Silly Season and Silly Fiscal Policy

Gary Christenson – The Silly Season – the Elect a President Cycle – is upon us.  We pretend the candidates matter and care about the American public and their values, we pretend the election is important, and we forget that the outcome is heavily influenced and/or controlled by Wall Street and the Military.

Hillary Clinton:  “What difference does it make?”

Or as Matt Taibbi from the Rolling Stone stated:

“Politics used to be a simple, predictable con.  Every four years, the money men in D.C. teamed up with party hacks to throw their weight behind whatever half-bright fraud of a candidate proved most adept at snowing the population into buying a warmed-over version of the same crappy policies they’ve always bought.”

What Difference Does It Make In Markets?

The Process:

  • Take daily price data and average them over four years – the four years during which a president is supposedly important. Example:  Four years of S&P 500 closes from January 1, 2001 to December 31, 2004 represents the President elected in November of 2000.
  • Plot one data point for each 4 year period and graph on a log scale.
  • Remember this is heavily smoothed data averaged over a 4 year period so we see only the long term trends.
  • Data for silver and gold comes from the COMEX so it shows prices for paper silver and paper gold, which increasingly are less real than prices for actual physical metal.

The S&P 500 Index since 1970:  Plot four year presidential points on a log scale and note the clear exponential increase roughly indicated by the green arrow.

FourGold and Silver since 1970:  Plot four year presidential points on a log scale and note the exponential increases, the green long-term trend, the “let’s party” silver and gold bubble prices in the late 1970s, and the “hangover” low prices in the late 1980s and 1990s.  Continue reading . . .

GaryChristenson2

Gary Christenson is a Contributing Writer for Shift Frequency

SF Source The Deviant Investor  Nov 2015

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