2011 sees some political changes with Republicans taking over the House. While the Republicans ran on a platform of fiscal improvement and repealing ObamaCare, a smart observer who doesn’t get caught up in the left vs right debate knows that nothing will change. In fact, the Republicans have already pulled back from their deficit hawk rhetoric.
In America, we all want fiscal responsibility and cuts, as long as those cuts don’t affect us. Of course this will never work.
The path is clearly set. The Fed will continue to try and print our way to prosperity. The structural economic issues continue to haunt us and erode the economy.
Meanwhile gold is above $1350 and oil is approaching $100 / barrel. Should gas prices spike (already starting to rise), it will further destroy the middle class that will increasingly find it difficult to take care of the basic necessities.
We’ll continue to update this throughout 2011…