Monday, July 18, 2011

President Obama & The Price Of Gold

The price of gold has sky rocketed to record levels to more than $1,600 an ounce.   This is happening for several reasons as investors vote with their money, choosing the safety of gold, over other investments.   Clearly, the extraordinary price of gold is a vote of no confidence in Socialist President Obama.   Investors see Obama's mismanagement of the economy, which has led to very high unemployment, slow or no growth and high inflation as a key indicator of the future as long as Obama is in power.   In addition, the Federal Reserve has destroyed the value of the dollar by monetizing US Debt.  Further, investors know that as long as Socialists, including Obama are in office,  there will be no serious effort to stop all the trillions in deficit spending that is bankrupting our country. 

It really does not matter what all the "expert" talking heads, or politicians on TV say about the financial condition of the United States.  In the end, card always talk and numbers don't lie; but Socialists and the left wing media do lie.  Here are the facts.   Stock prices are up because the dollar is worthless.  American companies are profitable as a result of all the lay off's that took place in 2008 - 10.  Corporate expenses are down, which results in higher profits; hence higher stock prices.  The price of all commodities have gone up because the dollar has been devalued by the Federal Reserve.  Investors are fleeing to gold, not because they fear that the National Debt Ceiling will not be raised; but rather because they know it will be raised and there is no serious effort happening in Washington to seriously cut federal spending. 

Keep in mind, though the Ryan Plan would have cut $6 trillion in federal spending over ten years, there still would have been $5 trillion added to the National Debt even with these cuts.   Though Obama and the Socialists in Congress have no plan, what ever plan they do have for restraining spending would add $12 trillion to the National Debt in the next ten years.   None of this matters.   Capital Markets will never support this level of borrowing.  At some point and it will happen suddenly, there will be no takers for US treasury bonds unless of course, the interest rate the government is willing to pay is four or five times what it is today.   Greek government bonds require a 30% interest rate to attract investors.   The same thing will happen related to US treasury bonds in the future if the trillions in deficit spending continues.  Of course, none of this is sustainable. 

Many Washington politicians and particularly Socialists live in a dream world.  These Socialists, including President Obama, do not understand free market capitalism or Economics 101.   Obama and his Socialist pals in Congress actually think they can just continue trillions in deficit spending each year with no consequences.   It is important to note that the highest amount ever added to the National Debt, in any given year by President George W Bush, was $400 billion, which was thought to be alot at the time.   A certain Senator Barack Obama said of President Bush that he was completely irresponsible for adding to the National Debt.   We see now that this was chump change.  Obama has added $5 trillion to the National Debt in less than 3 years in office.  It is as though Obama is intentionally out to bankrupt our country to "transform" it into a Socialist nation more quickly.   We just can't let this happen because it will mean a lower standard of living for all Americans.  

We must take back our country in 2012 and 2014.  We must start by making Obama a one term President and running his Socialist pals in Congress out of town.   They really all should be tarred and feathered for what they have done to our nation; but I guess we will just have to be satisfied with throwing the bums out of office; though many of these politicians should be in jail, not in Congress.   The price of gold is going up because Obama is destroying and bankrupting our country.   WE THE PEOPLE must stand up and say enough.   We must take back our country.   We can do it.   We must do it to preserve our freedom, our nation and way of life for the sake of our children and grandchildren.   The price of gold is a sign that we are facing a financial crisis.  It is time for us to take action.   

No comments:

Post a Comment