Tag: obama

Obama and Geithner’s Insidious Plan to Hand the Entire Housing Industry Over to the Banks

Filed in Gold, Gold Spot Market, o, obama by on February 20, 2011 0 Comments

‘A most dastardly deed occurred last Friday when the Obama administration issued a 29-page policy statement totally abandoning the federal government’s time-honored role in helping Americans achieve the goal of homeownership. Instead of punishing t…

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An Egyptian Firebrand Away from $400 Oil

Investors are remarkably sanguine about the events in Tunisia and Egypt… Oil actually fell yesterday to $88.27. The Dow has been on a hot streak and is up again today — as it has been for months — to 12,149. History suggests events in the Middle East go from bad to worse. According to the Democracy Index put out by The Economist , there are no “established democracies” in the region. Israel is listed as a “flawed democracy.” Lebanon and Turkey were listed as “hybrid regime,” along with Palestinian territories, Pakistan, Armenia, and Iraq (Lebanon is now run by Hezbollah). The rest are categorized as “authoritarian regimes.” The last free vote saw Hamas sweep the Palestinian elections in 2006. Hamas started as an offshoot of the Muslim Brotherhood in Egypt. On gaining power, they started lobbing rockets into Israel. In 2007, the Battle of Gaza was fought between Hamas and the Palestinian security forces. Hamas is listed as a terrorist organization in most G-20 countries. In the aftermath, Israel and a Hosni Mubarak-ruled Egypt imposed an economic blockade on Gaza that is still in effect. Population and scarcity Jack Andrew Goldstone points out in his book, Revolution and Rebellion in the Early Modern World , that all revolutions from the French to the Russian, from China to Japan, occur where there is a rising population and diminishing resources coupled with an inflexible ruling party. (Note: The population in Russian doubled between 1850 and 1913.) Today, the Arab world has the fastest growing population on earth— and the youngest. In Yemen, the average age is 17.9 years with a birth replacement rate of 2.71, which puts it at number 23 in the world. The United Arab Emirates is in fourth place with 3.56, Kuwait is fifth with 3.50, the Gaza strip is six with 3.29. Libya, Chad, Egypt, Oman, Syria, and Iraq all make the top quintile. These young people will be the next rulers of the largest oil-producing region within the next ten years — mostly because all of the current leaders are in their 80s… with the exception of Qaddafi…

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How Would You Grade President Obama’s State of the Union Speech?

Filed in gld, Gold Spot Market, o, obama, sov by on January 26, 2011 0 Comments

The president called this time “our generation’s Sputnik moment.” “Half a century ago, when the Soviets beat us into space with the launch of a satellite called Sputnik¸ we had no idea how we’d beat them to the moon…” Obama said. “But after investing in better research and education, we didn’t just surpass the Soviets; we unleashed a wave of innovation that created new industries and millions of new jobs.” Were you inspired?

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Obama’s TSA pat-downs joke infuriates ACLU

Filed in gld, Gold, Gold Spot Market, o, obama by on January 26, 2011 0 Comments

During his third State of the Union address Tuesday night, President Barack Obama cracked a joke about TSA pat-downs – and earned an immediate rebuke from the ACLU.

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Faceoff! States tell feds to back down

Filed in gld, Gold, Gold Spot Market, o, obama by on January 25, 2011 0 Comments

8 already considering plans simply to ignore Obama’s health-care takeover

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Raising the Debt Ceiling

Filed in BP, Debt, euro, european union, Gold, GOld juniors, Gold Market, lead, o, obama, silver, stimulus, target by on January 21, 2011 0 Comments
Raising the Debt Ceiling

The United States government seems to enjoy spending our money with the zeal of a rap star. They like it so much, in fact, that they’re going to need a little more from you… Last week, Treasury Secretary Timothy Geithner warned Congress that this year’s statutory limit on federal debt will be reached as early as spring — between March 31st and May 16th. Geithner alerted congressional leaders saying: Even a very short-term or limited default would have catastrophic economic consequences that would last for decades. For these reasons, I am requesting that Congress act to increase the limit early this year, well before the threat of default becomes imminent. I don’t buy it. We’ve already been down this road before… Bush’s TARP and Obama’s Economic Stimulus effectively did the same thing. And look what happened: more than 90% of the money went right to the banks, where it still resides. Bush and Obama did their jobs. They protected the banks at all costs. And that was, of course, the design from the start. To bring confidence back into the U.S. system, we’re simply going to have to cut out the reckless spending. This would point America in the right direction and reduce the risk of a default or devaluation that looms in our near future. Unfortunately, this does not appear to be the road our politicians want to take. ~~SIGNUP_WD~~ The trouble with this train wreck of a debt picture is that rates are going to have to go higher in the near future. That’s because the folks who have been buying our debt over the course of the last 30 years are no longer interested in our new debt offerings at current interest rates. Not only are they not interested in buying our new debt; but they’ve decided to dump the Treasury paper they already have. This puts the U.S. in a tricky situation. To make our obsessive borrowing more attractive, we’ll have to continue to raise rates. This is where things really start to go south… And the whole of society could fail because of unsustainable spending and debt scenarios at every level of government worldwide. This was typical of every other empire our world has ever known before their ultimate collapse: the Spanish, Greek, Roman, and British Empires all came to an end because they spent themselves into oblivion— just as the European Union, England, Japan, and the U.S. are doing today. Just consider how truly desperate some situations have become… Last week, the state of Illinois increased personal income tax by 66% and corporate income tax by 45%. These increases are designed to address a $15 billion state budget deficit that lawmakers said was leading the state into insolvency. How long is it before we start seeing headlines that include “State Bankruptcy”? On its current path, the United States could not possibly meet all of its future obligations. And the end game could mean collapse. That means as an investor, you need to get your ducks in a row. The

