Goldman Suchs

Someone pointed out to me recently that I have not written any new content on my blog in a long time. Yes, this is true. For one, I normally get much busier in the colder months as everyone is trapped inside and has the burden of paying for more energy in the form of heat, plus extra expenses such as christmas, and so on. Therefore, it becomes my busy buying season. By the time I get home, I typically work on my websites and fall asleep before I get to my blog.

On the flip side, I often oppose the policy and direction of our past few Governmental administrations and especially monetary policy so I often wonder if this will piss off the undeserving powerful heads of our once functional enterprise and end up causing myself harm in some way.

Oh well, too late for that. I think it is now a norm to be a critic of the political machine that is only good at kicking the can further down the road just past election season. That is all we do now. For 2 years, we chip away at the mountain of problems facing our children, and for the next 2 years, we cover up the mountain with another mountain of lies and promises that will never see the light of day.

So I already know you are saying, what does this have to do with precious metals? Well, I am leading up to make my case for $2200 Gold &$160 Silver. I always say that Gold & Silver should have reached their new CPI Adjusted peaks late last year, but as always, the FED inflicts it politically motivated policies on us to stretch the walls of the dollar bubble past an election cycle to ease the pain of panic and reality. Once again, QE is the latest monetary policy to do just that. Since we are unable to lower the interest rates, which in my opinion it would be better to offer a negative rate, in other words, pay people to borrow money, they

are at a zero rate already. Instead, they print more money to buy back their own bonds and financials, in effect increasing the amount of cheap or free money available to the banks. This is in hopes to stimulate the economy by way of easing the psychological effect a bad economy has on consumers and the ordinary folk who do not understand much in the way of finance.

Well, to those who lack understanding, QE is not working. QE has failed. The economy is structurally getting worse, not better. Yes, stocks have rallied. But that is a given result. Creating more money will trickle back to the large companies and increase their revenue streams in the short term. That money makes its way back to the executives and the banks, but not the main street households that need it. The extra money is holed up in savings accounts and by banks that are short on offering loans as they fear they will not get paid. Lets face it, paying a mortgage is no longer high on anyones priority list. The people in good financial standing no longer trust the banks, and the people on the other side, they no longer trust the banks. It has become a world of the consumer versus the bank. It is all take and no give when it comes to banks these days.

So, being that QE is the final tool in the FED’s arsenal of printing presses, all that is left is the fall from the cliff. We have prolonged this painful part of our economies cycle by propping up gone bad institutions and screwing with capitalism every possible way.

It has been my theory all along that we should have let the organizations that created the poison swallow it and succumb. In other words, alot of banks should have failed, alot of big companies should not have been bailed out. They took too much risk and should have been left to perish. In a normal economic cycle, their assets would have been bought up by the organizations that did not take the poison, that were still in a strong position, and new companies would have been developed that should have led our way out of this mess by hiring and training new employess and on and on.

So back to the can kicking theory. We essentially paid trillions fo dollars to force the problem ahead of us and stretched its walls to create a much larger problem ahead of us. I think we are reaching the point of facing that problem in late 2012. You will see inflation, rising interest rates, double digit unemployment, not counting the folks that have given up on the job market, another stock market crash, and another round of bank failures. The latter is why banks are not giving money out, they need to have a reserve to survive the coming crash and it’s really that simple.

I hate to add fuel to the fire but I see it no other way. We are facing too many problems and all of thats left are tough decisions. As a nation, we are in bad shape. Too many do not contribute and simply just take. Our government bottoms out in areas of shallow problems and has yet to face the real problems. The current administrations biggest move has been health care reform. It wasn’t even reform in any sense, it was simply passing off the health care to private groups, mainly insurance companies, forcing everyone that works to pay for it, and those who do not work to have it, paid for by the working sick people who are tired as it is. Health Care is the straw that is going to break the backs of hard working Americans. There is just no way for middle class families to afford this.

Now, the black factor, OIL. I am looking at $7 at the pump by summer 2012. We are simply running out of oil. There are too many emerging economies depending on oil. We are still driving SUV’s. We still heat our homes with it. All the money spent on green energy is BS. Changing light bulbs does not change the fact that OIL is a scarce resource that is expensive to aquire via mining. We have not lessened our consumption or embraced an alternative renewable energy source. Also, Look at the Gulf of Mexico. Look at Egypt, Libya, Tunisia, etc. There are big problems ahead for OIL and the USA is not on the winning end of that measure.

Another addition has been the lack of  budgets for local governments. They are out of money. This puts more jobs at risk. In fact, many more jobs. Think of all the people employed by local government, the ones too that receive pensions and health benefits that don’t even work any longer. That’s alot of mouths to feed when you are flat broke! How is that going to play out? MICHIGAN!!

It is all painful. I have not heard much lately from either side of the political spectrum. I see alot of Charlie Sheen #WINNING. I do not see Obama #WINNING. Boehner is not #WINNING. The Tea Party is Not #WINNING. There is no one taking the lead here. Charlie probably has as good a chance as anyone of getting us out of this.

I truly believe we need an extraordinary miracle to turn this around. That, or simply everyone needs to contribute by way of working, learning, and more working. We need to reform education, not healthcare. We should have free college and better programs for our children so they can compete with the work and labor forces around the globe.

Another thing, give the border patrol guys some damn guns. That is just stupid. Bring our troops home, invade mexico, give all the drugs to CHARLIE for his new reality show, and stop this ridiculous no gun policy. So it is now OK for mexicans to cross the border and kill us? Since when is it ok to come to America and kill anyone? Why then spend so much money on DEFENSE if you can simply cross the border with an AK47 and kill people, including our guards armed with bean bags??? Do you think that Al Queda and WMD’s aren’t on their way to Mexico??

So forget abouth health care. You live, you die, that is given, it is what you do in between those times that count. Government should have zero policy on either end and should only exist in the middle to make that part of your journey better. If it is making it worse in anyway, then it is not doing its job.

 

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