Is It Time To Default On The National Debt?
There is no question now that the left has abandoned all connection with anyone that would be considered a “normal” American. Their agenda is what they are driven by and America be damned! This is very unfortunate for ever day Americans, but it is going to drive the next surge in gold. I want to make one thing perfectly clear, I wish I could turn back the clock to the days when the American President was FOR AMERICA! Make no mistake, “The Community Organizer In Chief” is a Marxist/Socialist and America will bear the pain of the destruction of the capitalist system that he is delivering , for years after he has been removed from office!
It seems that the progressives will stop at nothing in their headlong push to destroy everything that America stands for. These ideologues look like they are playing “Twister” with the fabric of the American way of life.
The Most Dangerous Progressive?
Pelosi Hints At What Is To Come From The “Progressive Party”
Pelosi on the monument to the Islamic attack on America:
“There is no question there is a concerted effort to make this a political issue by some. And I join those who have called for looking into how … this opposition to the mosque is being funded,” she said. “How is this being ginned up that here we are talking about Treasure Island, something we’ve been working on for decades, something of great interest to our community, as we go forward to an election about the future of our country and two of the first three questions are about a zoning issue in New York City?”
Insanity Times Ten!
It is interesting that calls to investigate the funding for those proposing the $100 million “Cordoba House” have gone unheeded. In another development that seems to flaunt the will of the citizens of New York, New York’s Mayor Mike Bloomberg has described such an investigation as “un-American.”
Once again I would like to point out that we live in “Bizzaro Land”. Black is white, and up is down. Can we build a Temple and a Christian church in Mecca? Hell will likely freeze over before that occurs, but in the name of “fairness” we have to allow Hezbollah to build a Mosque at Ground Zero? Enough is enough! It is time to send the progressives back to political oblivion.
If you consider the last eighteen months of the “Community Organizer In Chief’s” regime, it is pretty clear that OBAMA stands for “One Big Ass Mistake America”!
With a huge amount of luck, America will wake up and throw these Marxist /progressives out of office in November.
WHERE DOES THIS PUT GOLD?
Gold is clearly signaling that inflation is in the pipeline. Heed this warning because Wal-Mart, the “EVIL CAPITALIST STORE” that brought you lower prices is turning the game, signaling inflation in the pipeline!
Wal-Mart Quietly Raises Prices
By JONATHON BERR Posted 11:30 AM 08/10/10
Wal-Mart Stores (WHT), which for years has touted its prowess at lowering prices, has been doing the opposite as it tries to bolster its bottom line amid stagnating sales.
A JPMorgan Chase (JPM) study of a Walmart Supercenter in Virginia found that the world’s largest retailer has raised prices by nearly 6% on average over the past six weeks,according to the New York Post. Reuters says it was the biggest sequential increase since JPMorgan started the study in January 2009.
Some Prices Hiked Over 60%
Some of the price hikes were considerably larger. For instance, the price of a 32-ounce bottle of Windex household cleaner jumped 50%, a 12-ounce box of Quaker Oats instant grits climbed 65% and a 50-ounce container of Tide detergent rose by more than 50%. A spokesperson for the Bentonville, Ark., company could not immediately be reached for comment.
The results of the price-hike study aren’t entirely surprising. Shares of Wal-Mart, which rose at the height of the recent recession, are down more than 2% this year amid lackluster performance at its U.S. stores, where same-store sales fell 1.1% during the 13 weeks ended April 30. When Wal-Mart announced a revamping of the management team overseeing these stores, including the departures of CEO and President of Wal-Mart U.S. Eduardo Castro-Wright and Chief Merchandising Officer John Fleming, current Wal-Mart U.S. CEO BILL SIMON bluntly said,
“our mandate is clear: increase customer traffic, make sure our products are relevant to our customer and never give an inch on price leadership.”
Unfortunately for Wal-Mart, keeping prices low is tough with less store traffic. To make matters worse, rivals appear to be doing better. Target (TGT) reported a 2% gain in July same-store sales, which are a key metric for retail investors. Kohl’s (KSS) reported a 4.1% gain. Wal-Mart stopped releasing monthly same-store sales figures for its units last year, so making an apples -to-apples comparison is difficult.
If America’s most powerful discount retailer is raising prices this dramatically, inflation is not only in the pipeline, it is already here. Inflation will move the price of gold up considerably as gold seeks to maintain its relationship to the true value of the dollar. If for no other reason, gold and silver should be held as a hedge against the inflationary tidal wave that is approaching.
Gold And The China Syndrome
Reality is a cold drink of water. The Chinese, who hold roughly $900 billion in U.S. debt, are convinced that the U.S. is going to to reduce its debt burden by devaluing it’s currency over time. Listen to “little” Timmy Geithner and “helicopter” Ben Bernanke. America be damned, we want our reparations, NOW! Pay off our friends and the rest of you can go to hell, or rather the hell that we are making for you.
Bullion Vault
Gene Arensburg 8-17-10
Mid-summer this year, China made it clear to anyone looking that they value gold and silver more than they do “paper”. Multiple news sources say that China opened the Shanghai Gold Exchange to more foreign involvement. China is encouraging its banks to finance acquisitions in the bullion sector. The Chinese command and control wants its business leaders involved in bullion projects across the globe.
China is also encouraging its citizens to own gold and buy silver. Bullion is available at government-run banks. China is paying premiums for raw ore to be shipped there for contract milling (or milling at discounted prices)…and China has shown its gold-loving hand regardless of their official protestations to the contrary.
So sound the klaxons for ‘China Forex Diversification’ and ‘China Embracing the Gold Trade’ – a new dynamic is unfolding in the bullion markets.
