Buy gold, buy gold, buy gold. - Marc Faber

[Andy62]

Politicians are running the financial markets- it will be a disaster.

http://www.cnbc.com/id/35707348

[jonlclay]

Gordon,

Interesting the comment about how the US Govt will have to bail out CA & IL. If people were smart they would realize that Obama came from a state that we now will have to bail out. That should tell people something about his policies!! I myself have not invested in gold, but I may need to start.

Jon

[MikeNY]

I liked what Dr. Faber wrote, but think there are problems in China and India. Jim Cramer just posted this yesterday http://www.cnbc.com/id/35691217 entitled "Why Overseas Investors Are Buying American".

I think a better first buy is ammo for your shotgun, pistol and rifle. Soon you might have to be able to protect yourself and your neighbors from rampant crime, home invasions, robbery, car jackings, lawlessness and riot; these thing all have happened in Argentina. The US is turning into the new Argentina and the working class will be driven into dire poverty as costs go up and people are hungry in America. There will only be the super rich and poor people in the USA under Obama's Fascist Socialist Regime. Obama is using the Socialist plan that tried out in Argentina first. Gold might be a trap, I am not sure if it is a buy right now. Over the long run with Inflation you will want Inflation Protected Bonds, Ultra Short Bonds and stocks. Stocks are killed by inflation but then recover and inflate with the currency.

Here is Cramer's article: "Sure, President Obama, with his characteristic eloquence, killed the market on Wednesday with yet another press conference about health-care reform, Cramer said, but stocks were “roaring” before that. Which is somewhat surprising given that we’re staring down everything from budget deficits and state defaults to millions of unemployed Americans and the threat of higher taxes.

So how then are the US markets holding up so well?

Because other countries “are even more pathetic parodies of finance than we are,” Cramer said. “We are the lesser of 10 evils.”

Consider the competition: Investors are just waiting for China’s asset bubbles to burst, with Jim Chanos, a legendary short seller, calling the country – and Cramer was paraphrasing here – one of the greatest shorts on earth. Japan is “a no-growth economy that will stay no growth,” the Mad Money host said. India is fraught with inflation. Brazil seems overvalued, and who knows what would happen if it adopted the socialist policies of neighbor Venezuela. And Cramer doesn’t see much opportunity in Mexico or the Middle East either.

As for Europe, that “used to be the logical place to hide,” Cramer said, but not these days. Not with the PIIGS and the STUPIDs. Cramer quoted a research note that likened the currencies of Indonesia in 2006, Argentina in 2000, Mexico in 1994 and Russia in 1999, all of which brought the market down at the time, to the euro today, as Greece, et al., buckle under their debt loads.

What we’re left with then is the US. As troubled as we may think we are, Cramer said, foreign investors seem to love the gridlock in Washington. They love that Obama is intent on ramming through health-care reform, even at the expense of his own party. They love the Republican comeback that it all but guarantees come November. All of this lays the groundwork for uninterrupted business, and that is great for stocks. Hence the influx of cash from overseas.

Maybe this raises concern over a rising dollar? Cramer said he doesn’t care. Better that than a declining currency like they have in Asia and Latin America. Besides, the 1990s bull market moved in lockstep with the dollar the whole way up. And while there’s no doubt Canada will siphon off some of the money flowing West, that country can’t take it all, especially considering the number of quality American firms in operation.

Cramer does always recommend owning some foreign stocks as part of a balanced portfolio, but right now there are fewer and fewer countries worth buying. So stick with the US for the foreseeable future. And think about what would happen to our equities if the employment situation in this country improved. Stocks would shoot “to the moon,” Cramer said.

The US is the last man standing. And while that’s a “crummy Bruce Willis movie,” Cramer said, it’s a “great thesis for a next leg of the bull market.”"

[Andy62]

California is a great state with outstanding natural resources and some of the smartest people in the world in their population including Silicon Valley. It has been totally ripped off by self serving politicians that have built up a huge bureaucracy of over paid public employees {many over $100,000] with outrageous fringe benefits.The shortfall on the emtitlements for those public employees is estimated at $40 trillion to $70 trillion. It will be interesting to see what Obama does with this and whether he will use the power of the Whitehouse again to circumvent the law as he did with the General Motors healthcare fund.

Illiinois and Chicago are a cesspool and the Daley Machine of Chicago is one of Obama's biggest backers and handlers along with the Nazi sympathizer George Soros.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x7730377

[jonlclay]

Gordon,

Not many people who live in CA realize the amount of unrecognized liability they have. This was a major reason Vallencia (city) went bankrupt because they are paying not just the current employees but also the past employees and soon a second set of retirees (the current employees that will retire). So they will be paying 3 work forces out of their state budget. This is not sustainable.

Jon

[Andy62]

Here in Oregon where I live a lot of cities have unfunded pensions for fire and police and that is true of many municipalities all over the country. Obama has to know that and is waiting for his chance to sweep in and take control - Chicago Power Politics. The states can't print their own money like the Federal Government can. Think of Obama as the lion waiting by the watering hole and sooner or later that zebra is going to need a drink. He does have "killer instinct" after all!

[MikeNY]

$40 Trillion to $70 Trillion Dollars is a lot of money, and a liability that will crush the State, California is just the first zebra States Obama will feed on.

Obama at the watering hole waiting to strike the weaker zebra State sounds like our Chicago Mafia Lion in action. Its Feeding Time at the waterhole and Obama is a hungry Chicago Democratic Machine Politican Socialist. There will be no mercy as he tears each State apart.

I have friend's that felt Obama would be the last US Presdient when he took Office. Maybe he'll change the name of the USA to the United Chicago States?

