The way the wind blows…

So there will be course altering events piling up this week.

The most obvious being Hurricane Irene. I often wonder if a large natural disaster is a positive or negative factor for the economy? I try and look back for specific examples. I cannot really decide. I remember in the nineties, we had Hurricane Andrew. It wiped out South Florida. It was really a driving force that helped pull us out of the recession at that time by putting hundreds of thousands back to work in construction and building supplies. Lumber and Housing prices nearly doubled a short time after, and that spawned the beginning of real estate price growth.

While in the short term it was devastating for local economies, in the long term, insurance companies and federal agencies shelled out massive amounts of money to the one group that often is responsible for economic recoveries, the middle class. By putting people back to work, and giving the working class a steady pipeline of dispursible funds, economies thrived. It was a great time. It was prior to China manufacturing everything, so alot of the money stayed put in America.

That is another big question mark. If Irene causes tens or hundreds of billions in damage, and the Federal Government and Insurance Companies hand off replacement dollars to repair the damage, how much of that money is funneled overseas and mainly back to China? We have to admit, we have a gaping wide hole in our pocket. In fact, isn’t it China and India that now have most of our jobs?

Which leads to the next big event: Obama’s vacation is coming to an end, and he is expected to return to Washington to announce a new jobs plan that will include a barackage of stimulus policies and government spending to encourage companies to hire and rev up the construction industry. For those of you wondering, I made up the word barackage, just because I am always fascinated with how the Media always coins a new word of the week, so that is my contribution.

Anyway, as I am not the biggest fan of Obama, I have to think that at some point, he has to get at least something half right. I give him credit for the Osama Kill and that is about all so far. So I gauge a 50/50 shot that the jobs plan will have some effect. If you order the upgrade of airports, schools, highways, etc., that will put people back to work and start the engines turning.

Now, the jobs plan is coming at a time when we face uncertain record damages from this storm. I can’t really say if this will derail the Obama Jobs Plan. I really don’t know how deep the insurance companies pockets are. If you remember back in 2008, when we were handing our money out to big companies, Insurance companies received some of that money. They, at the time, blamed other large storms as the reason they were broke. Could Irene be the straw that breaks their back? In the south where storms often occur, housing is cheaper and per square mile, it is much less dense and populated. In the Northeast, the costs per square mile can probably be as high as 10 to 20 times higher than the southern coastal areas.

The insurance industry employs a lot of people. If that industry begins to fail, it could be the final factor in pushing us over the recovery cliff into another deep recession. If the government is largely responsible for footing the damage bill, then that will lead us back down the road of inflation.

Now how does all of this effect gold? I do always like to point out that gold usually acts negatively to stimulus talk, and just minutes after the earthquake in Virgina last week, prices sank 5%. Historic events like Hurricane’s Katrina and Andrew did not help gold either. In fact, I believe the outcome of Hurricane Andrew led to a major fall in Gold as banks abandoned the yellow metal after filling their vaults with dollars, probably generated by Hurrincane Andrew revenues that flowed in for years after the damage.

Needless to say, it will be an interesting period. So much happening. An election on the way, lower oil prices, job stimulus on the way, and an very busy hurricane season on the way.

My gut is that the Irene is going to be a positive force in assisting unemployed make some much needed cash. Out of work carpenters will be able to work around the clock. They will have to lower their wages, but being that it is for a good cause, they will probably do it with a smile, and with any luck, long after the damages are repaired, they will continue to work for a fraction of what they used to earn.

Which opens a whole new window into this mess. How many people are out of work because they are unwilling to accept wages lower than what they made during the height of the housing market bubble? I mean, if you once were making $60-100 per hour because there was so much demand, in a recession phase, you have to be willing to take $15-20 per hour, but, most guys won’t even start their truck for that kind of money, as they claim it is beneath them???

So with that said, I am leaning toward the Hurricane helping a recovery. People back to work. Supply stores and even grocery stores make more sales. Insurance companies and Federal Government are forced to put money in the hands of the middle class, and the last one there is the #1 reason why it helps. The middle class, the ones who receive no stimulus, who receive no assistance, who carry the rich and the poor, will finally get a check in their mailbox.

Be Safe and if asked to do so, EVACUATE!



Are we there yet? I think since 2008 we have all been waiting for the bottom to hit. I think most would be surprised at just how far, deep, and wide the bottom really is. The momentum has been downward for a long time, but Government Bailout’s and Policy Intervention has stalled the bottom from surfacing. Instead of actually lifting our Economy, the Fed’s policies have just delayed the inevitable.

The best thing that could happen is that we get it over with. Let it all come crashing down. We need to rebuild and reinvent America. Every policy needs a look and tweak, Every aspect of our infrastructure needs to be redesigned to get us into the future and beyond.

We need to look at resource utilization closely, and adapt ways that will be sustainable to our growth as humans, and not just economically. We are all just sucking on the ice as it is melting around us. There is a very serious consequence to our lack of action and that is going to be a bleak existence of poverty, civil rioting and outbreaks, and lawlessness. It may be years away, it may be just month away.

None of us really know the extent of the USA’s financial systems. We do not know exactly how underwater we are. We have no idea how much money the Fed has printed to offset it’s debt. We could wake up one day, and the dollar will be worth pennies. Know that everyone is pointing fingers, it’s not long before someone spills the truth about our monetary system.

With less than 58% of our population over the age 16 having a paying job, it seems pretty bleak looking ahead. I would have to say that that number could easily turn to 35% in a short time. The momentum is gaining downward.

