Home > Uncategorized > 2013/10/04: Commentary: Your Government at Work… or NOT!!

2013/10/04: Commentary: Your Government at Work… or NOT!!

© 2013 ROHR International, Inc. All International rights reserved.

COMMENTARY: Friday, October 4, 2013.

CNBCemplRPTnotPEARSON-131004CNBC – Hampton Pearson with the September US Employment Report (which everyone knew was not going to be released due to the government shutdown) from the US Labor Department

And the number is… ??????? 

Can’t tell ya. Don’t know.

What a way to run a railroad. And here are the wizards in Congress at the switches again, hoping they can time the shift into continuing operations timely… as in before the US government train heads off the cliff again.

And as we noted yesterday, while we hope and expect Congress will find a way to pass not just a Continuing Resolution on spending but also the far more critical Debt Ceiling increase timely to avoid an October 17th US government default, with these folks you never know. And the ‘failure is not an option’ crowd is back out in full flower. But as we noted on Tuesday, they also held that view right up to the actual failure back in August 2011. So no real cause for comfort there.

The Current Rohr Technical ProjectionsKey Levels & Select Comments are also already available via the link in the right-hand column. [Please note we did not post a TrendView Video analysis from yesterday afternoon because it was obvious the S&P 500 and other markets were slipping into a quiet finish for the week. That is consistent with our Global analysis from yesterday morning. Our full Global analysis based on today’s Close will be available over the weekend.]

As a bonus today, there is more Commentary video on the degree to which the US budget gridlock can be readily solved if…

 

 

CNBCdebateREPbradSHERMAN-131004

 …John Boehner would allow a vote that empowered the moderate Republicans to vote through the ‘clean’ (i.e. without major budgetary or healthcare changes) Continuing Resolution on US government spending. While he is a Democrat, Representative Sherman (right side of the screen) shared his assessment that enough Republicans would defect to allow for that ‘clean’ spending bill passage if only House Speaker Boehner would allow an open vote.

He is likely very correct in that, as the moderate Republicans had warned their right wing about employing over-aggressive tactics. But even beyond that, this video clip cuts short the further statement he made that reinforces the very clever Democratic Party position that Senator Reid (D-NV) instituted in the last ditch phase of the pre-shutdown negotiations on Monday.

As we noted in Tuesday’s GOP paints itself into a corner… and worse post, Reid and the Senate Democrats agreed to accede to the Republican Party demand, and “…keep this year’s spending constant at $988 billion.” They basically waived their previous, and indeed quite normal, request for a ‘baseline’ (i.e. inflation adjusted) spending increase. And as we also noted, “So we can all hear how they agreed to ‘spending cuts’ as a way to keep the government funded…”

Sneaky? Sure. Effective? VERY!!! And in today’s CNBC segment Representative Sherman didn’t actually go beyond that, but he surely ratcheted up the rhetorical edge for the Democrats. How so? Well, he went on to say (paraphrased), “By holding the line on spending we have basically passed the Paul Ryan budget (at least in terms of spending levels).”

Breathtaking assertion in light of how the Democrats had politicked against those cuts in the last election For those who don’t recall, they actually ran a television advert that showed a shadowy figure pushing Granny up to the top of a hill in a wheelchair, and then…

Tossing her off the cliff!! Of course the assumption is that the Dems would have found ways to make other cuts that wouldn’t have killed Granny. But the incredibly uninformed and significantly disaffected American electorate isn’t going to remember how either party characterized things back then. Heck that was a year ago, and they need to store a lot more important information in their memory…

…like who won American Idol and who’s most likely to get voted off the island on Survivor. Can’t be bothered with the inconsistencies of what the pols are saying now versus a 12 months ago. And the rest of the world wonders why this place runs like crap.

Conclusion

Conservative doctor and critic of liberal policies Ben Carson (you recall, the one who criticized the President’s policies with him sitting there at a prayer breakfast) laid it out very nicely. Some time ago he noted (paraphrased once again), Until US voters stop providing Congress a 90% retention (i.e. re-election) rate when its approval rating is 14%, they are going to be stuck putting up with the same old ineffective government.”

And that pretty much sums it up. And that was the same into the last election as it is now, assuming anyone is actually paying attention to who has benefitted and who has suffered under the Obama regime. See my An uninformed electorate blights American politics Letter-to-the-Editor at the Financial Times from almost exactly one year ago (and shortly before the US general election) for more on that.     

 Thanks for your interest.

p.s. As we are just back to blogging after a lengthy hiatus, some of the information on the blog is a bit dated. We will be clearing that up soon, and all of the current critical information (Calendar, Perspective, Technical Projections) is up to date.

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