Eighteen financial superstars on how to thrive in Obama's bad economy

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    How to survive President Obama's tax policies

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    Brian and Wayne Allen Root

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    Who's right about the economy: stocks or consumers?

It has now become clear that President Obama’s economic policies will continue to kill jobs, damage the private sector, and destroy the economy in the next four years. After all, they are the same policies that have led to the collapse of the European Union's economy which happening now before our very eyes.

But there is good news amidst this terrible economic crisis. Did you know that there were more self-made millionaires created during the Great Depression than in any other period in history? While the vast majority of citizens were crushed, a select smart few Americans made fortunes. That’s because crisis, decline and collapse create great opportunity for those with vision, courage and a unique understanding of what is happening.

So how can you capitalize on this same scenario today? Much like the first Great Depression, we are about to experience “the greatest wealth transfer in world history.” You’ll need to get on the right side. You’ll need a detailed plan that will empower you to do better, even as the economy gets worse. And it will get worse -- Obama’s political policies guarantee that.

Crisis, decline and collapse create great opportunity for those with vision, courage and a unique understanding of what is happening.

The first thing going in our favor is that Obama is so predictable. He’s going to do what he’s always done: encourage more big government spending and massive cradle-to-grave entitlements. That much is clear as a bell.

Despite the president’s reckless policies and insane levels of spending and debt, your path to success is to create your own "Booming Personal Economy" in the midst of economic collapse. 

As I write in my new book, “The Ultimate Obama Survival Guide,” I turned to 18 of the smartest and richest superstars of business and finance for help. 

I was honored that the most talented and successful businessmen in America agreed to give my readers their valuable advice and game plan for the next four years.

Here's a small taste of what they told me:

First, let me demonstrate something: If you had invested $1 million in 1913 (kept your money in the bank, or put it under the mattress), your assets today would be worth about $40,000. But if you had instead invested in gold, your assets would be worth $87 million.

Our reckless and spendthrift politicians and inept government have let it happened again and again. 

In 1971 if you had invested the same $1 million in the dollar, today it’s worth $200,000. If you had chosen gold instead, you’d have about $47,000,000. How about the year 2000? Today your $1 million investment in the dollar would be worth $663,000. If you chose gold, it’s worth about $5,700,000.

The smartest bankers in the world concur. In 2012 Central Bankers of the world's industrialized nations bought more gold to protect their countries than in all the years since 1964 combined.  They know what my 18 business superstars know: bad times are coming. If you don't invest in precious metals to protect your assets, you are playing Russian Roulette with your family's future.

And now it’s the perfect time to buy… old and silver have had a large decline in the past week. Count your blessings. You can now buy at a big discount! 

The masses are (as usual) headed for disaster—panicking and selling gold at its lowest point in years…and crowding (like a herd of cattle) into stocks, bonds, and the U.S. dollar at their highest points. History suggests this is not a good move. My 18 millionaire and billionaire friends are using this drop in price to buy gold with both fists!

The superstars of finance also agree that you should do the following: 

- Move to a no tax state like Texas, Nevada, or Florida. Over the course of a typical 40-year working life you can save an extra $1,000,000 for your retirement, without actually earning one dollar more or working any harder. You save the extra money simply because you keep more of what you earned.

- Invest in energy stocks. Instead of complaining about the price of gas and heating your home, prosper from it!

- Invest in farmland and agriculture stocks. Instead of complaining about the dramatic rise in the price of food, prosper from it!

- Invest in medical real estate, and medical stocks. Instead of complaining about how much the government is wasting on ObamaCare, prosper from it!

- Invest in foreign stocks, bonds and real estate. You already have a home, a career, and a pension fund invested in America. It’s time to diversify. Obama was right about one thing: you must “spread your wealth around”—to countries that have lower taxes, more opportunity, better demographics, and a brighter future than America under Obama.

