Why Our Founding Fathers are Rolling Over in Their Graves Right Now …

Martin D. Weiss, Ph.D. and Larry Edelson

In a moment I’ll get to the markets and the latest developments in Europe and my take on them. But first, I would like to express my disappointment with the Supreme Court’s decision on ObamaCare.

Don’t get me wrong. Every American should be entitled to world-class healthcare at an affordable price. But I’m no expert, so I don’t have the answer as to what the solution would be to get there.

But I do know this …

Forcing Americans to buy healthcare or else face a penalty under the guise that mandatory care is some sort of tax that Congress has full power to levy is just plain wrong. So is penalizing people if they decide not to buy health insurance.

For one thing, the Supreme Court should not be regulating commerce to such an extent. Indeed, I find it ironic that while Congress and the Supreme Court are meddling in commerce and free trade, our leaders in Washington are promoting free trade all over the world.

For another, our founding fathers were against all forms of direct taxation. I’m sure they would be rolling over in their graves if they understood how both houses of Congress, and now the Supreme Court, are effectively mandating healthcare coverage with the logic that it’s a tax, which Congress has full power to levy.

And for yet a third, a dangerous new precedent has been set.

Suppose, for example, down the road that Congress decides everyone must own a hybrid car to reduce carbon emissions. Would the Supreme Court then rule that it’s in the “best interest of the country” … and that it’s really a form of “tax” to pay to preserve the environment … ergo, it’s perfectly legal?

I sure hope not.

Again, I’m not an expert in healthcare. But I don’t think ObamaCare is going to fix much, and I think the potential damage done by the Supreme Court’s decision could come back to haunt us.

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The global energy map is being withdrawn – away from the unstable Middle East and to the West. Away from the tough and expensive oil extractions to “unconventionals” like shale oil and oil sands.

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Now, as to Europe’s financial troubles, don’t get caught up in the talk that Europe’s leaders are fixing the massive problem. They are not.

Talk of Eurobonds is conditional upon member countries balancing their budgets, which is not likely to happen. It’s also conditional upon member countries effectively giving up their sovereignty, which is also not likely to happen.

While Europe might be able to buy some time, the European sovereign-debt crisis will not die off until the entire euro region comes crumbling down and the euro breaks up — either via Greece, Spain and/or Italy withdrawing, or perhaps Germany taking the lead and calling it quits on the euro down the road.

Either way, I see more trouble ahead for Europe — a lot more.

And that brings me directly to the markets: They are not in good shape.

Gold is threatening to break critical support at the $1,544 to $1,546 level. It remains under pressure due to fear and panic by investors who want almost nothing but cold, hard cash these days and who don’t want to take much market risk at all.

If gold breaks that $1,544 level, look for gold to plunge much lower.

Ditto for silver, which is on the verge of cratering through the $26 level. If that happens, take it as a leading indicator that both the European Union and the United Sates are plunging deeper into a depression.

I say “depression” and not recession because that’s what it is. Most of Europe is definitely in a depression, with unemployment rates that exceed those seen during the 1930s Great Depression.

Here in the United States, we just don’t know it yet. But all the available evidence that I study tells me that the U.S. economy, when measured in terms of honest money, gold, is already in a depression.

Bottom line: Most asset markets will remain under pressure from …

First, fear and panic that Western economies are melting down, leading to “risk-off” trades and a flight of capital into cold, hard cash.

Second, fear and panic that Western leadership is also heading down the wrong path, mandating and taxing things that really belong in the private sector, and in which the government should not be involved.

Third, fear and panic that there’s almost nowhere to hide your wealth these days, unless you can find another planet to put your money.

And more. I don’t like it one bit at all. But that’s the reality we face now, and will be facing for years to come.

When will it all end? When will there be a better day?

Not for a while. And not until the U.S. wakes up and smells the coffee and realizes it will not be immune to a sovereign-debt crisis and that our leaders are also embarking down the wrong path, trying to socially engineer a solution through tax-and-spend measures, through class warfare, and more.

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The Wall Street Journal says, “The U.S. is at the forefront.” A brand-new U.S. royalty trust is quietly amassing hundreds of well sites in the oil-rich sands of Oklahoma.

Savvy investors will tap into 50% or more profit on those wells. Although underreported, this trust is already yielding 16.4% for its unit holders. More to come.

Details here.

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Savvy investors will tap into 50% or more profit on those wells. Although underreported, this trust is already yielding 16.4% for its unit holders. More to come.

Details here.

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There is a light at the end of the tunnel; however, it’s a few years off. In the meantime, I maintain my views …

1. Keep most of your liquid funds in cash, ready to be deployed on a moment’s notice, but as safe as can be right now. The best way: A short-term Treasury-only fund in the U.S., or equivalent.

2. Hold on to all long-term gold holdings. You do not want to let go of those. Short term, gold is heading lower. Long term, it’s heading to well over $5,000 an ounce.

