Barack H. Obama began his presidential administration with a massive subsidy to the welfare mothers at Goldman Sachs. He then followed it up with a subsidy to corrupt, organized crime linked contractors and other perpetrators of fraud, which he called a "stimulus". Then, he pushed through an incompetent and destructive health care law that needs to become the first major Washington boondoggle to be repealed. Throughout it all, his supporters have smeared anyone who disagrees with his massacre of the US economy as being a "racist."
The truth of the matter is that there was a statistically significant increase in federal government spending as a percentage of gross domestic product in 2009 as compared to 2008. The spending was mostly attributable to corrupt subsidies to Wall Street and contractors via the stimulus. The spending will be outmatched in coming years as the health care law goes into effect. Anyone not out to murder the American economy is opposed to the policies of President Barack H. Obama.
If opposition to Obama means racism, then an equally valid deduction is that Obama's supporters are serial killers of the economy. They are Jeffrey Dahmers, Ted Bundys and David Berkowitzes.
Call me a racist? I'll call you a serial killer.
Wednesday, May 19, 2010
Ron Holland on the Coming Currency Crisis and Economic Viagra
Ron Holland has an excellent blog on the Lew Rockwell site about the coming currency crisis. Holland makes four excellent points:
1. The Greek crisis may lead to a shrinking of the Euro zone as more socialist nations like Greece pull out in order to have the flexibility to inflate further.
2. Eurocrats would like increasing centralization of Europe, just as Republicrats here in the US favor increases in Washington's power. But, Ron rightly notes, Europe "would be far better off as a confederation of sovereign states that allows competition among individual national currencies." The same is true here in the U.S. The U.S. would be better off if the states were sovereign and were to spin off from Washington, which ought to become a loose coordinative hub like Brussels is today.
3. There will be continuing periods of dollar strength as the mania of "dollar safety" continues to motivate investors. Eventually, though, massive increases in the monetary base and China's and Japan's ending of their subsidization of a devaluing dollar will cause currency depreciation here.
4. Holland concludes: "Eventually the sovereign debt crisis will also come to the U.K. and then to the U.S., with disastrous results. The tragedy in Greece today is just a glimpse of what will happen to the sovereign debt of the United States. It will come to America, and it will come on its own schedule, so be prepared."
That means be ready to purchase gold when the price of gold falls. I have about 5% of my total assets in gold right now and I'm planning to increase it over time, buying in the dips. Other commodities such as agriculture (DBA) and general commodities (DBC) as well as silver (SLV) and other metals should be included in a balanced portfolio. Gold stocks (for instance, Eldorado, EGO or GDF) and leveraged gold ETFs (e.g., DGP) are higher risk/higher return ways of investing in gold. Similar ETFs exist for silver and other commodities.
I am currently 68% in cash and about 10% in commodities, including silver and agriculture as well as gold, and about 6% in two foreign currencies, the Canadian dollar and the Australian dollar. The rest is in a few stocks, including a Singapore ETF (EWS).
My worst positions are the Australian and Canadian currencies which have plummeted, apparently because of the Euro crisis (I don't understand why, but I also don't understand why the dollar is rising). A buying opportunity in the making?
Do not buy and hold. The mammoth increase in monetary reserves two years ago has motivated the past year's run-up in the stock market, and it may be that this injection is running out of steam. It is possible that the massive increase in potential liquidity (tripling of the monetary base) will continue to boost the stock market for some time, but ultimately the viagra will wear off. Then, Bernanke, Obama and their supervisors at 85 Broad Street will need to decide whether to inject nine times the monetary base to try to "get the stock market up" another 50%. If they do, hyper-inflation will be a certainty. If not, then expect some major disappoints in the American stock market.
Bernanke's use of monetary reserves somehow reminds me of viagra. The older the rally gets, the more viagra is needed.
1. The Greek crisis may lead to a shrinking of the Euro zone as more socialist nations like Greece pull out in order to have the flexibility to inflate further.
