Chait is still Living in Fantasyland
Jonathan Chait is at it again.
He believes that if after the mid-terms the economy improves, The One should get all the credit, but that it will shared by the GOP because the business press will report economic progress as a result of The One moving right.
I seriously doubt that The One, with soon-to-be Minority Leader Pelosi jerking his chain and his own natural arrogance about doing what is “right,” will move to the center.
I say soon-to-be-Minority Leader Pelosi because the Democrats have been politically suicidal all Congress — and after losing 60+ seats — why stop now?
Let’s get the Jonestown Kool-Aid brigade back together again! Whadya say? Even Daily Kos is getting into the act, sending emails out for calls to go to Congress in support of Pelosi for Minority Leader.
Chait, of course, rejects the obvious — that business now feels like there is some semblence of rules America is and will be governed by, it can actually make some plans without worrying that Chait and his pals at the White House will attempt a government take-over of their industry.
(It’s already happened in banking, student loans, housing, automobiles and health care.)
This is why the stock market took off — less uncertainty that The One will decide to expand government some more at the expense of private enterprise.
But here is a horrifying thought — that the Fed’s dollar buying spree tanks the value of the dollar, spikes interest rates and the current gold and oil and stock market values headed in the same direction ends its strange togetherness and the stock market goes down and gold and oil go up.
This is a much more likely scenario.
Add in then, bailouts for cities and states.
All the debt-ridden, spend-on-everything-and-now-we-are-in-a-crushing-vice-of-debt states start to tank as gold, oil and interest rates spikes, the dollar dives the stock market crashes.
Who will get the blame then?
The One, the bailer-outer, the spender-in-chief, but only if the GOP says no to the coming cries for bailouts of bankrupt cities and states.
Putting a leash on the Fed, would also be a nice start. It would force Congress to deal with out unsustainable debt.