Thursday, October 2, 2008

A Presidential Comparison

Interesting contrast….which president do you want in charge right now:
"We're in the midst of a serious financial crisis, and the federal government is responding with decisive actions. I'm a strong believer in free enterprise, so my natural instinct is to oppose government intervention but these are not normal circumstances. The market is not functioning properly. There has been a widespread loss of confidence. Without immediate action by Congress, America can slip into a major panic.”

"Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves . . . I intend to rout you out, and by the Eternal God I will rout you out!"

Lets just say that to get your headshot on a U.S. greenback you had to kick some butt.
A) GW Bush
B) Andrew Jackson (despised the fiat currency system)

Wednesday, October 1, 2008

Four Potential Outcomes

I believe that the future will follow one of these potential outcomes:

Potential Outcome #1: Major deflation (Robert Prechter’s long term projection)
We would incur a major decline in everything. 1929 would look easy compared to this one. Run for the hills with a bag of silver/gold pieces and a gun.

Potential Outcome #2: Inflationary depression (Jim Puplava’s long term projection)
Buy commodities and buckle your chinstrap.

Potential Outcome #3: A long term Zig-Zag (U.S. 70’s repeat or Japan 1990-current)
No major pain, up-down-up-down-up-down-up; buy a leisure suit, crank up the Led Zeppelin, and grow a beard… will be a long ride

Potential Outcome #4: Young/Old new president
He wow’s the country with his “change” vision and extensive plan and the credit orgy continues into the future. Party on Garth!!!!

If a meltdown is certain, I vote for the short painful one versus the long dragged out one. Consult your Japanese friends on this one.

“If the Bear Market continues (which I think likely) sooner or later it takes down even the strongest companies. “ Warren Buffet March 2008

I’m betting on Puplava’s forecast of massive inflation. Buy some Krugerrands and interest in an oil well.

My Predictions
· Oil: $150/barrel before $50/barrel
· Gold: $1500/ou before $500/ou
· Dow Jones Ind. Avg.: 5000 before 15000
· Next ten years will be the toughest we’ve ever experienced in our lifetime
· Next twenty much tougher than last twenty
· Next fifty much tougher than last fifty
· Military draft: within ten years, probably 5
· Brett Favre won’t be playing for the Jets next season
· Paris Hilton’s career tanks
· Saints win the Superbowl in 2010!!!
It ain’t all bad…………..