“Government Motors”

March 30, 2009 Gold Stocks, Physical Gold, Politics No Comments

Buy gold while the opportunities are still there. “The Community Organizer In Chief” has taken over the management of GM and forced the removal of it’s CEO while protesting that he does not want GM to become a “ward of the state”. Buy gold while you still can, because the window may be closing!

“Government Motors” has 60 days to come up with a plan that meets the academic’s vision of utopia at the White House, while Chrysler has been kicked to the curb and ordered to merge with Fiat within 30 days. All hail the King! The King has spoken! Wouldn’t you love to be in Fiat’s position at the bargaining table? They can offer anything they want, knowing full well that the “King” will force Chrysler into bankruptcy if they don’t accept the deal. Ah, the beauty of central planning!

The markets are voicing their reaction to the demise of capitalism, while they still can, by voting with their money. The DOW is down 255 at 7,520, the NAS is down 46 at 1,498, the dollar is up .75 (.97%) at 85.89 and gold, is once again, being forced down as the people run to the “safety” of the dollar. Gold has bounced around, up, down and currently down $6.40 at $916.70.

The Birth of GM (Government Motors)

The Founders Of This Country Are Rolling Over In Their Graves!

The markets reacted to “The Community Organizer In Chief’s” forcing out Rick Wagoner as chairman and CEO of GM. The president said that his latest decree was not a

“condemnation” of Wagoner, but rather a “recognition that it will take a new vision and new direction to create the GM of the future.”

Once again, the administration let’s the truth slip out! Obama wants “Government Motors” to run in a manner that is simpatico with his leftist agenda. The “Community Organizer In Chief” went on to say,

“Let me be clear. The United States government has no interest in running GM. We have no intention of running GM.“

That is the bold faced lie! Me thinks that “thou does protest too much”. If you didn’t want to run the company you wouldn’t have forced it’s CEO out of office. If you had wanted the auto industry to remain in private hands, you would have helped it to go through bankruptcy and restructuring that would have allowed them to emerge as viable businesses.

President Obama said he was seeking “painful concessions” from GM and Chrysler. I would say that going from a private business to being run by the White House is a painful concession to say the least. Chapter 11 is the process that was designed to solve these kinds of problems, not government takeover. The President knows the terms of the state that he is ushering in and told us exactly what he is going to do when he insisted that he does not want them to become “wards of the state.”

G-2o Meets to Help The Proletariat!

The next item on the radar is the G-20 meeting which starts this week. Russia supports expanding the IMF’s Special Drawing Rights (SDR) to include the ruble, the yuan and gold. Senior economic aide Arkady Dvorkovich said,

“It would be logical for the set of currencies (that make up the SDR) to be expanded, and it could include other currencies, including the ruble, the yuan and perhaps others.”

Dvorkovich continued,

“We could also think about more effective use of gold and gold and forex reserves in this system.”

The Dollar Reserve Status In Doubt?

The odds of the G-20 supporting changing of the reserve currency status of the dollar are slim and none at this time, but it will be interesting to see how much time is spent on discussing the Russian plan. The days of the dollar’s reserve status are numbered. The only way it could remain the reserve currency is if it were to be linked to gold. While the dollar is continuing its run, the clock is ticking on it’s viability. Once the dollar starts down in earnest, gold will take off. That may not be as far off as you might think! This recession/depression is not slowing as we have been told. It is being deliberately extended in order to push through a new agenda under the cover of crisis.

The solution is out there and it is simple. Reduce the size of government, cut taxes on both the population and business and regulate the derivatives market after the companies that are being swamped by them go through bankruptcy Common sense is a non existant commodity in Washington, or perhaps solving the economic crisis has never really been on the agenda!

Buy Gold Now!

Buy gold bullion and gold coins on these dips in price. Buy gold stocks on the dips in order to leverage your investment. Most financial advisors talk about having 5% to 10% in physical gold, but I see that the financial system is circling the drain and would recomend 35% to 40% physical gold that you hold in your possession. We are entering very difficult times and preservation of wealth is going to be THE predominant theme. Take avantages of these opportunities as they come up. BUY GOLD, COINS, BULLION AND GOLD STOCKS ON ANY PULLBACKS!

Till next time, good luck and good trading!