This is just the tip of the iceberg – and you'll need a very sturdy lifeboat to weather this storm. As I detail in my book “The Ultimate Obama Survival Guide, ” you’ll need an 18-point plan I call "Y-PODS" --  Your Personal Obama Defense Shield. These investment ideas will allow you to survive, thrive and prosper, even while many around you lose their jobs, assets, incomes and belief in themselves and America.

When it comes to Obama's economy, first get mad, then get even. This is how you do it!

Wayne Allyn Root is capitalist evangelist, entrepreneur, and Libertarian-conservative Republican. He is a former Libertarian vice presidential nominee. Wayne's latest book is "The Ultimate Obama Survival Guide: Secrets to Protecting Your Family, Your Finances, and Your Freedom." For more, visit his website: www.ROOTforAmerica.com. Follow him on Twitter@WayneRoot.

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America's GDP growth disappoints, economy already slowing

The Commerce Department reported Friday that America's GDP (Gross Domestic Product) grew at a 2.5 percent pace in the first quarter but don’t break out the champagne. Several one-time factors contributed to this seemingly robust performance.

The economy is already slowing and new crises threaten. Most of first quarter growth likely was concentrated in January and February and the economy slowed, and it may have actually  contracted, in March.

In the fourth quarter, inventory investments and defense purchases were uncharacteristically weak—the former rebounded and the latter declined much less in the New Year. Also, extraordinary year-end corporate bonuses and dividend payments, intended to soften the blow of higher 2013 taxes, pushed up consumer spending early in the first quarter.

Those factors will not repeat in the second quarter, and January tax increases are finally starting to bite—consumers appear are hunkering down, and their confidence about the future is waning.

Higher payroll taxes and income taxes paid by the wealthy took away $165 billion in purchasing power. Working- and middle-class families adjusted spending to accommodate higher taxes, but with a lag, because they must keep driving to work and feeding their children—now car dealers and shopping malls report slowing sales.

For upper income families, changes in the tax code were extraordinarily complex, and many pay taxes on a quarterly basis on self employment and investment income. The full impact of higher taxes on their after-tax income was not reckoned until their accountants computed their first quarter payments due April 15—now they will be trimming purchases.

Along with sequestration, higher taxes are subtracting more than $200 billion from household purchasing power and government spending—that is slowing demand for what Americans make and makes jobs tougher to find.

A key element of the tax changes—reduced mortgage interest deduction—is dampening existing home sales. Holding up purchases are speculators, aided by the Federal Reserve’s easy money policies, and wealthy investors from continental Europe’s troubled economies who are parking capital in U.S. real estate.  

They are scarfing up properties in choice markets in Florida, New York City and elsewhere with cash offers that frequently squeeze out ordinary homebuyers seeking a primary residence.

In several markets, prices have zoomed past what these ordinary buyer’s incomes will support; hence, speculators bets require that somehow after-tax household incomes will somehow surge permitting them to unload at a profit. 

Slow growth and higher taxes on upper middle income and wealthy households makes that a dubious strategy, and the speculative surge cannot end well—housing price increases will slow, plateau or could crash all together. 

The housing market bump to household wealth that has supported consumer spending growth in recent months will relent.

Similarly, the Fed’s low-interest policies are boosting stock and agricultural land values—at a pace beyond what future profitability of either asset class can sustain. Either slower growing values or outright adjustments appear inevitable, and the resulting drag on consumer spending will slow the recovery.

The continuing surge of Chinese exports onto American store shelves, and weakening demand for U.S. products in recession torn Europe are dampening demand for U.S. manufactures. 

Japan’s weak yen policy is imposing tougher competition on U.S. automakers and other manufacturers of technology-intensive products. Already, the Commerce Department reported durable goods orders fell 5.7 percent in March, indicating much slower sales going forward.

The bottom line: most forecasters expect growth to slow to less than 2 percent in the second quarter and to remain below 3 percent through the end of 2014.

Peter Morici is an economist and professor at the Smith School of Business, University of Maryland, and widely published columnist. Follow him on Twitter @PMorici1.

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SuperTruck improves fuel economy by 54 percent

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Consider this: The average semi truck is actually quite economical.

