Funeral Procession

Midterm elections over. The people have spoken. The results are being spun as a repudiation of Obama’s policies - yet, perhaps not as strongly as might have been envisioned. Many legislators - particularly the ones representing the coasts - should have been ousted. In Nevada, Reid’s win looks more than suspicious. As does Boxer’s win in California. I believe these elections, among others (involving Democrat wins), were fraudulent. There’s no way to prove it, of course. And nobody will even try.

A more accurate depicter of the mood of the nation is the economy. The health of our economy remains poor and a key indicator is the unemployment rate. The political argument goes round and round: The lack of jobs is due to the poor economy; and the poor economy has produced joblessness. How to improve the economy? How to reduce joblessness to tolerable levels? One way is to define a new norm.

The Fed is poised to print money and inject more liquidity into the system. It is generally acknowledged that this will hurt the dollar. Yet, the Fed - prompted by the White House - is willing to risk inflation just to show a bit of improvement on the labor market. It won’t work. What the White House does not understand - or does not want to understand - is that the government cannot manipulate the economy like they do elections. They cannot yet dictate what the people should do with their money. They cannot yet compel the people to spend, save or hire, and then finesse the numbers to suit. Short of rendering the currency worthless (in which case there is no economy) they are powerless to arbitrate economic solutions.

As such, the economy remains the only venue which allows people to express their confidence (or lack of it) and overall support of the government and its policies. Expect the economy to remain on life support as long as Obama remains in office. I believe that the president knows this. That is why the Fed, at the direction of the White House, is pursuing a course which will ultimately lead to the dollar’s collapse.

Obama’s trip to India can be seen as the first act in the pomp and circumstance of a funeral (procession) that is yet lacking a corpse.

http://pkoelliker.blogspot.com/