PROBLEMS WHICH WILL KILL THE ECONOMY AND PROPEL GOLD -- AT SOME POINT
1. Jobs continue to erode and move overseas -- something like 9 million out of work now, and they certainly can't participate in the great American borrow and spend spree going on now to hold up the economy. This will only get worse as the service jobs are now eroding as well. I read that tech jobs that go for $50-$150 per hour are being gobbled up by India at $8 per hour -- and no benefits.
2. Lower taxes, tax rebates, low interest rates, cheap home mortgages, etc. has about run its usefulness. Of course, those with no jobs are receiving none of these benefits, and as that number increases, well . . .
3. 500 million trade deficit and 500 million budget deficit has the Fed now buying their own bonds to "balance" their debt. Funny how they can do this and it's legal -- sort of like the PE ratio on the S&P. Creative accounting is "legal" also, and lets them still not deduct options expenses or pension obligations. One set of rules for the "ruling elite" and another for the sheeple.
4. PE ratios are at historically high levels by just about any measurement, while insiders are selling stock like there is no tomorrow to the sheeple (or the "honest" managers of the sheeple's money). Why does CNBC not ask this question of all their corporate "guests?" "Say, Bob, if the economy is turning around and business is only going to get better and the stock market is going up, then why are all you elite, blood-sucking insiders selling your stock at a break-neck pace to all the poor suckers on the street?"
5. Interest rates can only go up, yet real estate keeps rising? Funny how Japan's real estate also crashed as their stocks did. Funny how Templeton says the same will happen in the US -- he's just a senile old fart, however, like me.
6. Manufacturing is operating at less than 75% of capacity. Guess this is why everything is on SALE with ZERO % interest and DELAYED payments for a year! They can't put off the inevitable forever, but what the heck. Just declare bankruptcy if the irresponsible, borrowing, increasing lifestyle gets too tough. Screw everyone else -- I deserve it. Gotta look out for number 1. Hint -- when enough people are looking out for number 1, they end up in a big pile of number 2.
7. Retired people with their money in fixed income will soon get sick of the manipulation trying to get them into stocks at historic prices. Look for major problems here.
Arnold wins, and the country rejoices. Only because the other side were complete crooks. What probably happened was tons of votes by younger, previously non-voters, thinking they were voting for the "Terminator." This is the current mindset in America. Two political parties who think they are a special elite class. The masses are expendable. Combine that with a mass who does not want to work, can't find work, or doesn't have the brains to work. Both groups borrowing money as much as they can. No one concerned for the generations that come after them. This is how empires fall! The Democrats are mostly scum, so people will be fooled into complacency while the Republicans head the US towards a dictatorship. Some scoff, but we are only one major event away from this.
The one positive should be a flight to GOLD/SILVER at some point, and that is only because there will be nothing else to run to. The volatility wears on me (Jim knows this), but I'm trying to keep my eyes on the goal.
I remain,
SOROS |
