dollar

Five hundred billion more, freshly printed, absolutely valueless, dollars. It’s being fronted as a boost to the economy through funneling money to the mega banks, who will then presumably buy more of Fannie and Freddie’s marginal and junk mortgages in the form of securities and bonds.

What they are doing is absolute Keynesian garbage. People all over the country have used basic economics to figure out that flooding the marketplace with cheap dollars is going to create inflation, which may be a handy way to to retire some debt if you’re the government but, as usual, with total disregard of the effects it would have on the average American citizen.

Cheaper dollars = inflation, and if vast and rapid spending cuts are not undertaken by the new majority we may face hyperinflation. Memo to the new Conservative majority: We want the Fed and the over-educated leftists running the whole shooting match stopped. And yeah, we know you’ve got your agenda and yeah, we agree with most everything on it… as a matter of fact we insist.

This Fed thing needs immediate intervention. It’s the leftist straw dog line emerging here again… stimulating the economy. In fact, as has been proven time after time in country after country, it just doesn’t work.

Liberal economics do not create wealth. It does not promote security or prosperity. The result of Marxist economic policies invariably creates a pall of poverty and want, a degradation of life quality and the inevitable erosion of the moral fiber of the country. Better we fight the fight here and now. No compromises, no more, or else.

Semper Vigilans, Semper Fidelis

© Skip MacLure 2010

 Just about a week ago you heard most bobbing heads on CNBC talk about how great a strong dollar is and why its a safe haven etc. Those guys have no clue about economics and what is really going on behind the scenes.

Let me fill you in using simple terms:

1) Our country is essentially broke and has been for some time already. We are the world's biggest debtor.

2) We let all our manufacturing go overseas with int. trade agreements that mostly benefitted OTHER countries and/or our multinationals.

3) Congress is and has been in the pockets of lobbyists for some time now. All most do (there are exceptions on both sides of the aisle) is think of their own career and how best to partake in freebies distributed by lobbyists.

So, what we have here is a nation totally in debt and plagued by mismanagement and corruption thanks to ZERO oversight by SEC, FED, congress. Madoff, Enron, Marc Rich (pardones by B. Clinton after receiving a generous contribution by his wife for the library), the sub prime bubble ALL could be been avoided simply by ENFORCING THE LAWS WE ALREADY HAVE.  

Unfortunately Pres. Bush let totally incapable people do whatever they pleased until the train in the tunnel hit us all. Bernanke and Paulson are not a solution to the problem, they are the cause! They did absolutely NOTHING back in 2007 when things could still have been averted. Nobody dared tell banks they could not do this or that. Money talks and B.S. walks so the just watched on until the total meltdown. 

The rest of the world is figuring out that the emporor has no clothes and will think twice before handing over more billions to us that we CANNOT REPAY. When the current cycle of deleveraging has finished, which it just about has, watch commodities to head waaaaaay up. Within 6 months to 1 year you will really start to notice inflation. Gold and silver are 2 of the best ways to hedge against this. You want to have the actual physical stuff, no ETF, etc. There already is a noticeable shortage in actual precious metals, yet the paper contracts have been selling at a discount. Something is brewing, and its not a vat of beer.