Obama will continue the accent of the gov deficit with large stimulus programs, akin to what Hoover did. Taxing rich and protectionism will make the situation worse. Disastrous policies such as these will appeal to the luddites, in an equally frantic attempt to win a second term. If President Carter were not alive, I think we would be baring witness to his second coming, reincarnated as a Black, Yankie Senator from the north destined for one term. Shame, I like him, just wish he had a clue about economics.
All of this will lead to one perfect and inevitable outcome, War. I have no doubt that the US is running the biggest Ponzi scheme ever known. The gig will soon be up. Noone will buy US gov bonds and the outcome will be us gov defaults will taxation revenue and capital formation are outstripped by debt ,interest and inflation. They are currently adding 1 Trillion in gov debt every 15 months in interest only. They already owe excess 14-15 Trillion and GDP is 13, so do the maths…
This aside we should be in for a nice rally into early 2009 IMO. Down the line, Us will declare war on hostile nations whom dare demand their money back. Now listen to Dick Cheney talking about how the President can just Nuke anyone he likes.
