(OILPRICE) — Now that the presidential election is over we can hopefully look forward to some respite from the perpetual bombardment dished out by both the Republican and the Democratic Party machines.
President Obama has been re-elected so we can expect four more years of a Washington centric controlled economy with a rolling program of borrow, print, spend and pretend, similar to the last four years. The so called fiscal cliff will not be met head on, the approach will be one of extending some of the tax cuts now in place and a watered down strategy of fiscal prudence.
Budget ceilings will come and go and the deficit will grow ever larger as the economic recovery will be considered far too fragile for any serious attempts at financial reform. All in all nothing has really changed, the slow motion train crash will continue and the fallout will affect everyone.
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One of the casualties will be the dollar as quantitative easing will be applied in ever increasing doses, devaluing the dollars’ worth and its buying power. However the race to the bottom is alive and well as other nations will adopt similar strategies in an attempt to remain competitive and so Act Two reads like Act One.