Jeff  Carter

Big election in Wisconsin tomorrow. Big. There is a lot on the line for people that consider themselves fiscal conservatives.

Many of my Democratic/Independent friends will tell me, “I am fiscally conservative and socially liberal.” Fine, I am cool with that. People on the social divide of issues like abortion will never agree. But they should be cool with supporting Walker since this election has nothing to do with social issues.

Warren Buffett likes to say that everything is great when the tide is in, but when it goes out, you see who has swimsuits on and who doesn’t. That’s what happened when the stock market crashed in 2008. The tide went out. It hasn’t come back.

One entity that didn’t have a swimsuit on was government. Government at all levels. Federal, state, local, muni, county, township. You name it, there was excessive spending in government. When taxpayers are plodding along with their lives and the economy is growing, they don’t notice all the spending. But now they do. It’s naked and online for all to see.

Pension liabilities are a huge part of the cost of government. Entitlements at every level of government make up the primary spend. In our national budget, entitlements are larger than military spending. Both can be cut, but until we do something drastic about entitlement spending we aren’t being serious about cutting the budget-or the size and scope of government.

Jeff Carter

Jeffrey Carter is an independent speculator. He has been trading since 1988. His blog site, Points and Figures was named by Minyanville as one of The 20 Most Influential Blogs in Financial Media.