Gold Price Is No Surprise

First, "they" devalued your carefully saved investments with the great financial crisis and stock market crash last year, then "they" started spending money as fast as it could be printed, setting the stage for inflation to wipe out the value of what little you had left. The dollar that was recently (2002) valued at $1.24 in the international market is now worth $0.74. So people are running to any investment that will rise higher than inflation. Many people believe that it's gold which closed today at $1,055. It still hasn't reached the inflation adjusted high of $2,275.99 from 1980 when the country was mired in stagflation, but it's headed in that direction.

In times like these, you need to exercise all the creativity you have to protect your assets and provide for your family. I suggest you get started by watching this interview with Robert Kiyosaki, author of Rich Dad, Poor Dad. He may not have the exact plan for your situation, but he will help you to start thinking outside the box.

Stock Market Rallies

Rescinding the mark to market accounting rule caused the recent stock market euphoria. As I said earlier, that rule exaggerated assets during boom times and exaggerated bank losses in bad times. In fact, I stated my opinion in the most emphatic terms possible while avoiding profanity when pleading with my Congressional Clowns to not vote for the original TARP bill. Had it been rescinded last September at the beginning of the crisis, the world’s financial circumstances would be much better than it is now. According to some, the bull market will likely continue until April 15, the deadline for 2008 retirement fund contributions.

The Score Card

In the last 18 months, twelve years of gains have been lost in the stock market. That adds up to trillions of dollars of personal wealth. Sadly, this is happening to the bedrock of our society, the people who save money, invest for retirement, and plan ahead. So the ones who provide for their own retirement, who usually give to charity so they can help the less fortunate, and who pay higher taxes have been hurt the most.
The bureaucrats in Washington are going to miss their contributions into our tax system. And our deficits will end up being much higher than any predictions because no one is considering the inevitable loss of tax revenue.

Vote of No Confidence

On November 4 when the polls closed, the following had been recorded for the day:
Dow Jones Average: $9,625
NASDAQ: $1,780
S&P 500: $1,005
After four weeks in office, the same indexes were:
Dow Jones Average: $7,552.60
NASDAQ: $1,470.66
S&P 500: $789.17

The Dow Jones Average is down $297.81 since the passage of the purposeless spending festival, officially named the American Recovery and Reinvestment Act of 2009 on Friday.

I am sure that the reason Michelle Malkin and I are mentioning the same phenomenon is because great minds think alike. Ahem! I thought of it last night, but waited until the markets closed to post.