Fiscal Cliff Confirms Post-Election Macro Call

Well, I guess I can't claim to run a 'markets/economics' blog without commenting on the "fiscal cliff deal," huh?  There alot of commentary out there already and the day job has me busybusybusy, but I'll say this...the fiscal cliff deal sucks for the country, but is awesome for me.  Well, not "awesome" but much better than I would have hoped (Thank You Democrats and Mitch McConnell for preserving most of my Bush tax cuts!).  My taxes will be going up, but not too much, and with an aggressive (but totally legal) tax avoidance strategy, I should come out relatively unscathed.  So, for all you OWS people, general libtards and any other such petty socialists, I am happy to say "Suck It!  This 4%er is raising his glass to maintaining at least some economic liberty despite your protestations."

As for the macro call in the wake of the fiscal cliff sh*tshow...it's the same call that I made post-reelection of the Lightworker:

- Treasuries: near term neutral, long term bearish - Treasury yields can't get much lower, Obama will tack on $5 trillion more debt in O2.0 and Bernanke will inflate, inflate, inflate.  You will lose your shirt loaning money to Obama 2.0's US of A.

- Equities: near term bearish, long term bullish - businesses will hunker down, hoard cash, avoid growth initiatives, but the prospect of losing your shirt in Treasuries will keep some demand under equities.  You will need a multi-year time horizon for returns in equities though.

- Commodities:  bullish - inflation is coming, good and hard.

- Real Estate:  bearish - property taxes are going up massively for everybody, the local fiscal imbalances will get pushed off and get worse, and the bill is going to be sent to people who can't react quickly.

Even if Obama got 500% of what he was asking for, we still couldn't pay our bills.  He got 37% of what he was asking for and spending is going up, not down.  Traveling down the road to national bankruptcy, we have just stepped on the gas pedal slightly more.  When we re-elected Obama, we all but cemented in stone four more years of $1 trillion+ deficits and $20+ trillion in debt; the fiscal cliff deal just confirms it.  Creditworthiness is not just not on the mind among the Obamacrats, they are actively laughing at and taunting the very notion of US creditworthiness.  It's a dangerous game.  I can't see the Bond Market Vigilantes standing for it much longer and Ben Bernanke only has so much juice.  The Treasury market is in for violence.  Inflation is coming and you hedge that via equities and commodities.  The name of the game is the same.