By Wayne Allyn Root, Former Libertarian Vice Presidential Nominee and Author of “The Conscience of a Libertarian”
The best professional poker players in the world earn millions by reading and reacting to “tells,” their opponents’ verbal and nonverbal traits. They notice the way an opponent is smiling, frowning, laughing, tapping their hands, sweating, or blinking their eyes. All these “tells” can be a sign of their opponent’s cards. The ability to read “tells” is the difference between living the life of your dreams versus bankruptcy and depression.
The same holds true in deciphering our economic troubles. If you’ve been paying attention to the news, several ominous signs have appeared that foretell economic disaster. After reading these “tells” or signs, I believe you’ll agree we are entering “Obamageddon” – Obama’s Great Depression.
The first sign is the fact Bill Gross, head of the world’s largest bond fund (PIMCO), has just sold all his domestic government bond holdings. Every single dollar. Do you have any idea what that means? In my opinion Bill Gross is one of the ten smartest men on this planet. He knows everything about the economy and bonds. His sell-off indicates he believes local, state and our federal government are all on the verge of disaster — insolvency, bankruptcy, and default on bond obligations. To add insult to injury, Gross disclosed he bought emerging market bonds with the money from the sale of U.S. bonds. That means Gross has more faith in Brazil, Russia and African nations than the U.S.A. The Great Gross sell-off is a sign of economic Armageddon.
The next “tell” of economic disaster is even more ominous. Wall Street insiders are startled at how much money the Fed is pumping into the financial system. With over $500 Billion pumped in during just the past three months, the vertical line for 2011 now reaches straight to the stars — a sign of complete financial panic. The last time such large amounts of money were pumped into the system was in the fall of 2008, when the U.S. economic system was on the verge of epic collapse. What has the Fed so scared at this moment? What is happening behind the scenes to cause such panic?
The next “tell” is that secretive Fed officials normally do not talk publicly about how bad things are. That’s why it is so frightening that, only days ago, Dallas Federal Reserve President Richard Fisher admitted in a media interview “the U.S. is on a fiscal path towards insolvency…” Expecting candor from Fed officials is like expecting an honest answer when asking O.J. whether he killed Nicole. Good luck. When a Fed official talks about “fiscal insolvency,” it’s time to get concerned, very concerned.
The next “tell” is a recent housing study proving the housing market is actually worse off now than in the depths of the Great Depression. From 1929 to 1932 new home sales in the United States declined 80%. From 2005 to today, new home sales have plunged 82%. Even more frightening, the plunge seems to be accelerating. How low can it go?
Other disastrous “tells” that financial Armageddon is upon us are new reports that the consumer confidence index just suffered the 5th largest drop in history, and inflation at the producer level just spiked up in the largest one-month rise since the dreaded inflation and economic malaise of the 1970’s. Let’s sum up the frightening news – Wall Street superstars like Bill Gross are panicking, the Fed is panicking, housing prices are headed to junk bond status, inflation is raging, and consumers are in a state of panic before reading this commentary.
The final “tell” is moronic leftist moviemaker Michael Moore recently stating that America is not broke. He thinks we have plenty of money to keep spending on entitlements, more stimulus, and obscene pensions for millions of government employees. Moore is the guy who thinks Cuba’s medical system is better than ours. He obviously thinks the answer to unsustainable debt and spending addiction is…more spending. Someone needs to make a movie about Moore’s life called “Michael Moore is a Big Fat Bloated Spending Addict.”
Moore is a symbol of the delusional thinking of Obama and his entire socialist cabal, which has wrecked the U.S. economy, spent us into insolvency, encouraged our entitlement addiction, and left us at the brink of economic Armageddon. If Moore thinks we aren’t broke, that could be “the tell” that we are already past the point of no return.
I believe these “tells” are sure signs that Obamageddon: The Great Obama Depression has arrived. We are inches from a cliff as high as the Grand Canyon. How we respond will determine if America survives, or we face the same fate as other great empires (Greek, Roman, British) that self-destructed based on mountains of debt, entitlements, welfare, corruption, too many citizens working for or dependent on government, and great armies spread throughout the globe fighting expensive wars. Forget the Great Depression of 1929. This life or death struggle to save America from Obamageddon will be the most dramatic, difficult and dangerous since 1776.
I say to my fellow patriots and freedom fighters — Libertarians, Conservatives and Tea Partiers — let’s lead the charge. Winston Churchill wouldn’t allow Great Britain to fall to Hitler. Through the force of his will, he saved the entire world from a dark ending. We cannot allow the greatest country in world history to fall either. The lives and freedom of our children and grandchildren depend on winning this battle. And we shall.
Wayne Allyn Root is a former Libertarian Vice Presidential nominee. He now serves as Chairman of the Libertarian National Congressional Committee. He is the best-selling author of “The Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gold & Tax Cuts.” His web site: www.ROOTforAmerica.com.