This is an update to an earlier post, "Update on the Road to Plutocracy", in which the forecast for a full blown plutocracy in the United States is slowly being fulfilled as the stage continues to be set behind the scenes. In August 11, 2012, Mitt Romney selected Paul Ryan as his running mate. The significance of the event, as with so many cases, is not fully recognized by most people. The key to the larger picture is that Paul Ryan is a member of the American Legislative Exchange Council (ALEC) and is closely connected with the Koch Brothers (and Koch Industries).
Paul Ryan's connection with Koch Industries and ALEC is very significant, as the Koch-ALEC cabal is identified as the engine that will drive the future plutocracy in the United States starting in 2042. This also does not conflict with the idea of a Bachmann Administration Period, which is forecast to span from 2017 to 2024. While Michele Bachmann has not been confirmed to be a member of ALEC, her platform is virtually identical to Paul Ryan's as far as economic policy is concerned. This brings about the possibility of Ryan / Bachmann or Bachmann / Ryan for the 2016 presidential election in which bearish social mood is guaranteed to result in the Democratic Party taking massive losses during the 2016 elections to a comparable (if not even larger) degree to the losses that the GOP sustained in the 2008 election and either Michele Bachmann or Paul Ryan as the next president of the United States.
The forecast for a plutocracy is based on the characteristic of a B wave within a larger bear market of Supercycle degree and above, in which B waves are technically weak with weak fundamentals. Just as fifth waves are weaker than third waves by every measure, B waves are weaker than fifth waves by every measure. A full blown plutocracy is consistent with the expected character of Supercycle wave (b) up (2042 - 2076) of Grand Supercycle wave [IV] (2000 - 2118), including the fact that only a small cross section of the populace will take part in the return to prosperity in the United States after "The Great Deflation" ends in 2042.
We continue to see evidence of a coming plutocracy in the United States, as new developments illustrate:
1 -- The middle class continues to decline with most people in that group substantially worse off than they were a decade ago.
2 - The destruction of living wage jobs and family wage jobs continues unabated, with the last of the family wage jobs projected to be gone by 2015 and the last of the living wage jobs projected to be gone by 2020.
3 -- In spite of the phony "recovery" in the job market, corporations and businesses are not really putting in much effort in hiring more workers. This is consistent with the expectation of increasing conservatism due to a bearish social mood that is unfolding.
4 -- Poverty continues to proliferate, with the official poverty rate reaching the highest point since the 1960s. The actual poverty rate in the United States is likely around 35% to 40%. Expect the poverty rate to reach much higher levels by the time the plutocracy arrives in 2042.
5 -- As of 2011, 40% of households in the United States were living paycheck to paycheck. At the start of the Grand Supercycle degree bear market, the figure was 31%. There is no doubt that the bear market continues to have an effect on the economy, akin to a house that is prettied up with new paint on the outside even as the foundation of the house continues to rot.
The rise of Paul Ryan in the political arena is another indication of the coming plutocracy, In 2016, bearish social mood associated with Primary wave [X] down 2011/2012 - 2016) within Cycle wave x up (2009 - 2021) will make conditions ripe for Paul Ryan to ascend to the White House in 2017 either as VP or President.