Posted Jan 26, 2013 by Martin Armstrong
A reader commented:
“Since the debt melt down will happen after Obama leaves office in 2016. He will get off scott free of any blame.”
That is NOT necessarily the case. Generally, people are getting fed-up with politicians. There are still the sublimely ignorant who will vote for their party regardless of the facts. But our computer has been forecasting politics for the last 30 years and it has never been wrong yet in any country. I stood up in Tokyo and delivered the computer forecast that the LDP would lose. They did. That was more shocking to the Japanese than anything because the LDP NEVER lost since World War II.
Our model shows we will get a spike rise in third party activity for 2016. Interest rates should start to rise here in 2013. The overall economy will simply be STAGFLATION in the USA and in Europe, it will be a good day if they can break-even rather than come in with a NEGATIVE growth rate in GDP. France is out to destroy the Euro even if they do not realize what the hell they are doing. They were the 2nd most important economy behind the Euro and their irresponsible Marxist style fiscal irresponsibility is highly dangerous. If Merkel loses the German election in September, hold on to your seat. The rise in the dollar will be devastating to commodities, good for stocks, and send interest rates higher so that not even the Fed will be able to resist. These are the extremes that we live in today.
The rise in third party activity suggests that by the time we get to 2016, people will start to look for an alternative to Democrats and Republicans. They are economically the same. They distinguish themselves only with social issues primarily turning on religion. But there are the old Reagan Fiscal Conservatives where economics and survival come first. This will most likely be the third party movement – one that is tired of the same shit. The nasty Republican retaliation of (1) refusing to allow Ron Paul’s name to be nominated at the conventtion was a disgrace, and (2) kicking off committees any Republican who supported Ron Paul shows the Republicans are NO FISCAL CONSERVATIVES. They have disgraced the party of Jefferson.
So do not worry that Obama will escape responsibility. I seriously doubt that ANYONE in Washington will escape. You cannot hunt down the rich, tax your way to recovery, and expect job growth to be there. Obama is clearly following the French down the rabbit hole.