Market Insights and News

Those on the left who read my columns will of course take exception with the title I have deliberately chosen, but that is and was a given. So let me start this by saying that I believe their euphoria at having seen their man win, will be short-lived, faced with the extreme problems facing this nation and their utter lack of anything that remotely resembles a plan to deal with them other than the usual class warfare tact of “soaking the rich” further and further enlarging the size and scope of an increasingly intrusive Federal Government.

I have written on this site repeatedly that the problems afflicting the US economy cannot and will not ever be solved by Uncle Ben Bernanke’s alchemy of turning paper into “money” and multiplying it in ever larger doses. What ails the US is structural or deep seated. To tackle that involves a serious plan, a plan which by its very nature will involve making choices that will surely bring about some short-term pain but which would put the nation on a sound footing for long term growth and lasting prosperity. Foremost among this is reducing the spending binge in Washington DC and getting America’s fiscal house in order. That WILL NOT HAPPEN now that the profligate spender Obama has been re-elected. He has no serious plan to reduce the deficit and never has. One can tax the “rich” into oblivion but even confiscating the entirety of their wealth would not so much as to put a dent into the burgeoning national debt.

Business owners, particularly small business owners, the backbone of this nation’s economic health and the primary source of all job creation, had been holding their breath, hoping against hope, that the nation would be delivered from its national nightmare. They either went to bed last evening or arose early this morning to learn, much to their consternation and dismay, that the nightmare will continue for four more long years. A system of nationalized healthcare, with the IRS being the chief enforcers of the penalty for non-compliance now awaits them along with a set of growing, job-killing regulations guaranteed to put further burdens upon them. Not only that, the beginning of the year 2013, will see a massive set of tax hikes hit the nation, further depressing economic activity.

An energy rich nation, blessed by Providence with an abundance of oil, will see its federal lands shut off to any drilling. Any hope for a pipeline delivering Canadian crude to the lower 48 has now withered and died on the vine. China – enjoy that Canadian oil because we are not going to see any of it.

The Dollar, while getting a respite today due to the fact that a near panic has seized upon the investor class, is destined to further weaken, resulting in higher prices for the basics of life such as food and energy. The fiscal cliff is drawing ever nearer with the very real possibility, nay strike that, probability, that the rating agencies will further downgrade the US credit standing.

In short, get ready for the continuance of the same set of woes that have become all too familiar to us for far too long now. In the markets, expect the wicked volatility to become even worse as they swing wildly between euphoria and despair, based on whether or not the latest dose of funny money injections has temporarily boosted economic activity for a few weeks before its impact then fades once again.

If you have any doubt as to what the markets believe the result of this election is, take a look at the following chart of the S&P 500, the broader measurement of the US stock market. The collapse in the equity markets tells us everything that we need to know about the election results as far as the impact on the economy goes.

This brings me to my last point and to my most controversial one. In observing those election results I have become convinced that this nation, as we once knew it, is a house divided, to the extent that it cannot survive in its present form. There is absolutely nothing “UNITED” about these United States of America.

Among my close friends, I have been speaking to this topic for more than a decade now, having become convinced as far back as the 2000 election, that the nation was headed down the road to dissolution. Let me explain…

As a commodity futures trader, my task is to study TRENDS, particularly longer term trends and by so doing to hopefully profit thereby. There are trends in markets but there are also trends in a society. The trend in this society is an increasing divide between two diametrically opposed political ideologies.

The first of these is conservatism. Those who adhere to this view, and I include myself in this camp, believe in a system of limited government as envisioned by our Founding Fathers. The powers of the federal government are few and well defined with those not specifically delegated to it by the Constitution remaining within the providence of the individual states. “Unalienable” rights procede from God, and as such, are not subject to intrusion upon by the state. The state exists to protect and preserve these “rights”.

  US News

continue article here:

http://traderdannorcini.blogspot.com/2012/11/america-votes-for-national-suicide.html

http://beforeitsnews.com/election-2012/2012/11/america-votes-for-national-suicide-2446818.html