Rathbun: No matter what changes, some things will remain the sameWritten by Gary Rathbun | | GaryRathbun@PrivateWealthConsultants.com
President Barack Obama has been declared the winner in the 2012 presidential election and I can’t help but think about what will change and what will remain the same. Even rereading that first statement I am prone to think about the term “winner.” I tend to think that the winner is irrelevant, since we the people are ultimately the losers.
Each presidential candidate spent roughly $1 billion on his campaign. If you count all of the campaigns for the Senate and House of Representatives, the total is more than $6 billion for this election. One has to ask, why? Why spend this amount of money unless there is a really big reward somewhere?
While the rewards include speaking fees after the final term, there must be a lot more during the interim. In a word, cronyism.
The dollar will continue to be devalued and inflation will start to become more evident, but a similar thing would have happened if Romney had been elected. Both men were promising more entitlements into the foreseeable future while we all know that there is no way to pay for them.
Both have praised Federal Reserve Chairman Ben Bernanke for his monetary policy, which is a direct endorsement of Keynesian economics. The dollar will see a significant devaluation during the next four years and very possibly a loss of world reserve status. These consequences will be the result of the Federal Reserve directly and President Obama will not get rid of this abomination, nor would have Romney.
In coordination with the above actions of the Federal Reserve, we will have continued high levels of government spending with borrowed money. Neither man, nor any politician for that matter, offered a practical solution to $16 trillion of current national debt. In fact, both have talked about increasing spending which will only deepen the recession that we never came out of in the first place.
Additionally, I can’t see any winding down on any of the conflicts we are involved in around the world. In fact, I can see our military men and women being sent to more places and being put in harm’s way for nothing but the appearance of the president carrying a big stick.
This will be justified by the increasing use of drones and laser technology that supposedly accomplish our “mission” without putting our troops in harm’s way.
Speaking of drones, more and more of these drones will be used to monitor our own people in this country thus erasing even more civil liberties. The Constitution is very quickly becoming an archaic document that will have very little meaning or power in the months and years ahead. It is very easy to be classified an extremist or even a terrorist these days, by writing a newspaper column for instance. Virtually anyone can be put under surveillance and/or detained.
One of the writers that I regularly read, Brandon Smith, said “I can guarantee with absolute certainty that the next president, regardless of who he happens to be, will promote an IMF (International Monetary Fund) rescue package coupling the dollar to the SDR (special drawing rights) and turning over full economic control of America to an international body.”
When President Obama is sworn in on Jan. 20 he will still be, definitely, part of the problem and not part of the solution.
So, after all of this cheery commentary, what is a person to do to survive and thrive in the coming months and years? Fortunately or unfortunately, depending on how you look at it, what is left of my column space this week is too short to answer. Next week we will look at the next steps to take to position yourself to not only survive but to take advantage of the carnage that is to come.
Stay tuned, I promise it will be worth the wait.
Gary L. Rathbun is the president and CEO of Private Wealth Consultants, LTD. He can be heard every day on 1370 WSPD at 4:06 p.m. on “After the Bell with Brian Wilson and the Afternoon Drive” and every Wednesday and Thursday evening at 6 throughout Northern Ohio on “Eye on Your Money.” He can be reached at (419) 842-0334 or email him at email@example.com.