Armstrong Economics Blog/Politics
Re-Posted Dec 13, 2019 by Martin Armstrong
There has always been a very interesting correlation between British politics and American. Margaret Thatcher became Prime Minister on the 4th of May 1979. Ronald Reagan was elected on November 4, 1980. The BREXIT referendum took place on the 23rd of June 2016. Donald Trump was elected on November 8, 2016. The political trends have begun in Britain and then spread to the United States like a financial contagion. That makes perfect sense because the political trends are indeed set in motion by economics.
Now we have the December 12th British election with the end result was a crushing defeat of socialism in British history. Boris Johnson’s Conservative Party would have a majority of nearly 80 seats, which is the largest Tory margin since the days of Margaret Thatcher. Meanwhile, what took place on the opposite side was the worst result since the 1930s for Labour. We may indeed see the same outcome with the Democrats who can’t seem to come up with a middle of the road candidate.
Despite the fake news promoting socialism and climate change, the Labour Party could not deter the true sentiment underlying the trend these days – the people are fed up with the same promises from politicians that never seem to materialize. Promising to tax the rich never seems to lower the taxes for anyone else. All it ever does is line the pockets of politicians and in the process still leads to highs costs and a lower standard of living for the average person. Nobody ever proposes lowering the cost of government. It just borrows more and more and never pay anything off.
While in Britain the immediate consequence is that, for the first time since the referendum of 2016, there can no longer be any question that the British people want to leave the European Union. The politicians have been lying to the people all along. The truth is that the people would be subjected to absolute tyranny from Brussels for they would have no right to vote where they would ever be able to change the policies impacting their lives. The European Commission never stands for election and the European Parliament has no power to draft laws.
The impact for the British election is a warning sign that the Democrats have lost their way just as Jeremy Corbyn of Labour who was forced to step down as the leader of the Labour Party. The promises of Corbyn similar to that of Elizabeth Warren and Bernie Sanders. If the Democrats continue down this path of socialism, our computer is warning that they too will suffer the same fate and as I have made clear, there remains a serious risk that the Democratic Party will self-destruct, split between moderate Democrats and the extreme left who seem to be drunk their own fake news and like Labour, assume the people are too stupid to figure out the truth.