Divided government doesn’t have to be divisive

Welcome to 2018 AM — after midterms.

The House of Representatives goes to Democratic control, but by a smaller majority than is usually accomplished by the party not in the White House in the midterm election.

The Republicans, however, gained further control of the Senate, which is where many of the ongoing investigations that began in the House of the intelligence agencies will move to in January.

Given that the blue wave was somewhat muted, The Dems should think about bringing in some fresh blood in its leadership roles. Moderates, who will be around in the next 10 years and ran on something more than being anti-Trump. If not, and the plan is to be obstructionist, then we could easily see a reversal in two years.

If the Dem leadership pursues impeachment hearings against President Trump and or Supreme Court Associate Justice Brett Kavanaugh, which will go nowhere since the Republicans control the Senate, then it will be a long, unfruitful two years of gridlock.

Something that the country will endure, but it will not improve the economy or anyone’s lives. The markets like divided government since very little regulation comes out of it, but people’s lives suffer, since little in the way of benefits come to light either.

So we move on and see what can be finished with this session of Congress and more importantly, what Special Counsel Robert Mueller has to say about the 2016 presidential election.

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The health of Americans is tied to the US economy

As I wrote yesterday, the Trump/Russia fiasco is sucking all the oxygen out of the room, causing a political standstill in DC, which is benefiting markets and hurting the average American.

While the markets see there is little cause for panic of having a Trump impeachment, the circus is keeping any new regulations or even filling in new Trump Administration appointments from moving forward, keeping the volatility index near single digit levels.

Unfortunately, the US economy cannot run on its own during this “do-nothing” time. Looking at projections for the Q2 GDP, you will see how growth is falling off the table.

The Atlanta Fed’s GDPNow monitor started the quarter with a 4.3% growth projection in early May. It’s current measure of GDP is down to 2.5%, which is in the center of Wall St.’s consensus. The low on the Street consensus is 2.2% and falling.

So as the straw-man focus on Russian involvement in the election continues, the economy suffers, while the investment classes pull in more profits from their scare-free capital deployments.

This environment does little for the typical Trump supporter who is suffering in perhaps two part-time jobs, with no benefits. Remember this as well, these people have been suffering for as long as a decade in this situation.

How long can the family accept this stress and suffer in near-poverty before they breakdown? The suffering can be shown with the growing number of divorces and separations, but it also shows up in illnesses as diet gets worse due to lack of cash to buy healthier food. Over the last decade you can see in studies how Americans have put on weight due to poor diet.

The left-wing media’s vendetta against losing the elections by propagating false narratives to keep the White House on the defensive is doing some real, direct harm to Americans, who can least afford stand still, because they are dying.