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  • Keep Your Healthcare Plan? Probably Not!

    During the 2008 presidential campaign, candidate Barack Obama promised that, if elected, he would press for some form of nationalized healthcare. Time after time, he assured Americans: 'If you like your healthcare plan, you can keep it; if you like your doctor, you can keep your doctor.' Many in Congress promised the same thing as they crafted the sweeping healthcare legislation that ultimately passed in March.

    Yet on June 14 the Obama administration released an 83-page document which indicates that over half of all employer-provided health insurance plans will be effectively eliminated between now and 2014 because of the new healthcare law. For small businesses, it's even worse. The Obama administration's own estimates indicate that 66% or more of small businesses will abandon their healthcare insurance plans by the time ObamaCare kicks in on January 1, 2014.

    This week, we will look into the many new and onerous rules, regulations and restrictions in the latest 83-page report from the Obama administration. The bottom line: If you get your health insurance through your employer, or if you are (like me) the owner of a business that provides health insurance to its employees, you need to read what follows very carefully. We've all been lied to!

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  • America's National Debt Tops $13 Trillion

    With relatively little fanfare in the media, the US national debt cruised above $13 trillion last month. The federal budget deficit for fiscal 2010 is projected to reach a record $1.5 trillion by September 30, and will be above $1 trillion in fiscal 2011 as well. President Obama's own budget projections show that our national debt will swell by almost $10 trillion more over the next 10 years.

    This out-of-control spending has caused both the International Monetary Fund (IMF) and the Bank for International Settlements (BIS) to formally call for the Obama administration to curb its budget deficits. In response, President Obama has created a 'Debt Commission' to study ways to reduce the deficits. Don't be surprised if this commission concludes that the only way to fix the problem is a 'Value-Added Tax' (VAT).

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  • Interesting Articles of Late

    For this week's E-Letter, I have chosen to reprint four of the most interesting articles I have read over the last week. The first two articles are from well-known writers that have come to agree with me that we are headed for another financial crisis if President Obama continues his plan to double the national debt over the next decade.

    The third article is from Larry Kudlow, well-known economist and host of CNBC's The Kudlow Report, who argues that Obama's latest plan to use TARP money to bail out homeowners who are about to default is just plain wrong and unfair to those lower and middle class families who are working extra hard to make their mortgage payments.

    The final article is a column by George Will of ABC News' This Week. As you may know, Obama plans to take up immigration reform very soon, as he is in desperate need of some new voters. George Will makes a brilliant suggestion for how to solve the illegal immigration problem once and for all that I'll bet you haven't thought of.

    I will be back to our usual format next week. I hope everyone had a great Easter holiday. I sure did!...
  • On The Economy & The CBO's Credibility

    I felt really bad about sending out last week's E-Letter in which I predicted that we will face another serious financial crisis and perhaps another depression sometime in the next several years. But later that same day, the latest poll by Fox News/Opinion Dynamics showed that 79% of registered voters believe that an economic collapse is still possible. 84% of Republicans, 80% of Independents and 71% of Democrats all agree that the worst may not be over. Obviously, there are a LOT of Americans that agree with me that Obama's trillion-dollar deficits and the skyrocketing national debt represent the biggest threat to our economic and financial futures.

    This week, we take a look at the latest economic reports, most of which suggest that growth this year will fall well short of the 5.6% rise in GDP in the 4Q. We also review the recent actions in the stock and bond markets, both of which have had their share of surprises. And finally, we will review how the non-partisan Congressional Budget Office 'scores' major pieces of legislation in terms of their overall cost. You may be surprised to learn that Congress can game the system and get just about any CBO score they want - as was the case with ObamaCare.

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  • Another Financial Crisis To Come

    America is headed for another much more serious financial crisis in the coming years. Trillion dollar annual budget deficits are skyrocketing our national debt - now at a record $12.6 trillion - which is on track to more than double over the next decade. Moody's, one of the nation's oldest credit rating firms, warned recently that the US government could lose its triple-A credit rating in a few years if the current runaway spending is not reversed.

