LIVING IN THE 1930'S, AGAIN!
Thursday, October 8, 2009 at 07:15PM 
The response of the Obama regime to dealing with the impact of the recession is measured in terms of the massive US deficit and the enfeebled US dollar.
As Sarah Palin points out the dollar decline is directly linked to rising US indebtedness and dependence on foreign oil. “We can see the effect of this in the price of gold, which hit a record high today in response to fears about the weakened dollar,”
Meanwhile, in FDR lalaland, It is very important to the United States that we continue to have a strong dollar,” Tim Geithner, Treasury secretary, said at the weekend.
Yeah, Timmy, it MIGHT be but that is not the case. The dollar is heading south, the deficit is heading north and Obamanomics are proving as ineffective as those pursied in the 1930's by FDR, the man who made the depression great.
The neo-Keynesians are wreaking havoc and proving that they have learned none of the lessons of history. You just cannot spend your way out of a spending induced recession and yet Geithner and the gang imagine otherwise. Both Hoover and FDR got it wrong and millions of Americans paid for it - it's happening again as the 1930's return through a combination of economic luddism and political incompetence.
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Reader Comments (9)
To "David Vance"
I do not wish to appear rude, but with the greatest respect, what do you know about this? The team that President Obama has gathered for his economic advisory board are reputed to be among the best economists in the world; the head of the Federal Bank is an expert on the causes of the Great Depression. These are not barrack-room economists.
I suspect that they know considerably more about it than, and I don't wish to be rude, you or I or any of the other contributors to this site, even those who claim to understand these things.
It is very important to the United States that we continue to have a strong dollar,” Tim Geithner, Treasury secretary, said at the weekend.
Well go top yourself pal, your policies are killing the dollar.
Put it into gold, people. It hit a high yesterday and hit a new high today. It's going further because the fedzilla is inflating the dollar away.
Am I willing to back gold my with own money? Of course, though unfortunately, I'm skint. Each time I open my wallet a one eyed Scottish idiot mugs me.
This may seem a daft question but how do you buy gold ?
Colm
The easiest way for the average person would be to buy gold coins - loads of places to buy them, in stores or on line. But then you have to worry about where to keep them.
Colm -
Cashed up are you? ;-)
There are all kinds of ways. Google can lead you to stock and options and you can even open gold-backed cash accounts.
The simplest way in my view is to walk into Baird's in Hatton Garden, hand over some cash and walk out with gold coins or bars. Then you drop it into a safety deposit box if you don't want it at home.
It's riskier for Americans. The federal government has a history of banning gold ownership when times are tough!
When everyone's buying something, it may be time to keep your cool and maybe buy something else.
Colm,
Here's how you buy gold. Send as much cash as possible to the ATW retirement home for the perpetually politically enraged, Bermuda - and I promise to sort it out. Honest ;-)
Pete/Phantom
Thanks for the tips . I have been getting bored with the art market recently. How many Monets and Van Goghs can a chap keep buying. Time I started stocking up on Gold bars :)
When everyone's buying something, it may be time to keep your cool and maybe buy something else.
Oil futures maybe? The combination of a recovering world economy (by 2012) and the imminence of "peak oil" (by 2025?, maybe sooner) could drive the price to ... a lot more than the $60 per barrel at present.
But of course caveat emptor!