| | 700 billion dollar bailout - more opinions from me
 You know, when Bush and Secretary Paulson jumped up and down and rushed the Senate and the House to "sign, sign, sign" the disastrous bill charging taxpayers with $700 billion dollars to "shore up the markets and avert a crisis" (you'll note that McCain 'suspended' his campaign to fly to Washington to make sure the bill got signed, at the same time I was jumping up and down giving you contact information on how to write your senators and congressional representative.
This man on the right ruined your future. He did it with Bush's help, and McCain said that he'd be interested in keeping him on as Secretary of the Treasury. The only comfort I have in getting rid of this crook is knowing that there's no way McCain can win this election.
I was pleading for someone to have some reason around here. I was trying to say, this is completely a bald-faced robbery of the taxpayer. And the bill passed. $700 billion dollars was originally proposed to buy up "toxic" debt from the banks. But guess what, that didn't happen. Now, your tax payers are being used to buy stock in Insurance companies, Bank stocks - not "toxic debt". The problem with the bill is that it empowered Treasury Secretary Paulson to purchase ANYTHING he wants with your tax dollars at ANY PRICE. And he's doing it. He's helping all of his rich friends to get their stock values up - using taxpayer dollars.
Bush said the bill must get signed to avert a catastrophe. A month prior, McCain said the economy was in good shape, then all off a sudden he needs to suspend his campaign to return to Washington and deal with this mess. Well, look what is going on today now that the bill got signed! No averting a catastrophe, banks still hoarding cash, markets crashing around the world, nearly a million U.S. jobs to be lost by the end of this year - it's SUCH BULLSHIT.
So now, many of the largest corporations are owned by the US government, and more are being bought up every day. This is socialism, and what cracks me up is that Bush will have become the most socialist president in the history of the country. And so many of you voted for him because that's exactly what you didn't want to happen.
Now countries around the world are "injecting capital" to kick start the economy, but all this will do is cause inflation. If I made 10 million Lightspheres in one month, you can bet that the price of each one would go way down because the market would be flooded with them and the demand would be upside down. When you have a lot of something, the value of each unit goes down.
China is already grumbling that the world's reserve currency should be something other than the USD. That's going to happen at some point when China licks its wounds from having bought half of the US's entire debt. The US is such a funny country... importing oil from the middle east (borrowing money at massive volumes) from the Chinese. So it winds up being basically owned by foreign investors, and dependent on foreign countries just to operate.
Here's the danger of the dollar crashing - like i KNOW it will (I don't know the date, but it's coming). If the dollar crashes, petroleum goes to 10x what it is now - gas at $40/gallon. That shuts down heating/cooling, transportation. Picture people on the streets making bonfires. With a crashing dollar and no U.S. oil supply, the U.S. becomes one of the poorest third world countries. I can't see how this is not going to happen.
COMMODITIES gas prices have gone down to recent lows. So have many commodities. Here is one thing about commodities that make them a great investment for the long-term view. When prices go down, producers stop producing large volumes because there is so much on the market that can't be sold at a premium. So they hold down production. Miners slow down mining (or at least don't expand), oil refineries stop exotic means of extracting oil (deep drilling exploration, steaming out oil shale, etc). This makes supply go down, and price for SURE goes up at some point. Commodities, unlike hedge funds, are a zero-sum game. There is always an owner for each item.
I don't like to tell people what to do, but if I did like it, I would probably say something like - avoid any treasury instruments, any dollar-denominated assets - anything that has to do with the greenback, and hold long. I would also say to look for devalued currencies in resource-rich countries, and as always, apportion for safety in the eventual collapse of the U.S. Dollar. I was certain real estate was going to crash in 2005, I'm more certain of the USD crashing.
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| | Posted 10/27/2008 7:09 AM - 4597 Views - 28 eProps - 75 comments
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