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China’s too big to be bullied by the US

Filed in Gold, o, obama by on January 19, 2011 0 Comments

In Tuesday’s summit with Hu Jintao, Obama must recognise new realities – however unpalatable.

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Weekend: Don’t Buy the Hype Behind Facebook

Filed in BP, Gold, GOld juniors, gold-stocks, goldman sachs, lead, o, obama, target, ubs by on January 8, 2011 0 Comments
Weekend: Don’t Buy the Hype Behind Facebook

Welcome to the Wealth Daily Weekend Edition— our insights from the week in investing and links to our most-read Wealth Daily and sister publication articles. See you around, Mark Zuckerberg… You may be Time ‘s Man of the Year for 2010, but I have decided to “de-friend” you. Your $50 billion network has been an occasionally interesting diversion, but I’ve decided it contains virtually no real genius. Once I had taken a few months to burn through the nostalgia effect, I knew your days were numbered— especially when I got tired of spying on that ex-cheerleader. In the end, all I learned was that she shopped quite a bit, watched way too much reality TV, and was obsessed with creating a really cool but imaginary farm. I also learned that sometimes the best roads in life are the ones that begin with a sudden detour. As it turns out, getting jilted in that Burger King parking lot in ’79 wasn’t so bad after all… So, a few weeks before Christmas, I announced to my 253 friends that I was going cold turkey. I was going to delete my Facebook account and go dark again. Sunrise or sunset? What surprised me as I said farewell to my network of friends was how many other people said they were thinking of doing exactly the same thing… Facebook, all of them seemed to say in one way or another, was a pretty poor substitute for the “real thing.” That’s when I realized the Facebook phenomena has probably peaked. (Of course, seeing Zuckerberg’s freckly mug on the cover of Time was its own clue. Say what you will, but the cover curse has claimed its fair share of victims.) But on my way out the door of the social media world, I learned the vampire squid was headed in. And in a way that only a stock jockey can, I laughed my fool head off when I realized some more sheep were about be shorn. The hype machine was shifting into overdrive. It was proof, I thought, of the old saw, “Wall Street people learn nothing and forget everything.” I mean, didn’t anyone remember the day Rupert Murdoch bought MySpace at its peak for $580 million? Five years later, I’d bet that’s one he’d like to have back. But that’s the nature of this type of business. It’s littered with the corpses of the last “next big thing.” Let’s face it, Facebook is a great name— but the fact is its most basic reason for being is imminently repeatable. As I type, thousands are undoubtedly planning the next social media arena. And eventually, someone will pull it off— the same way Zuckerberg did when he knocked off MySpace. Even still, Goldman Sachs took the plunge because they know they will turn a nice profit when this one hits the IPO circuit. According to the deal, the Wall Street powerhouse has invested $450 million in Facebook, while Russian investor Digital Sky Technologies added an additional $50 million. That values the social networking platform at cool $50 billion — more than any other entertainment conglomerate with the exception of Disney… Walt’s old firm still tops Zuckerberg by $21 billion. Peak Facebook But if history is an indicator, I’m guessing Disney’s spot at the top is as safe as it comes, based in part on something my friend Laura told me over drinks. When I asked her if she expected to be trolling around on Facebook 20 years…

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Obama’s Next Bungle

Filed in BP, dividend, economy, EPS, euro, Gold, Gold Market, inflation, o, obama, target by on January 3, 2011 0 Comments
Obama’s Next Bungle

