Friday, March 20, 2009

Fed Moves Yesterday Assures Obama Will Be a One-Term President

UPDATE: Top 10 gaffes (with videos) by the Obama/Biden gaffe machine since taking office less than two months ago. Don't miss this wonderful weekend entertainment. One of my favorites:

This morning I meet with a lawyer, an accountant, a banker and a candlestick maker so I'm even shorter on time than I have been this past week. However, I want to make a few statements here about the economy and hope to come back later today and in the days ahead to flesh this all out.

For now I want to say, the most recent move by the Fed announcing it would buy $1 trillion in bonds---unless it is a very short-term move---will decimate the value of the U S dollar, which has fallen 4.8% so far this week (and Friday markets haven't opened yet). That means our buying power with the dollar will be obliterated, again, and fuel huge commodities bubbles.

While our buying power goes way South, the prices of oil, gas and food with other goods and services will sky rocket. In addition, Mr. Obama promises higher taxes and cap and trade regulations which are really a tax and which are passed on to the consumer.

Gold, silver, and all commodity stocks and ETFs will rule again for investors. Maybe not today, but over the medium and long-hauls.

To know the political carnage of all this, we need only need look at the last three years of the Bush administration. As the dollar fell and commodities bubbles sprang up everywhere, Mr. Bush's poll numbers fell to abysmal depths. It was, in the simplest of terms, because of the falling value of the dollar and its buying power on our monthly budgets. You could track Bush's unpopularity by tracking the ETF chart of the dollar.

This week, the value of the dollar plummeted, as stocks and ETFs for gold and silver jumped uproariously. Watch and see Mr. Obama's numbers continue to fall, as we pay more and more for food, gasoline and various staples we use everyday. It's not going to be pretty.

If Mr. Obama thinks his bowling abilities look retarded, then just wait till you see his and his team's financial skills continue to unfold. Gird your loins for another major hit to the economy and to our pocketbooks. It could make the last years of the Bush administration look like paradise.

The moral of this sad story of incompetence is that Obama will be a one-termer just like his mentor, tired, old Jimmy Carter. Again, gird your loins cause it's going to get rough and messy on Main Street. It's the late 70s once again. Forget hope, forget change, forget it all: when our buying power is lost again, Mr. Obama is toast.


Anonymous said...

A one term Obama is just more wishful thinking of the Rush Limbaugh admiration society. My prediction is Obama will succeed, become one of the most admired presidents in history and that radical rightwingers will sink even deeper into oblivion and irrelevance.

Webutante said...

Rush! Rush! Rush!

Anonymous said...

HG you need to get your head out of the sand... read some Real history... study Economics In One Lesson... and try to pry your mind open... then you may see why Mr. O is destined to fail...

gcotharn said...

I wrote a blogpost which listed all the reasons we American citizens are in huge trouble, and the reasons America may never recover to what it was even 20 years ago. Then I mercifully deleted before publishing, b/c I really don't know enough economics to know for sure what I am talking about. But, I will belatedly vent here: We are toast! We are in huge trouble! Another $1 Trillion was spent this week, ho hum, and I've barely any understanding why it was spent, or why it was not even page one news! I am sick to death about what is happening to our nation - it's like watching a loved one contract a serious and debilitating illness from which they might never recover. I feel HORRIBLE about it. I'm mourning it.

Anonymous said...

Wow, Greg. I share the discouragement of it all too. Our lives are about to change, are changing, in ways we can't even fully fathom---even now. We just have to do what we can as we go.

Of course, people who have the least amount of debt and are living within and below their means, won't suffer as much as some others. We will learn to live more creatively and share on less and have more fun in community. Maybe we'll even have middle-aged slumber parties and stay up all night planning tea parties. I do think things may get rather rowdy in the days ahead.

Ultimately, God is in control, and things will unfold as He allows for reasons we may not be able to understand.