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Obama’s Re-Election: What It Means To You & Your Financial Future
By Michael Stead
Since his inauguration back on January 20th 2009, Obama has made some pivotal decisions that is fueling the shift which is reshaping the very foundation and context of what defines the American ideology.
What was once the “Land of The Free & Home of The Brave” has now become the“Land of The Slaves & Home of The Victims”.
Let me explain…
Over the last 30-40 years, America has experienced one of the greatest expansions in personal prosperity the world has ever known. The standard of living of the Western culture has increased to the point where most consumer spending is devoted to non-essential purchases – meaning purchases that do not contribute to our basic human needs such as food, clothing, and shelter.
As is with multiple generations having experienced these levels of ever increasing prosperity, the social mood and expectations of everyday citizens has shifted from the virtues of hard work and production to entitlements and consumption.
Somehow the latest generation of people has formed the idea that their prosperity is“owed to them” or that they “deserve it” just by the sheer virtue of their existence. And when the people speak, politicians listen.
As America’s economic affluence grew, so did the layer upon layer of public works and social programs. While these programs were successful in helping those who were truly in need, the extent to which they expanded began to far outweigh the ability of the country to adequately fund these obligations – at least not in terms of REAL money.
At the time of Obama’s emergence to run for the presidency however, the United States’ economy was virtually on life support.
-The stock market suffered its largest single day crash in history – the DOW Jones plummeting 778 points.
-The housing bubble – which fueled the largest expansion in credit ever witnessed – had popped causing housing prices to decline dramatically (as much as 50% in some municipalities like Las Vegas).
-Once respected institutions filed for bankruptcy including Lehman Brothers, Bear Stearns, and Fannie Mae & Freddic Mac to name a few…
-The average American’s net worth dropped more than 40% from its high in 2007.
-The Federal Reserve orchestrated the largest bailouts in human history to the tune of tens of TRILLIONS of dollars in order to prop up banks, big business, and special interest groups.
Needless to say, I think you get the idea of the size and scope of the problems that were present at the time…
While the poor still remained poor, the middle class became impoverished, and the rich greatly increased their wealth, Obama set about on a campaign which promised to bring about “Change” and to restore “Hope” to his fellow countrymen.
…And so it began…
Introducing “Obamanomics”
Rather than addressing the underlying root cause of the imbalances in the economy (i.e. excessive government borrowing and debt), Obama vied to gain political power by promising to do more of the same – more social programs, more entitlements, more welfare, etc.
Having a newly impoverished middle class who lost their homes and life savings in the financial crisis, and who became unemployed – therefore, not earning a salary and paying their share in taxes – this classic “Robbin Hood” theory spread with hysteria around the nation amongst voters.
Because the majority of citizens do not pay for government services, their natural response is to demand more and more of them. They want more handouts, more entitlements, more food stamps, free health care, free college education, free “Obama” phones, discounted housing and cheap mortgages (see the videos below).
When the people speak, politicians answer their call. Below is a chart showing the growth in food stamps since Obama has been in power. As you can see, it has roughly doubled from about 27 million to over 47 million people receiving food stamps from the government!
Food Stamp Enrollment Since Obama’s Presidency
So how exactly does Obama intend to pay for these programs? Yup you guessed it – by taxing the hell out of the productive sector of the economy (i.e. the rich).
As it currently stands today, about 10% of the US population pays for roughly 75% of all income taxes!
You want to talk about inequality, THAT’S the inequality…
The system that exists today does nothing but create an illusion that somehow the government and its services are free. However, don’t bother trying to explain this to the recipients of these programs…
They will find every reason and argument under the sun as to why this system is “fair” and “just” – that the benefits they receive are “owed to them”. Of course their logic make no difference as the ultimate decision gets made down at the ballot box when it is time to vote for who is to lead the country next.
Unfortunately, not even taxing the rich will not be enough to meet the demands of the people. Right now the US government is spending around $3.5 trillion per year. They collect around $1.1 trillion per year in income taxes.
Therefore, even if you doubled income taxes, the US government would STILL be running a deficit!
Rather than facing reality, the government has another solution…BORROW!
Since Obama has been in power, the US national debt has grown more than 62% exploding from around $10 trillion to over $16.2 trillion today.
US National Debt
This means that over his first term, Obama has added on more debt than any other president in US history!
My friends…that is pure insanity. This is why every time there is some sort of emergency government meeting that is devoted to solving the fiscal problems, they always come back with nothing. Our leaders don’t want to admit to the people just how much trouble the country is in and that there aren’t any viable solutions.
Yes…I’m afraid that the “something for nothing” ride on the backs of the productive class will soon come to roost and that the reality of America’s finances will soon become obvious to all.
Fortunately for you and I, we can equip ourselves with a small intellectual advantage to prepare and position our assets to be on the winning side of what is going to be the largest transfer of wealth in mankind.
How To Invest Your Money With Obama’s Re-Election Over The Next Four Years…
In a word, the US is completely insolvent, broke, and bankrupt beyond any point of recovery. The government has no way to pay for its future obligations and as a result, they have begun printing MASSIVE amounts of money in order to keep the country afloat. Check out the chart below and you’ll see what I’m talking about…
While this may work in the short term, in the long run this will result in the destruction of the value of the US dollar which will cause the middle class and anyone else with savings to be completely wiped out.
During these tumultuous times however, individuals who position themselves in hard assets stand to do FAR better than those whose assets are denominated in US dollars.
Take a look at the price of both gold & silver over the past four years since Obama has been in power – each respectively up over 100% during that period of time.
Gold Price Since Obama’s Presidency
Silver Price Since Obama’s Presidency
Given that the Federal Reserve just recently pledged to continue buying $40 billion of mortgage backed securities a month into perpetuity, this trend will continue and will become much more dramatic over the coming months and years ahead.
Although buying gold & silver should be pretty much a no-brainer, unless you buy them correctly (and sell them correctly) you could end up doing FAR more damage than the good you intended to acquire.
At The Abundance Society, we teach our clients EXACTLY what they need to do step-by-step to not only prepare for the coming fiscal crisis, but also to prosper during times of economic anarchy.
If you want to learn more about how to invest, manage, and grow your money the way the rich and the wealthy do, then CLICK HERE to get instant access to our online community.
Please post a comment and tell me what you thought of today’s post and feel free to ask questions or make comments. I’ll be answering questions and reviewing comments personally.
To your abundance,
Michael Stead
Founder, The Abundance Society
