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Stay alert for new manifestations of this "Third Way" Clintonian strategy. It could achieve success in a couple more years.
By then, with Hillary at the helm, I expect that the Democrats will have metamorphed from the majority party to a permanent minority party, with about a third of the seats in both houses and maybe a third of the governorships, and with two chances of recapturing the WH.

I concur with your analysis. I firmly believe that there was a sea-change in American politics around 1966/68, and the old formula of rhetoric and coalitions for the Democrats began to crumble. They have been without a real message for over 30 years, as a national party. They are bankrupt of ideas. Carter won because of Watergate. Clinton won because he was able to mask his true beliefs, and in the elections he ran as a "moderate Republican." All they spew is hate and negativity, as is seen in the rhetoric of today. The Dem. Party, nationally, is hanging on by its fingernails. I think continued strong leadership from Pres. Bush will cause the Democrats to crumble over the next few election cycles. The Dems are on the wrong side of just about every issue, including abortion (as people are increasingly becoming skeptical of the "choice" position). If the Republicans work their advantage, it will be years before we see another Democrat in the White House.

As to Hillary, she has all of Bill's negatives, with none of his charm.

Stay alert for new manifestations of this "Third Way" Clintonian strategy.

Indeed. The "third way" rhetoric lasts until they have power. Bill really hit his liberal stride in his second term, when he didn't have to worry about re-election. Like Nero, who fiddled while Rome burned, Bill diddled while the national forests burned, because he (and Hil) never met a lib/radical/Green scheme they weren't willing to try.