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Gold and Energy Advisor's Real Wealth

Real Wealth #295  06/30/2011



You're Being Sold Out by Most of Washington's Republican Members of Congress!



Dear Subscriber,

It breaks my heart to tell you this but it’s true, you're being sold out by the majority of the Republican members of Congress.
The Supreme Court's decision to allow corporations to contribute unlimited funds to politicians and political action committees will bring about an economic, political and social crisis that will make what  we have seen in Greece look like a minor bump in the road.
Unless my fellow Republicans in Washington put the country's interests ahead of the interests of the multi-billion dollar businesses and mega rich millionaires who are now pulling their strings, the day of reckoning may be just weeks away. Our nations debt ceiling must be raised.
I am a conservative Republican. I voted for President Reagan twice, both Presidents Bush and Senator McCain. Yet I do not recognize the current Republican Party. It's morphed into an ultra conservative, religiously bigoted and economically blind political organization that is controlled by people who are outspokenly and pro-actively bigoted, and who have no real understanding of our country's history, economic system and have no place in their lives for the benefits of science.


Where are you Ronald Reagan? A lonely nation looks to you...

After passing the 1981 Tax cuts, in an attempt to keep his election pledges, President Reagan realized by 1982 the economic crisis he inherited from the Carter Administration could not be cured by cutting taxes, but absolutely required raising taxes. Faced with the reality of the danger to the U.S. Economy, Regan did what was right for the country.
In 1982, the Reagan Administration worked with Congress to pass the Tax Equity and Fiscal Responsibility Act, that rolled back about a third of his ‘81 tax cuts, raised corporate tax rates, and to a lesser extent income tax rates. This raised taxes by almost 1 percent of GDP, which at that time was the largest percentage in peacetime increase ever.
The Reagan Administration also supported the1982 gas tax increase. In 1983 it supported payroll taxes for lower and middle income households to higher than they were before Reagan’s ‘81 tax cuts.
Then there was the 1984 deficit reduction tax. Then there was the Railroad Retirement Revenue Act, Consolidated Omnibus Budget of ‘85... ‘86...’87 Continuing Resolution, Omnibus Budget Reconciliation Act of ‘87, that was $8.6 billion.
The debt crisis we are facing today is so much worse, yet Republicans refuse to even consider revenue enhancement compromise and are threatening our country with shutting down its government, not paying social security benefits, crippling our currency and pushing not only the U.S. but world economy into a depression deeper than that of the 1930s.
Senator Mitch McConnell and Representative Eric Cantor have sold out to the mega wealthy and are blindly lying, misrepresenting the dangers facing our country and are not living up to their oath of office. 
Despite a $14 Trillion Federal Debt and as much as $61 Trillion in unfunded liabilities, two wars, unemployment of 9% and a 40% decline in the U.S. Dollar, two extremely powerful Republican leaders, Senator Mitch McConnell and Representative Eric Cantor, prefer to lie, misrepresent and serve only the interests of the Mega Wealthy and their corporations.
The Democrats have offered $3 in spending cuts for every dollar in increased taxation – far better than the Clinton Administration's demands in the 1990s for $1 for $1. They are also insisting on eliminating hundreds of billions of dollars in corporate welfare and corporate tax breaks. According to a  Marist/McClatchy poll taken on April 19, 2011, a whopping 64% of registered voters favor raising taxes on the rich. The numbers of those asked in other recent polls about whether Federal Tax breaks and subsidies should be eliminated have hovered between 70% and 80%.
In the upcoming July issue of the Gold and Energy Advisor, I will offer a concise plan of action to restore the U.S. Economy to a growth rate of between 3% and 4%, lower unemployment to 5% within 3 years and produce budget surpluses, strengthen the social safety net of Medicare, Medicaid and still maintain the greatest military deterrent the world has ever known.
If my recommendations in the July issue of Gold and Energy Advisor are followed, the price of gold will at worst drop $200 to $300 from current levels, and then slowly rise to over $2,000 on strictly natural demand forces, while oil will hover in the $80 to $120 per barrel range for the next 5 years, giving us enough time to develop viable energy services.
If my recommendations are ignored... if the Mega Rich have their way, the great majority of them will also suffer in the wake of the scorched economic landscape that will unfold. Gold will soar to $5,000 even $15,000 in the next three years. Tens of millions of people will die of famine, disease and war.

The frustrating thing for me is the Mega Rich are also committing financial suicide.

