Financial Consequences of the 2012 Election

by Mary Holloway

The stock market voted Wednesday, and it was not a vote of confidence. The DOW was down 312.95, but the broader S&P 500 was down 33.86, breaking support levels as it plunged. Many investment gurus, such as Marc Fabre, author of “Gloom Boom and Doom” suggests that the way to protect one’s assets now is to “buy a machine gun…no you’re right…buy a tank.” Mr. Fabre was only half joking.

Obama does not like Wall Street or the bankers or Main Street or any residential street for that matter. The proof against him and his administration is staggering and overwhelming with the fraud and money laundering case that is now in federal court for the tune of $43 TRILLION dollars. It names nine of the largest banks in the world, Obama, various members of his administration, Fannie, and Freddie, also alleging mortgage repo fraud as well.

Add that to the mounting piles of evidence that is forthcoming in the Benghazi debacle with the murders of four Americans, and foreign press has the dots connected, the i’s dotted, and the t’s crossed that make an airtight case against Obama himself and others in his administration for running guns to al Qaeda, the Muslim Brotherhood, and other factions associated with them, all wishing to cause harm to Americans wherever they can be found. The amount of money passing from Saudi Arabia through back channels is staggering.

As QE3, better known as QE Infinity, continues as the Fed is buying $40 BILLION in mortgages a MONTH until at least the end of 2014 (with the presses running full steam printing the money for which to pay these purchases), all that is happening is the devaluing of the purchasing power of the American dollar at home, which is terrible news for those who are already so strapped for necessities. The price of food is up almost 30 percent in the last six months, and hyperinflation is ready to rear his ugly head unless the presses stop, and they will not, now that the Democrats still hold the White House and the Senate. Europe and Asia’s markets tanked based on the election results, as they know too, that a global financial crisis can now NOT be averted (if it ever could have been) and that there are going to be food riots in all countries, including the United States. The electrical grid is fragile, and with the storms forecast and those already hitting, billions of dollars in damage, millions in lost wages, and untold human misery and suffering, who or what can come to the assistance of those in their path? The insurance companies will run out of funds; the U.S. government has no funds to shore up the losses and seems to have lost its ability to borrow as frequently and as often from other countries as before Obama took office the first time.

The U.S. credit rating has already been downgraded once and is set to be downgraded again unless the deficit is addressed in a workable manner that kicks in immediately. This cannot happen, as the Senate Majority Leader, Harry Reid, has already promised to kill any Republican efforts coming out of the House. It has been four years now without a budget, and that is unlawful. We cannot allow these “Continuing Resolutions” to be stopgap measures in place of the lawful fiscal responsibility.

Many traders, hedge fund managers, investment advisors, and others with fiduciary responsibilities recommended an exit from equities prior to the election and moving to a position in hard net assets (precious metals and some of the currencies backed by them, such as the Swiss Franc). The metals were down for a while, but that can be written off to investors having to sell those to pay their margin calls on the plummeting equities they held.

New book reveals how to keep this “gangster” economy from murdering your money…

All signs indicate that we are in for a very rough next decade and a half…even more so than the Depression of the 1930s. It would behoove all of us to learn the arts of self-sufficiency again, no matter where we live. Plant a garden, even in pots, so that there will be something to feed your family. It is time to learn about growing herbs for cooking and for health tips, as medical care will be scarce and very expensive. If one lives in a city or town and has a yard, one can own two goats (they must have names to be counted as pets), but then they will provide a source of milk for the family. Learn the motto my grandmother taught me: “Use it up, wear it out; make do, or do without.”

The government is proceeding full speed ahead with the privatization of 401(k)s and IRAs and replacing them with GRAs (Guaranteed Retirement Accounts, which are simply annuities without a beneficiary). 401(k)s and IRAs have beneficiary designations. Argentina was the last country, about twelve years ago, to seize all private savings trying to stave off default, but it did not work. The citizens lost their savings and the country defaulted anyway. That is what I see for U.S.

To protect oneself from this confiscation, as restrictions are being passed constantly on how much one can “borrow” from one’s own 401(k) or IRA, I suggest strongly that if possible, redeem both, pay the penalty and the tax, and purchase non-perishables, a way to purify water, land in a remote area, and then invest in silver coins. (Personally, I like the Morgan silver dollars, as they are plentiful. There is no need to buy rare years.) Take physical delivery of your silver dollars, and do not put them in a safe deposit box in a bank, as when the economy collapses (and it is a matter of when, not it), the banks will be padlocked and no one can gain entry. Try not to keep all of your silver and some cash in one place, as one may not be at home when the chaos erupts. Have several plans and coordinate with your family on what to do if not together. Use a password so that children go with no one but you or someone you sent.

One last financial consequence of this election: Smith and Wesson stock was UP 10 percent Wednesday, which means more Americans are buying guns than ever before, and that is quite a feat. Also, ammo sales are through the roof. It is a clear way to protect one’s self and family and reserves from wandering bands of ne’er-do-wells who seek to take and do harm.

Stay calm. Do not listen to snake-oil salesmen who tell you the government is going to take your money and you need an annuity now. Beware all sorts of scams from paying to rescue your home from foreclosure to a private entity to signing any papers that have not been read thoroughly and understood. This is especially important if one decides to play the market with ETFs (exchange traded funds.) Many of the precious metals ETFs have fine print that allows the fund to force you to take cash for your position and any profits. This defeats the purpose of purchasing precious metals in any form. Staying calm and smart is crucial when times get tough.