History is replete with epidemics and plagues often caused by man's negligence and made worse by knee-jerk reactions of men that attempt to whitewash the past while protecting a select few from hysteria of the masses. I can't help but think of these historic events as we head into next week's Sequestration, which is being sold as the worst crisis to face America since Russian ships raced toward Cuba, loaded with nuclear arms. According to the White House, a plague will be unleashed on America ... could it rival these?
I'm only being a little silly ... because the campaign to affix all blame for all things post March 1st has been the top goal of the administration and the media, and I guess it will work. Your next tooth ache, traffic jam, stomach ache, lost business account, late flight, delayed flight and broken relationships will have a universal scapegoat.Those nasty spending cuts created by President Obama as leverage over Republicans have all but backfired.
The good news about predicting the end of the world is anything less can be spun into tales of heroism and leadership. I can see the headlines now: Obama Steers Economy to 0.5% Growth Despite 2% Cut in Spending.
The real story is one of failed policies that have seen massive increases in despair, poverty, and hopelessness. Of course, the most enthusiastic are the poor expecting more goodies, like higher minimum wages that will do nothing to lift them out of poverty but will assuage their anger toward successful people and make them more comfortable. I'm not sure how many times the administration can or will play the tax card, but it is the only one they know. It will not trigger economic growth.
On the contrary, it could result in the kind of aftermath like poor judgment during plagues that made them worse. There isn't carnage in the cards–yet, and it will not come from less government spending but from attacking the engine of economic growth that made America great in the first place.
Today's Session
Equities look higher as markets around the world are higher. There is some angst over the Italian election, which becomes official later this morning. Polls suggest Berlusconi will not win, and that has the continent cheering. In the meantime, the market isn't afraid of Sequestration or of the UK losing its AAA rating.