However frightening it is to most people, it may be just the thing needed to make us really look at outstanding issues we have for long ignored, and reshape our existence into something that is sustainable.

Now that the rest of the world is using our best practices and systems to get themselves ahead, it is time, once again, that we change the game and redefine new standards and practices for the future, not the past.

Gold is surprising as in overnight trading it gained upward of $1770 per ounce. This is the first time I have seen Gold surpass Platinum in value, showing that the slowing of the economy has spurred investors fears to an all time high. What is next we can not know, but be prepared for the worst, as it is definitely being served in the near future.

We are out of billion dollar bailouts and I expect the Fed Reserve to take a hands off approach as they have run out of tricks to bandage the wounds. Put your excess dollars into Gold and Silver, you can’t go wrong at this point.


Timothy Geithner Says “Standard & Poors Showed Terrible Judgement”, Uh, No Asshole! You have shown a lack of judgement. Obama has shown a lack of leadership by keeping you and Bernanke at the wheel!! Is the plan to just let it all crash & burn? Is it the aim of our political hierarchy to just spread poverty and despair around the globe, so that they can have control yet again?

It won’t happen, not ever again. Obama promised change, and he brought it like no other ever has. Politicians and especially Presidents, have always embellished terrible lies but none has ever broken the back of our financial system around the world. Even during the depression, we have maintained our credit rating.

We have just shown a weak hand amidst a Global Financial Crisis that will surely lower our rank and have widespread and longlasting negative consequences.

This is what electing an inexperienced uh, nobody, into our highest office has cost us. You can’t blame Bush anymore, you have just taken the title of WORST PRESIDENT EVER, EVER!!!

You asked for all of this Obama, You said you would fix it all! What happened to bringing home our troops? What happened to fixing the Job market? What happened to fixing the economy? You simply have not a CLUE what to do. There is not an ounce of practical wisdom to lead you in the right direction.

I always say, you can read all the books in the world, but if you do not have a common street smart sense, you are going to get no where unless it is purely accidental.

You can’t even blame the Tea Party or Republicans or Congress or Senate. Geithner has been harping for 3 years about the debt ceiling, but no once did he ever suggest we curb spending. Not One Mention!

#1 priority should have been to bring our troops home. What a waste of Billions.

#2 priority should be to stop giving our money away to other countries. We borrow money to give it away to other countries, STUPID!

#3 should have been to reform welfare and make it a point to have everyone ON DECK to contribute to the growth of our economy. Real simple concept, build factories all over the damn place. Do like China and build everything imaginable. We need skilled labor and new tooling to compete.

#4 Real Renewable Energy Projects: Make a billion solar panels and stick them everywhere. Borrow money to build a new solar and wind powered Grid across the country.

#5 Nationwide Wireless Network: Connect everyone so that way, companies can begin the painfull process of eliminating central offices and letting employees with desk jobs work from home. Why waste billions on Oil and Pollution and Traffic just to answer phones or talk trash at the water cooler?

#6 Eliminate Governement Jobs: Yeah, there are too many asshole chefs in the kitchen, we no longer need representatives in every little district. We should have a 4 or 5 party system and have voters register to a single party, and then elect officials to represent certain divisions of government. When their is deadlock and no progress, we vote again? If there are 5 or 6 people responsible for a particular department, and they make bad calls that have negative implications, then we vote again.


#7 Eliminate the 4 Year Election Cycle: Sorry, but if we have someone that is good at doing their job, let them keep it! The 4 year cycle just delays any real progress by having POLITICAL agenda at every corner. We need to come up with a way to eliminate people who hold office and fail either the economy, law, standards, or the public in general and at large.

#8 Eliminate Federal Law and Allow States to have their own laws and regulations: States could really benefit by having more control of how they spend on education, law enforcement, infrastructure, etc. Mandate federal standards for Food, Housing, and Pharmaceutical Standards. Let states decide things like Health Care, Drug Enforcement, Banking Regulation, etc.

#9 Eliminate Campaign Contributions PERIOD! Give each party a certain amount of money, Media Airtime, Open the debates to all parties…..We need Political Diversity to get back to being a leading edge country, we are stagnant and making zero progress by maintaining old fashioned standards and ideals.

#10 Free Community College to ANY US CITIZEN. DUMB is no longer acceptible.

#11 Take Mexico by Force and make it a State and You All Know Why, right?

#12 Legalize drugs and TAX THE HELL OUT OF THEM

#14 Make it harder to get a Work VISA and to even visit the USA, especially if you come from anywhere that HATES the USA. No Like Us, Keep The “F” Out, OK?

#15 Increase all duties for imported products, labor, etc. to level the playing field and use the proceeds to subsidize Govt. Funded Factories that will bid on contracts for various production of USA Made Goods.

#16 Wall Street Reform, No More Derivatives, Puts, Calls, or just plain out bets on speculation.

#17 Taking a Free Ride? You don’t get to vote. Sorry, but tired of people voting for handouts. If you have no PDP: Personal Domestic Product for a certain period of time, you should be considered inactive and only allowed a 1/4 % voting share or less.

There Ya Go Obama, You have about a Year to Pull It Off!

Now for the Good News: Gold Will Break $2000 by March 2012 and Silver Will be Looking above $70.00

Stock Market: DJIA should be bottoming out around 6200 Points.  Unemployment will breach 12%, not counting all of the people who have left the job market and undocumented workers. Expect plenty of Bank Closures by 2013 as there are just too damn many banks and not enough people with money.

My Last Comment For This Post is that the next time you want change, go to the mall, not the poles!!!