- Created on Thursday, 08 November 2012 15:35
- Published on Thursday, 08 November 2012 15:35
- Written by Bill Bonner, Chairman, Bonner and Partners
- Hits: 1075
The zombies win. Dow down more than 300 points.
Apparently, the anticipation of an Obama victory was better than the actual thing. Or to put it another way: Investors bet that Mr. O would win. But when he did win, they cashed in their positions.
Yes, dear reader, what this tells us is that investors aren't as dumb as they seem. They thought an Obama victory would be good for stocks initially (with his backing for Ben Bernanke and more federal spending) but not for the long run.
And they're probably right.
As you know, what this country needs is real stimulus, not phony stimulus. It needs to put more resources in the hands of the productive sector of the economy, not more money in the hands of the zombies.
But Obama was the zombie candidate. So was Mitt Romney, for that matter. Obama favored the zombies who work for the federal government or get money directly from it -- such as food stamp recipients, the disabled and government health care dependents.
Mr. Romney favored the retirees too. But he also had a soft spot for the bigger zombies -- those who got their money indirectly from contracts from the Pentagon or those who work on Wall Street.
We threw our hat in the ring because we hoped to provide voters with a real choice. They could write in Bill Bonner. Our platform was simple: Zombies Out!
But you're probably thinking that our campaign of "Zombies Out" was unrealistic or unworkable. Not at all. It was extremely simple and easy to apply.
First, we cut taxes in half. Immediately, people have a lot more money to spend; the economy would perk up right away.
Second, we cut government spending in half. The old meat-ax approach. Just whack every budget item in half. If the zombies howl, whack out the other half too!
Third, repeal the 10 biggest small-business paperwork nightmares: energy conservation standards, Affordable Care Act menu labels, the Department of Transportation's hours-of-service rule, Affordable Care Act vending machine labels, NLRB union notification standards, the Education Department's "gainful employment" rule, the EPA's fracking regulations, Dodd-Frank Regulation Z, Affordable Care Act physician fee Schedules, Dodd-Frank Regulation E. Together, these cost small businesses $3.5 billion annually. And they add 28.7 million hours of paperwork.
Of course, we never had a chance. As far as we know, not a single person voted for us. Not even the candidate himself. Why waste time voting for someone who couldn't win?
An Entitlement Society
But that's the point. No one can win high public office today without zombie support. There are too many of them. They're hanging out on every street corner and hiding in every congressional bill.
Half of the households in America get money from the government... which is more than you need to elect a president.
The system is fundamentally corrupt. People vote even when they have an obvious conflict of interest.
It was as though a corporate CEO were allowed to vote on his own pay package. It's not supposed to happen. When you have a conflict of interest -- in civilized democratic institutions -- you are supposed to declare an interest and abstain from voting.
Instead, in this latest election, the Obama team sent groups of volunteers into poor neighborhoods with the express purpose of rousting out the zombies and getting them to the polling stations.
Now it's no longer possible to win a major election by appealing to voters' higher instincts or their independent judgments as to what is best for the nation.
They depend on the feds. Their judgment has been compromised... bought... and suborned. Now you have to appeal directly to their sense of greed and entitlement. It's now an "entitlement society," says our old friend, Marc Faber.
"I'll give you more. He'll give you less," says one candidate.
"No. With me, you'll get more. He doesn't know how to give you more," counters the other candidate.
So whoever wins, MORE is what you get.
As it stands, the U.S. federal government is on target to add $10 trillion to its debt over the next 10 years. The congressional response to this emergency is to propose to cut $1.3 trillion from deficits during that period. So, even if the proposal is fully implemented, the debt will still rise by $8.7 trillion.
Whoopee! We're all going broke. And no point in appealing to the zombies' sense of civic duty to try to stop it.
It's too late. The election is over. The zombies won! And now they're going to continue sucking the blood out of the productive economy... until it finally collapses.
Editor's Note: A coordinated "economic suicide bomb" attack on the stock market could begin on Dec. 31, 2012, according to findings by the economic research team at the Insiders Strategy Group.
If you have money in the stock market, you must remove a large chunk -- if not all -- of it as soon as possible.In this letter, I'll show you 27 alternative investments that are poised to profit -- even as the stock market collapses.
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