No, really. A typical long-haul truck averages between 5.5 and 6.5 mpg. But it's also really, really heavy--up to 80,000 pounds, for a fully-loaded trailer. That's around 36 tons, which puts some perspective on how hard each of those gallons are working. When some pickup trucks manage barely double that with significantly less weight, long-haul trucks really are impressive.

Not that there isn't room for improvement--such as the new 9.9 mpg Peterbilt and Cummins 'SuperTruck'.

It represents a 54 percent improvement over the typical semi, as conducted over 11 runs of SAE-rated testing last fall. In 312 miles of testing, the SuperTruck returned the near-10 mpg figure with a gross weight of 65,000 pounds.

Some of the other statistics associated with the truck's efficiency are even more eye-opening.

Consider, for example, the fuel savings of a truck that achieves 54 percent better than usual economy. Over 120,000 miles per year, the average truck would use $25,000 less diesel. It would also result in a 35 percent reduction in greenhouse gases per truck.

That comfortably exceeds the proposed 10-20 percent improvement suggested by the EPA back in 2010.

With 2 million registered tractor-trailers on U.S. roads today, the fuel savings and reduction in pollution could be staggering. For freight operators, the 61 percent improvement in freight efficiency--a measure of payload weight and fuel efficiency--is also useful.

So what separates a SuperTruck from your average truck?

Perhaps unsurprisingly, many of the same techniques used to improve the fuel efficiency in regular automobiles--low rolling resistance tires, lightweight materials and a higher-efficiency engine.

The tractor and trailer units themselves have also been designed to improve aerodynamic efficiency--most noticeable in the tractor unit's covered rear wheels. The truck also uses a system to convert exhaust heat into power delivered to the crankshaft, electronic controls that use route information to optimize fuel use, and a reduction in parasitic losses from pumps and compressors.

Cummins, Peterbilt and other investors have put $38.8 million into the project, with matching grants from the Department of Energy's Vehicle Technologies Program.

When improvements are as great as those seen in the SuperTruck, it actually makes such investments seem entirely worthwhile, saving haulage companies millions from year zero--not always the case with some automobile projects.

As testing of the SuperTruck continues, both companies feel they can improve the truck further--just how efficient can you make a dozens-of-tons truck?

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Fox News Poll: Voters say debt is immediate problem, nervous about economy

Fox News Poll: Voters say debt is immediate problem

American voters are nervous about the economy and -- unlike some leaders in Washington -- they think the country’s growing debt needs to be dealt with now.

That’s according to a Fox News poll released Wednesday.

About two-thirds of voters are feeling nervous about the economy -- more than twice the number that feels confident.  And not just Republicans are nervous (although most are).  Independents are three and a half times more likely to feel nervous than confident.  Democrats are a bit more likely to feel confident.

The good news: the 65 percent who say they are nervous is down from 70 percent who felt that way in 2010.

CLICK TO READ THE POLL

Both President Barack Obama and House Speaker John Boehner recently said the country doesn’t have an immediate debt problem.  Nearly 7 voters in 10 say they are wrong.  Conversely, 27 percent agree the debt can be handled several years down the road.  

Voters are similarly at odds with Washington on the budget deficit.  Almost all think the federal government should be required to balance its budget (85 percent) and believe reducing the budget deficit is a worthy goal “in and of itself” (85 percent).

When asked about investment spending versus spending cuts, more voters say cutting spending to reduce the deficit should be a higher priority in Washington right now than increasing spending to create jobs (54-38 percent).

And by a 12 percentage-point margin, more voters say the across-the-board sequester cuts that went into effect on March 1 are a good thing rather than a bad thing (49-37 percent).  Some 59 percent of Republicans, 49 percent of independents and 39 percent of Democrats say the cuts are a good thing.  

The president warned the automatic spending cuts would be devastating, yet 48 percent think he deliberately exaggerated to try to scare people, while 45 percent think he truly believed that.  Most Republicans (74 percent), half of independents (51 percent) and even one in five Democrats (22 percent) say Obama intentionally overstated the effects of the sequester.

