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Bill Clinton’s Thoughts On Obama’s Tax-and-Spend Policies
by Mark Skousen, Contributing Editor
Thursday, November 12, 2009: Issue #1136
“It’s illegal, but I’ll do it anyway.”
Famous last words by former President, Bill Clinton.
Last month, I had a chance to talk one-on-one with Clinton at the annual International Crisis Group Award Dinner at the Waldorf Astoria Hotel in New York City. I was the guest of Frank Holmes, president of US Global Funds and co-chair of the dinner.
It was my second meeting with Clinton. The first was after the 1996 presidential debates when I jogged with him for 30 minutes on a beach in San Diego, surrounded by Secret Service agents. It was there that Clinton said those immortal words when I asked him to sign a dollar bill: “It’s illegal, but I’ll do it anyway.”
Inevitably, I asked him what he thought of President Obama’s first year in office – especially his tax-spend-and-regulate policies. And what Clinton told me was very revealing…
The Middle East Conundrum
The IGG doesn’t play favorites. About 400 people came to witness former Presidents George H.W. Bush and Bill Clinton receive the Fred Cuny Award for the Prevention of Deadly Conflict, followed by a short concert by James Taylor.
Bush had a prior obligation and couldn’t attend, but Clinton spoke passionately for half an hour on armed conflict around the world. Much of his remarks were pointed toward the Obama administration, warning that the United States needs to “walk a tightrope” when it comes to Middle East peace negotiations.
“Ultimately,” he said, “the Middle East must do it on their own.” He continued by saying the Israelis and Palestinians must be willing to “get over it,” referring to past wars and hatred, and when they do, they will become a region known “not for energy, but for enterprise.”
He pointed to Rwanda as an example. In 1994, the central African nation was torn apart by a bloody civil war between the Hutus and Tutsis, resulting in the mass murder of one million civilians. But Clinton’s State Department sat around and did nothing to stop it, for which Clinton later apologized.
But Clinton said the Rwandans have moved beyond the genocide and have made tremendous progress in rebuilding their country. And while nations like Haiti have seen no increase in per capita income, Rwanda’s has tripled.
Everyone can agree on the evils of war. But after Clinton finished his speech, I had the chance to ask him about what he thought about Obama’s tax-and-spend policies.
Clinton Calls for Corporate Tax Relief
Specifically, I asked: “You left the presidency with a budget surplus, but since then our country has seen massive deficits. What went wrong?”
He bluntly replied that while he had a “pro-surplus” policy, George Bush had a “pro-deficit” policy and that President Obama has inherited an even worse “pro-deficit” policy. (My note: I personally believe that this is why Wall Street hasn’t gone anywhere in 10 years.)
Clinton said he understood and approved of the need for running deficits this year to avoid another Great Depression, but that unlike the 1930s, foreigners are financing a great deal of the federal deficit these days – specifically, the Chinese.
“That’s a serious danger,” Clinton said. (My note: I believe that’s why the dollar keeps falling.)
Then, raising his finger, Clinton emphasized that President Obama must “cut spending” when the economy finally recovers. So I followed with: “What about raising taxes? Do you favor cutting the corporate income tax to stimulate job creation?”
Clinton’s answer surprised me: “Our tax system is anti-business and too complex. Now more than ever, we need tax relief for American business.”
Of course, both Clinton and I know that no such government cutbacks will happen under Obama, especially as he and the Democrats push through an expensive healthcare program.
But Clinton’s message to me was clear: Obama is no Clinton. In fact, I got the distinct impression that Clinton thought President Obama was anything but a “pro-growth” new Democrat.
The question is: What does this mean for investors?
Three Stocks to Combat Three Big Problems
Simple: Look for more deficits, higher taxes, and slower growth under Obama.
To combat this potent mix, I recommend investing abroad. Specifically, buy these three stocks…
- Templeton Emerging Markets Fund (NYSE: EMF): It’s shot up by 107% this year and I believe it’s likely to go even higher.
- SPDR Gold Trust (NYSE: GLD) and the iShares Silver Trust (NYSE: SLV): It never hurts to hit the traditional safe havens of gold and silver – especially with precious metals faring well under the Fed’s zero interest rate policy.
Good investing – AEIOU,
Mark Skousen
P.S: The Templeton Emerging Markets Fund is one of the best, low-cost ways to capture the potential in overseas markets – specifically, emerging markets – through just one transaction. But if you want to zero in on more international stock picks, allow me to point you in the direction of my good friend and colleague, Alexander Green, and his New Frontier Trader.
