Monday, November 07, 2016

The race to the bottom

The computers have anointed Secretary Clinton as the next President based on the latest FBI memo sending stocks soaring all the way back to their levels from a week ago.

I typically resist the urge to comment on political matters because there is no winning in that arena.  However, I did want to share an article written by another trader on the state of America on 11/9/16.  It's a sobering, yet accurate depiction of the challenges we face and our inability or unwillingness to face those challenges.  We've become a nation of can kickers who allow ourselves to be distracted by the latest social media announcement or random reality TV show (I know this doesn't apply to my readers - I'm talking about the general populace :) ).

I was struck when watching a documentary about the election of 1992 on how Ross Perot was obsessed with our staggering national debt which at the time was $4 Trillion.  A quarter of a century later it sits at $19 Trillion and we're adding nearly a trillion a year to that total.  Using the Federal Reserve's own projections, this debt is expected to cost the US almost $800 billion in interest by 2021.  This assumes that we are able to manage interest rates during this period which is a huge assumption.  If interest rates move more than expected we could easily see our annual interest cost exceed $1 trillion/year or probably 25% of our operating budget. 

Anyway, take 5 minutes that you might otherwise spend watching MSNBC or FoxNews breakdown early voting in some random Ohio town and read "Hitting Rock Bottom".

With regard to our local races, I don't believe anyone is really addressing the big issues.  However, I'll say that I find it very ironic that surrogates for our current Congressional Rep are attacking her opponent for "Only recently moving to the district and own 6 'expensive' properties out of state".  I say it is ironic, because our Congressional Rep has really not lived in our district since high school, but this sums up the state of politics in America today.  Confuse and attack rather than discuss long-term solutions.

Finally, a prediction:
Secretary Clinton wins the Presidency and names NY Senator Gillibrand to become Secretary of State.  Rep. Stefanik runs for the Senate to replace Senator Gillibrand in a special election in 2017.



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