US Bankruptcy looms.

The Presidency of Barak Hussein Obama is beginning to resemble the kingship of King David's son Absalom. Absalom overthrew his Father and David fled with 600 of his warriors. But before he fled, he asked a trusted advisor to stay behind and give Absolom bad advice. Hushai did just that and his counsel to Absalom to delay the pursuit of David, allowed David to survive and fight another day.

Had Obama acted as a regular Democrat (like Bill Clinton), his re-election would have been assured. Instead, Obama is getting bad advice from Gaithner and FED Chairman Bernanke. The result of this bad advice will be the bankruptcy of the United States, on top of the economic hardship our people endure.

America's banks and housing were declared bankrupt by changing the accounting system. The Obama regime "replaced" the capital in these banks to the tune of $13T. That much of our national wealth was destroyed by the traitors who run our government. But, that is just the beginning. The Obama regime doubled federal spending and tripled the deficit.

The US National Debt now totals $12T. Of that, $2T needs to be rolled over within 12 months. What does this mean exactly? It means that the government needs $2T new money to pay off that debt, or sell that much new Treasury Bills in effect to "roll over" the $2T debt. Can the govt do it? The simple answer in "NO." Why not?

The Greenspan-Giudotti rule (published in 1999) states that in order for a government to avoid default, it must have 100% coverage in hard currency. So, how much hard assets does the US own? At the current rate (foreign govts buy 44% of our debt), 44% of the $2T that needs to be rolled over and it amounts to $880B. And how much hard currency assets does the US have? Let's see. The total amount of gold we have amounts to $300B (note billion, not trillion). We also have $58B in the Strategic Oil Reserve and $136B in foreign currency. That is only $490B, so the US govt will be in default.

When this happens, the currency of the Debtor and its bonds become worthless. Traders will short the Dollar and Treasury Bills. They are already doing it and we see the value of the dollar dropping. The US govt has the following choices: 1. increase the rate that Treasuries yield - this will drive up interest rates and crash the Stock Market and the economy; 2. do nothing - this will put us into default (bankrupt in other words); or 3. "monetize" the debt, i.e. print $3.5T in currency - this will set off hyperinflation.

Economists will be quick to point out that the FED has already "monetized" $12T without setting off hyperinflation. And that is correct. But, the coming "monetisation" will be different than the one done by the Obama regime when it first came to power. The first "monetisation" involved declaring bank assets valued zero (by using the 'mark to market' accounting) and replacing these assets by printed currency. In fact, ownership of $12T in bank assets was transferred to the government, so in fact there was no net increase in currency, just a transfer of ownership - a back door nationalization. The second "monetisation," however will be printing currency with nothing backing it. That will set off hyperinflation.

Americans have no clue how the economy works, how finances work, so the Media can spin things until the disaster can no longer be avoided. It will usher in interesting times. There is a Chinese saying: may you live in interesting times. It is a polite curse.

The young and the CHANGE

Have you heard the one about describing how the Post would cover the end of the world story? (blacks and women worst effected?)

So, I wondered how the Post would cover the reports that the young and minorities suffer the most from the CHANGE. Unemployment among young blacks is 35%, 11.9% even in the District of Columbia. Unemployment is also high among the young of all races. The Post labels this story "Blacks hit by economy's punch," which lives down to expectations of the Post. The Post also collects pronouncements from various sources that attribute blacks' plight to discrimination.

What the Post does not mention is that young black men have a rate of nearly 25% of being in jail, on parole or awaiting court proceedings. It is difficult for people in that category to get jobs even in times when the economy is doing great, but it is much harder during bad times.

Many of us warned minorities (as well as others) that Obamanomics would recreate the Depression. They would not listen and were taken in. Unfortunately, the warnings are coming true.

Why gold will soar in price.

One of the most poignant stories in the Bible is the fall of Man; of Adam and Eve. The original sin was the disobedience of God to not eat the forbidden fruit. All sin is a disobedience of God. And the wages of sin is death. There was another wrinkle though, namely, that Eve and her female descendants would have a tough time delivering children. Someone compared the birth of a child to passing a bowling ball through a straw - a process that is obviously difficult and painful.

Almost as difficult will be the process of people acquiring gold to use as currency. You see the US government has fallen into the hands of a bunch of communists who are nationalizing banks and industries and "pay" for it by printing money. These communists want to destroy Capitalism and in its place build a society that is more "just," more equal. The destruction part is easy and we have seen it in several countries. The rebuilding will never happen, unless we get rid of the communists. The accompanying effect of this "CHANGE" is the destruction of the dollar. How easy will it be for people to obtain gold?

