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Dr. Price writes about stocks, options and the market every weekday on Real Money Pro, a subscription site onTheStreet.com. Paul has been a speaker at the International Traders Expo in New York City and the Options and Forex Expo in Las Vegas. He also gives investment seminars for subscribers of... More
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  • The Ultimate Buy (Votes) Now, Pay Later (With OPM) Presidency 8 comments
    Dec 27, 2012 2:42 PM

    The Ultimate Buy (Votes) Now, Pay Later (with OPM) Presidency

    America has never before had a leader that was more willing to spend other people's money to fund his own agenda. By invoking the "Never let a crisis go to waste" doctrine we've seen an unfettered progression of non-congressionally debated programs.

    Each of these went a long way towards implementing President Obama's vision for our nation. The basic principals involved revolve around one theme.

    (click to enlarge)

    Details have varied but the end results all point in the same direction. None of this could have happened if the media was not complicit in its adoration and deferential treatment of our newly re-empowered king.

    This year's presidential race employed class warfare as a talking point to an extent never even remotely seen previously. The president's campaign hinged on refocusing America's collective psyche away from four years of a horrible economy.

    Instead, Democrats directed the media and the public towards simply loathing those who were unusually productive or successful entrepreneurs or just happened to be members of the 'lucky sperm' club.

    History will show that the political strategy worked even though Obama's economic policies, along with a huge slug of working-age Americans didn't.

    It was quite easy to get the masses to agree that taxes should be much higher, as long those higher levies would be paid strictly by somebody other than the person being asked whether to increase them.

    When traveling in Europe this past September I was quite surprised to hear almost a word-for-word social justice (read: tax the rich bastards more) dialog being broadcast there as well.

    The Great Recession covered for more than $4 trillion in new deficit spending. Candidate Obama was outraged at $9 trillion of debt. He is insulted today by a more than $16 trillion debt limit.

    (click to enlarge)

    We are already starting to see the lies concerning the true costs of ObamaCare. Those with decent incomes will now be paying for themselves plus another, anonymous, adopted family. The phased-in time frame will hide the extent of the ultimate obligations until after our leader is out of office.

    College loans? In the old days you borrowed as little as possible and paid back as quickly as you could to save on interest expense. With today's Federal student loans you have an incentive to borrow the maximum amount available and to pay back as slowly as legally possible. Those with jobs deemed 'good for society' will have balances written off outright. Others will have them forgiven after 10 - 20 years. The 'gifts' come now from a benevolent Obama; the taxpayer burden comes well after he's left office.

    The way to eliminate unemployment is to eliminate unemployment insurance. Pay people to stay at home and they will. Another extension just fosters 'off the books' work while keeping more voters indebted to their enablers. Disability eliminates the charade of even looking for work by making things permanent plus adding Medicaid coverage.

    Housing subsidies and food stamps give working people a disincentive to earn more. Why bust your ass if you might forfeit the ability to live cheaply or free?

    Refi's and Cram-downs steal money from those who made the loans while shifting default risk to only those suckers who actually still pay federal income taxes.

    The 2% FICA tax holiday funded consumer spending during the two-years prior to presidential election. The $120 billion yearly bill must be made up through increased non-FICA taxation. This shifts the burden further onto the 'lucky few' and away from 'working people'.

    If any part of tax relief does not get extended this 2% temporary cut might be sacrificed as it brings in big money and there are no more big elections for two years.

    Bernanke's ZIRP (zero interest rate policy) helped debtors while killing any chance for risk-free returns for savers and investors. ZIRP rewards bad behavior (borrowing) while penalizing good behavior.

    We would not want to train our pets or children that way. We'd expect bad dogs and lazy kids. This, however, has become Washington's standard operating procedure.

    Democracy these days has morphed into, "Two wolves and a lamb voting on what to have for dinner." The voting results will not necessarily be moral. They will predictably always reflect a solid majority. Those hungry wolves can then correctly claim they had an electoral mandate.

    Dr. Paul Price Dec. 27, 2012

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Comments (8)
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  • joe kelly
    , contributor
    Comments (1714) | Send Message
     
    Your guy lost Paul. Get over it man.
    27 Dec 2012, 03:04 PM Reply Like
  • Paul Price
    , contributor
    Comments (1502) | Send Message
     
    Author’s reply » Joe,

     

    Thanks for your very nice, well thought out rebuttal.
    You really destroyed all my factual arguments.
    27 Dec 2012, 03:23 PM Reply Like
  • jaych79
    , contributor
    Comments (506) | Send Message
     
    Just because Romney lost does not take away from the points that Paul made. Everything he has laid out in this article is spot on. If you cannot see that then you are just blinded by your naivete.
    28 Dec 2012, 10:40 AM Reply Like
  • joe kelly
    , contributor
    Comments (1714) | Send Message
     
    Let that be a lesson to you.
    27 Dec 2012, 05:05 PM Reply Like
  • Bill913
    , contributor
    Comments (25) | Send Message
     
    Dr Price, you speak the truth. Ironically those who blindly support this fraud are the very ones that will suffer the most.
    27 Dec 2012, 05:42 PM Reply Like
  • nmelendez
    , contributor
    Comments (1622) | Send Message
     
    Does it really matter? If you are standing on the tracks and see the train coming but do not move, what happens? We seen the train coming from both parties, but we chose to rely on our principles believing it is the same as those we vote for. Guess what, they're not. So just get ready to be runover by the train.
    28 Dec 2012, 03:04 PM Reply Like
  • SkipK
    , contributor
    Comments (922) | Send Message
     
    Paul. you've made very broad rhetorical statements, especially that the President wants free (food etc.). that's simply not true based on any actions. On healthcare, it's simply better economically for us to have everyone covered and contributing into the system. not to mention, more moral. Obama is a centrist president, not a liberal by any stretch of the imagination. I'm disappointed in your analysis. where was your outrage when we got into Iraq for no reason, and lost over $1T and over 3000 lives? or when the financial meltdown happened, partly due to an administration that simply didn't believe in regulation?
    28 Dec 2012, 06:25 PM Reply Like
  • TomHend
    , contributor
    Comments (4) | Send Message
     
    "Our side" dodge a bullet by Mitt not winning.
    30 Dec 2012, 04:16 PM Reply Like
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