Come Hillary or High Water, It's Just About Hell Week for the Economy

By: David Haggith | Sun, Oct 30, 2016
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Crooked Hillary

Election week is only about a week away. No matter who wins, rage will break out across the US landscape because, for the time being, the flames are kept minimally under a lid by hope on each side that their candidate will win. If Hellary Clinton loses, the establishment will come unhinged. If Trump loses, the Tumpettes are already sounding their charge against the election results. Nothing is going to settle down no matter who wins; but to give Trump's supporters some encouragement, should the worst befall them, I offer the following silver lining:

As unendurable as I believe a Hillary presidency would be -- with its suffocating smog of endless scandals and swirl of smoke clouds from all the wars she would continue to instigate -- as she so clearly did while senator and then secretary of state -- a Hillary presidency would have one great benefit: it would in fairly short order bring clarity for the entire nation to the fact that the nation's economic ruin is the fault of the establishment that they've been electing for years (something about which many are obviously in great denial or they wouldn't vote for Hillary in the first place).

Hillary is as establishment as you get; so is Obama; so was George Bush (both of them); so are most of the Republicans and Democrats in congress. While that is stating the obvious, the point I am working up to is that a Hillary victory is a chance for a total flush in all parts of government four years from now.

The US economy is beyond saving at this point, anyway, regardless of who wins, and it will take a crash to push the reset button and wake America up. Having that crash hit while the establishment fully holds the reins should leave 100% of the blame at their feet, and it's not that much longer to wait.

I was thinking of writing about this hope when I read the following from David Stockman about what Hillary will face as president if she wins, with which I entirely agree, though I'd give a much shorter timeframe for the inevitable chain of events to come:

...because things are going to blow up in the next four years, there will be a stock market crash, there will be a recession, the annual deficit will be back in the plus trillion dollar category very soon and it will all come down on her head and on the watch of the establishment....

And maybe that will wake up the public, because it's going to be bad. And what Trump proved in this campaign is that the establishment, you know, will do anything politically to stop a challenge. But if we have the crisis that I know is coming, then maybe this thing can be busted wide open and we have a chance to clear the decks and start again. ~ Newsmax

That, I think, would be the best outcome from this election -- national clarity when it all comes down as the US economy is most certainly beyond saving at this point. I am not sure such clarity is worth the other non-financial costs we'd pay), but the crash of the entire economy around Hillary's feet would galvanize American resistance to the establishment and all but assure an anti-establishment victory across the entire political landscape in the next election.


Signs of indifference that needs to break

The flatlining stock market, which I wrote about in my last article, barely gathered enough energy to raise an eyebrow Friday at the ostensibly good news that GDP growth doubled since last quarter to almost 3% -- a number associated with fairly normal US economic growth.

It didn't go up because "Yay, the economy is finally running at normal speed" or down because "Yikes, that means the Fed will be more likely to raise interest rates." Instead, like a dying person, the market couldn't have cared less what was happening economically in the world today. That says to me the crash is imminent.

This same day, it registered the kind of upheaval that will come from the establishment if Trump wins. The market immediately plunged a hundred points when news broke of another FBI investigation that could cause trouble for Hillary. Not to worry, though, the Fed or government fix kicked in shortly thereafter and brought the market back up to its flatline status quo.

My biggest concern, if Hillary wins, is that Trump (and with him all anti-establishment voters) will be made into the establishment's scapegoat. They have already been preparing for this in consort with their media supporters, through whom they plan to say to American voters, "We told you the stock market would crash and take the economy down with it you elected Trump. See what happens when you don't listen to us and don't support the superior establishment."

Of course, a world raging with wars, as I've shown Hellary has planned, is a steep price to pay for the opportunity to lay all blame for our economic doom at the establishment's feet. That's why it's hard to say a Hillary victory -- besides meaning I have to endure four years of nausea -- is worth the cost. I have no idea how bad the cost in wars might actually become if she wins. So, I couldn't vote for her, even for the sake of laying everything squarely at the establishment's feet; just pointing out that there could be a big but unintended upside.


The US economy is sinking fast, regardless of today's GDP number

Consider the following recent headlines as a sign of the way the national and global economy continue to slide into the abyss of the Epocalypse -- regardless of what the GDP data indicated today: (The headlines help explain the gradual overall decent that is seen in the flatlining graph of the Dow I presented earlier this week even during a time when the government appears to have pulled out all stops to keep the economy afloat through the election year.)

That is far from a list of all that is currently going wrong with the US economy. It's simply the headlines that caught my eye in the last week or two. The economy is dying to where the establishment can barely even keep the stock market alive at a time when it would be politically devastating for them to have it crash. Nothing has the power to save us from this fate, not even the braggadocios Trump.

If Hillary wins, all hell will break loose. It's a rage that needs to happen, and it will be next to impossible to deny where the blame lies (I think, although the grip of economic denial has been indefatigable so far). Not saying I wish a Hillary victory on the nation or the world; just trying to be an optimist by pointing out the silver lining on the clouds.

Clarity and breaking out of economic denial so that we get a real grasp of what we need to do are more important for the nation than anyone's poorly conceived economic recovery plan at this point. Until the nation gets real about what its problems are, its not going to find any real answers to them. We are far, far, far from a point where more trickle-down economics is going to save anything. So, real recovery has to start with the majority of people coming to grips with the fact that the establishment doesn't have any answers at all. It's not even looking for an answer.

 


 

David Haggith

Author: David Haggith

David Haggith
The Great Recession Blog

David Haggith

My path to writing this blog began as a personal journey. Prior to the start of this so-called "Great Recession," my ex-wife had a family home that was an inheritance from her mother. I worked as a property manger at the time, and near the end of 2007, I could tell from rumblings in the industry that the U.S. housing market was on the verge of catastrophic collapse. I urged her to press her brothers to sell the family home before prices dropped. The house went on the market and sold right away -- and just three months before Bear-Stearns and others crashed, taking the U.S. housing market down for the tumble. Her family sold at the peak of the market.

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