Wednesday, March 13, 2013

Staring at the Obama Apocalypse

What comes next?  That is the question at the back of every conservative mind.

I was triggered to think about this when reading Jennifer Rubin's Right Turn blog at the Washington Post.  That's because of the comments.  They are horribly abusive.

It got me to thinking.  All those liberal trolls: they have absolutely no idea what is coming.  All they hear is that the Republicans are obstructing everything that the president wants to do.  They are not thinking about unsustainable entitlements.  They are not thinking about what happens after the Fed stops its QE.  They are not thinking about what happens to the credit system after it is regulated into the Consumer Financial Protection Bureau.  They just know that the Republicans are scum.

And they think that the way to tame the economy is to subject it to proper regulation by disinterested experts.

But the conservative blogosphere is trying to think about what comes next.  Here is Kathy Shaidle musing about ways to step aside when the day of financial judgment arrives.

Don't save for retirement: the government will probably take your retirement savings like they already did in Argentina.  Don't go to college: start a business.  Don't earn a lot of money: they government will just take it.  Don't have kids, and don't be embarrassed about joining the freeloaders.

Then there is John Ransom musing on the VIX, the fear index.  The fear level is low right now, with the market up.  Which means that fear is low right now because the market it up.  Until it isn't.

Which is why I'm invested mostly in broad-gauge and consumer stocks.  When the crash comes, there will be no place to hide in the short term, and I am pretty sure that dollar assets like savings accounts and bonds will get demolished.  That is not a good place to be because whatever you lose in bonds will be gone forever.  The value of the dollar will not come back.

But if you have stocks then you have a share in the wealth creation of the post-crash America.  At least, that's my fondest hope.  If there is an America.  If there is any wealth.

What is certain is that in a few years the federal government will be desperately trying to get out of a jam.  It will be desperately trying to cut where it can without bringing people out into the streets, and it will be beating the bushes for revenue, starting with the low overhanging fruit.

The only question is: who will be left holding the short straw?

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