USA: They came and went, then came the calebrations in one side and bitterness on the other. Now, Americans must prepare themselves for the trenches of economics.

Red, Blue or Grey?

Before the Mid-Term Elections, more than once, even with majority in both houses, President Trump did not find getting budgets threw was an easy task. More than once, and for several months, the Federal Budget could not be passed and paying salaries of Federal employees and spending in other areas of the Federal Budget was not a very straightforward thing to do.

As results of these Mide-Term Elections were being published, President Trump or those representing President Trump published a red image with one word on it: Veto.

So now there is another war. Not in Ukraine, not in the Gulf, but in the USA. A Democrat controlled Congress will try to enact legislation that in certain cases, or in all cases, will get a Presidential Veto. So the next two years, USA will be a battlefield, while prices will keep rising and the Federal Reserve will be forced to keep putting the basic interest rate up, and up and up. So there is the certain risk that American debt will spiral faster and faster out of control and that the exodus of foreign investors will accelerate. 

Public debt bonds? France is already against the wall and unable to pass a new budget because of the lack of a political majority in the French Assembly. In Britain, the Bank of England put up the basic interest rate and there is the prospect of raising the basic interest rate even further. So, USA is next with China unloading American bonds in the open market.

In a few months time, Democrat success might feel, look and sound like a Phyrric victory. The situation in the Gulf is not going away and China is coming in as Middle East and Asia Minor become the natural choice for a country that needs vast amount of energy. As the USA struggles with politics and economics, this is a perfect time for China to expand. Voters, according to published surveys, voted because of the economy and if the economy does not get better, promises made by Democrats will not be delivered and peoples´moods might change again.