Top 5 BEST and WORST Presidents In Financial History

Dear Reader,

Millions of Americans seem to believe that throwing the bums out of Washington will solve their problems. 

But it’s not that our leaders, new or old, are necessarily bad people. 

It’s just that the financial problem has grown too big, beyond the control of our government and our leaders. 

How much power does the President really have when we owe the world so much money? How does the United States tell China what to do when they have so much of our money? How does the United States influence the world when the world has lost faith in the dollar?

Personally, I do not expect the government or big business to save me. 

I simply watch what the powers that be actually DO, more than what they say or promise, and I respond accordingly to those actions. 

Knowing how to respond, rather than follow, and taking confident action, rather than waiting to be told what to do, requires courage and financial education.

I believe our financial problem is too big and getting bigger. It is out of control. It is a monetary problem more than a political problem. It is a global problem, not just a U.S. problem. 

Below are key financial decisions that different Presidents have made throughout the years that I believe have contributed to our growing financial problem.

The Fed President

Even though central banks were vigorously opposed by the Founding Fathers—the signers of the U.S. Constitution—the Federal Reserve was created in 1913 with the blessing of President Woodrow Wilson and the U.S. Congress. 

This marked the beginning of the super-rich entering into a partnership with the U.S. Treasury. 

All money in the United States was now controlled by this partnership. No other banks could issue their own money. 

This is why the statement by Mayer Amschel Rothschild almost a century earlier was so prophetic: “Give me control of a nation’s money supply and  I care not who makes the laws.”

In The Creature from Jekyll Island, Griffin boldly states that the purpose of the “Creature” is Marxist communism. He writes: “The spirit of the American people is too strong. Before Marxist communism can take over Americans, the American spirit must be broken. The way to break the American spirit is to make Americans poor.” 

These words ring true for me, which is why today’s gap between the rich and everyone else is troubling and dangerous. Once Americans are poor, their capitalist spirit can be broken, opening the door for socialism and communism.

The So-So Security President

You might conclude that Social Security is the biggest Ponzi scheme in U.S. history because the Social Security system only works if younger workers keep putting money into the pot. 

Most people understand that the Social Security fund is empty, yet people keep pumping money into what I consider a government-sponsored Ponzi scheme, hoping there will at least be enough for their retirement.

President Franklin Delano Roosevelt (FDR) came to power in 1933. FDR, while greatly loved, also created many of the financial institutions that caused many of the financial challenges the United States faces today. 

Some of his creations are Social Security, Federal Deposit Insurance Corporation (FDIC), and the Federal Housing Administration (FHA). He also took the United States off the gold standard in 1933. 

Many people believe it was World War II that brought us out of the Depression. While the war did increase U.S. productivity and its balance of payments, it was the Bretton Woods Agreement of 1944, also during FDR’s administration, that restored the gold standard and increased the power of the U.S. dollar and the United States in the world.

The Savers are Losers President

Many people believe it is smart to save money. 

The problem is that today, money is no longer money. 

Today, people are saving counterfeit dollars, money that can be created at the speed of light. 

In 1971 President Nixon took the U.S. dollar off the gold standard, repealing the Bretton Woods Agreement, and money became debt. The primary reason why prices have risen since 1971 is simply because the United States now has the power to endlessly print money to pay its bills.

Today, savers are the biggest losers. Since 1971, the U.S. dollar has lost 95 percent of its value when compared to gold. It will not take another 40 years to lose its remaining 5 percent.

Remember, in 1971, gold was $35 an ounce. Forty years later, gold is over $1,400 an ounce. That is a massive loss of purchasing power for the dollar. The problem grows worse as the U.S. national debt escalates into the trillions of dollars, and the United States continues to print more counterfeit money.

The Toxic Asset President

During President Clinton’s era (1993-2001), the U.S. government balanced its budget, so the United States did not need to borrow any money. 

This was bad news for the bankers of the world who then needed to find more borrowers, to the tune of trillions of dollars. 

They found big borrowers in Fannie Mae and Freddie Mac, which are GSEs, Government-Sponsored Enterprises, U.S. quasi-government agencies that were anxious to borrow money. They borrowed $3 to $5 trillion of this hot money and loaned the money out to almost anyone to buy a new home or refinance their home. The real estate bubble in the United States had begun.

When Fannie Mae and Freddie Mac and their executives came under investigation, they stopped borrowing this hot money. Again, this ocean of counterfeit dollars had to find a home. 

In the late 1990s, government officials such as Clinton and Fed Chairman Alan Greenspan changed the rules for the biggest banks, such as Goldman Sachs, Bank of America, and Citigroup, which began taking in this money. Immediately these banks needed to find someone to take this money off their hands. As you know, cash must keep flowing.

To help the banks and Wall Street move this hot money, mortgage brokers working for companies such as Countrywide Mortgage started looking for anyone who wanted to borrow money. They went into the poorest neighborhoods in the United States. Millions who did not have jobs or credit were offered “NINJA” (No Income, No Job or Asset) loans, and soon they too were living the American dream. 

Unfortunately for many, it was a dream they could not afford. The subprime mortgage bubble grew into a massive balloon.

The Student Loan Crisis President

In 2008, the world economy nearly collapsed due to subprime real estate mortgages. In the same year, the Federal Family Education Loan (FFEL) program was unable to lend money to students due to the collapse of subprime mortgages.

In 2010, President Barack Obama eliminated FFEL and required all new student loans to be “direct loans.” Private lenders begin offering private student loans to students independently from the government programs.

In 2012, student loan debt surpassed the $1 trillion mark, as well as credit card debt. Federal student loan debt is the number one asset of the U.S. government.

The way I see it, the United States went from subprime mortgages for poor people to subprime education for poor students. 

Subprime education loans are the worst-of-the-worst loans. At least a subprime mortgage can be forgiven by bankruptcy. Most subprime education loans can never be forgiven.

We Do Not Need More Government

Now here’s the problem: People think that a President and the government can solve their problems. 

Unfortunately, this is simply not true. And if you’ve read above, you see that Presidents seem to create more problems than they solve. 

The only thing a person can do is solve their own problems. 

Regards,

Robert Kiyosaki

Robert Kiyosaki
Editor, Rich Dad Poor Dad Daily

You May Also Be Interested In:

Robert Kiyosaki

Robert Kiyosaki, author of bestseller Rich Dad Poor Dad as well as 25 others financial guide books, has spent his career working as a financial educator, entrepreneur, successful investor, real estate mogul, and motivational speaker, all while running the Rich Dad Company.

View More By Robert Kiyosaki