2. Eurocrats would like increasing centralization of Europe, just as Republicrats here in the US favor increases in Washington's power. But, Ron rightly notes, Europe "would be far better off as a confederation of sovereign states that allows competition among individual national currencies." The same is true here in the U.S. The U.S. would be better off if the states were sovereign and were to spin off from Washington, which ought to become a loose coordinative hub like Brussels is today.
3. There will be continuing periods of dollar strength as the mania of "dollar safety" continues to motivate investors. Eventually, though, massive increases in the monetary base and China's and Japan's ending of their subsidization of a devaluing dollar will cause currency depreciation here.
4. Holland concludes: "Eventually the sovereign debt crisis will also come to the U.K. and then to the U.S., with disastrous results. The tragedy in Greece today is just a glimpse of what will happen to the sovereign debt of the United States. It will come to America, and it will come on its own schedule, so be prepared."
That means be ready to purchase gold when the price of gold falls. I have about 5% of my total assets in gold right now and I'm planning to increase it over time, buying in the dips. Other commodities such as agriculture (DBA) and general commodities (DBC) as well as silver (SLV) and other metals should be included in a balanced portfolio. Gold stocks (for instance, Eldorado, EGO or GDF) and leveraged gold ETFs (e.g., DGP) are higher risk/higher return ways of investing in gold. Similar ETFs exist for silver and other commodities.
I am currently 68% in cash and about 10% in commodities, including silver and agriculture as well as gold, and about 6% in two foreign currencies, the Canadian dollar and the Australian dollar. The rest is in a few stocks, including a Singapore ETF (EWS).
My worst positions are the Australian and Canadian currencies which have plummeted, apparently because of the Euro crisis (I don't understand why, but I also don't understand why the dollar is rising). A buying opportunity in the making?
Do not buy and hold. The mammoth increase in monetary reserves two years ago has motivated the past year's run-up in the stock market, and it may be that this injection is running out of steam. It is possible that the massive increase in potential liquidity (tripling of the monetary base) will continue to boost the stock market for some time, but ultimately the viagra will wear off. Then, Bernanke, Obama and their supervisors at 85 Broad Street will need to decide whether to inject nine times the monetary base to try to "get the stock market up" another 50%. If they do, hyper-inflation will be a certainty. If not, then expect some major disappoints in the American stock market.
Bernanke's use of monetary reserves somehow reminds me of viagra. The older the rally gets, the more viagra is needed.
Rand Paul's Victory
Rand Paul is the GOP candidate for Senator in Kentucky! Yiiippppeee! His speech is just awesome. And who can doubt that, to recall a quote I heard somewhere: something's rotten in Denmark. And long live freedom!
Tuesday, May 18, 2010
Mitchell Langbert's Blog Exceeds 200,000 Independent Visits in 26 Months
I don't think of this blog as mass media and generally I get between 100 and 200 visits per day. My readers are a mixture of people who surf in through links to various topics, friends, former students, people with whom I worked on the Obama birth certificate issue two years ago and others whom I know. This past week, though, demonstrates the amazing power of the Internet. One post concerning the use of hay to soak up oil has been attracting over 5,000 visits per day and over 10,000 on two days, with better than 50,000 visits in the past week to that page. I am not sure how that worked. Several major sites picked up the story and linked to that page. But according to my site meter the majority of visits have been from e-mail links. I'm not technologically savvy and so have had trouble piecing this phenomenon together. I must thank Contrairimairi for forwarding that video to me.
I wish the large number of vistors were to take a look at the rest of my blog, but only about six percent have. In any case, 200,000 visits since March '08 amounts to an average of 7,695 per month. That's more than the annual circulation of most academic journals. Let us hope for many more phenomenal successes in the years to come.
I wish the large number of vistors were to take a look at the rest of my blog, but only about six percent have. In any case, 200,000 visits since March '08 amounts to an average of 7,695 per month. That's more than the annual circulation of most academic journals. Let us hope for many more phenomenal successes in the years to come.
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