Best of the Week
Most Popular
1. Gold Final Warning: Here Are the Stunning Implications of Plunging Gold Price - P_Radomski_CFA
2.Fed Balance Sheet QE4EVER - Stock Market Trend Forecast Analysis - Nadeem_Walayat
3.UK House Prices, Immigration, and Population Growth Mega Trend Forecast - Part1 - Nadeem_Walayat
4.Gold and Silver Precious Metals Pot Pourri - Rambus_Chartology
5.The Exponential Stocks Bull Market - Nadeem_Walayat
6.Yield Curve Inversion and the Stock Market 2019 - Nadeem_Walayat
7.America's 30 Blocks of Holes - James_Quinn
8.US Presidential Cycle and Stock Market Trend 2019 - Nadeem_Walayat
9.Dear Stocks Bull Market: Happy 10 Year Anniversary! - Troy_Bombardia
10.Britain's Demographic Time Bomb Has Gone Off! - Nadeem_Walayat
Last 7 days
Stock Market Crash Edition - 26th Mar 19
Handy Ways to Boost Your Home Income - 26th Mar 19
US Treasury Bond Yield Inversion and Political Fed Cycles - 26th Mar 19
Golan Heights Oil all about the Shekels - 26th Mar 19
Falling Yields a Catalyst for The Gold Catalyst - 26th Mar 19
Can We Lock Up Rachel Maddow Now? - 25th Mar 19
Real US National Debt Might Be $230 Trillion - 25th Mar 19
Friday's Stock Market Sell-Off - New Downtrend or Just Correction? - 25th Mar 19
20 Days Left to Find Buying Opportunities In Gold - 25th Mar 19
Will the Historic Imbalance in Gold Stocks to Gold Price Resolve ? - 25th Mar 19
EasySMX Wireless Games Controllers Review - 25th Mar 19
Stock Market Short-term Top - 25th Mar 19
UK Population Growth - Latest ONS Immigration Statistics and Consequences - 24th Mar 19
The Fed Follows Trump's Tweets, And Does The Right Thing - 24th Mar 19
Yield Curves, 2yr Yield, SPX Stocks and a Crack Up Boom? - 24th Mar 19
Risk/Reward in Silver Favors Buying Now, Not Waiting for Big Moves - 23rd Mar 19
Similarities Between Stock Market Today and Previous Bull Market Tops - 23rd Mar 19
Stock Market DOW Seasonal Trend Analysis - 23rd Mar 19
US Dollar Breakdown on Fed Was Much Worse Than It Looks - 23rd Mar 19
Gold Mid-Tier GDXJ Stocks Fundamentals - 23rd Mar 19
Which Currency Pairs Stand to Benefit from Prevailing Risk Aversion? - 23rd Mar 19
If You Get These 3 Things Right, You’ll Never Have to Worry About Money - 22nd Mar 19
March 2019 Cryptocurrency Technical Analysis - 22nd Mar 19
Turkey Tourist Fakes Market Bargains Haggling Top Tips - 22nd Mar 19
Next Recession: Finding A 48% Yield Amid The Ruins - 22nd Mar 19
Your Future Stock Returns Might Unpleasantly Surprise You - 22nd Mar 19
Fed Acknowledges “Recession Risks”. Run for the Hills! - 22nd Mar 19
Will Bridging Loans Grow in Demand and Usage in 2019? - 22nd Mar 19
Does Fed Know Something Gold Investors Do Not Know? - 21st Mar 19
Gold …Some Confirmations to Watch For - 21st Mar 19
UKIP No Longer About BrExit, Becomes BNP 2.0, Muslim Hate Party - 21st Mar 19
A Message to the Gold Bulls: Relying on the CoT Gives You A False Sense of Security - 20th Mar 19
The Secret to Funding a Green New Deal - 20th Mar 19
Vietnam, Part I: Colonialism and National Liberation - 20th Mar 19
Will the Fed Cut its Interest Rate Forecast, Pushing Gold Higher? - 20th Mar 19
Dow Jones Stock Market Topping Pattern - 20th Mar 19
Gold Stocks Outperform Gold but Not Stocks - 20th Mar 19
Here’s What You’re Not Hearing About the US - China Trade War - 20th Mar 19
US Overdosing on Debt - 19th Mar 19
Looking at the Economic Winter Season Ahead - 19th Mar 19
Will the Stock Market Crash Like 1937? - 19th Mar 19
Stock Market VIX Volaility Analysis - 19th Mar 19
FREE Access to Stock and Finanacial Markets Trading Analysis Worth $1229! - 19th Mar 19
US Stock Markets Price Anomaly Setup Continues - 19th Mar 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast March to September 2019

US Political and Social Gulf - How Much Wider Can the U.S. Continue to Split?

