The zombies win. Dow down more than 300 points.
Apparently, the anticipation of an Obama victory was better than the actual thing. Or, to put it another way, investors bet that Mr O would win. But when he did win they cashed in their positions.
Yes, dear reader, what this tells us is that investors aren’t as dumb as they seem. They thought an Obama victory would be good for stocks initially (with his backing for Ben Bernanke and more federal spending), but not for the long run.
And they’re probably right.
As you know, what this country needs is real stimulus…not phoney stimulus. It needs to put more resources in the hands of the productive sector of the economy…not more money in the hands of the zombies.
But Obama was the zombie candidate. So was Mitt Romney, for that matter. Obama favoured the zombies who work for the federal government or get money directly from it – such as food stamp recipients, the disabled and government health care dependents.
Mr Romney favoured the retirees too. But he also had a soft spot for the bigger zombies – those who got their money indirectly, from contracts from the Pentagon or those who work on Wall Street.
We threw our hat in the ring because we hoped to provide voters with a real choice. They could write in Bill Bonner. Our campaign platform was simple: Zombies Out!
But you’re probably thinking that our campaign of “Zombies Out” was unrealistic or unworkable. Not at all. It was extremely simple and easy to apply.
First, we cut taxes in half. Immediately, people have a lot more money to spend…the economy would perk up right away.
Second, we cut government spending in half. The old meat axe approach. Just whack every budget item in half. If the zombies howl… whack out the other half too!
Third, repeal the ten biggest small-business paperwork nightmares:
Energy Conservation Standards, Affordable Care Act Menu Labels, Transportation’s Hours of Service Rule, Affordable Care Act Vending Machine Labels, NLRB’s Union Notification Standards, Education’s Gainful Employment Rule, EPA’s Fracking Regulations, Dodd-Frank Regulation Z, Affordable Care Act Physician Fee Schedule, Dodd-Frank Regulation E.
Together these cost small businesses $3.5bn annually. And they add 28.7 million hours of paperwork.
Of course, we never had a chance. As far as we know not a single person voted for us. Not even the candidate himself. Why waste time voting for someone who couldn’t win?
But that’s the point. No one can win high public office today without zombie support. There are too many of them. They’re hanging out on every street corner and hiding in every congressional bill. Half the households in America get money from the government…which is more than you need to elect a president.
The system is fundamentally corrupt. People vote even when they have an obvious conflict of interest. It was as if a corporate CEO were allowed to vote on his own pay package. It’s not supposed to happen.
When you have a conflict of interest – in civilised democratic institutions – you are supposed to declare an interest and abstain from voting.
Instead, in this latest election, the Obama team sent groups of volunteers into poor neighbourhoods with the express purpose of rousting out the zombies and getting them to the polling stations.
Now, it’s no longer possible to win a major election appealing to voters’ higher instincts or their independent judgments as to what is best for the nation. They depend on the feds.
Their judgment has been compromised… bought…and suborned. Now, you have to appeal directly to their sense of greed and entitlement. It’s now an “entitlement society”, says our old friend, Marc Faber.
‘I’ll give you more… he’ll give you less,’ says one candidate.
‘No…with me… you’ll get more. He doesn’t know how to give you more,’ counters the other candidate.
And so…whoever wins…MORE is what you get.
As it stands the US federal government is on target to add $10trn to its debt over the next ten years. The congressional response to this emergency is to propose to cut $1.3trn from deficits during that period. So, even if the proposal is fully implemented, the debt will still rise by $8.7trn.
Whoopee! We’re all going broke. And no point in appealing to the zombies’ sense of civic duty to try to stop it.
It’s too late. The election is over. The zombies won! And now, they’re going to continue sucking the blood out of the productive economy…until it finally collapses.
for The Daily Reckoning Australia
From the Archives…
A Deflationary Conclusion to China’s Bubble
2-11-2012 – Greg Canavan
When ‘Nanny State’ Deficits Becomes Unviable
1-11-2012 – Marc Faber
Why Economists Are Jackasses
31-10-2012 – Bill Bonner
Riding out the Storm
30-10-2012 – Dan Denning
What We Couldn’t Say on CNBC About Economic Stimulus and Other Things
29-10-2012 – Bill Bonner