3. Consider prudent speculative positions to grow your wealth. Like those I have recommended in my Real Wealth Report, which are doing great right now as silver falls, as the euro struggles, and more.

Most importantly, question everything Washington tells you. Only by doing that will you ever come away with an objective view of what’s really going on in our country. Ditto for Europe and its leaders.

Stay tuned and best wishes,

Larry

P.S. My Real Wealth Report subscribers are gearing up for our next online Market Update and Strategy Briefing, which takes place tomorrow, Tuesday, July 3. In this special online presentation, we’ll be looking closely at the markets, what’s coming next and the strategies that make sense right here and now. But you have to be a member to be able to view this exclusive briefing — so click here to start your risk-free Real Wealth Report trial today!

Your thoughts on “Why Our Founding Fathers are Rolling Over in Their Graves Right Now …”

  1. larrry, i think this will b elike last year where ur direction will be right but ur forecasts r too deep of pullbacks. silver will not see 20 by end of july like u posted a week or two ago. i cant see it losing 35% in 3 weeks. and dow will not see low 1k maybe a retest of 12,1

  2. Our founding fathers would be turning in their graves because someone can rake in the cash by producing nothing of any value, but by simply churning people’s accounts by scaring them with lines on charts that are completely manipulated by our criminal governments.

  3. I find few of any age that can give me the accurate definition of ‘socialism’. As a graudate in P:Olitical Science at the U of Cal, 1951, I was taught (but few are evidently) that socialism was defined as the ‘contgrol of the means of production by the government.” Professor Robert Lipsky dres a straight line on the board, labeled the right as fascist and the left end as Marxist. Then he drew a horshoe and told us that the extremist of each produce the same effect; dictatorship….as amply shown by Hitler, Stalin and Mao. In our USA today, Obamaination has amply demonstrated that the thought is implanted in those now governing. The auto compaines went broke. Chapter 11 was replace by an infusion of trillions of taxpayer dollars with the government ordering green cars to be built. Volt costs us $250,000 @ but who is buying? There was no market research, simply a product decreed by socialist, eco-weenies to implant a political philosophy vice dictated by market studies to show a public desire. Ignored was the fact that red blooded Americans are not going to stop every 60 miles to charge their damned cars. November is our last opportunity to save our Republic. We must throw out the Marxists and return to our Constitutional Republic forged by our forefathers with God’s help!! LKW

  4. Larry, Usually I love what you write however this time as you talk about healthcare I can’t accept your comment especially as you offer no other solution. Yes, people deserve to be “taxed” if they don’t buy insurance because many people will put it off until they are sick ! This is known as adverse risk in insurance and it because people don’t want to spend money until they need too. People with conditions of course are not in that group because they already need help and know it, miserably those people have the most difficulty getting insurance because as a business without laws against it, insurance companies don’t want those people for obvious reasons. The only way insurance works is when everyone has it. If regulation is needed GREAT – the US is pathetic in terms of mortality rate and health care success – and all this is at a cost of hugely more cost than every other country in the world. It is a travesty and misery that the US has 50 million without insurance and millions who keep jobs they hate because they need their insurance.

    Larry, perhaps you personal situation is too good to see this problem for what it is.

  5. Larry is right on. Has been all along. It was all the other fools that fell for the LTRO trick.
    I am holding cash until Larry gives me the green light.

  6. Great article Larry. One other consideration that I don’t believe politicians are paying attention to – the health care bill has numerous aspects that include the funding of abortion. Since money is fungible, all of us will be paying for abortion. Like it or not, agree or not, there are many people who simply will not compromise on this aspect of the health bill, and therefore will be forced to become law breakers.

    As to the more obvious financial side, we cannot add another money losing program on this massive scale to an already bankrupt country.

    Regards

  7. Dumb Republicans. Founding Fathers were Intellectuals who believes in Science.

    Congressional Mandates Go Back over 200 Years

    Although it is almost 3 months old now, an article by a Harvard Law professor, Einer Elhauge, about early congressional mandates may be of interest to people who missed it. In 1790, the first Congress mandated that ship owners buy medical insurance for their seamen. (The idea was revived by Richard Nixon in the form of a general employer mandate to provide health insurance for employees, but it didn’t pass.) Then in 1792, Congress, with 17 framers of the Constitution as members, passed a mandate requiring that all able-bodied men buy a gun. President Washington signed the bill. In 1798, Congress realized that its 1790 employer mandate didn’t cover hospital stays, so it mandated that individual seamen buy their own hospital insurance. The bill was signed by President John Adams.

    If Congress can order seamen to buy hospital insurance, can it not order teachers or short-order cooks or undertakers to do so? Arguments that the framers of the Constitution were against individual mandates is clearly untrue: some of them actually voted for one or more and specifically for a health insurance mandate. Furthermore, Presidents Washington and Adams signed bills with mandates that they could have vetoed. It is surprising that although independent authorities have verified Elhauge’s story, it has gotten so little publicity although it was mentioned on the Smithsonian Institution’s Website last week.

