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MARKET UNDER OBAMA SHOWS SYMPTOMS OF SICKNESS: EXPERTS: Obama Re-election Might be Fatal to Dollar, Economy


The morning after President Barack Obama's re-election, stocks plunged more than 351 points, far below 13,000 to 12,876.60, the market's biggest one-day point drop in a year.

“This is one more symptom of a sickening economy under President Obama,” says monetary expert Craig R. Smith, whose just-published latest book is The Great Debasement: The 100-Year Dying of the Dollar and How to Get America's Money Back.

“Since Mr. Obama's inauguration in January 2009, the price of gold rose 91 percent and of silver 165 percent, symptoms of investors being worried about the future of stocks and the value of the dollar. The Dollar Index has fallen by almost 5 percent, from 85.47 in January 2009 to 80.77 today,” says Smith.

“The Dow Jones Industrial Average was up by 61 percent on election day this week,” says Smith, “but under President Obama our upside-down stock market has gone up on bad news and down on good news. Market speculators now buy on whatever will prompt the Federal Reserve to conjure more stimulus billions out of thin air.”

“Our National Debt soared from $10.62 Trillion to $16.21 Trillion during President Obama's first term, as he doled out more than $5.5 Trillion in stimulus money.

Unemployment was 7.6 percent when Mr. Obama took office in 2009, but rose to above 8 percent for the next 43 months while 23 million Americans remained unable to find full-time work. Even these chilling numbers were controversial because of changes in how unemployment was calculated.

“If the same percentage of adults were in the workforce as when Barack Obama took office, the unemployment rate would be 11.1 percent,” the Washington Post reported in May 2012.

If the Job Participation Rate – which plummeted from 65.8 percent to below 63.6 percent (the lowest percent of the population working since December 1981) during Obama's first term – “was where it was when George W. Bush took office,” the Washington Post reported, “the unemployment rate would be 13.1 percent.”

Weeks before the November 6 election, the Bureau of Labor Statistics under President Obama's Executive Branch shocked experts by announcing that the unemployment rate had suddenly plunged from 8.1 to 7.8 percent, the biggest one-month drop in 29 years, dating back to when the economy was growing robustly at 5 percent under President Ronald Reagan.

Under President Obama, standards were adjusted so that a person working one day per month counted as employed, but those who stopped looking for work for four weeks ceased to be counted as unemployed.

Mr. Obama's presidency began with the biggest Gross Domestic Product (GDP) drop in 27 years, and during his first four years growth fell from 3.8 percent to an anemic 1.3 percent in the second Quarter of 2012 and at most 2 percent today,” says Smith, a prominent business executive frequently interviewed by Fox's Neil Cavuto and other major business programs.

“If we factored a real inflation rate of around 7 percent, our real growth rate is closer to minus 5 percent, meaning that we have been in recession for the past four years.”

“Our sick economy is not recovering,” says Smith. “The stimulus not only failed, it made things worse. Fearful of the tidal wave of future inflation this flood of paper money will soon cause, business people cut back on investment and hiring, according to an economic analysis at the St. Louis Federal Reserve Bank we discuss in our book The Great Debasement.

“The rise in gold, silver and stimulus spending under President Obama are like antibodies in a sick economy,” says Smith's co-author Lowell Ponte, a former think tank futurist and former science editor at Reader's Digest.

“They reflect how weak the economy has become, and are symptoms of how afraid investors are,” says Ponte.

“President Obama's re-election will make our economy even sicker,” predicts Ponte.

“Mr. Obama has said he will push America off January's 'fiscal cliff' into a new Great Recession if Congress refuses to impose crushing new taxes on businesses and their owners, who already pay the heaviest business tax rate of all advanced nations.”

“The whole nation is being held for ransom, threatened with trillions in higher taxes if President Obama does not get his way,” says Ponte.

“And going off the January 2013 'fiscal cliff' would also downgrade America's global credit at a time when 40 cents of every dollar President Obama spends is money borrowed from the People's Republic of China and elsewhere.” says Ponte. “If interest rates increase for such borrowing, this could quickly break America's financial back.”

“Yet President Obama has expanded the welfare state so much, and promised trillions more to special interests to win re-election,” says Ponte, “that America's rate of borrowing could soon exceed the $58,000 every second that government borrowing reached during his first term as President.”

In their new book The Great Debasement, Smith and Ponte warned that with 49.1 percent of American households now receiving a government benefit, the 2012 election would be a tipping point in American history that could turn America permanently into a European-style welfare state.

Many Progressives no longer believe in God, they wrote, but “have you ever met a Progressive who did not believe that the government is Santa Claus with a bottomless bag of free goodies?” (TGB page 260)

For the past four years, they say, the U.S. economy has been weakened by 25 percent by what they call “donkey drag,” rule by an ideological President and his party eager to impose heavier taxes and regulations on business.

“This 'donkey drag' will continue to hamper jobs for the next four years, and will drive trillions of investment dollars to the 17 other nations recently rated by the Cato Institute as having more economic freedom than today's United States,” says Ponte.

“Our nation once prospered from skilled people coming here to seek freedom,” says Ponte. “But now as Lady Liberty's torch of economic freedom grows dimmer, our economy grows sicker, and our dollar weakens under President Obama's anti-business policies, the best and the brightest will be moving their talents and investments to countries with more opportunity.”

