President Obama downplayed the negative action by S&P on US long-term debt today. You can read the gruesome details in this Reuters’ “analysis” if you like, but over half of it is little more than administration talking points. Therefore, since you come here, I assume you already know that anything coming out of Team Obama about the deficit and debt is pretty much a straight up fabrication so let’s get down to business.
You, my friend, should not ignore this shot across the bow. Obama’s true intentions, whether they be principled concern for his fellow man or malevolent intent to crash the country, are meaningless because the result is well known–we’re heading for rough seas. And, as any good sailor knows, you have to batten down the hatches when the storm is on the way:
- Buy some gold – The only currency Ben Bernanke can’t print.
- Buy a weapon – A good thing to have and be familiar with even in good economies.
- Stock up – Seen the prices at the grocery store lately? ‘Nuff said.
- Plant a garden – See stock up.
Don’t be caught with your pants down. The next financial crisis is brewing on the sovereign balance sheets of the US, Europe, and Japan. Unless a major course correction is made, it will break hard on our shores too.
Ah, yes, the so called “wealth effect” that Bernanke cites as the primary driver behind quantitative easing. The most interesting question there is figuring out who’s benefiting from the stock market pump. It sure isn’t the middle class who are paying the bills if employment and wage growth tell us anything.
Before the money can be transfered to banks, it is bought as bonds. And who brokers these bonds for a fee, our own Goldman Sachs, read thier balance sheets
its entertaining.
Don’t worry be happy. The dow is up and thats what the MSM shows the American people, everything is A OK. Job growth is up at Micky D’s. Obama is going to tax the rich, “any one who still pays taxes”. There is no economic crisis, just the rich failing to pay thier fair share, the new battle cry.