by John Galt
November 1, 2018 05:45 ET
The Nancy Pelosi fantasy is not as impossible as some may think. The truth is that if the GOP base fails to show up to vote now through next Tuesday in sufficient numbers, the Democrats will seize control of the House of Representatives and blunt the surge of Republicans having a far larger majority in the U.S. Senate. The impact of Democrats having a great election would be felt all the way down to the state level, which changes the dynamics of our nation going forward.
In other words, this could end up being like the 1930 election with far worse implications than that nightmare from the past going forward.
Should the neo-Marxists win power, the main problem will be obstructionism. While on the state level they might pass a few major changes to local and state laws creating the start of an economic downward spiral in those locales, nationally, nothing will happen until 2020. IF they do win, I still look for a majority GOP Senate with maybe 53 to 54 seats, but a 10 plus seat Democrat majority in the House of Representatives. That is when the real horror show for middle America begins.
The Democrats will begin countless investigations into everyone and everything the Trump administration engages in. There will be court challenges to every action the President has or may take. Funding will be cut off to projects relating to border security, military expansion and modernization, and overseas police actions. Worse, by 2020 there will be a vote on the floor of the House for impeachment, a motion taken as revenge for the Clinton impeachment even though Bill Clinton actually did violate numerous laws and there are no indications of such (thus far) for President Trump.
The biggest event will hit in 2019 and that will mark the high watermark of U.S. domestic economic growth and the zenith of Trump’s Presidency. The budget battle will end with a government shutdown and of course the #FakeNews will blame Trump and Trump will blame the Democrats. As a result of this shut down, which I think may be prolonged and possibly last through the summer (100 days or longer), the ratings agencies in alliance with their liberal investors, might drop the U.S. credit rating another notch further rattling fragile equity and credit markets causing a plunge in American’s retirement account valuations.
All of the promises Democrat politicians are making are false. With only one house of Congress, they can not pass anything that the President would sign into law nor stop any appointments to the Judiciary Branch or Cabinet positions.
So look for a nightmare should the Democrats succeed next Tuesday. The media might talk a good game, the Democrat leadership lie about what they will do, but in the end it will be the high watermark of United States leadership in the world economically and politically. By 2020, our nation will begin to split apart at the seams with violence against average Americans engaged in normal political activities increasing, and worse, the greatest economic decline will accelerate as the failures of the uniparty system and crony capitalism are exposed by the patchwork political actions of the past sixty years.
If anyone thinks 1932 was bad, you ain’t seen nothing yet.
Tomorrow, I shall address the market impacts and what I think will happen in either scenario.