Let's run some numbers. The value of all the gold in the world is $5T. Our GNP is about $9T, our national debt is $12T, the "bailouts" (i.e. the cost of nationalizing GM, Chrysler, AIG and the banks and mortgage companies) cost $13T and the world bailout costs is $20T. The value of WalMart and Microsoft each is set about the value of the total gold supply in the world. I am telling you this to illustrate that the world's supply of gold is limited.

An ideal currency is one that is limited in supply and can not be counterfeited by the government. If we plotted the numbers I just cited as a bar graph, the annual gold production would be less than the thickness of the baseline. The time will come when people realize that the governments are cheating them by printing currency and that the only way to avoid being ripped off is owning gold (or gold mines). One writer compared the selling of the world's gold like passing Niagara through a straw. The results? A lot of pain and rising prices.

How do you like the CHANGE now?

I remember the hype during the election: the TV showing black men crying while listening to the platitudes of "HOPE" and "CHANGE." So, how is it working out for them?

I begin by quoting the writings of Mr Marvin Clark, Manager of Monsoon Wealth Management in the 11/20 issue of Seeking Alpha. Just repeating the title of his article is enough: 10 Reasons to Believe That We're in a Depression. Mr Clark has yet to make the connection between the painful changes and Obamanomics, but he does not like the CHANGE. And he has little HOPE. Oh, did I forget to tell you? Unless the Arizona sun turns your suntan really deep, Mr Clark is as black as the king of spades.

There is another interesting wrinkle. The House is marking up a financial regulations bill under the "leadership" of Banking Queen Barney Frank. And the Black Caucus put a hold on proceedings. They, too, are unhappy with the "CHANGE." No, they also fail to connect the dots and understand that the "CHANGE" is an outcome of the radical economic policy of the Obama regime.

Recognition that a problem exists is the first step in recognizing the connection between the results and the ideology that drives the regime.

Will he apologize for winning WWII?

His posture suggests it.

This is what japanguide.com says about bowing in Japan:

"It is also common to bow to express thanks, to apologize, to make a request or to ask someone a favor."

This is NOT Obama's first bow as an inferior. There is his picture of bowing to the King of Saudi Arabia:

Record Alaska cold grips far north.

Temperatures as low as -45! and -50! are being recorded in Alaska. Polar bears freezing? Certainly not drowning!

Is Algore in Alska lecturing on global warming? How come this scam artist Algore is not being prosecuted for racketeering? Everyone connected to the global warming hoax should be punished and that includes not only Algore, but members of the Media, Democrats in Congress, etc.

Deficit Reduction: the latest Obama scam.

Do you believe that Da Man who jacked up deficits to $1.5T/yr really wants to reduce spending? NAH! Obama does not have a plan to reduce the deficit, he has a plan to raise taxes and sell it as "deficit reduction."

Geezer predictions on gold, dollar and the market.

My last prediction was that gold would hit 1120 intraday before retreating for the rest of the month. Today, gold price actually hit 1123.33 before retreating. My prediction is that it will retreat to 1090 before rallying again in December.

The dollar staged a small rally today, moving almost a half a point to 75.7. This is due to the pouring of money into UUP, the ETF that has shares that are equivalent to contracts to buy dollars. In other words, this is manipulative and is not due to market forces that would make the dollar stronger. I likened this sleight of hand move to a desparate man pulling on one leg to get out of a mudhole. While, it is possible to raise one leg, it simply drives the other leg down deeper. According to standard technical analysis, the dollar would have to move past 76.5 to be considered in a real rally. It might. But, in the long run, the rally is not sustainable.

In line with the rally of the dollar, oil moved down.

Gold mining stocks had moved lower on the uptick in the dollar, but the down move is in line with the drop in gold. Let me explain this in greater depth. During September and October, gold miners increased in value far faster than gold itself, abot 4-10 times faster than gold. The reason for this is that the value of a gold miner discounts the price of the cost of mining AND the cost of exploration. As gold moves below 1100 during the next two weeks, I expect gold miners to drop some but not as much as they did during October.

One more comment. The movement of gold is deliberate and orderly. Some people are controlling it. There are plenty of suspects.

Republicans need courage.

There are a few people who are beginning to see that a bad economy with high unemployment and inflation and the devaluation of the dollar IS THE POLICY of the Obama regime. So, why are Republicans NOT saying it? Why are they repeating the BIG LIE of the media that our economic troubles are somehow "inherited," that the recession began in 2007 and the other lies peddled by the Media? Lacking a backbone I guess.

Palin: Liberals' fear.

Sarah Palin is the Liberals' greatest fear. She is a strong woman, sticks to her belief and can not be manipulated by the Liberal Media. She will not "move to the center" she will not play footsie with the phonies of the Scozzafavas to curry favor with Liberals. She represents the average American, I mean she is one and Liberals fear and loathe the average American.

And that is why Liberals attack her any chance they get, even when they make themselves ridiculous. Like when a character on NCIS asks the mocking question: do you think you are Sarah Palin?

