Hey Guys – give us a break! (talking about Politicians here)

Isn’t democracy a wonderful thing? We get government of the people, by the people, for the people!? Trouble is, it isn’t always the majority view that wins! Whilst we don’t comment on a political front as a general policy, it is a fair observation I believe to ponder the effects of politicians forming alliances with marginal elements in society, just to hold on to power. It is also probably fair comment that this has emerged as common practice throughout the democratic world: in Europe, here in Aus; and now we are seeing it in the USofA.

Craving power is also not a new aspect of political life, but the consequences of these ‘square-peg, round-hole’ alliances are becoming more challenging to accept as a society when we see the legislation that is offered – or frustrated in reaching implementation. The unfortunate outcome of this is that society is left in a state of uncertainty: and with uncertainty comes anxiety; with anxiety (often times), unrest.

World markets are currently struggling with the threat of a default by the US government; and have already priced in the likely downgrade of that economies credit rating – all because the politicians can’t agree to do what every one of their home partners would have to do in a similar scenario: cut expenditure and raise additional revenue, to pay down debt!

No doubt readers might have a couple of other examples of how these alliances can bring pain and strain to economies and societies!

Investors can take heart that the global economy over the long-term will demonstrate strength; traders will in the meantime, win some and (for each one that does, others will) lose some. We have written about this on a number of occasions, but a little while back we published Who Cares about Bulls and Bears?…and that leads to other expressions on the topic.