Dear World -
In case you didn't notice, Americans have had it. I doubt you folks in Ibiza who were partying until the sun came up today noticed what happened over the past couple days in these United States of America. The 'mainstream media' in our country didn't notice either. We have a state called Wisconsin (they like 2 of my favorite food groups - beer and cheese) where powerful unions tried to unseat the current governor because he did exactly what he said he'd do if he were elected a couple years ago - get the state's fiscal house in order by tackling bloated government union pensions and spending like there's no tomorrow. Kind of like how you saw the sunrise when you left the club and began feeling your hangover, there is a tomorrow. And someone has to pay for it.
Americans have had it with the constant partying like there's no tomorrow and the Obama Happy Meal - order whatever you want…the person behind you will pay for it.
We understand that we have children who need a better future, and the harder we party, the more it negatively impacts them.
In the People's Socialist Republic of California, voters in 2 major cities - San Diego and San Jose - dealt a devastating blow to Komrade Governor Brown. Not only did they vote to cut bloated union benefits, they applied these cuts to current workers, and didn't 'grandfather in' current employees. Voters in this western Cuba are finally waking up and getting actively engaged to prevent their cities from going bankrupt.
However Komrade Brown, who is beholden to the unions and special interest groups, yawned and the once Great State of California is heading off its own fiscal cliff. And guess what? The other 49 states will NOT bail them out… As Americans, we believe in personal responsibility. Or at least we used to. We've lost our way…but we're awake now. We're about to put some adults back in charge of this once Great Nation.
If someone in our federal bureaucracy thinks that one penny of my tax money will go to bailout this train wreck of a state they better think again… In a letter to James Madison, one of our nation's founding fathers named Thomas Jefferson said, "I hold it that a little rebellion now and then is a good thing, and as necessary in the political world as storms in the physical."
The media in our country, being a mouth piece for the current administration, yawned over these dramatic political events.
The Washington Post called Governor Walker's victory in Wisconsin (again) 'a close vote'. It may be my failing memory, but I don't recall them calling Obama's election in 2008 'a close vote'…which it was. Governor Walker, who was initially elected by a 5% margin, won his recall election by 7%. No matter how hard they try, the media in our country continue to make themselves look stupid and irrelevant.
Because they are.
That brings us to you, The World, especially our European brothers and sisters. On June 17th voters in Greece will decide between a communist who says 'We can default on our debt, continue partying like it's 2006 and end this austerity BS, and continue to borrow money from our buddies!'. Seriously?
In America we learned this the hard way…let me help you translate the above. That mindset equals 2008 and 'Hope and Change" BS that we were feed. And you can see where that has gotten the United States. President Obama wanted to end 'American Exceptionalism'…and he did.
Not to worry, we learn from our mistakes.
You voters in France booted Sarkozy, under fake promises by a socialist to once again lower the retirement age and return spending to pre-adult levels. You want to establish Euro bonds to play a shell game with your unsustainable debt.
The only adults in Europe are Germany, Austria, and Norway - which kind of creeps me out as a student of history but I digress.
World - please forget about what our Honorable Fed Chairman said today in front of our clown car Congress. U.S. markets are perverse right now. The markets are rallying on bad news in the hopes that our bartender Bernanke will be forced to enter another round of 'quantitative easing', or 'operation twist part deux', or as I like to call it, 'a snake eating its own tail'.
Our markets have rallied over the past 2 years because we're buying our own debt…not as much as our real banker, China, but enough to look like absolute idiots. If/when bartender Ben calls last call, this market will implode. Which is why the party in our markets is continuing…for now. I'm selling the hell out of these bad news rallies.
As I said, Americans are now awake. We know that we are mortgaging our children's future and it's not right. Your European styled socialism and idea that the state can take care of and provide for all has proven to be a failure. Unfortunately, we have learned the same thing.
But on this side of the pond, we're going to do something about it.
We're going to be the grownups once again…shortly. We seriously helped you out last century with our most precious capital - young men, mainly boys, from the beaches at Normandy to the island of Guadalcanal. And please don't point out that instead of commemorating D Day yesterday our 'leader' was in Hollywood cracking dirty jokes about his wife at a fund raiser with some evil 1%ers.
If we're not going to bailout our own Greece and France (CA and IL), we're certainly not going to bailout countries who couldn't care less about personal responsibility or placing an enormous amount of debt on their lineage. I know that I'm currently calling the kettle black, but give us a couple months…
We'll be all grown up. Again.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.