BALTIMORE – It’s another slow news day for the stock market… At least at 7 a.m. here on the East Coast it is.
But bonds are starting to show signs of topping out.
Calm Before the Storm
Meanwhile, we’re days from the elections… with two of the least-loved candidates anyone can recall.
One promises to shake things up – but in ways that are largely unpredictable. The other says she’ll risk war with Russia (a nuclear power) over some unclarified grievances in the Mideast.
The world carries about $300 trillion in debt while the yellow machines go silent and GDP growth sinks.
Central banks have used up all their monetary ammunition. (In a recent article in The Economist, the current occupant of the White House says we will need to use fiscal stimulus – read: bigger deficits – in the next crisis.) And U.S. stocks are near all-time highs.
What could go wrong?
Anything. And everything.
But so far, little from investors.
What’s going on? Why so little action?
We don’t know. Maybe it’s the calm before the storm. Or maybe it’s the calm before more calm. Or maybe the financial world is simply dying with a whimper rather than a bang.
Last Rampart?
Meantime… many readers have written to explain why we must vote.
Some are sure that Ms. Clinton is the less awful candidate.
Others are at least as convinced that Mr. Trump, for all his faults, is still less bad than “Big Nurse” Clinton.
But unless our hair catches on fire… or we see a burning bush between here and Election Day… we’ll remain neutral, thus annoying both sides.
The main reason we are urged to vote – even by those who, like us, feel that neither candidate is acceptable – is that the Supreme Court is at risk.
Reader H. Smith writes:
Those who plan not to vote are the voters who really need to take a second look. Why? Simple. Because there will be a number of Supreme Court justices appointed by the next president.
The Constitution gives the Supreme Court the power to overrule, if necessary, the actions of the president and Congress. In that context, the court has ruled in Citizens United that corporations and wealthy individuals may contribute, virtually without limit and at will, to political parties and candidates, in effect diluting the strength of the individual American’s vote.
Additional Roberts court rulings materially affect our lives in the areas of securities fraud, affirmative action, banking, campaign finance, wiretapping, the loss of personal freedoms, picture IDs for voters, and voting rights.
The nine justices are thought to be the last rampart protecting us from pandemonium.
Were it not for the Supremes, the gates of Hell would have already opened up. And if the “wrong” president appoints the “wrong” justices, it is just a matter of time before the demons are upon us.
Congress may have the power to make laws. The White House may have the power [to] enforce the laws and be commander-in-chief of the armed forces. But only the Supreme Court has the power and wisdom to interpret them, and strike down laws that do not fit with the fundamental law of the land, the U.S. Constitution.
So, if you care about the future of the country, you must vote. Mr. Smith elaborates:
Why? Because the president elected in 2016 will appoint up to five new justices. Four of the current members of the court are now over the age of 70. The [recently deceased justice Antonin] Scalia seat is already open.
The Deep State Decides
It seems so simple. So obvious.
It’s such a comfort to know that the nine old men and women have our backs… and that all we have to do is vote to make sure we have the court we want.
But wait…
If our vote, statistically, will not affect the outcome of the election, how could it affect the choice of Supreme Court justices?
And how do we know “our” candidate will select the “right” justices. (He or she will be advised by “experts”; who knows what they think?)
Even if the right president chooses the right justices, how do we know they’ll render the judgements we want?
Do we know what verdicts should be handed down… or what would happen if they were?
And what does it matter?
The Deep State decides the things that really matter, doesn’t it?
More tomorrow…
Regards,
Bill
Category: Economics