Palin remains popular, a drawer of crowds and devoted followers.

Why the scam to improve the dollar?

Someone reminded me that the intention of the Obama regime to devalue the dollar so we can pretend that we can repay our debts would seem to contradict the effort to produce a rally in the dollar by buying up dollar options.

Let's remember that the regime has several goals, all of which are served by devaluing the dollar. First, the purpose of a counterfeiter is to obtain part of the Nation's wealth for little effort. That is one of the goals of the biggest counterfeiter: the FED. Second, devaluing the dollar allows the regime to use the counterfeit money to obtain control or ownership of large swats of industry. Third, America's wealth is downsized by transferring it to others whose currencies are not downsized (the Obamabots believe that it is not fair that Americans have so much). Finally, the printing of money is needed to make payments to those the regime hopes to enlist and to keep the economy from collapsing.

All these are being achieved by printing more money (i. e. by devaluing the dollar). So, why promote buying up options that increase the value of the dollar? Timing, folks, timing. The regime and its mainstream media propagandists believe that the economic crises is easing, that it is only a matter of a couple of months until the economy picks up. Hence, it is necessary to stop the slide of the dollar and resume the slide in the new year.

Is it working? So far, NO! Gold is up another $13 this morning to $1109.50/oz. Expect option trading to increase.

Obama and the Berlin Wall.

The Berlin Wall for years symbolized the division of Europe and the inability of Communism to become palatable to the people who were locked up behing it. That is why the fall of the Berlin Wall was an important and in a way euphoric event. It is celebrated today and Barak Hussein was invited to attend. He REFUSED. WHY!

Obama does not want to celebrate the fall of the Berlin Wall, because his ideologicam comrades had lost. As simple as that.

Attempts to rescue the $ temporarily.

Shadowy forces can manipulate markets. The latest finaglings come to light from the writings of Philip Davis in Seeking Alpha dated yesterday, Nov 7, 2009).

The Obama regime has a dilemma: it wants to control the economy (follow the German model of the 1930s), which requires the printing of enormous sums of money. Deficit is exploding and now accounts for about 40% of the budget. This is the magic number for hyperinflation. And here is the dilemma: if the regime does what is appropriate to stop inflation (raise interes rates which would stabilize the dollar), it will crash the Stock Market and put the economy in another tailspin. Considering what happened in New Jersey and Virginia, the regime is afraid to follow this path. On the other hand, if it continues on the same path, we will see a further drop in the value of the dollar and skyrocketing of gold prices. That's the dilemma.

That is why an effort is under way to rescue the dollar. Mr Davis reports a very large increase in the November and December volume of call options in UUP, the dollar index. These options are contracts to buy dollars at a certain value. Such an option is far cheaper than to buy a bundle of currency, but its effect is AS IF SOMEONE ACTUALLY BOUGHT THE CURRENCY. Of course, if the dollar continues to plunge, the institutions buying the contracts can lose all what they paid for the option, but they could produce a temporary rally in the dollar

and repress commodity prices, including the price of gold. Gold prices briefly hit $1,100 on Friday and may yet hit my forecast of 1120 this week before retreating below 1100. Just who is buying the dollar options is immaterial, but it is most likely financed by the FED. Here are some numbers and I got them from the graph. The volume of UUP this last week was about 30 Million (Davis reports that millions of shares had to be authorized) and the striking price is 23. If I read this right, each share represents a bundle of dollars for a price of $23. Thus, a speculator (or a government shill in a bank) can buy a contract on a bundle of dollar bills for a price indicated on the graph. This manuver would act to stabilize the value of the dollar. If foreign banks fall for the trick, they will stop selling their dollars, thinking that the drop in the dollar has stopped. This solution is temporary. The contracts expire in November and December and the shills will have to buy new ones. The cost? For thirty million shares of UUP at the price indicated on the graph, it would be 690 million dollars. Considering how much currency this regime has printed, it is chicken feed.

Will this scam work? Hard to tell now. In the long run, NO! In the short run, it might. The Obama regime got a pale of cold water in its face with the double digit unemployement figures. With the threat of inflation AND UNEMPLOYEMENT rising, 2010 will be a tough year on Democrats come election time in 2010. With the threat of Cap and Tax loomimg and the socialized health care, we might even have a Revolution.

Major Nidal Malik Hasan

The News Media is spinning events that the Major had Post Traumatic Stress Syndrome - hence the shooting spree. The Media lies. This man had not been deployed to any combat operation.

Major Nidal is a jihadist. He expressed admiration for suicide bombers and other terrorists before he decided to become one himself. On the day of his terror act, he gave away his Quran (more than one copy in fact), gave away money and even his frozen food and on base he shouted "Allah Akhbar" and started shooting. His terrorist act was obviously motivated by his understanding of Islam - no one else shouts Allah Akhbar, but a Muslim. As the evidence shows, this was premeditated.

