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It’s all over but the shouting!
According to last-minute polling, Republicans will gain up to 60 House seats, including a very vocal Tea Party caucus.
Meanwhile, incumbents who have held the same seats for decades are being unceremoniously voted out of office. Even seats that have been in Democratic hands for generations are now in jeopardy.
Case in point: John Dingell Jr. (D-MI) has served in the U.S. House of Representatives since 1955, when he won the seat that his father held since 1933. After 77 years in the Dingell family, even that seat is now hanging by a thread.
In the Senate, Democrats will probably lose up to eight seats. They retain a majority … but by such a TINY margin … they effectively lose control to fiscal conservatives in BOTH parties!
Overall, it’s a LANDSLIDE — here’s what that means …
- Until now, Federal stimulus money has been the number one FUEL driving the economy.
- The people are kicking Congress OUT of the stimulus business! In fact, even as you read these words, many of the candidates being elected today are already drafting legislation to actually roll back government spending.
- That means the ONLY way President Obama will be able to pour more stimulus into the economy is through one institution — the U.S. Federal Reserve … and via the ONLY weapon that remains available — the money printing presses.
But money printing is an extremely dangerous tactic — one that has the potential to sour U.S. bond investors worldwide … gut the dollar … and send contra-dollar assets careening higher.
Bottom line: With the conservative sweep of the midterm elections now a fait accompli, the NEXT major shoe to drop is tomorrow’s Fed announcement — the declaration that the central bank will resume money printing to stimulate the economy.
Most likely, the Fed will announce that it will print much less than the $1.7 trillion it printed last time around. If so, look for major corrections in stocks … a short-term correction in gold … and a temporary firming of the dollar.
But make no mistake: Regardless of how much the Fed says it will print tomorrow, it will come under tremendous pressure from the Obama administration to print MUCH MORE.
If the president wants to be re-elected in 2012, he must find SOME way to stimulate the economy. And the U.S. Federal Reserve is now the ONLY stimulus tool the government has left.
That’s why we’re convinced you can count on a plunging dollar, soaring precious metals and wild volatility in the stock and bond markets.
To help you prepare for this dangerous but opportunity-rich new environment, we’ve pulled out all the stops, preparing a whole series of online presentations. But the D-Day we’ve been warning about is here — for markets and for investors. And now, you are truly running out of time.
At 11:59 PM tonight, TWO crucial
deadlines will have come and gone.
DEADLINE #1: The last of our pre-election presentations, “Two New Mega-Trends; Two New Mega-Windfalls” will go offline.
But remember: Both of these opportunities end tonight.
Best wishes,
Larry