[Andy62]

I am sure that is his plan based on his MO,but it is a dangerous game and a lot of pieces have to fall in place to pull it off. The healthcare and everything else is just a diversionary action - "misdirection" is the secret of the magician and the politician.

[MikeNY]

Gordon you have more vision that I do; all this time I thought Obama's real goal and the real game was Cap & Trade and the $1 Trillion Dollar per year Tax (for just the first year and costs rising faster than the rate of inflation) that will be divided with 85% to Wall Street and 15% to the Federal Government. It looked like Obama and his Wall Street gang were after wealth and enriching themselves further with George Soros, the Sandlers and the ACORN Nazi Party. Looks like Wall Street Obama might have had bigger goals all along! Maybe the critics are right and Obama is just a Chicago Mafia Fascist trying to bring Socialism to the USA

[Andy62]

Mike, You could be right. This could be the ultimate deception- the ultimate con. I had a date with a woman that I met on the internet who said that Obama was the Anti- Christ. I don't go that far,but Obama may be the ultimate fraud - personal power and wealth in the name of idealism.

[MikeNY]

Gordon $1,000,000,000,000 (One Trillion Dollars) is a load of money! The Obama's intend on milking the USA dry to enrich themselves and thier friends!

Just 85% ; $850 Billion Dollars for Wall Street just in the first year alone (it will rise faster than inflation) is enormous wealth for Wall Street Obama and the Chicago Democratic Mafia!

I've thought all along that George Soros, the Sandlers and GE (along with it's CEO Jeffrey R. Immelt ) and Obama were all after personnel wealth! That is what being a Socialist is all about, the money, Obama is all about the Money! Jeffrey Immelt alone will reportedly make an extra $100 Billion Dollars off Cap & Trade if it passes! That is huge, even if there is inflation. Dollar Bill Obama will be rolling in Money, he and his wife already think the US needs to be destroyed! The Obama's intend on profiting from it like good Socialist Progressives! Count on Obama to be greedy, grasping and stupid and you'll never go wrong.

There might be more money made crashing the USA than they can ever make in honest business! Soros is a genius thriving on the pain of others! Soros looked for the one man with no morale fiber at all and he found the perfect tool in Obama!

[MikeNY]

Obama Admin. Caught Red-Handed Working with Big Wind Energy Lobbyists, Misleading America People.
Bombshell: Assistant secretary of energy Cathy Zoi and her team worked hand-in-hand with big wind’s lobby – AWEA http://canadafreepress.com/index.php/article/20637

Here is an excerpt for each green jobs Spain lost 2.2 jobs!
"BACKGROUND: Last March, Spanish economics professor Gabriel Calzada published an academic analysis that showed for every green job created in Spain, 2.2 jobs were lost as an opportunity cost. This finding contradicted the Obama Administration’s claim that massive subsidies for wind and solar energy would create jobs. "

[Andy62]

I think that we have "broken the code" and figured out the plan.

[April]

http://www.iamthewitness.com/DarylBradfordSmith_Bankers.htm

quote:

1915 J. P. Morgan became the sales agent for the, "War Materials Board," to both the British and the French engaged in World War I, and becomes the biggest consumer on the planet, spending 10 million dollars a day. Furthermore, President Woodrow Wilson appointed banker, Bernard Baruch, to head the, "War Industries Board."
According to historian, James Perloff, both Bernard Baruch and the Rockefellers profited by approximately 200 million dollars during World War I.

A lot of people believe the key to an effective money supply is to ensure it is backed by something of worth such as gold. However, who do you think would control that gold? As Republican, Charles A. Lindbergh stated this year,

"Already the Federal Reserve Banks have cornered the gold and gold certificates."


Anywhere you think it is safe to put your money, THEY are alreay there. THEY are everywhere, hiding behind a dizzying maze of corporate entities, one owning another owning another owning another, etc. so they are completely untracable. But if you could get back to the source, THEY are it.

This is a novel idea. How about using your money to get yourself in a position where you don't need to live using money anymore? GET OUT OF THE MONEY SYSTEM. Barter, trade, etc. Subsistance farming. Buy a plot of land, a few cows, some chickens, etc. Of course, the "don't haves" will raid you once they find out. It is back to the old west. Vigilanteism (spelling?).

On the other hand, I recently heard a preacher point out that somehow all the prophets who lived in the wilderness were fed, either by ravens or by some other means. I have no money to buy guns, a farm, or anything else (especially not gold), so it is up to Him to take care of me.

It makes me sick to think that every dollar I spend goes to THEIR profit. I am really sour now on "shopping", not that I ever liked it to start with.

[Andy62]

http://www.cnbc.com/id/35693387

[MikeNY]

Just saw on CNBC that Califronia is the new Greece. That California going bankrupt will effect the Bond Market in Muni's and freeze up lending to States. California is just the first chip to fall. Gordon just ready your article on Bill Groos, the new normal might last 10 years in the USA, high unemplyment and continued programs to keep the US afloat.

Looks like Obama keeps throwing good money after bad, what makes jobs is tax cuts not higher Obama Taxes! Obama's war on small business will cripple the USA but then Obama thinks that is what Wall Street wants. Obama needs to just stop the crap and listen to Paul Volcker! Obama making money off this crisis is just going to backfire on the Socialist Democrats in the end.

Obamacare will be one more expensive entitlement that fails. Cap & Trade is all about Wall Street Obama & friend;s making money. My bet is if California fails there is Big Money in it for Obama, Soros and the Gang. Everything they do as Gordon noted long ago is all about the Chicago way, making money off each crisis!