Tea Party Ousts 6-Term Republican Senator in Indiana Primary for Not Being Conservative Enough; Extreme Polarization of Politics in Greece, Europe, and US; Tweedledee vs. Tweedledum

On Tuesday, six-term Republican senator Richard Lugar was ousted  in shocking defeat in the Indiana primary to Tea Party activist Richard Mourdock, Indiana state’s treasurer.

Mourdock sent Lugar down in flames as he questioned Lugar's policies on immigration, Supreme Court nominees, the "Dream Act", and bank bailouts. Mourdock said Lugar was "not conservative enough".

As proof of how extreme things have gotten, the Indiana Democratic Party released a statement Tuesday evening thanking Mr. Lugar for his service and criticizing Mr. Mourdock as an “extremist” who is “out of touch with Hoosiers.”

The New York Times has details in Mourdock Defeats Lugar in Indiana Senate Primary

Clearly, there is increasingly little chance for moderates anywhere.

In Europe, 11 governments have collapsed over austerity measures. German chancellor Angela Merkel may be the next to go.

Chaos in Greece

Extreme polarization in Greece is such that no political party could gather as much as 20% of the vote. Indeed the top two parties combined could not even muster 33% of the vote.

For details and further discussion, please see

• Greeks Political Parties Prefer Chaos Over Compromise; June 17 Elections on the Way; Next Bailout Tranche at Risk

 

• SYRIZA's Tsipras Lists Bailout Rejection as Key Demand; Don't Rule Out a SYRIZA Coalition; Eventually May Be At Hand; Why SYRIZA Will Win the Next Election

Polarization in US

For polarization in the US, look no further than the surprising showing of Rick Santorum vs. so-called moderate Mitt Romney midway through the the Republican presidential primary.

Santorum finally stepped aside, but the damage has been done.

Please note that Romney is hardly a moderate in any sense of the word. Romney is a war-monger promoting war in Iran, trade wars with China, and still more military spending in spite of massive budget deficits.

Moreover, anyone who thinks president Obama and his union supportive stance is a moderate has mush for brains.

Greece Is Ungovernable Pariah State

My friend "HB" writes ...

Today the markets realized that it may become entirely impossible to form a government in Greece, even after another election.

In that case there will also not be the votes to continue with the bailout package. I think it is slowly sinking in what that could mean: the troika will no longer have anyone to negotiate with.

The IMF, EU,and ECB would see tens of billions each evaporate. Greece would become a pariah state and likely drop out of the euro, followed by either a radical leftist government taking power or a military coup.

Greece has become near ungovernable. Its infrastructure is crumbling, its jobless rate is over 20%, youth unemployment is 50%, and Greek administrative institutions are paralyzed and corrupt.

The empire is fraying at the edges - literally.

Greece may by itself not mean much, but it is the first modern industrialized post WW 2 welfare state to go completely bust. The signal alone should scare the bejeezuz out of market participants.
Tweedledee vs. Tweedledum

In the US, the presidential choice is between Tweedledee and Tweedledum. Take your pick as to who is who. In case you disagree, please consider ...

• Obama Seeks to Prove He is More Like Romney; Obama vs. Romney - What's the Difference?

 

• Not your grandfather’s Republican Party; President Obama and Mitt Romney are Nearly One and the Same! 

Frankly it does not matter except for four year's down the road, and except for near-term Supreme Court appointees. Romney wants to overturn Roe vs. Wade, believes corporations are people, and strip searches are fine on the the flimsiest of excuses, three extreme positions.

Are those reflective of extreme positions or core US values?

Ignoring the Supreme Court effect, both candidates are war mongers and ObamaCare is the same RomneyCare (even though Romney campaigns against himself).

Inane Election Choices

The only real choice in this election is whether 4 years from now you want to face the inane possibility of Romney winning 4 more years vs. the inane choice of Obama winning 4 more years now (knowing in advance he is gone 4 years from now).

As we sit back and watch Greece and France disintegrate into a morass of extreme politics, the shocking defeat of Richard Lugar in the Indiana primary to a Tea Party activist suggests the US is on the same path.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.
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