Conservative pendulum rightward swing crushes liberals in congress

By now most people watching the political action in the US mid term elections will know the carnage that was done to liberal politicians here. To say they got creamed is an understatement.  You might say that the people "red" them the riot act at the polls.  The democrats lost control of everything except the presidency and only that because there was no vote on it.  Obama's popularity is at an all time low and pretty much anyone who he endorsed in person on their campaign trail lost the election.

It's always nice when a model plays out as expected because it validates many model assumptions across the spectrum.  I am on record since late 2013 saying that peak credit was going to cause peak liberalism (or vice-versa) and in fact that the pendulum had finished swinging left and was already moving right.  That post is likely well worth your time to read (or re-read in light of the fact that a year has transpired since I wrote it). 

As is my way, I like to define trigger conditions to watch for.  I wrote, "  If A+E backs down on their support to LGBT and keeps the show going with "Gay Basher Phil" on board at the demand of 1 million people who can easily boycott the channel then  I will consider it a significant milestone in starting the pendulum swinging back the other way.


Well, A+E did back down and so my trigger was hit.  The pendulum was swinging right.  If leftist A+E could not afford to tell the Dynasty to apologize and repent or to Duck-off then it was proof that economic times were getting tough and that A+E would have to abandon its liberal nanny state ideals in order to embrace the generation of profitable revenue.  And of course, times were already getting tougher back then because the global credit was slowing as can be seen by the strengthening dollar (whose breakout I predicted in this post).

What has not happened yet is the asset market collapse that the stronger dollar and more conservative lean was supposed to bring.  This is because while my model shows that credit is peaking, the current data below shows that it has in fact not yet peaked.  Because the action has been sideways I went ahead and changed the count on red 5 has shown below.

I wonder when the new, far more conservative congress will pick up the discussion of auditing the fed.  That would not be good for debt expansion folks.

Bottom line is that this election pretty much ensures that more conservative thinking is going to be running the show for a good while and that means less debt.  What the conservatives don't probably realize is that a debt Ponzi needs ever increasing amounts of debt lest it collapse.  Once the collapse has begun it is like a war; you cannot simply claim "do over" and have another go of it.  Once the credit begins to collapse it will bring with it a viscous cycle of deflation. 

It will bring lower asset prices which will be good for honest working people but bad, very bad for banksters and liberal government programs.