The United States has a lot of problems. Most of these problems can be traced to a few root causes:
1) An unstable energy foundation dependent upon importing foreign oil. This has led directly to the economic, ecological, and national security issues the country faces today.
2) Unwise fiscal and monetary policies.
3) A government which is longer democratic and capitalistic; instead the U.S. government increasingly resembles fascism and is simply being used to funnel the country’s wealth to the well connected “chosen few” at the great expense of the middle class.
Most people know my opinion of George Bush: I believe he was the worst president in the history of the United States. Not only did George Bush not recognize the problems above and attempt to fix them, his policies worsened each problem such that they are all now at the crisis stage. Let’s take a look at recent history before looking at where we are today.
Bush refused to acknowledge the foreign oil import problem and instead invaded Iraq supposedly to assure long term oil supply. This action took millions of barrels of crude off the market just as China’s demand was ramping up. It also led to a huge geopolitical risk premium being tacked onto the price of each barrel of oil and Americans are stuck with this “tax” forever. The result was $145/barrel oil and the economic crisis we are in today.
Bush’s insistence on tax breaks for the wealthy coincident with spending like a drunken sailor doubled the country’s debt load in a mere 8 years. This was unprecedented in the history of the country and even exceeded the idiotic fiscal policies of another supposed “fiscally conservative” administration: Reagan/Bush#1. The result was huge U.S. Treasury debt issuance putting China firmly in control of the U.S.’s financial future and entrenching that country in the world’s catbird seat when it comes to buying up the world’s natural resources.
The country took a huge turn away from democracy and capitalism under George Bush’s “watch”. First, the events of 9/11 were used as an excuse to take away American citizens’ rights and freedoms starting with the infamous “Patriot Act”. Next, another “shock event” (the economic crisis) was used as a fascist excuse to take middle class tax-payer money and bail out the banks, insurance companies, and pay the already rich executives of these bankrupt entities billions of dollars in bonus money for their wonderful jobs. The result of course was a vastly weakened middle class and a chosen few very lucky (and very rich) people. We should call it what it is: fascism (http://en.wikipedia.org/wiki/Fascism).
Things aren’t getting any better under Barack Obama.
Despite all rhetoric about renewable energy policy, the most important issue that needs to be addressed is the country’s reliance on foreign oil imports. The fact is we are making no progress on reducing foreign oil imports other than decreased demand as a direct result of the severe economic contraction. Obama’s choice of Steven Chu for Energy Secretary was simply disastrous. How Obama could put someone in the critical Energy Secretary position that was “agnostic” about natural gas transportation and pro the oxymoronic and myth of “clean coal” was shocking. I continue to call for Obama to fire Energy Secretary Chu of, alternatively, for Chu to resign his office.
On fiscal and monetary issues, Obama is continuing (and expanding) the failed policies of the Bush administration. The deficit spending and printing of money is continuing. We now find out that another Obama appointee, SEC head Mary Shapiro, was reported to be a “good dear friend” of Madoff. The inner circle of Greenspan, Shapiro, Geitner, Bernanke, Milken etc. etc. seem to be firmly entrenched in monetary policy as well as financial oversight. Again, it’s the fox in charge of the chicken coup and I call for Obama to fire Mary Shapiro or, alternatively, for her to resign.
Also under Obama, the wealth continues to flow to the well connected. Bailout and bonus money has not been stopped, and in some cases accelerated on Obama’s watch. The Department of Justice, the SEC, Congressional ethics panel, FBI and CIA all seem to be incapable of putting a stop to the raping of the nation’s wealth by insiders.
So much for “change”. At the most critical juncture in U.S. history, we are now quite likely to see the worst president in U.S. history followed directly by the second worst president in history.
What does this have to do with investing? Everything! It’s going to get ugly folks (hell, it’s ugly already!). Buy gold and silver. More importantly, fight back. We need all 50 states to call for a constitutional convention. We must put a stop to the Ivy League dream of a “new world order” and “one world currency” which is dependent first on the destruction of the United States in order to implement. This is what Bush (Yale) and Obama (Harvard) have been working overtime to achieve. The American people must *wake up* and refuse to cooperate. We need to change the game, or we are going to lose our freedom and our country, not to mention our paper money investments in Wall Street and in our brokerage accounts.
Disclosure: the author is long gold and silver.
Disclosure: the author is long gold and silver.