About Me

In writing the "About Me" portion of this blog I thought about the purpose of the blog - namely, preventing the growth of Socialism & stopping the Death Of Democracy in the American Republic & returning her to the "liberty to abundance" stage of our history. One word descriptions of people's philosophies or purposes are quite often inadequate. I feel that I am "liberal" meaning that I am broad minded, independent, generous, hospitable, & magnanimous. Under these terms "liberal" is a perfectly good word that has been corrupted over the years to mean the person is a left-winger or as Mark Levin more accurately wrote in his book "Liberty & Tyranny" a "statist" - someone looking for government or state control of society. I am certainly not that & have dedicated the blog to fighting this. I believe that I find what I am when I consider whether or not I am a "conservative" & specifically when I ask what is it that I am trying to conserve? It is the libertarian principles that America was founded upon & originally followed. That is the Return To Excellence that this blog is named for & is all about.

Friday, August 19, 2011

Responses - The Question Is Do You?

Thanks to the responses to the subject message & in particular one from our Mid-west member who asks the $64,000 question – "I believe the people who read this blog are very much aware of the trouble we are in....now is the time for ACTION! We say this over and over. The question is, what is each individual planning to DO about the problem?"
Another question I received I referred to our Wall Street Financial VP for response – you can't do better to get a drink of water than to go right to the stream.  Both Q & A are below along with another response that adds to the discussion that refers to an IBD editorial by James Dorn of the Cato Institute.  The biggest point to me of this piece is – "The reality is that both China and the U.S. are growing the state sector at the expense of the private sector."
You bring up a good point - gold has zoomed up a lot, as of today about $1,825 per oz. But gold stocks HAVE declined, a lot. Only a few rose. How do you explain it? Personally I think hedge funds are shorting gold in a big way. As gold stocks decline - they make a bundle of money. Maybe others have a different view. Let me know.
---Answer From Wall Street---
Many who buy gold seriously on fundamentals -- expect severe dollar fall and also weak global economy.  Some who invest in gold stocks will short them expecting to time short term gains. That is point 1 and most significant. Point 2 is that gold is the main attraction. Gold once purchased and especially if it is in your physical possession, is less risky than a gold stock.  I bought gold myself this spring and did not want to take risk of choosing gold stock whose management may or may not be reliable. Take the sure thing - the commodity. Hence demand for the commodity tends to be greater than the company managing it.
---Another Response---
Doug - Yes we are in a deep financial mess and the numbers are against us who champion fiscal responsibility.  However whether one pays taxes or not, most Americans do not want their government begging China to buy our increasing new debt with China possibly demanding cuts in our defense and allowing China to increase their influence in the Far East. Thanks to Investors Business Daily editorial today raising this possibility while Biden meets with China.  What a coincidence that U.S. just nixed F16 sale to Taiwan before Biden's visit. What Presidential candidate will stand out and question this?



1 comment:

  1. Doug - I cashed in a whole life policy prior to the '08 election and bought physical gold & silver because I knew the democrats would win. I also bought the Spider Gold ETF (GLD), which I think is one of the largest ones out there. It was up 5% this past week & 20% in the past 3 months. Not as much as physical gold, but hardly 'declined, a lot.' I don't know about other gold stocks, but there are other factors out there for mining corporations including mining costs, safety (with such high prices) and political implications that may affect the value.