Obama, the Dollar and the world economy
One of the things that I have learned is just because you have inside sources that feed you 99% reliable information, doesn’t mean that you will always be right, just mostly. This doesn’t mean that your sources are “turned”, just that sometimes bad information is put out through lots of different channels. With that in mind, I will try to explain what I think is going on and why.
As many people are aware there is some questions aboutBarrack Obama’s constitutional ability to actually be president. Regardless of the merit of this issue, which I believe has some merit, as it allows Obama to be compromised (or according to the Editor of Internation Currency Review “Blackmailed”) the question is beginning to wear away at the long term economic picture for America. I think this is one reason why the Republican party insiders are not publicly going anywhere near this issue.
There has (allegedly) been high level international discussions in the middle of May about how to cause the demise of the dollar. Part of that move would be a world wide Department of the Treasury, and moving many functions of current nation states to a global governing body. If you think this is something that is made up, you need only read how the reporter from the British paper the Guardian was treated as he tried to report on this meeting, and contrast that with the reports from other, smaller international “policy” events. Of course this is how ALL independent media coverage of these events is treated, it’s just unusual to see a major media outlet actually trying to report the news.
Obama is helping this whole mess right along, playing into the weakness by refusing to provide simple proofs of his birth, and working against plans to promote “Buy American”. (And I won’t dwell on why it seems that auto dealerships that gave money to Republicans are being targeted for closure).
What all these pundits seem to forget is that there is, and has been for centuries, a true global currency, Gold. It’s strange that there is so much effort to prevent talking about going back to the LAWFUL money of the United States, and given the total abandonmentof the constitutional guidelines, it is no wonder that China is trying to do it’s business in ANYTHING BUT DOLLARS! What is surprising is that the current Secretary of the Treasury (who I WISH was an idiot, but alas he is not, we are), said he was “quite open” to some other currency (but no apparently the LAWFUL currency of the United States). After Geithner’s statement in March, the AP has reported that the dollar has dropped 10%, and other reports show the dollar decline is accelerating. Also Russia has shifted it’s assets away from the dollar.
Now the question is what can we do? I realize that it’s hard to move from the dollar we have all grown up on (and become addicted to) but I think that Gold has a long way to climb in relation to the dollar. Jeff Clark at 321Gold.com expects gold to go much higher that $2000/oz, and I agree with that picture. The problem is that managing a gold portfolio is not like leaving your money in a bank and getting interest. Though it is getting easier to get gold in other countries, with ATMs for gold being installed across Europe. [As a side note I came across an interesting comparison of house prices to gold bars over 80 years]
However, if you have signifigant assets you might want to look at Euro Pacific Capital, which is managed by Peter Schiff who has written books that have been endorsed by Jim Rogers and regularly is interviewed by Fox, CNBC, CBC, MSNBC and Bloomberg.
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