Strategic Investment

Bond traders aren’t elected, and they answer to nobody. But they possess knowledge about market prices around the world.

They move trillions of dollars a day. And that makes them very powerful.

When bond traders see that Obama and the Federal Reserve are really serious about bringing about inflation, they will dump hundreds of billions of dollars in US bonds.

This will deal a deathblow to the dollar. The price of US Treasuries will plummet. Who in their right mind wants to be left holding a currency that’s plunging in value?

The only way to lure lenders back will be to raise yields on US government bonds.

Rising yields means higher mortgage rates… and higher borrowing costs at the consumer level… This will lead to the complete collapse of the highly leveraged U.S. economy.

It’s a nightmare scenario for the already seriously wounded US economy. But the government will have little choice. It will have saddled itself – and you – with an unbearably high burden of debt.

So what will Obama try to do to bail himself out of this seemingly impossible situation?

The Plan to Take Half of Your Money

Obama will have to raise taxes eventually.

And with the help of a super majority in the Democratic Congress, there’s nothing to stop him!

Larry Summers and other top advisors will be there with the academic mumbo-jumbo to justify it all.

In 2009 or the year after, Obama will go on nationwide TV. He’ll look us right in the eyes. And he’ll tell us that his program to raise the tax brackets to 39.6% for people earning over $250,000 has been so successful that he’s raising the rate to 42.9% and lowering the income level to $95,000!

 But That’s Not All!

Besides raising the tax brackets, Obama will raise a host of other new taxes, great and small.

• After 2010, the death tax will be resurrected – with a chip on its shoulder. And it will hit estates that haven’t been taxed since 2001.
• Medical benefits from your employer will be taxed.
• Capital gains rates will jump to suck what little life remains from the economy.

(These are just a few of the tax hikes that have been publicly acknowledged.  You should never doubt the creative new ways the government can come up with to steal your hard earned money.)

Remember, Obama will be slashing Social Security, Medicare and every other type of government spending. The victims of these cuts are going to be in a rage. They’re going to be baying for blood.

And Obama’s going to give them somebody’s blood: yours.

Ladies and gentlemen, this is not news. We’ve already seen Clinton’s strategy was to blame the rich.

When cornered, Obama will attack with the easiest tax target – estate taxes. You can count on it. Why should anyone inherit wealth? Obama is going to ask.

Maybe the parents have earned it, but the kids didn’t. Tax it away! Fairness!

In 2010, there is no estate tax. But like Jesus calling Lazarus forth from his grave, Obama “the Chosen One,” will say “Rise up!” And in 2011 the estate tax will hit anything over a million dollars with a top rate of 55%.

A million bucks… Sounds like a lot of money, right? But it’s not. Throw together your house, your car and a small stock portfolio and you get there pretty darn quick.

Anything over that, the feds are going to be taking over half! And they are closing a noose around your ability to give gifts while you’re still alive.

If you’re worth $1.5 million – once again, something that’s quite easy when you look at all your worldly possessions – your heirs will be paying $275,000 in new taxes. Just to the feds.

Throw in probate costs, state taxes, lawyers’ fees… and easily you could see a third of your wealth vanish into thin air.

Disinherit the IRS

Is there any salvation from these outrageous new taxes?

You bet! There are specific steps you can take right now to disinherit Mr. Obama’s IRS. But if you procrastinate a few months, you could lose big.

The newspapers will tell you that there’s not much you can do to hold onto your money. They are wrong.

You can rearrange your assets to avoid the new confiscatory income and estate taxes. Using trusts and other devices over the next two years can keep your money where it belongs – with your family and loved ones.

Put simply, it’s time to bury your wealth.

This will see you through the coming bad years. It will also be the foundation of our country to rebuild after Barack Obama is gone in 2012.

It’s now clear that most assets are going to go down in value. Our whole reason for publishing Strategic Investment is to tell you what’s going up – and what to avoid!

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