Tags: Obama | Romney | gold | debt

Obama — The Golden President

Thursday, 01 Nov 2012 08:02 AM

By David Skarica

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I usually do not like to talk politics. As they say you never talk politics and religion, but being a Canadian with British ties who resides in the Bahamas, I view things as an unbiased outsider.

I recently wrote in the Gold Stock Adviser that I do not think it really matters who wins this election. Every tax dollar that is now collected goes directly to pay out benefits for Social Security, Medicare and Medicaid. In addition, we are now in the timeframe where more money is going out of the Social Security Trust Fund then is coming in. These are long-term issues that are going to bankrupt the country no matter who is elected. This, along with the Federal Reserve printing endless amounts of money, is going to cause the dollar to tank longer term and gold to soar. The United States is an empire in decline much like Rome or Britain.

I do not believe either candidate has a serious plan to deal with the deficit and debt problem, which will continue to see $1 trillion deficits as far as the eye can see. However, I think President Barack Obama is much less serious than GOP presidential nominee Mitt Romney is. He will help give the debt crisis a push. Obama will be a second-term, lame-duck president. He will not be interested in cutting spending unless his back is against the wall, and interest rates will have to spike like they did in Italy or Spain for him to want to deal with the problem.

Editor's Note: Get David Skarica's Gold Stock Adviser — Click Here Now!

The spin is that Obama inherited a mess — the worst financial crisis since the Great Depression. This is true; however, his solutions were just as big of a mess. The $700 boondoggle of a stimulus helped top-line economic numbers, as government spending is factored into gross domestic product growth. But the money mostly went to Democratic donors, union consortiums and expansion of welfare spending, which has grown by 32 percent in four years under his leadership. The United States has 30-year lows in labor participation (63.5 percent vs. over 66 percent in early 2009), an underemployment rate of 16 percent, 47 million people on food stamps and has seen the number of people on disability double from 5.5 million to 11 million. What has happened is instead of dealing of the real problems, which are debt and deficits, is the administration is keeping the economy on life support when it needs to take its medicine.

Growing up in Canada, I have always stated that Obama reminds me of the U.S. version of Pierre Trudeau, a popular charismatic leader who married a Rolling Stones groupie. He was well-liked, he introduced socialized medicine. However, he turned the country into a fiscal basket case. The Canadian dollar fell 30 percent against the U.S. dollar, and he plunged the country into a debt crisis that took 15 years to get out of (ironically it was solved by a former Trudeau Cabinet Minister Jean Cretien).

The United States is on its way to financial bankruptcy, and Obama will just quicken the pace.

However, if Obama wins next week, us gold investors should rejoice. Gold has already nearly doubled in four years under his administration and it will surely climb much, much higher if he is re-elected for another four.

Editor's Note:
Get David Skarica's Gold Stock Adviser — Click Here Now!

About the Author: David Skarica
David Skarica is a member of the Moneynews Financial Brain Trust. Click Here to read more of his articles. He also writes the Gold Stock Adviser. Discover more by Clicking Here Now.

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