Today is Tuesday, Nov. 6, 2018, and the midterm elections are finally here. While the vast majority of Americans are more than excited about the prospect of not seeing anymore political ads until the ramp-up for the 2020 election begins, what lies on the ballot for the midterm elections?
As things stand, the Tea Party movement to restrain spending is all but dead.
Sadly, there isn’t much in the way of sound money, according to Clint Siegner, the Director of Money Metals Exchange, a national precious metals company named 2015 “Dealer of the Year.”
As Siegner notes, polling suggests Democrats will wrest control of the House of Representatives while Republicans have a great chance to hold onto the Senate, likely leading to a split congress.
Many policies won’t change regardless of who holds power come Wednesday, and the most likely thing we can count on continuing is the ballooning of the federal deficit — even during a period of boom for the economy.
Per Goldseek.com:
The Treasury Department’s most recent estimate is that government borrowing will double in 2018 versus last year. The bureaucracy is going to blow through $1.34 trillion more than this year’s record tax revenue.
The deficit will likely grow to its highest levels since 2010 when the U.S. was mired in the Great Recession. So much for borrowing in bad times and paying off the deficit in good times.
The best-case scenario for deficit hawks would be a Republican victory in [the midterm elections] (although an argument could be made that a splitting of power between the two chambers would result in somewhat of a stalemate in Washington, possibly meaning less expansion of governmental programs).
Unfortunately, the “best case” is not all that good. Big government Republicans are already in control of Congress, and even the President’s supporters admit Donald Trump is not conservative when it comes to borrowing and spending.
As it seems, few if anyone in Washington cares about sound money and the deficit these days, and today’s election outcomes won’t change that.
Democrat and Republican leadership both adore the Fed for enabling them to perpetually spend way beyond their means. Candidates instinctively know better than to seriously rock the boat. That includes Republicans who are more concerned with reassuring voters they will protect entitlements and key programs like military spending.
As things stand, the Tea Party movement to restrain spending is all but dead.
Pressure is already mounting on the Fed to be accommodative again with rising rates pushing the dollar high, weakening our buying power in foreign markets. President Donald Trump wants interest rates low and if the Fed won’t play ball, Jim Rickards notes Treasury Secretary Steve Mnuchin will.
The return to sound money and limited government requires a 180-degree shift in ideology in Washington and an informed electorate. Sorry to say, that isn’t going to happen no matter how this election turns out.