With China on the demand side – on the bull side of the gold market – who is going to take the sell side? It certainly hasn’t been Western central banks lately. Globally net-net, central banks have become buyers. We can say now there is a Chinese “put” under the bullion markets. That just means that bullion bears have less to work with.
You might want to keep that idea in mind as you look over the various indicators in the Western gold investment markets’ data pile. How on earth can anyone consider being bearish of gold when they are up against more than a billion potential buyers, so to speak?
The last paragraph is critical. China is on the move and will rapidly become the world’s largest and most powerful economy. The Chi-Coms have a lower , more business friendly tax rate than does the U.S. under the progressives. That is today, before the massive Obama tax hikes that are scheduled to start in January 2011!
The progressives that control all three branches of the U.S. government are determined to reshape America into the Marxist/Socialist utopia that has failed in Europe and everywhere else that it has been tried. Valdimir Putin, of all people, warned America not to go down this path because it had cost Russia dearly. Today, Russia is attempting to reject it’s state controlled economy and work toward a capitalist system. If only our leaders had the vision and strength to see the truth and the integrity to work to restore our freedom and restore America to its greatness.
What Is The Solution To The Predicament In Which We Find Ourselves?
The most obvious first step is to throw the progressives out of office, no matter which party that they are in. It is time for rational adults to take back their country before the the progressive “children” drive the country off the cliff into historical oblivion. Work is not a right, nor is retirement! Tough choices have to be made and they have to be made now, because there is little time left.
Three Good Reasons For Defaulting On The National Debt!
First, let me stipulate that I doubt that whoever we put in control of the government will have the wisdom to do the right thing. The political class is all about its own survival, not about ours. Citizen legislators have almost completely ceased exist. They have been replaced by “predatory legislators”. With that being said, here are three reasons why an outright default on the national debt would be the right thing to do for the country.
Number 1: As soon as the U.S. government defaults on its debt, investors will think long and hard before lending it any more money. This would immediately put the brakes on government expansion. Legislators would have to improve the economy if they wanted to spend money. They would actually have to improve the lot of their constituents before they could feather their own bed. What a concept!
Number 2: Defaulting on the national debt would cause the pain to be felt by the generation that created the debt, or more to the point, allowed their leaders to stray off course under their watch. This would free the next couple of generations to thrive and produce without the burden of debt that is being shackled to them under the present “kick the can down the road” government ruse.
Number 3: Defaulting on the national debt would punish those who lent money to the government and they would be deterred from doing it again in the future if the punishment was the loss of their investment. A government with limited funds is a government with limited power! Let the free market correct the abuses that the ability to print money allows the government to inflict on its citizens.
It is pretty clear that the U.S. will default on its debt in one way or another. The odds of doing it correctly with an outright default are relatively slim. They will do it the way governments always do, by trying to inflate it away. By destroying the currency they punish those that actually live within their budgets and those that actually save money. The debt will be defaulted on one way or another. The trouble is they’re almost certainly going to default on it through inflation, by destroying the currency, which is much worse than defaulting on it overtly.
Runaway inflation rewards those in debt and punishes the productive members of a society who have been saving and growing capital. It is not a pretty picture, but it is what is coming to America.
Two Ways To Avoid The Coming Tidal Wave
Holding physical gold and silver provides you with the means to avoid losing your wealth to the insidious tax of inflation. Every portfolio should have a percentage of savings held in the physical metals. The size of the position should be determined by your net worth and it should be added to on a regular basis. Once you determine the amount cash that you must have on hand for your normal and emergency needs, it is time to move the remaining “savings” into gold and silver to protect your wealth.
Gold and silver stocks are the way to speculate and generate cash in this environment. Mining stocks have lagged the rise in the price of the physical metal, but that cannot continue for to much longer. Gold companies are reporting record earnings as the price of gold rises. With real estate in the dumps, general equities struggling, bonds about to start heading down and the dollar facing a massive reversal, gold stocks look pretty solid based on their earnings. Their time is coming. It is time to get positioned for the run up that is coming.
Default is coming for the national debt in one form or another. Now is the time to position yourself to avoid being swept away in the tidal wave.
Till next time, good luck and good trading!
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
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The fact is no one really knows whats going to happen but we do have a general idea, politicians are very smart people who know what the consequences are from printing too much currency but yet they continue to do it.
Obviously its about staying in power but someone has to make the hard decisions, its becoming increasingly obvious Obama can’t make these decisions and the likely outcome for him will be only one term in office.
Look whats happening around the western world, voters have become disillusioned with major parties , the U.K has a hung parliament, only this weekend August 21, Australia went to the polls, again another hung parliament, its becoming a theme around the world.Quite simply governments are not delivering for the people, yes the people, the ones who actually vote politicians in.
As for China I believe they left their accumulation of gold too late, they know it, their pride was dented when India beat them to the IMF gold last year in my opinion, the good thing for investors like myself is that yes they have put a floor under the gold price, so people waiting at the station for gold under a 1000 again, maybe waiting forever.
Peter:
What a well thought out comment. I think you are right on the money and I have only one slight difference with you in regards to the part that says “…Obama can’t make these decisions…” I truly believe that he is totally aware of what he is doing and that he is doing it intentionally to weaken America for what is coming. He has traded a second term for laying the foundation of the Marxist/Socialist state that the progressives want in the future.
Hopefully America will see through their plans! We will get our first opportunity to judge the state of America’s will both this November and in November 2012.
Thanks for your great comment! I hope to hear more from you soon. Keep us updated on the political will in Australia.
Goldbug