    Whether the government loses its triple-A credit rating or not, those who buy our trillions in government Treasury securities are becoming increasingly nervous about our ability to make good on those supposedly risk-free obligations. Foreigners own over half of our outstanding national debt. When these creditors decide they no longer trust our commitment to make good on this exploding debt, we will enter a financial and currency crisis that will make 2008 look like a walk in the park.

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  • Biggest Political Gamble of the Decade

    Last Wednesday, President Obama implored Congress to pass his latest healthcare plan, even if by only a majority vote (51) in the Senate - the process known as 'reconciliation' - despite the fact that a majority of Americans oppose the plan. Democrats appear willing to pass the sweeping healthcare plan even though polls show they could lose their majority rule in the House of Representatives in the November elections. President Obama doesn't seem to care either.

    This week, we look at the details of Obama's latest healthcare proposal and ponder why he and the Democrats in Congress believe they are smarter than we Americans are, and why they are willing to risk everything to pass their government-run healthcare plan, when they really should be focused on the economy and creating jobs. And I've got some great poll results on healthcare - such as 57% think it will 'hurt the economy' and 61% want Congress to 'start over' - and a really good editorial at the end.

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  • The Mother of All Budget Deficits

    President Obama unveiled his fiscal year 2011 federal budget last week, and it is another whopper. If approved, he would spend a record $3.83 trillion and run a deficit of at least another $1.3 trillion. The actual deficit could be much higher because his assumptions about the economy are considerably too optimistic in my opinion and that of many economists. Obama's new budget projections now show that the budget deficit for FY2010, which ends on September 30, will be much higher than previously forecast - a whopping $1.6 trillion. This week, we will examine the implications of trillion dollar deficits as far as the eye can see.

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  • Healthcare Reform Designed to Fail

    The Senate is set to vote on its version of health care reform, possibly as early as Christmas Eve. If they do, it will be the worst Christmas present ever for the American taxpayer. The last-minute negotiations to obtain enough votes to prevent a Republican filibuster have transformed the bill from an ill-conceived attempt to reform health care to a horribly complex piece of legislation laden with exemptions, special deals and downright payoffs for certain states.

    The current push to pass a health care reform bill - any bill - has exposed the seedy underbelly of American politics. However, this is nothing new. What bothers me most about these health care bills being jammed down our throats despite public opposition is that whatever is in the final bill, it is bound to fail. In fact, you might say it's been designed to fail.

    This week, I'm going to reprint two very good articles, one from Accuracy in Media (AIM) and one from Dick Morris that discuss the major problems with the current healthcare bill before the Senate. Note that these articles were written prior to the late-night negotiations (or, more accurately, bribes) that occurred this past weekend, but they still paint an accurate picture of the health care debate.

    Since this is the last E-Letter before Christmas, I also want to take this opportunity to thank all of my loyal readers and clients and wish you a very Merry Christmas or Happy Hanukkah.

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  • Healthcare Reform or Government Takeover?

    President Obama addressed a rare joint session of Congress on September 9 when he spoke at length about his desire to substantially reform America’s healthcare system. Whether you are among the apprx. 56% of Americans who now oppose the healthcare reform bill in the House, or you are among the apprx. 43% who support it (latest Rasmussen poll), it is important to know the facts - a number of which the president failed to address or misrepresented in his speech.

    While I have refrained from writing at length on the healthcare reform debate, I feel the issue is just too important, and too politically charged, not to speak out. In the pages that follow, we will delve into some of the biggest problems and challenges with the House healthcare bill, H.R. 3200 - America's Affordable Health Choices Act of 2009. Given that there is so much misinformation on healthcare reform out there, on both sides, maybe this will help.

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  • On the Economy & Obama's Trillions

    Most (but not all) of the economic reports over the last month or so have been positive, and more and more forecasters now believe that GDP growth will be slightly positive in the 3Q. Unfortunately, we don't get our first 3Q GDP estimate until the end of October. The latest GDP estimate for the 2Q was unchanged at -1.0%, which was better than expected. I will cover the latest encouraging (and not so encouraging) economic news just below.

