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December 30, 2018 | 116th Congress Starts January 3, Big Changes Coming, a Look at the Impacts

Mike 'Mish' Shedlock

Mike Shedlock / Mish 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.
Republicans lost their majority in the House but Increased their majority in the Senate. Let’s discuss what that means.

In the 116th Congress is scheduled to meet on January 3.

House Makeup

Republicans lost their Majority in the House which will make passing legislation much more difficult.

There is [1] vacant seat that is in dispute, North Carolina District 9, amid allegations of illegal activities committed by Republicans.

Political drama came more than seven weeks after Mark Harris, the Republican nominee for Congress in the Ninth District, seemed to defeat Dan McCready, the Democratic candidate, by 905 votes in November. But Mr. Harris’s apparent victory was soon overshadowed by allegations that a contractor for his campaign engaged in illegal activity to compromise the election. According to witnesses and affidavits, the contractor, L. McCrae Dowless Jr., and people working for him collected absentee ballots in violation of state law.

The election board refused to certify Harris and that board is now dissolved. It’s pretty clear Harris’ staff violated election law, but there is no agreement about what’s next.

Senate Makeup

Republicans increased their majority in the Senate. This will likely make judicial appointments far easier than the sad saga of Judge Brett Kavanaugh.

Legislation

Unless the Senate is willing to compromise with House Democrats, passing legislation will be difficult.

A government shutdown is underway, and Trump vows to keep it until he gets his wall. Nancy Pelosi will again become Speaker of the House and she says there will be no wall compromise.

Someone will eventually blink, either Trump or Pelosi, but polarization and political fighting will rise.

Mike “Mish” Shedlock

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December 30th, 2018

Posted In: Mish Talk

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