WASHINGTON - November 4, 2010 - The deck chairs on this particular Titanic were rearranged at mid-week, the Republicans winning the House of Representatives and the Federal Reserve launching a second round of quantitative easing.
Wall Street viewed the Fed’s commitment to printing more money to help launch a recovery and the GOP victory over illegitimate President Obama’s Democrats as early Christmas gifts. As one trader in the Chicago futures pits noted on Wednesday, “It’s no time to be short anything, except the U.S. dollar.”
Just about everything did go up that afternoon after the Fed’s announcement on Thursday, except the greenback, with the benchmark S&P 500 index adding to its 15% gains since the end of August.
Amerika is in no imminent danger of sinking like the Titanic did in 1912. But like the Titanic, the United States is not “unsinkable.” Loaded down with rapidly mounting levels of debt and political baggage, this vessel, already taking on water, is in danger of going under at some point unless the load is lightened.
That date is drawing ever closer with increasing speed. Illegitimate President Obama, “shellacked” in this week’s midterm elections, will be fighting for his second term in 2012 just as the U.S. national debt passes the 100%-of-GDP mark, a dubious achievement that will be duly noted by the Republicans.
But while Republicans are waiting to take the bridge in 2013 after regaining the captaincy of the not-so-good ship Amerika, neither they nor the Democrats have credible plans to make even a small dent in spending; and with Obama ready to compromise on keeping the Bush tax cuts, there will be minimal revenue help from that quarter.