The economic news is all bad, and I mean 100 percent bad to the bone. As in a nightmare. As in an Obama Great Depression. Just as I’ve warned and predicted for 3 years now- Obama’s policies would lead to economic disaster. It’s happening.
The Chicago PMI (Purchasing Managers Index) collapsed to 52.7 from 56.5. This is a miss as wide as the Grand Canyon. That’s the lowest it has been since September of 2009. What this all means is that manufacturing is grinding to a halt in Chicago- Obama’s hometown. If the President can’t make the economy go up in his own hometown (with bailouts, stimulus, green energy, government “investments” etc.), what do you think that means for the rest of us?
Claims for jobless benefits rose. The number of Americans workers going without paychecks for 6 months or more stands now at 5.4 million. That’s up 300,000 just since April. In May, employers announced plans to cut nearly 62,000 jobs, a 53% increase versus April, and 67% versus May of last year. Private employers created only 69,000 jobs, well below the expected number of 150,000. And GDP was a disappointing 1.9%, even lower than an anemic 2.2% last month. This is like playing LIMBO- how low can we go under Obama?
I’m not sure if the sky is falling. But the economy is in free fall. Malaise. Misery. Crisis. And we haven’t even gotten to Spain yet. I predicted months ago- when no one was paying attention- that there was an unprecedented economic tragedy unfolding in Spain. A problem that would make the Greece meltdown look like a child’s play. I warned that as the 12th biggest economy in the world, Spain’s “crisis of all crises” could bring down the entire EU. Don’t look now, but it’s happening.
Spain reported only days ago that its citizens are getting their money out of the country. Last month, over 66 billion euros were sent out of Spain. Compare that to 5 billion euros exactly one year ago. That’s the all-time record since record keeping began in 1990. A tragedy of epic proportions is unfolding.
Why is this happening? Why is the world economy in free fall? Well it’s not just Obama’s fault. Or the Democrats. Or the Republicans. Or any one party in Europe. It’s every one of their faults. It’s a team effort. It’s the synergy of big government progressives who can never find a dollar to cut in the budget, for fear of offending one group, or one person, or one voter.
So no spending ever gets cut.
I’m a proud member of AARP- Americans Against Rotten Politicians. And our campaign slogan is VETO- Vote Everyone of Them Out! Almost every politician, on both sides of the aisle, believes in two things- spending more of the taxpayers’ money…and kicking the can down the road. Why do they kick the can? Because there is no other choice in their demented worlds. They either keep spending and handing out bribes to their voters and biggest corporate contributors, or they lose their next election. In the end, that’s all politicians care about. It’s not you, it’s not the country, it’s not the economy. It’s only themselves, their title, their power, their money, their future. Politicians are the same as dysfunctional Hollywood actors- except uglier.
Here is the raw truth. There is no solution in sight. Democrats want to spend us into bankruptcy and insolvency. That’s pretty terrible. But Republicans want to do the same thing- only just a tad slower…and by spending it on different things. Democrats head for the cliff at 180 MPH…while Republicans head for it at 120 MPH. But either way…we’re going off the cliff.
Take Paul Ryan’s budget as an example. And I’m a fan of Congressman Ryan. He is the only one honest enough to put his spending plan on the table. He is the only one trying to cut spending. He is the best we’ve got in Congress. Yet all his plan does is cut the INCREASE in spending…it never cuts one dime off the actual spending. What good is cutting the increase, when we already owe over $100 trillion in debt and unfunded liabilities? Ryan’s plan adds another few trillion dollars to the debt over the next decade.
Think about that for a minute. Apply this situation to your life. You owe $100,000 to credit card companies, but you only make $50K per year. So you put a plan together to pay the debt down. Instead of spending the $60,000 you planned to spend next year, you cut your spending to $55,000. But you only make $50,000 a year. You’re still $5,000 over budget and under water. How can you make a dent in your $100,000 debt if you’re adding another $5000? That’s the best case scenario proposed by Congressman Ryan.
But wait it gets worse. Let’s say your wife demands you spend $75,000 of your $50,000 salary next year. She crazy, right? Literally nutty, looney, insane, off her rocker. That’s Obama and the Democrats, who spend all day screaming that Paul Ryan is cutting too much. The Obama crowd is literally hell bent on sending us to hell.
So both parties brought us to this breaking point together. One party (the GOP) has no courage, no backbone. The other party is dysfunctional, mentally ill, suicidal, and self-hating (the Democrats). Both will continue kicking the can down the road…and speed towards the cliff. They both have the same answer – more printing of fake money. That’s all they have in their bag of tricks. So get ready for QE 3, 4, 5 and so on. If you know how to read tea leaves, the future is so clear. The Federal Reserve will be asked to print money to infinity, to avoid a total collapse of our banking system and the end of our economy.
There is just no other choice in the minds of these crazy, cowardly politicians. They of course could cut spending dramatically. But they won’t. That option isn’t in their vocabulary. The pain would get them defeated…and remember, this is all about them.
People constantly ask me, “So what do we do?” You can turn their irresponsibility and insanity to your advantage. Your best revenge is buying the only asset that can’t be devalued by the printing presses- precious metals like gold and silver. If there is a silver lining in the economic crisis and collapse we are experiencing, it has to be precious metals and their ability to protect your assets and your purchasing power.
Gold is the answer to massive money printing. We are headed for very tough times. And gold will be your hedge against crisis, disaster, and economic suicide by governments all over the world. Because the world is led by Obamas.
The answer is The Golden Rule. In this Obama Great Depression, gold is the asset that matters. He with the gold…rules.