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Marvin Clark
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Marvin R. Clark is the Managing Principal of Monsoon Wealth Management (MWM). Monsoon offers affluent individuals and business owners’ wealth management, economic, and market advice throughout America. Based in Scottsdale, Arizona, Monsoon’s major task is employing a macroeconomic top-down... More
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  • Bend it like Beckham, Mr. President 5 comments
    Nov 24, 2009 2:30 AM | about stocks: UDN, FNMA.OB, FMCC.OB, GLD, SGOL, IAU

    Dear President Obama, I think it is safe for me to say that your reelection in 2012 is in grave danger. The capacious bill of particulars I will leave to others to catalogue and debate. The price of gold, interest rates, the strength of the dollar, elements of my solar system - finance, and their subsequent future rests in part on the national debt’s gravitational pull on money. At $12 trillion dollars and growing, and an arrested and decaying GDP, not thinking out of the box to attack this problem, sir, is not an option. 

    The New York Times front page story today brought into focus this underreported but not intractable problem. Your Democrat-controlled congress will most surely spread some money around in the economy next year before the November elections, thereby, pushing the dollar (UDN) lower still and sending the price of gold (GLD, IAU, and SGOL) ever closer to $2,000 an ounce. Mr. President, do wish to preside over the first credit rating downgrade experienced by the USA in modern history? 

    An unorthodox solution (read change) to confronting this phantom menace is with an innovative Cash-for-Citizenship Program.  Follow me here for a second with a back-of the-envelope calculation. If you reject this idea out of hand be prepared to prioritize raising taxes, cutting expenses, debasing the currency, creating a large surge in growth, or default. 

    Currently, there are 307 million Americans and a world population of seven billion people. Selling one million citizenships a year, after a thorough background check, at $1 million dollars each, is $1 trillion dollars, annually. To put things into perspective, Michael Jackson’s sequined-glove just fetched $420,000 grand in a charity auction, from a Hong Kong buyer last Saturday, in New York City, so there’s plenty of loose cash around the planet. Let’s unbutton this meme to congress in the elevator and see if they exit on their floor. 

    Five trillion dollars over the next five years will help pull your reelection and the nation’s debt woes out of a growing sinkhole.  Additionally, if our new comrades-in-cash need shelter, for a small addition fee, they can choose a fine residence from the Fannie Mae (FNM) or Freddie Mac (FRE) inventory of recent foreclosures, furthermore, turning sub-prime lemons into lemonade. One hundred years ago, we embraced emigrants coming to America because we needed their strong backs, their tireless muscles, and their dream of a better future. Today we need their Platinum and Black American Express cards and their children’s 1,600 SAT scores. 

    This audacious idea will bend debt servicing away from a sure disaster. Like Beckham, you can score against the deadly debt monster with its toxic interest costs that’s lurking outside the economic recovery’s door and your reelection bid. Otherwise, the greenback, currently posing as a currency piñata, will continue dancing the international Limbo, long after you leave office.

    Disclosure: GLD, SIVR, SGOL
    Themes: national debt, aaa credit rating, obama, reelection Stocks: UDN, FNMA.OB, FMCC.OB, GLD, SGOL, IAU
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  •  
    I see the administration currently is in hiding, so much for transparency. They are also partying, the recent lavish state dinner as an example, enjoying it while they can in the White House. In the meantime, it's real funny that on local levels, past decisions that really brought in a lot of tax revenues such as restricted bar hours are now on the brinks of being overturned, while local and state governments struggle with budget dilemmas. Expect the same to happen in DC, they will probably forgive all illegals in the US, that are left, and extend citizenship to capture needed tax moneys. Think of anything that can be done to increase falling tax revenues and it will soon happen in desperation. I doubt that anyone will want to pay for citizenship, but they will probably give it a try in desperation; however, with the threat of increased taxes, especially for the ones that we really need with the Centurion Cards and SAT acing children, very doubtful with the tax increase possibility and nothing in return. Furthermore, as an example with the local and state governments facing budget concerns, why would anyone want to come here with an already existing infrastructure that is of concern that are just going to be neglected with decreasing state tax revenues. I am betting that there is more an exodus of wealth from the US, the wealthy make moves based on "how will it affect my pocket" and are far better at managing their money and can afford to move to safer places for the sake of their money, Australia is looking good btw. I just don't think it will be here with all our current woes, maybe one year when this somehow blows over.
    30 Nov 2009, 03:34 AM Reply Like
  •  
    You buy straw-hats in January.


    On Nov 30 03:34 AM Tekatl wrote:

    > I see the administration currently is in hiding, so much for transparency.
    > They are also partying, the recent lavish state dinner as an example,
    > enjoying it while they can in the White House. In the meantime, it's
    > real funny that on local levels, past decisions that really brought
    > in a lot of tax revenues such as restricted bar hours are now on
    > the brinks of being overturned, while local and state governments
    > struggle with budget dilemmas. Expect the same to happen in DC, they
    > will probably forgive all illegals in the US, that are left, and
    > extend citizenship to capture needed tax moneys. Think of anything
    > that can be done to increase falling tax revenues and it will soon
    > happen in desperation. I doubt that anyone will want to pay for citizenship,
    > but they will probably give it a try in desperation; however, with
    > the threat of increased taxes, especially for the ones that we really
    > need with the Centurion Cards and SAT acing children, very doubtful
    > with the tax increase possibility and nothing in return. Furthermore,
    > as an example with the local and state governments facing budget
    > concerns, why would anyone want to come here with an already existing
    > infrastructure that is of concern that are just going to be neglected
    > with decreasing state tax revenues. I am betting that there is more
    > an exodus of wealth from the US, the wealthy make moves based on
    > "how will it affect my pocket" and are far better at managing their
    > money and can afford to move to safer places for the sake of their
    > money, Australia is looking good btw. I just don't think it will
    > be here with all our current woes, maybe one year when this somehow
    > blows over.
    1 Dec 2009, 08:40 AM Reply Like
  •  
    Marvin:

    How can Obama get re-elected in 2012? One way that I see: he has to make the boys on Wall Street the whipping boys. He needs to attack; and he needs to lay the blame for the end of the world at their feet. He needs to pull out the gardening sheers, and make fast work of Goldman Sachs, Morgan Stanley, Bank of America...

    He needs to play the 'class card'.

    If he doesn't, then the democrats split in two: 1 Obama's Preservationists; 2. Someone else's 'Force for Change'. (The Republicans are going to be leaving us for awhile.)
    14 Dec 2009, 12:20 PM Reply Like
  •  
    Obama is a one-term president. Democrats will lose the house and keep the senate in 2010. The 45th president of the US will be Sarah Palin.
    15 Dec 2009, 12:33 AM Reply Like
  •  
    "C'mon man!"

    Sarah will only become president in 2012 if Tim Tebow is the VP candidate and Jumpin Joe Lieberman is Secetary of Health, Education, and Welfare!


    On Dec 15 12:33 AM Marvin Clark wrote:

    > Obama is a one-term president. Democrats will lose the house and
    > keep the senate in 2010. The 45th president of the US will be Sarah
    > Palin.
    15 Dec 2009, 02:56 PM Reply Like
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