The current events of today regarding a government shutdown will go down in history. I’m literally typing out this email while listening to President Obama’s attack on the Republican Party who refused to compromise on the Affordable Care Act. In fact, he is calling it the “Republican Shutdown” slandering the political party that still somewhat fights for the free market. Although I don’t align myself with either political party, listening to a man advocate for socialism is extremely annoying. By getting on air and taking the moral high ground for supporting Universal Health Care is a play on American ignorance and emotionalism.
Government Shutdowns are not pleasant events for any nation to go through. It would be a much more exciting time for the majority of people if the government had their financial house in order, but unfortunately we are dealing with a situation that is a result of over-spending and out-of-control government expansion. No doubt, the people who are being sent home and without work because of the government shutdown will be directly adversely impacted by this weeks actions. The reality is, generally speaking, all essential aspects of government are still in place. The government shutdown may not actually save the taxpayers money in the long-run because of recovery costs and leadership that won’t be efficient about it, but maybe it will wake people up to the fact that there are serious issues that are looming over the American economy.
As I previously said, it is non-essential aspects of government that are being touched. To be quite honest with you they are extremely superficial and nothing that will actually cut costs enough to help fix the mess we have ourselves in. The furloughs will more than likely just piss off the average American and cause them to give in to more ill-advised government programs such as the Affordable Care Act which will ultimately cost businesses and taxpayers more money, putting a treacherous weight on the economy. People who were planning a trip to Yellowstone or Yosemite National Park this week might have their plans completely wrecked. Disruptions in the convenience of American’s is a clever ploy to get people to tap out and surrender to over-reaching policies for the sake of normalcy.
Ignorance of the people will continue to cost this country billions and billions of dollars and keep us on a path to destruction. The worse off people become, the more they will rely on the government making it a spiraling disaster polarizing this country between the producers and the takers.
Dealing With Irrational Markets
You would have thought that the markets would have opened down for the day because of the overnight news of the government shutdown. What I want to remind everyone of is that our fictitious manipulated market that we continually watch is a reactor to the Federal Reserve. We have seen a pullback in share prices with some volatility lately because of potential tapering of QE. The stock market has been thriving lately off of the artificial injections the Fed has been responsible for and will continue to depend on it for the near-term until we reach an unsustainable inflection point.
What am I trying to say?
Since we are dealing with the government shutdown, tapering of QE will likely be kicked down the road causing the market to actually go up on a day where stocks should be down. Right now stocks are up and gold is down below $1,300 an ounce. The polar opposites of both the general stock market and metals prices is a good indication that a near-term turnaround is coming due. This is especially true for gold and silver.
Do not get too frustrated trying to figure out the mechanics and the volatility of the markets tied to the politics. It will probably annoy most people as it does me in many situations.
Ultimately what I end up doing is purchasing solid investments including real estate, undervalued stocks, and private lending having the most control over my financial future detaching myself as much as possible from the actions of the U.S. Government and Federal Reserve.
Speaking of good investments, I would suggest everyone read this technical analysis on a Uranium Company that is positioned to thrive. It has enormous upside potential strategically positioned at Uranium’s bottomed out prices.
In you liberty and success,
Chief Editor at CrushTheStreet.com