  8. Australia has a medicare national health system implemented in 1973 that ensures all people can receive the highest level of world class health services. It has been very successful and supported by both sides of politics. Australia also has little sovereign debt with a AAA+ credit rating. The economy is growing and the 13th largest in the world. Most Australians are financially well off and you don’t start to pay tax until your income reaches $18,000 pa. With an unemployment rate of 5% the country requires tens of thousands of people from overseas to help cover the jobs on on offer. Australia is a wealthy country and its citizens work to help each other and remember the lifestyle is second to none. We work harder and smarter and party well.

  9. Obamacare is a disaster. It is filled with government conditions and tax increases within the bill. Most of you who comment on it have not even looked at it.

    Thankfully it will be repealed and replaced after the election. So will Obama before he can do any more damage

  10. We MUST think at the level or ouf Founding Fathers. We were warned agaisnt the crime of small thinking; that was done specifically by Cotton Mather. Early Americans, meaning, those living in the 1600s do have a message.. use that or die.. it is that important.
    America, from the beginning, strove to creat its own, independent economic system and did produce financial giants, such as George Washington and Alexander Hamilton. They created The National Bank of the United States. Hamilton was killed by a British agent. A traitor, Andrtew Jackson, close that bank. It was rep[ened by Abraham Lincon, under the name The Second National Bank of the United States.. another killing.. so, that is our struggle.. to this day.. and we are mortally threatened.. Bertrand Russell threatened us to use the atomic bomb as “an instrument of terror against all governements..” etc.. wake up America – it is us or they..

  11. If you’re going to criticize this govt takeover of healthcare you should,at least,suggest some alternatives.If you can’t come up with any,don’t criticize.I have some.1)If govt is involved in healthcare,it should only be to provide catastrophic care,2)Encourage everyone to have high deductible insurance,so the patient is paying the first $5K or more of each yearly healthcare expense,3)doctors and hospitals shouldn’t let people use their services,not pay and then pass the cost on to others.If you don’t want to provide free care,don’t do it.Charge these people in labor.Let them mow you lawn,clean rooms,answer phones or whatever they can do to pay for services rendered.This welfare mentality is nonsense.4)Get rid of the monopoly doctors and hospitals have on care.Let nurses and others compete for business by charging less,5)Incentives for taking better care of yourself and penalties for not,6)More bike lanes that infringe on car lanes,driving up the cost of driving and encouraging walking/biking,7)No cell phone,cable or satellite TV for anyone receiving healthcare and not paying for it.

  12. The Founding Fathers were flawed as was the original Constitution. That’s why we later passed the Bill of Rights and why Jefferson envisioned a Constitutional Convention every few years to continue changing and hopefully perfecting the Constitution. Don’t forget ‘all men are created equal’ applied only to white land owners. (And equal except slaves!) You right wing-nut tea party anti-taxers keep talking about the founding fathers as if they were some demigods. They weren’t. And, if you have no better idea for health care reform then please keep your gratuitous criticism to your self.

  13. I respectfully disagree on a number of points.

    First, there is already precedent of The Fed forcing citizens to make purchases. One related item- insurance. The NFIP mandated in 1973 that citizens in flood-prone areas were REQUIRED to purchase flood insurance. There are many such precedents.

    Second, like housing and banking, the medical industry is headed for a cliff. And like housing and banking, the GOP response was to be a pollyana- in Sept 2008 The Fed Chair was reporting that everything is ducky ! I’m glad to see someone trying SOMETHING to head off similar disasters in medicine.

    And Finally, we have Mr Regan to thank for this whole mess when he signed off the EMTALA act in 1986, which mandated that ER’s MUST see anyone who arrives on their doorstep. He left out an important component- WHO PAYS for that? Seems to me for the past 30 plus years, like most things in America, the responsible insured citizens paid.

    I’m all for allowing citizens to opt-out of the individual mandate. As long as doing so automtically opts them out of EMTALA. So if they show up bleeding at the ER with no insurance and no means to pay they have the right to die on the sidewalk.

    At any time a driver can cause a wreck, damaging or injuring me. Therefore I expect him to carry insurance. And similarly, at any time, a citizen can show up at an ER, demand expensive treatment, and walk out without payment, again damaging ME. I pay more for insurance, treatment, diagnostics, and meds because of the uninsured. And that is simply not fair. Obama’s bill, at least in part, tried to address that.

    The big picture- reward RESPONSIBILITY, not IRRESPONSIBILITY. Don’t PUNISH the insured by covering EVERYONE else for free. And don’t reward people with free treatment who have no intent to pay. Regan should have included a mandate that patients pay for services, and if they don’t seize tax returns to make payment.

  14. Of course they are, natives, black men and women are allowed to vote. They are also allowed to own property and men cannot have sex with their 14 year old slaves and still retain the position of Ambassador.

    You cannot point out one topic they diverged in opinion with today and ignore the others. This is what is wrong with Americans, they hero worship non-heroes by ignoring the truth.

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