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We all remember the Bush-Gore Election
finale when the hanging chads debacle decided the presidential election in
Florida and the courts. If you thought that was fun, watch what we get next.
On this date, prior to America picking her next president, in polls too close
to call, we can see several scary and ominous events that might happen
between now and the end of January, 2013. Normally, the election season would
be predictable with an October Surprise; some concocted media event
manufactured to hype the strength or weakness of one political party or the
other. In our current situation, this time it is indeed different.
Instead of silly shredded cardboard
political fights, this time we could be hanging by our very fiscal necks and
strung out over a very dangerous cliff…in just 90 days or less!
“The Chad was
made famous in the highly contentious 2000 United States presidential
election> where many of Florida votes used Votomatic
style punched card ballots. Incompletely-punched holes resulted in a
partially punched chad, where one or more corners were still attached, a
hanging chad, dimpled chad or pregnant chad - where all corners were still
attached, but an indentation appears to have been made. These votes were not
counted by the tabulating machines.” – Wikipedia
Seven things make it very different this
time: (1) the USA is in a major
unacknowledged depression; (2) the entire Middle East is unraveling in
violence, chaos and revolution; simultaneously, (3) global bond markets are
on the verge of collapse in a destruction of worldwide credit, (4) the
American president and his administration have taken unusual (some would say
unlawful) control of the USA courts and legislative system, lending and
borrowing beyond the scope of reason, (5) an American electorate is on the
verge of economic disaster with joblessness at 25% and growing worse, (6)
states within the union are voting themselves sovereign status enabling them
to move on politically in the face of an American dissolution and (7) the
central bankers, market manipulators, market controllers and crooked
politicians jockey for control while destroying their opponents.
This is not your average garden-variety
election, nor is it your run-of-the-mill recession the media talking heads
would have you believe.
Right now, calmer, cooler heads are
severely warning: this election is so important that the very existence
and continuation of the American Republic and U.S. Constitution/Bill of
Rights is at stake!
While we are often accused of being too
pessimistic, we’d rather prefer to be called realists. A realist sees
the facts, reads the actions of others concerned and comes to a logical
conclusion.
“Realism is a philosophy of mind
rooted in the "common sense" philosophy of perception.
Hyper-realism or Hyperreality, on the other hand,
doubts the inability of consciousness to distinguish reality from
fantasy.” -Wikipedia
We have written before about narcissism
and psychopathic tendencies of power-hungry politicians and bankers. This is
where we see all the hyperrealism or hyperreality
as defined above.
We are certainly not professional
doctors of the mind, but if you watch these people long enough, you too will
get the drift of their behavior and how it alters the social fabric of
nations who are intertwined with market results, economics and politics.
Those who engage in this activity always
have an agenda and their agenda is not yours or ours. We watched the
USA presidential debates and find it sadly amusing how the politicians can
make speeches and platitudes obviously loaded with lies. They obviously
figure that the majority of the herd (the Sheeple)
will believe them if this stuff is spouted long enough and loudly enough.
What is really comes down to is this: (1) the more
than 50% of Americans receiving some kind of government check for something
prefer to vote for the candidate that will continue to hand out the goodies.
They could care less who pays for it or whether
state and national budgets are balanced…ever, (2) many of these
“voters” don’t even care who dies in a war as long
“their” side is the winner and retains the ultimate power. Desire
is for bread and entertainment today. Who cares about tomorrow?
Capital markets are being destroyed by
Federal Reserve monetary policy as they continue to print, write, and
digitize bonds, bills and notes with the speed of light. This
“Manufactured Money” is a centuries-old-story being repeated once
again.
As we’ve written before, the
average length of life, the very time span or cycle of a nation has been
proven in history to be approximately 250 years. Since the USA was born in
1776 this says we have about 14 years of life remaining for America. The way
things are going we don’t doubt it.
While current economic and social
signals bear this out, we prefer to think our nation can continue onward, but
perhaps in some kind of new format with some semblance of life, liberty and
the pursuit of happiness intact.
In putting together this puzzle, the
very ingredients of the major players, our nation’s social fabric, the
government, the military and monstrous population of weapons in America, we
suspect the inevitable “Giant Confrontation” would be one
of a fractured nation composed of several nation-states within the former United
States. Perhaps now we are being too optimistic but we believe in the
American people and think the right side would regain control and right the
ship once again.
Our greatest fear (and the fears of many
Europeans who have been through all this stuff in current and former
communist countries) is that we sink into Euro-Skeptic Morass; a kind of
giant socialistic/communist social prison that resembles the former East
Germany, that will last for years.
So what’s in front of us for the
next 2-3 months?
We are expecting an “October
Surprise” manufactured by the current administration to smear the
opposition. This could take many forms, each designed to take down opponents
or create a mess requiring a “Wag The Dog” event. Such an
event would mirror the current news action from Iran. Claims are being made
that a deal was put together in secret between Iran and the administration to
make a hero of the president to enhance his reelection. The White House
denied any such deal or cooperation with Iran on Sunday, 10-21-12 on Fox
News.
Further ‘Wag The Dog Action’
would be to provoke a violent engagement
wit Iran and call a national emergency followed by
an executive order being issued to delay the national elections. Hey,
if you figure you are going to lose with the voters, how about this cute
little event to stay in power indefinitely?
Events in Libya the past few weeks have
the congress boiling and out for political blood. In an election season,
these things may seem concocted but the facts speak for themselves.