Public tours of the White House are one highly visible cut as school groups and other tourists bemoan the decision to stop tours of the “People’s House.”  A 63-percent majority of voters thinks the president could reinstate the tours if he wanted, including a slim 52-percent majority of Democrats.

Government spending is voters’ biggest beef when asked about paying taxes.  The largest number says “the way government spends taxes” is the thing that bothers them the most (43 percent), beating out the feeling the system is unfair (38 percent), the complexity of the system and forms (10 percent) and the amount they have to pay (8 percent).

The ongoing budget debate has taken its toll:  47 percent of voters are confident in Obama’s ability to fix the economy -- down from 51 percent a year ago (February 2012). Over half -- 52 percent -- are not confident, including 33 percent who are “not at all” confident.

And approval of Obama’s job performance remains below 50 percent.  It’s 47 percent in the new poll, which is mostly unchanged from 46 percent three weeks ago.  Fifty-one percent approved of the job Obama was doing right before his re-election (October 2012) -- that was the only time since May 2011 that he was above 50 percent approval.

Meanwhile, half of voters say Obama owes former President George W. Bush an apology for his comment during the 2008 campaign that Bush adding $4 trillion dollars to the debt was “unpatriotic,” given that Obama has added more than $6 trillion since he took office.

Capitol Hill continues to get negative reviews.  Most voters -- 79 percent -- disapprove of the job Congress is doing.  Just 14 percent approve.  Last month 77 percent of voters disapproved.

When asked to rate the lawmakers of each party separately, the consensus is both are doing a bad job, but Democrats less so.  Twenty-nine percent of voters approve of the job Congressional Democrats are doing, while even fewer -- 23 percent -- approve of Congressional Republicans.

President Obama met with some Republican lawmakers and dined with others as part of his so-called “charm offensive” on the budget negotiations.  In yet another sign of division among the electorate, 49 percent of voters believe Obama’s efforts to reach out to Republicans is better described as a “sincere effort” to reach compromise, while 44 percent say it’s a “public-relations” effort to get good press coverage.

Likewise, 45 percent think Obama’s outreach efforts will help with the negotiations, while 49 percent disagree.

When it comes to dealing with the deficit, 44 percent agree most with President Obama, while almost as many -- 41 percent -- agree most with Republicans in Congress.  Among independents, 36 percent agree most with Obama, 30 percent with Republicans and 22 percent say “neither.”

Rep. Paul Ryan, chair of the House Budget Committee, recently repeated his call to repeal the 2010 health care law known as Obamacare as a way to help balance the budget.

The poll finds about a third of voters agree with Ryan and would like to see the law repealed entirely (30 percent).  Another 25 percent would repeal parts of the law.  On the other side, 20 percent would keep the health care law as is and 20 percent would expand it.

The Fox News poll is based on landline and cell phone interviews with 1,002 randomly chosen registered voters nationwide and was conducted under the joint direction of Anderson Robbins Research (D) and Shaw & Company Research (R) from March 17 to March 19.  The full poll has a margin of sampling error of plus or minus three percentage points.

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Fox News Poll: Voters say debt is immediate problem, nervous about economy

Fox News Poll: Voters say debt is immediate problem

American voters are nervous about the economy and -- unlike some leaders in Washington -- they think the country’s growing debt needs to be dealt with now.

That’s according to a Fox News poll released Wednesday.

About two-thirds of voters are feeling nervous about the economy -- more than twice the number that feels confident.  And not just Republicans are nervous (although most are).  Independents are three and a half times more likely to feel nervous than confident.  Democrats are a bit more likely to feel confident.

The good news: the 65 percent who say they are nervous is down from 70 percent who felt that way in 2010.

CLICK TO READ THE POLL

Both President Barack Obama and House Speaker John Boehner recently said the country doesn’t have an immediate debt problem.  Nearly 7 voters in 10 say they are wrong.  Conversely, 27 percent agree the debt can be handled several years down the road.  

