The Soon To Arrive Day Of Financial Reckoning

October 12, 2010 by · Leave a Comment
Filed under: Economic News 

A settlement of accounts is how TheFreeDictionary.com defines the word reckoning. When you borrow money, you have to pay it back someday or you lose the property, service or position (read reputation) you have worked so hard to earn. Yes, there are situations such a bankruptcy where you don’t have to pay back the money you owe, you are in effect, forgiven of your debt. But, that does not come without the consequences of losing your ability to be trusted with credit for a long time. In one way or another a settlement of accounts has to occur. You either pay back your debt or suffer the consequences.

Of course, someone can pay back that debt for you, but them you are beholden to them for that debt. The paying off of a debt never comes without obligations.

A great many of the world’s economies find themselves in this position at this time in our history and yet even with a multitude of financial experts sounding the alarm of impending doom, leaders around the world routinely ignore the consequences of their actions. And even though those many experts in all things money are busy ringing the alarm bells, anyone armed with a calculator, or even the ability to count, instinctively knows that the numbers simply don’t add up.

Added to the obvious trouble we are in and the unwillingness to even take a serious look at what can be done about it, our president, Barack Obama, is on the warpath and routinely vilifies anyone who even remotely suggests that we should exercise some restraint in the gargantuan sums of money being spent by government. Take for instance the recent unemployment extension legislation by congress, because Republican members of the Senate held up this legislation on grounds that they simply insisted this multi-billion dollar program actually be paid for, the President traveled around the country accusing them of being unAmerican and not caring for those out of a job.

It is important to point out that the persons receiving the benefits have already been receiving state benefits for 26 weeks and now will be able to collect benefits for another 26 to 52 weeks from the federal government. So you completely understand what went on here, I will spell it out even further -¬†We have millions of unemployed people right now in the United States who have been getting some $500 a week for 26 weeks and they will now get an additional, federal, handout somewhere in the neighborhood of that same amount, $500 a week for 26 to 52 additional weeks. The simple question is, how is this going to be paid for? Wait, don’t ask, it’s unAmerican.

Under our current President’s leadership we have seen a deficit of the federal budget go from roughly $400 billion for a year to nearly $1.5 trillion for the year, an increase of nearly 4 times and yet, we still continue to add programs such as the unemployment compensation legislation that will cost some $34 billion without even a second thought. And those that point out there is a problem with this, again, are vilified by the President and those that control congress. How do we expect to ever get out of this situation with thinking such as this?

While every administration for the last 30 years seems to have forgotten the basic principles of finance that every individual household in the United States should follow, the present one seems to be hellbent on throwing billions of our tax dollars at any cause, or inventing another huge bureaucracy with thousands of government employees just because it appears as action. Because the money being spent does not actually belong to those spending it, there is an obviously huge disconnect between the amount of money these people have their grubby little hands on and the responsibility to use it wisely. The simple fact is that there is no thought of responsibility, it’s a complete orgy of spending.

A good case in point is the vacation taken by the First Lady Michelle Obama a few months ago which cost us taxpayers some $1.2 million for a 3 or 4 day long weekend jaunt to Spain. There’s nothing wrong with the Presidential family taking a vacation, but the complete disregard for fiscal restraint in times of economic turmoil such as we are experiencing shows how out of touch the ruling elite are with those that voted them into their positions. Claiming you are for the American worker and using all the flowery speech surrounding that mantra doesn’t hold water when you stay in one of the most expensive hotels in Spain and rent 70 rooms for 3 nights at a cost of $2,500 a night each.

Regardless of this kind of reckless spending wherever it is, any question the president gets about why he needs to spend such astronomical sums of money on seemingly endless “stimulus” type programs, the typical answer is, “George W. Bush made me do it!” Imagine a credit counseling service helping one of its clients who is $100,000 in debt by suggesting that they borrow money to build a swimming pool in their back yard. Right, that’s the solution, borrow $50,000 to build yourself a nice pool to stimulate your local economy, that will get you out of debt. Does anybody believe that?

The big question for thinking people is, why is there this obvious disconnect between the economic condition we now find ourselves in and the actions of those that claim to be trying to do something about it? It is either outright stupidity or it is cold indifference because there has been a plan all along.

They can’t fool all of us all of the time. The day of reckoning is coming.

Gold Hits A Record High

October 11, 2010 by · Leave a Comment
Filed under: Economic News 

The gold bugs are out and will be especially on alert as today’s gold price hit an all time high of $1,354.40 per ounce on the Comex division of the New York’s Mercantile Exchange. Silver also saw a 30 year high today as well. Many people and wealthy investors are looking at gold to preserve their wealth in the more than likely coming economic earthquake.

While the world and the United States economy is faltering like it hasn’t since the great depression and our illustrious President Obama decides campaigning for a losing economic strategy is more important that doing anything to actually help us out of this disaster. Obama’s popularity has plummeted to an all time low and at the most dramatic rate for any newly elected President ever as was evident today when he had a book thrown at him while he blamed his self created economic woes on George W Bush instead of taking responsibility himself.

Where is the price of gold going? No one really knows, but as long as the Fed keeps printing money to try and stem the inevitable, gold will probably reach another record high soon. Are you prepared for disaster while the government sleeps?


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