ElectionOracle / US Presidential Election 2016 Oct 14, 2016 - 10:33 AM GMT

By: Harry_Dent

ElectionOracle

People don’t think I’m being serious when I say that this country could experience a split that makes Brexit look like a tempest in a teacup.
I’m talking about our country splitting in half (perhaps into even smaller segments) and I’m dead serious! While this isn’t a certainty, it’s clearly a possibility you should plan for.

There’s an ever-widening political/social gulf between the right and left. Any middle ground for compromise or agreement shrinks with every passing day. It’s like the Nothing in The Never Ending Story… dissent and social unrest this dark, ominous cloud devouring anything and everything in its path as it closes in on itself.


Of course, when I say “split,” that doesn’t necessarily mean the creation of totally separate nations (although that’s not totally out of the question), but the formation of clear red and blue zones, each with different social, regulatory and fiscal policies. And that could be as devastating as the North/South split coming into the Civil War.

Pew Research, the best general non-partisan research organization in my mind, shows the level of polarization in the U.S. today best in this chart…

Just look at the widening split between the median Democrat and the median Republican on a liberal-to-conservative scale of one to 10 between 1994 and 2004!

Now the divide has shifted from about 10% to 35%, favoring the Republican side a bit more.

But more important, among the politically engaged, the split is much wider! It’s closer to 55% apart, with the majority of both on the far left and far right!
In 1994, 64% of Republicans were more conservative than the median liberal. Today, that number is 92%.

Democrats shifted from 70% being more liberal than the median Republican to 94% between 1994 and 2014.

Thirty-six percent of Republicans see the Democratic Party as a threat to the nation’s well-being. Conversely, 26% of Democrats view the Republican party as such a threat.

The most surprising part is that most of this great divide has occurred since 2004, in just the last decade. In fact, political polarization wasn’t this extreme in the Roaring ’20s or Great Depression… a time when wealth and income inequality were as extreme as they are today.
And that makes today’s situation about as dangerous as the time leading up to the Civil War.

It’s not so much because of the extreme growth of the top 0.1% to 1% in income and wealth. That exploded in the second half of the 1990s and first peaked in 2000.

No. This is more about the destruction of the middle class… and that’s why Donald Trump got a larger following than Bernie Sanders, who was more about the revolt against the rich 1%. The civil unrest dividing the nation now could very well tear us apart.

There has also been a huge decline in the trust of the mass media, especially among Republicans – from a high of 52% in 1998 down to a mere 14% in 2016. Independents’ trust in the mass media peaked at 55% in 1999 and has fallen to 30%. Democrats’ trust fell from 70% in 2005 to 51%, currently.
This opens the way for a revolution in the media as well, especially on the Republican side.
And it’s why I see Donald Trump – love him or hate him – being more powerful if he loses this election and forms a new conservative media channel with his two partners, Roger Ailes (from Fox) and Stephen Bannon (from Breitbart News).

Such a new media push could continue to build this great polarization, especially from the Republican corner, where it’s already most extreme (and well-armed). It could well create a growing demand for a red/blue state split where we may have a single trading zone like the European Union, but two or more political institutions for social laws, fiscal policies and regulations.

The extreme economic decline I’m predicting will only feed such a split and greater civil unrest.

At this point, you need to not only make sure your capital is protected, but consider where you can live that will be the safest… areas like the middle of the country, exurban areas of larger cities and the Caribbean are good options.

Harry

http://economyandmarkets.com

Follow me on Twitter @HarryDentjr

Harry studied economics in college in the ’70s, but found it vague and inconclusive. He became so disillusioned by the state of the profession that he turned his back on it. Instead, he threw himself into the burgeoning New Science of Finance, which married economic research and market research and encompassed identifying and studying demographic trends, business cycles, consumers’ purchasing power and many, many other trends that empowered him to forecast economic and market changes.

Copyright © 2016 Harry Dent- All Rights Reserved 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.

Harry Dent Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules