to stave off that reality. In fact, looking at the kinds of people you find in our government, I’m guessing it’s making things worse.

Everyone wants to be the French, circa the late 1920’s. Manipulating their currency and coming out on top for it.

But everyone is trying to be the French after WWI at the same time. It only worked for them because they were selling to everyone else. We can’t all be the cheap labor all at once. So instead, you have currencies all racing against each other to the bottom, and it’s exacerbating the situation.

Frankly, I’m all about playing chicken with the debt ceiling. Best case, the government gets much slimmer. Worst case, it gets much slimmer anyways, but a few people get their fingers bit in the process.

The most likely outcome of this though is the US Government is forced to give up discretionary expenditures and reform entitlement, plus fire some of their bloated workforce, and afterwards the certainty of the currency brings back cheap imports.

I love me some cheap imports.

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