You or your listeners may get an advance free digital copy of The Great Debasement by calling: Lori Fahringer or Beth Demoura of Special Guests, Inc. at: 630-848-0750.

“The Face of American Small Business”

Craig R. Smith is an author, commentator and popular media guest because he instantly engages audiences with his common-sense analyses of local, national and global trends. The Founder and Chairman of Swiss America Trading Corporation, Craig for 30 years has helped many thousands of people hedge against the problems of a weakening U.S. Dollar. A monetary expert, Craig is the author of numerous books and articles including The Inflation Deception: Six Ways Government Tricks Us...and Seven Ways to Stop It! (June 2011), and Crashing The Dollar: How to Survive a Global Currency Collapse (2010). Craig is also author of The Uses of Inflation: Monetary Policy and Governance in the 21st Century, a White Paper (Feb. 2011). Media clips: www.craigsmith.com


Lowell Ponte (PON-tee) is a former think tank futurist and was an editor Reader's Digest Magazine for many years during its heyday when it was one of the most widely read publications in the world. Lowell is co-author with of The Inflation Deception: 6 Ways Government Tricks Us… and 7 Ways to Stop It! (2011), and Crashing The Dollar: How to Survive a Global Currency Collapse (2010). Ponte’s articles have appeared in The Wall Street Journal, The New York Times, and many other publications. He is currently a columnist at Newsmax.com. Lowell has been a guest on "The Today Show," "Good Morning America," "David Letterman" and other programs. Lowell has also been an aide in the California legislature, a reporter in Washington, D.C., a foreign correspondent reporting from 33 countries, co-partner in a successful Hollywood public relations firm, and a radio talk show host.

About the Book…

THE GREAT DEBASEMENT: The 100-year Dying of the Dollar and How to Get America’s Money Back
“The greatest confiscation of wealth in human history.”

This is how business executive Craig R. Smith and futurist Lowell Ponte describe “The Great Debasement,” a manipulation of the U.S. Dollar that they calculate has since 1913 expropriated more than $222 Trillion from the American people.

Because of this deliberate century-long policy of debasing America's money, today's dollar has only 2 pennies of the purchasing power of the 1913 dollar.

The 2012 election and 2013 “Fiscal Cliff” of massive tax increases are ominous echoes of what happened exactly 100 years ago, warn Smith and Ponte.

The strange 1912 election turned America's government over to Progressives, who in 1913 imposed the Federal Reserve System and the income tax.

The 2012 election and 2013 Fiscal Cliff,” they say, could make Progressive rule permanent by turning a majority of voters into government dependents. America's central bank, the Fed, and income tax gave politicians almost-unlimited power to borrow, spend and expand government. The Federal Reserve was explicitly designed to turn the dollar into an “elastic” currency. The income tax forced Americans to accept and use this new ever-more-debased fiat monopoly money to pay their taxes. The 100th Anniversary of this Debasement brings America to a tipping point.

We are becoming “a 50-50 nation – half of us paying the taxes, the other half receiving the benefits,” warns Harvard economic historian Niall Ferguson.

Today 49.1 percent of households have at least one family member who gets a government benefit. More than 47 percent of adult Americans pay no income tax. Many dependents see government as a free goody-dispensing machine.

“When the people find that they can vote themselves money, that will herald the end of the republic,” warned Benjamin Franklin at America's birth.

If Progressives win even one branch of government in the 2012 elections, their vision of ever-expanding government could become permanent by creating a voting majority of those dependent on, and addicted to, government money.

The Great Debasement created today's upside-down, Alice-in-Wonderland economy in which the stock market goes up on bad news and down on good-- because major investors want whatever causes the Federal Reserve to conjure trillions more Quantitative Easing (QE) stimulus dollars out of thin air.

Modern Monetary Theory and neo-Keynesianism behind Fed and Federal policies teach that borrowing another $58,000 every second to fund 40 percent of Federal spending is good, but that people saving their money is bad. These theories teach that the dollar losing value (inflation) is good, but that the dollar gaining value (deflation) is bad. They teach that government should tax ever-more money away from productive business people to redistribute to the unsuccessful, whose faster spending supposedly accelerates economic growth.

After 100 years of the Progressive Great Debasement, paying off America's debts would require a stack of dollar bills stretching from Earth to beyond the planet Mars, 35.8 million miles away. Such astronomical debt is unsustainable. So many Americans are now unemployed or in poverty that today's Food Stamp recipients could produce a Progressive Depression soup line at least 17,564 miles long. Government checks conceal the Great Debasement's devastation.

This book offers vivid, dramatic examples of how today's increasingly-fragile economy could be shattered by a wide range of shocks – a new Middle East war, fuel shortages, high-tech terrorism, prolonged drought, collapse of the Euro, replacement of the weakening dollar as the world's Reserve Currency, or a continuing leftward shift in American politics that dries up investment and jobs in our formerly business-friendly nation.

The Great Debasement reveals how the dollar is already a dematerializing “ghost currency” as America follows the excessive spending-and-debt policies that undermined past empires. It shows how both prudent individual choices and restoration of the U.S. Constitution's standard for sound money could redirect our future away from a potential new Dark Age and toward a prosperous new Golden Age.

©2012 Special Guests, Inc.

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