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Cramer: Rally's Secret Ingredient, Politicians

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Sometimes it just comes together. Every now and then, disparate catalysts blend in an unexpected way and in turn, they generate a positive outcome that nobody expected.

It's that kind of thing that Jim Cramer believes is underway right now.

Despite ongoing dysfunction and partisan politics Washington may have done something good if only by accident.

The recent tax increases, plus spending cuts from sequester accompanied with economic growth have converged almost perfectly.

Among the beneficial results - the Treasury doesn't look like it's going to run out of money any time soon," Cramer said.

Jacom Stephens | E+ | Getty Images

That's major. It changes the dynamics in the market. Now we know the Treasury can continue to pay its bills.

Despite dire warnings from Republicans, "Higher taxes on the rich have raised some much needed money," Cramer said, but didn't send the economy into a tailspin.

And though Democrats insisted spending cuts would kill the recovery, "some of the real drags on the budget, like the endless spending to support Fannie Mae and Freddie Mac have now stopped," Cramer added. And the nation didn't go off a cliff.

Instead of chaos, pros became more confident. They were able to see that "we are not lurching toward another crisis." That took a very bearish catalyst out of the equation.

It eliminated, "the anger and the paralysis that have slowed business formation, destroyed confidence and made it so the American consumer always feels that things are out of control," Cramer explained.

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All told the tax increases and spending cuts, "may actually be one of the best thing that has happened in 2013," Cramer added.

"We may look back and say it nullified a manufactured crisis in Washington and allowed business to flourish. It may well be the secret ingredient to this amazing bull market," he said.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

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