It comes down to some basic common sense. Raising taxes on people making more than $500K or even $1 million and imposing a top tear tax bracket of 49% on people making a billion dollars a year or more is actually in their best interest.
Yes, their best interest.
Five years from now, the U.S. Dollar could easily recover 40% of the spending power it lost in the last decade simply by balancing its budget. Cutting $2 Trillion even $3 Trillion in future spending won't accomplish a bounce back in the U.S. Dollar. Eliminating corporate welfare and raising taxes on America's most wealthy will mean an Economic Renaissance that will allow America's Mega Rich to see their spending power jump dramatically and a resurgence of the world economy that will allow them to double their fortunes via a recovering economy.
Right now the Republicans and many of their Mega Rich contributors (Puppet Masters) like the Koch brothers are licking their chops thinking a complete sweep of the Federal Government is possible in 2012. I'm sorry; it’s not going to happen.
What their missing is while people like the Mega Billionaire Koch brothers buy congressmen, senators and governors to eliminate regulatory rules and make sure they pay little to no taxes, they have ignited firestorms in the key electoral states of New Jersey, Ohio, Wisconsin and Indiana. By passing voter suppression laws, busting public unions and passing anti-immigrant laws they are setting the stage for their own demise.
Within six election cycles, the next 12 years, the demographics in the United States will change so dramatically that people of color unwelcome in Alabama, Georgia, Florida, Nevada, Michigan, Indiana will literally make it impossible for the dominate Republican Party in each State to control those states and make it all but impossible to control Congress or the White House.
Look for my coming July issue. Let me know what you think. I set up a new email address for you to offer your thoughts and ask me questions. While I cannot by law answer specific stock and options questions on a one on one basis, I will do my best to respond. The new address is James@GoldandEnergyAdvisor.com.
In the meantime, let’s hope that the Republican Leadership wakes up and passes a debt ceiling increase that has a balance of tax revenue enhancements, taxes, spending cuts.


Perhaps a few cherries of incentive are exchanging the tax and revenue enhancements for tort reform?

Perhaps throwing in background checks on sales of guns at gun shows should be an NRA and Republican issue and not a Liberal one. If you can't get on a plane because you're on a no fly terror list, you shouldn’t be allowed to buy an automatic weapon either. I support the NRA and the second amendment but how can we justify this status quo?
Sooner or later 25, 50 even 500 people will be murdered by terrorists who will have exploited this gun show loophole in the law. If this happens, EVERY death will be rightfully blamed on this ridiculous situation -- the backlash combined with the rapidly changing electoral demographics could trigger MUCH harsher gun control laws and the impeachment of Supreme Court Justice Clarence Thomas. 
Bottom line: Allowing the United States to default on its debt will bring financial panic to the market. A bill without a balance of both revenue enhancing and spending cuts passed after a government shutdown/default will only lead to another 2-3 years of decline in the value of the dollar and guarantee a NEW recession. The world will not look up two days after a default and see the credit worthiness of our great nation the same. 

Best Wishes,
James DiGeorgia

P.S. Some thoughts on two Republican candidates.
Mitt Romney is not a conservative and he lies during every campaign stump speech. He misrepresents his own history. Think about it - a famed job cutter is not the answer for unemployment. His claim that President Obama made the economy worse is another outright lie. The U.S. economy has recovered, albeit feebly, but the economy has been doing much better than it was before his inauguration.
All one has to do is look at the GDP numbers, Stock Market levels and job growth. It's been a terrible recovery, but for Mitt to lie to Republicans and the American public should scare you out of voting for him. He's not Ronald Reagan. He's an opportunist pure and simple.
If you believe Michelle Bachman is the answer, please take a closer look. She's a habitual liar that has in the last 72 hours made material and serious misrepresentations about federal subsidies that she and her husband have accepted in the last few years and about the corporate welfare she's managed to bring back to the pork industry in her district.
If you doubt my assertions, please stop and consider. My claim is supported by her own tax returns. Being a former U.S. Government Tax Lawyer, she cannot claim ignorance of her taking Federal Funds. Yesterday she claimed that none of the monies received by her family farm involved her, claiming it involved only her mother-in-law. If it was nepotism it would be bad, but in this instance Mr. and Mrs. Bachman’s joint tax return show her for the hypocrite she is. She's not Ronald Reagan.
Again, Ronald Reagan where are you?

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