Voters are similarly at odds with Washington on the budget deficit.  Almost all think the federal government should be required to balance its budget (85 percent) and believe reducing the budget deficit is a worthy goal “in and of itself” (85 percent).

When asked about investment spending versus spending cuts, more voters say cutting spending to reduce the deficit should be a higher priority in Washington right now than increasing spending to create jobs (54-38 percent).

And by a 12 percentage-point margin, more voters say the across-the-board sequester cuts that went into effect on March 1 are a good thing rather than a bad thing (49-37 percent).  Some 59 percent of Republicans, 49 percent of independents and 39 percent of Democrats say the cuts are a good thing.  

The president warned the automatic spending cuts would be devastating, yet 48 percent think he deliberately exaggerated to try to scare people, while 45 percent think he truly believed that.  Most Republicans (74 percent), half of independents (51 percent) and even one in five Democrats (22 percent) say Obama intentionally overstated the effects of the sequester.

Public tours of the White House are one highly visible cut as school groups and other tourists bemoan the decision to stop tours of the “People’s House.”  A 63-percent majority of voters thinks the president could reinstate the tours if he wanted, including a slim 52-percent majority of Democrats.

Government spending is voters’ biggest beef when asked about paying taxes.  The largest number says “the way government spends taxes” is the thing that bothers them the most (43 percent), beating out the feeling the system is unfair (38 percent), the complexity of the system and forms (10 percent) and the amount they have to pay (8 percent).

The ongoing budget debate has taken its toll:  47 percent of voters are confident in Obama’s ability to fix the economy -- down from 51 percent a year ago (February 2012). Over half -- 52 percent -- are not confident, including 33 percent who are “not at all” confident.

And approval of Obama’s job performance remains below 50 percent.  It’s 47 percent in the new poll, which is mostly unchanged from 46 percent three weeks ago.  Fifty-one percent approved of the job Obama was doing right before his re-election (October 2012) -- that was the only time since May 2011 that he was above 50 percent approval.

Meanwhile, half of voters say Obama owes former President George W. Bush an apology for his comment during the 2008 campaign that Bush adding $4 trillion dollars to the debt was “unpatriotic,” given that Obama has added more than $6 trillion since he took office.

Capitol Hill continues to get negative reviews.  Most voters -- 79 percent -- disapprove of the job Congress is doing.  Just 14 percent approve.  Last month 77 percent of voters disapproved.

When asked to rate the lawmakers of each party separately, the consensus is both are doing a bad job, but Democrats less so.  Twenty-nine percent of voters approve of the job Congressional Democrats are doing, while even fewer -- 23 percent -- approve of Congressional Republicans.

President Obama met with some Republican lawmakers and dined with others as part of his so-called “charm offensive” on the budget negotiations.  In yet another sign of division among the electorate, 49 percent of voters believe Obama’s efforts to reach out to Republicans is better described as a “sincere effort” to reach compromise, while 44 percent say it’s a “public-relations” effort to get good press coverage.

Likewise, 45 percent think Obama’s outreach efforts will help with the negotiations, while 49 percent disagree.

When it comes to dealing with the deficit, 44 percent agree most with President Obama, while almost as many -- 41 percent -- agree most with Republicans in Congress.  Among independents, 36 percent agree most with Obama, 30 percent with Republicans and 22 percent say “neither.”

Rep. Paul Ryan, chair of the House Budget Committee, recently repeated his call to repeal the 2010 health care law known as Obamacare as a way to help balance the budget.

The poll finds about a third of voters agree with Ryan and would like to see the law repealed entirely (30 percent).  Another 25 percent would repeal parts of the law.  On the other side, 20 percent would keep the health care law as is and 20 percent would expand it.

The Fox News poll is based on landline and cell phone interviews with 1,002 randomly chosen registered voters nationwide and was conducted under the joint direction of Anderson Robbins Research (D) and Shaw & Company Research (R) from March 17 to March 19.  The full poll has a margin of sampling error of plus or minus three percentage points.

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