Politics and the Political Environment in America
Everyone loves politics right? Whether you are right, left, a donkey, elephant or in the ‘Other’ category, you cannot deny or ignore the importance of the impact people who participate in the political arena have on your lives. Most of us have a tendency to bury our heads in the sand when it comes to who we choose to have a significant role in the direction our country is heading because the choices are so bleak, but it is time for a wake up call.
You have given control of your country and your destiny to these people sitting in office, but the system is clearly broken and we have not done anything to fix it. Why should we? It is functioning, right? If you said yes, then let’s raise the red flags. In the last days of the Roman Empire, everyone thought the system was working great right up until the entire political machine imploded on itself. Buried under the weight of infrastructure and avarice, the Roman Empire could not maintain the discipline necessary to operate the government because the government became too big to manage.
Politics and Entitlement
We are at the same crossroads only on a much larger scale. Further, read Alexander Tytler’s treatise on entitlements. A politician from the 1700’s, he forewarned that any country who opened their treasuries to the masses was doomed to fail, not because of the entitlements, but because people would become dependent on those entitlements and then increasingly continue to vote those into office who would continue to grow government and government handouts. We are at the highest level ever in history with the Census announcing that 21.3% of Americans are on some form of government assistance. No red flags yet?
If you think we are fine and can continue in the direction we are moving toward, then this section of the site is probably not for you. Politics plays a major role in our economy and where we are headed in both the near and long-term future, and it is looking pretty bleak right now. In the last eight years, we have had an administration that has added over $6 trillion (with a “t”) to our liquid debt. Take a look at our Debt Clock courtesy of US Debt Clock. The interest alone is over $2T and our interest rates are being artificially held at or near zero because we cannot afford to service our own debt at a rate higher than this.
Politics and the Economy
The impact of politics on the market goes without question. The print freely policy has fueled the market to a level that is eerily similar to the housing bubble. In other words, the prices at P/E are not sustainable and yet everyone continues about their daily business. The false recovery we have experienced since the collapse (sorry “Recession”) will result in a bounce far worse than what we experienced previously. Ask any graphing or statistically oriented person you may know and the answer will be the same. Here are some disturbing charts.
So how do we fix the system? From the ground up in a grass roots effort that must literally clean house and reform the system from within. It will not be easy since the foxes are in charge of the hen house, but career politics must end. We are working on building consensus and invite feedback, ideas and support. We must solve the problem collectively to generate enough force to effect change. Here is where we begin. If you would like more insight, please subscribe to and support our newsletter that will be coming out soon.