Certainly! And how…; You increased the price of wheat you sell us by 300%, and the same for sugar and cement…; You buy our crude oil and sell it back to us, refined as petrochemicals, at a hundred times the price you’ve paid to us…; It’s only fair that, from now on, you should pay more for oil. Let’s say ten times more.” — Shah of Iran, 1973 In the early 1970s, the oil producing nations in the Middle East discovered the power in crude oil and began hiking the price. On October 6, 1973, Syria and Egypt invaded Israel. This action was the equivalent of throwing water at a grease fire. It made a bad situation worse, and the price of oil jumped from $2 a barrel to $13. This created a decade of economic malaise in the United States, destroyed the future of the American muscle car, and produced negative returns for the stock market… There are indicators that we are heading for a surge in the price of oil again. It’s hard to imagine the price doubling to $184 a barrel— much less rising by a factor of five, like it did in the early 70s — but it could happen. In fact it is likely… and you’ll want to leverage the move when it happens. Price Change Dividend Dist. Rate Total Return Inflation Real Price Change Real Total Return 1950s 13.2% 5.4% 19.3% 2.2% 10.7% 16.7% 1960s 4.4% 3.3% 7.8% 2.5% 1.8% 5.2% 1970s 1.6% 4.3% 5.8% 7.4% -5.4% -1.4% 1980s 12.6% 4.6% 17.3% 5.1% 7.1% 11.6% 1990s 15.3% 2.7% 18.1% 2.9% 12.0% 14.7% 2000s -2.7% 1.8% -1.0% 2.5% -5.1% -3.4% 1950-2009 7.2% 3.6% 11.0% 3.8% 3.3% 7.0% $5 gas by the Fourth of July Over the weekend, former president of Shell Oil John Hofmeister predicted Americans will be paying $5 for a gallon of gasoline by 2012. He blames growing global demand for oil, tighter supplies, and inadequate responses by the U.S. government. Here’s more of what he said: If we stay on our current course, within a decade we’re into energy shortages in this country big time… Blackouts, brownouts, gas lines, rationing — that’s my projection based upon the current inability to make to …

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Rev. Sharpton Calls for FCC Hearings On Talk Radio

Filed in Bank Gold, gld, Gold, Gold Spot Market, o, obama by on December 21, 2010 0 Comments

Kurt Nimmo | Federal agency encouraged to go after Obama’s enemies.

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Debt Riots Break Out in Greece

Filed in AMAG, BP, Debt, euro, Gold, GOld juniors, inflation, lead, o, obama, silver, target by on December 16, 2010 0 Comments
Debt Riots Break Out in Greece

Today is the anniversary of the Boston Tea Party. In Greece, demonstrators staged a protest of their own. Thousands took to the streets yesterday, rallying against government cutbacks and corruption. The protests started out as peaceful affairs; by afternoon, things had gotten nasty. When the mob arrived at the Greek Parliament building, they spotted a well-known politician, Kostis Hatzidakis ( pictured right ). His fellow Athenians proceeded to stone the former MP. That’s right, they stoned him. The politician survived, but Greece and the EU may not. Not as we know them anyway. The riots were violent, as shown in this footage . Riot cops can be seen clashing with large groups of protesters. Gov’t troops launch volleys of tear gas at protesters, who are busy launching their own attack— a barrage of Molotov cocktails. In another display of populist anger, English protesters attacked a Rolls Royce carrying Prince Charles and his wife last week. Some in the crowd could be heard chanting “off with their heads”. The Royals escaped unharmed, save some damage to their Rolls Royce; rowdy protesters did manage to bust out a side window and ding up the exterior. There are lessons for the EU and United States in this mess. Bond holders versus the populace Social unrest like this isn’t supposed to happen in the Western world. Yet, here we are. Confusion remains about about how we got here. This is primarily a story about bonds, and who owns them…

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Always Bet Against the Suckers

Filed in BP, economy, Gold, Gold Market, health care bill, o, obama, outperform, target, ubs by on December 9, 2010 0 Comments
Always Bet Against the Suckers

A successful investor always has their own proprietary economic indicators, ones they’ve developed through personal observations in everyday life. Less about mathematical models, these personal indicators are more about the deductions from gut instincts. In August 1999, I stumbled upon one when I took my family for a night of fun at Friendly’s restaurant. It was there at a dirty booth shoveling down dry, disgusting Clamboat Basket and chicken strips, that I developed my “Rudeness Indicator.” Here’s how it started… We were greeted by a hostess on a cell phone talking to her friend. A roll of the eyes and a long, exhaling sigh… I could tell she resented me for brining my family there and interrupting her day. It took 10 minutes for the waitress to come to our table. And all she did was bring water. Another 15 minutes went by before she took our order. During those 25 minutes between being seated and ordering, she walked around joking with the other waitresses, constantly fooling with her hair and nails. The poor manager in charge of controlling this circus was running around barking orders while bussing most of the tables himself. I could tell he was a day away from firing everybody— or quitting. The girls just tuned him out… The waitresses were beyond rude. They hated the customers. Lazy and constantly looking at the clock, they could’ve cared less about making tips. It was so blatantly absurd that I thought for a moment I was on a hidden camera prank show. And that’s when I realized Friendly’s was scraping the bottom of the barrel of the hiring pool. And I also realized they didn’t have a choice: They were stuck with this pathetic crew of staff. You see, this was August 1999. The stock market was booming. The economy was firing on all cylinders. The United States was at full employment. Anybody who wanted a job could get one within a day. In fact, attracting new employees meant handing out big signing bonuses, stock options, and BMWs. Remember those days? Well Friendly’s found itself in a similar situation, but with a different problem. Desperate to find live bodies to fill waitress positions, Friendly’s had to hire employees straight out of inner city neighborhoods and transport them 20 miles out to their suburban restaurants. It wasn’t just Friendly’s, either… I went to the nearby BJ’s, Sam’s Club, McDonalds, and even a Target, and I encountered rude employees. It was at this point I knew the economy was at a top. It couldn’t go any higher. Advertisement Cash in on $36,950 from the Nuclear Energy Renaissance in America …

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