The breakaway gap followed by the runaway gap in the first chart of the Volatility (fear) Index implies that the 17.5 level on the second chart will be broken to the upside. If that does happen, we will very likely see fireworks. The financial markets seem to be taking the government shutdown with far too much complacency. The lines between Republicans (responsible management of government finances) and Democrats (altruistic aspirations paid for with other people’s money) have been drawn so deep in the sand that one might think of them as having been cast in concrete. Compromise seems a distant possibility.

It seems to me that Barack Obama is a loose cannon who is prepared to hock the family jewels to gain a footnote in history. What we are witnessing is not “leadership”, it is ego driven, obdurate stubbornness. The ratio of US public debt to GDP is around 100% and will climb strongly if government spending is not reined in. Obamacare is not the problem. It is merely a symptom of the much deeper problem of believing that the US is “entitled” to live beyond its means.

Brian Bloom

Author, Beyond Neanderthal and The Last Finesse

www.beyondneanderthal.com

Beyond Neanderthal and The Last Finesse are now available to purchase in e-book format, at under US$10 a copy, via almost 60 web based book retailers across the globe. In addition to Kindle, the entertaining, easy-to-read fact based adventure novels may also be downloaded on Kindle for PC, iPhone, iPod Touch, Blackberry, Nook, iPad and Adobe Digital Editions. Together, these two books offer a holistic right brain/left brain view of the current human condition, and of possibilities for a more positive future for humanity.

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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