    Next, on Friday, August 21, the Obama administration quietly announced that the White House Office of Management & Budget revised upward its long-term federal deficit projections to fall in line with those of the Congressional Budget Office. The White House finally admitted that its economic assumptions were too optimistic - to the tune of $2 trillion over the next 10 years. So now it's official - even President Obama admits he will more than double the national debt in the next 10 years, which will likely lead to another financial crisis.

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  • Is America On The Road To Financial Ruin?

    Last Wednesday, President Obama announced the most sweeping financial industry reforms since the Securities and Exchange Commission was created in 1934. Obama unveiled new proposals that would refashion the federal rules governing almost every corner of finance, and will push the government and the Federal Reserve much more deeply into banks and the private markets. I will discuss these massive changes and tell you why I do not believe they will be good for the markets or investors, for the most part. We will also look at some new polls which indicate that more Americans are worried about President Obama's trillion dollar deficits than they are about the recession. Lastly, we will look at the latest economic numbers and what they mean. Let's jump right in....
  • Obama On Course To Double National Debt

    Based on the Obama administration's own spending forecasts, the US national debt is projected to double over the next 10 years. Currently at over $11.4 trillion, the national debt is projected to balloon to at least $22.5 trillion over the next 10 years, according to the non-partisan Congressional Budget Office. The CBO now forecasts the fiscal 2009 budget deficit at a record $1.845 trillion alone, with another deficit of $1.4 trillion in fiscal 2010. If our national debt in fact doubles in the next 10 years (and it could more than double), this will be bad news for the US dollar and interest rates, which in turn is bad news for stocks. As you might expect, the liberal media is not talking about these new debt numbers, so I will lay it all out for you this week. Feel free to pass this week's E-Letter on to others - we need to get out the word!...
  • Where To Turn If You Lose Your Job

    The US unemployment rate soared to 9.4% in May, the highest level in 25 years, and is on track to top 10% by the end of the year. Over six million US jobs have been lost since this recession began. With those chilling numbers in mind, I thought this would be a very good time to revisit a topic I have written about in the past, the Johnson O'Connor Research Foundation, which scientifically tests people's natural aptitudes to determine what career paths would be best for them. Everyone in my family has been through the testing, including me. If you or someone you know has lost his or her job, a trip to Johnson O'Connor could prove to be invaluable. Also, if you have kids or grandkids that don't know what to pursue in college, get them tested - you'll be glad you did....
  • The End of America's Financial Independence?

    President Barack Obama recently set the wheels in motion to render the ultimate control of our large financial institutions, large insurance companies, large hedge funds and quite possibly our financial markets as well, to a foreign entity. A new international regulatory agency was created at the recent G-20 Summit in London, and all G-20 countries signed onto it. Sadly, you probably have not heard a word about it until now. Prepare to be outraged as you read what follows....
  • Have We Turned The Corner On The Recession?

    While the global recession and credit crisis are still in full swing, at least we have finally seen a few positive economic reports of late. Specifically, we have seen some good news in the housing sector where new and existing home sales actually increased nicely in February, following months and months of decline. We also saw an unexpected jump in durable goods orders for last month. These reports, along with the nice jump in the stock markets, have led several noted forecasters to suggest that we've seen the bottom in the recession and the worst of the credit crisis. I am not so convinced.

    We will also take a close look at Treasury Secretary Geithner's latest bank bailout plan that would partner government and private investors in a scheme to take toxic assets off of the banks' books, but there is no guarantee that this new plan will work. We'll also examine the Fed's latest plans to buy Treasury debt and more toxic assets from banks. Next, we'll examine the latest report from the Congressional Budget Office regarding President Obama's record large budget for 2010, which the CBO says will result in a massive $2.3 trillion deficit. Can I say, I told you so?

    It's a lot to cover in one letter, but I trust you will find it interesting....