Would a presidential impeachment be next
on the table? After all, consider how Nixon resigned because of lying about a
simple break-in burglary. In the Libyan instance, people were killed through
apparent negligence (or some would say by design). This is serious
stuff.
Obama is under tremendous pressure right
now. This will escalate through the election season. While he appears to be
in excellent health for his age, stress, opposition party attacks, and
outside global financial/war failures and other serious allegations will take
their toll. We have said it before and so have other analyst friends of ours:
he might crack under the pressures and suffer a nervous breakdown.
Watch for him to age before your very eyes in the next 3- 6 months. We would
not wish this stuff on anyone.
What about the USA credit downgrades a
rating agency threatened last week? A downgrade can increase the interest
rates based upon risk. If we get nailed with higher interest being paid on
pure risk dimensions this could smash the bond markets we’ve been
harping about for years. A one-point increase in yield could dump over the
money truck.
In the streets of the Middle East,
people fight when they have nothing left. This problem is spreading all over
Europe with the worst underway in Southern Europe. If you think this
can’t land on France, the UK and other bigger fish, you are kidding
yourself. Mr. Hollande in France with his new
communist taxes and seizures is quickly shoving his country along toward
their Fiscal Cliff.
If Obama loses the election, the word on
the streets is that folks go to major rioting.
Watch out for massive voter fraud.
Additionally, now we get news of United Nations observers coming to watch the
USA elections. They have no authority or business in state elections. If they
show up to interfere, state governors should have them arrested and deported
under the law. The United Nations is at the core of a global one world
government and currency.
Another major worry, announced on Fox
News this week, is the plan for a series of very nasty executive orders or
lame duck congressional bills passing after the election and before January
1, 2013. Some of those proposed, would be a new UN tax on all worldwide financial
transactions, UN global gun control laws, and, new UN taxes on the internet!
Maybe the president is elected and
cannot finish out his term due to scandal, impeachment, further economic
wreckage, or the inability to produce a budget, which would finally shove
America over the Fiscal Cliff.
Many are not taking this Fiscal Cliff
thing seriously. We are because we have been studying the potential for wide
spread damage. THE CLIFF could smash GDP from +1.5% (exaggerated) to a
negative -2 or -3% (reality). This would ruin 2 million jobs, shove the
nation into further depression, wreck the national tax structure (cause falling collections to pay bills) and further impose
more downgrades on national debt rating.
Supposedly there are some key senators
from both parties meeting in secret to find a Fiscal Cliff solution.
This may be true. But why should we expect any reasonable outcome in the
middle of the contentious elections, lack of a national budget for three
years, and the proven inability for both parties to get along and compromise
in any positive way to find solutions to numerous USA problems?
At best we think they would impose
higher taxes on those incomes above $250,000 and say those beneath would see
no increase. Believe that and you’ll believe anything.
Another option would be to extend the
Bush tax cuts for one year with a new president giving the politician’s
time to find a compromise. Good luck on that one.
It is our firm expectation that the next
2-3 years could be the worst socially, politically and economically in the
entire history of America.
We are hoping for the best and planning
for the worst. It is too late for any president or administration to resolve
the crushing debts issues. We are past the point of no return. Watch Europe
as those countries unravel one by one. Watch what happens to the innocent
citizens caught in the snares of central bankers and thieving politicians.
This is what is coming to Asia and the West. For 2013, we see food increasing
+50% and utilities at least +15% or more.
Stuff that works:
Understand your market and educate
yourself to do a few things right. You do not need 50 stocks and 40 others to
make money. Some of the best of the best do only one thing. Look where you
would be right now if you had piled into physical gold and silver in the year
2000.
While all eyes are on Europe’s
destruction, the USA’s test comes November 6th. Market adventures might
even arrive sooner if the broader stock markets slide out of control during
this week of October 22-26. Last Friday was down signal.
Meanwhile, we suggest you gravitate
toward physical gold and silver and only the best-of-the-best of related
stocks supporting that view. In our work, we are busy looking for options and
selling ideas for the broader stock markets heading toward the dustbin of
destruction.
Last week we recommended two new ones in
Trader Tracks Newsletter. We see more coming in this new seasonal
beginning.
The Greater Depression Repression II
is swiftly taking hold now and layoffs will be legendary. Housing has an
additional -20% drop from the current USA national average. Joblessness goes
to 30%-35% and food stamps reach over 50 million to 60 million. We will get a
2013-2014 World War in the Middle East and when Obama is reelected, inflation
goes to hyperinflation. Not happy stuff but it’s not the end of the
world either.
Somebody please tell us when the global
bond markets crash for good and we’ll tell you when this can all get
better and we can start all over again, maybe with a partially backed fiat
gold currency.
Roger Wiegand
www.webeatthestreet.com
Contact Claudio Bassi, at Trader Track’s New York City publishing
offices for a trial subscription. Call
718-457-1426 Monday through Friday, 9:30am to 5pm or,
e-mail cbassi@miningstocks.com
Recommendations made in “Trader Tracks”
are exclusively those of Roger Wiegand and the
publication is also exclusively the editorial content provided by Roger Wiegand. TAYLOR HARD MONEY ADVISORS, INC. (THMA)
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any particular reader or subscriber. Opinions expressed in Trader Tracks are
statements of judgment expressed at the date and time they were written, and
as such, are subject to change without notice. Roger Wiegand
is not a CFA nor an investment advisor, but a private individual who studies
the markets extensively and offers summary opinions. Before any type of
investment is made, you should always seek advice from your attorney, CPA,
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