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Friday, 5 February 2010

Flight to safety?..........from Rico

It's pretty hard even for our very talented magicians...er, politicians to hide the massive debt and out-of-control spending [read: borrowing] in plain sight.
- The only HOPE they have right now is that "the great unwashed" is too abysmally stoopid to understand what all those zeros and commas actually mean...or that our children's children's futures are being hocked today to buy them more votes and a little more time to get out of Dodge and retire before the entire Ponzi-house of cards collapses in future.

Who even 'noticed' the recent unemplyment "revision" of almost a million more jobs (lost) than they had 'thought' in this era of trillions?

Thus, the "flight to safety" in the US Dollar illustrates the ignorance of the day. Worry about Greece and Spain, but ignore California and Michigan. BUY BONDS and PAY TAXES, why it's your patriotic duty (hat tip to possibly one of the dumbest former members of Congress, Joe Biden who graciously left, thereby bestowing the "complete idiot dunce hat" to Pelosi-Reid-Fwank to vie for).
- But it ignores the fact that a 1913 Dollar is worth about a 2010 nickel (five cents for those who attended school since Jimmy Carter created the federal Dept of Education).

The S&P is overvalued by about 100% if you look seriously at what the earnings justify.
- But we ignore the fact that the S&P is heading towards a drop and it is probably time to SELL equities....especially dollar-denominated equities. And IF you followed the conventional wisdom and the advice of your money-manager, you lost your butts over the last decade by diversifying among the major asset classes (you do NOT want to think about how much more you "lost" from inflation).

Oh yeah, print me up some 'fresh' steaming greenbacks Benny. I can't wait to become gloriously "rich" with pretend monopoly money!
- I'd better start going-through my change jar for 'real' copper pennies and silver coins...



1 comment:

Eskyman said...

Thanks Rico, for all your work keeping us up to date with the latest scams of gov't--

Just want to point out that unfortunately you reversed the statement of relative worth between 1913 dollar and now: "a 1913 Dollar is worth about a 2010 nickel" -- really it's the other way around. A 1913 nickel is worth a 2010 dollar, or i.e. one 1913 dollar is worth $95 of today's $$.

But other than that, you're spot on! (Which means we're really screwed, sadly.)