New York, October 1st, 2013, Advisor Update®
“Once More Unto The Breach, Dear Friends, Once More”
Just as Henry V used these words to exhort his tired and beat-up men at the battle of Harfleur, US politicians are encouraging US citizens to set aside common sense, civility and concerns about the fragile economic recovery, proving once again how ill-suited they are to govern. We shouldn’t be surprised, since the US Congress and Administration have failed to agree on a budget since 2009 and have passed no significant fiscal legislation in three years. But who is to blame? It’s a case of Pogo’s lament: “We have met the enemy and he is us.”
The odds that the current impasse will shut down government for long are very low, but you can be sure the media and the multiple-screen talking heads on CNBC will do everything they can to make us forget that fact over the next month and a half. Obscured in the noise and posturing are these truths: 1) the global recovery underway since 2009, while halting and fragmented, continues to make progress; 2) the central banks of all the major developed countries continue to be supportive of this recovery with low rates and easy money policies; and, 3) the volatility and fears generated by this latest round of media-assisted lunacy are not credible reasons to amend a diversified investment strategy.
The reason we are to blame is that we continue to re-elect incumbents to national offices. We re-elected Bush II after his Iraq disaster was unfolding in front of us; we re-elected Obama when most polls felt that his opponent would handle economic issues better. And Congress? The approval rating is at historical lows, yet the re-election rate is above 90%.
Henry went on to glory later at Agincourt and is often seen as an example of a flawed, yet brave, pragmatic and resourceful leader. How many politicians in Washington are capable of such courage and reason?