As California’s ballot count drags into its third week, the state’s electoral machinery is revealing itself to be as leaky as a sieve. The chaos in California is not merely an administrative embarrassment; it is a capital flight catalyst. Investors hate uncertainty.
They hate it more than they hate paying capital gains tax. The longer votes remain uncounted, the more the market reprices political risk. Gilt yields may be steady now, but if this infection spreads, don’t expect the Bank of England to ride to the rescue.
The contrast with our own postal voting system is stark. British elections are usually called by the next morning. Our system is not perfect, but it is efficient.
It is a model of fiscal conservatism in motion. We count votes with the same dispatch we expect from a City firm settling a trade. California’s mess is a reminder that fiscal responsibility begins with reliable governance.
If you cannot count votes, how can you trust the Treasury to count pounds? The market is watching. And it is not impressed.
