THE COMING "DEPRESSFLATION"...AND YOUR MONEY
You may recall that, in one of my recent columns, I coined the term "depressflation" to describe the inevitable result of the Democrats' plans to "rescue" the economy.
A "depressflation," I explained, would be like the "stagflation" of the 1970s, only worse: massive inflation, even hyper-inflation, together with Depression-like economic stagnation.
Why is this inevitable? Because with a bi-partisan consensus that deficits are vital in fighting the crisis (or easing the pain) there is no constraint on Obama and his party. The sky is the limit on spending, to the tune of a trillion-plus dollars over the next two years alone.
And there are only two ways to pay for it: (1) printing more money, which causes inflation, and (2) hiking taxes, which kills investment, businesses and jobs.
Then the question will be: When will we realize that government intervention is magnifying, not solving the problems that caused the crisis? When will the patience of the public with Obama's remedies run out?
My guess is that it won't be until 2012 -- or after.
In the meantime, however, there are ways to protect yourself and your family from the coming "depressflation."
It's crucial to understand: Hard times for America does not necessarily mean hard times for you. As a very wise investment expert of my acquaintance, Nicholas Vardy, likes to say, "No matter what the state of financial markets, there is always a strategy out there that can make you money."
Full disclosure: I receive a percentage of each subscription sold, but even if I didn't, I'd want you to know about this amazing service. Nicholas' advice is rock solid. If you check into it, you'll thank me later.
The key, Vardy explains, is to recognize opportunities wherever they may be and, more importantly, detach yourself from old investment themes that no longer work.
Vardy himself, an American based in London, is a master at crafting such cutting-edge investment strategies -- which he then passes on to subscribers to his Global Stock Investor investment newsletter.
So, for instance, back in mid-2007 Vardy was months ahead of the curve in spotting the coming boom in "soft" (agricultural) commodities -- recommending stocks like Canadian fertilizer giant Potash, which shot up quickly in price before coming back down to earth, by which time his subscribers had safely banked profits of 82% in just over three months time.
And that's nothing compared to the magic Vardy performed for his subscribers during these past few months, now on record as some of the worst in Wall Street history.
Consider this: Since October 2008, which wiped out close to $7 trillion in shareholder wealth, Vardy's Global Stock Investor portfolio's open positions are up as much as 18%.
Compared to the 16% decline in the Dow during the same time, that's incredible.
How does Nicholas Vardy do it? If I knew, I'd be in his business, not mine. But I'm sure those countless hours he spends sharing investment ideas with Europe's top money managers has something to do with it -- not to mention his graduate degrees from Stanford and Harvard.
Don't get me wrong: Nicholas Vardy is no elitist snob. Though he makes his "real" money managing money for a few wealthy clients, he also likes to "spread the wealth" -- not through higher taxes (sorry, Obama), but by helping people like you and me make profitable investments.
Let's face it, the next few years will be tough ones for America. But, to repeat, they don't have to be tough ones for you -- if you find and follow sound investment advice like the brilliant investment strategies in Nicholas Vardy's Global Stock Investor. I urge you to give it a try.
Click here to learn more.
http://www.globalstockinvestor.com/visitor.php?offer=358
Sincerely,
Dick Morris
P.S. Right now, for a limited time, you can get a full year of Nicholas Vardy's Global Stock Investor for about the cost of a mid-priced dinner for two. Of course, with all the great investment tips you'll be getting, you'll be able to afford lots of dinners -- high-priced ones at that. Click here to learn more.
http://www.globalstockinvestor.com/visitor.php?offer=358
Go to DickMorris.com to read all of Dick's columns!
Showing posts with label DICK MORRIS EILEEN MCGANN. Show all posts
Showing posts with label DICK MORRIS EILEEN MCGANN. Show all posts
Monday, March 16, 2009
Friday, October 24, 2008
Dick Morris: SOCIALISM, OBAMA-STYLE
SOCIALISM, OBAMA-STYLE
The perfect storm combining the vast expansion of government's role in the American economy, a looming Obama triumph and likely huge Democratic gains in Congress augur the most serious threat of the onset of socialism the United States has faced since the New Deal. But while it became obvious that FDR's goal was to save capitalism, not to replace it, it is by no means clear that Barack Obama is similarly inclined.
