Tuesday's election results really weren't about the parties, even though Republicans scored huge victories, says Peter Schiff, CEO of Euro Pacific Capital.
"The sharp rebuke to the Obama administration delivered by the mid-term elections should not be construed as an endorsement of the GOP, which remains as unpopular as ever," he writes on Real Clear Markets
"Rather, as has been the case in the last few election cycles, voter revolts have hinged on continued dissatisfaction with the strength of the economy and the diminishing financial prospects of ordinary citizens."
Though official economic growth totaled 3.5 percent in the third quarter, "voters are dissatisfied with the economy because it is bad and getting worse," Schiff says.
"Although this unpleasant reality can be masked by economic doublespeak and government accounting gimmicks, the truth comes out in the ballot box."
Low interest rates, quantitative easing and deficit spending have created "an illusion" of economic recovery, Schiff writes. These policies have sparked asset bubbles aiding the rich, he says.
"While Republicans may now be basking in their good fortune, they would be wise to keep the celebrations in check. The same problems that angered voters today will still be in place two years from now, only by then, they will likely be worse," Schiff notes. "Republican majority in both houses will firmly affix targets on their backs, and will invite the kind of backlash that was recently directed at Democrats."
New York Post columnist John Crudele
agrees that the economy's strength has been overstated.
"Our nation's economic statistics are nipped and tucked, massaged, managed, fabricated and dolled up," he writes. "In short, our statistics are wrong, and Main Street folks know it."
Crudele doesn't quibble with the fact that the economy is growing moderately. "That's pretty much certain, but it's not growing as fast as the government would have you believe."
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