President Obama a Democrat and the House of Representatives (Republican controlled) are attempting mutual strangulation. The Democrats are gambling the general population gets tired and turns on the Republicans. The Republicans are gambling the general population gets scared enough by high costs of Obama Care and the chaos of a shut down federal government.
President Obama does have his hands on the power levers of the Federal Government. Remember when your grandfather explained how FDR declared this really long bank holiday so they could re-arrange the financial furniture in the counting rooms behind the vaults.
Watch for Obama to declare a crisis (Duh) and to protect the public from themselves he will shut down the bond and stock markets in the US of A. No crashing markets. No hysterical investors throwing themselves out of windows. Gold will go up; except most people trade in paper gold so you will not be able to really do anything with it.
Basically he will by-pass the Republicans and hold ransom the private wealth of individuals and institutions that represent individuals.
Don’t believe me? Just wait and see.
George Gutowski writes from a caveat emptor perspective. Follow him on Twitter @financialskepti