Helicopter Drops, and Gold

All of this discussion by the fed about Quantitative Easing and you begin to quickly realize how they are prancing around with the wrong answer, meanwhile, they know very clearly how they failed. Instead of giving away our money to banks, so they could recapitalize their insolvencies, they should have done a helicopter drop! A helicopter drop would have been to give the money back to us so we could spend it to revitalize the economy. No one would have done a better job at distributing the money quickly to much needed businesses, manufacturers, and creditors. The money would have trickled back to the banks. Instead, they handed it off direct to the bank who will surely store the money for a rainy day, or invest the money so it earns. The US Govt. gave away trillions of dollars that could have at least, if not given away, been earning them money, or if given to us, help us stablize our own financial situations and allow us to spend our incomes more readily, thrusting the economy upwards. Oh Well, Obama missed the opportunity to make his presidency more than the failure history will tell of.

Now on to Gold. We saw a $30 price drop yesterday that was caused by a strong dollar. Apparentley there was no technical damage or massive selloffs. I am still waiting to see if many will consider this a buying opportunity and drive prices back toward $1400 or not. Alot of gold skeptics are jumping on this, claiming this is a bubble or a bearish market now. I doubt it will have much lasting effect. If you read my post earlier this week, I was ranting about Uncle Sam and the Fed and how they struggle to keep making mistakes that will ensure gold has quite some time left at the top of the charts.

I also called for stocks to have another collapse and we saw a hint of that yesterday also, as Bank Of America may be forced to buy back it’s bad mortgages it sold off to investors. Could this be a trend where banks will be forced to buy back it’s bad products? I think it is just an eye opener that what is done will come back to haunt if not done the right way. That means we have alot of undoing ahead of us. I think most banks still have a long way to go to recover. We still do not know the extent to which they are at risk of failing. The mess is, all of these foreclosures and falling home values, and they can’t even write most people a mortgage to buy a home as they are near insolvent.

I wonder why more creative plans have not been employed. It is such a one way street with the banks. They give you a 30 year mortgage, and if you miss 3 payments, you are out. Hey, 3 out of 360 is not that bad. Work with the homeowner and cut their payment in half for 2 years or let them keep the 3 missed payments. The banks are being bullys and congress and washington back this. No one could offer a more simple solution. Hey, if you gave someone a loan that could not afford it, your bad, so make it affordable for them at your expense, not all of ours.

Anyway, Washington and the Banks are either too dumb, too numb, or just too arrogant to see the way out of this mess. They are merely prolonging it by forcing failed policies upon us. If anyone thinks Ben Bernanke is going to fix this, they should be given the presidency because apparently, we need more inexperienced nobodies in the White House. We have elected a bunch of sales people that peddle garbage.

If all of that is not bad enough, the White House invites Iran into discussions about the future of Afghanistan. There is a great plan, lets sit down with Taliban leaders and bring in the Iranians so they can all get together and exchange hatred for Americans and network together. Wow! That is a wonderful idea. Go ahead Hillary, now give out a few million in free scholarhsips to our top schools to the terrorists while your at it. Isn’t that what you usually do?

This is the first time in my life I am proud to say I did not vote for any of them. They are a big huge giant mistake. Meanwhile, China is signaling that it is raising it’s interest rates. Analysts claim it is to slow down or simmer their economy as it is doing so well and they do not want to end up like us. I think it is in response to the meeting last week in New York where Obama claimed they were keeping their currency unnaturally low. They probably looked closely at their options and realized that since we are the largest consumer of their goods, it will just fall back on us as we will simply have to pay more for their products.

So, the mess continues to spin out of control and no one in a position of power can see clearly that bandaids will not fix a broken limb. Hopefully, someone gets it before the next 2 years pass us by and we are in the midst of a depression. I think dip #2 is just ahead so brace yourself, don’t get too carried away buying gifts this holiday season, buy some Gold or Silver as a reserve and don’t buy into all of this recovery hype. Buy into the reality hype instead, it will be a safer bet in times of great uncertainty.

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About CT Gold Buyer
Owner of CT Gold Buyers in Wallingford, CT. and USA Gold Refiners.....

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