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                          Paul A Drockton M.A.
          Will the Fed Decide the Next President?
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Paul A Drockton M.A.
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Will the Federal Reserve decide who is the next POTUS? Consider the following:

"Jim Stack, editor of InvesTech Research, an investment newsletter, has crunched the numbers. His findings? Since 1900, the direction of stock prices in the two months prior to Election Day has predicted the winner 89.3% of the time. "A rising stock market indicates an improving economy, which means rising confidence and increases the chance of an incumbent's reelection," he says.

Even the market's bad calls were in years when the market didn't move much in the two months before Election Day. In the three elections during which the indicator failed, the Dow Jones industrial average moved 3.1% or less during the two-month period." (Source)


It makes sense when you think about it, elections are decided by the swing voters, and they vote their pocketbook. Or, as the case might be, their 401K/IRA. Banksters like the people to choose their poison. This year, the choice is between Communist-Fascist or Fascist-Communist. Either way, we the people lose. One reason to vote third Party or write in Ron Paul.

"Fortunately, Sam Stovall, chief stock strategist at S&P, uses an indicator with a longer lead time. Looking at S&P 500 prices since 1900, he has found that the market action between July 31 and October 31 has correctly forecast the outcome of the presidential campaign 82% of the time.

So how are Romney and Obama doing on Wall Street? The S&P closed at 1379 on July 31 and 1457 on September 24. That's a gain of 5.7%. The market would have to drop at least 5.4% in five weeks for Romney to win -- assuming that this indicator is on the money this year. (Ibid)


Of, course, we know that the market has been wrong 18% of the time.

"Democrat Woodrow Wilson unseated Republican President William Howard Taft despite a rising market in the pivotal three-month period. The market also gained ground in 1932, even as Roosevelt, a Democrat, defeated Republican incumbent Herbert Hoover amidst the Great Depression. The market fell in 1956, but Republican Dwight Eisenhower still was reelected. President Richard Nixon beat his Democratic rival, Hubert Humphrey, in 1968 despite a rising market, and Republican challenger Ronald Reagan ousted Democratic President Jimmy Carter in 1980, even as the market climbed.

Stovall postulates that third parties may have played havoc with his indicator. Teddy Roosevelt ran as a Bull Moose candidate in 1912, George Wallace ran as an independent in 1968, and John Anderson, another independent, took some votes from Carter in 1980. But the indicator was just plain wrong in 1932 and 1956, Stovall concedes." (ibid)



The Fed and Credit Default Swaps


The Federal Reserve, the private corporation that gives away taxpayer money at will, is the biggest reason why derivatives contracts have been so lucrative for Hedge Funds (like Romney's), and so devastating for the Global economy. In a further burdensome move, the Banksters decided to dump more money down the Hedge Fund hell-hole:

"The policy, known as quantitative easing and often abbreviated as QE3, entails buying $40 billion in mortgage-backed securities each month. The end date remains up in the air, as the Fed will re-evaluate the strength of the economy in coming months....

Meanwhile, the Fed will continue its existing policy known as Operation Twist. Together the two programs will add $85 billion in long-term bonds to the Fed's balance sheet each month.

In addition, the Fed also indicated that it plans to keep short-term interest rates at "exceptionally low levels" until mid-2015. Previously, the Fed had forecast rates would remain low until late 2014." (Source)


Mortgage Backed Securities mean Credit Default Swaps, BTW. The instrument of mass financial destruction that allows the Uber-elite to profit from bond defaults. For a small sum, the Global Elite can bet against both corporate and sovereign debt, making trillions when that same debt goes into default.

Your Insurance company, Bank and Pension Plan are on the losing end of these bets. Thus the need for you, the taxpayer, to give away all of your money via the Fed.


The Winner Is....

Politics is a rich man's game and they will put into office the individual that can generate them the most wealth. Both Obama and Romney have been serviceable in this area. Now that the economy has been soundly bled, the real question is, who do they want as a Scapegoat?

Mormons or Black People. Either way, they get to transfer the blame for their actions on a small and largely ignorant minority. Mormons better pray Obama wins this thing, or Romney will make them the most hated minority in America.


Listen to Paul on the Republic Broadcasting Network.... Monday-Friday from 6-7 Central Time.

To purchase gold or silver email pdrockton@aol.com