2010 Midterm Elections:

I don't like commenting much on these elections because the results aren't in yet.  As of now, there are still 11 House seats and 3 Senate seats 'to be determined.'  What happens in these last remaining seats could impact the overall analysis.

In any event, there has been a strong performance by the Republicans.  Republicans have taken back the House, and they can filibuster anything they want in the Senate, which means Democrats can no longer ram unpopular bills through Congress like they did with Obamacare.  What we will have now is two years of gridlock, with struggles to pass even simple budget measures, as both parties wait for the 2012 elections, which will be more decisive than this election cycle.  Democrats will look forward to 2012 because voter turnout is higher on presidential election years.  Republicans will look forward to 2012 because the Census will have rewarded them six extra seats in the House by then.  Also, many democratic Senators are up for re-election in 2012, which gives Republicans another favorable opportunity to sweep both houses of Congress.

Just because democrats lost the midterms does not mean Obama will lose re-election in 2012.  Unless Republicans field a strong candidate that everyone can rally around Obama will win again.  Democrats didn't disappear overnight in America.  The weight of inevitability is still on their side, as the demographic shift in America steadily continues.  All this does is give Republicans some breathing room.  Will they take this chance to stop illegal immigration?  Will they lower legal immigration?  It's up to Republicans whether they wish to be genuinely useful to America or just a stepping stone on the path to our brave new liberal future.  They always talk the talk, but they rarely walk the walk.

The most important result of this election is that democrats will no longer be aggravating the economic recession through more reckless, misguided economic measures like Obamacare.  The private citizenry of America will be able to fix their own economic problems using the breathing room Republicans can now provide them with due to a do-nothing Congress.  In a couple of years, with Congress not making the situation any worse than it is today, American businesses will have made the economy much better.  We can expect with this election that the recovery is now on solid ground and our stocks, bonds, dollar reserve currency, and all the rest remain safe bets for the world.  Just the reassurance electing Republicans gives to the world markets will pay off in spades in the next coming weeks.

America has not yet reached a point where true political reform is possible.  Small victories like these are the best we can hope for.