As the U.S. market continues to frustrate many investors, it’s crucial that you diversify your portfolio overseas. That’s why the New Frontier Trader is dedicated to finding the fastest-growing, most lucrative foreign stocks. Already this year, it churned out stock winners of 53%, 39% and 38%, plus 473%, 334% and 208% from options trades. Take a look at this report for more information on how you can start cashing in on foreign companies.
- Obama’s Market Effect
- As the Dow Cracks 10,000… What’s Next for the Market?
- The “Tiregate” Scandal Can’t Derail This Growth Story…
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10 Responses to “Bill Clinton’s Thoughts On Obama’s Tax-and-Spend Policies”
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November 12th, 2009 at 11:06 am
Your article, “Bill Clinton’s Thoughts On Obama’s Tax-and-Spend Policies” seems like nothing more than a political rant. I thought you guys at Oxford Club were staying out of politics!!??? Just tell me how to money in the given economic climate, don’t send me anti-Obama propaganda. After all, YOUR guy had eight years to bring us peace and prosperity and did exactly the opposite.
Thanks
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Jin Binam Reply:
November 12th, 2009 at 2:01 pm
To Luke SCHMICK –
WE guys voted in a president who got hit right between the eyes with 9/11. He handled it well. YOUR guys voted to go to war with the thugs overseas to protect America after that. (COST? Huge! But, necessary. War is never cheap.) Our military has done a good job. However, YOUR president is inexperienced, arrogant, unsupportive of the men and women who are fighting to save our great America. If Obama has his way, we will no longer be free to be Americans. Stop blaming the previous administration for spending. Obama is out of touch with reality and so are his left-wing cabinet members and czars. We are trillions of dollars in the red and no relief in sight. Never in American history has it been so bad.
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November 12th, 2009 at 11:21 am
Sir,
Why in the world would you believe President Clinton when at the same time he is endorsing this horrific health care bill?
Sincerely,
J.
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November 12th, 2009 at 11:58 am
Thank you Mark and Investment U. It is great to
get some real encouragement, to some of us who has lost so much. Best always Chuck Daily
AWS # 136910
Reply
November 12th, 2009 at 12:29 pm
Serious lack of foresight (and insight) if you want to further increase the gap between the rich and the poor in America. Reduce tax on business by all means, but return to the 95% tax on those making more than 3 million a year, as in the good days of life, liberty, and the pursuit of happiness.
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November 12th, 2009 at 12:37 pm
Thank you. The best article I have read from Mark. Keep up the good news.
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November 12th, 2009 at 12:54 pm
So, If we give Corporate America some more tax breaks, is there ANY guarantees that this will somehow filter down to the AVERAGE American? OR will it filter UP AGAIN, to the Ceo’s and the BIG DOGS up top? God forbid, you put a CAP on how much these corporate Ceo’s and their “cronies” can give each other for salaries “and bonuses!!! THEN, just maybe, there would be some profit left over to allow for retirement plans and health care plans for the average employee again (but that of course depends on slaying the dragon that is currently called “health” care). I am all for Capitalism, just not “preditory capitalism”. How about encouraging small businesses, that employ locally, and spend locally, they might not be on the New York stock exchange, but when they have to look their employees in the face every day, a conscience might do wonders.
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November 12th, 2009 at 3:40 pm
I do not understand all this celbrity idolatry. Corporations and unions are government-created and mediated abstractions, and since 1913 our money is unconstitutional theft by private bankers. The Land of the Free has the world’s highest percentage of citizens in prison, and our per capita crime rates are 600 times what they were a hundred years ago. Our constitutions are dead ink, and our leaders perfectly reflect our complacence and ignorance.
I wish we’d quit bowing to golden calves and start thinking about who we are and how we’d like to live.
How’s this?:
1. Citizens can do whatever the heck they want to do as long as they don’t harm anybody else, or take what’s not theirs.
2. We’d have no more government than necessary to maintain #1.
3. We write this down in plain speech and call it law.
4. We invite others around the world to emulate our success, but otherwise leave them the heck alone.
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November 12th, 2009 at 6:09 pm
Interesting that Clinton manages to disagree, while being ’supportive’. Wish he had commented
on the medical ‘insurance’ with its compelling
five years, $250,000 fine.
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November 16th, 2009 at 3:01 am
I think advising people to invest in GLD and
SLV is way off base. These two ETF’S are paper
tigers and there is some hanky-panky going on
with them. I used to own both of them but after
doing due diligence, I dumped them both. That was
months ago and I’m still glad to be done with them
If an investor wants some insurance against the
doomed dollar, buy and hold REAL gold and silver.
Dan O. West Harrison, Indiana.
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