Bob's address to the May 2013 Spring Meeting of the CMRE was titled:

The General Theory of Authoritarianism

There are any number of names that can be used to describe the Administration's policies. However, in this polite assembly it is best to stay with what is printable and ask the question about which description fits best?

It is hard to avoid terms that have become derogatory epithets. Liberal is one, progressive-Democrat is another. And then there is communist, socialist, fascist and corporatist to list only a few. But all describe current U.S. policy.

The first two paragraphs describe the theme of the paper which included a call on a pending change in the dominant political trend of intrusion at any cost:

"Will [authoritarians] continue to dominate?"

"Not likely, as today's frenetic policymaking is another example of ending action. The establishment claims the Republicans are finished, but a veteran trader would say that they have become very oversold as the Democrats have been the focus of a buying mania."

In May 2013, Obama's numbers were 51 percent Approve and 43 percent Disapprove.

Now they have reversed to 53 percent Disapprove and 42 percent Approve.

Moreover, Democrats are not "oversold".

Wrap:

What do you call a Republican majority in both houses?

"A start!"

This seems likely.

Larger Image

• The recent low in the Approve chart was 38% at the end of August.
• The recent high was 45% set in the week of September 19, which was the high for the stock market.
• At 42% now, taking out 38% would set the downtrend.
• The importance of Obama's generally weak polling is that it is signaling a changing prospect for the long bull market for Democrats.
• Republicans could pick up enough support to offset the startling numbers of dead voters and zombies that somehow turn out for Democrats.
• A Republican majority in both houses seems likely.

The full address can be read at

http://www.institutionaladvisors.com/uploads/9/7/9/5/9795010/130523-authoritarianism-cmre-may-2013.pdf

The concluding sentence is:

"[T]he veteran trader is calling for a lengthy bear market in authoritarian ritual and a new bull market in commonsense."

Appalling Turns In History

"The editors at Institutional Advisors regret to announce that they have lost all patience with the Obama Administration."

- Pivotal Events, January 29, 2009.

Obama's inauguration was on January 20, 2009.

The cartoon was done in December 2008.