As alarm bells ring incessantly, demanding government action to prevent the conflagration of our most important companies and markets, the Federal Reserve and Treasury rush to extinguish the flames with hoses filled with money. But this massive and needed public-sector intrusion into private enterprise begs the key question: After the fires are put out, will the government firefighters leave, or will they move into the companies they saved and evict their former corporate owners?
The current crisis makes it clear that the government will be invited inside the management and ownership of our top financial and corporate institutions. But it is unclear whether it will ever withdraw after the crisis has passed.
Obama's stated goal of "spreading the wealth around" may indicate an inclination to embrace European-style socialist democracy. His emphasis on promoting "fairness" in income distribution and his willingness to sacrifice economic growth by raising taxes on "the rich" all seem to point in that direction. Will Obama realize that while government is needed to prevent a crash, it is hopelessly inadequate as an engine of prosperity? Bureaucrats are neither sufficiently competent nor honest nor independent enough to make key decisions about where capital should be invested, except when it is needed to extinguish the flames of crisis.
If Obama wins and takes a solidly and overwhelmingly Democratic Congress with him -- including a filibuster-proof Senate -- we will have to entrust our system of private ownership, limited government and free enterprise to the tender mercy of the left. But the newly empowered liberals will not have to breach the walls of the private sector, justifying each new intrusion by argument and logic. Rather, they will already be inside the gates, invited there to save these institutions from their own history of greed and mismanagement. Will the left simply leave government there, effectively converting our private enterprise system, where government absorbs about a third of our GDP into a social democracy, a la Europe, where the public sector accounts for almost half of the economy?
For those who would rather not find out, it is particularly important to redouble our efforts for John McCain and to battle for each Senate seat. McCain is only seven points behind -- not an insurmountable margin. A good final week could save the free enterprise system. We owe it to our future to try.
Go to DickMorris.com to read all of Dick's columns!
By DICK MORRIS & EILEEN MCGANN
The perfect storm combining the vast expansion of government's role in the American economy, a looming Obama triumph and likely huge Democratic gains in Congress augur the most serious threat of the onset of socialism the United States has faced since the New Deal. But while it became obvious that FDR's goal was to save capitalism, not to replace it, it is by no means clear that Barack Obama is similarly inclined.
As alarm bells ring incessantly, demanding government action to prevent the conflagration of our most important companies and markets, the Federal Reserve and Treasury rush to extinguish the flames with hoses filled with money. But this massive and needed public-sector intrusion into private enterprise begs the key question: After the fires are put out, will the government firefighters leave, or will they move into the companies they saved and evict their former corporate owners?
The current crisis makes it clear that the government will be invited inside the management and ownership of our top financial and corporate institutions. But it is unclear whether it will ever withdraw after the crisis has passed.
Obama's stated goal of "spreading the wealth around" may indicate an inclination to embrace European-style socialist democracy. His emphasis on promoting "fairness" in income distribution and his willingness to sacrifice economic growth by raising taxes on "the rich" all seem to point in that direction. Will Obama realize that while government is needed to prevent a crash, it is hopelessly inadequate as an engine of prosperity? Bureaucrats are neither sufficiently competent nor honest nor independent enough to make key decisions about where capital should be invested, except when it is needed to extinguish the flames of crisis.
If Obama wins and takes a solidly and overwhelmingly Democratic Congress with him -- including a filibuster-proof Senate -- we will have to entrust our system of private ownership, limited government and free enterprise to the tender mercy of the left. But the newly empowered liberals will not have to breach the walls of the private sector, justifying each new intrusion by argument and logic. Rather, they will already be inside the gates, invited there to save these institutions from their own history of greed and mismanagement. Will the left simply leave government there, effectively converting our private enterprise system, where government absorbs about a third of our GDP into a social democracy, a la Europe, where the public sector accounts for almost half of the economy?
For those who would rather not find out, it is particularly important to redouble our efforts for John McCain and to battle for each Senate seat. McCain is only seven points behind -- not an insurmountable margin. A good final week could save the free enterprise system. We owe it to our future to try.
Go to DickMorris.com to read all of Dick's columns!
By DICK MORRIS & EILEEN MCGANN
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