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2012/12/04: Cal-Perspective and US Age of Austerity finally here?

December 4, 2012 Leave a comment

© 2012 ROHR International, Inc. All International rights reserved.

The weekly Report & Event Calendar is available through the link in the right hand column. This week’s Summary Perspective is also now available. Yet there is also an interesting anomaly in the fundamental influences. And it is not just the strongish US economic data versus the trepidation over the potential plunge off the Fiscal Cliff… there is also the negative outlook into next year.

The misguided perception in some quarters that the US election would settle enough ‘uncertainty’ to encourage an economic revival on the back of clearer parameters has now been completely dispelled. As noted in our post early last week, nothing could have been further from the truth, as the public pronouncements by highly partisan US political class leave little hope that there is common ground for constructive compromise. And with Mr. Obama’s reelection, we suspect he feels within his rights to push his agenda at the same time Conservatives find it as distasteful and counterproductive as ever.

It’s good old Nanny State Taxulationism1 finally run amok, as the President and his cohorts distract the opposition with outrageous proposals to waylay them from unwinding what’s already the law of the land.

1Taxulationism © 2010 Alan Rohrbach & Jack Bouroudjian. All rights reserved unless explicitly waived

Def.: Combined impact of taxation, regulation and protectionism to an oppressive degree as official policy

And while framing this as a US Age of Austerity might seem a bit harsh, it is something we have warned of since back in 2010 (well, a ‘Frugality’ mania in the first instance.) To revisit those major themes from a previous post, regardless of whether the Fiscal Cliff is addressed, the degree to which 2013 is going to be a tough year has not escaped the watchful eye of the best of the observers…

 

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