After months of somewhat desultory media coverage, Republicans have swept to control of the U.S. Congress with record numbers in both the Senate and the House. The GOP also won multiple state governorships.
This “wave” election, a rout of the Democrats, is a classic backlash against the incumbent party, which has utterly failed to provide leadership to the nation.
Yet the sky is still above, the earth below and as far as we know, the world is still turning on its axis.
For all that partisans and Fox News have portrayed this as an earth-shattering election, most media pundits tried their best to avoid the anti-Obama groundswell. Many Americans realistically adopted a “plague on both your houses” attitude and stayed home or, in too many cases, opted for the lesser of two evils.
That’s a wise attitude, and we share it with sadness.
Short of the periodic political revolution advocated by Thomas Jefferson, no matter who’s in charge, there is just so much that should change but won’t … and therefore so much that a wise sovereign individual must continue to do to prepare for their future.
Hidden Bipartisan Consensus
Over the last 30 years or so, Republicans, Democrats, and their increasingly influential PAC supporters have perfected the art of political hype. Using emotional social “wedge” issues like gay marriage (on the right) or gender rights (on the left), sophisticated propaganda experts work tirelessly to steer voters toward one or the other party.
Many Americans realistically adopted a 'plague on both your houses' attitude and stayed home (on Election Day).Ted Baumann
For example, with the exception of a few mavericks, both parties have abandoned the Constitution and now unreservedly support the continued growth and power of the national intelligence/security state. Although they may differ on the margins, neither party considers the current precarious state of our civil liberties as something in need of substantial change. Politicos, who are usually at each other’s throats over Obamacare, are cooperative when it comes to protecting the National Security Agency, the FBI, or local police from meaningful public scrutiny and accountability.
Similarly, few in either party seem at all interested in reining in the influence of Wall Street on our political process or stanching the massive flow of subsidies to our “too big to fail” banks through the cheap money policies of the Federal Reserve. Although they differ over fiscal stimulus, most elected officials in both parties quietly support the ongoing diversion of trillions of dollars to bankers through market manipulation.
A third example, of course, is the broken U.S. tax code. The parties claim to have vastly different agendas when it comes to corporate taxation and individual tax rates, but both work tirelessly — often in cahoots — to protect the loopholes, giveaways, and unfair disparities that are the real problem with our tax system. Millions in PAC money is their reward.
And of course, aside from U.S. Senator Rand Paul, you won’t hear much talk of repealing abominations such as the Foreign Account Tax Compliance Act (FATCA) from either party. Even if repeal is buried in their platforms somewhere, don’t expect to see it put to a vote, no matter who runs the House and Senate.
The election outcome probably guarantees that the next two years in Washington will be a continuous political free-for-all aimed at electing the next president.
Keep Your Guard Up
Fewer of us are putting our faith in either political party to address the issues that really concern us — the growing threats to our wealth, privacy, and liberties originating in our own government and its powerful allies in the increasingly corrupt and uncompetitive U.S. economy.
While the Republicans have taken control of the House and Senate, Americans are no closer to achieving the type of protection for their privacy and freedom that we demand from our elected government. And, unfortunately, it doesn’t look as if the Republicans are going to bring many positive developments to the American stock market.
Jeff Opdyke, editor of Profit Seeker, explained:
I don’t think the Republican victory is anything meaningful to the stock market, aside from some narrow impacts in certain sectors, such as medical products (which will benefit if Republicans manage to roll back a medical-device tax built into Obamacare). The real impact from the Republican victory will likely be felt in the bond market. Bond yields are going to rise and that, ultimately, will have the Federal Reserve acting sooner rather than later to raise interest rates for the first time.
But don’t look at the coming Fed rate-hike cycle as an opportunity to move some cash back into CDs and savings accounts. Though rates will soon begin moving up for the first time in nearly a decade, the Fed will — and must — continue strong-arming the market to keep rates unnaturally low due to America’s heavy debt.
With America drawing closer to interest-rate hikes and a government that will continue to do nothing to protect you, it’s critical that you diversify your wealth by investing in a growing middle-class across a variety of emerging and frontier markets offshore. These groups aren’t weighed down like Americans with trillions in debt and long-term unemployment, but are enjoying more disposable income than ever before and are determined to enjoy the same Western luxuries.
Another key step to preparing for the new government is to buy gold — the ultimate protection for your wealth. Gold remains an insurance policy against the insanity on Capitol Hill. Owning it allows you to protect your family’s lifestyle.
As another midterm election comes and goes, we can’t stress enough how important it is to put your faith in your own sovereign strategies, and to avoid the temptation to seek salvation from government … or the unreliable politicians who compete to run it.
Editor’s note: This article originally published on The Sovereign Investor Daily on Wednesday, November 5, 2014, and has been edited for publication on IVN.