Not all Muslims are terrorists. But they all bear watching, as does everyone else. Major Nidal was investigated and his views were known, yet he was allowed to continue in the Army. The handling of his case was a delerition of duty and the usual shortsighted stupidity. But, the news media that tries to suppress the facts is guilty of treason.

Gold on third bump.

Gold has moved to new highs while the dollar has ended its rally and began to sink again. This graph of gold prices shows a number of important features. First, gold went to 1,000 by March of this year - this coincided with the chaotic situation in the Stock Market. Then from March to September, gold was doing a wedge of lower highs and higher lows. The Gold Market gave a buy signal in March, as the 50 DMA moved decisively above the 300 DMA. Gold broke out decisively from its trading range in Sptember. Since then we see a pattern of two weeks rising prices and two weeks correcting. The slope of the new trading range is orderly so far with gold prices rising about 80 dollars/up phase and dropping about 30 dollars in the correcting phase. We will soon see if this pattern will continue. If it does, gold will top out at 1120 in this bump.

The driving force for the current rally is the drop in the dollar. The premium for gold miners has dropped and their correction was steeper, so even though gold is hitting new highs, gold mining stocks are not.

The oversold/undersold graph at the top shows that gold goes to over bough conditions during the up hase and returns to neutral during the correction. This, together with the positive MACD tells us that the rally has legs.

Now look at the US Dollar. Up till March, cash was scarce, so the dollar increased in value. This was entirely due to the defletion induced by the FED in Sep 2008. The Stock Market began to rally as the dollar began to drop and continues till this day. Taking down the value of the USD is deliberate, slow and orderly. This picture remain untill the FED tightens interest rates. At that point, the rally in stocks will come to an end and we will head for a crash.

Lessons from NY.

The 'drive-by media' is spinning NY 23 as follows: the results expose a fault in the GOP that shows that the Party is in grave disarray because it tries to purge "moderates."

The facts: NY Republicans botched this election along with the RNC. First, Scozzafava (the most left-leaning member of NY's available candidates for the 23) was nominated by four votes out of a Committee of 11. Mr Hoffman entered the race on the Conservative ticket as an almost unknown. The RNC spent 900K to run TV ads against him. Hoffman went from 20% in the polls to over 45% in a month. Scozzafava (the RINO) withdrew so as not to split the Liberal vote and endorsed the Pelosi Democrat. A loss for the GOP? Not really. Scozzafave would have voted as a 90% Pelosi Dem so the difference is minimal. The biggest loser is Newt Gingrich. After cozying up to Pelosi and Hillary, now this. Newt is done.

The MESSEGE

To Obama: NO YOU CAN'T!

To the Blue Dogs: DON'T YOU DARE!

Media spin: Vote for Rep governors is not a rejection of Obama.
Har, har. Imagine what the spin would be if Democrats won in VA and NJ! The fact is that Obama campaigned heavily in NJ and his henchmen tried to steal the election and it did not work. Yes, a lot of voters still approve of him in NJ, but give them time. It is his policies that voters rejected, not him personally.

At this point, the outcome in NY 23 is still in question. Hoffman is closing the early gap. Will he win? Too early to tell.

Cheating in New Jersey

Dems are cheating in NJ to preserve Corzine. An unholy trinity of criminals (SEIU, ACORN and a new communist front "WF" or "Working Families") is collecting fraudulent absentee votes and pressuring susceptible residents of nursing homes to vote for Corzine. More absentee ballots have been filled out than was cast in the Presidential election. The possibility of cheating exists in every State where elections depemd on ruling by a Democrat Attorney General and obviously New Jersey is one such place. We should see tonight if the cheats have enough ballot stuffing to erase a narrow lead by Christy.

Scozzafava proves it: RINO = Democrat

The sudden withdrawal of Ms Scozzafava from the Congressional race in the New York 23 race and her immediate endorsement of the Pelosi-Democrat in fact proves Candidate Hoffman's charges that Scozzafava was a Republican in Name Only ( a RINO). Liberals like to influence the GOP to put up Democrats as candidates, so even if the Democrats lose elections, their destructive policies remain in place.

This does not mean that we should encourage third party candidates. The dividing line between Democrats and Republicans should be clear: Dems are for government intervention wherever possible and Reps are for as small a government as we can mange to do. We still believe in majority rule though and the majority's opinion and votes should carry the day. The trick is to make sure that elections do not produce irreversible changes. Clearly, irreversible changes are what the Dems want and those are contrary to the interests of a democratic republic. Scozzafava was a sham as a Republican and a threat to the democratic form of government. Whether Mr Hoffman wins (as I hope he does) or loses, he has already served the people of his State by giving them a choice and not an echo.